Philips 2015 Annual Report Download - page 58

Sector performance 6.3.4
58 Annual Report 2015
Sales of LED-based products grew to 43% of total sales, up
from 34% in 2014, driven by Light Sources & Electronics and
Professional Lighting Solutions. Sales of energy-efficient
Green Products exceeded EUR 5,343 million, or 72% of sector
sales.
EBITA increased from EUR 293 million, or 4.3% of sales, in
2014 to EUR 594 million, or 8.0% of sales in 2015.
Restructuring and acquisition-related charges amounted to
EUR 99 million in 2015, compared to EUR 245 million in 2014.
EBITA in 2015 also included EUR 14 million of charges related
to the devaluation of the Argentine peso, while 2014 included
a EUR 13 million past-service pension cost gain and EUR 68
million of impairment and other charges related to industrial
assets. The increase in EBITA was mainly attributable to
lower restructuring and acquisition-related charges, cost
productivity and improved LED gross margins.
EBIT amounted to EUR 486 million, or 6.6% of sales, which
included EUR 108 million of amortization charges, mainly
related to acquired intangible assets at Professional Lighting
Solutions.
Net operating capital increased by EUR 175 million to EUR 3.8
billion. The current-year increase was mainly due to currency
translation effects.
Cash flows before financing activities increased from EUR
442 million in 2014 to EUR 642 million due to higher earnings
and a decrease in working capital.
Philips Lighting
Sales per geographic cluster in millions of EUR
2011 - 2015
2,060
1,832
224
2,492
6,608
‘11
2,225
1,991
234
2,853
7,303
‘12
2,214
1,827
213
2,891
7,145
‘13
2,205
1,779
198
2,687
6,869
‘14
2,188 Western Europe
2,030 North America
207
Other mature
2,986 Growth
7,411
‘15
Philips Lighting
Sales and net operating capital1) in billions of EUR
2011 - 2015
6.6
‘11
7.3
‘12
7.1
‘13
6.9
‘14
7.4 Sales
‘15
5.0 4.6 4.5
3.6 3.8 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 Lighting
EBIT and EBITA1) in millions of EUR
2011 - 2015
769
(439)
330
‘11
147
(78)
69
‘12
167
413
580
‘13
108
185
293
‘14
108 Amortization and
impairment in value
486 EBIT in value
594 EBITA in value
‘15
5.0%
0.9%
8.1%
4.3%
8.0% 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
6.3.5 Delivering on EcoVision sustainability
commitments
Early in 2015, Philips Lighting engaged in a ‘Light as a
Service’ business arrangement with Amsterdam Airport
Schiphol. Under the terms of this agreement Philips will
retain ownership of the lighting equipment and
Schiphol will pay for the light used. The project will
utilize LED-based products that will deliver 50% energy
savings relative to legacy lighting. Light as a Service is
starting to gain traction in the market as a new business
model, because it oers state-of-the-art lighting
hassle-free, does not require any customer investment,
provides energy eciency (lower CO2 emissions), and
supports the circular economy (less waste to landll).