Philips 2014 Annual Report Download - page 30

Group performance 5.1.18
30 Annual Report 2014
5.1.18 Cash and cash equivalents
In 2014, cash and cash equivalents decreased by EUR
592 million to EUR 1,873 million at year-end. The
decrease was mainly attributable to an outow on cash
outows for treasury share transactions of EUR 596
million, cash dividend payout of EUR 292 million, EUR
301 million from decreases in debt and a EUR 258
million outow related to acquisitions. This was partly
oset by a EUR 497 million free cash ow.
Philips Group
Cash balance movements in millions of EUR
2014
2,4652013
+87Divestments
+4971) Free cash flow
+782) Other
-301Debt
-258Acquisitions
-596Treasury share transaction
-292Dividend
+193Discontinued operations
1,8732014
-592
1) Please refer to chapter 15, Reconciliation of non-GAAP information, of
this Annual Report
2) Includes cash ow for derivatives and currency eect
5.1.19 Debt position
Total debt outstanding at the end of 2014 was EUR 4,104
million, compared with EUR 3,901 million at the end of
2013.
Philips Group
Changes in debt in millions of EUR
2012 - 2014
2012 2013 2014
New borrowings (1,361) (64) (69)
Repayments 631 471 370
Currency eects and consolidation
changes 56 226 (504)
Changes in debt (674) 633 (203)
In 2014, total debt increased by EUR 203 million. New
borrowings of EUR 69 million consisted mainly of
replacements to lease contracts. Repayment of EUR
370 million included a EUR 250 million repayment of a
ve year loan. Other changes resulting from
consolidation and currency eects led to an increase of
EUR 504 million.
In 2013, total debt decreased by EUR 633 million. New
borrowings of EUR 64 million consisted mainly of
replacements to lease contracts. Repayment of EUR 471
million included a USD 143 million redemption on USD
bonds as well as payments on short-term debt. Other
changes resulting from consolidation and
currency eects led to a decrease of EUR 226 million.
Long-term debt as a proportion of the total debt stood
at 90% at the end of 2014 with an average remaining
term of 11.6 years, compared to 85% and 12.8 years at
the end of 2013.
For further information, please refer to note 18, Debt.
5.1.20 Shareholders’ equity
Shareholders’ equity decreased by EUR 347 million in
2014 to EUR 10,867 million at December 31, 2014. The
decrease was mainly a result of EUR 714 million related
to purchase shares for the share buy-back program and
coverage for the LTI program, partially oset by EUR 415
million net income and EUR 50 million of other
comprehensive income. The dividend payment to
shareholders in 2014 reduced equity by EUR 293 million
including tax and service charges, while the delivery of
treasury shares increased equity by EUR 116 million and
share-based compensation plans increased equity by
EUR 88 million.
The number of outstanding common shares of Royal
Philips at December 31, 2014 was 914 million (2013: 913
million). At the end of 2014, the Company held 17.1
million shares in treasury to cover the future delivery of
shares (2013: 20.7 million shares). This was in
connection with the 40.8 million rights outstanding at
the end of 2014 (2013: 44.3 million rights) under the
Company’s long-term incentive plans. At the end of
2014, the Company held 3.3 million shares for
cancellation (2013: 3.9 million shares).
5.1.21 Net debt to group equity
Philips ended 2014 in a net debt position (total debt less
cash and cash equivalents) of EUR 2,231 million,
compared to a net debt position of EUR 1,436 million at
the end of 2013.
Philips Group
Net debt (cash) to group equity1) in billions of EUR
2010 - 2014
(1.2)
15.1
‘10
(8) : 108
0.7
12.4
‘11
5 : 95
0.7
11.2
‘12
6 : 94
1.4
11.2
‘13
11 : 89
2.2 Net debt (cash)
11.0 Group equity2)
‘14
17 : 83 ratio
1) For a reconciliation to the most directly comparable GAAP measures,
see chapter 15, Reconciliation of non-GAAP information, of this Annual
Report
2) Shareholders’ equity and non-controlling interests