Philips 2009 Annual Report Download - page 63

4.1.9 Minority interests
The share of minority interests in the net income of the
Group amounted to EUR 14 million in 2009. In 2008, a
EUR 1 million net loss was attributable to minority
interests.
4.1.10 Discontinued operations
The results from discontinued operations in 2008
included a EUR 10 million net gain on the results of
MedQuist and a net loss of EUR 7 million on the sales of
Semiconductors.
For further information, refer to note 1 in the Group
financial statements.
4.1.11 Net income
Income from continuing operations increased from a loss
of EUR 95 million in 2008 to a profit of EUR 424 million.
The improvement was largely driven by EUR 560 million
higher EBIT, EUR 57 million higher earnings from equity-
accounted investees and lower income tax expense, partly
offset by higher costs in Financial income and expenses.
Net income for the Group including discontinued
operations amounted to a profit of EUR 424 million, or
EUR 0.46 per common share, in 2009, compared to a loss
of EUR 92 million, or 0.09 per common share, in 2008.
4.1.12 Acquisitions and divestments
Despite the global recession, in 2009 Philips continued to
invest in innovative, high-growth companies that are in
line with our strategy to become the leading company in
Health and Well-being. During the year, Philips acquired
eight strategically-aligned companies, benefiting all three
operating sectors, while divesting the unprofitable IT
Displays business within Consumer Lifestyle and FIMI
medical displays.
In 2009, acquisitions resulted in integration and purchase-
accounting charges totaling EUR 101 million: Healthcare
EUR 63 million, Consumer Lifestyle EUR 16 million, and
Lighting EUR 22 million.
In 2008, acquisitions led to integration and purchase-
accounting charges totaling EUR 130 million, mainly in
Healthcare and Lighting.
For further information, refer to note 2 in the Group
financial statements.
Acquisitions
Within Healthcare, we acquired three key companies. In
March, we acquired Meditronics, a manufacturer of
general X-ray systems targeting the economy segment in
India. In April, we added Traxtal to our portfolio, enabling
Philips to become one of the leading healthcare solutions
providers for image-guided procedures. InnerCool, a
pioneer in the field of therapeautic hypothermia, was
acquired in July, reinforcing our leadership position in the
emergency care market by adding body temperature
management solutions to our existing product offering in
this field.
Within Consumer Lifestyle, Philips acquired Saeco
International Group S.p.A. of Italy, one of the world’s
leading espresso machine makers, positioning us to
achieve our goal of becoming a global leader in coffee
machines.
Within Lighting, Philips added four companies to its
portfolio. Further strengthening our position to lead the
global switch to energy-efficient lighting solutions, we
acquired Dynalite in Australia and Teletrol Systems in the
US. Additionally, we acquired Ilti Luce, one of Europe’s
leading LED design companies for innovative architectural
indoor lighting, and Selecon, a prominent global designer,
manufacturer and distributor of professional theatrical
and architectural lighting fixtures.
Acquisitions in 2008
In 2008 we acquired a number of notable companies.
Healthcare acquisitions included VISICU, Respironics,
TOMCAT, Medel SpA, Dixtal Biomédica e Tecnologia,
Shenzhen Goldway and Alpha X-Ray Technologies.
Within Lighting, Philips completed the acquisition of
luminaires company Genlyte, a leader in North American
construction luminaires market.
Divestments
In 2009, Philips continued to transform the Television
business from one based on scale to one based on
innovation and differentiation by transferring the IT
Displays business to TPV Technology Limited in a brand
licensing agreement. Within Healthcare, Philips sold its
shares in FIMI to Barco NV, in line with Philips’ strategy to
divest non-core activities and focus on expanding its
growth platforms.
Divestments in 2008
In 2008, Philips also sold several non-core business
interests. These divestments included the sale of the Set-
Top Boxes activities; the brand license agreement with
respect to the North America television, audio and video
businesses; the sale of Philips Speech Recognition Services
(PSRS); and the divestment of High Tech Plastic-Optics;
the sale of Philips’ approximate 70% ownership stake in
MedQuist.
4 Our group performance 4.1.9 - 4.1.13
Philips Annual Report 2009 63