Philips 2007 Annual Report Download - page 255

Philips Annual Report 2007 261
Market capitalization
Philips’ market capitalization was EUR 31.4 billion at
year-end 2007. The highest closing price for Philips’
shares in 2007 was EUR 32.99 on July 12, 2007 and
the lowest was EUR 26.71 on November 21, 2007,
both in Amsterdam.
In 2005, 2006 and 2007, Philips completed several
share repurchase programs, which reduced the shares
outstanding by 17% from 1,282 million to 1,065 million
shares. The shares repurchased for cancellation amounted
to EUR 2,780 million in 2006 and EUR 820 million in 2007.
Market capitalization
in billions of euros
0
10
20
30
40
of which publicly quoted stakes
market capitalization of Philips
2003
2004
2005
2006
2007
Dividend policy
Philips’ present dividend policy is based on an annual
pay-out ratio of 40 to 50% of continuing net income,
which was revised in 2007 from an average annual
pay-out
ratio of 25 to 35%, and explained at the 2007
General Meeting of Shareholders. This reects the fact
that we are now becoming a higher margin, more predictable
company. Our aim is to further grow the dividend over
time in a sustainable way, in line with the performance
of the company.
The measure is based on continuing net income, meaning
recurring net income from continuing operations, or net
income excluding discontinued operations and material
non-recurring items. For 2007, net income amounted
to EUR 4,168 million, and income from discontinued
operations amounted to a loss of EUR 433 million.
In 2007, material non-recurring items included the gain
of EUR 3,041 million on the sale of shares in LG.Philips
LCD and TSMC.
Net income
in millions of euros
6,000
5,000
4,000
3,000
2,000
1,000
0
695
2003
2,836
2004
2,868
2005
5,383
2006
4,168
2007
Group 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