Philips 2013 Annual Report Download - page 45

4 Group performance 4.1.10 - 4.1.13
Annual Report 2013 45
The Company’s participation in income increased from
a loss of EUR 5 million in 2012 to a gain of EUR 5 million
in 2013. The gain in 2013 was mainly attributable to the
results of Philips Medical Capital, while the loss in 2012
was mainly due to the results of EMGO.
For further information, refer to note 6, Interests in
entities.
4.1.10 Non-controlling interests
Net income attributable to non-controlling interests
amounted to EUR 3 million in 2013, compared to EUR 5
million in 2012.
4.1.11 Discontinued operations
Discontinued operations consist of the Audio, Video,
Multimedia and Accessories (AVM&A) business, the
Television business and certain divestments formerly
reported as discontinued operations. The results
related to these businesses are reported under
Discontinued operations in the Consolidated
statements of income and Consolidated statements of
cash flows.
Philips had reached an agreement to transfer the
AVM&A business to Funai Electric Co. Ltd in Q1 2013.
This agreement was terminated on October 25, 2013.
Since then, Philips has received expressions of interest
in the business from various parties and has been
actively discussing the sale of the business with
potential buyers. In the meantime, the AVM&A business
operates as a standalone entity named WOOX
Innovations.
The Television business was divested as part of a
strategic partnership agreement with TPV Technology
Ltd (TPV) that was signed on April 1, 2012. Philips
retained a 30% interest in TP Vision Holdings BV (TP
Vision venture). On January 20, 2014, Philips
announced that it has signed a term sheet to transfer
the remaining 30% stake in TP Vision to TPV.
After completion, TPV will fully own TP Vision, which
will enable further integration with TPV’s TV business.
Income from discontinued operations decreased by
EUR 45 million to EUR 2 million in 2013. The decrease
was mainly attributable to lower operational results
and higher disentanglement costs in the AVM&A
business. In 2012, income from discontinued operations
of EUR 47 million was composed of EUR 78 million of
net income related to AVM&A, partly oset by a EUR 31
million net loss related to the Television business.
For further information, refer to note 7, Discontinued
operations and other assets classified as held for sale.
4.1.12 Net income
Net income increased from a net loss of EUR 30 million
in 2012 to a net profit of EUR 1,172 million in 2013. The
increase was largely due to EUR 1,343 million higher
EBIT and better results relating to investments in
associates of EUR 186 million, oset by higher income
tax charges of EUR 281 million.
Basic earnings per common share from net income
attributable to shareholders increased from negative
EUR 0.04 per common share in 2012 to EUR 1.28 per
common share in 2013.
4.1.13 Acquisitions and divestments
Acquisitions
In 2013, there were four minor acquisitions. Acquisitions
in 2013 and previous years led to post-merger
integration charges totaling EUR 16 million in 2013:
Healthcare EUR 6 million, Consumer Lifestyle EUR 4
million, and Lighting EUR 6 million.
In 2012, Philips completed the acquisition of Indal
within Lighting. 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, 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. Acquisitions in 2011
and previous years led 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.
Divestments
During 2013, Philips completed several divestments of
business activities, mainly related to certain Healthcare
activities.
During 2012, Philips completed several divestments of
business activities, namely the Television business (for
further information see note 7, 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.