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Squaretable


October 4th 2012
Agenda


Time            Programme


13:45 – 14:15   Welcome
14:15 – 14.30   Introduction Squarewise
14:30 – 14:45   Opening Squaretable
                “Co-creating added value for Sustainable Materials and End Products”
14:45 – 15:45   Key note - Nestor Coronado Palma, Philips Consumer Lifestyle, Sustainability Director
                “Sustainovation, closing the loop”
15:45 – 16:00   Break
16:00 – 16:30   Roland Teixeira, GE Benelux, Executive
                “Ecomagination”
16:30 – 17:30   Plenary discussion
17:30 – 17:45   Closing remarks and round-up
17:45 – open    Walking dinner and drinks




                                            2
Agenda


Time            Programme


13:45 – 14:15   Welcome
14:15 – 14.30   Introduction Squarewise
14:30 – 14:45   Opening Squaretable
                “Co-creating added value for Sustainable Materials and End Products”
14:45 – 15:45   Key note - Nestor Coronado Palma, Philips Consumer Lifestyle, Sustainability Director
                “Sustainovation, closing the loop”
15:45 – 16:00   Break
16:00 – 16:30   Roland Teixeira, GE Benelux, Executive
                “Ecomagination”
16:30 – 17:30   Plenary discussion
17:30 – 17:45   Closing remarks and round-up
17:45 – open    Walking dinner and drinks




                                            3
Squarewise approach to Strategy and Organizational development

            Internal target setting                                  Internal and External target setting


                                                          Structurally envision your
                                                         future and capture current
                                                                opportunities

                                                               Real-time strategy                       Reposition the
                                Redesign                         development                           organization as a
Excel in core                processes and                                                                network of
 activities                 focus on bottom                                                             supportive and
                                  line                      Structurally develop                         competitive
                                                        organizational capabilities to                     players
                                                         communicate and mobilize
                                                                in networks

                                                           Controlled experiments


                Market leader
                e.g in cutting            Operational                               Innovative organization
                     edge                 excellence
                 technology



                                                           4
Agenda


Time            Programme


13:45 – 14:15   Welcome
14:15 – 14.30   Introduction Squarewise
14:30 – 14:45   Opening Squaretable
                “Co-creating added value for Sustainable Materials and End Products”
14:45 – 15:45   Key note - Nestor Coronado Palma, Philips Consumer Lifestyle, Sustainability Director
                “Sustainovation, closing the loop”
15:45 – 16:00   Break
16:00 – 16:30   Roland Teixeira, GE Benelux, Executive
                “Ecomagination”
16:30 – 17:30   Plenary discussion
17:30 – 17:45   Closing remarks and round-up
17:45 – open    Walking dinner and drinks




                                            5
New Normal
“Co-creating Added Value for Sustainable Materials and End-Products from a value chain perspective”




 Cross value chain collaboration to accelerate necessary development of sustainable products
Co-creating Added Value
 “Aligning Technology Push and Market Pull”




Sustainable                                                                   Consumer
Materials, Products and Solutions                   Demand, Perception and Requirements




                                    Technology   Market
                                       Push       Pull
Broad Innovation Perspective for Sustainable Development
        “Open Innovation is not just another way of doing R&D, but another way of doing business”

 1. Business model                                                   5. Product performance
 How the enterprise makes money                                      Basic features, performance and functionality

                 2. Networking                                                          6. Product system
                 Enterprise’s structure / value chain                                   Extended system that surrounds an offering

                                                                                                     7. Service
                                                                                                     How you service your customers



Finance                          Process                           Offering                                        Delivery

Business        Networking       Enabling         Core Process     Product     Product              Service        Channel        Brand        Customer
Models                           Process                           Performance System                                                          Experience




                                                                                    8. Channel
                                                                                    How you connect your offerings to customers

                 3. Enabling process                                                        9. Brand
                 Assembled capabilities                                                     How you express your offering’s benefit to customers

                               4. Core processes                                                     10. Customer experience
                               Proprietary processes that add value                                  How you create an overall experience for customers
                                                                                    8
Source: Doblin Ten Types of Innovation. http://www.doblin.com/thinking/#ten-types
Value Chain Collaboration
       “It’s all about stakeholder engagement”




