History of Philips

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 and the shield emblem with its stars and waves. Over more than
120 years Philips has evolved and grown, becoming a leading, highly trusted brand in
markets all over the world. The companys visual identity has remained true to its
legacy, rooted in its early years at the beginning of the 20th century.






Philips Brand Today: innovation and you


In 2013, Philips unveiled its brand positioning that builds on the companys legacy of
creating innovations that matter to people. As part of its new positioning, Philips
introduced the new brand line innovation and you, which is rooted in Philips
strong belief that innovation is only meaningful if it is based on a deep understanding
of peoples needs and desires. The design of the Philips shield was also modernized
for use in digital and mobile channels, while retaining its heritage of the stars and
waves. The brand direction was brought to life by the launch of a digital storytelling
platform, showcasing a wide range of Philips innovations that make a real difference
to people across the globe.
Philips Entering 21st Century: sense and simplicity


In September 2004, Philips launched its sense and simplicity brand promise, which
marked a new way forward for the company. Sense and simplicity reflected
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. The company focused on peoples health and well-being by providing
products and solutions in the areas of Healthcare, Consumer Lifestyle and Lighting.


Building a Consistent Global Presence in the 90s: Lets make things better


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 representation of Philips as a global company.

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

Philips Identity Trademarked in the 1930s: Origins of the Shield Emblem


At this time, Philips business activities were expanding rapidly and the company
wanted to find a trademark that would uniquely represent Philips, but one that would
also avoid legal problems with the owners of other well-known circular emblems.
This wish resulted in the combination of the Philips circle and the wordmark within
the shield emblem.

In 1938, the Philips shield made its first appearance. Although modified over the
years, the basic design has remained constant ever since and, together with the
wordmark, it gives Philips the distinctive identity that is still embraced today.

For the first time in 1930s, the four stars flanking the three waves were placed
together in a circle. After that, the stars and waves started appearing on radios and
gramophones, featuring the circle as part of their design. Gradually the use of the
circle emblem was then extended to advertising materials and other products. Since
then, this trademark has been used across the world and has become one of the
identifiers of the Philips Company as the single source of Philips-branded products.

The now familiar Philips waves and stars first appeared in 1926 on the packaging of
miniwatt radio valves, as well as on the Philigraph, an early sound recording device.
The waves symbolized radio waves, while the stars represented the ether of the
evening sky through which the radio waves would travel. In due course, these two
elements were placed in a circle, presumably symbolizing the globe.

Philips in the 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 at the top of every card.
In the late 1920s, the Philips name began to take on the form that we recognize today.













Philips Foundation
Four years after The Phillips Foundations founding in 1990, we inaugurated our Robert Novak
Journalism Fellowship Program to award annual fellowships to young print and online
journalists to undertake writing projects supportive of American culture, a free society, and free
markets. Our new Fellows are introduced each May at an awards banquet at the National Press
Club before a distinguished audience of journalists, policy leaders and other influential figures.
We introduced 7 new Fellows at our 20
th
annual awards banquet on May 7, 2013. We have
awarded 117 fellowships since 1994 to promising young journalists. Our Fellows are making an
impact in American journalism on the editorial pages of leading newspapers and magazines, as
groundbreaking reporters, and as editors and authors. Robert Novak, a founding trustee,
provided the inspiration for the program which we renamed in his honor following his passing in
the summer of 2009.

In 1999, we established the Ronald Reagan College Leaders Scholarship Program to provide
renewable scholarships to college undergraduates who demonstrate leadership on behalf of
freedom, American values and constitutional principles. Far too often the institutional and
financial advantages provided by colleges go to students hostile to American ideals. Our merit-
based scholarship program helps provide a level playing field. Through renewable scholarships
of $10,000, $5,000, $2,500, and $1,000, our program allows exceptional students more
opportunities to lead by example and initiative and have a much greater impact. We have
awarded more than 500 scholarships since inception of the program, including 51 students for
the 2012-2013 academic year. These scholarship winners include students from many different
backgrounds attending a variety of schools across the country. Each is a rising star and a catalyst
for change on campus and in the community. For many, our help made the critical difference in
being able to remain in school and be a leader-activist. Unfortunately, this program was shut-
down after scholarships were awarded for 2012-2013 due to lack of funding.

The Phillips Foundations fellowship and scholarship programs have awarded more than $6
million in fellowships and scholarships. Our programs truly are making a difference by
nurturing a new generation of responsible journalists and future American leaders in the private
and public sectors.








