Philips 2014 Annual Report Download - page 58

Sector performance 6.3.2
58 Annual Report 2014
working with our International Sales organization.
Lighting has approximately 37,800 employees
worldwide.
Regulatory requirements
Lighting is subject to signicant regulatory
requirements in the markets where it operates. These
include the European Union’s Waste from Electrical and
Electronic Equipment (WEEE), Restriction of
Hazardous Substances (RoHS), Registration,
Evaluation, Authorization and Restriction of Chemicals
(REACH), Energy-using Products (EuP) and Energy
Performance of Buildings (EPBD) directives.
6.3.3 2014 highlights
In 2014, our lighting innovations underlined our four-
pillar strategy aimed at delivering even greater value for
our customers and other stakeholders.
• Philips is to provide the city of Madrid, Spain with
225,000 energy-ecient street lights. The renewal of
the city’s entire street lighting system makes it the
world’s largest street lighting upgrade to date.
• Groundbreaking innovations in LED bulbs include:
elimination of the heat sink to make our SlimStyle
range at, so reducing costs; including an innovative
lens for a sparkling light eect to mimic the light of an
incandescent light bulb; creating CrispWhite, a
technological innovation that makes white appear
whiter and colors richer, an ideal lighting solution to
display products at their best.
•In addition to these innovations for retrot lamps, we
created new concepts by integrating LEDs into
carpets and ceiling panels.
• We continued to pioneer innovations in connected
lighting, broadening applications in segments such as
home, retail, oce, sports and city lighting. For
oces, we installed the rst commercially available
Power-over-Ethernet (PoE) connected lighting
system, which connects oce lighting xtures to a
building’s IT network. The lighting system gathers
data about how space is being used, helping to
reduce energy, heating and cleaning costs, for
example, while allowing oce workers to set their
own personal lighting using their smartphone.
• In cities we continue to install our connected
CityTouch lighting system. This intelligent lighting
system enables cities to remotely control light points
from a single, online user interface to deliver light
where and when it is needed, ensuring people feel
safe in well-lit streets even while reducing energy
consumption. It can dim light points outside of peak
hours, detect failures and provide smart lighting
workow support, reducing energy and maintenance
costs.
• At the major sports events in Russia (Sochi) and
Brazil, we lit up the majority of the stadiums. For
Chelsea FC we installed a LED pitch lighting solution
designed to provide players, fans and Television
broadcasters with an outstanding visual experience.
This was the world’s rst LED pitch lighting to be used
by a ‘top ight’ soccer club that meet the stringent
requirements of broadcasters and sports federations.
As the ocial lighting partner of FC Bayern München,
Philips will transform the façade of the Allianz
Stadium, into a dynamic and colorful LED display.
• With Philips Hue, our innovative connected lighting
system for the home, we continue to transform the
way we use light to personalize our homes and bring
extraordinary experiences into the living room. We
oer the most comprehensive portfolio of lighting
products that can be connected to the smart home
ecosystem: controls, connected luminaires,
connected strips, connected lamps. We also team up
with partners like Apple, Logitech, Deutsche Telekom,
Syfy Universal and more to deliver a seamless
experience, and the ever-growing number of apps
developed by third parties will ensure further new
experiences over time.
• Philips acquired 51% of General Lighting Company
(GLC) in the Kingdom of Saudi Arabia. This company
combines Philips’ expertise in LED technology and
global supply base with GLC’s deep local market
knowledge and strong commercial capabilities,
making it the leading lighting player in the largest
economy in the Middle East.
6.3.4 2014 nancial performance
Philips Lighting
Key data in millions of EUR unless otherwise stated
2012 - 2014
2012 2013 2014
Sales 7,303 7,145 6,869
Sales growth
% increase (decrease),
nominal 11% (2)% (4)%
% increase (decrease),
comparable1) 4% 1% (3)%
EBITA 1) 69 580 293
as a % of sales 0.9% 8.1% 4.3%
EBIT (78) 413 185
as a % of sales (1.1)% 5.8% 2.7%
Net operating capital (NOC)1) 4,635 4,462 3,638
Cash ows before nancing
activities1) 314 418 442
Employees (in FTEs) 41,757 38,671 37,808
1) For a reconciliation to the most directly comparable GAAP measures,
see chapter 15, Reconciliation of non-GAAP information, of this Annual
Report
In 2014, sales amounted to EUR 6,869 million, 4% lower
on a nominal basis. Excluding a 1% negative currency
eect, comparable sales decreased by 3%. Light
Sources & Electronics recorded mid-single-digit growth
and Consumer Luminaires posted a high-single-digit
decline, while Professional Lighting Solutions recorded
low-single-digit growth.
From a geographical perspective, comparable sales in
growth geographies showed a mid-single-digit decline,
largely driven by decline across all businesses in China.
As a result, sales in growth geographies decreased from
40% of total sales in 2013 to 39% in 2014. Comparable
sales in mature geographies showed a low-single-digit