Philips 2009 Annual Report Download - page 241

16 Definitions and abbreviations
Definitions
Cash flow before financing activities:
the sum of net cash flow from operating activities and net cash flow
from investing activities.
Comparable sales:
excludes the effect of currency movements and acquisitions and
divestments (changes in consolidation). Philips believes that comparable
sales information enhances understanding of sales performance.
Continuing net income:
recurring net income from continuing operations, or net income
excluding discontinued operations and excluding material non-
recurring items.
Dividend yield:
the annual dividend payment divided by Philips’ market capitalization.
All references to dividend yield are as of December 31 of the previous
year (the yield on the dividend paid in 2009 uses the market
capitalization as of December 31, 2008).
EBITA:
earnings before interest, tax and amortization (EBITA) represents
income from continuing operations excluding results attributable to
minority interest holders, results relating to equity-accounted
investees, income taxes, financial income and expenses, amortization
and impairment on intangible assets (excluding software and capitalized
development expenses). Philips believes that EBITA information makes
the underlying performance of its businesses more transparent by
factoring out the amortization of intangible assets, which arises when
acquisitions are consolidated.
EBITA per common share:
EBITA divided by the weighted average number of shares outstanding
(basic). The same principle is used for the definition of net income or
stockholders’ equity per common share, replacing EBITA.
Employee Engagement Index (EEI):
measures the level of employee loyalty and satisfaction; expressed as
the % of employees giving a favorable score.
Free cash flow:
net cash flow from operating activities minus net capital expenditures.
FTE:
abbreviation for full-time equivalent employee.
Income as a % of stockholders’ equity (ROE):
measures income from continuing operations as a percentage of
average stockholders’ equity. ROE rates Philips’ overall profitability by
evaluating how much profit the company generates with the money
shareholders have invested.
Income from continuing operations:
net income from continuing operations, or net income excluding
discontinued operations
Net promoter score (NPS):
the Net Promoter Score is a tool to measure Philips’ customers’ loyalty
to its products. It is measured through one question: “Based on your
experience with this product, how likely are you to recommend your
Philips product to a friend, relative or colleague?” Philips categorizes the
answers as ‘Promoters’, ‘Passives’ or ‘Detractors’. The NPS is
measured by deducting the percentage of Detractors (score 0 to 6)
from the percentage of customers who are Promoters (score 9 to 10).
Productivity:
Philips uses Productivity internally and as mentioned in this annual
report as a non-financial indicator of efficiency that relates the added
value, being income from operations adjusted for certain items such as
restructuring and acquisition-related charges etc. plus salaries and
wages (including pension costs and other social security and similar
charges), depreciation of property, plant and equipment, and
amortization of intangibles, to the average number of employees over
the past 12 months.
Health:
by ‘health’ we mean not only medical-related aspects of health, but also
keeping fit, eating a healthy diet and generally living a healthy lifestyle.
Well-being:
by ‘well-being’ we mean a general sense of fulfillment, feeling good and
at ease. ‘Well-being’ also refers to a sense of comfort, safety and
security people feel in their environment – at home, at work, or out and
about.
Abbreviations
BFR
Brominated Flame Retardants
CFC
Chlorofluorocarbon
CO2
Carbon dioxide
EICC
Electronic Industry Citizenship Coalition
EPBD
Energy Performance of Buildings
EuP
Energy using Products
GRI
Global Reporting Initiative
HCFC
Hydrochloroflurocarbon
ISO
International Standardization Organization
LED
Light-Emitting Diode
MDG
Millennium Development Goals
NGO
Non-Governmental Organization
OLED
Organic Light-Emitting Diode
PFC
Per fluorinated compounds
PVC
Polyvinylchloride
REACH
Registration, Evaluation, Authorization and Restriction of Chemical
substances
RoHS
Regulation on Hazardous Substances
WEEE
Waste Electrical and Electronic Equipment
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Philips Annual Report 2009 241