Updated to reflect new accounting policy changes and quarterly presentation on Television business reported as discontinued operations.

Transcription

1 Updated reporting Philips Group Updated to reflect new accounting policy changes and quarterly presentation on Television business reported as discontinued operations. all the data included in this report are unaudited financial reporting according to IFRS unless otherwise stated As of 2012, in line with announcement in the Q Press Release, we have implemented the following three accounting policy changes: Warranty costs, currently reported in Selling expenses on the income statement, have been reclassified to Cost of sales. The change follows the rationale that warranty costs are an integral part of the sale of goods and services. Amortization of brand name and customer relationship intangible assets, currently reported in Cost of sales on the income statement, has been reclassified to Selling expenses. This change follows the rationale that the use of brand name and customer relationship intangible assets supports the sales process. The third change relates to the intellectual property (IP) policy change. IP royalties on products sold by a sector were allocated to that sector, with the exception of sector Consumer Lifestyle. At sector Consumer Lifestyle IP royalties on products no longer sold by the sector were allocated to Consumer Lifestyle itself. As of 2012, all IP royalties on products no longer sold by a sector have been allocated to sector Innovation, Group & Services. Quarterly presentation on Television business reported as discontinued operations During 2011 changes in the disentanglement contract of the Television business led to updates in the published figures of the first and second quarterly press releases of These updated financial figures reflect in the quarter comparatives of results and cash flows.

2 Key data by sector in milllions of euros full year Q1 Q2 Q3 Q4 full year Sales Healthcare 8,601 1,971 2,080 2,077 2,724 8,852 Consumer Lifestyle 5,504 1,249 1,247 1,332 1,787 5,615 Lighting 7,552 1,903 1,777 1,886 2,072 7,638 Innovation, Group & Services Philips Group 22,287 5,257 5,216 5,394 6,712 22,579 EBITA Healthcare 1, ,145 Consumer Lifestyle Lighting Innovation, Group & Services 20 (33) (32) (65) (77) (207) Philips Group 2, ,680 EBIT Healthcare (611) Consumer Lifestyle (9) Lighting (470) 86 (130) (362) Innovation, Group & Services 14 (35) (33) (69) (80) (217) Philips Group 2, (1,123) (269) NOC December, 31 April 3, July 3, October 2, December 31, Healthcare 8,908 8,534 7,534 8,081 8,418 Consumer Lifestyle 882 1,476 1,428 1, Lighting 5,561 5,580 5,021 5,238 5,020 Innovation, Group & Services (3,400) (2,936) (2,681) (2,876) (3,895) Philips Group 11,951 12,654 11,302 11,624 10,427 Restructuring and acquisition-related charges full year Q1 Q2 Q3 Q4 full year Healthcare (77) 2 1 (2) (21) (20) Consumer Lifestyle (31) (13) (13) (10) (18) (54) Lighting (97) (5) (14) (11) (36) (66) Innovation, Group & Services (1) (25) (23) Philips Group (203) (15) (24) (24) (100) (163) 2 Updated reporting Philips Group

3 Additional information on the Television business in millions of euros unless otherwise stated full year Q1 Q2 Q3 Q4 full year Television EBITA (125) (106) (68) (69) (84) (327) Former Television net costs allocated to Consumer Lifestyle Former Television net costs allocated to Innovation, Group & Services Eliminated amortization other Television intangibles (5) (1) (1) Deal-related costs (92) (16) (272) (380) EBIT discontinued operations (12) (75) (128) (61) (325) (589) Financial income and expenses (1) (1) (1) (2) Income taxes (13) (16) Net income (loss) of discontinued operations (26) (92) (97) (54) (272) (515) Number of employees (FTEs) 3,610 3,560 3,506 3,636 3,353 3,353 Updated reporting Philips Group 3

