Philips 2012 Annual Report Download - page 41

5 Group performance 5.1.11 - 5.1.13
Annual Report 2012 41
5.1.11 Discontinued operations
The Television business’s long-term strategic partnership
agreement with TPV was signed on April 1, 2012. The
results related to the Television business are reported
under Discontinued operations in the Consolidated
statements of income and Consolidated statements of
cash flows.
In 2012, the loss from discontinued operations of EUR 31
million was due to the net operational results of the
business. The transaction was finalized in the first quarter
of 2012.
In 2011, the loss from discontinued operations of EUR
515 million was mainly due to the transaction loss
recorded on the sale of our Television business of EUR
353 million (after tax), which included an onerous
contract provision 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.
For further information, refer to note 5, Discontinued
operations and other assets classified as held for sale.
5.1.12 Net income
Net income increased from negative EUR 1,291 million in
2011 to EUR 231 million in 2012. The increase was largely
due to EUR 1,299 million higher EBIT and EUR 484 million
lower costs related to discontinued operations, partly
offset by lower results relating to investments in
associates of EUR 230 million and higher income tax
charges of EUR 25 million.
Net income attributable to shareholders per common
share increased from negative EUR 1.36 per common
share in 2011 to EUR 0.25 per common share in 2012.
5.1.13 Acquisitions and divestments
In 2012, Philips completed one acquisition. Acquisitions in
2012 and previous years led to post-merger integration
charges totaling EUR 50 million in 2012: Healthcare EUR
18 million, Consumer Lifestyle EUR 18 million, and
Lighting EUR 14 million.
In 2011, Philips completed six acquisitions. Acquisitions in
2011 and previous years resulted to post-merger
integration charges totaling EUR 74 million in 2011:
Healthcare EUR 17 million, Consumer Lifestyle EUR 45
million, and Lighting EUR 12 million.
For further information, refer to note 7, Acquisitions and
divestments.
Acquisitions
In 2012, Philips completed the acquisition of Indal. This
acquisition fits in with Philips’ ambition to grow its
presence in professional lighting solutions, creating a
platform to expand its capabilities to deliver lighting
solutions and lead the transition to energy-efficient LED-
based lighting applications.
In 2011, we completed six acquisitions. Healthcare
acquisitions included Sectra, AllParts Medical and
Dameca. Within Consumer Lifestyle, Philips completed
the acquisition of Preethi and Povos. Within Lighting,
Philips acquired Optimum Lighting.
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.
Divestments
During 2012, Philips completed several divestments of
business activities, namely the Television business (for
further information see note 5, Discontinued operations
and other assets classified as held for sale), certain Lighting
manufacturing activities, Speech Processing activities and
certain Healthcare service activities. The Speech
Processing activities were sold to Invest AG, in line with
our strategy.
In 2012, Philips agreed to extend its partnership with Sara
Lee Corp (Sara Lee) to drive growth in the global coffee
market. Under a new exclusive partnership framework,
which will run through to 2020, Philips will be the
exclusive Senseo consumer appliance manufacturer and
distributor for the duration of the agreement. As part of
the agreement, Philips divested its 50% ownership right in
the Senseo trademark to Sara Lee.
In 2011, Philips completed several divestments of which
Assembléon was the most significant. Philips sold 80% of
the shares in Assembléon to H2 Equity Partners, an
Amsterdam-based private equity firm, for a consideration
of EUR 14 million.
In 2010, Philips completed several divestments of which
the sale of 9.4% of the shares in TPV Technology Ltd
(TPV) was the most significant. The TPV shares were sold
to CEIC Ltd., a Hong Kong-based technology company,
for a cash consideration of EUR 98 million.