  Consumers         Customers             Suppliers        Employees           Local            Owners &            Public and
                                                                            Communities          Investors          Regulatory
                                                                                              (shareholders)         Agencies

    Understand        Develop             co-improve         Two-way       Co-develop local   Ongoing Dialogue;     Demonstrate
requirements; co-   partnerships       performance; new   communication;     business (bio       innovative       transparency; co-
 create materials                       supply-models        (process)     based economy);        financing       create regulatory
   and products                                             ownership         operational        structures       level playing field
                                                                             transparency




                                   Translate to business actions – define collaboration mode(s)


                                             Decision making on material issues
Agenda


Time            Programme


13:45 – 14:15   Welcome
14:15 – 14.30   Introduction Squarewise
14:30 – 14:45   Opening Squaretable
                “Co-creating added value for Sustainable Materials and End Products”
14:45 – 15:45   Key note - Nestor Coronado Palma, Philips Consumer Lifestyle, Sustainability Director
                “Sustainovation, closing the loop”
15:45 – 16:00   Break
16:00 – 16:30   Roland Teixeira, GE Benelux, Executive
                “Ecomagination”
16:30 – 17:30   Plenary discussion
17:30 – 17:45   Closing remarks and round-up
17:45 – open    Walking dinner and drinks




                                            10
Sustainovation
Closing the loop


Néstor Coronado Palma
Director Sustainability
October 2012
Agenda

• Who is Philips?

• EcoVision 5 targets

• From Theory to Practice

   – Senseo Viva Café Eco

• Movie

• PR Campaign




                        Néstor Coronado Palma, Director Sustainability, October 2012   12
A strong diversified industrial group leading in
health and well-being
Who we are                                                 Our businesses                                               Our mission
  Founded in 1891
  Headquartered in Amsterdam,
                                                                                                                               “…a global company
  Netherlands                                                                                                                  of leading
                                                                       26%                                                     businesses creating
  Sales of €22.3 billion in 2010              1
                                                                                                      39%                      value with
  Growth Markets                                                                  2010                                         meaningful
  32% of 2010 sales generated in                                                                                               innovations that
  growth markets
                                                                                                                               improve people’s
  Globally recognized brand                                                 35%                                                health and well-
  (world top 50)                                                                                                               being.”
  Our brand value doubled to
  $8.7bn since 20042
                                                                             Healthcare
  120,000 employees
                                                                             Lighting
  Sales and service outlets in over
  100 countries
                                                                             Consumer Lifestyle

  €1.5 billion investment in R&D,
  7% of sales
                                                         Néstor Coronado Palma, Director Sustainability, October 2012                                13
1Note                                                                                                                   2
        - All figures from the year 2010 onwards exclude Television as it is treated as discontinued operation              Source: Interbrand
EcoVision 5 Targets
 Improving people’s health & well-being, while respecting the limits of natural resources

                                                                                                        Ecological footprint
      1      Bringing care to the lives of people
             Target: 500 million lives touched in 2015


      2      Improving Energy efficiency of Philips products
             Target: 50% improvement in 2015 (average of total portfolio)
                                                                                                                 2
       3 Closing the material loop                                                                               3




                                                                                                                 DOWN
             Target: Double global collection & recycling amounts and
             recycled materials in products in 2015




 Human
 Development
 Index*                                                                    1 UP

        14

                            *HDI = life expectancy + education level + purchasing power (see back-up slide)
Source: WWF Living Planet Report 2006    Néstor Coronado Palma, Director Sustainability, October 2012                          14
From Theory to Practice
In 2008, Philips CL started applying Cradle-to-Cradle principles (C2C) to
engage on sustainable innovation and launched already in 2009 its first
commercial product (EnergyCare vacuum cleaner), …




... and in 2011 Philips delivered to the market some of the best ever eco-
designed products that have led to improved business practices and new
business opportunities.
                         Néstor Coronado Palma, Director Sustainability, October 2012   15
Senseo Viva Café Eco




              Néstor Coronado Palma, Director Sustainability, October 2012   16
Néstor Coronado Palma, Director Sustainability, October 2012   17
Our results: SENSEO Viva Café Eco
                                • Made of up to 50%* recycled plastics.

