Operation & Activities

Royal Philips Electronics

Backgrounder

Royal Philips Electronics of the Netherlands (NYSE: PHG, AEX: PHI) is a diversified Health and Well-being company, focused on improving people’s lives through timely innovations. As a world leader in healthcare, lifestyle and lighting, Philips integrates technologies and design into people-centric solutions, based on fundamental customer insights and the brand promise of “sense and simplicity”.

 

Headquartered in the Netherlands, Philips employs approximately 121,000 employees in more than 60 countries worldwide. With sales of EUR 26 billion in 2008, the company is a market leader in cardiac care, acute care and home healthcare, energy efficient lighting solutions and new lighting applications, as well as lifestyle products for personal well-being and pleasure with strong leadership positions in flat TV, male shaving and grooming, portable entertainment and oral healthcare.

 

80,000 registered patents illustrate the innovative nature of the company. In a world in which technology increasingly touches every aspect of daily life, we want to bring "sense and simplicity" to consumers with advanced, easy to use products that are designed specifically to meet their needs, wherever in the world they may be.

 

 

Healthcare

 

We simplify healthcare by focusing on the people in the care cycle – patients and care providers. Through combining human insights and clinical expertise, we aim to improve patient outcomes while lowering the burden on the healthcare system. Philips delivers advanced solutions for both health professionals, to meet the needs of patients, and empowered consumers for affordable healthcare whether in hospital or at home.

 

Some product highlights: 256-slice Brilliance iCT scanner, Integrated cath lab, Avalon FM 20 & FM 30 fetal monitors, Ambient Experience MR and CT systems, Philips Lifeline's personal emergency alert service.

 

 

 

Lighting

 

As the world’s leader in Lighting, Philips is driving the switch to energy-efficient solutions. With worldwide electrical lighting using 19 per cent of all electricity, the use of energy-efficient lighting will significantly reduce energy consumption around the world and thereby cut harmful CO2 emissions. Philips provides advanced energy-efficient solutions for all segments: road lighting, office & industrial, hospitality and home. Philips is also a leader in shaping the future with exciting new lighting applications and technologies such as LED technology, which, besides energy efficiency, provides attractive benefits and endless new ‘never-before-possible’ lighting solutions.

 

Some product highlights: Xenon car lighting, CosmoPolis Street lighting, Living Colors ambience lighting.

 

 

Consumer Lifestyle

 

Guided by our brand promise of “sense and simplicity” and starting from our consumer insights, Philips Consumer Lifestyle offers rich, new consumer experiences that meet consumers’ desire for relaxation and improving their state of mind. We address the consumer's desire for wellness and pleasure, and we've mapped this approach by looking at the individual's interests in terms of their Space, their Mind, their Body, and their Appearance.

 

Some product highlights: Whole-fruit juicer, Swarovski encrusted headphones, Aurea ambilight television, Wake-up Light, arcitec shaver, One-touch espresso machine.

 

 

Our Mission

 

Philips has reinvented itself many times, but through it all our core, the soul of our company, remained intact. That is because it was part of our company since its inception in 1891. It is the passion to…

 

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

 

 

Our Vision

 

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

 

 

Our Values

  • Delight customers
  • Deliver on commitments
  • Develop people
  • Depend on each other

 

 

Our Brand Promise

 

We empower people to benefit from innovation by delivering on our brand promise of “sense and simplicity”. This brand promise encapsulates our commitment to deliver solutions that are advanced, easy to use, and designed around the needs of all our users.

 

 

Vision 2010

 

Philips is on a journey to transform itself into a truly market driven and people centric company. This involves a strategy that aims to grow the company further in the areas of Healthcare, Lighting and Consumer Lifestyle. As part of its "Vision 2010" strategy, Philips has simplified its business structure to align with this strategy by creating three core sectors as per January 1, 2008: Philips Healthcare, Philips Lighting, and Philips Consumer Lifestyle.

