Philips 2012 Annual Report Download - page 186

13 Company financial statements 13.5 - 13.5
186 Annual Report 2012
The deal for the Audio, Multimedia and Accessories businesses is
expected to close second half of 2013. The Video business is expected
to transfer in 2017, related to existing intellectual property licensing
agreements. The gain on the transaction will be recorded at the closing
date.
The transaction is subject to customary conditions, including regulatory
and works council procedures.
Renewal of EUR 1.8 billion stand-by facility
On 18 January 2013, the Company extended its EUR 1.8 billion stand-
by facility for 2 years until February 18, 2018. The facility has no financial
covenants and repetitive material adverse change clauses and can be
used for general corporate purposes.
Philips intends to sell its shareholding in Philips-Neusoft
Medical Systems joint venture to Neusoft Medical Systems
On February 5, Philips announced that it has entered into a term sheet
to sell its 51 percent shareholding in the Philips-Neusoft Medical
Systems (PNMS) joint venture between Philips and Neusoft Medical
Systems, a subsidiary of Neusoft Corporation, in Shenyang, China, to
Neusoft Medical Systems and its overseas associates.
As part of the proposed agreement, a team of approximately 100 to
150 Computed Tomography (CT) system and component engineers
and supporting staff will transfer from the joint venture to a new
development center of Philips in Shenyang.
Financial details of the proposed transaction were not disclosed. The
signing of the definitive agreements and subsequent closing is expected
to take place before the end of 2013. The closing of the transaction is
subject to the relevant shareholder and regulatory approvals.
February 25, 2013
The Supervisory Board
The Board of Management
13.5 Independent auditor’s report - Company
Independent auditor’s report
To the Supervisory Board and Shareholders of Koninklijke Philips
Electronics N.V.:
Report on the Company financial statements
We have audited the accompanying Company financial statements 2012
which are part of the financial statements of Koninklijke Philips
Electronics N.V., Eindhoven, the Netherlands, and comprise the
Company balance sheet as at December 31, 2012, the Company
statements of income and changes in equity for the year then ended,
and the notes, comprising a summary of the accounting policies and
other explanatory information as included in section 13 to 13.4.
Management’s responsibility
The Board of Management is responsible for the preparation and fair
presentation of these Company financial statements and for the
preparation of the Management report, both in accordance with Part
9 of Book 2 of the Dutch Civil Code. Furthermore, management is
responsible for such internal control as it determines is necessary to
enable the preparation of the Company financial statements that are
free from material misstatement, whether due to fraud or error.
Auditor’s responsibility
Our responsibility is to express an opinion on these Company financial
statements based on our audit. We conducted our audit in accordance
with Dutch law, including the Dutch Standards on Auditing. This
requires that we comply with ethical requirements and plan and
perform the audit to obtain reasonable assurance about whether the
Company financial statements are free from material misstatement.
An audit involves performing procedures to obtain audit evidence
about the amounts and disclosures in the Company financial
statements. The procedures selected depend on the auditor’s
judgment, including the assessment of the risks of material
misstatement of the Company financial statements, whether due to
fraud or error. In making those risk assessments, the auditor considers
internal control relevant to the entity’s preparation and fair
presentation of the Company financial statements in order to design
audit procedures that are appropriate in the circumstances, but not for
the purpose of expressing an opinion on the effectiveness of the entity’s
internal control. An audit also includes evaluating the appropriateness
of accounting policies used and the reasonableness of accounting
estimates made by management, as well as evaluating the overall
presentation of the Company financial statements.
We believe that the audit evidence we have obtained is sufficient and
appropriate to provide a basis for our audit opinion.
Opinion
In our opinion, the Company financial statements give a true and fair
view of the financial position of Koninklijke Philips Electronics N.V. as
at December 31, 2012, and of its result for the year then ended in
accordance with Part 9 of Book 2 of the Dutch Civil Code.
Report on other legal and regulatory requirements
Pursuant to the legal requirements under Section 2:393 sub 5 at e and f
of the Dutch Civil Code, we have no deficiencies to report as a result of
our examination whether the Management report, to the extent we
can assess, as defined in the introduction paragraph of section 12 Group
financial statements, has been prepared in accordance with part 9 of
Book 2 of this Code, and if the information as required under Section
2:392 sub 1 at b - h has been annexed. Further, we report that the
Management report, to the extent we can assess, is consistent with the
Company financial statements as required by Section 2:391 sub 4 of the
Dutch Civil Code.
Amsterdam, The Netherlands
February 25, 2013
KPMG Accountants N.V.
J.F.C. van Everdingen RA