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Positioned for the future

Positioned for the future. Agenda. Philips – a leader in health and wellbeing Our proposition – building a career at Philips. We are a diversified global company, leading in health and well-being. Founded in 1891 Headquartered in Amsterdam, the Netherlands

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Positioned for the future

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  1. Positioned for the future

  2. Agenda • Philips – a leader in health and wellbeing • Our proposition – building a career at Philips

  3. We are a diversified global company, leading in health and well-being Founded in 1891 Headquartered in Amsterdam, the Netherlands Sales of EUR 22.6 billion in 20111 Growth Markets 33% of sales generated in growth geographies Globally recognized brand (world top 50)Our brand value doubled to $8.7bn since 20042 121,888 employees Sales and service outlets in over 100 countries €1.6 billion investment in R&D as of 2012, 7% of sales • 1Note - All figures exclude discontinued operations • 2Source: Interbrand

  4. 26% 40% 34% Our mission to improve people’s lives is delivered through our global operations in 3 core business sectors Our mission Our businesses Our Geographies Geographies1 Improving people’s lives through meaningful innovation. 2011 • A truly global footprint with operations in 100 countries • 33% of sales from emerging markets 58% 42% Healthcare Lighting Consumer Lifestyle

  5. Across our sectors, we have built strong leadership positions in many markets Healthcare Global Sleep Therapy Systems Global Cardiovascular X-ray Global Patient Monitoring Global Cardiac resuscitation Regional Ultrasound Consumer Lifestyle Global Male electric shaving Global Rechargeable Toothbrushes Regional Kitchen Appliances Regional Electric Hair Care Global Garment Care Lighting Global High Power LEDs Global Professional Luminaires Global Lamps Global LED Lamps Global Automotive Lighting

  6. Our focus on growth includes sustainability as a key driver; we have aggressive goals for green innovation Accelerating sustainable business • Green Products represented 39% of total sales in 2011, up from 30% in 2009 • By 2015 Philips aims to invest EUR 2 billion in Green Innovation EcoVision targets for 2010 – 2015 • Bring care to more than 500 million people • Improve the energy efficiency of Philips overall portfolio by 50% • Double the global collection and recycling amounts of our products, as well as double the amount of recycled materials in our products 6

  7. Philips has a long presence in Africa – our first trade started in 1895 Significant track record of presence in South Africa: 1895 - First business transaction in South Africa 1905 - First Legal Entity in South Africa 1938 - Radio factory established 1974 - TV factory established 2009 - Energy saving lighting factory in Lesotho Today: we are represented throughout the continent by a wide network of distribution partners with dedicated offices in Egypt, Morocco, Kenya and South Africa, also the location of our Philips Africa headquarters

  8. Our 2012 strategy in Africa is centered on three core themes, linked to societal issues • Partnerships to deliveraffordable care for women and children • Delivery of energy efficient lighting solutions, particularly solar Increased personal well-being for consumers Mature 67% The foundation to successfully executing our strategy is the existence of a strong talent pipeline

  9. Agenda • Philips – a leader in health and wellbeing • Our proposition – building a career at Philips

  10. The key to achieving our growth goals is having a pipeline of talented leaders At Philips we unite people and business by Delivering meaningful resultstogether Ensuring growth for people and the business Creatingwell-beingfor yourself and our customers

  11. People are at the heart of our company, and they take pride in the work they do Employee Engagement Index Our people vision "We are a market-driven company with a truly people-centric approach and a high performance growth culture" High performance benchmark 77 76 72 71 66 63 62 Philips at high performance norm The 2011 ‘employee engagement index’ polling over 90,000 of the Philips workforce showed we are amongst the world’s top-ranking companies 2005 2006 2007 2008 2011 2009 2010 Strong internal brand184% of employees are “proud to work for Philips” 1 Employee Engagement Survey 2011

  12. Our talent management philosophy is designed to build a leadership pipeline for our future • We believe strong leaders grow both the business and their people • We build on people’s strengths • We enable people to build broad careers • We promote primarily from within

  13. Businessexperience Leadershipcompetencies Leadershipeffectiveness X = Critical experience needed: Essential leadership capabilities Evaluating track record • What: Proven business impact, visible through key career achievements • How: shown leadership across our three behaviors: • Take Ownership • Eager to Win • Team up to Excel • Pursue market insight • Create innovative strategies • Inspire commitment • Leverage capabilities • Champion people’s growth • Drive for results To build our future leaders, we work with employees to map their career path • well-rounded profile for a leadership career • Plus a set of function specific experience

  14. There are several touchpoints to help you design and expand your career

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