Philips is a diversified technology company with a dynamic portfolio of 40 businesses serving attractive markets of Healthcare, Personal health & well-being and Lighting. Our business portfolio and domains are well positioned to capitalize on global trends that create great opportunities for profitable growth. Currently a growing share of 36% of group revenue is generated in growth geographies.
Our multi-year change and performance program Accelerate! was launched in the second half of 2011 and is being implemented across the organization to realize the value potential of our company and speed up growth. Key initiatives have been launched to implement the Philips Business System and step up resourcing for growth, granular strategy execution, value delivery to customers, and to adapt the culture and reward system. Accelerate! is working well and will continue to create significant value, with the 2016 targets as the next step on our Path- to-Value, and more to come thereafter. Initiatives include a EUR 1.5 billion cost reduction program to be completed by the year 2015, End2End productivity gains and procurement savings through Design for Excellence (DfX).
We believe that the following growth drivers will enable Philips to achieve its growth and profitability ambitions:
- Growing and aging population with more chronic diseases
- Growing demand for integral value-based healthcare solutions
- Growth geographies with growing middle class
- Rising health & well-being consciousness
- The world’s need for more light and energy efficient lighting
- Digitalization driving demand for integrated lighting solutions
Our leading portfolio and business domains play right into these global trends, as evidenced by:
Our Healthcare business is a world leader in many areas including cardiovascular X-ray, image-guided interventions, patient monitoring and home healthcare, and will play an increasingly important role in the years ahead. Equally, our Consumer Lifestyle business is built on a portfolio of leading businesses - including male shaving, oral healthcare, mother and childcare and domestic appliances. We are the world's largest Lighting company with a leading position in LED lighting solutions - the future of this industry. We will continue to leverage our brand, our rich technological heritage and our advanced insight into the needs of end-users to bring innovation that matters to our customers.