Philips 2014 Annual Report Download - page 225

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Reconciliation of non-GAAP information 15
Annual Report 2014 225
15 Reconciliation of non-GAAP
information
Explanation of Non-GAAP measures
Koninklijke Philips N.V. (the ‘Company’) believes that an understanding of sales performance is enhanced when the
eects of currency movements and acquisitions and divestments (changes in consolidation) are excluded. Accordingly,
in addition to presenting ‘nominal growth’, ‘comparable growth’ is provided.
Comparable sales growth
Comparable sales exclude the eects of currency movements and changes in consolidation. As indicated in the note 1,
Signicant accounting policies, sales and income are translated from foreign currencies into the Company’s reporting
currency, the euro, at the exchange rate on transaction dates during the respective years. As a result of signicant
currency movements during the years presented, the eects of translating foreign currency sales amounts into euros
could have a material impact. Therefore, these impacts have been excluded in arriving at the comparable sales in euros.
Currency eects have been calculated by translating previous years’ foreign currency sales amounts into euros at the
following year’s exchange rates in comparison with the sales in euros as historically reported. Years under review were
characterized by a number of acquisitions and divestments, as a result of which activities were consolidated or
deconsolidated. The eect of consolidation changes has also been excluded in arriving at the comparable sales. For the
purpose of calculating comparable sales growth, when a previously consolidated entity is sold or contributed to a
venture that is not consolidated by the Company, relevant sales are excluded from impacted prior-year periods. Similarly,
when an entity is acquired, relevant sales are excluded from impacted periods.
Philips Group
Sales growth composition per sector in %
2012 - 2014
comparable growth currency eects
consolidation
changes nominal growth
2014 versus 2013
Healthcare (2.0) (1.6) (0.5) (4.1)
Consumer Lifestyle 5.8 (3.1) 0.0 2.7
Lighting (2.6) (2.3) 1.0 (3.9)
Innovation, Group & Services (11.8) (0.1) 2.9 (9.0)
Philips Group (0.9) (2.0) 0.2 (2.7)
2013 versus 2012
Healthcare 0.8 (4.6) (0.3) (4.1)
Consumer Lifestyle 10.0 (3.4) 0.0 6.6
Lighting 1.3 (3.5) 0.0 (2.2)
Innovation, Group & Services (0.3) (0.4) 6.4 5.7
Philips Group 2.7 (3.9) 0.1 (1.1)
2012 versus 2011
Healthcare 6.4 6.4 0.0 12.8
Consumer Lifestyle 8.7 4.4 1.4 14.5
Lighting 3.6 4.4 2.5 10.5
Innovation, Group & Services (5.6) 1.7 (4.5) (8.4)
Philips Group 5.5 5.2 0.9 11.6