Philips 2012 Annual Report Download - page 2

2 Annual Report 2012
Contents
Performance highlights 4
Message from the CEO 6
1 Our company 9
2 Group strategic focus 11
3 Our strategy in action 14
3.1 Driving progressive health care 15
3.2 Transforming critical care delivery 17
3.3 End-to-end journey with Wal-Mart 19
3.4 A recipe for profitable growth 21
3.5 Re-inventing lighting for consumers 23
3.6 Enhancing urban life with light 25
4 Our planet, our partners, our people 27
4.1 The power to make a difference 28
4.2 Encouraging positive change 30
4.3 Embracing culture change 32
5 Group performance 34
5.1 Financial performance 35
5.2 Social performance 48
5.3 Environmental performance 56
5.4 Proposed distribution to shareholders 61
5.5 Outlook 62
6 Sector performance 63
6.1 Healthcare 65
6.2 Consumer Lifestyle 70
6.3 Lighting 75
6.4 Innovation, Group & Services 80
7 Risk management 84
7.1 Our approach to risk management and business
control
84
7.2 Risk categories and factors 87
7.3 Strategic risks 88
7.4 Operational risks 89
7.5 Compliance risks 91
7.6 Financial risks 93
8 Management 95
9 Supervisory Board 97
10 Supervisory Board report 99
10.1 Report of the Corporate Governance and Nomination
& Selection Committee
101
10.2 Report of the Remuneration Committee 102
10.3 Report of the Audit Committee 106
11 Corporate governance 108
11.1 Board of Management 108
11.2 Supervisory Board 110
11.3 General Meeting of Shareholders 112
11.4 Logistics of the General Meeting of Shareholders 113
11.5 Investor Relations 114
IFRS basis of presentation
The financial information included in this document is based on IFRS, unless
otherwise indicated.
Forward-looking statements and other information
Please refer to chapter 19, Forward-looking statements and other
information, of this Annual Report for more information about forward-
looking statements, third-party market share data, fair value information,
IFRS basis of preparation, use of non-GAAP information, statutory financial
statements and management report, and reclassifications.
Dutch Financial Markets Supervision Act
This document comprises regulated information within the meaning of the
Dutch Financial Markets Supervision Act (Wet op het Financieel Toezicht).
Statutory financial statements and management report
The chapters Group financial statements and Company financial statements
contain the statutory financial statements of the Company. The introduction
to the chapter Group financial statements sets out which parts of this Annual
Report form the Management report within the meaning of Section 2:391
of the Dutch Civil Code (and related Decrees).