Global scale in manufacturing and sales in its three main business segments. Leading market shares supported by a track record of product innovation, notably in high-tech healthcare equipment and LED. Broad product range, diversity of business and customer end markets. Operating performance in lighting constrained due to structural industry changes and intense competition. Volatile group earnings and cash flow, notably due to significant restructuring costs. Low free operating cash flow (FOCF) in 2015, notably due to high pension contributions, rebounding to over €1 billion in 2016-2017. Debt leverage should peak in 2015 but decrease to about 2.0x in 2016, assuming disposal of the Lumileds business. Well-diversified debt structure, although 30% of the debt is due within the next 12 months.
