improving people’s lives through meaningful innovation
TRANSCRIPT
Improving people’s lives through
meaningful innovation
An introduction to Philips and a deep dive into the
Lifestyle Entertainment business
Welcome! Here’s the program for today
Topic Elements Who Time
Introduction • Introducing Philips Jirko 09:00-09:15
Business
transformation
– CL
• Accelerate! program as enabler of the Consumer
Lifestyle sector’s strategy
Jirko 09:15-09:30
Business
overview
• Introducing Philips Lifestyle Entertainment Mark 09:30-09:40
Innovation • Innovation in audio Hugh 09:40-10:10
Innovation • Pricing for profitable and sustainable growth Wieger 10:10-10:40
Break 10:40-11:00
Engagement • Driving consumer engagement for our LE portfolio Frank 11:00-11:30
Shopper
marketing
• From insight to activation Andres 11:30-12:00
• Jirko Hoogerwerf – Business transformation leader Philips Consumer Lifestyle
• Mark Groves – Head of PR and Internal Communications, Philips Lifestyle Entertainment
• Hugh Cautley – Director Business Planning and Strategy, Philips Lifestyle Entertainment
• Wieger Deknatel – Senior Director, ICM, Philips Lifestyle Entertainment
• Frank Pynenburg – Director, Global Campaign, Philips Lifestyle Entertainment
• Andres van der Linden – Senior Manager, Shopper Marketing, Philips Lifestyle
Entertainment
Philips: Improving people’s lives through meaningful
innovation
Philips
Businesses1, 2 Geographies1
Healthcare Consumer
Lifestyle
Lighting North
America
Other Mature
Geographies
31% 9% 35%
Growth
Geographies3
44%
€23.5 Billion
Sales in 2012.
Portfolio consists of
~70% B2B
businesses
~116,000 People employed
worldwide in over 100
countries
19% 37%
Since 1891 Headquarters in
Amsterdam, the
Netherlands
8% of sales invested
in R&D in 2012
59,000 patent rights,
35,000 trademark rights,
81,000 design rights
Western
Europe
25%
$9.1Billion
Brand value in 2012
1 Last twelve months March 2013 2 Excluding Central sector (IG&S) 3 Growth geographies are all geographies excluding USA, Canada, Western Europe, Australia, New Zealand, South Korea, Japan and Israel
Note - Prior-period financials revised for discontinued operations, the adoption of IAS19R,and for restatements included in the Annual Report 2012 (please refer to the Annual Report
section 12.10 “Significant Accounting Policies”)
At Philips we strive to make the world healthier and
more sustainable through innovation
We will be the best
place to work for people
who share our passion
Together we will deliver
superior value for our
customers and shareholders
Improving people’s lives through meaningful innovation
Lives improved by Philips in 2012: 1.7 billion
Hea
lth
ca
re
Lig
htin
g
Ongoing urbanization and globalization
Increasing need for energy efficient solutions
Fast growing global illumination market
Expanding renovation market
Rapid adoption of LED-based lighting solutions
We are well positioned to benefit from societal trends
Con
su
mer
Life
sty
le
Ageing population leading
Increase in patients managing chronic conditions
Growth geographies1 wealth creating demand
Lifestyle changes, fueling cardiovascular illnesses and respiratory and sleeping disorders
Consumers focus on the health and well-being
Rising middle class in growth geographies1
Back to basics: simple propositions
Trusted brands combined with locally relevant portfolio
Global trends and challenges
1 Growth geographies are all geographies excluding USA, Canada, Western Europe, Australia, New Zealand, South Korea, Japan and Israel
Healthcare What we do. Where we are.
Philips Healthcare
Businesses1
Imaging
Systems
Home
Healthcare
Solutions
Patient Care
and Clinical
Informatics
Customer
Services
38%
€10.0 Billion sales
in 2012
37,000+ People employed
worldwide in 100 countries
15% 22% 25%
450+ Products & services
offered in over 100 countries
8% of sales invested in R&D
in 2012
Geographies1
North
America
Other Mature
Geographies
44% 13% 24%
Growth
Geographies2
Western
Europe
19%
1 Last twelve months March 2013 2 Growth geographies are all geographies excluding USA, Canada, Western Europe, Australia, New Zealand, South Korea, Japan and Israel
Note - Prior-period financials revised for discontinued operations, the adoption of IAS19R,and for restatements included in the Annual Report 2012 (please refer to the Annual Report
section 12.10 “Significant Accounting Policies”)
Lighting What we do. Where we are.
