Philips 2012 Annual Report Download - page 45

5 Group performance 5.1.19 - 5.1.21
Annual Report 2012 45
to EUR 768 million, EUR 106 million in proceeds from
divestments, including EUR 87 million from the sale of
stakes.
Cash balance movements
in millions of euros
6,000
4,000
2,000
0
3,147
2011
36
Divestments1)
1,723
Free cash flow2)
(98)
Other3)
731
Debt
(426)
Acquisitions4)
(768)
Treasury share
transaction
(255)
Dividend
(256)
Discontinued
operations
3,834
2012
1) Includes proceeds from divestment of CL Speech Processing business
2) Please refer to chapter 15, Reconciliation of non-GAAP information, of this Annual Report
3) Includes cash inflow for derivatives, partly offset by unfavorable currency effect
4) Acquisitions of businesses and financial assets include the acquisitions of Indal and the venture with TPV
5.1.19 Debt position
Total debt outstanding at the end of 2012 was EUR 4,534
million, compared with EUR 3,860 million at the end of
2011.
Changes in debt
in millions of euros
2010 2011 2012
New borrowings (212) (454) (1,361)
Repayments 78 1,314 630
Consolidation and currency effects (257) (62) 57
Total changes in debt (391) 798 (674)
In 2012, total debt increased by EUR 674 million. New
borrowings of EUR 1,361 million included the issuance of
USD 1.5 billion in bonds. Repayment of EUR 630 million
included early redemption of a USD 500 million bond.
Other changes resulting from consolidation and currency
effects led to a decrease of EUR 57 million.
In 2011, total debt decreased by EUR 798 million. The
repayment of EUR 1,314 million included redemptions of
a EUR 750 million bond, a USD 350 million bond, and EUR
217 million repayment of short-term debt. New
borrowing and finance leases amounted to EUR 454
million. Other changes resulting from consolidation and
currency effects led to an increase of EUR 62 million.
Long-term debt as a proportion of the total debt stood at
82% at the end of 2012 with an average remaining term
of 12.7 years, compared to 85% and 10.4 years at the end
of 2011.
For further information, please refer to note 19, Long-
term debt and short-term debt.
5.1.20 Net debt to group equity
Philips ended 2012 in a net debt position (cash and cash
equivalents, net of debt) of EUR 700 million, compared to
a net debt position of EUR 713 million at the end of 2011.
Net debt (cash) to group equity1)
in billions of euros ■-net debt (cash)--■-group equity2)
20
15
10
5
0
(5)
0.6
15.6
4 : 96
2008
(0.1)
14.6
(1) : 101
2009
(1.2)
15.1
(8) : 108
2010
0.7
12.4
5 : 95
2011
0.7
11.2
6 : 94
2012
ratio:
1) For a reconciliation to the most directly comparable GAAP measures, see
chapter 15, Reconciliation of non-GAAP information, of this Annual Report
2) Shareholders’ equity and non-controlling interests
5.1.21 Shareholders’ equity
Shareholders’ equity decreased by EUR 1,176 million in
2012 to EUR 11,140 million at December 31, 2012. The
decrease was mainly as a result of EUR 816 million related
to the purchase of treasury shares and EUR 406 million
losses related to pension plans, partially offset by EUR 231
million net income. The dividend payment to shareholders
in 2012 reduced equity by EUR 259 million. The decrease
was partially offset by a EUR 50 million increase related