Philips 2004 Annual Report Download - page 155

In order to reduce potential dilution effects, a total of 4,102,020 shares were acquired during
2004 at an average market price of EUR 23.35 per share, totaling EUR 96 million, and a total of
4,942,894 shares were delivered at an average exercise price of EUR 22.83, totaling EUR 113
million.
A total of 34,543,388 shares were held by Royal Philips Electronics at December 31, 2004
(2003: 35,384,262 shares), acquired at an aggregate cost of EUR 1,239 million.
Retained earnings
A dividend of EUR 0.40 per common share will be proposed to the 2005 Annual General
Meeting of Shareholders.
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28 Cash from derivatives
The Company has no trading derivatives. A total of EUR 125 million cash was generated by
foreign exchange derivative contracts related to financing of subsidiaries (2003: EUR 391
million, 2002: EUR 422 million). Cash flow from interest-related derivatives is part of cash flow
from operating activities.
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29 Proceeds from other non-current financial assets
In 2004, the sale of all remaining shares in Vivendi Universal and ASML generated cash of
EUR 720 million and EUR 163 million respectively (please refer to note 12).
In 2003, a portion of available-for-sale securities was sold and generated a cash inflow of
EUR 272 million, consisting of ASML, JDS Uniphase and Vivendi Universal shares with a book
value of EUR 126 million resulting in a gain of EUR 146 million, which is included in financial
income and expenses in the income statement.
In 2002, some of the ASML shares were sold and generated a cash inflow of EUR 72 million.
Moreover, in 2002, JDS Uniphase shares were received in connection with the sale and related
earn-out of Philips Optoelectronics in 1998.
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30 Assets received in lieu of cash from the sale of businesses
In 2004, shares in Computer Access Technology Corporation were sold in two tranches. In
March 2004 shares were sold for an amount of EUR 9 million. In December 2004 the remaining
shares were sold for EUR 8 million. The proceeds are to be collected in 2005.
Furthermore, shares in Openwave Systems (EUR 6 million) were received in connection with
the sale of Magic4.
Assets received in lieu of cash in 2003 consist of EUR 26 million representing a convertible
debenture of Scansoft Inc. received in connection with the sale of Speech Processing Telephony
and Voice Control businesses.
The 2002 amount of EUR 113 million consists of JDS Uniphase shares received in connection
with the sale and related earn-out of Philips Optoelectronics.
154 Philips Annual Report 2004
Financial statements of the Philips Group