Philips 2015 Annual Report Download - page 54

Sector performance 6.2.4
54 Annual Report 2015
Philips Consumer Lifestyle
EBIT and EBITA 1) in millions of EUR
2011 - 2015
44
109
153
‘11
56
400
456
‘12
54
429
483
‘13
53
520
573
‘14
52 Amortization and
impairment in value
621 EBIT in value
673 EBITA in value
‘15
4.1%
10.6% 10.5% 12.1% 12.6% 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 continued to play an important role at
Consumer Lifestyle in 2015, 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 58% of total sales in 2015. All
Green Products with rechargeable batteries exceed the
stringent California energy eciency standard by at
least 10%. And over 65% of total sales are PVC- and/or
BFR-free products (excluding power cords). In 2015, we
continued to increase the use of recycled materials in
our products. Over 900 tons of recycled plastics were
used in kitchen appliances, vacuum cleaners, irons and
coee machines, compared to 625 tons in 2014.
As concrete examples of our commitment to sustainability
we launched the new Perfect Care Eco Aqua Steam
Generator, of which the plastic parts consist of 50%
recycled material, and the Performer Expert vacuum
cleaner, which is free of PVC/BFR, has an A-class energy
label and contains 50% recycled plastics.
In our operations we continue to use most of our
electricity from renewable sources, with the ultimate
aim of having CO2-neutral production sites by 2020. In
2015, 65% of the electricity used in manufacturing sites
came from renewable sources and 82% of the industrial
waste was recycled.
6.2.6 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.