Philips 2010 Annual Report Download - page 240

18 Investor Relations 18.3 - 18.3
240 Annual Report 2010
months the holding of BlackRock Inc. moved around the
5% threshold and was reduced to below 5% as of October
18, 2010.
Based on a survey in September 2010 and information
provided by several large custodians, the following
shareholder portfolio information is included in the
graphs Shareholder by region and Shareholders by style.
Shareholders by region (estimated)1)
in %
North America
42
Western Europe
55
Other
3
1) Split based on identified shares in shareholder identification
Shareholders by style (estimated)1)
in %
Growth
15
Value
27
GARP
21
2)
Index
10
Yield
6
Retail
7
Other
14
1) Split based on identified shares in shareholder identification
2) GARP: growth at reasonable price
Share repurchase programs for capital
reduction purposes
On July 17, 2006, Philips announced a further EUR 1.5
billion share repurchase program, which was expanded to
EUR 4.0 billion on August 3, 2006. Philips completed EUR
2.4 billion of this program in 2006.
Philips planned to execute the remaining EUR 1.6 billion
via a program using a second trading line on Euronext
Amsterdam, which started on January 22, 2007. Through
this second trading line EUR 0.8 billion worth of shares
were purchased in 2007.
In December 2007, the Dutch parliament adopted an
amendment to Dutch tax legislation, effective January 1,
2008, that increased the amount that companies may
spend on repurchasing shares free of withholding tax.
Subsequently, Philips announced that it planned to
repurchase EUR 5 billion worth of common Philips shares.
As a consequence of this new share repurchase program,
which includes the portion of the second trading line
program that had yet to be completed, Philips terminated
its second trading line.
At the end of 2008 share repurchases totaling EUR 3.3
billion, or two-thirds of the planned EUR 5.0 billion, had
been completed. Given the economic conditions in 2008,
we announced on January 26, 2009 that, in line with our
prudent financial management, we would suspend the
share repurchase program until further notice.
Further details on the share repurchase programs can be
found on the Investor Relations website. For more
information see chapter 12, Corporate governance, of
this Annual Report.
In 2008 the Company started the procedure for the
cancellation of Philips shares acquired pursuant to the
EUR 5.0 billion share repurchase program. The
cancellation has been effected in several tranches.
Impact of share repurchases on share count
in millions of shares
2006 2007 2008 2009 2010
Shares issued 1,143 1,143 972 972 986
Shares in treasury 36 78 49 45 39
Shares outstanding 1,107 1,065 923 927 947
Shares repurchased 102 26 146 − −
Shares cancelled 173 − 170 − −