  • Vision 2010 aims to fuel growth through sharpened strategies for Healthcare and Lighting, as well as an integrated approach for Consumer Lifestyle.
  • Vision 2010 positions Philips as a market-driven company, people centric with a structure that matches the needs of our customer base. Vision 2010 confirms we’re a company focusing on three market sectors: Healthcare, Lighting and Consumer Lifestyle.

As a result of Vision 2010, Philips has announced it expects higher levels of operating profitability. By 2010, Philips expects to more than double its EBITA per share compared to the level expected in 2007.

 

 

Strategic Actions

 

We will reach our objectives by executing on the following strategic actions:

  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

 

We drive operational excellence and quality to best in class levels, allowing us the above mentioned strategic investments in our businesses

Philips Malaysia Sdn Bhd

Backgrounder

Philips has had a presence in Malaysia since the late 1930’s. The business activities of the Philips Group of Companies in Malaysia at that time included manufacturing, exports, local sales and marketing. In 1960, Philips Malaysia, which was incorporated initially, sold light bulbs through appointed agents. By 1970s Philips had taken over marketing operations and expanded its range of products.  Today, having established a credible and reputable name in various industries which include lighting, healthcare and consumer lifestyle, the business activities of the company consist of sales, marketing, technical and application support.

 

 

Ambitious in attaining continuous profitable growth, Philips contributes significantly to the local economy. Philips ambition is to grow its position in Asia Pacific and to ensure this region contributes to one third of Philips’ global revenue. Key to Philips success is the need to grow in China, India and ASEAN, where Philips views ASEAN as a single integrated market of which Malaysia plays an important role.

 

In Malaysia, Philips is committed to a market-driven approach for the company to bring hi-technology to the doors of consumers to improve the quality of people’s lives.

 

Commercial Activities

 

In August 2005, Royal Philips Electronics of Netherlands acquired Agilent Technology’s 47% shares in Lumileds Lighting Int B.V.  This resulted in Philips having earned the controlling ownership in Lumileds, which produces solid-state lighting. Through this Philips will expand its leadership profile in lighting by further expansion of the solid-state lighting business.  Malaysia is the only manufacturing facility for Lumileds and employs 1200 people.

 

 

 

Philips Human Resource Policy

 

Philips is a world-class company that attracts, develops and retains diverse and talent for all stakeholders. The mission of HR in Philips is to support the business and enhance competitiveness for people to contribute.

Lines of Businesses

i. Healthcare

Healthcare

A leading supplier of diagnostic imaging and patient monitoring devices, Philips Healthcare delivers one of the world's most robust portfolios of medical equipment for faster and more accurate diagnosis and treatment. The Philips' product-line includes best-in-class technologies in X-ray, ultrasound, magnetic resonance, computed tomography, nuclear medicine, PET, radiation oncology systems, patient monitoring, information management and resuscitation products, as well as a range of training and education services. Philips Healthcare is represented in more than 100 countries, employing 22,000 people.

Philips Healthcare is committed to leading the way in developing technologies and services to help healthcare providers improve quality and cost-effectiveness of patient care, from diagnosis to treatment. Extensive research and developments is conducted in close co-operation with Philips Research and over 30 medical and technical institutions.

In Malaysia Philips has supplied the MRI, CT scan and Cardiovascular systems, as well as the latest Patient Monitoring Systems and Ultrasound and HeartStart Defibrillator to some of the renowned private and public hospitals in the country. Philips is also the market leader in cardiovascular, patient monitoring and echocardiography systems locally. This leadership position was attained through the establishment and maintenance of strong customer partnerships with the local hospitals. Philips Malaysia is also renowned in providing excellent after sales service by a team of well-trained and experienced engineers.

ii. Lighting

Lighting

Philips is No.1 in the global lighting market, a position supported by leadership in innovation combined with a systematic approach to seeking out new market opportunities.Our ambition is to set the pace in the lighting industry as the first-choice innovative partner for the supply of creative and cost-effective lighting solutions.

