Conclusions
Conclusions
Conclusions
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<strong>Conclusions</strong><br />
Gottfried Dutiné<br />
Executive Vice President Royal Philips Electronics<br />
President and CEO Consumer Electronics
Consumer Electronics<br />
• Leading (#1 in Europe, #3 world-wide) CE company<br />
• Key contribution to ‘One Philips’<br />
– Brand<br />
– Strengthening technology pillars in Display, Storage,<br />
Connectivity, Video Processing<br />
• Commercial platform for sustainable income from licenses<br />
• Operational Excellence in assets, inventories, outsourcing, etc.<br />
• Well positioned in change from analogue to digital<br />
• De-risked businesses and limited downside risk<br />
2
Aligning our organisation with the changing<br />
environment<br />
Changing environment<br />
• Converging industries<br />
• Content revolution<br />
• Globalisation<br />
• Increasing retail power<br />
• Intensified competition<br />
• Shorter lifecycles<br />
• Commoditisation<br />
• New growth markets<br />
• Increasing Partnerships<br />
• Phasing lifecycles<br />
5 Key initiatives<br />
Lean, focused organisation<br />
Portfolio lifecycle mgmt<br />
Operational Excellence<br />
Differentiated products<br />
Winning business models<br />
Sustainable<br />
profitable<br />
business<br />
3
Winning formula for execution in the market<br />
Partnerships with leading retailers<br />
Innovative alliances and new channels<br />
Differentiated business models<br />
Integrated through-the-line marketing<br />
Enhanced supply chain capabilities<br />
Global consumer services platform<br />
Solidify our USA position<br />
Capitalize on our stronghold in Europe<br />
Drive growth in Asia<br />
Leverage opportunities in Latin America<br />
4
This will bring us sustainable profitability<br />
• Based on integrated lifecycle management, we will create a<br />
combination of technology and product leadership as a platform<br />
for income from two sources:<br />
–Licences<br />
– Products and services<br />
• With a lean, focused organisation we put programs in place to<br />
be a 10 Billion Euro company that targets at least 2 + 2 – 2.5%<br />
returns in a de-risked business model with minimal NOC<br />
5
Our focus on Flat results in substantial share<br />
improvements across Europe<br />
Market Share in Value %<br />
50<br />
40<br />
30<br />
20<br />
10<br />
0<br />
LCD Value Share Germany Plasma Value Share Germany<br />
2002 YTD Q3 2003 Sep-03<br />
B Philips A C<br />
Source: CMI Market Flash report 2003, based upon Gfk<br />
Market Share in Value %<br />
30<br />
25<br />
20<br />
15<br />
10<br />
5<br />
0<br />
2002 YTD Q3<br />
2003<br />
D Philips A C<br />
Sep-03<br />
6
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