                                •All outer (visual) plastic parts are made of 100% recycled
                                materials.

                                •5 minute auto shut off for energy saving (as opposed to 60 min
                                for other SENSEO products.

                                •Sustainable packaging (at least 90% recycled cardboard will be
                                used).

                                * Excluding plastic parts that require food approvals (water
                                container and coffee outlet)




                                                                                                  • Business partnership with
                                                                                                  Douwe Egberts to offer a
                                                                                                  sustainable proposition
  Recycling &   Energy
                             Packaging                                                            including UTZ certified coffee.
  disposal      efficiency



                                   Néstor Coronado Palma, Director Sustainability, October 2012                                     18
13




                                CD/DVD/extrusion waste




                                Philips WEEE SDA waste


     Recycled stainless steel parts




                                WEEE waste



     Packaging waste

                         Néstor Coronado Palma, Director Sustainability, October 2012   19
“Post consumer                                                                         “Post Industrial recycled
           recycled waste input”                                                                  waste input”




“Consumers, NVMP,
waste disposal, retail”


                                                                                                        “Advanced plastic
                                                                                                        compounding”




                                                                       “Current production”


                                   Néstor Coronado Palma, Director Sustainability, October 2012                               20
Senseo Viva Café movie

YouTube link:
http://www.youtube.com/watch?v=4isgiv7i4iQ




                            Néstor Coronado Palma, Director Sustainability, October 2012   21
Thanks to Partnerships!




               Néstor Coronado Palma, Director Sustainability, October 2012
PR campaign




              Néstor Coronado Palma, Director Sustainability, October 2012   23
Néstor Coronado Palma, Director Sustainability, October 2012
Agenda


Time            Programme


13:45 – 14:15   Welcome
14:15 – 14.30   Introduction Squarewise
14:30 – 14:45   Opening Squaretable
                “Co-creating added value for Sustainable Materials and End Products”
14:45 – 15:45   Key note - Nestor Coronado Palma, Philips Consumer Lifestyle, Sustainability Director
                “Sustainovation, closing the loop”
15:45 – 16:00   Break
16:00 – 16:30   Roland Teixeira, GE Benelux, Executive
                “Ecomagination”
16:30 – 17:30   Plenary discussion
17:30 – 17:45   Closing remarks and round-up
17:45 – open    Walking dinner and drinks




                                            25
Agenda


Time            Programme


13:45 – 14:15   Welcome
14:15 – 14.30   Introduction Squarewise
14:30 – 14:45   Opening Squaretable
                “Co-creating added value for Sustainable Materials and End Products”
14:45 – 15:45   Key note - Nestor Coronado Palma, Philips Consumer Lifestyle, Sustainability Director
                “Sustainovation, closing the loop”
15:45 – 16:00   Break
16:00 – 16:30   Roland Teixeira, GE Benelux, Executive
                “Ecomagination”
16:30 – 17:30   Plenary discussion
17:30 – 17:45   Closing remarks and round-up
17:45 – open    Walking dinner and drinks




                                            26
Agenda


Time            Programme


13:45 – 14:15   Welcome
14:15 – 14.30   Introduction Squarewise
14:30 – 14:45   Opening Squaretable
                “Co-creating added value for Sustainable Materials and End Products”
14:45 – 15:45   Key note - Nestor Coronado Palma, Philips Consumer Lifestyle, Sustainability Director
                “Sustainovation, closing the loop”
15:45 – 16:00   Break
16:00 – 16:30   Roland Teixeira, GE Benelux, Executive
                “Ecomagination”
16:30 – 17:30   Plenary discussion
17:30 – 17:45   Closing remarks and round-up
17:45 – open    Walking dinner and drinks




