The disengagement process requires so many years

After having formalized, last Thursday, the sale of 80.1 of its activities in the semiconductors to a consortium of investors led by KKR, Philips now intends to focus its efforts on four strategic activities: the medical, consumer electronics, lighting, small electrical household appliances and care to the person. Its CEO, Gerard Kleisterlee, confirms the ambition of the Group of rapid progress in these areas, including in medical facilities, where it recognizes study new external growth opportunities. For him, the disengagement of semiconductors will allow the group to be less vulnerable to the vagaries of conditions in this industry. He also confirmed the proposed disengagement from its holdings in LG.Philips LCD and TSMC.

A few months ago, you had mentioned the possibility of a sale or placing in a stock of the activities of Philips in semiconductors. Why have preferred the first option over the second

The sale to a consortium of investors allows defeat us only once and at a good price in addition 80 of our activities in this area. An introduction on the stock exchange is still subject to the conditions of the market, are difficult to anticipate which generally allows to absorb in a first time that 15 to 20 of the capital. The disengagement process requires so many years.

Philips retains a 19.9 interest in this activity. How do you envisage the future evolution of this participation

We have no concrete plan on what we are going to make this participation. Our semiconductor business has a number of clients who are and will be Philips long term customers. We want to ensure the latter, and our employees that we took the right decision and that we retain a presence effective in this activity, even if it is minority. It was a controlled transition. If it is clear that we will not remain shareholder of the new company in the long term, we have no plan of total surrender immediately.

After heavy losses, Philips Semiconductor activities had resumed with the profits and the growth in the past several quarters. Was it really impossible to keep within the Group

This is not a question of good or poor performance. Even with the best performance, there have always been a problem to some investors that display a large appetite for technology sectors. With the risk and volatility inherent hazards that. There are other types of investors, who are looking for industrial companies in more stable areas. Sectors such as medical, lighting, consumer electronics and home appliances constituting of the elements of our portfolio, combined to a volatile technology sector, were not the Group proposal sufficiently attractive for a specific category of investors.

In the medical sector, Philips made several acquisitions in recent months. Are you considering new operations of external growth in the short term

Our ambition is to grow rapidly in this sector, both by internal growth through acquisitions. We are all external growth opportunities in this context, be it in terms of size or activity.

Philips has a 33 stake in LG.Philips LCD and still also holds 16.4 of the Taiwanese company TSMC. Are you considering a reduction in or an assignment of these entries

We have never hidden our intention to reduce our stake in LG.Philips LCD because, yet again, it's an industry attracting different investors of Philips types, and which is part of the volatile industries. Therefore, we will reduce our participation in a gradual and responsible manner, based on market conditions. With TSMC, the answer is the same for the same reasons, even if the evolution of the results of TSMC does not large fluctuations in our accounts.

The objectives of growth of the Group were revised following the announcement of the semiconductor

Over the next few years, we still expect organic of the order of 5 to 6 growth per year on average. We have also indicated to analysts our ambitions in terms of results by activities. These objectives have not changed after the announcement of our agreement with the consortium.