Philips 2006 Annual Report Download - page 46

Philips Annual Report 200646
Financing
The condensed balance sheet for the years 2006,
2005 and 2004 is presented below
Condensed balance sheet
in millions of euros
20041) 20051) 2006
Cash and cash equivalents 4,349 5,293 6,023
Receivables 8,136 8,976 9,726
Assets of discontinued operations 4,198 3,973 −
Inventories 2,500 2,797 2,880
Equity-accounted investees 5,284 5,342 2,978
Other non-current fi nancial assets 956 730 8,056
Property, plant and equipment 2,792 3,019 3,099
Intangible assets 2,524 3,775 5,735
Total assets 30,739 33,905 38,497
Accounts payable and other
liabilities 7,188 8,498 8,175
Liabilities of discontinued
operations 1,346 1,385 −
Provisions 2,673 2,710 3,325
Debt 4,513 4,487 3,869
Minority interests 159 159 131
Stockholders’ equity 14,860 16,666 22,997
Total liabilities and equity 30,739 33,905 38,497
1) Restated to present the Semiconductors division as a discontinued operation.
Please refer to the consolidated balance sheets which are part of the chapter
Group fi nancial statements.
Cash and cash equivalents
In 2006, cash and cash equivalents increased by
EUR 730
million to EUR 6,023 million at year-end. Cash
proceeds
from divestments amounted to EUR 7,218
million, including a net cash infl ow of EUR 7,059 million
as a result of the sale of Semiconductors. The share buy-
back programs led to a cash outfl ow of EUR 2,899 million.
There were further cash outfl ows for acquisitions of
EUR 2,498 million, including EUR 583 million for the
acquisition of Lifeline, EUR 689 million for Avent, EUR
993 million for Intermagnetics and EUR 110 million for
Witt Biomedical. Furthermore, a dividend of EUR 523
million was paid. Currency changes during 2006 decreased
cash and cash equivalents by EUR 197 million.
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 3,652 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 1,395 million, including Stentor and
Lumileds for a total of EUR 982 million. Currency changes
during 2005 increased cash and cash equivalents by
EUR 159 million.
Debt position
Total debt outstanding at the end of 2006 was EUR 3,869
million, compared with EUR 4,487 million at the end of 2005.
Changes in debt
in millions of euros
2004 2005 2006
New borrowings 258 74 106
Repayments (1,925) (398) (543)
Consolidation and currency effects 304 298 (181)
Total changes in debt (1,363) (26) (618)
During the year, total debt decreased by EUR 618
million. Philips repaid EUR 208 million in a scheduled
bond repayment. The remaining repayments consisted
of bank facilities of EUR 277 million, capital lease
transactions for EUR 8 million and EUR 50 million
resulting from reductions in other debt. New borrowings
of EUR 106 million included EUR 97 million from increased
short-term borrowings. Other changes resulting from
consolidation and currency effects led to a reduction
of EUR 181 million.
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 totaled 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.
Other changes resulting from consolidation and currency
effects led to an increases of EUR 298 million.
Philips had one ‘putable’ bond outstanding at year-end
2006 for USD 103 million, issued at 7.125%, due 2025,
carrying an option of each holder to put the bond to
the Company on May 15, 2007 upon notice received
between March 15 and April 15, 2007.
6 Financial highlights 8 Message from the President 14 Our leadership 20 The Philips Group
Liquidity and
capital resources