                                            49
Value Chain Dynamics

                                                                       Operating Ecosystem

                                                     Technology Push             Market Pull

                             Direct Customer


                             End user / retailer
Value Chain Collaboration




                             Multiple Partnerships


                             New Business Models


                             Portfolio Management


                             Blue Oceans
Agenda


Time            Programme


13:45 – 14:15   Welcome
14:15 – 14.30   Introduction Squarewise
14:30 – 14:45   Opening Squaretable
                “Co-creating added value for Sustainable Materials and End Products”
14:45 – 15:45   Key note - Nestor Coronado Palma, Philips Consumer Lifestyle, Sustainability Director
                “Sustainovation, closing the loop”
15:45 – 16:00   Break
16:00 – 16:30   Roland Teixeira, GE Benelux, Executive
                “Ecomagination”
16:30 – 17:30   Plenary discussion
17:30 – 17:45   Closing remarks and round-up
17:45 – open    Walking dinner and drinks




                                            51
Dinner & Drinks

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Squaretable October 4th 2012 on sustainable materials and end products

  • 2. Agenda Time Programme 13:45 – 14:15 Welcome 14:15 – 14.30 Introduction Squarewise 14:30 – 14:45 Opening Squaretable “Co-creating added value for Sustainable Materials and End Products” 14:45 – 15:45 Key note - Nestor Coronado Palma, Philips Consumer Lifestyle, Sustainability Director “Sustainovation, closing the loop” 15:45 – 16:00 Break 16:00 – 16:30 Roland Teixeira, GE Benelux, Executive “Ecomagination” 16:30 – 17:30 Plenary discussion 17:30 – 17:45 Closing remarks and round-up 17:45 – open Walking dinner and drinks 2
  • 3. Agenda Time Programme 13:45 – 14:15 Welcome 14:15 – 14.30 Introduction Squarewise 14:30 – 14:45 Opening Squaretable “Co-creating added value for Sustainable Materials and End Products” 14:45 – 15:45 Key note - Nestor Coronado Palma, Philips Consumer Lifestyle, Sustainability Director “Sustainovation, closing the loop” 15:45 – 16:00 Break 16:00 – 16:30 Roland Teixeira, GE Benelux, Executive “Ecomagination” 16:30 – 17:30 Plenary discussion 17:30 – 17:45 Closing remarks and round-up 17:45 – open Walking dinner and drinks 3
  • 4. Squarewise approach to Strategy and Organizational development Internal target setting Internal and External target setting Structurally envision your future and capture current opportunities Real-time strategy Reposition the Redesign development organization as a Excel in core processes and network of activities focus on bottom supportive and line Structurally develop competitive organizational capabilities to players communicate and mobilize in networks Controlled experiments Market leader e.g in cutting Operational Innovative organization edge excellence technology 4
  • 5. Agenda Time Programme 13:45 – 14:15 Welcome 14:15 – 14.30 Introduction Squarewise 14:30 – 14:45 Opening Squaretable “Co-creating added value for Sustainable Materials and End Products” 14:45 – 15:45 Key note - Nestor Coronado Palma, Philips Consumer Lifestyle, Sustainability Director “Sustainovation, closing the loop” 15:45 – 16:00 Break 16:00 – 16:30 Roland Teixeira, GE Benelux, Executive “Ecomagination” 16:30 – 17:30 Plenary discussion 17:30 – 17:45 Closing remarks and round-up 17:45 – open Walking dinner and drinks 5
  • 6. New Normal “Co-creating Added Value for Sustainable Materials and End-Products from a value chain perspective” Cross value chain collaboration to accelerate necessary development of sustainable products
  • 7. Co-creating Added Value “Aligning Technology Push and Market Pull” Sustainable Consumer Materials, Products and Solutions Demand, Perception and Requirements Technology Market Push Pull
