Philips 2015 Annual Report Download - page 123

2Group nancial statements 12.9
Annual Report 2015 123
2Information by sector and main country
Philips Group
Information on income statement and cash ow by sector in millions of EUR unless otherwise stated
2013 - 2015
sales
sales including
intercompany
research and
development
expenses
income from
operations
income from
operations as a
% of sales
cash ow before
nancing
activities
2015
Healthcare 10,912 10,933 (1,073) 819 7.5% 81
Consumer Lifestyle 5,347 5,360 (301) 621 11.6% 589
Lighting 7,411 7,454 (315) 486 6.6% 642
Innovation, Group & Services 574 777 (238) (934) - (2,086)
Inter-sector eliminations (280)
Philips Group 24,244 24,244 (1,927) 992 4.1% (774)
2014
Healthcare 9,186 9,209 (822) 456 5.0% 910
Consumer Lifestyle 4,731 4,739 (263) 520 11.0% 553
Lighting 6,869 6,927 (330) 185 2.7% 442
Innovation, Group & Services 605 934 (220) (675) - (1,586)
Inter-sector eliminations (418)
Philips Group 21,391 21,391 (1,635) 486 2.3% 319
2013
Healthcare 9,575 9,600 (810) 1,315 13.7% 1,292
Consumer Lifestyle 4,605 4,622 (268) 429 9.3% 480
Lighting 7,145 7,211 (313) 413 5.8% 418
Innovation, Group & Services 665 977 (268) (302) - (2,140)
Inter-sector eliminations (420)
Philips Group 21,990 21,990 (1,659) 1,855 8.4% 50
In 2015, our sectors were organized based on the nature
of the products and services. The four sectors
comprised Healthcare, Consumer Lifestyle, Lighting
and Innovation, Group & Services. A short description
of these sectors is as follows:
Healthcare consisted of the following businesses -
Imaging Systems, Healthcare Informatics, Services &
Solutions, Patient Care & Monitoring Solutions, and
Customer Services.
Consumer Lifestyle consisted of the following
businesses - Personal Care, Domestic Appliances, and
Health & Wellness.
Lighting consisted of the following businesses - Light
Sources & Electronics, Professional Lighting Solutions,
and Consumer Luminaires.
Innovation, Group & Services consisted of group
headquarters, as well as the overhead expenses of
regional and country organizations. Also included are
the net results of group innovation, intellectual
property & services, the global service units and Philips’
pension and other postretirement benet costs not
directly allocated to the other sectors.
Transactions between the sectors mainly related to
services provided by the sector Innovation, Group &
Services to the other sectors. The pricing of such
transactions was determined on an arm’s length basis.
From an external nancial reporting perspective, it
should be noted that Royal Philips will introduce new
segment reporting, from Q1 2016 onwards. The new
reporting structure will be based on dierent segments
than the sectors currently presented and discussed in
this Annual Report. Philips’ health technology activities
will be reported in three segments (Personal Health,
Diagnosis & Treatment, Connected Care & Health
Informatics), the Philips Lighting businesses within one
segment, and the remaining unallocated corporate
items will contain certain legacy items and separation
costs. For more details on the new segment reporting
in 2016 and onwards, please refer to the introduction of
chapter 6, Sector performance, of this Annual Report.