Philips 2005 Annual Report Download - page 4

Philips Annual Report 20054
6 Financial highlights
8 Message from the President
14 Our company
Information on the Philips Group
28 Our structure
28 Our businesses
50 Our cooperations
52 Our leadership
60 Report of the Supervisory Board
Management discussion and analysis
68 Introduction
69 Group performance 2005 compared to 2004
69 Management summary
70 Performance of the Group
74 Performance by sector
82 Performance by region
84 Employment84
85 Group performance 2004 compared to 200385
93 Liquidity and capital resourcesi
99 Acquisitions and divestments
100 Restructuring and impairment charges
101 Risk management
115 Critical accounting policies
117 Other information
122 Proposed dividend to shareholders
123 Outlook
 Groupnancialstatements
124 Consolidated statements of income
126 Consolidated balance sheets
128 Consolidatedstatementsofcashows
130 Consolidated statements of stockholders’ equity
131 Information by sectors and main countries
134 Accounting policies
139 New accounting standards
140 Notestothegroupnancialstatements
175 Auditors’ report
IFRS information
176 Management commentary
178 Consolidated statements of income
180 Consolidated balance sheets
182 Consolidatedstatementsofcashows
184 Consolidated statements of equity
186 Accounting policies
190 New accounting standards
192 NotestotheIFRSnancialstatements
210 Auditors’ report
Companynancialstatements
212 Balance sheets and statements of income
213 Statement of equity
214 Accounting policies
214 Notestothecompanynancialstatements
217 Auditors’ report
218 Corporate governance
226 The Philips Group in the last ten years
228 Investor information
Contents
Forward-looking statements
Thisdocumentcontainscertainforward-lookingstatementswithrespecttothenancialcondition,
results of operations and business of Philips and certain of the plans and objectives of Philips with
respect to these items (including, but not limited to, restructuring cost and cost savings), in particular
the outlook paragraph of the Management discussion and analysis in this Annual Report.
By their nature, forward-looking statements involve risk and uncertainty because they relate to
events and depend on circumstances that will occur in the future. There are a number of factors
that could cause actual results and developments to differ materially from those expressed or
implied by these forward-looking statements. These factors include, but are not limited to, levels
of consumer and business spending in major economies, changes in consumer tastes and
preferences,changesinlaw,theperformanceofthenancialmarkets,pensioncosts,thelevels
of marketing and promotional expenditures by Philips and its competitors, raw materials and
employee costs, changes in exchange and interest rates (in particular changes in the euro and
the US dollar can materially affect results), changes in tax rates and future business combinations,
acquisitions or dispositions and the rate of technological changes, political and military
developments in countries where Philips operates, the risk of a downturn in the semiconductor
market,Philips’abilitytosecureshort-termprotabilityandinvestinlong-termgrowth,and
industry consolidation. Statements regarding market share, including as to Philips’ competitive
position, contained in this document are based on outside sources such as specialized research
institutes, industry and dealer panels in combination with management estimates. Where full-year
information regarding 2005 is not yet available to Philips, those statements may also be based on
estimates and projections prepared by outside sources or management. Rankings are based on
sales unless otherwise stated.