Philips 2007 Annual Report Download - page 233

Philips Annual Report 2007 239
derivative are reported in nancial income and expense and during
Philips’ cash offer represents an enterprise value of approximately
EUR 200 million (approximately USD 300 million), when accounting
for approximately USD 130 million in cash on VISICU’s balance sheet
The transaction is expected to close at February 20, 2008.
Set-Top Boxes and Connectivity Solutions
agreement in principle to sell its Set-Top Boxes (STB) and Connectivity
in exchange for 70 million Pace shares. The proposed transaction is subject
transaction is expected to close at the end of the rst quarter of 2008.
next two years. Shares repurchased under this new program will be
for approximately EUR 587 million under this program.
On December 21, 2007, Philips and Respironics announced a denitive
66 per share, or a total purchase price of approximately EUR 3.6
respiratory markets. The transaction is expected to close at the
a loan to Genlyte of approximately USD 101 million to pay off debt.
70
The preliminary condensed balance sheet of Genlyte determined in
accordance with IFRS, immediately before and after acquisition date:
Preliminary, unaudited
before
acquisition
date
after
acquisition
date
Assets and liabilities
Goodwill 256 1,092
Other intangible assets 102 762
Property, plant and equipment 131 193
Working capital 90 145
Current nancial assets 7 7
Deferred tax liabilities − (291)
Other long-term liabilities and assets (net) (16) (16)
Cash 75 75
645 1,967
Financed by
Group equity 567 1,889
Loans 78 78
645 1,967
The goodwill recognized is related mainly to the complementary
technological expertise of Genlyte’s workforce and the synergies
expected to be achieved from integrating Genlyte into the Lighting division.
Other intangible assets comprise:
Preliminary, unaudited amount
amortization
period
in years
Core technology and developed
technology/designs 100 11
Group brands 212 20
Product brands 49 10
Customer relationship 381 12
Order backlog 6 0.5
In-process R&D 14 12
762
Auditor’s report
To the Supervisory Board and Shareholders of Koninklijke Philips
Electronics N.V.:
Report on the consolidated nancial statements
We have audited the accompanying consolidated nancial statements
2007 which are part of the nancial statements of Koninklijke Philips
Electronics N.V., Eindhoven, The Netherlands which comprise the
consolidated balance sheet as at December 31, 2007, statement of
income, statement of changes in equity and cash ow statement for
the year then ended, and a summary of signicant accounting policies
and other explanatory notes as set out on pages 194 to 239.
Management’s responsibility
The Board of Management is responsible for the preparation and fair
presentation of the consolidated nancial statements in accordance
with International Financial Reporting Standards as adopted by the
European Union and with Part 9 of Book 2 of the Netherlands Civil
Code, and for the preparation of the Management report in accordance
with Part 9 of Book 2 of the Netherlands Civil Code. This responsibility
includes: designing, implementing and maintaining internal control
relevant to the preparation and fair presentation of the consolidated
nancial statements that are free from material misstatement, whether
due to fraud or error; selecting and applying appropriate accounting
policies; and making accounting estimates that are reasonable in
the circumstances.
Auditor’s responsibility
Our responsibility is to express an opinion on the consolidated
nancial statements based on our audit. We conducted our audit in
accordance with Dutch law. This law requires that we comply with
ethical requirements and plan and perform the audit to obtain
reasonable assurance whether the consolidated nancial statements
are free from material misstatement.
An audit involves performing procedures to obtain audit evidence
about the amounts and disclosures in the consolidated nancial
statements. The procedures selected depend on the auditor’s
judgment, including the assessment of the risks of material misstatement
of the consolidated nancial statements, whether due to fraud or
error. In making those risk assessments, the auditor considers internal
control relevant to the entity’s preparation and fair presentation of
the consolidated nancial statements in order to design audit
procedures that are appropriate in the circumstances, but not for the
purpose of expressing an opinion on the effectiveness of the entity’s
internal control. An audit also includes evaluating the appropriateness
of accounting policies used and the reasonableness of accounting
estimates made by management, as well as evaluating the overall
presentation of the consolidated nancial statements.
We believe that the audit evidence we have obtained is sufcient
and appropriate to provide a basis for our audit opinion.
Opinion
In our opinion, the consolidated nancial statements give a true and
fair view of the nancial position of Koninklijke Philips Electronics N.V.
as at December 31, 2007, and of its result and its cash ows for the
year then ended in accordance with International Financial Reporting
Standards as adopted by the European Union and with Part 9 of Book
2 of the Netherlands Civil Code.
Report on other legal and regulatory requirements
Pursuant to the legal requirement under 2:393 sub 5 part e of the
Netherlands Civil Code, we report, to the extent of our competence,
that the Management report as set out on pages 188 to 193 is consistent
with the consolidated nancial statements as required by 2:391 sub 4
of the Netherlands Civil Code.
Amstelveen, February 18, 2008
KPMG Accountants N.V.
M.A. Soeting RA
Group nancial statements
Notes to the IFRS nancial statements
Company nancial statements 250 Corporate governance246 Reconciliation of
non-US GAAP information 258 The Philips Group in the last ten years 260
Investor information