Philips 2015 Annual Report Download - page 50

Sector performance 6.1.4
50 Annual Report 2015
Net operating capital increased by EUR 1,647 million to
EUR 9,212 million, mainly driven by the Volcano
acquisition and currency impacts.
Cash ows before nancing activities decreased from EUR
910 million in 2014 to EUR 81 million in 2015, largely due to
higher cash outows for investments at Imaging Systems.
Philips Healthcare
Sales per geographic cluster in millions of EUR
2011 - 2015
1,948
3,953
1,046
1,905
8,852
‘11
1,970
4,393
1,252
2,368
9,983
‘12
1,932
4,089
1,133
2,421
9,575
‘13
1,914
3,896
1,080
2,296
9,186
‘14
2,089 Western Europe
4,887 North America
1,231 Other mature
2,705 Growth
10,912
‘15
Philips Healthcare
Sales and net operating capital1) in billions of EUR
2011 - 2015
8.9
‘11
10.0
‘12
9.6
‘13
9.2
‘14
10.9 Sales
‘15
8.4 8.0 7.4 7.6
9.2 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 Healthcare
EBIT and EBITA 1) in millions of EUR
2011 - 2015
1,053
27
1,080
‘11
200
1,026
1,226
‘12
197
1,315
1,512
‘13
160
456
616
‘14
205 Amortization and impairment
in value
819 EBIT in value
1,024 EBITA in value
‘15
12.2% 12.3% 15.8%
6.7% 9.4% 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
6.1.5 Delivering on EcoVision sustainability
commitments
A growing and aging population, the rise of chronic and
lifestyle-related diseases and global resource constraints
pose a number of challenges, including pollution and
stressed healthcare systems. Philips continues to improve
lives around the globe by developing solutions that help
secure access to care, while at the same time respecting
the boundaries of natural resources.
In 2015, Green Product sales in Healthcare amounted
to EUR 4,580 million and we introduced 11 new Green
Products to support energy eciency, materials
reduction and other sustainability goals. We also
actively collaborate with care providers around the
globe to look for ways to minimize the environmental
impact of healthcare, for example by reducing the
energy use of medical equipment. Supporting the
transition to a circular economy, we have continued to
focus on expanding the Diamond Select refurbishment
program and also the SmartPath upgrading program.
Philips was presented with the ‘Champion for Change’
Award by Practice Greenhealth for the second
consecutive year. This award honors businesses that go
beyond taking steps to improve their own green
practices, but also help their clients and associates to
expand their sustainable practices.
6.1.6 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. Philips has transferred its
Lighting business into a stand-alone structure eective
February 1, 2016 and has moved from a holding company
model to an operating company model.
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. For more details on the new
segment reporting in 2016 and onwards, please refer to
the introduction of Sector performance.
Further updates will be provided in the course of 2016.