Philips 2009 Annual Report Download - page 242

17 Forward-looking statements and
other information
Forward-looking statements
This document contains certain forward-looking statements with
respect to the financial condition, results of operations and business of
Philips and certain of the plans and objectives of Philips with respect to
these items, in particular the Outlook section of the chapter Our group
performance in this Annual Report. Examples of forward-looking
statements include statements made about our strategy, estimates of
sales growth, future EBITA and future developments in our organic
business. By their nature, forward-looking statements involve risk and
uncertainty because they relate to future events and circumstances and
there are many factors that could cause actual results and developments
to differ materially from those expressed or implied by these forward-
looking statements.
These factors include, but are not limited to, domestic and global
economic and business conditions, the successful implementation of
our strategy and our ability to realize the benefits of this strategy, our
ability to develop and market new products, changes in legislation, legal
claims, changes in exchange and interest rates, changes in tax rates,
pension costs and actuarial assumptions, raw materials and employee
costs, our ability to identify and complete successful acquisitions and to
integrate those acquisitions into our business, our ability to successfully
exit certain businesses or restructure our operations, the rate of
technological changes, political, economic and other developments in
countries where Philips operates, industry consolidation and
competition. As a result, Philips’ actual future results may differ
materially from the plans, goals and expectations set forth in such
forward-looking statements. For a discussion of factors that could cause
future results to differ from such forward-looking statements, see also
the chapter Risk management.
Third-party market share data
Statements regarding market share, contained in this document,
including those regarding Philips’ competitive position, are based on
outside sources such as specialized research institutes, industry and
dealer panels in combination with management estimates. Where full-
year information regarding 2009 is not yet available to Philips, those
statements may also be based on estimates and projections prepared by
outside sources or management. Rankings are based on sales unless
otherwise stated.
Fair value information
In presenting the Philips Group’s financial position, fair values are used
for the measurement of various items in accordance with the applicable
accounting standards. These fair values are based on market prices,
where available, and are obtained from sources that are deemed to be
reliable. Readers are cautioned that these values are subject to changes
over time and are only valid at the balance sheet date. When an
observable market value does not exist, fair values are estimated using
valuation models, which we believe are appropriate for their purpose.
They require management to make significant assumptions with respect
to future developments which are inherently uncertain and may
therefore deviate from actual developments. Critical assumptions used
are disclosed in the financial statements. In certain cases, independent
valuations are obtained to support management’s determination of fair
values.
IFRS basis of presentation
The financial information included in this document is based on IFRS,
unless otherwise indicated. As used in this document, the term EBIT has
the same meaning as Income from operations (IFO).
Use of non-GAAP information
In presenting and discussing the Philips Group’s financial position,
operating results and cash flows, management uses certain non-GAAP
financial measures like: comparable growth; EBITA; NOC; net debt
(cash); free cash flow; and cash flow before financing activities. These
non-GAAP financial measures should not be viewed in isolation as
alternatives to the equivalent GAAP measures.
Further information on non-GAAP information and a reconciliation of
such measures to the most directly comparable GAAP measures can be
found in the chapter Reconciliation of non-GAAP information.
Statutory financial statements and management report
The chapters Group financial statements and Company financial
statements contain the statutory financial statements of the Company.
The introduction to the chapter Group financial statements sets out
which parts of this Annual Report form the management report within
the meaning of Section 2:391 of the Dutch Civil Code (and related
Decrees).
Reclassifications
As of January 2009, the Hospitality business moved from Consumer
Lifestyle to Lighting. In 2009, the activities of the Incubators, which are
included in Innovation & Emerging Businesses, were charged to
Research & Development cost of the operating sectors. Beginning in
2009, Innovation & Emerging Businesses is reported under Group
Management & Services. As a consequence of the aforementioned,
prior-year financials have been restated.
Analysis of 2008 compared to 2007
The analysis of the 2008 financial results compared to 2007, and the
discussion of the critical accounting policies, have not been included in
this Annual Report. These sections are included in Philips’ Form 20-F
for the financial year 2009, which is filed electronically with the US
Securities and Exchange Commission.
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242 Philips Annual Report 2009