Philips 2012 Annual Report Download - page 68

6 Sector performance 6.1.4 - 6.1.5
68 Annual Report 2012
International expansion of the Home
Healthcare Solutions business
Our Home Healthcare Solutions business grew at or
above market rates in 2012, with strong growth in Japan,
Western Europe and other geographies where home
health care – as part of chronic disease management – is
a fundamental component of the care continuum.
We also continued to lead the way in helping shape
selected regional markets in the early stages of home
health care development. In these markets, we focused
on building awareness of chronic conditions and
understanding the value of home health care while making
investments in research and clinical education.
Invest for leadership in growth geographies
In 2012 we made a number of strategic investments in
growth geographies. These included the opening of
research and development centers and manufacturing
facilities in China and India to drive local innovation. We
also strengthened our presence in the Middle East with
strategic alliances in Saudi Arabia and Abu Dhabi.
In addition, we extended our innovative telehealth
solution to provide remote critical care in India, and
continued to expand our solutions in imaging, patient
monitoring and clinical informatics for price-sensitive
markets, such as Brazil and China.
Executing operational excellence initiatives
to increase margin and time-to-market
Under Accelerate! we made significant progress in the
restructuring of our organization to innovate faster and
more efficiently.
Deliver on EcoVision sustainability
commitments
As part of our EcoDesign process, we consider all Green
Focal Areas to help reduce total life cycle impact. In 2012
we introduced 16 Green Products to support energy
efficiency, materials reduction and other sustainability
goals.
6.1.5 2012 financial performance
Key data
in millions of euros unless otherwise stated
2010 2011 2012
Sales 8,601 8,852 9,983
Sales growth
% increase, nominal 10 3 13
% increase, comparable1) 4 5 6
EBITA1) 1,186 1,145 1,322
as a % of sales 13.8 12.9 13.2
EBIT 922 93 1,122
as a % of sales 10.7 1.1 11.2
Net operating capital (NOC)1) 8,908 8,418 7,976
Cash flows before financing
activities1) 1,141 773 1,394
Employees (FTEs) 36,253 37,955 37,460
1) For a reconciliation to the most directly comparable GAAP measures, see
chapter 15, Reconciliation of non-GAAP information, of this Annual Report
In 2012, sales amounted to EUR 9,983 million, 13% higher
than in 2011 on a nominal basis, driven by higher sales in
all businesses. Excluding a 7% favorable impact of currency
effects, comparable sales were 6% higher. Solid mid-
single-digit comparable sales growth was achieved by all
businesses. Green Product sales amounted to EUR 3,610
million, a 36% year-on-year increase.
Geographically, comparable sales in mature geographies
were higher than in 2011 in all businesses. The year-on-
year sales increase was largely attributable to North
America and other mature markets, as sales in Western
Europe were in line with the prior year. In growth
geographies, we achieved 20% growth, largely driven by
strong, double-digit growth in China, Brazil, India and
Russia.
EBITA increased from EUR 1,145 million, or 12.9% of
sales, in 2011 to EUR 1,322 million, or 13.2% of sales, in
2012. EBITA improvements were realized at all
businesses, largely as a result of higher sales and cost-
saving programs. Restructuring and acquisition-related
charges amounted to EUR 134 million, compared with
EUR 20 million in 2011.
EBIT amounted to EUR 1,122 million, or 11.2% of sales,
and included EUR 200 million of charges related to
amortization of intangible assets.