Philips 2008 Annual Report Download - page 10

Return to shareholders
We completed EUR 3.3 billion of the current EUR 5
billion share repurchase program announced in
December 2007. However, in view of the risks and
opportunities presented by the economic downturn
and the turbulence on the financial markets, we
decided that the most responsible course of action
was to stop the share repurchase program until
further notice and to maintain our financial flexibility.
In common with many in our peer group, our share
price followed the downward trend of the market in
2008. Disappointing as this is, I remain confident that
when better economic times return our share price
will respond to reflect the intrinsic quality of our
health and well-being portfolio.
At our General Meeting of Shareholders in March
2008 we increased the dividend for the fourth year
in a row. We are proposing to the upcoming General
Meeting of Shareholders to make a distribution of
EUR 0.70 per common share – equal to last year’s
dividend – resulting in an increased yield (as of
December 31, 2008) of 5.1% for shareholders.
How did we do against our
Management Agenda 2008?
Let me update you on how we performed on
the objectives we set ourselves last year.
Integrate and leverage recent acquisitions,
delivering anticipated return on investment
The two main integration processes concerned
Respironics in our Healthcare sector and Genlyte
in Lighting. Both contributed positively to sales and
earnings, in line with expectation.
... positive contribution from integrated
acquisitions ...
The acquisition of leading North American luminaire
manufacturer Genlyte not only gives us the leading
position in the US market for professional lighting
applications, but also makes us the only player with
a truly global platform for its lighting applications
and solutions.
The acquisition of Respironics – a leading US-based
global provider of innovative respiratory and sleep
therapy solutions for hospital and home use – is part
of our strategy to create a global leadership position
in the fast-growing home healthcare solutions market.
In December, we further solidified this position with
the acquisition of the aerosol therapy business of
Medel SpA in Italy. The hospital activities of Respironics
are now part of our integrated offering of Clinical
Care Solutions, and we are well on our way with
the creation of an integrated approach to sleep
care involving our Lifestyle sector.
Philips brand value1)
in billions of USD
9
8
7
6
5
4
3
2
1
0
4.4
2004
5.9
2005
6.7
2006
7.7
2007
8.3
2008
Dividend and dividend yield per common share
in euros
dividend per share yield in % 2)
0.8
0.6
0.4
0.2
0
0.40
2.1
2005
0.44
1.7
2006
0.60
2.1
2007
0.70
2.4
2008
0.70
5.1
20091)
Subject to approval of distribution by the 2009 Annual General Meeting
1)
of Shareholders
Dividend yield % as of December 31 of the previous year
2)
According to Interbrand
1)
Philips Annual Report 200810
18
We care about...
8
Message from
the President
6
Performance highlights
14
Who we are
42
Our group performance