  • 8. Broad Innovation Perspective for Sustainable Development “Open Innovation is not just another way of doing R&D, but another way of doing business” 1. Business model 5. Product performance How the enterprise makes money Basic features, performance and functionality 2. Networking 6. Product system Enterprise’s structure / value chain Extended system that surrounds an offering 7. Service How you service your customers Finance Process Offering Delivery Business Networking Enabling Core Process Product Product Service Channel Brand Customer Models Process Performance System Experience 8. Channel How you connect your offerings to customers 3. Enabling process 9. Brand Assembled capabilities How you express your offering’s benefit to customers 4. Core processes 10. Customer experience Proprietary processes that add value How you create an overall experience for customers 8 Source: Doblin Ten Types of Innovation. http://www.doblin.com/thinking/#ten-types
  • 9. Value Chain Collaboration “It’s all about stakeholder engagement” Consumers Customers Suppliers Employees Local Owners & Public and Communities Investors Regulatory (shareholders) Agencies Understand Develop co-improve Two-way Co-develop local Ongoing Dialogue; Demonstrate requirements; co- partnerships performance; new communication; business (bio innovative transparency; co- create materials supply-models (process) based economy); financing create regulatory and products ownership operational structures level playing field transparency Translate to business actions – define collaboration mode(s) Decision making on material issues
  • 10. Agenda Time Programme 13:45 – 14:15 Welcome 14:15 – 14.30 Introduction Squarewise 14:30 – 14:45 Opening Squaretable “Co-creating added value for Sustainable Materials and End Products” 14:45 – 15:45 Key note - Nestor Coronado Palma, Philips Consumer Lifestyle, Sustainability Director “Sustainovation, closing the loop” 15:45 – 16:00 Break 16:00 – 16:30 Roland Teixeira, GE Benelux, Executive “Ecomagination” 16:30 – 17:30 Plenary discussion 17:30 – 17:45 Closing remarks and round-up 17:45 – open Walking dinner and drinks 10
  • 11. Sustainovation Closing the loop Néstor Coronado Palma Director Sustainability October 2012
  • 12. Agenda • Who is Philips? • EcoVision 5 targets • From Theory to Practice – Senseo Viva Café Eco • Movie • PR Campaign Néstor Coronado Palma, Director Sustainability, October 2012 12
  • 13. A strong diversified industrial group leading in health and well-being Who we are Our businesses Our mission Founded in 1891 Headquartered in Amsterdam, “…a global company Netherlands of leading 26% businesses creating Sales of €22.3 billion in 2010 1 39% value with Growth Markets 2010 meaningful 32% of 2010 sales generated in innovations that growth markets improve people’s Globally recognized brand 35% health and well- (world top 50) being.” Our brand value doubled to $8.7bn since 20042 Healthcare 120,000 employees Lighting Sales and service outlets in over 100 countries Consumer Lifestyle €1.5 billion investment in R&D, 7% of sales Néstor Coronado Palma, Director Sustainability, October 2012 13 1Note 2 - All figures from the year 2010 onwards exclude Television as it is treated as discontinued operation Source: Interbrand
  • 14. EcoVision 5 Targets Improving people’s health & well-being, while respecting the limits of natural resources Ecological footprint 1 Bringing care to the lives of people Target: 500 million lives touched in 2015 2 Improving Energy efficiency of Philips products Target: 50% improvement in 2015 (average of total portfolio) 2 3 Closing the material loop 3 DOWN Target: Double global collection & recycling amounts and recycled materials in products in 2015 Human Development Index* 1 UP 14 *HDI = life expectancy + education level + purchasing power (see back-up slide) Source: WWF Living Planet Report 2006 Néstor Coronado Palma, Director Sustainability, October 2012 14
  • 15. From Theory to Practice In 2008, Philips CL started applying Cradle-to-Cradle principles (C2C) to engage on sustainable innovation and launched already in 2009 its first commercial product (EnergyCare vacuum cleaner), … ... and in 2011 Philips delivered to the market some of the best ever eco- designed products that have led to improved business practices and new business opportunities. Néstor Coronado Palma, Director Sustainability, October 2012 15
