SECURITIES AND EXCHANGE COMMISSION
Washington, D.C. 20549
FORM 6-K
REPORT OF FOREIGN ISSUER
Pursuant to Rule 13a-16 or 15d-16
of the Securities Exchange Act of 1934
January 30, 2018
KONINKLIJKE PHILIPS N.V.
(Exact name of registrant as specified in its charter)
Royal Philips
(Translation of registrants name into English)
The Netherlands
(Jurisdiction of incorporation or organization)
Breitner Center, Amstelplein 2, 1096 BC Amsterdam, The Netherlands
(Address of principal executive offices)
Indicate by check mark whether the registrant files or will file annual reports under cover Form 20-F or Form 40-F.
Form 20-F ☒ Form 40-F ☐
Indicate by check mark if the registrant is submitting the Form 6-K in paper as permitted by Regulation S-T Rule101(b)(1): ☐
Indicate by check mark if the registrant is submitting the Form 6-K in paper as permitted by Regulation S-T Rule101(b)(7): ☐
Indicate by check mark whether the registrant by furnishing the information contained in this Form is also thereby furnishing the information to the Commission pursuant to Rule 12g3-2(b) under the Securities Exchange Act of 1934.
Yes ☐ No ☒
Name and address of person authorized to receive notices
and communications from the Securities and Exchange Commission:
M.J. van Ginneken
Koninklijke Philips N.V.
Amstelplein 2
1096 BC Amsterdam The Netherlands
This report comprises a copy of the following press release:
Philips Fourth Quarter and Annual Results 2017, dated January 30, 2018.
Pursuant to the requirements of the Securities Exchange Act of 1934, the registrant has duly caused this report to be signed on its behalf, by the undersigned, thereunto duly authorized at Amsterdam, on the 30th day of January, 2018.
KONINKLIJKE PHILIPS N.V.
/s/ M.J. van Ginneken
(Chief Legal Officer)
Philips reports Q4 sales of EUR 5.3 billion, with 5% comparable sales growth; net income from continuing operations amounted to EUR 476 million and Adjusted EBITA margin increased 140 basis points to 16.7%
Amsterdam, January 30, 2018
Fourth-quarter highlights
| Sales amounted to EUR 5.3 billion, with comparable sales growth of 5% |
| Comparable order intake increased 7% compared to Q4 2016 |
| Net income from continuing operations, which included a one-time non-cash tax charge of EUR 72 million, increased to EUR 476 million, compared to EUR 465 million in Q4 2016 |
| Adjusted EBITA margin improved by 140 basis points to 16.7% of sales, compared to 15.3% of sales in Q4 2016 |
| Income from operations (EBIT) increased to EUR 723 million, compared to EUR 693 million in Q4 2016 |
| Operating cash flow totaled EUR 1,202 million, compared to EUR 758 million in Q4 2016; free cash flow increased to EUR 948 million, compared to EUR 551 million in Q4 2016 |
Full-year highlights
| Sales increased to EUR 17.8 billion, with comparable sales growth of 4% |
| Comparable order intake increased 6% compared to 2016 |
| Net income from continuing operations, which included a one-time non-cash tax charge of EUR 72 million, increased to EUR 1,028 million, compared to EUR 831 million in 2016 |
| Adjusted EBITA margin improved by 110 basis points to 12.1% of sales, compared to 11.0% of sales in 2016 |
| Income from operations (EBIT) amounted to EUR 1,517 million, compared to EUR 1,464 million in 2016 |
| Operating cash flow totaled EUR 1.9 billion, compared to EUR 1.2 billion in 2016; free cash flow increased to EUR 1,185 million, compared to EUR 429 million in 2016 |
| Proposal to maintain dividend at EUR 0.80 per share |
Frans van Houten, CEO:
2017 was a good year, as we continued the transformation of Philips into a focused leader in health technology and delivered on our improvement targets for the year. I am pleased that we delivered 4% comparable sales growth, an Adjusted EBITA margin increase of 110 basis points, and a strong EUR 1.2 billion free cash flow. We strengthened our strategic platforms through targeted acquisitions, introduced several breakthrough innovations, secured multiple long-term strategic partnerships, and we deconsolidated Philips Lighting as we decreased our shareholding to below 30%.
Philips performance in the fourth quarter demonstrates that we are gaining momentum. We finished 2017 on a firm note by delivering comparable order intake growth of 7%, and comparable sales growth of 5%, which was driven by our Personal Health businesses and Diagnosis & Treatment businesses. We achieved a strong Adjusted EBITA margin improvement of 140 basis points, driven by higher volumes, procurement and productivity savings, and increased free cash flow to EUR 948 million.
We further strengthened our portfolio through targeted acquisitions across the health continuum. The integration of these acquisitions is on track. I would like to highlight that the productivity improvements for Spectranetics are ahead of plan, and we successfully launched the Stellarex drug-coated balloon in the US. Furthermore, the integration of Volcano has been completed as planned. This business delivered high-teens comparable sales growth in 2017, driven by the strong performance of our diagnostic catheters, and we further improved gross margins by 10 percentage points in the past two years.
I am pleased that our organic growth initiatives are delivering tangible results, such as the strong order intake growth in our Digital Pathology Solutions business, the double-digit growth of our Sleep & Respiratory Care devices, and the continued success of Philips OneBlade. This revolutionary hybrid styler generated annual sales of more than EUR 100 million within 18 months of its launch.
We expect our markets to grow at 35% on a comparable basis in 2018. Combined with our strong order book, we are confident that we will deliver on our mid-term targets of 4-6% comparable sales growth and on average an annual 100 basis points improvement in Adjusted EBITA margin this year. Given the phasing of our order book, we expect improvements to be at the back end of the year.
Business segments
In the fourth quarter, all business segments continued to deliver operational improvements and increased profitability.
In the Diagnosis & Treatment businesses, comparable order intake increased by a strong 12%, driven by North America and China. Comparable sales increased by 6%, reflecting high-single-digit growth in Ultrasound and mid-single-digit growth in Image-Guided Therapy and Diagnostic Imaging. The Adjusted EBITA margin was 90 basis points higher compared to the same period last year, mainly driven by higher volumes, procurement savings and other cost productivity.
The 6% comparable sales growth of the Personal Health businesses was driven by high-single-digit growth in Health & Wellness and Sleep & Respiratory Care. The Adjusted EBITA margin improved by 70 basis points, driven by higher volume and procurement savings, partly offset by investments in advertising & promotion.
