in health and well-being
· New 5 year plan builds on Vision 2010 gains; focuses on fuelling growth, increasing brand preference and market leadership
· Philips lays out updated financial aspirations for 2011-2015
Royal Philips Electronics (AEX: PHI, NYSE: PHG) today outlined its strategic ‘Vision 2015’ plan to further strengthen Philips’ leadership in the domain of health and well-being. The company will detail its key priorities, market opportunities and investment focus areas for the coming years. Vision 2015 aims to fuel growth and bolster Philips’ competitive position in key markets, benefitting all the company’s stakeholders in a sustainable way.
“It has become customary for Philips to periodically provide our stakeholders a roadmap of how we want the company to develop,” Philips President and Chief Executive Officer Gerard Kleisterlee commented. “Our plan for 2015 is an evolution of our Vision 2010 strategy. We will continue to build on the key global trends to expand our leadership in key businesses such as home healthcare, LED lighting solutions and healthy living and personal care. I firmly believe Philips is uniquely positioned for growth as it continues to simply make a difference to people’s lives with meaningful, sustainable innovations.”
Vision 2015 defines several company-wide key priorities for the next five years:
· Philips aims to expand its existing leadership positions whilst benefitting from several of its markets growing faster than global GDP.
· Philips wants to be the preferred brand in health and well-being in the majority of the markets it operates in.
· Philips is committed to being a leading company in matters of sustainability. The company looks at sustainability through the lenses of its sectors and defines specific ambitions for each of them, as communicated in its recent EcoVision5 program.
· Philips wants to be seen by all stakeholders as making a positive difference in people’s lives.
|
As part of Vision 2015, Philips has set the following medium term performance aspirations for the Philips group: · Comparable annual sales growth on an annual average basis at least 2% higher than global Gross Domestic Product over the 2011 – 2015 period · Reported annual Earnings before Interest, Taxes, Amortization (EBITA) between 10% and 13% of sales in the 2011 – 2015 period · Growth of earnings per Share (EPS) at double the rate of comparable annual sales growth over the 2011 – 2015 period · Return on Invested Capital at least 4% above weighted average cost of capital |
Gerard Kleisterlee will present Philips’ Vision 2015 in more detail to financial analysts and investors today at the company annual Lighting Capital Markets day in London. At this event, Lighting executives including Rudy Provoost, Chief Executive Officer of Philips Lighting, will present on the sector’s current market views, business priorities and ambitions.
“The lighting market is extremely dynamic,” commented Rudy Provoost. “We see the global shift to energy efficient lighting solutions and the rapid adoption of LED accelerating our growth. Emerging market expansion continues and we expect to capitalize on the positive long-term trends in those markets. Against this backdrop, we are strongly positioned to solidify our global leadership through delivering unique customer segment applications and solutions while leveraging our strong position in conventional lighting.”
During his presentation, Mr. Provoost will explain how Philips Lighting is well-positioned to grow sales and to further expand EBITA margins to 12-14% on a reported basis in the years to come.
Mr. Kleisterlee’s presentation will begin at 10:30 AM CET, or 09:30 AM GMT, and is expected to end around 12:00 AM CET, after which the Lighting Capital Markets Day will commence. All presentations can be followed via webcast at the Investor Relations website.
