X hits on this document





8 / 24


Apr. 14. 2008 / 4:00AM, PHG - Q1 2008 Royal Philips Electronics Earnings Conference Call

Pierre-Jean Sivignon - Royal Philips Electronics - CFO

Right, yes, I think it's a very valid question. If you -- you can't quite do that, well you can do it to some extent, because we've given you all the elements to do that. If you actually, because you have a disclosure of CD now and you have very clearly, in terms of revenue as well as in terms of EBITA and we've been quite clear about the drop in license income, so you can make that calculation actually.

If you make those math, you will find that the rest of the portfolio has grown about 3%. And that's all across the ex-DAP, ex-Consumer Electronics, non-Connected Display parameter. And obviously this compare to Q2 last year, which was, as you probably remember, extremely robust. So that's the answer in terms of growth.

In terms of geographic mix, I would say that strong in emerging market, robust in Europe, and in North America hybrid, you saw some upside on Shaving. Shaving was actually up in North America. Other categories maybe being a touch down. So that's pretty much the way to look at it.

If you want to get even more flavor, we add away from geography and focusing now on the particular business units, we had a, and I think that's in the press release, very strong, or continued very strong Appliance business, double-digit growth there. The other one which did well was Shaving and Beauty, which basically there was in solid single-digit growth, to give you a flavor of -- and as far as the one with negative beside Connected Display, which I mentioned separately, I think we have the audio portfolio of Consumer Electronics, which was in the somewhat negative -- the video portfolio was in somewhat negative territory. But all in all, 3% growth, strong emerging, robust Europe and mixed picture in the US for the reason I just mentioned.

Janardan Menon - Dresdner Kleinwort - Analyst

Okay, and just a quick follow up, you've raised your margin targets for your Vision 2010 to 10% to 11% and you have also seemed to have raised in some of the divisions, Healthcare, Lighting etc. So I was just wondering how much of the overall margin increase is from the Funai agreement and the results of that. And what else gives you confidence of getting to a higher margin in the next couple of years? Is it because of the acquisitions and the integration benefits you're getting or is that you have more significant cost reduction programs coming up in future year etc?

Pierre-Jean Sivignon - Royal Philips Electronics - CFO

Well I will say first of all, essentially M&A. I think M&A, if you do the math, and you can do the math from what has been disclosed at the time of the announcement of those two acquisition, we assume that those two acquisitions have about 60 basis points of sweetener to the [10%] that we have announced and so that comes on top, right? And now vis-a-vis the [10%], which was the initial guidance, you're right, I think that the Funai deal, as well as the plan that we have announced, which you remember is not only Funai, we've actually announced EUR125 million of measures, which I would say probably about 50% of it is related to Funai.

The rest is the supply chain all across, including very much in Europe, where we need to trim our costs there as well and I believe that those measures, we expect to have a bit more than a year of payback. So certainly those measures and Funai are there to help to indeed update that guidance.

Janardan Menon - Dresdner Kleinwort - Analyst Okay, thank you.


Contact Us


© 2008 Thomson Financial. Republished with permission. No part of this publication may be reproduced or transmitted in any form or by any means without the prior written consent of Thomson Financial.

Document info
Document views38
Page views38
Page last viewedWed Oct 26 14:08:49 UTC 2016