In the Connected Care & Health Informatics businesses, comparable sales increased by 2%, with high-single-digit growth in Healthcare Informatics and low-single-digit growth in Patient Care & Monitoring Solutions. The Adjusted EBITA margin improved by 190 basis points, partly driven by procurement savings and other cost productivity. Comparable order intake showed a low-single-digit decline in the quarter as certain expected large orders were postponed to 2018.
Philips ongoing focus on innovation through organic and inorganic growth initiatives resulted in the following highlights in the quarter:
| As part of Philips new introductions to drive growth in Diagnostic Imaging, the company launched its digital MR Prodiva 1.5T system, which provides enhanced clinical performance and increased productivity. Philips also introduced the latest configuration of its IQon Spectral CT, which is optimized to support the needs of emergency and oncology care. Moreover, since the third quarter, Philips has been shipping Vereos, the worlds first and only fully digital PET/CT system, which is achieving market success due to its superb resolution, accuracy and efficiency. |
| Philips strengthened its Radiology Solutions offering with the acquisition of Analytical Informatics. Their suite of workflow improvement applications complements Philips PerformanceBridge Practice to enable imaging departments to make data-driven improvement decisions. For example, Philips and Banner Health extended their partnership to include adoption of Philips PerformanceBridge Practice across Banners 28 radiology departments. |
| Philips signed several multi-year agreements including a 10-year agreement with Childrens Hospital & Medical Center of Omaha in the US to help drive innovation in pediatric care. The company also won a multi-modality tender at the University Hospital of Schleswig-Holstein to provide medical equipment for the hospitals radiology and neuroradiology departments. In addition, the German Armed Forces will adopt Philips Lumify app-based ultrasound solution as standard equipment for doctors and paramedics in emergency and rescue operations. |
| Expanding its health informatics portfolio, Philips acquired interoperability provider Forcare in the Netherlands. Philips also partnered with US-based Nuance to bring Artificial Intelligence into radiology reporting by leveraging functionalities from Philips Illumeo and Nuances PowerScribe 360. Furthermore, Philips launched its new IntelliSpace Enterprise Edition for Radiology, providing radiology departments with comprehensive tools to increase efficiency and enhance throughput. |
| In China, Philips partnered with Oranger, a service provider specialized in chronic respiratory disease management, and Health 100, the largest health examination organization in China, to provide integrated solutions for chronic respiratory diseases that cover screening, referral, treatment and recovery. |
| To further expand its Population Health Management business, Philips acquired VitalHealth, whose highly complementary portfolio of advanced analytics, care coordination, patient engagement and outcome management solutions will support Philips commitment to deliver integrated solutions for care providers. |
| As a driver of new care models, Philips teamed up with leading telehealth provider American Well to jointly deliver virtual care solutions around the world by embedding American Wells mobile telehealth services into an array of Philips solutions, starting with the Philips Avent uGrow parenting platform, giving parents 24/7 access to professional medical consultations. |
Quarterly report Q4 2017 | 2 |
| Strengthening its leadership in patient monitoring solutions, Philips received FDA 510(k) clearance to market the IntelliVue X3 patient monitor, which provides continuous monitoring for the most critical patients during in-hospital transport. The IntelliVue X3 already had CE marking and was released in Europe in mid-2017. |
Cost savings
Philips productivity programs delivered annual savings of EUR 483 million, ahead of the targeted savings of EUR 400 million. In the quarter, procurement savings amounted to EUR 81 million, led by the DfX program, while other productivity programs generated savings of EUR 52 million.
Capital allocation
Philips continues to progress with its EUR 1.5 billion share buyback program, which was initiated in the third quarter of 2017 for capital reduction purposes. Details about the transactions to date can be found here.
Regulatory update
Following the US Food and Drug Administration (FDA) inspection of the Cleveland facility (Illinois) in the third quarter of 2017, Philips submitted its response to the inspectional observations for review by the FDA. In December 2017, the company had a constructive meeting with the FDA. Philips will continue to drive its Quality Management System improvement program, and provide monthly status reports to the FDA highlighting the progress in addressing the observations.
On October 31, 2017, a US Federal court formally approved a consent decree that had been agreed to by Philips and the US government, as announced in Philips press release on October 11, 2017. Philips is proceeding in line with the terms of the consent decree, which include inspections by independent auditors. As planned, Philips has resumed shipments of its HS1 AEDs globally, as well as consumables, accessories and service parts for all of its defibrillators. Additionally, the company resumed shipments of its FRx and FR3 AEDs to a key market outside of the US in January 2018 and aims to expand these shipments to other markets outside of the US in the remainder of the first quarter of 2018.
Philips Lighting
As of December 31, 2017, Philips shareholding in Philips Lighting was 29.01% of Philips Lightings issued share capital. As a result, Philips no longer has control over Philips Lighting and has ceased to consolidate Philips Lighting. The remaining interest in Philips Lighting is presented as an investment included in Assets classified as held for sale in the financial statements of Royal Philips as from the end of November 2017. Philips net income in the fourth quarter included EUR 562 million related to Philips Lightings results in the fourth quarter until the date of deconsolidation and a deconsolidation gain, all of which is reported in Discontinued operations.
Philips Lighting will publish results for the fourth quarter and full year 2017 on February 2, 2018.
Conference call and audio webcast
Frans van Houten, CEO, and Abhijit Bhattacharya, CFO, will host a conference call for investors and analysts at 10:00 am CET today to discuss the results. A live audio webcast of the conference call will be available on the Philips Investor Relations website and can be accessed here.
