Philips 2004 Annual Report Download - page 126

Results on sales of shares
2002 2003 2004
Atos Origin – – 151
TSMC – 695 –
Others 5 20 42
Total 5 715 193
2004
On December 10, 2004 Philips sold a total of 11 million shares in Atos Origin for an amount of
EUR 552 million, resulting in a non-taxable gain of EUR 151 million. As a result, Philips’ holding
in Atos Origin decreased to 15.4%.
The remaining investment is no longer valued according to the equity method, and has been
reclassified to other non-current financial assets (please refer to note 12).
2003
Results on the sale of shares included a gain of EUR 695 million resulting from the sale of 100
million American Depository Shares, each representing 5 common shares of TSMC. Following
the aforementioned sale of TSMC shares, Philips’ shareholding in TSMC was reduced to 19.1%
at December 31, 2003. The Company continues to apply equity accounting for TSMC as the
exercise of significant influence continues to be demonstrated by representation on the board
of directors and by participation in the policy-making processes of TSMC. Also, numerous
business and contractual relationships and arrangements that are maintained for the sake of
profit, demonstrate ownership of a residual interest in the equity of TSMC.
Gains and losses arising from dilution effects
2002 2003 2004
LG.Philips LCD – – 108
Atos Origin – 68 156
TSMC (12) (15) (10)
Total (12) 53 254
2004
The results relating to unconsolidated companies for 2004 were affected by several dilution
gains and losses. The IPO of LG.Philips LCD resulted in a dilution of Philips’ shareholding from
50% to 44.6%. The Company’s participation in Atos Origin was impacted by a dilution gain
resulting from the acquisition of Schlumberger Sema by Atos Origin, which diluted the
Company’s shareholding from 44.7% to 31.9%.
As in 2003, the Company’s shareholding in TSMC was diluted as a result of shares issued to
employees, in 2004 by 0.2%. Also in 2004, the TSMC Board of Management decided to
withdraw some share capital, increasing Philips’ shareholding by 0.1%.
2003
On August 16, 2002, Atos Origin purchased all of the common stock of KPMG Consulting in
the UK and the Netherlands. The consideration for the acquisition consisted of the issue of
3,657,000 bonds redeemable in shares (ORA bonds) with stock subscription warrants attached
at a price of EUR 64.20 each, representing a total amount of EUR 235 million, and a cash
payment of EUR 417 million.
125Philips Annual Report 2004