Philips 2014 Annual Report Download - page 234

Investor Relations 17.1
234 Annual Report 2014
Philips Group
Exchange rate (used for translating Philips’ nancial
statements) EUR per USD
2010 - 2014
period end average high low
2010 0.7485 0.7540 0.8188 0.7036
2011 0.7728 0.7192 0.7728 0.6721
2012 0.7582 0.7776 0.8166 0.7500
2013 0.7255 0.7527 0.7805 0.7255
2014 0.8227 0.7527 0.8227 0.7201
17.2 Share information
Market capitalization
Philips’ market capitalization was EUR 22.1 billion at year-
end 2014. On December 31, 2014, the closing price for
Philips’ shares in Amsterdam was EUR 24.15 and the
number of common shares outstanding (after deduction
of treasury shares) amounted to 914,389 thousand.
Philips Group
Market capitalization in billions of EUR
2010 - 2014
22.1
Q1
23.3
Q2
21.8
Q3
21.7
Q4
‘10
21.3
Q1
17.2
Q2
12.7
Q3
15.1
Q4
‘11
13.9
Q1
14.5
Q2
16.8
Q3
18.2
Q4
‘12
20.9
Q1
19.2
Q2
21.8
Q3
24.3
Q4
‘13
23.3
Q1
21.4
Q2
23.2
Q3
22.1
Q4
‘14
Share capital structure
During 2014, Philips’ issued share capital decreased by
approximately 3 million common shares to a level of
935 million common shares. The main reasons for this
are the cancellation of 21,837,910 Philips shares
acquired pursuant to the EUR 1.5 billion share
repurchase program and the issuance of 18,811,534
shares related to the elective dividend. The number of
basic shares outstanding increased slightly from 913
million at the end of December 2013 to 914 million at
the end of 2014. As of December 31, 2014, the shares
held in treasury amounted to 20 million shares, of
which 17 million are held by Philips to cover long-term
incentive and employee stock purchase plans.
The Dutch Act on Financial Supervision imposes an
obligation on persons holding certain interests to
disclose (inter alia) percentage holdings in the capital
and/or voting rights in the Company when such
holdings reach, exceed or fall below 3, 5, 10, 15, 20, 25,
30, 40, 50, 60, 75 and 95 percent (as a result of an
acquisition or disposal by a person, or as a result of a
change in the company’s total number of voting rights
or capital issued). Certain cash-settled derivatives are
also taken into account when calculating the capital
interest. The statutory obligation to disclose capital
interest does not only relate to gross long positions, but
also to gross short positions. Required disclosures must
be made to the Netherlands Authority for the Financial
Markets (AFM) without delay. The AFM then noties
such disclosures to the Company and includes them in
a register which is published on the AFM’s website.
Furthermore, an obligation to disclose (net) short
positions is set out in the EU Regulation on Short
Selling.
On January 3, 2014 the Company received notification
from the AFM that it had received disclosure under the
Dutch Act on Financial Supervision of a substantial
holding of 3.08% by Norges Bank. On May 9, 2014 the
Company received notification from the AFM that it had
received disclosure under such Act of a substantial
holding of 3.02% by Harris Associates L.P. On February
3, 2015 the Company received notication from the
AFM that it had received disclosure under such Act of a
substantial holding of 3% by State Street Corporation.
Based on a survey in December 2014 and information
provided by several large custodians, the following
shareholder portfolio information is included in the
graphs Shareholders by region and Shareholders by
style.
Philips Group
Shareholders by region (estimated)1) in %
2014
48Western Europe
46North America
6Other
1) Split based on identied shares in shareholder identication
Philips Group
Shareholders by style (estimated)1) in %
2014
30Value
23Growth
14Index
8GARP2)
8Other
7SWF3)
6Retail
4Yield
1) Split based on identied shares in shareholder identication
2) GARP: growth at reasonable price
3) SWF: Sovereign Wealth Fund
Share repurchase programs
Share repurchases for capital reduction purposes
On September 17, 2013, Philips announced a new EUR
1.5 billion share repurchase program. This program
started on October 21, 2013 and is to be completed over