Philips performance
* | Non-GAAP financial measure. Refer to Reconciliation of non-GAAP information, of this document. |
4 | Quarterly report Q4 2017 |
* | Non-GAAP financial measure. Refer to Reconciliation of non-GAAP information, of this document. |
Quarterly report Q4 2017 | 5 |
Performance per segment
* | Non-GAAP financial measure. Refer to Reconciliation of non-GAAP information, of this document. |
6 | Quarterly report Q4 2017 |
Connected Care & Health Informatics businesses
* | Non-GAAP financial measure. Refer to Reconciliation of non-GAAP information, of this document. |
Quarterly report Q4 2017 | 7 |
Discontinued operations
8 | Quarterly report Q4 2017 |
Quarterly report Q4 2017 | 9 |
Full-year highlights
Philips performance
* | Non-GAAP financial measure. Refer to Reconciliation of non-GAAP information, of this document. |
10 | Quarterly report Q4 2017 |
Quarterly report Q4 2017 | 11 |
Performance per segment
Personal Health businesses
* | Non-GAAP financial measure. Refer to Reconciliation of non-GAAP information, of this document. |
12 | Quarterly report Q4 2017 |
Connected Care & Health Informatics businesses
* | Non-GAAP financial measure. Refer to Reconciliation of non-GAAP information, of this document. |
Quarterly report Q4 2017 | 13 |
Discontinued operations
14 | Quarterly report Q4 2017 |
Forward-looking statements and other important information
Quarterly report Q4 2017 | 15 |
Condensed consolidated statements of income
Condensed consolidated statements of income in millions of EUR unless otherwise stated |
||||||||||||||||
Q4 | January to December | |||||||||||||||
2016 | 2017 | 2016 | 2017 | |||||||||||||
Sales |
5,306 | 5,303 | 17,422 | 17,780 | ||||||||||||
Cost of sales |
(2,824 | ) | (2,741 | ) | (9,484 | ) | (9,600 | ) | ||||||||
|
|
|
|
|||||||||||||
Gross margin |
2,482 | 2,563 | 7,939 | 8,181 | ||||||||||||
Selling expenses |
(1,166 | ) | (1,236 | ) | (4,142 | ) | (4,398 | ) | ||||||||
General and administrative expenses |
(173 | ) | (146 | ) | (658 | ) | (577 | ) | ||||||||
Research and development expenses |
(449 | ) | (461 | ) | (1,669 | ) | (1,764 | ) | ||||||||
Impairment of goodwill |
| | (1 | ) | (9 | ) | ||||||||||
Other business income |
7 | 27 | 17 | 152 | ||||||||||||
Other business expenses |
(9 | ) | (23 | ) | (22 | ) | (67 | ) | ||||||||
|
|
|
|
|||||||||||||
Income from operations |
693 | 723 | 1,464 | 1,517 | ||||||||||||
Financial income |
16 | 31 | 65 | 126 | ||||||||||||
Financial expenses |
(83 | ) | (40 | ) | (507 | ) | (263 | ) | ||||||||
Investments in associates |
| (2 | ) | 11 | (4 | ) | ||||||||||
|
|
|
|
|||||||||||||
Income before taxes |
626 | 713 | 1,034 | 1,377 | ||||||||||||
Income taxes |
(161 | ) | (237 | ) | (203 | ) | (349 | ) | ||||||||
|
|
|
|
|||||||||||||
Income from continuing operations |
465 | 476 | 831 | 1,028 | ||||||||||||
Discontinued operations - net of income taxes |
175 | 423 | 660 | 843 | ||||||||||||
|
|
|
|
|||||||||||||
Net income |
640 | 899 | 1,491 | 1,870 | ||||||||||||
Attribution of net income for the period |
||||||||||||||||
Net income attributable to Koninklijke Philips N.V. shareholders |
626 | 860 | 1,448 | 1,657 | ||||||||||||
Net income attributable to Non-controlling interests |
14 | 39 | 43 | 214 | ||||||||||||
Earnings per common share attributable to Koninklijke Philips N.V. shareholders |
||||||||||||||||
Weighted average number of common shares outstanding |
||||||||||||||||
(after deduction of treasury shares) during the period (in thousands): |
||||||||||||||||
- basic |
923,018 | 932,754 | 918,016 | 928,798 | ||||||||||||
- diluted |
933,552 | 947,857 | 928,789 | 945,132 | ||||||||||||
Net income attributable to shareholders in EUR: |
||||||||||||||||
- basic |
0.68 | 0.92 | 1.58 | 1.78 | ||||||||||||
- diluted |
0.67 | 0.91 | 1.56 | 1.75 | ||||||||||||
Net income from continuing operations attributable to shareholders in EUR: |
||||||||||||||||
- basic |
0.50 | 0.51 | 0.90 | 1.11 | ||||||||||||
- diluted |
0.50 | 0.50 | 0.89 | 1.09 | ||||||||||||
|
|
|
|
|||||||||||||
Amounts may not add up due to rounding.
16 | Quarterly report Q4 2017 |
Condensed consolidated statements of comprehensive income
Condensed consolidated statements of comprehensive income in millions of EUR unless otherwise stated |
||||||||
January to December | ||||||||
2016 | 2017 | |||||||
Net income for the period |
1,491 | 1,870 | ||||||
|
|
|||||||
Pensions and other post-employment plans: |
||||||||
Remeasurement |
(96 | ) | 102 | |||||
Income tax effect on remeasurements |
28 | (78 | ) | |||||
Revaluation reserve: |
||||||||
Release revaluation reserve |
(4 | ) | ||||||
Reclassification directly into retained earnings |
4 | |||||||
|
|
|||||||
Total of items that will not be reclassified to profit or loss |
(68 | ) | 25 | |||||
Currency translation differences: |
||||||||
Net current-period change, before tax |
219 | (1,177 | ) | |||||
Income tax effect on net current-period change |
2 | 39 | ||||||
Reclassification adjustment for (loss) gain realized, in discontinued operations |
191 | |||||||
Available-for-sale financial assets: |
||||||||
Net current-period change, before tax |
(44 | ) | (66 | ) | ||||
Income tax effect on net current-period change |
(1 | ) | ||||||
Reclassification adjustment for (loss) gain realized, in continued operations |
24 | 1 | ||||||
Cash flow hedges: |
||||||||
Net current-period change, before tax |
3 | 33 | ||||||
Income tax effect on net current period change |
(9 | ) | (3 | ) | ||||
Reclassification adjustment for (loss) gain realized, in continued operations |
5 | (17 | ) | |||||
Total of items that are or may be reclassified to profit or loss |
200 | (1,000 | ) | |||||
|
|
|||||||
Other comprehensive income (loss) for the period |
132 | (975 | ) | |||||
|
|
|||||||
Total comprehensive income for the period |
1,623 | 895 | ||||||
Shareholders of Koninklijke Philips N.V. |
1,550 | 805 | ||||||
Non-controlling interests |
73 | 90 |
Amounts may not add up due to rounding.
