Royal Philips Electronics

Transcription

1 Royal Philips Electronics Patrick Kung, Member Executive Committee Royal Philips Electronics and CEO Philips Greater China Morgan Stanley China Industrials Summit, Beijing, PR China June 19 th,

2 A strong diversified industrial group leading in health and well-being Founded in 1891 Headquartered in Amsterdam, the Netherlands Sales of EUR 22.6 billion in 2011 Portfolio now 65% business-to-business Growth geographies 34% of sales generated in growth geographies Globally recognized brand (world top 50) Our brand value doubled to $8.7bn since ,000 employees Sales and service outlets in over 100 countries 1.6 billion investment in R&D, 7% of sales in ,000 patent rights 39,000 trademark rights 70,000 design rights 2

3 Our portfolio is focused on growing markets Demand for affordable healthcare Need for energy efficient solutions Desire for increased personal well-being % of Sales: 40% 35% 25% 3

4 Long Philips presence in China Philips Healthcare Philips healthcare products was used in the Forbidden City in the Qing dynasty Philips Lighting Philips Lighting products entered China in the 1920 s Philips Consumer Lifestyle The oldest Philips radio is found in the Summer Palace in Lhasa (1940 s) 4

5 Philips is a leading multinational in China Strong brand equity in China Consistently ranked top 3 of consumer brand equity list during China Top 10 Consumer Brands 2 Extensive presence across China Operates in more than 500 cities With 26 legal entities Provides employment in excess of 18,500 Strong local-for-local and local-for-global R&D competence With over 2,100 research staff For 5 consecutive years, Philips Research selected as one of the Best R&D centers in China Importance of Philips China China is the 2 nd largest market of Philips globally Source: 1.HeartBeat Survey 2.Superbrands 5

6 Accelerate! to unlock our full potential Changing the way we work at Philips Customer Centricity Resource to win Strong customer centricity and entrepreneurship in our markets supported by granular business growth plans in China Clear strategies and investment in talent, market development and local innovation capability which are resourced to win End2end Locally relevant Innovation with higher speed and excellence to outpace competition through effective end2end customer value chains Culture A new growth and performance culture to become a more agile and market oriented growth company Operating model Simplified operating model empowering growth, acceleration and reducing local overhead costs 6

7 Key milestones of Philips in China 1985 Beijing Philips Co. Ltd. established (first Philips joint venture in China) 1996 Philips China headquarters relocated from Hong Kong to Shanghai 1999 Philips (China) Investment Co., Ltd. established 2000 Philips Research East Asia established 2008 Acquired Goldway, a leading medical device company, the first ever local acquisition by Philips in China 2009 Announced the establishment of an Imaging System Industrial Campus in Suzhou, Jiangsu 2010 Acquired Apex, a leading medical device company, and NCW, a leading professional lighting solution company, in China 2011 Announced our strategic plan to make China another Global Home. Global headquarters of the Business Group Domestic Appliances relocated to Shanghai. Acquired Povos, a leading kitchen appliance company 2011 Announced to set up Philips China Second Headquarters and to build a LED Professional Lighting Solution Industrial Campus in Chengdu, Sichuan 7

8 Philips Healthcare in China We are No. 1 in Interventional Cardiology Premium CT Oncology big bore CT Digital Radiography Premium cardiac / vascular interventional X-ray Oncology simulation and planning system Cardiac ultrasound Resuscitation Defibrillator Sleep & Respiratory We provide excellent customer services, with industry recognitions, including Golden Service Award by China Hospital CEO Summit 2010 and Best Service Award for Ultrasound, Imaging Systems and Patient Monitoring China Biomed Engineering Association. We have extensive market reach in China staffed with hundreds of clinical specialists 8

9 with strong industrial and innovation footprint Acquisition of Goldway and Apex Philips acquired Goldway (China's leading patient monitoring company) in 2008, and Apex (a Chinese ultrasound transducers manufacturer) in 2010, aimed at providing high quality valuesegment healthcare products to meet the growing demand in China and other emerging markets New imaging industrial campus in Suzhou In 2009, Philips announced to invest US$54 million to establish a new industrial campus for imaging system in Suzhou. It further strengthens Philips innovation capabilities to serve both China and global market. Philips Healthcare China Academy In 2010, Philips Healthcare China Academy was put into operation. With state-of-the-art facilities, the Academy not only provides technical and application training for Philips service engineers, but also acts as an experience center for local customers. We plan to build a second one in West China. 9

10 Philips Consumer Lifestyle in China Broad product portfolio Personal Care Health & Wellness Leader in 14 categories* Shaver Hair Care Market reach Indexed A&P investment Male Grooming Beauty Domestic Appliances Oral Healthcare Mother & Child Care Dry Floor Care Garment Iron E Juicer Garment Steamer Number of retail counters in China Garment Care Kitchen Air Floor Care Appliances Lifestyle Entertainment Coffee Air Cleaner Home Cinema Sound ,500 9,000 Female Depilation Coffee Maker (DF) 2012E 10,000 Home AV Personal AV Home Headphone Communication Coffeemaker * Source: GfK, ZYK, MAT April

11 with strong local business creation capabilities Male Grooming: continue our strong #1 position, with expansion into middle class and lower tier markets SensoTouch Shaver for premium market Tiger Shaver for entry level market Local activation with celebrity endorsement Extensive distribution network Kitchen Appliances: leverage Povos expertise in Chinese Cooking, with complimentary distribution networks Philips Kitchen Appliances counter at e-chain New Philips Chinese Cooking range 2012 Best KA Range Award: RC, IC & EPC Hers Magazine Povos continues promotion at lower tier market 11

12 Philips Lighting in China Local innovation and business creation capabilities No. 1 position in China lighting market. Full range of lighting solutions from light sources, lighting electronics, professional luminaires, consumer luminaires to controls. As the technology and innovation leader, Philips is driving the transformation towards LED applications. 7 Business Units 4 R&D Centers 1,000+ R&D engineers 13 Manufacturing sites 11,000 Employees 12

13 with extensive channel coverage Strong market access and segment focuses Strong coverage of all key lighting segments urban, road, sports, retail, hospitality, office, industry, entertainment and home. Go-to-market via specialized channels Professional, Consumer, OEM and other dedicated channels (e.g. Automotive, Entertainment, etc.) 1,200+ Cities / towns with distribution coverage 25,000+ Retail outlets 2, Philips shop-inshops Philips branded stores Regional sales offices 13

14 Key Takeaways Philips is a strong diversified industrial group leading in Health and Wellbeing Accelerate! will unlock full potential Philips has over years built a solid foundation in China, with strengths in brand equity, in industrial capabilities, and in market reach Philips holds strong market leadership in China across three sectors, aided by continuous investment in local innovation and business creation capabilities, in geographic expansion and in local talent development 14

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