Philips 2011 Annual Report Download - page 213

17 Investor Relations 17 - 17.1
Annual Report 2011 213
17 Investor Relations
17.1 Key financials and
dividend policy
Prior years results and cash flows have been restated to reflect the effect of
classifying the Television business as discontinued operations in 2011.
Net income and EPS
Net income of the Philips Group showed a loss of EUR
1,291 million, or EUR 1.36 per common share, compared
to a profit of EUR 1,452 million, or EUR 1.54 per common
share, in 2010.
Net income (loss)
in millions of euros
■-net income ----net income per share in euros
6,000
4,000
2,000
0
(2,000)
4.5
4,880
2007
(0.1)
(92)
2008
0.5
424
2009
1.5
1,452
2010 (1.4)
(1,291)
2011
EBIT and EBITA1)
in millions of euros
■-EBIT--■
■-EBITA
3,000
2,500
2,000
1,500
1,000
500
0
(500)
1,781
227
2,008
2007
296
691
987
2008
660
436
1,096
2009
2,080
482
2,562
2010
(269)
1,949
1,680
2011
1) For a reconciliation to the most directly comparable GAAP measures, see
chapter 15, Reconciliation of non-GAAP information, of this Annual Report
Operating cash flows
in millions of euros
■-net capital expenditure_■
■-free cash flows1)_■-operating cash flows
--free cash flow as a % of sales
3,000
2,000
1,000
0
(1,000)
(2,000)
1,431
(783)
648
3.1
2007
1,896
(786)
1,110
5.1
2008
1,391
(628)
763
3.8
2009
2,121
(765)
1,356
6.1
2010
836
(944)
(108)
(0.5)
2011
1) For a reconciliation to the most directly comparable GAAP measures, see
chapter 15, Reconciliation of non-GAAP information, of this Annual Report
Dividend policy
We are committed to a stable dividend policy with a 40%
to 50% pay-out of continuing net income.
Continuing net income, or net income excluding material
non-recurring items and discontinued operations, is the
base figure used to calculate the dividend payout for the
year. For 2011, the key exclusions used to arrive at
continuing net income are the results related to the
Television business of Consumer Lifestyle where we
signed a joint venture agreement with TPV and
consequently show these results as discontinued
operations. The impairment charges taken on goodwill
and other intangibles impairment charges in Q2 and Q4,
the curtailment in the UK Pension Fund, and restructuring
and post-acquisition charges are also excluded.
Proposed distribution
A proposal will be submitted to the 2012 Annual General
Meeting of Shareholders to declare a dividend of EUR 0.75
per common share, in cash or in shares at the option of
the shareholder, against the reserve retained earnings.
Such dividend is expected to result in a distribution with
a total value of EUR 695 million.
Shareholders will be given the opportunity to make their
choice between cash and shares between May 7, 2012,
and May 25, 2012 (US ends on May 24). If no choice is
made during this election period, the dividend will be paid
in shares. On May 25, 2012, after close of trading, the
number of share dividend rights entitled to one new
common share will be determined based on the volume-
weighted average price of all traded common shares of