  • 16. Senseo Viva Café Eco Néstor Coronado Palma, Director Sustainability, October 2012 16
  • 17. Néstor Coronado Palma, Director Sustainability, October 2012 17
  • 18. Our results: SENSEO Viva Café Eco • Made of up to 50%* recycled plastics. •All outer (visual) plastic parts are made of 100% recycled materials. •5 minute auto shut off for energy saving (as opposed to 60 min for other SENSEO products. •Sustainable packaging (at least 90% recycled cardboard will be used). * Excluding plastic parts that require food approvals (water container and coffee outlet) • Business partnership with Douwe Egberts to offer a sustainable proposition Recycling & Energy Packaging including UTZ certified coffee. disposal efficiency Néstor Coronado Palma, Director Sustainability, October 2012 18
  • 19. 13 CD/DVD/extrusion waste Philips WEEE SDA waste Recycled stainless steel parts WEEE waste Packaging waste Néstor Coronado Palma, Director Sustainability, October 2012 19
  • 20. “Post consumer “Post Industrial recycled recycled waste input” waste input” “Consumers, NVMP, waste disposal, retail” “Advanced plastic compounding” “Current production” Néstor Coronado Palma, Director Sustainability, October 2012 20
  • 21. Senseo Viva Café movie YouTube link: http://www.youtube.com/watch?v=4isgiv7i4iQ Néstor Coronado Palma, Director Sustainability, October 2012 21
  • 22. Thanks to Partnerships! Néstor Coronado Palma, Director Sustainability, October 2012
  • 23. PR campaign Néstor Coronado Palma, Director Sustainability, October 2012 23
  • 24. Néstor Coronado Palma, Director Sustainability, October 2012
  • 25. Agenda Time Programme 13:45 – 14:15 Welcome 14:15 – 14.30 Introduction Squarewise 14:30 – 14:45 Opening Squaretable “Co-creating added value for Sustainable Materials and End Products” 14:45 – 15:45 Key note - Nestor Coronado Palma, Philips Consumer Lifestyle, Sustainability Director “Sustainovation, closing the loop” 15:45 – 16:00 Break 16:00 – 16:30 Roland Teixeira, GE Benelux, Executive “Ecomagination” 16:30 – 17:30 Plenary discussion 17:30 – 17:45 Closing remarks and round-up 17:45 – open Walking dinner and drinks 25
  • 26. Agenda Time Programme 13:45 – 14:15 Welcome 14:15 – 14.30 Introduction Squarewise 14:30 – 14:45 Opening Squaretable “Co-creating added value for Sustainable Materials and End Products” 14:45 – 15:45 Key note - Nestor Coronado Palma, Philips Consumer Lifestyle, Sustainability Director “Sustainovation, closing the loop” 15:45 – 16:00 Break 16:00 – 16:30 Roland Teixeira, GE Benelux, Executive “Ecomagination” 16:30 – 17:30 Plenary discussion 17:30 – 17:45 Closing remarks and round-up 17:45 – open Walking dinner and drinks 26
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  • 49. Agenda Time Programme 13:45 – 14:15 Welcome 14:15 – 14.30 Introduction Squarewise 14:30 – 14:45 Opening Squaretable “Co-creating added value for Sustainable Materials and End Products” 14:45 – 15:45 Key note - Nestor Coronado Palma, Philips Consumer Lifestyle, Sustainability Director “Sustainovation, closing the loop” 15:45 – 16:00 Break 16:00 – 16:30 Roland Teixeira, GE Benelux, Executive “Ecomagination” 16:30 – 17:30 Plenary discussion 17:30 – 17:45 Closing remarks and round-up 17:45 – open Walking dinner and drinks 49
  • 50. Value Chain Dynamics Operating Ecosystem Technology Push Market Pull Direct Customer End user / retailer Value Chain Collaboration Multiple Partnerships New Business Models Portfolio Management Blue Oceans
  • 51. Agenda Time Programme 13:45 – 14:15 Welcome 14:15 – 14.30 Introduction Squarewise 14:30 – 14:45 Opening Squaretable “Co-creating added value for Sustainable Materials and End Products” 14:45 – 15:45 Key note - Nestor Coronado Palma, Philips Consumer Lifestyle, Sustainability Director “Sustainovation, closing the loop” 15:45 – 16:00 Break 16:00 – 16:30 Roland Teixeira, GE Benelux, Executive “Ecomagination” 16:30 – 17:30 Plenary discussion 17:30 – 17:45 Closing remarks and round-up 17:45 – open Walking dinner and drinks 51