Quarterly report Q4 2017 | 17 |
Condensed consolidated balance sheets
Condensed consolidated balance sheets in millions of EUR |
||||||||
December 31, 2016 | December 31, 2017 | |||||||
Non-current assets: |
||||||||
Property, plant and equipment |
2,155 | 1,591 | ||||||
Goodwill |
8,898 | 7,731 | ||||||
Intangible assets excluding goodwill |
3,552 | 3,322 | ||||||
Non-current receivables |
155 | 130 | ||||||
Investments in associates |
190 | 142 | ||||||
Other non-current financial assets |
335 | 587 | ||||||
Non-current derivative financial assets |
59 | 22 | ||||||
Deferred tax assets |
2,759 | 1) | 1,598 | |||||
Other non-current assets |
92 | 75 | ||||||
|
|
|||||||
Total non-current assets |
18,195 | 15,198 | ||||||
Current assets: |
||||||||
Inventories |
3,392 | 2,353 | ||||||
Other current financial assets |
101 | 2 | ||||||
Other current assets |
486 | 392 | ||||||
Current derivative financial assets |
101 | 57 | ||||||
Income tax receivable |
154 | 109 | ||||||
Receivables |
5,327 | 3,909 | ||||||
Assets classified as held for sale |
2,180 | 1,356 | ||||||
Cash and cash equivalents |
2,334 | 1,939 | ||||||
|
|
|||||||
Total current assets |
14,075 | 10,117 | ||||||
|
|
|||||||
Total assets |
32,270 | 25,315 | ||||||
|
|
|||||||
Equity |
||||||||
Shareholders equity |
12,546 | 1) | 11,999 | |||||
Common shares |
186 | 188 | ||||||
Reserves |
1,280 | 385 | ||||||
Other |
11,080 | 1) | 11,426 | |||||
Non-controlling interests |
907 | 24 | ||||||
|
|
|||||||
Group equity |
13,453 | 12,023 | ||||||
Non-current liabilities: |
||||||||
Long-term debt |
4,021 | 4,044 | ||||||
Non-current derivative financial liabilities |
590 | 216 | ||||||
Long-term provisions |
2,926 | 1) | 1,659 | |||||
Deferred tax liabilities |
66 | 33 | ||||||
Other non-current liabilities |
741 | 474 | ||||||
|
|
|||||||
Total non-current liabilities |
8,344 | 6,426 | ||||||
Current liabilities: |
||||||||
Short-term debt |
1,585 | 672 | ||||||
Current derivative financial liabilities |
283 | 167 | ||||||
Income tax payable |
146 | 83 | ||||||
Accounts payable |
2,848 | 2,090 | ||||||
Accrued liabilities |
3,034 | 2,319 | ||||||
Short-term provisions |
680 | 400 | ||||||
Liabilities directly associated with assets held for sale |
525 | 8 | ||||||
Other current liabilities |
1,372 | 1,126 | ||||||
|
|
|||||||
Total current liabilities |
10,473 | 6,866 | ||||||
|
|
|||||||
Total liabilities and group equity |
32,270 | 25,315 | ||||||
|
|
1) | The presentation of prior-year information has been adjusted to conform to the current-year presentation. |
Amounts may not add up due to rounding.
18 | Quarterly report Q4 2017 |
Condensed consolidated statement of cash flows
Condensed consolidated statements of cash flows in millions of EUR |
||||||||
January to December | ||||||||
2016 | 2017 | |||||||
Cash flows from operating activities |
||||||||
Net income |
1,491 | 1,870 | ||||||
Results of discontinued operations - net of income tax |
(660 | ) | (843 | ) | ||||
Adjustments to reconcile net income (loss) to net cash provided by (used for) of operating activities: |
||||||||
Depreciation, amortization and impairments of fixed assets |
976 | 1,025 | ||||||
Impairment of goodwill and other non-current financial assets |
24 | 15 | ||||||
Net loss (gain) on sale of assets |
(3 | ) | (107 | ) | ||||
Interest income |
(43 | ) | (40 | ) | ||||
Interest expense on debt, borrowings and other liabilities |
294 | 186 | ||||||
Income taxes |
203 | 349 | ||||||
Results from investments in associates |
(11 | ) | | |||||
Decrease (increase) in working capital: |
131 | 101 | ||||||
Decrease (increase) in receivables and other current assets |
(89 | ) | 64 | |||||
Decrease (increase) in inventories |
(63 | ) | (144 | ) | ||||
Increase (decrease) in accounts payable, accrued and other current liabilities |
283 | 181 | ||||||
Decrease (increase) in non-current receivables, other assets and other liabilities |
(160 | ) | (358 | ) | ||||
Increase (decrease) in provisions |
(647 | ) | (252 | ) | ||||
Other items |
76 | 377 | ||||||
Interest paid |
(296 | ) | (215 | ) | ||||
Interest received |
42 | 40 | ||||||
Dividends received from investments in associates |
48 | 6 | ||||||
Income taxes paid |
(295 | ) | (284 | ) | ||||
Net cash provided by (used for) operating activities |
1,170 | 1,870 | ||||||
Cash flows from investing activities |
||||||||
Net capital expenditures |
(741 | ) | (685 | ) | ||||
Purchase of intangible assets |
(95 | ) | (106 | ) | ||||
Expenditures on development assets |
(301 | ) | (333 | ) | ||||
Capital expenditures on property, plant and equipment |
(360 | ) | (420 | ) | ||||
Proceeds from sale of property, plant and equipment |
15 | 175 | ||||||
Net proceeds from (cash used for) derivatives and current financial assets |
(117 | ) | (198 | ) | ||||
Purchase of other non-current financial assets |
(53 | ) | (42 | ) | ||||
Proceeds from other non-current financial assets |
14 | 6 | ||||||
Purchase of businesses, net of cash acquired |
(197 | ) | (2,344 | ) | ||||
Net proceeds from sale of interests in businesses, net of cash disposed of |
| 64 | ||||||
Net cash used for investing activities |
(1,092 | ) | (3,199 | ) | ||||
Cash flows from financing activities |
||||||||
Proceeds from issuance (payments) of short-term debt |
(1,377 | ) | 12 | |||||
Principal payments on short-term portion of long-term debt |
(357 | ) | (1,332 | ) | ||||
Proceeds from issuance of long-term debt |
123 | 1,115 | ||||||
Re-issuance of treasury shares |
80 | 227 | ||||||
Purchase of treasury shares |
(606 | ) | (642 | ) | ||||
Proceeds from sale of Philips Lighting shares |
863 | 1,065 | ||||||
Transaction costs paid for sale of Philips Lighting shares |
(38 | ) | (5 | ) | ||||
Dividend paid to shareholders of Koninklijke Philips N.V. |
(330 | ) | (384 | ) | ||||
Dividends paid to non-controlling interests |
(2 | ) | (2 | ) | ||||
Net cash provided by (used for) financing activities |
(1,643 | ) | 55 | |||||
|
|
|||||||
Net cash provided by (used for) continuing operations |
(1,566 | ) | (1,274 | ) | ||||
|
|
|||||||
Net cash provided by (used for) discontinued operations |
2,151 | 1,063 | ||||||
|
|
|||||||
Net cash provided by (used for) continuing and discontinued operations |
585 | (211 | ) | |||||
Effect of change in exchange rates on cash and cash equivalents |
(17 | ) | (184 | ) | ||||
Cash and cash equivalents at the beginning of the period |
1,766 | 2,334 | ||||||
|
|
|||||||
Cash and cash equivalents at the end of the period |
2,334 | 1,939 | ||||||
|
|
For a number of reasons, principally the effects of translation differences, certain items in the statements of cash flows do not correspond to the differences between the balance sheet amounts for the respective items.
