In 2008 we started a journey with the creation of a new Consumer Lifestyle business - the combination of our Consumer Electronics and Small Domestic Appliance divisions. This move created a stronger, more retail-focused business, whilst at the same time giving us a unique brand proposition that touches multiple aspects of a consumer's daily life, from waking up with Philips Sonicare Toothbrushes to winding down with Cinematic Flat TV's.

Despite a tough climate, many of our categories performed well in 2008. For example, our Oral Healthcare, TV Accessories, Kitchen Appliance, Shaving, and Avent Mother & Childcare businesses remain buoyant.  However, more aggressively competitive markets, like Flat TV, require a different focus. In a market characterised by dramatic price erosion, our 2009/10 strategy is to secure long-term profitable growth through product and market differentiation. Creating value, supported by retail partners that share our vision, will be critical in the years ahead.