Philips 2015 Annual Report Download - page 229

Investor Relations 17.2
Annual Report 2015 229
Share repurchase programs
Share repurchases for capital reduction purposes
On September 17, 2013, Royal Philips announced a EUR
1.5 billion share repurchase program. This program
started on October 21, 2013 and will be completed by
October 2016. The shares repurchased under this
program will be held by Philips as treasury shares until
they are cancelled. Philips has entered into a
subsequent discretionary management agreement
with a bank to make the repurchase within the limits of
relevant laws and regulations (in particular EC
Regulation 2273/2003) and Philips’ articles of
association
.
By the end of 2015, Philips had completed 74% of the
EUR 1.5 billion share repurchase program.
Share repurchases related to Long-Term Incentive
(LTI) and employee stock purchase programs
To cover outstanding obligations resulting from past
and present long-term incentive (LTI) programs, Philips
repurchases additional Philips shares on NYSE
Euronext Amsterdam from time to time. The shares
repurchased to such LTI positions will be held by Philips
as treasury shares until these are distributed to
participants. In order to repurchase for covering LTI
programs, Philips may enter into discretionary
management agreements with one or more banks
within the limits of relevant laws and regulations (in
particular EC Regulation 2273/2003) and Philips’
articles of association.
Philips has not repurchased any shares for LTI coverage
in 2015. During 2016, Philips may consider to start share
repurchases for LTI coverage, the size of which will
depend on the movement of the Philips share price.
Further details on the share repurchase programs can
be found on the Investor Relations website. For more
information see chapter 11, Corporate governance, of
this Annual Report.
A total of 14,026,801 shares were held in treasury by the
Company at December 31, 2015 (2014: 20,430,544
shares). As of that date, a total of 39 million rights under
long-term incentive plans were outstanding (2014: 41
million).
Philips Group
Impact of share repurchases on share count in thousands of shares
2011 - 2015
2011 2012 2013 2014 2015
Shares issued 1,008,975 957,133 937,846 934,820 931,131
Shares in treasury 82,880 42,542 24,508 20,431 14,027
Shares outstanding 926,095 914,591 913,338 914,389 917,104
Shares repurchased 47,508 46,871 27,811 28,538 20,296
Shares cancelled - 82,365 37,779 21,838 21,361
Philips Group
Total number of shares purchased
2015
total number of shares
purchased
average price paid per
share in EUR
total number of shares
purchased as part of
publicly announced
programs
maximum EUR amount of
shares that may yet be
purchased under share
repurchases for capital
reduction purposes
January, 2015 2,453,000 24.12 2,453,000 831,305,431
February, 2015 1,667,000 25.28 1,667,000 789,158,522
March, 2015 1,658,000 26.49 1,658,000 745,246,053
April, 2015 1,254,000 26.76 1,254,000 711,690,985
May, 2015 2,317,000 24.78 2,317,000 654,264,258
June, 2015 1,706,816 24.31 1,706,816 612,769,082
July, 2015 892,700 23.86 892,700 591,469,324
August, 2015 1,592,000 24.12 1,592,000 553,070,885
September, 2015 2,143,500 22.17 2,143,500 505,559,920
October, 2015 1,208,000 22.41 1,208,000 478,493,624
November, 2015 1,371,000 24.70 1,371,000 444,634,342
December, 2015 2,033,000 24.16 2,033,000 395,526,396