Philips 2014 Annual Report Download - page 54

Sector performance 6.2.4
54 Annual Report 2014
Philips Consumer Lifestyle
Sales and net operating capital1) in billions of EUR
2010 - 2014
3.3
‘10
0.9 3.8
‘11
0.9 4.3
‘12
1.2 4.6
‘13
1.3 4.7 Sales
‘14
1.4
Net operating capital
1) For a reconciliation to the most directly comparable GAAP measures,
see chapter 15, Reconciliation of non-GAAP information, of this Annual
Report
Philips Consumer Lifestyle
EBIT and EBITA 1) in millions of EUR
2010 - 2014
23
188
211
6.4%
‘10
44
109
153
4.1%
‘11
56
400
456
10.6%
‘12
54
429
483
10.5%
‘13
53 Amortization and
impairment in value
520 EBIT in value
573 EBITA in value
12.1%
‘14
EBITA as a % of sales
1) For a reconciliation to the most directly comparable GAAP measures,
see chapter 15, Reconciliation of non-GAAP information, of this Annual
Report
6.2.5 Delivering on EcoVision sustainability
commitments
Sustainability plays an important role at Consumer
Lifestyle, with the main focus on optimizing the
sustainability performance of our products and
operations. Green Products, which meet or exceed our
minimum requirements in the area of energy
consumption, packaging and/or substances of concern,
accounted for 55% of total sales in 2014. All Green
Products with rechargeable batteries exceed the
stringent California energy eciency standard. And
over 60% of total sales are PVC- and/or BFR-free
products (excluding power cords).
In 2014 we continued to increase the use of recycled
materials in our products. Over 625 tons of recycled
plastics were used in vacuum cleaners, irons and coee
machines. We also launched the new SENSEO® Up, of
which the plastic parts consist of 13% recycled material.
In our operations we continue to use more energy from
renewable sources, with the ultimate aim of having
CO2-neutral production sites. In 2014, 68% of the
electricity used in factories came from renewable
sources and 80% of the industrial waste was recycled.
6.2.6 2015 and beyond
In September 2014 Philips announced its plan to
sharpen its strategic focus by establishing two stand-
alone companies focused on the HealthTech and
Lighting Solutions opportunities. To achieve this
transformation, from January 1, 2015, Philips started to
integrate the sectors Consumer Lifestyle and
Healthcare into one operating company focused on our
HealthTech businesses.
In the HealthTech space, Royal Philips will focus on the
vast market opportunities created by the convergence
of professional healthcare and consumer end-markets
across the health continuum, from healthy living and
prevention to diagnosis, treatment, recovery and home
care.
Building on combined clinical and consumer
capabilities, we will focus on solutions aimed at
empowering consumers and patients to take greater
control of their own health, enabling payers and
providers to improve outcomes while managing overall
cost, and helping governments increase access to high-
quality, aordable care.
From an external nancial reporting perspective, it
should be noted that the planned organizational
changes will require Philips to transition to a new
reporting structure in the course of 2015. At that stage,
and in view of applicable IFRS requirements, Philips will
report and discuss its nancial performance on the
basis of dierent reportable segments than the sectors
currently presented and discussed in this Annual
Report.
Further updates will be provided in the course of 2015.