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Philips Consumer Lifestyle Drachten More than 60 years at the forefront of innovation and production!

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Philips Consumer Lifestyle DrachtenMore than 60 years at the forefront of innovation and production!

2 Philips Consumer Lifestyle Drachten

ContentsRoyal Philips Electronics NV 4

Philips Consumer Lifestyle 7

Philips Consumer Lifestyle Drachten 8

- High Impact Innovation Center 10

- Innovation Domestic Appliances 12

- Innovation Personal Care 14

- Shaver production 16

Are you going to be part of our next success? 18

3Philips Consumer Lifestyle Drachten

4

Philips Consumer Lifestyle Drachten is part of Royal Philips Electronics NV, one of

the largest companies in the field of health, lifestyle and technology worldwide. As a

consumer-centric and market-oriented organization, we develop meaningful products

that improve people’s health and wellbeing. With our products, we want to contribute to

a healthy and comfortable life for consumers. By health we do not just mean the medical

aspects of health: staying fit, healthy food and a healthy lifestyle are just as important.

Sustainability and corporate social responsibility are also high up on our list of priorities.

Royal Philips Electronics NV A consumer-centric and marketing-oriented organization focused on health and wellbeing

4 Philips Consumer Lifestyle Drachten

Investment in innovation and design

Philips belongs to the top 50 of global brands. It has leading

positions in many markets in the fields of health, consumer

lifestyle and lighting. Well over 50,000 registered patents,

36,000 registered trade marketing and 63,000 design

rights illustrate the company’s innovative nature. To ensure

that we keep this leading position in the market, we will

continue to offer people meaningful innovations and will

continue to make substantial investments in development.

Sectors

Philips employs well over 119,000 people worldwide.

Its head office is located in Amsterdam. With health and

wellbeing as the company’s spearheads, Philips supplies

the professional and consumer markets with products

from three overlapping sectors: Healthcare, Lighting

and Consumer Lifestyle. Philips Drachten is part of the

Consumer Lifestyle sector.

Our brand promise: sense and simplicityIn a world where complexity increasingly touches every aspect of our daily lives,

we will lead in bringing sense and simplicity to people by providing innovative

solutions that are advanced, easy to use, and designed around the needs of all

our users.

Sense and simplicity is our brand promise and inspires us in everything we do. It

inspires us to:

• Develop meaningful solutions that meet the needs and wishes of consumers.

• Use the latest insights and technologies to offer a better solution.

• Create solutions that are user friendly as well as advanced.

5Philips Consumer Lifestyle Drachten

All Philips products go through an EcoDesign process in which the consequences for the environment

are considered in terms of energy consumption, hazardous substances, recycling, weight and lifetime.

Philips’ environment-related procedures are audited by an independent party every year and the results

are laid down in the annual sustainability report. Philips also stimulates education programs aimed at

energy saving solutions. The company also strives to provide better healthcare at lower costs all over

the world, including in such emerging markets as China and India.

SustainabilitySustainability is a key focus at Philips. We aim to minimize our ecological footprint, and

this does not only apply to our products, production and purchasing, but also to our

processes and the communities in which we operate. We use our expertise to simplify

complex worldwide issues, such as the growing need for greater efficiency in energy

consumption and healthcare, by developing sustainable solutions for consumers and

professional users in all markets.

6 Philips Consumer Lifestyle Drachten

Products that bring comfort to people’s livesPhilips Consumer Lifestyle wants to improve the quality of people’s lives through the

timely introduction of meaningful innovative lifestyle products. We achieve this, for

instance, by:

• Having intensive contacts with end users to gain profound insights into the needs

and wishes of consumers.

• Translating these insights into innovations through the collaboration between

different disciplines.

• Learning fast and limiting costs by determining the added value in the early stages

of the development process.

• Playing a leading role in ‘Open Innovation’ by working closely together with partners

inside and outside Philips.

