Philips Global Introduction English

Philips is building the leading company in health and well-being. We need to define and articulate to the world, and our employees, exactly how we will compete and become a global leader in health and well-being. To articulate effectively, we need targeted and consistent messaging to our key stakeholder groups.  This presentation is a key component of this communication effort. It is a general presentation intended to be given by members of Philips senior management  and is targeted to a general audience.

It is created to be engaging and impactful. Speaker notes are included and should be utilized as they will enable the speaker to deliver the presentation in the most effective and engaging way possible.  If you have questions please contact Philips Corporate Communications.

Key messages of the presentation are:

WhoPhilips – a global company of leading businesses 

WhatWinning now and in the future by repeatedly developing meaningful innovations based on unique user insights 

Where In the space of health and well-being 

HowBy putting our brand promise “sense and simplicity” into practice

Philips company general presentation

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Building the leading company in health and well-being

An introduction to Philips

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“A global company of leading businesses creating value with meaningful innovationsthat improve people’shealth and well-being”

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Health and well-beingWhat do we mean by this?A commitment to: healthy, fulfilled livesour communities and societiesour world

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Meaningful innovationsWhat do we mean by this?improving people’s livesgoing beyond technologyintroduced at the right time

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The world needs meaningful innovations to respond to today’s dramatic global changes

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Aging populations…Without changes to the healthcare system, 25% of the working population would be needed to provide today’s level of care by 2040* (*for a typical western healthcare system)

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Globalization and the rise of emerging markets…Emerging markets already produce 28% of global GDP

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Empowered consumers…Companies need to find new ways of gaining business

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Climate change and sustainable development…Almost one-fifth of global electricity consumption is used for lighting

…an opportunity to work togetherto improve the quality of people’s lives and live our brand promise

Energy efficiency

Personalized experiences

Personal well-being

Homecare, independent living

Better healthcare for all, at lower cost

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“sense and simplicity”What do we mean by this?advancedeasy to usedesigned around you

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Putting “sense and simplicity” into practice in health and well-being

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“From the onset of a heart attack to the start of treatment, speed is vital –every second counts”

Paramedic

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Cardiologist

“How can we shorten the ‘time to treatment’?”

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Meaningful innovation

“It’s thanks to HeartStart that I’m still here. I feel I’ve been given a second chance to raise my kids”

Most widely recognized and recommended cardiac emergency response device worldwide

Part of a complete “discovery to treatment” solution

Philips HeartStart MRx helps cut time to treatment by transmitting vital ECG data directly from the ambulance en route to the hospital.

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“I hate waking up on dark winter mornings: I feel tired, lethargic and a bit down”

Common complaint

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Common complaint

“Why can’t I always wake up like I do in summer?”

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Experts

“It’s all to do with the intensity of light before we wake up”

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Meaningful innovation

By emitting light that simulates the rising sun in your bedroom, Philips’ wake-up light gently prepares your body to wake up.

“I immediately noticed a difference – it feels just like waking up naturally”

9 out of 10 consumers say it wakes them up pleasantly

Sales exceeded expectations by 42%

Customers’ No. 1 preferred product in its category

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Office worker

“My office lighting is so harsh and cold. I wish I could change it…”

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Researcher

“Light tone and intensity has profound effects on the energy levels of human-beings”

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Building owner

“To attract and retain good tenants I need flexible, high-quality spaces”

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Meaningful innovation

Using the new possibilities offered by LED lighting, DayWave enables people to create an inspiring, enjoyable office environment by varying the color and intensity of lighting to suit their mood and activity.

“No other form could better express the flexibility of LED technology” - Architectenkrant, april 2008, issue 216

“Enables an entirely new level of comfort for functional applications” - Electromagazine, May 2008

Philips the business

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Founded in 1891Headquartered in Amsterdam, the Netherlands

Sales over EUR 23 billion (USD 32 billion) 30% in emerging economies

116,000 employeesSales and service outlets in over 100 countries

Globally recognized brand (world top 50)Our brand value almost doubled to $8.1bn since 2004

€1.6 billion investment in R&D, 7% of sales55,000 patent rights – 33,000 registered trademarks – 49,000 design rights

A well-respected, blue-chip company for over 100 years

Our missionImproving people’s lives

Our promise“sense and simplicity”

Our company• Common, end-user driven

innovation process

• Strong global brand

• Channel access and global presence

• Engaged workforce

• Technology, know-how and strong IP positions

• Economies of scale e.g. Shared service centers

Our focus on Health and Well-being Synergies across the portfolio

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Healthcare

Our health and well-being offer is powered by three sectors

Consumer Lifestyle Lighting

Clinical care systemsGlobal market leadership for automated external defibrillators

Home healthcare solutionsNo.1 provider of personal emergency response services in the US

Patient monitoringLeadership position offering significant reduction in mortality and length of stay in ICUs equipped with VISICU eICU

Imaging systemsCardiovascular X-ray is no.1 in overall manufacturing satisfaction

Customer servicesNo.1 in service performance in patient monitoring systems and ultrasound

