Philips 2014 Annual Report Download - page 232

Investor Relations 17
232 Annual Report 2014
17 Investor Relations
17.1 Key nancials and dividend policy
Prior-period nancial information has been restated for
the treatment of the combined businesses of Lumileds
and Automotive as discontinued operations (see note 3,
Discontinued operations and other assets classied as
held for sale) and for two voluntary accounting policy
changes (see note 1, Signicant accounting policies).
Key nancials
Net income attributable to shareholders of Koninklijke
Philips N.V. in 2014 showed a gain of EUR 415 million, or
EUR 0.45 per common share (diluted; basic EUR 0.45
per common share). This compares to a gain of EUR
1,169 million, or EUR 1.27 per common share (diluted;
basic EUR 1.28 per common share), in 2013.
Philips Group
Net income attributable to shareholders in millions of EUR
2010 - 2014
1,295
‘10
1.36
(1,460)
‘11
(1.53)
(35)
‘12
(0.04)
1,169
‘13
1.27
415
Net income attributable
to shareholders
‘14
0.45
Per common share in
euros - diluted
Philips Group
EBIT and EBITA 1) in millions of EUR
2010 - 2014
1,569
410
1,979
‘10
(542)
1,876
1,334
‘11
592
411
1,003
‘12
1,855
421
2,276
‘13
486 EBIT
335 Amortization and impairment
821 EBITA
‘14
1) For a reconciliation to the most directly comparable GAAP measures,
see chapter 15, Reconciliation of non-GAAP information, of this Annual
Report
Philips Group
Free cash ow in millions of EUR
2010 - 2014
1,691
(543)
1,148
5.9%
‘10
610
(663)
(53)
(0.3)%
‘11
1,886
(241)
1,645
7.4%
‘12
912
(830)
82
0.4%
‘13
1,303 Operating cash flows
(806) Net capital expenditures
497 Free cash flow1)
2.3%
‘14
Free cash flow as
a % of sales
1) For a reconciliation to the most directly comparable GAAP measures,
see chapter 15, Reconciliation of non-GAAP information, of this Annual
Report
Dividend policy
We are committed to dividend stability and a 40% to
50% pay-out of continuing net income.
Continuing net income is the base gure used to
calculate the dividend payout for the year. For 2014, the
key exclusions from net income to arrive at continuing
net income are the following: the results that are shown
as discontinued operations, charges related to legal
matters, inventory write-downs and other charges
related to the voluntary suspension of production at the
Cleveland facility, an impairment and other charges
related to industrial assets at Lighting, and a past-
service pension cost gain in the Netherlands.
Restructuring and acquisition-related charges and the
result of the sale of the 30% stake in the TP Vision joint
venture are also excluded.
Proposed distribution
A proposal will be submitted to the 2015 Annual
General Meeting of Shareholders to declare a dividend
of EUR 0.80 per common share (up to EUR 735 million),
in cash or in shares at the option of the shareholder,
against the net income and retained earnings for 2014.
Shareholders will be given the opportunity to make
their choice between cash and shares between May 13,
2015, and June 5, 2015. If no choice is made during this
election period, the dividend will be paid in shares. On
June 5, 2015 after close of trading, the number of share
dividend rights entitled to one new common share will
be determined based on the volume-weighted average
price of all traded common shares of Koninklijke Philips
N.V. at Euronext Amsterdam on 3, 4 and 5 June, 2015.
The Company will calculate the number of share
dividend rights entitled to one new common share,
such that the gross dividend in shares will be