Philips Consumer Lifestyle

7Philips Consumer Lifestyle Drachten

More than 60 years at the forefront of innovation and production Philips Drachten is part of the Consumer Lifestyle (CL) sector. With more than 2000 employees

with 35 different nationalities, Philips CL Drachten is one of CL’s largest development and production

centers in Europe. We develop many innovative, consumer-oriented products that make life more

comfortable for the global market. These products include coffeemakers, vacuum cleaners, hot air

fryers and energy lamps. Philips CL Drachten has also been the development and production center

for Philips shavers since 1950. Here we manufacture the most sophisticated Philips electric shavers.

Philips Consumer Lifestyle Drachten

Millions of people across the world use our products every day.

The reason for this success: our ambition to make high-quality

products that excite people and that are among the best in their

class. We fulfill this ambition by collaborating in multidisciplinary

teams that are consumer-oriented, open-minded towards the

outside world, constantly looking for improvements, and prepared

to go the extra mile every day.

Continuous innovation

Innovation is the common theme in our business processes.

We are continuously working on new, innovative products and

the improvement of our processes. We do this together with

suppliers and knowledge centers.

8 Philips Consumer Lifestyle Drachten

Examples of these innovative products are the

Wake-up Light which enables people to wake up

more pleasantly, the SENSEO® coffee machine which

offers a path-breaking new way of enjoying one cup

of delicious coffee, the SensoTouch 3D which is our

best shaver ever, and the airfryer which uses the highly

innovative ‘Rapid Air Technology’ to prepare delicious

snacks without oil.

Our organization

The organization of Philips CL Drachten

comprises the following parts:

• High Impact Innovation Center

• Innovation Domestic Appliances

• Innovation Personal Care

• Shavers production

• Supporting services, such as IT

Despite the great diversity of activities, we present ourselves as

one site. The 1Dracht& program plays an essential role in this: it

is the major starting point in all our activities. With 1Dracht&, we

strengthen the synergy between various groups and functions.

This has big advantages, as close collaboration allows us to make

optimal use of each other’s knowledge and skills. The 1Dracht&

program also extends the career opportunities for employees.

Because so many different activities take place on our site,

employees can easily make a career step by transferring to another

job or product group on the same site. This enables them to gain

valuable experience and to develop themselves. This makes Philips

CL Drachten a highly dynamic and challenging work environment.

Warm welcome

We develop our products in close collaboration with Consumer Marketing and Design. Philips CL Drachten also contributes to sales

promotion and the opening up of new markets. We do this first of all by producing high-quality products and delivering them very fast.

We regularly receive managers and representatives from sales organizations and chain stores on our site. Our site is also regularly visited

by government officials, politicians and journalists. All guests can count on a warm welcome from an enthusiastic team that gives fascinating

presentations and offers interesting tours.

9Philips Consumer Lifestyle Drachten

High Impact Innovation Center: Development of path-breaking pioneering technologies

Philips Consumer Lifestyle’s technological know-how is largely concentrated in Drachten,

for instance in the High Impact Innovation Center (HIIC in short). HIIC is the ‘laboratory for

future Consumer Lifestyle products’. This innovation center is at the basis of many high-tech

innovations that have to lead to new, meaningful products for consumers.

Philips Consumer Lifestyle Drachten

10 Philips Consumer Lifestyle Drachten

HIIC

Well over one hundred highly educated engineers and

specialists work intensely on the predevelopment of new

advanced technological solutions. They are closely involved

in function and product development. The HIIC experts

have an academic degree in a relevant subject from a

research university or a bachelor’s degree from a university

of applied sciences and are specialized in such disciplines as

metal forming, plastics, decoration, electronics and applied

chemistry. They closely follow all major technological

developments that may be important to Philips CL. This

keeps Philips CL always at the forefront of innovation.

Open Innovation

Using the ‘Open Innovation’ principle as its starting point,

HIIC collaborates closely with other leading sectors,

commercial partners and suppliers. Research universities,

universities of applied sciences, engineering agencies

and scientific research centers inside and outside the

Netherlands are also part of the open innovation

network. As Philips Consumer Lifestyle’s research center,

HICC is like a spider in a web. Thanks to the exchange of

knowledge and the close collaboration with partners,

HIIC is able to come up with trailblazing innovations.