Products







Company financial statement

Introduction
Statutory financial statements
The sections Group financial statements and Company financial statements contain the
statutory financial statements of Koninklijke Philips N.V. (the Company).
A description of the Companys activities and group structure is included in the
Consolidated Financial Statements.
Accounting policies applied
The financial statements of the Company included in this section are prepared in
accordance with Part 9 of Book 2 of the Dutch Civil Code. Section 362 (8), Book 2, Dutch
Civil Code, allows companies that apply IFRS as adopted by the European Union in their
consolidated financial statements to use the same measurement principles in their company
financial statements. The Company has prepared these Company financial statements
using this provision.
The accounting policies are described in note (1) Significant accounting policies.
Investments in group companies are accounted for using the equity method in these
Company financial statements.
Presentation of Company financial statements
The structure of the Company balance sheets is aligned with the Consolidated balance
sheets in order to achieve optimal transparency between the Group financial statements
and the Company financial statements. Consequently, the presentation of the Company
balance sheets deviates from Dutch regulations.
The Company balance sheet has been prepared before the appropriation of result.
The Company statement of income has been prepared in accordance with Section 2:402 of
the Dutch Civil Code, which allows a simplified Statement of income in the Company
financial statements in the event that a comprehensive Statement of income is included in
the consolidated Group financial statements.
Additional information
For Additional information within the meaning of Section 2:392 of the Dutch Civil Code,
please refer to Independent auditor's report - Group, Independent auditor's report -
Company, and Proposed distribution to shareholders.

Adjustments
Prior-period financial statements have been restated following the adoption of IAS 19R,
which mainly relates to accounting for pensions.
Awards and Recognition


At Philips we set high performance targets for ourselves and strive to reach our
goals and we believe it is critical to report on our progress. We use the benchmark
information and research of external indexes to help us strengthen our management
systems and sustainability reporting. We are proud of the recognition we have
earned for our performance over the years.

At Philips we set high performance targets for ourselves and we believe it is critical
to report on our progress. We use the benchmark information and research of external
indexes to help us strengthen our management systems and sustainability reporting.
We are proud of the recognition we have earned for our performance over the years.

2013
VBDO Responsible Supply Chain Management Award - Philips received
the VBDO Responsible Supply Chain award for the sixth year in a row.
Crystal Prize - Philips received the Crystal Award (De Kristalprijs),
acknowledgement for the most transparent Annual Report in the Netherlands,
initiated by the Dutch Ministry of Economic Affairs.
Dow Jones Sustainability Index Philips achieves a score of 90/100 Best
in Class score in Environmental Dimensions. Philips has maintained its
membership in the Industrial Conglomerates category.
CDP Philips is one of the highest scoring companies on disclosure and
performance (100 points and A-rating)
Top 50 Best Global Green Brand by Interbrand Philips is one of the
biggest climbers in the annual ranking of the top 50 Best Global Green Brands
by leading brand consultancy, Interbrand. Philips has the second largest
increase amongst technology brands and gains eight places to 23
rd
position, up
from 31
st
last year.
Global 100 Most Sustainable Corporations in the World Philips has been
ranked number 7 on the annual list of Global 100 Most Sustainable
Corporations in the World by Corporate Knights up 6 places from 2012.
RobecoSAM 2013 Sustainability Yearbook - Philips qualified for inclusion
in the 2013 ranking and is among the winners of RobecoSAMs sustainability
distinctions.
+ RobecoSAM 2013 Sustainability Yearbook.

2012

Best Improvement in Patient Safety 2012 Philips iDose.
The Irish Medical and Surgical Trade Association acknowledged Philips'
efforts in creating a solution that dramatically reduces radiation in CT
scanning procedures without compromising image quality.
Newsweek Green Rankings 2012 - Philips was ranked first in the Industrial
Goods category. In the overall global rankings we were rated the 23rd most
sustainable company in the world.
Dow Jones Sustainability Index - Philips achieved the distinction of
Supersector leader in the Personal and Household Goods category 2012-
2013 for the second consecutive year.
Carbon Disclosure Projects Global 500 Carbon Leadership Index 2012 -
Philips recognized as a leader.
Top 50 Best Global Green Brand by Interbrand
VBDO Responsible Supply Chain Management Award - Philips received
the VBDO Responsible Supply Chain award for the fifth year in a row.

