Introduction.

Koninklijke Philips Electronics N.V. (Royal Philips Electronics Inc.), most commonly known
as Philips, is a multinational Dutch electronics corporation.

Philips is one of the largest electronics companies in the world. In 2009, its sales were €23.18
billion. The company employs 115,924 people in more than 60 countries.

Philips is organized in a number of sectors: Philips Consumer Lifestyles (formerly Philips

Consumer Electronics and Philips Domestic Appliances and Personal Care), Philips Lighting and
Philips Healthcare (formerly Philips Medical Systems)
HISTORY

History of Philips Brand

Wherever we encounter it, the Philips brand is a familiar sight in millions of

households and buildings throughout the world with its instantly recognizable
wordmark of seven blue capitalized letters. Although the company has evolved and
grown over more than hundred years, Philips’ visual brand identity is rooted in its
early years at the beginning of the 20th century.
Philips in 20th Century: First Lamp Advertisements

Established in 1891 in Eindhoven, the Netherlands, Philips & Co. was founded to
meet the growing demand for light bulbs following the commercialization of
electricity.

In the early years of Philips & Co., the representation of the company name took
many forms: one was an emblem formed by the initial letters of Philips & Co., and
another was the word Philips printed on the glass of metal filament lamps.

One of the very first campaigns was launched in 1898 when Anton Philips used a
range of postcards showing the Dutch national costumes as marketing tools. Each
letter of the word Philips was printed in a row of light bulbs as at the top of every
card. In the late 1920s, the Philips name began to take on the form that we recognize
today.

Philips Identity Trademarked: Origins of the Shield Emblem

Advertising Philips Brand Today

Whilst the logo of the company has been consistent since the1930s the way in which
Philips has advertised and communicated to the outside world has varied. In general,
until the mid-1990s all advertising and marketing campaigns were carried out at
product level on a local market basis. This led to many different campaigns running
simultaneously, not giving a global representation of Philips as a global company.

To establish consistent global presence, in 1995 Philips introduced the first global
campaign in 1995 under the tagline “Let’s make things better”. This theme
encapsulated the “One Philips” thinking and was rolled out globally in all markets
and on all Philips products. This was also the first campaign that bought the whole
company together, giving the employees a sense of belonging and providing a unified
company look for an external audience.

In September 2004, Philips launched its “sense and simplicity” brand promise, which
marked a new way forward for the company. “Sense and simplicity” reflects Philips’
commitment to be a market-driven company that provides products and services that
fulfill the promise of being “designed around you, easy to experience and advanced”.

In 2008, the total estimated value of Philips brand increased by 8% to USD 8.3 billion
and was ranked the 43rd most valuable brand in Interbrand’s 2008 ranking of best
global brands.
FOUNDERS

The foundations of Philips were laid in 1891 when Anton and Gerard Philips established Philips
& Co. in Eindhoven, the Netherlands. The company begun manufacturing carbon-filament lamps
and by the turn of the century, had become one of the largest producers in Europe. By 1910, with
2,000 employees, Philips was the largest single employer in The Netherlands.

Stimulated by the industrial revolution in Europe, Philips’ first research laboratory was
established in 1914 and the company started introducing its first innovations in the x-ray and
radio technology. Over the years, the list of inventions has only been growing to include many
breakthroughs that have continued to enrich people’s everyday lives.
GROWTH

 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

Amsterdam, The Netherlands – 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.
Mission

"Improve the quality of people’s lives through timely introduction of meaningful innovations."

Vision

“In a world where complexity increasingly touches every aspect of our daily lives, we will lead
in bringing sense and simplicity to people.”

Vision 2010 Strategy

Through the Vision 2010 strategy, we aim to fuel growth by making Philips the
leading brand in Health and Well-being. Vision 2010 further positions Philips as a
market-driven, people-centric company with a strategy and a structure that fully
reflect the needs of its customer base, while also increasing shareholder value. This is
implemented through sharpened strategies in the three core sectors: Healthcare,
Lighting and Consumer Lifestyle.

 “With Vision 2010, we are putting people right at the center of things, with Health
and Well-being as our overarching theme. We are thereby putting into practice our
mission: improving the quality of life through the introduction of meaningful
innovations.” – Gerard Kleisterlee, President and CEO of Royal Philips Electronics

 
Our Ways of Working:

1. We are a people-centric company that organizes around customers and markets

2. We invest in a strong brand and consistently deliver on our brand promise of “sense
and simplicity”, in our actions, products and services
3. We deliver innovation by investing in world class strengths in end-user insights,
technology, design and superior supplier networks
4. We develop our people’s leadership, talent and engagement and align ourselves
with high performance benchmarks
5. We invest in high growth and profitable businesses and emerging geographies to
achieve market leadership positions
6. We are committed to sustainability and focus on making the difference in efficient
energy use
7. We drive operational excellence and quality to best in class levels, allowing us the
above mentioned strategic investments in our businesses