11Philips Consumer Lifestyle Drachten

Domestic appliances of the futureHow will we vacuum clean our home five years from now?

What will be the successor of the SENSEO® coffee machine?

What innovative and affordable appliance to purify water and

air will be required, not only in the West but also in the rest

of the world?

Innovation Domestic Appliances (IDA) is looking for answers

to these and many other questions. IDA is an innovative think-

tank responsible for the function and product development of

small domestic appliances.

Philips Consumer Lifestyle Drachten

Innovation Domestic Appliances

12 Philips Consumer Lifestyle Drachten

Innovations that IDA came up with include the airfryer

equipped with the path-breaking ‘Rapid Air Technology’,

Senseo® and espresso machines, vacuum cleaners,

water purifiers, air cleaners, and the Perfect Draft home

draft beer dispenser. The specialists at IDA also develop

numerous other household appliances, such as electric

kettles, toasters, irons, deep fryers. Approximately 120

employees work on function and product development,

product research, testing and verification, lifecycle support,

and quality.

Strong together

‘Open Innovation’ is also the guiding principle at IDA.

The development engineers collaborate intensely with

internal and external partners, such as HIIC, Innovation

Centers in Asia, SaraLee (Douwe Egberts), suppliers, and

scientific institutes.

Supply

IDA manages a supply chain with over 20 production and

supply centers all over the world. The two most important

production centers are in Poland and China. Supply

consists of Supply Management, Purchasing, New Product

Introduction (NPI) and the Model Shop.

13Philips Consumer Lifestyle Drachten

Innovation Personal CareMale Grooming and Vitalight

Innovation Personal Care develops the new generation of Male Grooming products

(shavers, trimmers and body groomers) and Vitalight products (energizing light products).

Each innovation needs to hit the bull’s eye. Innovative products also call for fast execution.

The time between idea and realization has to be as short as possible to stay ahead of

the competition.

Philips Consumer Lifestyle Drachten

Philips Shavers: wet and dry electric shaving

Every day, millions of men all over the world use an

electric shaver. There is every chance that they are using

a Philips shaver. Together with its sister factory in the

Chinese city of Zhuhai, Philips CL Drachten is one of the

largest and most modern electric shaver manufacturers

in the world. All Philips shavers are developed in

Drachten. All over the world Philips shavers are known

for their perfect shaving sensation. Philips has been

manufacturing shavers since 1939, and has been the

market leader in electric shaving since the 1960s.

Philips has a market share of more than 50%. We would

like to maintain this position. That is why we closely

track consumer wishes and continue our search for

ever more perfection with ‘cutting edge technology’.

Our products keep up with time and each new

generation is a response to changes in consumer wishes.

We want to exceed these wishes by offering even

better performance, more comfort, modern designs

and plenty of options.

14 Philips Consumer Lifestyle Drachten

Close to the skin

What do consumers experience?

With Male Grooming appliances we come very close to the skin of consumers. Safety,

comfort and performance come first during development. All products are extensively

tested in our Product Research Center. The effects on skin and hair are checked with

highly sensitive instruments. We establish how the shaving performance can be further

improved and how consumers experience our products. The test results help us to

continuously improve our products and adjust them even better to consumers’ wishes.

Vitalight - for a comfortable life

Relaxation, vitality, pain reduction and making life more pleasant: those are

the key concepts for Vitalight. In Drachten, the department develops and

tests a wide variety of products, ranging from the Wake-up Light to the

Energy Light and InfraCare.

Vitalight’ products bring sunshine into people’s homes. The Wake-up Light

allows people to wake up naturally by imitating a sunrise. This results in a

more pleasant waking-up experience. Other well-known top products of

Vitalight are the InfraCare infrared lamps and the Energy Light, which uses

light to give more energy during the dark winter months.

