Philips 2013 Annual Report Download - page 2

2 Annual Report 2013
Contents
Performance highlights 4
Message from the CEO 6
1 Accelerate! 9
1.1 Our transformation 10
1.2 Business impact 11
1.3 Fast facts 19
1.4 Next phase 20
2 Building a great company 21
2.1 Our rich heritage 22
2.2 Our vision 22
2.3 Market opportunities 23
2.4 Our business system 25
2.5 Our people 25
2.6 Global presence 26
3 Delivering innovation that matters to you 27
3.1 Knowing our customers 28
3.2 Understanding people’s needs 29
3.3 Behind the scenes 35
3.4 Lives improved 37
4 Group performance 38
4.1 Financial performance 39
4.2 Social performance 52
4.3 Environmental performance 62
4.4 Proposed distribution to shareholders 67
4.5 Outlook 68
5 Sector performance 69
5.1 Healthcare 71
5.2 Consumer Lifestyle 77
5.3 Lighting 82
5.4 Innovation, Group & Services 88
6 Risk management 92
6.1 Our approach to risk management and business
control
92
6.2 Risk categories and factors 95
6.3 Strategic risks 96
6.4 Operational risks 97
6.5 Compliance risks 99
6.6 Financial risks 101
7 Management 103
8 Supervisory Board 105
9 Supervisory Board report 107
9.1 Report of the Corporate Governance and
Nomination & Selection Committee
110
9.2 Report of the Remuneration Committee 111
9.3 Report of the Audit Committee 116
10 Corporate governance 118
10.1 Board of Management 118
10.2 Supervisory Board 120
10.3 General Meeting of Shareholders 122
10.4 Logistics of the General Meeting of Shareholders
and provision of information
123
10.5 Investor Relations 125
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 18, 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).