Our products are found all around the world: not only everywhere in the home, but also in a multitude of professional applications, for example 30 per cent of offices, 65 per cent of the world's top airports, 30 per cent of hospitals, 35 per cent of cars and 55 per cent of the worlds major football stadiums (seven of the ten at the 2002 soccer World Cup in Japan/Korea). Products include a full range of incandescent and halogen lamps, compact and normal fluorescent lamps, high-intensity gas-discharge and special lamps, fixtures, ballasts, lighting electronics, and automotive lamps.

 

Philips Lighting has a solution for all requirements and these include for industrial, shop, office, road and area, hospitality, sports, city beautification, flash lights homes, schools, petrol stations and the automotive industry. Philips Lighting employs some 47,000 people at various manufacturing locations worldwide.

 

Locally, Philips is responsible for lighting numerous landmark projects and these include using the intelligent lighting system for the 67km KLIA express highway, ministerial buildings in the administrative hub, the longest river bridge in Sungai Dinding, Perak, the exterior and interior of the KLCC twin tower, lecture halls and the library of the Cyberjaya Multimedia University. Philips has set a clear leadership position especially with its lighting products which is not only limited to road lighting but has introduced a whole new dimension to lighting through its city beautification lighting projects, which is said to have an emotional impact to people. Some of the products, which Philips offers to the local market, include lamps, gears, luminaries and automotive and special lighting. Philips is also providing its solid state lighting which enables designers to create a new breed of lighting fixtures that dedicate much less space to the light source, eliminate the need to replace bulbs, and require less energy.

iii. Consumer Lifestyle

Consumer Lifestyle

Consumer Electronics

 

Philips is one of the world's top three consumer electronics companies, with a range of products based on the company’s world-leading digital technology competencies, and designed to enhance consumers’ everyday lives - at home, at work or on the move. Not only is Philips one of the largest manufacturers of color TVs but we also pioneered the development digital TV systems and CD applications. While in Europe and Asia, Philips has made its mark as the largest manufacturer of VCRs.

Our range of sight and sound products is among the worlds best. From TVs to VCRs, mini-compos, to CD players, VCDs to DVDs, there’s a cutting edge technology in each of them. Philips also pioneered the flat TV concept and the solid-state digital audio player.

 

Locally, Philips consumer electronics’ products are sold through the big retail companies and hypermarkets and offer compatible prices. In a recent GFK report, Philips was ranked number one for DVD and Flat TV. 

 

Consumer Lifestyle

Philips DAP & Personal Care

 

Philips Domestic Appliances and Personal Care (DAP) is engaged in the development, manufacture and marketing of innovative domestic and lifestyle appliances in more than 60 countries. The division employs some 8,200 people globally.

 

Renowned for its electronics technology, Philips is the only non-Asian supplier that covers all major domestic and personal care appliances for the Asian markets. From the electric shaver to blender, hairdryer, iron and a host of domestic and personal care appliances, Philips has put in years of experience, research and development. These products are among the best in the world.  

Philips DAP & Personal Care makes a wide range of products that help people prepare healthy and tasty food and beverages, take care of their homes and garments, and enhance their appearance and sense of well-being.

 

The products are divided into the following categories:

  • Shaving & beauty
  • Consumer healthcare & wellness
  • Home environment care
  • Oral health care
  • Food & beverage

 

Philips vision for the local market is the ability to offer every Malaysians the best choice in electrical home and personal care improvement appliances via our global product’s portfolio.

 

Locally, Philips DAP products are distributed through key customers nationwide and they include Courts, Parkson, HSL to name a few.

