Philips 2010 Annual Report Download - page 130

11 Supervisory Board report 11.3 - 11.3
130 Annual Report 2010
audit function. With regard to the external audit, the
Audit Committee reviewed the proposed audit scope,
approach and fees, the independence of the external
auditors, non-audit services provided by the external
auditors in conformity with the Philips Policy on Auditor
Independence, as well as any changes to this policy. The
Audit Committee has assessed the performance of the
External Auditor and advised to the Supervisory Board to
re-appoint the External Auditor in 2011 for another
period of three years.
Fees KPMG
in millions of euros
2008 2009 2010
Audit fees 17.3 16.3 16.4
- consolidated financial statements 12.5 11.1 10.6
- statutory financial statements 4.8 5.2 5.8
Audit-related fees 4.4 1.2 2.3
- acquisitions and divestments 2.3 0.2 1.0
- other 2.1 1.0 1.3
Tax fees 1.2 0.9 0.4
- tax compliance services 1.2 0.9 0.4
Other fees 2.5 1.3 1.3
- royalty investigation 1.8 0.6 0.3
- sustainability and other services 0.7 0.7 1.0
Total 25.4 19.7 20.4
This table ‘Fees KPMG’ forms an integral part of the
Company financial statements, please refer to note J.
In 2010, the Audit Committee periodically discussed the
company’s policy on business controls, the GBP including
the deployment thereof and amendments thereto, and
Philips’ major areas of risk, including the internal auditor’s
reporting thereon. The Audit Committee was informed
on, discussed and monitored closely the company’s
internal control certification processes, in particular
compliance with section 404 of the US Sarbanes-Oxley
Act and its requirements regarding assessment, review
and monitoring of internal controls. It also discussed risk
management, tax issues, IT strategy, litigation and related
provisions, environmental exposures and financing and
liquidity of the company, dividend, pensions (including the
developments at the Philips Pension Fund in the
Netherlands and the governance and financial position of
other major pension funds), valuation and performance of
financial holdings and recent acquisitions, developments in
regulatory investigations, including several investigations
into possible anticompetitive activities, as well as a
financial evaluation of the investments made in 2007.
Financial statements 2010
The financial statements of Koninklijke Philips Electronics
N.V. for 2010, as presented by the Board of Management,
have been audited by KPMG Accountants N.V.,
independent auditors. Their reports have been included in
the section Group financial statements; section 13.12,
Independent auditor’s report - Group, of this Annual
Report and the section Company financial statement;
section 14.5, Independent auditor’s report - Company, of
this Annual Report. We have approved these financial
statements, and all individual members of the Supervisory
Board (together with the members of the Board of
Management) have signed these documents.
We recommend to shareholders that they adopt the 2010
financial statements. We likewise recommend to
shareholders that they adopt the proposal of the Board of
Management to pay a dividend of EUR 0.75 per common
share (up to EUR 710 million), in cash or in shares at the
option of the shareholder, against the net income for
2010.
Finally, we would like to express our thanks to the
members of the Board of Management, the Group
Management Committee and all other employees for
their continued contribution during the year.
February 17, 2011
The Supervisory Board