Philips 2015 Annual Report Download - page 237

Forward-looking statements and other information 19
Annual Report 2015 237
19 Forward-looking statements
and other information
Forward-looking statements
This document contains certain forward-looking
statements with respect to the financial 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 identified
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 differ 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, developments
within the euro zone, the successful implementation of our
strategy and our ability to realize the benefits 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,
and the state of international capital markets as they may
affect the timing and nature of the dispositions by Philips
of its interests in the Lighting business and the Lumileds and
Automotive business.
As a result, Philips’ actual future results may differ 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 differ 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 2015 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 financial 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
significant assumptions with respect to future
developments which are inherently uncertain and may
therefore deviate from actual developments. Critical
assumptions used are disclosed in the financial statements.
In certain cases, independent valuations are obtained to
support management’s determination of fair values.
IFRS basis of presentation
The financial information included in this document is
based on IFRS, as explained in the significant 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 financial
position, operating results and cash flows, management
uses certain non-GAAP financial measures like: comparable
growth; EBITA; NOC; net debt (cash); free cash flow; and
cash flow before financing activities. These non-GAAP
financial 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 financial statements and Company
financial statements contain the statutory financial
statements of the Company.
The introduction to the chapter Group financial 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).