Philips 2011 Annual Report Download - page 40

5 Group performance 5.1.8 - 5.1.11
40 Annual Report 2011
Results of investments in associates
in millions of euros
2009 2010 2011
Company’s participation in income 23 14 18
Results on sale of shares − 5 −
(Reversal of) investment impairment
and other charges 54 (1) (2)
77 18 16
The company’s participation in income increased from
EUR 14 million in 2010 to EUR 18 million in 2011, mainly
attributable to results on Intertrust.
For further information, refer to note 4, Investments in
associates.
5.1.8 Non-controlling interests
Net income attributable to non-controlling interests
amounted to EUR 4 million in 2011, compared to EUR 6
million in 2010.
5.1.9 Discontinued operations
In connection with the announcement made on April 18th
of the Television long-term strategic partnership with
TPV Technology Limited, the results of the Television
business are reported separately as discontinued
operations. Consequently, the related results, including
transaction gains and losses, are shown separately in the
financial statements under Discontinued operations.
The loss from discontinued operations of EUR 515 million
was mainly due to the transaction loss recorded in
connection with the sale of our Television business of
EUR 353 million (after tax), which included a provision for
an onerous contract for the loss recognized upon signing
the agreement with TPV, accruals for the expected costs
of disentanglement and value adjustments to assets. In
addition, the net operational results of the business were
an after-tax loss of EUR 162 million. The transaction is
expected to close in the first quarter of 2012.
For further information, refer to note 5, Discontinued
operations and other assets classified as held for sale.
5.1.10 Net income
Net income decreased from EUR 1,452 million in 2010 to
a negative EUR 1,291 million in 2011. The decrease was
largely due to EUR 2,349 million lower EBIT and EUR 489
million higher costs related to discontinued operations,
partly offset by EUR 216 million lower income tax charges.
Net income attributable to shareholders per common
share decreased from EUR 1.54 per common share in
2010 to negative EUR 1.36 per common share in 2011.
5.1.11 Acquisitions and divestments
In 2011, Philips completed six strategically-aligned
acquisitions, benefiting all three operating sectors.
In 2011, acquisitions resulted in post-merger integration
charges totaling EUR 74 million: Healthcare EUR 17
million, Consumer Lifestyle EUR 45 million, and Lighting
EUR 12 million.
In 2010, acquisitions led to post-merger integration
charges totaling EUR 70 million: Healthcare EUR 29
million, Consumer Lifestyle EUR 18 million, and Lighting
EUR 23 million.
For further information, refer to note 7, Acquisitions and
divestments.
Acquisitions
Within Healthcare, we completed three acquisitions to
expand our global presence and expand our capabilities:
Sectra, AllParts Medical and Dameca. In Sweden, we
acquired the mammography equipment line of Sectra. We
acquired Denmark-based Dameca, a global provider of
anesthesia machines and accessories for the operating
room. In the US, we acquired AllParts Medical, a provider
of imaging equipment parts and training that expands our
capabilities in imaging equipment services.
Within Consumer Lifestyle, Philips completed two
acquisitions that underline the importance Philips attaches
to building business creation capabilities in growth
geographies. In India, we acquired the assets of the Preethi
business, a leading kitchen appliances company in India. In
China, we acquired Povos, a leading kitchen appliances
company in China.
Within Lighting, Philips acquired Optimum Lighting,
strengthening its position within energy-efficient
professional lighting solutions in North America.
In 2010, we completed eleven acquisitions. Healthcare
acquisitions included Somnolyzer, Tesco, Apex, CDP
Medical, Wheb Sistemas and medSage Technologies.
Within Lighting, Philips completed the acquisitions of
Luceplan, Burton, Street Lighting Controls from Amplex
A/S and NCW. Within Consumer Lifestyle, Philips
acquired Discus.