Philips Lighting
Businesses1
Light
Sources &
Electronics
Professional
Lighting
Solutions
Lumileds Automotive
52% 29% 4% 10%
Geographies1
North
America
Other Mature
Geographies
25% 5% 41%
Growth
Geographies2
Western
Europe
29%
€8.4 Billion sales
in 2012
49,000+ People employed
worldwide in 60 countries
5% of sales invested
in R&D in 2012
80,000+ Products & services
offered in 2012
Consumer
Luminaires
5%
1 Last twelve months March 2013 2 Growth geographies are all geographies excluding USA, Canada, Western Europe, Australia, New Zealand, South Korea, Japan and Israel
Note - Prior-period financials revised for discontinued operations, the adoption of IAS19R,and for restatements included in the Annual Report 2012 (please refer to the Annual Report
section 12.10 “Significant Accounting Policies”)
Consumer Lifestyle What we do. Where we are.
Philips Consumer Lifestyle
Businesses1, 2
Personal
Care
Health &
Wellness
Domestic
Appliances
Lifestyle
Entertainment
€6.0 Billion sales
in 2012
18,000+ People employed
worldwide
5% of sales invested
in R&D in 2012
1 Full year 2012 2 Other category (2%) is omitted from this overview 3 Growth geographies are all geographies excluding USA, Canada, Western Europe, Australia, New Zealand, South Korea, Japan and Israel
Note - All figures exclude discontinued operations
24% 15% 33% 26%
32% of green product
sales in 2012
Geographies1
North
America
Other Mature
Geographies
18% 5% 46%
Growth
Geographies3
Western
Europe
31%
We have strong leadership1 positions in many
markets across the globe
Global
Cardiovascular
X-ray
Global
Ultrasound
Global
Patient
Monitoring
Global
Image-Guided
interventions
Global
Lamps
Global
Male Electric
Shaving
Healthcare
Lighting
Consumer
Lifestyle
Global
Sleep Therapy
Systems
Global
Garment Care
Global
Rechargeable
Toothbrushes
Regional
Kitchen
Appliances
Regional
Electric Hair
Care
Global
LED Lamps
Global
Automotive
Lighting
Global
Professional
Luminaires
Global
High Power LEDs
Global
Cardiovascular
X-ray
1 Global or Regional #1 or #2 position in the market
Accelerate! is delivering results
Source: Philips Capital Market Day March 2013
Our Capabilities, Assets and Positions Unique strengths which create differential value
Source: Philips Capital Market Day March 2013
1
2
Introducing Philips Lifestyle
Entertainment
Mark Groves, Head of PR and Internal
Communications, Philips Lifestyle Entertainment
A century of innovation
1920s 1960s 1970s 1980s 1990s 2000s Now
1927:
Radio
receiver
for enjoyment
of live
broadcasts,
news and
music at the
comfort of
home
1963:
Compact
cassette and
recorder
for playing
recorded music
at home
1978:
Laserdisc
player
to provide
superior
quality video
at home
1982:
Audio CD
for better sound
quality,
increased
storage capacity
and faster
indexing
Headphones for
noise
cancellation
created
2004:
Ambisound
for truly
immersive
sound at home
2007:
FullSound for
enriched MP3
music on the go
2008: Blu-ray
kicks off HD
video for the
next millennium
1995: DVD
1999: SACD
to enhance
sound and video
quality, with six
times higher
storage capacity
than CD
2010: 60Sound,
SoundSphere &
SoundCurve
raising the bar for
sound quality
2012 Fidelio
Docking: unlock
music from your
smart phone
2013 Fidelio
SoundSphere
and Surround
on Demand
Lifestyle Entertainment: a strong product portfolio
powering a strong brand
Philips Consumer Lifestyle
Businesses
Personal
Care
Health &
Wellness
Domestic
Appliances
Lifestyle
Entertainment
Geographies
North
America
Other Mature
Geographies
Growth
Geographies3
Western
Europe
Video Audio Home Cinema Multimedia Home
Communication
Accessories Headphones
We are reshaping the Consumer Lifestyle portfolio Ensuring continuity and success of Philips brand in television,
sound and connected entertainment& Video
•Global scale
•Expertise in
manufacturing
•Electronics
ecosystem
•Strong Brand
•Award winning
innovation
•Market leadership
•Regional scale
•Expertise in
manufacturing
•Electronics
ecosystem
TP Vision operational since April 2012.
Funai agreement is expected to close in second half of 2013.
Leading innovation with Philips Fidelio Surround
on Demand
Philips Fidelio SoundSphere DesignLine speakers
• Design breakthrough
complements Philips
DesignLine TV
• Floating tweeter prevents
interference with woofer
• Designed to recreate the
“acoustic holy grail” of a point
source, allowing sound to
radiate freely without
interference
• Available: Fall
Setting design trends in home communication
• Fidelio M1 Colors: Premium
quality, high-def sound.
• Fidelio S2 in-ear: Finely,
engineered, Layered Motion
Control Drivers
• CitiScape Denim: Combines
sound quality, urban fashion
• ActionFit: First ‘sports
headband,’ designed for
active use
Philips headphones
Increasing opportunities in home
control and productivity, including:
• WeCall: Portable conference
speaker
• In.Sight: Camera monitors, baby
monitors
• InRange: Keeps track of
valuables belongings
Philips App-enabled accessories
WeCall
InRange
In.Sight