Philips 2007 Annual Report Download - page 258

Philips Annual Report 2007264
Share capital structure
In 2007, Philips’ issued share capital remained the same
during the year at a level of 1,142,826,763 common
shares. The basic shares outstanding were reduced from
1,107 million per end of December 2006 to 1,065 million
shares by the end of 2007. As of December 31, 2007, the
shares held in treasury amount to 77.9 million shares,
of which 52.1 million shares are held by Philips to cover
long-term incentive and employee stock purchase plans.
The share repurchase program via the second trading
line reduced outstanding shares by 25.8 million. No person
or group is known to Philips to be the owner of more
than 5% of the common shares.
On January 18, 2008, Philips started the procedure for
the cancellation of Philips’ shares acquired or to be
acquired pursuant to the share repurchase programs
for capital reduction purposes initiated in January 2007
and January 2008. The number of shares to be cancelled
shall be determined by the Board of Management but
shall not exceed 114,282,676 shares. Pursuant to the
relevant statutory provisions, cancellation may not be
effected earlier than March 18, 2008.
Share repurchase programs for capital reduction
purposes
Between January 2005 and December 2007 Philips has
reduced its outstanding shares by more than 15% for
capital reduction purposes. In the rst half of 2005
Philips bought back EUR 500 million and in February
2006, Philips completed the EUR 1.5 billion share
repurchase program for capital reduction purposes
which was initiated in August 2005.
On July 17, 2006, Philips started another EUR 1.5 billion
share repurchase program for capital reduction purposes.
On August 3, 2006, Philips announced the expansion
of the buy-back to a total of EUR 4.0 billion. Philips
completed the rst part, EUR 2.4 billion, in 2006.
The remaining EUR 1.6 billion was to be executed via
a program using a second trading line on Euronext
Amsterdam and started on January 22, 2007. Through
this second trading line EUR 0.8 billion worth of shares
were purchased in 2007.
In December 2007, the Dutch parliament adopted an
amendment to Dutch tax legislation, effective January 1,
2008, that increased the amount that companies may
spend on repurchasing shares free of withholding tax.
Subsequently, Philips announced that it plans to
repurchase EUR 5 billion worth of common Philips
shares. Philips expects that this program will be largely
completed by the end of 2008. As a consequence of
this new share repurchase program, which includes
the portion of the second trading line program that
has yet to be completed, Philips has terminated its
second trading line.
On the Investor Relations website you can nd the
details of the current and previous share repurchase
programs. For more information see the section Other
information that begins on page 58 of this Annual Report.
Financial calendar
Annual General Meeting of Shareholders
Record date Annual General Meeting
of Shareholders March 5, 2008
Annual General Meeting of Shareholders March 27, 2008
Quarterly reports 2008
First quarterly report 2008 April 14, 2008
Second quarterly report 2008 July 14, 2008
Third quarterly report 2008 October 13, 2008
Fourth quarterly report 2008 January 26, 20091)
Sector analysts’ days 2008
Analyst day 1 May 16, 20081)
Analyst day 2 September 23, 20081)
Analyst day 3 December 4, 20081)
2009
Publication of 2008 results January 26, 20091)
Publication of the Annual Report 2008 February 23, 20091)
Annual General Meeting of Shareholders March 26, 20091)
1) These dates are subject to nal conrmation
Shareholders Communication Channel
Philips is continually striving to improve relations with
its shareholders. For instance, Philips was one of the key
companies in the establishment of the Shareholders
Communication Channel - a project of Euronext
Amsterdam, banks in the Netherlands and several
major Dutch companies to simplify contacts between
a participating company and its shareholders.
Philips will use the Shareholders Communication
Channel to distribute the Agenda for this year’s
Annual General Meeting of Shareholders as well as an
instruction form to enable proxy voting at said meeting.
128 Group nancial statements 188 IFRS information 240 Company nancial statements