4 Consolidated statements of income in millions of euros unless otherwise stated full year Q1 Q2 Q3 Q4 full year Sales 22,287 5,257 5,216 5,394 6,712 22,579 Cost of sales (13,259) (3,145) (3,170) (3,313) (4,217) (13,845) Gross margin 9,028 2,112 2,046 2,081 2,495 8,734 Selling expenses (4,808) (1,207) (1,233) (1,213) (1,594) (5,247) General and administrative expenses (713) (209) (221) (204) (207) (841) Research and development expenses (1,493) (390) (382) (389) (449) (1,610) Impairment of goodwill (1,355) (1,355) Other business income Other business expenses (27) (8) (16) (39) (12) (75) Income from operations 2, (1,123) (269) Financial income (6) 112 Financial expenses (335) (93) (89) (105) (65) (352) Income before taxes 1, (1,197) (509) Income taxes (499) (93) (47) (64) (79) (283) Income after taxes 1, (1,244) (792) Results relating to investments in associates 18 6 (4) Net income (loss) from continuing operations 1, (1,248) (776) Discontinued operations - net of income tax (26) (92) (97) (54) (272) (515) Net income (loss) 1, (1,345) 76 (160) (1,291) Attribution of net income for the period Net income (loss) attributable to shareholders 1, (1,344) 74 (162) (1,295) Net income (loss) attributable to non-controlling interests 6 1 (1) Weighted average number of common shares outstanding (after deduction of treasury shares) during the period (in thousands): - basic 940, , , , , ,647 - diluted 948, , , , , ,130 Net income (loss) attributable to shareholders per common share in euros: - basic (1.39) 0.08 (0.17) (1.36) - diluted (1.39) 0.08 (0.17) (1.36) Ratios Gross margin as a % of sales Selling expenses as a % of sales (21.6) (23.0) (23.6) (22.5) (23.7) (23.2) G&A expenses as a % of sales (3.2) (4.0) (4.2) (3.8) (3.1) (3.7) R&D expenses as a % of sales (6.7) (7.4) (7.3) (7.2) (6.7) (7.1) EBIT 2, (1,123) (269) as a % of sales (21.5) (1.2) EBITA 2, ,680 as a % of sales Updated reporting Philips Group

5 Consolidated balance sheets in millions of euros unless otherwise stated December 31, April 3, July 3, October 2, December 31, Non-current assets: Property, plant and equipment 3,145 2,878 2,866 2,933 3,014 Goodwill 8,035 7,650 6,180 6,580 7,016 Intangible assets excluding goodwill 4,198 3,899 3,796 3,919 3,996 Non-current receivables Investments in associates Other non-current financial assets Deferred tax assets 1,351 1,306 1,304 1,421 1,713 Other non-current assets Total non-current assets 17,552 16,497 14,989 15,758 16,486 Current assets: Inventories 3,865 3,545 3,760 4,074 3,625 Other current financial assets Other current assets Derivative financial assets Income tax receivable Receivables 4,355 3,905 3,850 4,110 4,415 Assets classified as held for sale Cash and cash equivalents 5,833 4,772 3,260 2,339 3,147 Total current assets 14,717 13,480 12,151 11,953 12,480 Total assets 32,269 29,977 27,140 27,711 28,966 Shareholders equity 15,046 14,082 13,086 12,906 12,355 Non-controlling interests Group equity 15,092 14,127 13,116 12,939 12,389 Non-current liabilities: Long-term debt 2,818 2,675 2,703 2,930 3,278 Long-term provisions 1,716 1,702 1,687 1,750 1,880 Deferred tax liabilities Other non-current liabilities 1,714 1,658 1,616 1,631 1,999 Total non-current liabilities 6,419 6,110 6,061 6,415 7,234 Current liabilities: Short-term debt 1,840 1, Derivative financial liabilities Income tax payable Accounts and notes payable 3,691 2,368 2,585 3,193 3,346 Accrued liabilities 2,995 2,439 2,601 2,688 3,026 Short-term provisions Dividend declared 711 Liabilities directly associated with assets held for sale Other current liabilities Total current liabilities 10,758 9,740 7,963 8,357 9,343 Total liabilities and group equity 32,269 29,977 27,140 27,711 28,966 Updated reporting Philips Group 5

6 December 31, April 3, July 3, October 2, December 31, Number of common shares outstanding (after deduction of treasury shares) at the end of period (in thousands) 946, , , , ,095 Ratios Shareholders equity per common share in euros Inventories as a % of sales 1) Net debt : group equity (8):108 (3):103 1:99 8:92 5:95 Net operating capital 11,951 12,654 11,302 11,624 10,427 Employees at end of period 119, , , , ,241 of which discontinued operations 3,610 3,560 3,506 3,636 3,353 1) Excludes discontinued operations for both inventories and sales figures 6 Updated reporting Philips Group

