Philips 2015 Annual Report Download - page 34

Group performance 5.1.23
34 Annual Report 2015
Philips continues to recognize these liabilities as trade
payables and will settle the liabilities in line with the
original payment terms of the related invoices.
Other cash commitments
The Company and its subsidiaries sponsor post-
employment benet plans in many countries in
accordance with legal requirements, customs and the
local situation in the countries involved. For a
discussion of the plans and expected cash outows,
please refer to note 20, Post-employment benets.
The Company had EUR 297 million restructuring-
related provisions by the end of 2015, of which EUR 228
million is expected to result in cash outows in 2016.
Refer to note 19, Provisions for details of restructuring
provisions.
A proposal will be submitted to the upcoming Annual
General Meeting of Shareholders to declare a dividend
of EUR 0.80 per common share (up to EUR 740 million),
in cash or shares at the option of the shareholder,
against the net income for 2015 and retained earnings.
Further details will be given in the agenda for the
Annual General Meeting of Shareholders, to be held on
May 12, 2016.
Guarantees
Philips’ policy is to provide guarantees and other letters
of support only in writing. Philips does not provide other
forms of support. At the end of 2015, the total fair value
of guarantees recognized on the balance sheet
amounted to EUR nil million (December 31, 2014: EUR
nil million). Remaining o-balance-sheet business and
credit-related guarantees provided on behalf of third
parties and associates increased by EUR 16 million
during 2015 to EUR 37 million (December 31, 2014: EUR
21 million).
5.1.24 Analysis of 2014 compared to 2013
The analysis of the 2014 nancial results compared to
2013, and the discussion of the critical accounting
policies, have not been included in this Annual Report.
These sections are included in Philips’ Form 20-F for
the nancial year 2015, which will be led electronically
with the US Securities and Exchange Commission.
5.2 Social performance
Our businesses provide innovative solutions that
address major trends aecting the world – the demand
for aordable healthcare, the need for greater energy
eciency, resource scarcity, and the desire for personal
well-being.
Philips further strengthened its focus on sustainability
in 2015 through a number of initiatives described in the
Social and Environmental performance sections,
including the introduction of new products and
solutions and partnerships with the Red Cross and
UNICEF through the Philips Foundation.
Our people
At Philips, a key element of our vision is to oer the best
place to work for people who share our passion. Our
people are one of our unique strengths, and each one
of our employees is instrumental to Philips’ success.
Our strategy is based on the belief that every employee
at Philips has talent and can grow and contribute with
increasing impact, so we support all individuals in
driving their development. We believe that the best
place to work is an inclusive place to work, and we
celebrate and foster an inclusive culture where
everyone feels valued, respected, and where all of our
people can thrive.
Our company people strategy is directly linked to our
business strategy. In 2015, we continued on our path to
creating two winning stand-alone companies, including
ensuring the timely allocation of our employees to
either Royal Philips or to Philips Lighting. We also
continued to drive our Accelerate! transformation
through our growth and performance culture, where we
take ownership, we are eager to win, we team up to
excel, and we always act with integrity. Alongside these
behaviors, we focus on nurturing six competences
which accelerate our transformation, and we oer
related learning and development opportunities to all
employees through our Philips University.
“Philips people share a passion for improving
people’s lives through meaningful innovation, and
this passion has kept us all working together
towards our common mission and vision during the
past year. Throughout 2015, our people have
demonstrated that we are one Philips family, even if
we know that we will ultimately be part of Royal
Philips or of Philips Lighting. As CHRO, I am proud to
belong to Philips, and proud to be one of our Philips
people.”
Denise Haylor
Chief Human Resources Ocer
5.2.1 Improving people’s lives
At Philips, we strive to make the world healthier and
more sustainable through innovation. Our goal is to
improve the lives of 3 billion people a year by 2025. To
guide our eorts and measure our progress, we take a
two-dimensional approach – social and ecological – to
improving people’s lives. Products and solutions from
our portfolio that directly support the curative (care) or
preventive (well-being) side of people’s health
determine the contribution to the social dimension. As
healthy ecosystems are also needed for people to live
a healthy life, the contribution to the ecological
dimension is determined by means of our steadily
growing Green Product portfolio, such as our energy-
ecient lighting.
Through Philips products and solutions that directly
support the curative or preventive side of people’s
health, we improved the lives of 881 million people in
2015, driven by our Healthcare sector. Additionally, our