Amounts may not add up due to rounding.
Quarterly report Q4 2017 | 19 |
Condensed consolidated statement of change in equity
Condensed consolidated statements of changes in equity in millions of EUR |
||||||||||||||||||||||||||||||||||||||||
common shares |
capital in excess of par value |
retained earnings |
currency translation differences |
available-for-sale financial assets |
cash flow hedges |
treasury shares at cost |
total shareholders equity |
non-controlling interests |
total equity |
|||||||||||||||||||||||||||||||
January to December |
||||||||||||||||||||||||||||||||||||||||
Balance as of December 31, 2016 |
186 | 3,083 | 8,178 | 1,234 | 36 | 10 | (181 | ) | 12,546 | 907 | 13,453 | |||||||||||||||||||||||||||||
Total comprehensive income (loss) |
1,681 | (823 | ) | (66 | ) | 12 | 805 | 90 | 895 | |||||||||||||||||||||||||||||||
Dividend distributed |
2 | 356 | (742 | ) | (384 | ) | (94 | ) | (478 | ) | ||||||||||||||||||||||||||||||
Sales of shares of Philips Lighting |
346 | (19 | ) | 327 | 712 | 1,039 | ||||||||||||||||||||||||||||||||||
Deconsolidation Philips Lighting |
(66 | ) | 54 | (12 | ) | (1,590 | ) | (1,602 | ) | |||||||||||||||||||||||||||||||
Purchase of treasury shares |
(318 | ) | (318 | ) | (318 | ) | ||||||||||||||||||||||||||||||||||
Re-issuance of treasury shares |
(205 | ) | 3 | 334 | 133 | 133 | ||||||||||||||||||||||||||||||||||
Forward contracts - share buy back |
(1,018 | ) | (61 | ) | (1,079 | ) | (1,079 | ) | ||||||||||||||||||||||||||||||||
Share call options |
95 | (255 | ) | (160 | ) | (160 | ) | |||||||||||||||||||||||||||||||||
Share-based compensation plans |
151 | 151 | 151 | |||||||||||||||||||||||||||||||||||||
Income tax share-based compensation plans |
(8 | ) | (8 | ) | (8 | ) | ||||||||||||||||||||||||||||||||||
|
|
|||||||||||||||||||||||||||||||||||||||
Total other equity movements |
2 | 228 | (1,263 | ) | (19 | ) | (300 | ) | (1,352 | ) | (972 | ) | (2,324 | ) | ||||||||||||||||||||||||||
|
|
|||||||||||||||||||||||||||||||||||||||
Balance as of December 31, 2017 |
188 | 3,311 | 8,596 | 392 | (30 | ) | 23 | (481 | ) | 11,999 | 24 | 12,023 | ||||||||||||||||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
1) | The presentation of prior-year information has been adjusted to conform to the current-year presentation. |
Amounts may not add up due to rounding.
20 | Quarterly report Q4 2017 |
Reconciliation of non-GAAP information
Certain non-GAAP financial measures are presented when discussing the Philips Groups performance:
| Comparable sales growth |
| EBIT |
| EBITA |
| Adjusted EBITA |
| Adjusted EBITDA |
| Free cash flow |
| Net debt : group equity ratio |
| Comparable order intake |
The term EBIT has the same meaning as Income from operations.
Adjusted EBITA is defined as Income from operations (EBIT) excluding amortization of intangible assets (excluding software and development expenses), impairment of goodwill and other intangible assets, restructuring charges, acquisition-related costs and other significant items.
Adjusted EBITDA is defined as Income from operations (EBIT) excluding amortization and impairment of intangible assets, impairment of goodwill, depreciation and impairment of property, plant and equipment, restructuring charges, acquisition-related costs and other significant items.
Free cash flow is defined as Net cash provided by operating activities minus net capital expenditures. Net capital expenditures are comprised of the purchase of intangible assets, expenditures on development assets, capital expenditures on property, plant and equipment and proceeds from disposal of property, plant and equipment.
Net debt : group equity ratio is presented to express the financial strength of the Company. Net debt is defined as the sum of long- and short-term debt minus cash and cash equivalents. Group equity is defined as the sum of shareholders equity and non-controlling interests.
Comparable order intake is reported for equipment and software and is defined as the total contractually committed amount to be delivered within a specified timeframe excluding the effects of currency movements and changes in consolidation. Comparable order intake does not derive from the financial statements and thus a quantitative reconciliation is not provided.
For the definitions of the remaining non-GAAP financial measures listed above, refer to the Annual Report 2016.
In the following tables, reconciliations to the most directly comparable IFRS measures are presented.