7 Consolidated statements of cash flows in millions of euros unless otherwise stated full year Q1 Q2 Q3 Q4 full year Cash flows from operating activities: Net income (loss) 1, (1,345) 76 (160) (1,291) Lossfrom discontinued operations Adjustments to reconcile net income to net cash provided by (used for) operating activities: Depreciation and amortization 1, ,456 Impairment of goodwill and other non-current financial assets 5 1, ,387 Net loss on sale of assets (204) (55) (9) (20) (4) (88) Income from investments in associates (18) (6) 4 (14) 2 (14) Dividends received from investments in associates Dividends paid to non-controlling interests (4) (1) (3) (4) (Increase) decrease in working capital: 16 (850) (213) (292) 676 (679) (Increase) decrease in receivables and other current assets (241) 74 (40) (189) (184) (339) (Increase) decrease in inventories (498) (198) (254) (198) 569 (81) Increase (decrease) in accounts payable, accrued and other liabilities 755 (726) (259) Increase in non-current receivables/other assets/other liabilities (297) (130) (145) (135) (186) (596) (Decrease) increase in provisions (211) (47) (34) Other items (19) 29 (9) Net cash provided by (used for) operating activities 2,121 (493) , Cash flows from investing activities: Purchase of intangible assets (80) (48) (17) (23) (28) (116) Expenditures on development assets (193) (50) (69) (49) (63) (231) Capital expenditures on property, plant and equipment (621) (161) (184) (177) (203) (725) Proceeds from disposals of property, plant and equipment Cash from (to) derivatives and securities (25) (17) (9) 26 Purchase of other non-current financial assets (16) (6) (24) (13) (43) Proceeds from other non-current financial assets (2) 87 Purchase of businesses, net of cash acquired (225) (58) (132) (64) (255) (509) Proceeds from sale of interests in businesses (4) Net cash used for investing activities (646) (179) (349) (325) (511) (1,364) Cash flows from financing activities: Increase in short-term debt (189) (111) (35) (217) Principal payments on long-term debt (78) (285) (767) (24) (21) (1,097) Proceeds from issuance of long-term debt Treasury shares transactions (525) (208) (671) Dividend paid (296) (259) (259) Net cash used for financing activities (95) (126) (1,073) (558) (30) (1,787) Net cash provided by (used for) continuing operations 1,380 (798) (1,353) (830) 666 (2,315) Updated reporting Philips Group 7

8 full year Q1 Q2 Q3 Q4 full year Cash flows from discontinued operations: Net cash provided by (used for) operating activities 34 (201) (159) (78) 168 (270) Net cash used for investing activities (56) (26) (19) (20) (29) (94) Net cash (used for) provided by discontinued operations (22) (227) (178) (98) 139 (364) Net cash provided by (used for) continuing and discontinued operations 1,358 (1,025) (1,531) (928) 805 (2,679) Effect of change in exchange rates on cash positions 89 (36) (7) Cash and cash equivalents at beginning of period 4,386 5,833 4,772 3,260 2,339 5,833 Cash and cash equivalents at end of period 5,833 4,772 3,260 2,339 3,147 3,147 Ratio Cash flows before financing activities 1,475 (672) (280) (272) 696 (528) Net cash paid during the period for Pensions (474) (233) (132) (134) (140) (639) Interest (226) (78) (58) (64) (31) (231) Income taxes (206) (185) (96) (176) (125) (582) For a number of reasons, principally the effects of translation differences, certain items do not correspond to the differences between the balance sheet amounts for the respective items. 8 Updated reporting Philips Group

9 Reconciliation of non-gaap performance measures in millions of euros unless otherwise stated Certain non-gaap financial measures are presented when discussing the Philips Group s performance. In the following tables, a reconciliation to the most directly comparable IFRS performance measure is made. Sales growth composition in % comparable growth currency effects consolidation changes nominal growth Full year 2010 versus full year 2009 Healthcare (0.2) 9.7 Consumer Lifestyle Lighting Innovation, Group & Services (1.6) 13.9 Philips Group st quarter 2011 versus 1st quarter 2010 Healthcare (0.1) 8.3 Consumer Lifestyle Lighting (4.2) 5.1 Innovation, Group & Services (29.1) 0.2 (5.6) (34.5) Philips Group (1.4) 5.5 2nd quarter 2011 versus 2nd quarter 2010 Healthcare 7.5 (6.9) 0.6 Consumer Lifestyle (0.2) (4.4) 2.7 (1.9) Lighting 3.7 (5.9) (2.2) (4.4) Innovation, Group & Services (7.9) (0.2) (19.0) (27.1) Philips Group 4.0 (5.8) (0.7) (2.5) 3rd quarter 2011 versus 3rd quarter 2010 Healthcare 7.4 (7.3) Consumer Lifestyle 0.8 (4.9) 2.6 (1.5) Lighting 7.8 (6.4) (2.5) (1.1) Innovation, Group & Services (2.2) (1.2) (20.0) (23.4) Philips Group 5.7 (6.3) (0.6) (1.2) 4th quarter 2011 versus 4th quarter 2010 Healthcare Consumer Lifestyle 0.2 (0.4) Lighting 7.2 (0.5) (1.8) 4.9 Innovation, Group & Services 10.3 (0.1) (20.0) (9.8) Philips Group 3.4 (0.1) 3.3 Full year 2011 versus full year 2010 Healthcare 5.3 (2.5) Consumer Lifestyle 1.1 (1.8) Lighting 6.1 (2.3) (2.7) 1.1 Innovation, Group & Services (10.7) (0.1) (14.0) (24.8) Philips Group 4.1 (2.2) (0.6) 1.3 Updated reporting Philips Group 9

