Philips 2015 Annual Report Download - page 46

Sector performance 6
46 Annual Report 2015
6 Sector performance
Our structure in 2015
Koninklijke Philips N.V. (Royal Philips or the ‘Company’)
is the parent company of the Philips Group (‘Philips’ or
the ‘Group’). The Company is managed by the members
of the Board of Management and Executive Committee
under the supervision of the Supervisory Board. The
Executive Committee operates under the chairmanship
of the Chief Executive Ocer and shares responsibility
for the deployment of Philips’ strategy and policies, and
the achievement of its objectives and results.
In 2015, Philips’ activities in the eld of health and well-
being were organized on a sector basis, with each
operating sector – Healthcare, Consumer Lifestyle and
Lighting – being responsible for the management of its
businesses worldwide.
The Innovation, Group & Services sector includes the
activities of Group Innovation and Group and regional
management organizations. Additionally, the global
shared business services for procurement, nance,
human resources, IT and real estate are reported in this
sector, as well as certain pension costs.
At the end of 2015, Philips had 95 production sites in 25
countries, sales and service outlets in approximately
100 countries, and 112,959 employees.
2016 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 opportunities respectively. We have
established a stand-alone structure for Philips Lighting
within the Philips Group, eective February 1, 2016. We
expect to be able to announce the separation of the
Lighting business in the rst half of 2016, subject to
market conditions and other relevant circumstances.
Accordingly, Innovation, Group & Services will be split
and allocated to Philips and Philips Lighting.
In light of its focus on health technology, Philips has
eliminated the Healthcare and Consumer Lifestyle
sector layers in order to drive the convergence of
consumer health and professional healthcare as well as
to reduce overhead costs. We plan to change the
reporting of Philips’ health technology activities to
three segments (Personal Health, Diagnosis &
Treatment, Connected Care & Health Informatics) with
eect from Q1 2016.
Further updates will be provided in the course of 2016.
Our structure in 2015
Healthcare
Imaging Systems
Customer Services
Healthcare Informatics,
Solutions & Services
Patient Care &
Monitoring Solutions
Consumer
Lifestyle
Personal Care
Domestic Appliances
Health & Wellness
Lighting
Light Sources &
Electronics
Consumer Luminaires
Professional Lighting
Solutions
Innovation,
Group & Services
Group Innovation
Intellectual Property &
Royalties
Group and regional
costs
Accelerate!
investments
Pensions
Service units and other
Koninklijke Philips N.V.