Philips 2005 Annual Report Download - page 177

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Philips Annual Report 2005 177
Unallocated generated a negative EBIT of EUR 522 million (2004: negative
EUR 627 million). The improvement was attributable to a gain of
EUR 185 million due to a release in a provision for retiree medical costs
(EUR 308 million was recognized for the total Company), partially offset
by higher costs for the Philips global brand campaign of EUR 58 million.
FinancialincomeandexpensesamountedtoaprotofEUR113million
in2005,comparedtoaprotofEUR34millionin2004.Theincrease
was mainly due to the lower net interest expense as a result of the
higher average cash position of the Company.
Resultsrelatingtounconsolidatedcompaniesin2005generated a prota
of EUR 2,205 million, as compared to EUR 1,456 million in 2004. The
improved results were due to gains recognized on the sale of certain
nancialholdings,partiallyoffsetbyanimpairmentchargerecordedwith
respect to the investment in LG.Philips Displays.
Cashowsfromoperatingactivitiesfor2005totaledEUR2,787million
comparedtoEUR3,240millionin2004.Anadditionalcashinowof
EUR 614 million was generated in 2005 by investing activities. Overall,
theserobustcashowsresultedinanetcashposition(cashandcash
equivalents, net of debt) of EUR 786 million at December 31, 2005
against a net debt position of EUR 196 million at year-end 2004, offering
signicantstrategicexibilityforthefuture.