The Philips investment proposition

Our strategy

Our strategy

Philips’ strategy is to become the leading company in Health and Well-being. We believe that a steadily growing demand for healthcare, a healthy lifestyle and energy-efficient lighting solutions will – driven by an aging population, increased environmental awareness and expanding emerging markets – allow Philips to generate double-digit EBITA margins.

Our Healthcare sector is a world leader in many businesses including Cardiovascular X-ray, Patient Monitoring and, not least, Home Healthcare which we see playing an increasingly more important role in the years ahead. Equally, our Consumer Lifestyle sector is built on a portfolio of leading businesses – including Philips men’s shaving, Philips Sonicare oral healthcare and Philips Avent mother and childcare. We are the world’s largest Lighting company with a leading position in LED lighting solutions – the future of this industry. We will continue to leverage our brand, with its promise of “sense and simplicity”, our rich technological heritage and our advanced insight into the needs of end-users to bring meaningful innovation to our customers. In doing so, we will make Philips, already one of the oldest and strongest global brands, the leading company in Health and Well-being.

Our financial targets

• Comparable sales growth:
  • well in excess of global GDP
  
  
• Group EBITA margin: 10% or more
• Sector EBITA targets:
  • Healthcare 15-17%
  • Consumer Lifestyle 8-10%
  • Lighting 12-14%
  
  
• Return on invested capital: 12-13%

Sustainability

We seek to make constant progress in the sustainability of our business. A clear example of how we are driving business growth through sustainability is evident in our current EcoVision4 program.

Our EcoVision4 targets

over the period 2007 - 2012

• Double revenues from Green Products to 30% of total sales
• Double investment in Green Innovations to a cumulative EUR 1 billion
• Improve our operational energy efficiency by 25% and reduce CO₂ emissions by 25%