10 EBITA (or Adjusted income from operations) to Income from operations (or EBIT) Philips Group Healthcare Consumer Lifestyle Lighting IG&S Full year 2010 EBITA (or Adjusted income from operations) 2,562 1, Amortization of intangibles 1) (482) (264) (38) (174) (6) Income from operations (or EBIT) 2, st quarter 2011 EBITA (or Adjusted income from operations) (33) Amortization of intangibles 1) (119) (61) (15) (41) (2) Impairment of goodwill Income from operations (or EBIT) (35) 2nd quarter 2011 EBITA (or Adjusted income from operations) (32) Amortization of intangibles 1) (139) (63) (35) (40) (1) Impairment of goodwill (1,355) (824) (531) Income from operations (or EBIT) (1,123) (611) (9) (470) (33) 3rd quarter 2011 EBITA (or Adjusted income from operations) (65) Amortization of intangibles 1) (95) (54) (13) (24) (4) Impairment of goodwill Income from operations (or EBIT) (69) 4th quarter 2011 EBITA (or Adjusted income from operations) (77) Amortization of intangibles 1) (241) (50) (17) (171) (3) Impairment of goodwill Income from operations (or EBIT) (130) (80) Full year 2011 EBITA (or Adjusted income from operations) 1,680 1, (207) Amortization of intangibles 1) (594) (228) (80) (276) (10) Impairment of goodwill (1,355) (824) (531) Income from operations (or EBIT) (269) (362) (217) 1) Excluding amortization of software and product development 10 Updated reporting Philips Group

11 Net operating capital to total assets Philips Group Healthcare Consumer Lifestyle Lighting IG&S December 31, 2010 Net operating capital (NOC) 11,951 8, ,561 (3,400) Exclude liabilities comprised in NOC: - payables/liabilities 10,009 2,603 2,481 1,485 3,440 - intercompany accounts (217) - provisions 2, ,429 Include assets not comprised in NOC: - investments in associates other current financial assets other non-current financial assets deferred tax assets 1,351 1,351 - cash and cash equivalents 5,833 5,833 32,149 11,962 3,801 7,379 9,007 Assets held for sale 120 Total assets 32,269 April 4, 2011 Net operating capital (NOC) 12,654 8,534 1,476 5,580 (2,936) Exclude liabilities comprised in NOC: - payables/liabilities 7,725 2,340 1,126 1,305 2,954 - intercompany accounts (242) - provisions 2, ,436 Include assets not comprised in NOC: - investments in associates other current financial assets other non-current financial assets deferred tax assets 1,306 1,306 - cash and cash equivalents 4,772 4,772 29,282 11,281 3,033 7,221 7,747 Assets held for sale 695 Total assets 29,977 July 4, 2011 Net operating capital (NOC) 11,302 7,534 1,428 5,021 (2,681) Exclude liabilities comprised in NOC: - payables/liabilities 7,912 2,363 1,403 1,330 2,816 - intercompany accounts (233) - provisions 2, ,430 Include assets not comprised in NOC: - investments in associates other current financial assets other non-current financial assets deferred tax assets 1,304 1,304 - cash and cash equivalents 3,260 3,260 26,526 10,297 3,248 6,644 6,337 Assets held for sale 614 Total assets 27,140 Updated reporting Philips Group 11

12 October 3, 2011 Philips Group Healthcare Consumer Lifestyle Lighting IG&S Net operating capital (NOC) 11,624 8,081 1,181 5,238 (2,876) Exclude liabilities comprised in NOC: - payables/liabilities 8,859 2,536 1,920 1,363 3,040 - intercompany accounts (233) - provisions 2, ,486 Include assets not comprised in NOC: - investments in associates other current financial assets - other non-current financial assets deferred tax assets 1,421 1,421 - cash and cash equivalents 2,339 2,339 Assets held for sale 668 Total assets 27,711 27,043 11,048 3,491 6,894 5,610 December 31, 2011 Net operating capital (NOC) 10,427 8, ,020 (3,895) Exclude liabilities comprised in NOC: - payables/liabilities 9,940 2,697 2,039 1,450 3,754 - intercompany accounts (241) - provisions 2, ,567 Include assets not comprised in NOC: - investments in associates other current financial assets - other non-current financial assets deferred tax assets 1,713 1,713 - cash and cash equivalents 3,147 3,147 28,415 11,591 3,571 6,771 6,482 Assets held for sale 551 Total assets 28, Updated reporting Philips Group

13 2011 Koninklijke Philips Electronics N.V. All rights reserved.