Sales growth composition in % |
||||||||||||||||||||||||||||||||
Q4 2017 | January to December 2017 | |||||||||||||||||||||||||||||||
nominal growth |
consolidation changes |
currency effects |
comparable growth |
nominal growth |
consolidation changes |
currency effects |
comparable growth |
|||||||||||||||||||||||||
2017 versus 2016 |
||||||||||||||||||||||||||||||||
Personal Health |
0.7 | % | 0.5 | % | 5.1 | % | 6.3 | % | 3.0 | % | 0.7 | % | 1.9 | % | 5.6 | % | ||||||||||||||||
Diagnosis & Treatment |
3.0 | % | (3.3 | )% | 6.1 | % | 5.8 | % | 3.1 | % | (1.6 | )% | 2.0 | % | 3.5 | % | ||||||||||||||||
Connected Care & Health Informatics |
(4.5 | )% | 0.6 | % | 6.2 | % | 2.3 | % | 0.2 | % | 1.1 | % | 1.9 | % | 3.2 | % | ||||||||||||||||
HealthTech Other |
(22.2 | )% | (0.0 | )% | 0.6 | % | (21.6 | )% | (13.2 | )% | 0.1 | % | 0.2 | % | (12.9 | )% | ||||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||||||||||
Philips Group |
(0.1 | )% | (0.9 | )% | 5.6 | % | 4.6 | % | 2.1 | % | (0.1 | )% | 1.9 | % | 3.9 | % | ||||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Quarterly report Q4 2017 | 21 |
Net income to Adjusted EBITA In millions of EUR unless otherwise stated |
||||||||||||||||||||||||
Philips Group | Personal Health | Diagnosis & Treatment |
Connected Care & Health Informatics |
HealthTech Other | Legacy Items | |||||||||||||||||||
Q4 2017 |
||||||||||||||||||||||||
Net Income |
899 | |||||||||||||||||||||||
Discontinued operations, net of income taxes |
(423 | ) | ||||||||||||||||||||||
Income taxes |
237 | |||||||||||||||||||||||
Investments in associates |
2 | |||||||||||||||||||||||
Financial expenses |
40 | |||||||||||||||||||||||
Financial income |
(31 | ) | ||||||||||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||||||
Income from operations (EBIT) |
723 | 370 | 247 | 159 | (45 | ) | (8 | ) | ||||||||||||||||
Amortization of acquired intangible assets |
66 | 34 | 19 | 10 | 4 | |||||||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||||||
EBITA |
790 | 404 | 266 | 169 | (41 | ) | (8 | ) | ||||||||||||||||
Restructuring and acquisition-related charges |
107 | 8 | 45 | 33 | 21 | |||||||||||||||||||
Other items |
(12 | ) | (16 | ) | 4 | |||||||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||||||
Adjusted EBITA |
884 | 412 | 311 | 186 | (19 | ) | (5 | ) | ||||||||||||||||
January to December 2017 |
||||||||||||||||||||||||
Net income |
1,870 | |||||||||||||||||||||||
Discontinued operations, net of income taxes |
(843 | ) | ||||||||||||||||||||||
Income taxes |
349 | |||||||||||||||||||||||
Investments in associates |
4 | |||||||||||||||||||||||
Financial expenses |
263 | |||||||||||||||||||||||
Financial income |
(126 | ) | ||||||||||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||||||
Income from operations (EBIT) |
1,517 | 1,075 | 488 | 206 | (149 | ) | (103 | ) | ||||||||||||||||
Amortization of acquired intangible assets |
260 | 135 | 55 | 44 | 26 | |||||||||||||||||||
Impairment of goodwill |
9 | 9 | ||||||||||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||||||
EBITA |
1,787 | 1,211 | 543 | 250 | (114 | ) | (103 | ) | ||||||||||||||||
Restructuring and acquisition-related charges |
316 | 11 | 151 | 91 | 64 | |||||||||||||||||||
Other items |
50 | 22 | 31 | (59 | ) | 55 | ||||||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||||||
Adjusted EBITA |
2,153 | 1,221 | 716 | 372 | (109 | ) | (48 | ) | ||||||||||||||||
Q4 2016 |
||||||||||||||||||||||||
Net income |
640 | |||||||||||||||||||||||
Discontinued operations, net of income taxes |
(175 | ) | ||||||||||||||||||||||
Income tax |
161 | |||||||||||||||||||||||
Investments in associates |
0 | |||||||||||||||||||||||
Financial expenses |
83 | |||||||||||||||||||||||
Financial income |
(16 | ) | ||||||||||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||||||
Income from operations (EBIT) |
693 | 347 | 260 | 171 | (87 | ) | 1 | |||||||||||||||||
Amortization of acquired intangible assets |
61 | 34 | 9 | 13 | 4 | 1 | ||||||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||||||
EBITA |
753 | 381 | 269 | 184 | (83 | ) | 2 | |||||||||||||||||
Restructuring and acquisition-related charges |
63 | 13 | 15 | 8 | 28 | (1 | ) | |||||||||||||||||
Other Items |
(5 | ) | (15 | ) | 26 | (16 | ) | |||||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||||||
Adjusted EBITA |
811 | 394 | 284 | 177 | (29 | ) | (15 | ) | ||||||||||||||||
January to December 2016 |
||||||||||||||||||||||||
Net income |
1,491 | |||||||||||||||||||||||
Discontinued operations, net of income taxes |
(660 | ) | ||||||||||||||||||||||
Income tax |
203 | |||||||||||||||||||||||
Investments in associates |
(11 | ) | ||||||||||||||||||||||
Financial expenses |
507 | |||||||||||||||||||||||
Financial income |
(65 | ) | ||||||||||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||||||
Income from operations (EBIT) |
1,464 | 953 | 546 | 275 | (129 | ) | (181 | ) | ||||||||||||||||
Amortization of acquired intangible assets |
242 | 139 | 48 | 46 | 9 | |||||||||||||||||||
Impairment of goodwill |
1 | 1 | ||||||||||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||||||
EBITA |
1,707 | 1,092 | 594 | 322 | (120 | ) | (181 | ) | ||||||||||||||||
Restructuring and acquisition-related charges |
94 | 16 | 37 | 14 | 28 | (1 | ) | |||||||||||||||||
Other items |
120 | (12 | ) | 26 | 106 | |||||||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||||||
Adjusted EBITA |
1,921 | 1,108 | 631 | 324 | (66 | ) | (76 | ) | ||||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
22 | Quarterly report Q4 2017 |
