Vision 2010 Strategy

 
Our Ambitions*

Our financial targets:

- Double EBITA per common share from 2007 level

- The Group EBITA margin of 10-11%

- Sector EBITA targets:

  • Healthcare 15-17%
  • Lighting 12-14%
  • Consumer Lifestyle
    8-10%

- Comparable sales growth of 6% average per year

- Return on invested capital of 12-13%

 

Vision 2010

Through the Vision 2010 strategy, we aim to fuel growth by making Philips the leading brand in Health and Well-being. Vision 2010 further positions Philips as a market-driven, people-centric company with a strategy and a structure that fully reflect the needs of its customer base, while also increasing shareholder value. This is implemented through sharpened strategies in the three core sectors: Healthcare, Lighting and Consumer Lifestyle.

 

 

“With Vision 2010, we are putting people right at the center of things, with Health and Well-being as our overarching theme. We are thereby putting into practice our mission: improving the quality of life through the introduction of meaningful innovations.” – Gerard Kleisterlee, President and CEO of Royal Philips Electronics

 

 

Our Ways of Working:

  1. We are a people-centric company that organizes around customers and markets
  2. We invest in a strong brand and consistently deliver on our brand promise of “sense and simplicity”, in our actions, products and services
  3. We deliver innovation by investing in world class strengths in end-user insights, technology, design and superior supplier networks
  4. We develop our people’s leadership, talent and engagement and align ourselves with high performance benchmarks
  5. We invest in high growth and profitable businesses and emerging geographies to achieve market leadership positions
  6. We are committed to sustainability and focus on making the difference in efficient energy use
  7. We drive operational excellence and quality to best in class levels, allowing us the above mentioned strategic investments in our businesses
 
Update

*On December 4, 2008, Philips confirmed that it continues to execute on its defined Vision 2010 strategy.  However, given the current economic environment, the financial targets set as part of Vision 2010 are not expected to be met by the end of 2010 as originally planned due to the continuing economic slowdown and resulting declining demand in key markets. Philips remains fully committed to its strategy, and will update the market on the realization of its financial objectives when economic visibility improves.