Beard trimmers, hair clippers, and body groomers

Men increasingly feel a need to express themselves

through styling. Instead of seeing shaving and

grooming as a necessary evil, they regard it as a

form of self-expression. Shaving and styling are

often combined: for instance by wearing a macho

stubble beard during the weekend, while sporting a

closely shaven face during the week. Men feel freer

and more inclined to express themselves through

their appearance. Philips wants to provide them

with the right products to do so!

Whether they want a smoothly groomed face,

a clear-cut hairline or total hair removal: the

grooming products developed in Drachten

cater to all consumer wishes. Developers

keep a close eye on consumers and

their wishes. This enables them to

create advanced and easy-to-use

products that comply with the

latest trends.

15Philips Consumer Lifestyle Drachten

Shaver productionWorld-class production center

Flexible production process

In 1950, Philips founded a factory for the production

of electric shavers in Drachten. There have been lots of

developments since then. Manual work has largely made

way for mechanized and even fully automated production

methods. This helped us keep our costs down and stay

competitive. Big challenges like these are just our thing.

The shaving heads and shavers developed and manufactured in Drachten have been

successfully distributed and sold all over the world for many years. Our development

and production processes are characterized by great flexibility, high quality, continuous

improvement and the lowest possible costs. Our employees work as one close-knit team

that continuously goes the extra mile to deliver top performance at world-class level.

Philips Consumer Lifestyle Drachten

16 Philips Consumer Lifestyle Drachten

High standards

A shaver consists of various parts that are nearly all made in house,

such as shaving heads, trimmers, plastic parts and power supplies.

Next these parts are combined with the greatest possible precision

to create complete, high-quality shavers. Our production processes

have been arranged in a way that ensures the delivery of perfect

quality. Only shavers that meet the highest standards will be released

for delivery to our customers.

Innovative production techniques

Developing an innovative product is one thing, but mass producing

such a product is a different story. Philips CL Drachten has the

expertise to ensure that its production processes run smoothly.

To achieve this, we use the latest technologies in the fields of

electrochemical processing, metallurgy, robotized production

processes, insert molding, and decoration. The production process

is supported from start to finish by modern logistic management

technology.

High speed

Our production process is very fast. When we receive an

order from one of our sales organizations or a large chain

store, we can produce and deliver the requested shavers

within a few days!

Simply Philips

The entire production process is geared towards maximum

performance and minimum waste of raw materials, time and energy.

Small intermediate stocks, thorough quality checks and automated

production systems guarantee high-quality output. Each employee

contributes to the continuous improvement of our processes.

Care for people and environment

During the production of our shavers, we pay close attention to the

environmental impact of our processes and the working conditions

for our employees. Our site meets all occupational health, safety and

environment standards. Safety, health, energy efficiency, recycling and

waste control are at the top of our list. Water and air are cleaned

with modern purification plants to prevent pollution and odor

nuisance. Philips takes its responsibility on this point, and even goes

a little further than is required by law. Care for people and the

environment are also part of being a world-class production center!

17Philips Consumer Lifestyle Drachten

We offer employees a challenging environment in which they have plenty of opportunities

to develop themselves and to make use of their talents. We value our people because

they are the basis for our success. Their initiatives and efforts enable us to exceed

consumer expectations.

Thanks to its size and versatility, Philips CL Drachten can offer excellent internal

training and career opportunities. We also regularly offer research and work

experience internships.

Are you going to be part of our next success?

18 Philips Consumer Lifestyle Drachten

Interested?Would you like to work in a dynamic,

international high-tech organization and

contribute to the development, testing and

production of top products that are sold all

over the world? Go to www.philips.com/careers

to apply for a job.

19Philips Consumer Lifestyle Drachten

July

2011

Philips Consumer Lifestyle Oliemolenstraat 5 9203 ZN Drachten

Postbus 20100 9200 CA Drachten

Tel. +31 512 59 91 11Fax +31 512 53 13 25

www.philips.com [email protected]