2011
Gigaton Award by the Carbon War Room - Philips received an award the
for its EcoDesign product design process.
VBDO Responsible Supply Chain Management Award - The Dutch
Association of Investors for Sustainable Development (VBDO) awarded
Philips for the VBDO Responsible Supply Chain award for the fourth
consecutive year.
Newsweek Green Rankings 2011 - Philips was recognized as the 9th
greenest company.
Dow Jones Sustainability Index - Philips was awarded Supersector leader
in the Personal and Household Goods category 2011-2012.
Top 50 Best Global Green Brand by Interbrand
Carbon Disclosure Projects Global 500 Report 2011 - Philips was
acknowledged as the top rated company within the Consumer Discretionary
sector.


2010

Dow Jones Sustainability Index - Philips was rated one of the top companies
in the Personal and Household Goods sector in 2010.
Carbon Disclosure Leadership Index and the Carbon Performance
Index - Philips was among the top ten companies acknowledged on both
indexes in 2010.
Carbon Disclosure Projects Netherlands 50 Report - Philips ranked first
in 2010.
VBDO Responsible Supply Chain Management Award - the Dutch
Association of Investors for Sustainable Development (VBDO) awarded
Philips in 2010 for the third year in a row.
L*Prize - The American Lighting Association recognized our new 60W-
equivalent LED replacement lamp as the best LED replacement solution in the
US A19 class.
Greenpeace - Greenpeace highlighted Philips in its Greener Guide to
Electronics for our commitment to producing products free of PVC and BFRs.
Philips was ranked 3rd overall.




Philips has been included in the Dow Jones Sustainability Indexes since 2000
and continues to be a member company of the FTSE4Good Index.


Mission
Improving peoples lives through meaningful innovation.






Objective
Philips Consumer Lifestyle will continue to play an important role in the realization of Philips
strategic ambitions in the domain of health and well-being.
Consumer Lifestyle has defined the following key business objectives :
Drive performance
Accelerate top-line growth, growing market shares and increasing market penetration in
selected business/market combinations
Maintain market share and optimize profitability in selected other business/market
combinations
Increase outright leadership positions in Net Promoter Score, underpinned by a strong
focus on product performance and quality
Drive operational excellence end-to-end through the value chain
Deliver on our EcoVision sustainability commitments

Improve capabilities
Champion consumer and retailer responsiveness, organizing around customers and
markets and moving decision-making closer to markets
Develop new go-to-market channels and opportunities
Accelerate high-impact innovation relevant to local consumer needs to beat competition
Drive an agile organization with fast decision-making and clear accountabilities

Implement strategy
Grow Personal Care, Health & Wellness, Domestic Appliances and Coffee businesses
Continue to strengthen Television business and manage it towards profitability
Maintain position in Audio & Video Multimedia and Accessories while driving growth in
selected business/market combinations
Grow emerging markets and make China a global home, building business creation
capabilities
Strengthen our portfolio with targeted mergers and acquisitions






OVERVIEW


Royal Philips of the Netherlands is a diversified technology company, focused on
improving peoples lives through meaningful innovation in the areas
of Healthcare, Consumer Lifestyle and Lighting. The company is a leader in
cardiac care, acute care and home healthcare, energy efficient lighting solutions and
new lighting applications, as well as male shaving and grooming and oral
healthcare.



Creating innovations that matter to
people
Since the introduction of the first Philips
light bulb more than 120 years ago,
innovation and a people-centric approach
have always been at the core of our
company.


Our commitment is to deliver new
healthcare and lighting technologies, as
well as innovative and locally relevant

Business Highlights in Q4
As a leading innovator in image-guided
interventions and therapy, Philips has
expanded its product portfolio with
InfraredXs catheter-based imaging system
and teamed up with RealView Imaging to
demonstrate the feasibility of 3D
holographic imaging in interventional
cardiology.

Driven by the positive consumer response
to the Philips AVENT Natural Feeding
consumer products that make a real
difference to our customers, consumers
and stakeholders across the globe. We
believe that the best way for us to do this,
is through deep understanding of peoples
needs and desires.

When we bring the two together people
and innovation we create the next
generation of technology and things that
people truly want and need. These are
meaningful innovations that help people to
be healthy, live well and enjoy life. This
sets us apart and makes us Philips.


range, Philips Mother and Childcare
delivered strong growth in European
markets such as Germany, France, the UK
and Central & Eastern Europe.

Philips was awarded the order to renovate
most of Buenos Aires 125,000 street
lights with its CityTouch connected LED
system. This system allows each light
point to be programmed and remotely
controlled, improving comfort and safety
at lower energy cost.