• Value creation

Key observations:

After concisely describing the organizational Business System and the four interlocking elements that it comprises (group strategy, CAP (core capabilities, assets and positions), excellence and path to value) (p. 12), the Report clearly presents how Philips creates value (p. 13). The six capitals are briefly described, each having its own icon. A diagram then connects the capitals, in the form of inputs and outcomes, to the Business System, thus explicitly identifying which are the key elements of the business model (4.13 of the International <IR> Framework). For each capital, qualitative and quantitative indicators are adopted to explain how they have been transformed in order to create value (4.11 of the International <IR> Framework).