Net income to Adjusted EBITDA In millions of EUR unless otherwise stated |
||||||||||||||||||||||||
Philips Group | Personal Health | Diagnosis & Treatment |
Connected Care & Health Informatics |
HealthTech Other | Legacy Items | |||||||||||||||||||
Q4 2017 |
||||||||||||||||||||||||
Net Income |
899 | |||||||||||||||||||||||
Discontinued operations, net of income taxes |
(423 | ) | ||||||||||||||||||||||
Income taxes |
237 | |||||||||||||||||||||||
Investment in associates |
2 | |||||||||||||||||||||||
Financial expenses |
40 | |||||||||||||||||||||||
Financial income |
(31 | ) | ||||||||||||||||||||||
|
|
|||||||||||||||||||||||
Income from operations (EBIT) |
723 | 370 | 247 | 159 | (45 | ) | (8 | ) | ||||||||||||||||
Depreciation, amortization and impairments of fixed assets |
276 | 99 | 71 | 62 | 45 | | ||||||||||||||||||
Restructuring and acquisition-related charges |
107 | 8 | 45 | 33 | 21 | |||||||||||||||||||
Other items |
(12 | ) | (16 | ) | 4 | |||||||||||||||||||
Adding back impairment of fixed assets included in restructuring and acquisition-related charges and other items |
(22 | ) | (1 | ) | (2 | ) | (16 | ) | (3 | ) | ||||||||||||||
|
|
|||||||||||||||||||||||
Adjusted EBITDA |
1,072 | 476 | 361 | 222 | 18 | (4 | ) | |||||||||||||||||
January to December 2017 |
||||||||||||||||||||||||
Net Income |
1,870 | |||||||||||||||||||||||
Discontinued operations, net of income taxes |
(843 | ) | ||||||||||||||||||||||
Income taxes |
349 | |||||||||||||||||||||||
Investment in associates |
4 | |||||||||||||||||||||||
Financial expenses |
263 | |||||||||||||||||||||||
Financial income |
(126 | ) | ||||||||||||||||||||||
|
|
|||||||||||||||||||||||
Income from operations (EBIT) |
1,517 | 1,075 | 488 | 206 | (149 | ) | (103 | ) | ||||||||||||||||
Depreciation, amortization and impairments of fixed assets |
1,025 | 371 | 267 | 208 | 177 | 2 | ||||||||||||||||||
Impairment of goodwill |
9 | 9 | ||||||||||||||||||||||
Restructuring and acquisition-related charges |
316 | 11 | 151 | 91 | 64 | |||||||||||||||||||
Other items |
50 | 22 | 31 | (59 | ) | 55 | ||||||||||||||||||
Adding back of impairment of fixed assets included in restructuring and acquisition-related charges and other items |
(86 | ) | (1 | ) | (44 | ) | (34 | ) | (7 | ) | ||||||||||||||
|
|
|||||||||||||||||||||||
Adjusted EBITDA |
2,832 | 1,456 | 884 | 502 | 36 | (46 | ) | |||||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
Quarterly report Q4 2017 | 23 |
Net income to Adjusted EBITDA In millions of EUR unless otherwise stated |
||||||||||||||||||||||||
Philips Group | Personal Health | Diagnosis & Treatment |
Connected Care & Health Informatics |
HealthTech Other | Legacy Items |
|||||||||||||||||||
Q4 2016 |
||||||||||||||||||||||||
Net Income |
640 | |||||||||||||||||||||||
Discontinued operations, net of income taxes |
(175 | ) | ||||||||||||||||||||||
Income taxes |
161 | |||||||||||||||||||||||
Investment in associates |
| |||||||||||||||||||||||
Financial expenses |
83 | |||||||||||||||||||||||
Financial income |
(16 | ) | ||||||||||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||||||
Income from operations (EBIT) |
693 | 347 | 260 | 171 | (87 | ) | 1 | |||||||||||||||||
Depreciation, amortization and impairments of fixed assets |
277 | 102 | 55 | 47 | 73 | | ||||||||||||||||||
Restructuring and acquisition-related charges |
63 | 13 | 15 | 8 | 28 | (1 | ) | |||||||||||||||||
Other items |
(5 | ) | (15 | ) | 26 | (16 | ) | |||||||||||||||||
Adding back of impairment of fixed assets included in restructuring and acquisition-related charges and other items |
(35 | ) | | (1 | ) | | (34 | ) | ||||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||||||
Adjusted EBITDA |
991 | 461 | 329 | 211 | 6 | (16 | ) | |||||||||||||||||
January to December 2016 |
||||||||||||||||||||||||
Net Income |
1,491 | |||||||||||||||||||||||
Discontinued operations, net of income taxes |
(660 | ) | ||||||||||||||||||||||
Income taxes |
203 | |||||||||||||||||||||||
Investment in associates |
(11 | ) | ||||||||||||||||||||||
Financial expenses |
507 | |||||||||||||||||||||||
Financial income |
(65 | ) | ||||||||||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||||||
Income from operations (EBIT) |
1,464 | 953 | 546 | 275 | (129 | ) | (181 | ) | ||||||||||||||||
Depreciation, amortization and impairments of fixed assets |
976 | 385 | 229 | 184 | 177 | 2 | ||||||||||||||||||
Impairment of goodwill |
1 | 1 | ||||||||||||||||||||||
Restructuring and acquisition-related charges |
94 | 16 | 37 | 14 | 28 | (1 | ) | |||||||||||||||||
Other items |
120 | (12 | ) | 26 | 106 | |||||||||||||||||||
Adding back of impairment of fixed assets included in restructuring and acquisition-related charges and other items |
(42 | ) | | (4 | ) | (4 | ) | (34 | ) | |||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||||||
Adjusted EBITDA |
2,613 | 1,353 | 808 | 458 | 68 | (74 | ) | |||||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
24 | Quarterly report Q4 2017 |
Reconciliation of non-GAAP information (continued)
Composition of free cash flow in millions of EUR |
||||||||
January to December | ||||||||
2016 | 2017 | |||||||
Cash flow provided by operating activities |
1,170 | 1,870 | ||||||
Net capital expenditures: |
(741 | ) | (685 | ) | ||||
Purchase of intangible assets |
(95 | ) | (106 | ) | ||||
Expenditures on development assets |
(301 | ) | (333 | ) | ||||
Capital expenditures on property, plant and equipment |
(360 | ) | (420 | ) | ||||
Proceeds from sale of property, plant and equipment |
15 | 175 | ||||||
|
|
|
|
|||||
Free cash flows |
