Annual Report 2009
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Home Living & Interactive Living

Our ambition for the Home Living platform is to make Philips the true home brand for comfort, cooking and cleaning. It is all about making the home cozy and inviting, reflecting people’s identity and their preferred way of living.

Interactive Living is about sharing rich, pleasurable life experiences, free of any boundaries. In a complex world, this simplicity-led platform builds upon the implications and possibilities of the internet (r)evolution, with products and services blending to fulfill consumer needs.

The ground-breaking Cinema 21:9 television reflects our ambition to enable consumers to share pleasurable life experiences – free of any restrictions.

We don’t just watch films at the cinema, we experience them. The 21:9 aspect ratio of a cinema screen was developed to mimic our own peripheral vision, providing a totally immersive viewing experience. Such is its power that we frequently ‘lose ourselves’ when watching a film in a cinema.

Films fill a cinema screen. The images reach right out to the very limits of the screen and of our peripheral vision, enveloping us so completely in the action that we actively ‘feel’ along with the characters in front of us. This cannot be achieved on a conventional 16:9 widescreen TV at home without moving to a ‘letterbox’ view or losing the full scope of the original shot.

World premiere

With a 21:9 aspect ratio, our Cinema 21:9 – introduced at the 2009 IFA in Berlin – is the world’s first cinema-proportioned LCD TV. In combination with Ambilight technology, which accurately matches on-screen content to extend the picture beyond the confines of the screen, Cinema 21:9 is the first TV to deliver a genuine cinematic viewing experience to movie lovers in their own home.

Cinema 21:9 was named European Home Theater Innovation 2009-2010 (along with our BD9100 Blu-ray player) by the European Imaging and Sound Association.

Saeco acquisition allows Philips to expand in the high-growth, high-margin espresso machine market with a strong range of products.

In July 2009 we closed the acquisition of Saeco International Group S.p.A. of Italy, one of the world’s leading espresso machine makers. The espresso machine segment is generally regarded as the most valuable market space within the global coffee appliances market, as it typically achieves double-digit sales growth and profit margins.

The acquisition of Saeco has significantly boosted Philips’ coffee machines business, which already held a leading position in drip-filter and single-serve (Senseo) products, by adding an exciting and technologically advanced range of espresso-making solutions.

“Through this acquisition, we are creating a new, dynamic market leader in coffee machines with excellent growth prospects for the future,” commented Andrea Ragnetti, CEO of Philips Consumer Lifestyle. “The enjoyment of quality coffee, along with the pleasant and positive experience this can create for consumers, ties this acquisition to the very heart of Philips’ strategy to become the leading company in Health and Well-being. At the same time, the acquisition of Saeco is a real step forward in further positioning the Consumer Lifestyle sector for the future.”

Air treatment is a fast-growing market, especially in China. We aim to become the trusted brand for air purification.

A simple breath keeps us alive. Yet in this single breath, we take in more than just life-giving oxygen. In the course of a day, we may inhale up to two tablespoons of airborne particles, including allergens such as pollen and mold spores, pet dander and dust mite by-products. Figures released by the World Health Organization in 2007 claimed that in a number of countries – including several emerging economies – indoor air pollution is responsible for a total of 1.2 million deaths a year. As children breathe up to twice as much air as adults, they will inhale even higher levels of airborne contaminants and are even more exposed to acute respiratory conditions.

In emerging markets like China, people living in cities face the same indoor air pollution issues as anywhere else, but the expanding economy has created additional environmental challenges as a result of, for example, things like construction projects and increased car ownership.

Taking control of air quality

To combat this problem, we have developed the Philips Clean Air System, which removes all allergens, odors and gases, reducing exposure to particles that may cause allergic reactions. A simple solution families can rely on – filling the room with fresh, healthy air.

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Enabling people to enjoy a healthy lifestyle
Andrea Ragnetti
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Healthy Life & Personal Care
See our strategy in action
This is an interactive electronic version of the Philips Annual Report 2009 and also contains certain information in summarized form. The contents of this version are qualified in their entirety by reference to the printed version of the Philips Annual Report 2009. The printed version is available as a PDF file on this website. Information about: forward-looking statements, third-party market share data, fair value information, IFRS basis of presentation, use of non-GAAP information, statutory financial statements and management report, reclassifications and analysis of 2008 compared to 2007.
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