 

 

Modern Retail Lighting

 

Modern retail lighting is a sales channel targeted at home users. Modern retail accounts are multi-city, national, regional or global retailers with multiple outlets in the country. These retailer normally prefer single point of contact with manufacturer or distributor when working with both HQ and outlets. Its main objective is to establish an optimum distribution structure that ensures superior Philips Lighting product availability in Modern Retail channel, through direct influence on distributor and/or Modern Retail customers; capitalizing on the unique characters of each Modern Retails segment to reach home users in Malaysia

The range of products offer through Modern retail channel are home lighting products. Energy Saving Bulbs, Incandescent bulbs, Halogen, Fluorescent tubes and now we are introducing LED and table lamps into the market. Lighting is found in Carrefour (exclusive Philips), Giant, Tesco, Ace Harware, Jusco amongst other outlets.

Philips & Sustainability

Sustainability offers a world of opportunities. At Philips, we believe the way to explore these opportunities is by embedding sustainability throughout the organization, ensuring that it is an integral part of our strategic thinking and acting.

 

We put people at the center of all our offerings, dealings and contact. This means that all our activities must be driven by insights into how customers and consumers experience the benefits of technology. We create the kind of work environment that helps our employees around the world reach their full potential. Through our social investments we are continuing the tradition of supporting the communities where we live and work and also to give something back to the society that we operate in.

 

i. Tadika Philips in Batu Arang & Kuala Kangsar

 

Philips is totally committed to caring and sharing with the society. Its philosophy of caring for the underprivileged found ideal expression in building and operating kindergartens for needy children. A corporation that understands that education is the best foundation anyone can own for a brighter future, Philips started its kindergarten program in 1995 in Batu Arang and in 1997 in Kuala Kangsar. The kindergarten in Kuala Kangsar is funded from a public fund we raised in 1997 whereas the kindergarten in Batu Arang is solely financed by Philips.

 

Both kindergartens are open to children from families earning less than RM750 a month. Here the children are given free books, school attires and one free meal a day. A qualified teacher is recruited by Philips and is responsible for tutoring the children.

 

ii.  Philips CeTree Energy Efficient Mobile Showhome

 

The first Philips-Cetree Energy Efficient Mobile Showhome, a vehicle that is designed to educate people, especially those in rural areas on renewable energy and energy efficiency. Believe it or not, the engine is designed to run on 100% palm oil.

 

The uniquely-designed Philips-Cetree Energy Efficient Mobile Showhome contains five knowledge kiosks – General Knowledge on Renewable Energy, Energy Efficient Electrical Equipment, Solar Thermal, Solar Electric and Biomass – comprising of simple activities that give practical experience.

 

Philips is a multinational corporation that takes its social responsibility to the local community very seriously and we look for platforms which are meaningful and sustainable. We believe in simple technologies to help people save energy and money at the same time. This is the first time we are tying up with Cetree to present this Mobile Showhome project, and we hope that people in rural areas will see the benefits – both environmental and economical – of using renewable energy sources.

 

With the demand for electricity growing faster than the country’s economy, ways have to be found to conserve energy. The Mobile Showhome acts as an ambassador by showcasing renewable energy sources and tips on how to save energy in our daily lives. The mobile exhibition unit even has its own solar energy system.

 

Philips research showed that if every household in Malaysia each replaced 60W incandescent lamps with three 11W CFLs, this would lead to energy savings of close to 1.5billion kWhrs. Given that Malaysia has 5.5 million households, it would mean almost RM400 million in savings per year.

 

The Philips-Cetree Energy Efficient Mobile Showhome will be traveling to various locations including Batu Arang and Kampung Senggang over the next few months. At the roadshows, participants will be able to experience various renewable energy sources firsthand, and hear and see how simple changes can help save energy. Some of the roadshow locations include Jitra (Kedah); Kampung Parit Medan in Muar (Johor); Kampung Guar Ipoh in Tanah Merah (Kelantan) and Felda Cheneh in Kemaman (Terengganu).

 

 

Philips Corporate Office:

Level 9, Menara Axis,

2 Jalan 51A/223, 46100 Petaling Jaya

Tel: 603-7965 7760

Fax: 603-7965 4428

Chairman & CEO, Philips Group of Companies, Malaysia: Mr. Lee Weng Seong

Corporate Communications and Sustainability: Christina Celestine