Philips 2005 Annual Report Download - page 95

Philips Annual Report 2005 95
Net cash used for fi nancing activities in 2004 amounted
to EUR 2,145 million. During the year, Philips repaid
EUR 1,227 million of maturing bonds and repurchased
EUR 300 million of notes that otherwise would have
matured on August 30, 2005. Additionally, Philips’
shareholders were paid EUR 460 million in dividend.
Treasury stock transactions led to a cash outfl ow of
EUR 18 million. Cash outfl ow for shares acquired
(EUR 96 million) was partly offset by cash infl ow due
to the exercise of stock options (EUR 78 million).
In 2003, net cash used for fi nancing activities amounted to
EUR 1,355 million. This included a EUR 944 million reduction
of debt, primarily due to a one-year-early redemption of
a EUR 1 billion fl oating rate note and a EUR 139 million
repayment of maturing bonds. In 2003, Philips entered into
a USD 151 million 7-year fl oating unsecured bullet loan
from the EIB (European Investment Bank) and a USD 100
million syndicated loan in the Philippines. Philips’ shareholders
were paid EUR 460 million in dividend. Treasury stock
transactions led to a cash infl ow of EUR 49 million,
consisting of cash infl ow for the exercise of stock options
(EUR 50 million) and cash outfl ow for shares acquired
(EUR 1 million).
Financing
Condensed balance sheet
in millions of euros 2004
1) 2005
Cash and cash equivalents 4,349 5,293
Receivables 8,675 9,536
Assets of discontinued operations 337 241
Inventories 3,140 3,480
Unconsolidated companies 5,670 5,698
Other non-current fi nancial assets 876 673
Property, plant and equipment 4,871 4,893
Intangible assets 2,805 4,047
Total assets 30,723 33,861
Accounts payable and other liabilities 7,982 9,308
Liabilities of discontinued operations 188 143
Provisions 2,897 2,925
Debt 4,513 4,487
Minority interests 283 332
Stockholders’ equity 14,860 16,666
Total liabilities and equity 30,723 33,861
1) Restated to present the MDS activities as a discontinued operation
Cash and cash equivalents
In 2005, cash and cash equivalents increased by EUR 944
million to EUR 5,293 million at year-end. Cash proceeds
from divestments amounted to EUR 3,368 million, while
the share repurchase programs led to a cash outfl ow of
EUR 1,836 million. There were further cash outfl ows for
acquisitions of EUR 1,205 million, including Stentor and
Lumileds for a total of EUR 982 million. Currency changes
during 2005 increased cash and cash equivalents by EUR
160 million.
In 2004, cash and cash equivalents increased by EUR 1,277
million to EUR 4,349 million at year-end. Currency changes
during 2004 reduced cash and cash equivalents by EUR 45
million, while the consolidation of SSMC’s cash position of
EUR 117 million at January 1, 2004 increased cash and
cash equivalents for the Group.
Debt position
Total debt outstanding at the end of 2005 was EUR 4,487
million, compared with EUR 4,513 million at the end
of 2004.
Changes in debt are as follows:
In millions of euros 2004 2005
New borrowings 258 74
Repayments (1,925 ) (398 )
Consolidation and currency effects 304 298
Total changes in debt (1,363 ) (26 )
In 2005, total debt decreased by EUR 26 million to
EUR 4,487 million. Philips repaid EUR 251 million in
scheduled bond repayments. A further EUR 53 million
was repaid or converted under convertible personnel
debentures and staff savings plans, repayments of bank
facilities and capital lease transactions were EUR 78 million
and the remaining repayments of EUR 16 million resulted
from reductions in other debt. New borrowings of
EUR 74 million include EUR 35 million for convertible
personnel debentures and staff savings plans, a further
EUR 24 million for capital lease transactions with the
remaining EUR 15 million split over other types of debt.
In 2004, total debt decreased by EUR 1,363 million to
EUR 4,513 million. Philips reduced the outstanding bonds
by EUR 1,527 million, due to a EUR 1,227 million repayment
of maturing bonds and a EUR 300 million early redemption
of a note. SSMC repaid EUR 351 million outstanding loans
as part of a loan restructuring program. The remaining