Philips 2013 Annual Report Download - page 246

17 Definitions and abbreviations 17 - 17
246 Annual Report 2013
17 Definitions and abbreviations
Base of the Pyramid
The base of the pyramid is the largest, but poorest socio-economic group.
In global terms, this is the 4 billion people who live on less than USD 2.50
per day.
BMC
Business Market Combination - As a diversified technology group, Philips
has a wide portfolio of categories/business innovation units which are
grouped in business groups based primarily on technology or customer
needs. Philips has physical market presence in over 100 countries, which
are grouped into 17 market clusters. Our primary operating modus is the
Business Market matrix comprising Business Groups and Markets. These
Business Market Combinations (BMCs) drive business performance on a
granular level at which plans are agreed between global businesses and
local market teams.
Brominated flame retardants (BFR)
Brominated flame retardants are a group of chemicals that have an
inhibitory eect on the ignition of combustible organic materials. Of the
commercialized chemical flame retardants, the brominated variety are
most widely used.
Compound annual growth rate (CAGR)
The CAGR is the average Comparable Sales calculated over a period of
more than one year. Compound comparable sales exclude the eect of
currency movements and acquisitions and divestments (changes in
consolidation) over the total period. Philips believes that CAGR
information enhances understanding of sales performance over a period
longer than a year.
CO2-equivalent
CO2-equivalent or carbon dioxide equivalent is a quantity that describes,
for a given mixture and amount of greenhouse gas, the amount of CO2 that
would have the same global warming potential (GWP), when measured
over a specified timescale (generally 100 years).
Cash flow before financing activities
The cash flow before financing activities is the sum of net cash flow from
operating activities and net cash flow from investing activities.
Chlorofluorocarbon (CFC)
A chlorofluorocarbon is an organic compound that contains carbon,
chlorine and fluorine, produced as a volatile derivative of methane and
ethane. CFCs were originally developed as refrigerants during the 1930s.
Comparable sales
Comparable sales exclude the eect of currency movements and
acquisitions and divestments (changes in consolidation). Philips believes
that comparable sales information enhances understanding of sales
performance.
Continuing net income
This equals recurring net income from continuing operations, or net
income excluding discontinued operations and excluding material non-
recurring items.
Dividend yield
The dividend yield is the annual dividend payment divided by Philips’
market capitalization. All references to dividend yield are as of December
31 of the previous year.
EBITA
Earnings before interest, tax and amortization (EBITA) represents income
from continuing operations excluding results attributable to non-
controlling interest holders, results relating to investments in associates,
income taxes, financial income and expenses, amortization and
impairment on intangible assets (excluding software and capitalized
development expenses). Philips believes that EBITA information makes
the underlying performance of its businesses more transparent by
factoring out the amortization of these intangible assets, which arises
when acquisitions are consolidated. In our Annual Report on form 20-F
this definition is referred to as Adjusted IFO.
EBITA per common share
EBITA divided by the weighted average number of shares outstanding
(basic). The same principle is used for the definition of net income per
common share, replacing EBITA.
Electronic Industry Citizenship Coalition (EICC)
The Electronic Industry Citizenship Coalition was established in 2004 to
promote a common code of conduct for the electronics and information
and communications technology (ICT) industry. EICC now includes more
than 40 global companies and their suppliers.
Employee Engagement Index (EEI)
The Employee Engagement Index (EEI) is the single measure of the overall
level of employee engagement at Philips. It is a combination of
perceptions and attitudes related to employee satisfaction, commitment
and advocacy.
Energy-using Products (EuP)
An energy-using product is a product that uses, generates, transfers or
measures energy (electricity, gas, fossil fuel). Examples are boilers,
computers, televisions, transformers, industrial fans, industrial furnaces
etc.
Free cash flow
Free cash flow is the net cash flow from operating activities minus net
capital expenditures.
Full-time equivalent employee (FTE)
Full-time equivalent is a way to measure a worker’s involvement in a
project. An FTE of 1.0 means that the person is equivalent to a full-time
worker, while an FTE of 0.5 signals that the worker is only half-time.
Global Reporting Initiative (GRI)
The Global Reporting Initiative (GRI) is a network-based organization that
pioneered the world’s most widely used sustainability reporting
framework. GRI is committed to the framework’s continuous improvement
and application worldwide. GRI’s core goals include the mainstreaming of
disclosure on environmental, social and governance performance.
Green Innovation
Green Innovation comprise all R&D activities directly contributing to the
development of Green Products or Green Technologies.