Philips 2014 Annual Report Download - page 243

Forward-looking statements and other information 19
Annual Report 2014 243
19 Forward-looking statements
and other information
Forward-looking statements
This document contains certain forward-looking
statements with respect to the nancial condition,
results of operations and business of Philips and certain
of the plans and objectives of Philips with respect to
these items, in particular section 5.5, Outlook, of this
Annual Report. Examples of forward-looking
statements include statements made about our
strategy, estimates of sales growth, future EBITA and
future developments in our business. Forward-looking
statements can be identied generally as those
containing words such as “anticipates”, “assumes”,
“believes”, “estimates”, “expects”, “should”, “will”, “will
likely result”, “forecast”, “outlook”, “projects”, “may” or
similar expressions. By their nature, forward-looking
statements involve risk and uncertainty because they
relate to future events and circumstances and there are
many factors that could cause actual results and
developments to dier materially from those expressed
or implied by these forward-looking statements.
These factors include, but are not limited to, domestic
and global economic and business conditions, the
successful implementation of our strategy and our
ability to realize the benets of this strategy, our ability
to develop and market new products, changes in
legislation, legal claims, changes in exchange and
interest rates, changes in tax rates, pension costs and
actuarial assumptions, raw materials and employee
costs, our ability to identify and complete successful
acquisitions and to integrate those acquisitions into our
business, our ability to successfully exit certain
businesses or restructure our operations, the rate of
technological changes, political, economic and other
developments in countries where Philips operates,
industry consolidation and competition. As a result,
Philips’ actual future results may dier materially from
the plans, goals and expectations set forth in such
forward-looking statements. For a discussion of factors
that could cause future results to dier from such
forward-looking statements, see also chapter 7, Risk
management, of this Annual Report.
Third-party market share data
Statements regarding market share, contained in this
document, including those regarding Philips’
competitive position, are based on outside sources
such as specialized research institutes, industry and
dealer panels in combination with management
estimates. Where full-year information regarding 2014
is not yet available to Philips, those statements may
also be based on estimates and projections prepared
by outside sources or management. Rankings are based
on sales unless otherwise stated.
Fair value information
In presenting the Philips Group’s nancial position, fair
values are used for the measurement of various items
in accordance with the applicable accounting
standards. These fair values are based on market prices,
where available, and are obtained from sources that are
deemed to be reliable. Readers are cautioned that
these values are subject to changes over time and are
only valid at the balance sheet date. When quoted
prices or observable market values do not exist, fair
values are estimated using valuation models, which we
believe are appropriate for their purpose. They require
management to make signicant assumptions with
respect to future developments which are inherently
uncertain and may therefore deviate from actual
developments. Critical assumptions used are disclosed
in the nancial statements. In certain cases,
independent valuations are obtained to support
management’s determination of fair values.
IFRS basis of presentation
The nancial information included in this document is
based on IFRS, as explained in the signicant
accounting policies, unless otherwise indicated. As
used in this document, the term EBIT has the same
meaning as Income from operations (IFO).
Use of non-GAAP information
In presenting and discussing the Philips Group’s
nancial position, operating results and cash ows,
management uses certain non-GAAP nancial
measures like: comparable growth; EBITA; NOC; net
debt (cash); free cash ow; and cash ow before
nancing activities. These non-GAAP nancial
measures should not be viewed in isolation as
alternatives to the equivalent GAAP measures.
Further information on non-GAAP information and a
reconciliation of such measures to the most directly
comparable GAAP measures can be found in chapter
15, Reconciliation of non-GAAP information, of this
Annual Report.
Statutory nancial statements and management
report
The chapters Group nancial statements and Company
nancial statements contain the statutory nancial
statements of the Company.
The introduction to the chapter Group nancial
statements sets out which parts of this Annual Report
form the management report within the meaning of
Section 2:391 of the Dutch Civil Code (and related
Decrees).