Philips 2010 Annual Report Download - page 248

20 Forward-looking statements and other information 20 - 20
248 Annual Report 2010
20 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 section 5.6, Outlook, of 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
chapter 7, Risk management, of this Annual Report.
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 2010 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 quoted
prices or observable market values do 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 chapter 16, Reconciliation of non-GAAP information, of this
Annual Report.
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).
Analysis of 2009 compared to 2008
The analysis of the 2009 financial results compared to 2008, 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 2010, which will be filed electronically with the US
Securities and Exchange Commission.