The power of HealthcareFurther strengthening our global leadership

The power of Consumer Lifestyle Focusing on differentiating leading businesses

Mother and childcarePhilips AVENT is market leader. Its feeding bottles have been clinically proven to reduce colic**At 2 weeks of age, babies fed with the AVENT bottle experienced less colic than babies fed with a conventional bottle

Male electric shavingNo.1, with every second shaver in the world being a Philips shaver

Power toothbrushesPhilips Sonicare is the no.1 recommended sonic toothbrush brand by dental professionals worldwide

Domestic appliancesOver one million ‘healthy living’ aluminum Juicers sold since launch

TVsPhilips invented the successful ambilight flat TV concept

LampsMarket leader: 1 out of every 4 lamps used worldwide is a Philips lamp

Professional luminaires No.1 lighting 65% of world’s top airports and 30% of offices, hospitals and landmarks

Consumer luminairesMarket leader and front runner in driving the switch to energy efficient lighting

LED applicationsStrong presence across the complete solid state lighting chain

Automotive lighting Leads the market, with one-in-three cars worldwide using Philips automotive lighting

The power of LightingFurther strengthening our global leadership

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HealthcareGiving people the best healthcare possible

We’re dedicated to understanding the challenges people face – and helping them overcome them every day.

We strive to improve the quality of people’s lives and continue raising the bar on clinical excellence at lower cost. Because healthcare simplified means improving healthcare for everyone.

People focused. Healthcare simplified.

HealthcareGiving people the best healthcare possible

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Consumer Lifestyle Making a difference to the way people live their lives

Living well, looking good and feeling great

Enhancing the home

Sharing life's experiences with family and friends

Enabling people to live healthier,more enjoyable and more rewarding lifestyles

Consumer LifestyleMaking a difference to the way people live their lives

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LightingSimply enhancing life with light

Innovating new lighting solutions based on proven consumer insights.

Global leader in sustainable lighting projects for cities, offices, workplaces and homes.

New business areas (e.g. solid-state lighting) provide energy-efficient solutions that reduce lighting’s environmental impact.

LightingSimply enhancing life with light

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Sustainability 41

Innovation process

What makes us differentDriven by our brand promise “sense and simplicity”

Philips peopleCustomer relationships

Leadership positionsEmerging Markets

Gain deep insights into people’s needs and aspirations by following a process requiring end-user input at every stage

Transform insights into innovations by combining the diverse perspectives of different disciplines

“Learn fast, fail cheap” by applying a rigorous process to assess value potential early

Lead in open innovation by working closely together with partners in a spirit of open innovation

Creating meaningful innovationsImproving lives in new ways

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Close customer relationshipsCreating promoters of our brand

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Customer loyalty is fundamental to growth and profitability

We win the trust of customers and partners• by understanding and anticipating their needs• by sharing our insights • by providing the right products and solutions

We monitor our effectiveness with the Net Promoter Score based on a simple question: “would you recommend us to a friend or colleague?”

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Philips peopleStrong leadership, heading a highly engaged workforce

A strong leadership teamformed by diverse top-60 leaders who focus on managing the current downturn while building the business for future wins

We live our company values • Delight customers• Develop people• Deliver great results• Depend on each other

A competitive advantagecreated by a proven, highly engaged workforce

An eye on the leaders of tomorrowby nurturing all talent in line with our strategies we optimize performance, and offer fast-track, stretch opportunities for top talent

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Emerging markets represent 30% of sales In Healthcare double-digit growth in sales and order intake

High corporate brand equity Consistently among the top-ranking players in India, China, Russia and Brazil

Championing growth with dedicated strategies Based on local market insights, supported by increased marketing investments

Increasing our footprint•Opened more than 100 exclusively Philips branded lighting stores in China and India•Established an Imaging Systems Industrial Campus in Suzhou, China

A strong position in emerging markets

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Sustainability as a driver for growth

Our commitmentOne of the strategic drivers behind our targets is a

commitment to sustainability and making a difference in energy efficiency

EcoVision4 program A clear example of how we are driving business

growth through Sustainability is the launch of our EcoVision4 program in 2007

Targets for the period 2007 – 2012• Generate 30% of revenues from Green

Products up from 15%• Double our investment in Green Innovations to

a cumulative EUR 1 billion • Further increase the energy efficiency of our

operations by 25%

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We are leaders in many marketsExamples of key leadership positions

Male shaving#1 Global, Arcitec and Nivea for men

Cardiovascular Market#1 Global,Cath Labs

Professional Lighting #1 Global, City Beautification; sports lighting

Care and Resuscitation#1 Global, AEDs (Automated External Defibrillators)

Coffee makers #1 Western Europe, Senseo

Consumer Lighting #1 Global, LED-based luminaires

Patient Monitoring#1 Global, Critical Care

Rechargeable toothbrushes #1 US # 2 Global, Flexcare

Lamps#1 Global, Energy-efficient lighting

Healthcare

ConsumerLifestyle

Lighting

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Leading today, into tomorrow

We’re a global company of leading businesses built on ‘sense and simplicity’Strengthened by a growing brand and significant investment in emerging markets

We provide solutions that improve people’shealth and well-beingA sustainable area of business, driven byglobal trends

We do this with a relentless people-focus • Highly engaged Philips people • Strong relationships with customers• Continued creation of meaningful innovations