Philips 2015 Annual Report Download - page 45

Group performance 5.3.3
Annual Report 2015 45
a decrease in styrene emissions at two Lighting sites.
Lighting and Consumer Lifestyle have reduction
programs for restricted and hazardous substances.
Philips Group
Restricted and hazardous substances in kilos
2011 - 2015
2011 2012 2013 2014 2015
Restricted
substances 111 671) 371) 291) 26
Hazardous
substances 63,604 67,530 35,118 28,310 25,101
1) Numbers have been restated
For more details on restricted and hazardous
substances, please refer to sub-section 14.3.3, Green
Operations, of this Annual Report.
5.4 Proposed distribution to shareholders
Pursuant to article 34 of the articles of association of
Royal Philips, a dividend will rst be declared on
preference shares out of net income. The remainder of
the net income, after reservations made with the
approval of the Supervisory Board, shall be available
for distribution to holders of common shares subject to
shareholder approval after year-end. As of December
31, 2015, the issued share capital consists only of
common shares; no preference shares have been
issued. Article 33 of the articles of association of Royal
Philips gives the Board of Management the power to
determine what portion of the net income shall be
retained by way of reserve, subject to the approval of
the Supervisory Board.
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 in shares at the option of the shareholder,
against the net income for 2015 and retained earnings.
Shareholders will be given the opportunity to make
their choice between cash and shares between May 18,
2016 and June 10, 2016. If no choice is made during this
election period the dividend will be paid in shares. On
June 10, 2016 after close of trading, the number of share
dividend rights entitled to one new common share will
be determined based on the volume weighted average
price of all traded common shares Koninklijke Philips
N.V. at Euronext Amsterdam on June 8, 9 and 10, 2016.
The Company will calculate the number of share
dividend rights entitled to one new common share (the
‘ratio’), such that the gross dividend in shares will be
approximately equal to the gross dividend in cash. On
June 14, 2016 the ratio and the number of shares to be
issued will be announced. Payment of the dividend and
delivery of new common shares, with settlement of
fractions in cash, if required, will take place from June
15, 2016. The distribution of dividend in cash to holders
of New York Registry shares will be made in USD at the
USD/EUR rate xed by the European Central Bank on
June 13, 2016.
Dividend in cash is in principle subject to 15% Dutch
dividend withholding tax, which will be deducted from
the dividend in cash paid to the shareholders. Dividend
in shares paid out of net income and retained earnings
is subject to 15% dividend withholding tax, but only in
respect of the par value of the shares (EUR 0.20 per
share).
In 2015, a dividend of EUR 0.80 per common share was
paid in cash or shares, at the option of the shareholder.
For 59.2% of the shares, the shareholders elected for a
share dividend resulting in the issue of 17,671,990 new
common shares, leading to a 1.9% dilution. EUR 298
million was paid in cash. For additional information, see
chapter 17, Investor Relations, of this Annual Report.
The balance sheet presented in this report, as part of
the Company nancial statements for the period ended
December 31, 2015, is before appropriation of the result
for the nancial year 2015.
5.5 Outlook
For 2016, we continue to expect modest comparable
sales growth and we will build on our 2015 operational
performance improvement. Taking into account
ongoing macro-economic headwinds and the phasing
of costs and sales, we expect improvements in the year
to be back-end loaded.