429 | 1,185 | ||||||
|
|
|
|
|||||
Composition of net debt to group equity in millions of EUR unless otherwise stated |
December 31, 2016 | December 31, 2017 | ||||||
Long-term debt |
4,021 | 4,044 | ||||||
Short-term debt |
1,585 | 672 | ||||||
Total debt |
5,606 | 4,715 | ||||||
Cash and cash equivalents |
2,334 | 1,939 | ||||||
Net debt (total debt less cash and cash equivalents) |
3,272 | 2,776 | ||||||
Shareholders equity |
12,546 | 1) | 11,999 | |||||
Non-controlling interests |
907 | 24 | ||||||
Group equity |
13,453 | 12,023 | ||||||
Net debt and Group equity |
16,725 | 14,799 | ||||||
Net debt divided by net debt and Group equity (in %) |
20 | %1) | 19 | % | ||||
Equity divided by net debt and Group equity (in %) |
80 | %1) | 81 | % |
Quarterly report Q4 2017 | 25 |
Philips statistics
in millions of EUR unless otherwise stated
2016 | 2017 | |||||||||||||||||||||||||||||||
Q1 | Q2 | Q3 | Q4 | Q1 | Q2 | Q3 | Q4 | |||||||||||||||||||||||||
Sales |
3,826 | 4,132 | 4,157 | 5,306 | 4,035 | 4,294 | 4,148 | 5,303 | ||||||||||||||||||||||||
Comparable sales growth* |
5 | % | 5 | % | 5 | % | 5 | % | 3 | % | 4 | % | 4 | % | 5 | % | ||||||||||||||||
Gross margin |
1,644 | 1,860 | 1,953 | 2,482 | 1,777 | 1,925 | 1,916 | 2,563 | ||||||||||||||||||||||||
as a % of sales |
43.0 | % | 45.0 | % | 47.0 | % | 46.8 | % | 44.0 | % | 44.8 | % | 46.2 | % | 48.3 | % | ||||||||||||||||
Selling expenses |
(989 | ) | (999 | ) | (988 | ) | (1,166 | ) | (1,024 | ) | (1,091 | ) | (1,046 | ) | (1,236 | ) | ||||||||||||||||
as a % of sales |
(25.8 | )% | (24.2 | )% | (23.8 | )% | (22.0 | )% | (25.4 | )% | (25.4 | )% | (25.2 | )% | (23.3 | )% | ||||||||||||||||
G&A expenses |
(145 | ) | (181 | ) | (158 | ) | (173 | ) | (151 | ) | (146 | ) | (134 | ) | (146 | ) | ||||||||||||||||
as a % of sales |
(3.8 | )% | (4.4 | )% | (3.8 | )% | (3.3 | )% | (3.7 | )% | (3.4 | )% | (3.2 | )% | (2.8 | )% | ||||||||||||||||
R&D expenses |
(380 | ) | (412 | ) | (428 | ) | (449 | ) | (431 | ) | (421 | ) | (451 | ) | (461 | ) | ||||||||||||||||
as a % of sales |
(9.9 | )% | (10.0 | )% | (10.3 | )% | (8.5 | )% | (10.7 | )% | (9.8 | )% | (10.9 | )% | (8.7 | )% | ||||||||||||||||
Income from operations (EBIT) |
126 | 265 | 381 | 693 | 243 | 252 | 299 | 723 | ||||||||||||||||||||||||
as a % of sales |
3.3 | % | 6.4 | % | 9.2 | % | 13.1 | % | 6.0 | % | 5.9 | % | 7.2 | % | 13.6 | % | ||||||||||||||||
Net income |
37 | 431 | 383 | 640 | 259 | 289 | 423 | 899 | ||||||||||||||||||||||||
Net income - shareholders per common share in EUR - diluted |
0.03 | 0.46 | 0.40 | 0.67 | 0.25 | 0.27 | 0.33 | 0.91 | ||||||||||||||||||||||||
EBITA* |
188 | 326 | 441 | 753 | 304 | 329 | 364 | 790 | ||||||||||||||||||||||||
as a % of sales |
4.9 | % | 7.9 | % | 10.6 | % | 14.2 | % | 7.5 | % | 7.7 | % | 8.8 | % | 14.9 | % | ||||||||||||||||
Adjusted EBITA* |
253 | 383 | 474 | 811 | 298 | 439 | 532 | 884 | ||||||||||||||||||||||||
as a % of sales |
6.6 | % | 9.3 | % | 11.4 | % | 15.3 | % | 7.4 | % | 10.2 | % | 12.8 | % | 16.7 | % | ||||||||||||||||
Adjusted EBITDA* |
422 | 555 | 646 | 991 | 463 | 611 | 686 | 1,072 | ||||||||||||||||||||||||
as a % of sales |
11.0 | % | 13.4 | % | 15.5 | % | 18.7 | % | 11.5 | % | 14.2 | % | 16.5 | % | 20.2 | % | ||||||||||||||||
2016 | 2017 | |||||||||||||||||||||||||||||||
January- March |
January- June |
January- September |
January- December |
January- March |
January- June |
January- September |
January- December |
|||||||||||||||||||||||||
Sales |
3,826 | 7,959 | 12,116 | 17,422 | 4,035 | 8,329 | 12,477 | 17,780 | ||||||||||||||||||||||||
Comparable sales growth* |
5 | % | 5 | % | 5 | % | 5 | % | 3 | % | 3 | % | 4 | % | 4 | % | ||||||||||||||||
Gross margin |
1,644 | 3,504 | 5,457 | 7,939 | 1,777 | 3,703 | 5,618 | 8,181 | ||||||||||||||||||||||||
as a % of sales |
43.0 | % | 44.0 | % | 45.0 | % | 45.6 | % | 44.0 | % | 44.5 | % | 45.0 | % | 46.0 | % | ||||||||||||||||
Selling expenses |
(989 | ) | (1,988 | ) | (2,976 | ) | (4,142 | ) | (1,024 | ) | (2,115 | ) | (3,162 | ) | (4,398 | ) | ||||||||||||||||
as a % of sales |
(25.8 | )% | (25.0 | )% | (24.6 | )% | (23.8 | )% | (25.4 | )% | (25.4 | )% | (25.3 | )% | (24.7 | )% | ||||||||||||||||
G&A expenses |
(145 | ) | (327 | ) | (485 | ) | (658 | ) | (151 | ) | (297 | ) | (431 | ) | (577 | ) | ||||||||||||||||
as a % of sales |
(3.8 | )% | (4.1 | )% | (4.0 | )% | (3.8 | )% | (3.7 | )% | (3.6 | )% | (3.5 | )% | (3.2 | )% | ||||||||||||||||
R&D expenses |
(380 | ) | (792 | ) | (1,220 | ) | (1,669 | ) | (431 | ) | (852 | ) | (1,303 | ) | (1,764 | ) | ||||||||||||||||
as a % sales |
(9.9 | )% | (10.0 | )% | (10.1 | )% | (9.6 | )% | (10.7 | )% | (10.2 | )% | (10.4 | )% | (9.9 | )% | ||||||||||||||||
Income from operations (EBIT) |
126 | 391 | 772 | 1,464 | 243 | 495 | 794 | 1,517 | ||||||||||||||||||||||||
as a % of sales |
3.3 | % | 4.9 | % | 6.4 | % | 8.4 | % | 6.0 | % | 5.9 | % | 6.4 | % | 8.5 | % | ||||||||||||||||
Net income |
37 | 468 | 851 | 1,491 | 259 | 548 | 971 | 1,870 | ||||||||||||||||||||||||
Net income - shareholders per common share in EUR - diluted |
0.03 | 0.49 | 0.89 | 1.56 | 0.25 | 0.51 | 0.85 | 1.75 | ||||||||||||||||||||||||
EBITA* |
188 | 514 | 955 | 1,707 | 304 | 634 | 997 | 1,787 | ||||||||||||||||||||||||
as a % of sales |
4.9 | % | 6.5 | % | 7.9 | % | 9.8 | % | 7.5 | % | 7.6 | % | 8.0 | % | 10.1 | % | ||||||||||||||||
Adjusted EBITA* |
253 | 636 | 1,110 | 1,921 | 298 | 737 | 1,269 | 2,153 | ||||||||||||||||||||||||
as a % of sales |
6.6 | % | 8.0 | % | 9.2 | % | 11.0 | % | 7.4 | % | 8.8 | % | 10.2 | % | 12.1 | % | ||||||||||||||||
Adjusted EBITDA* |
422 | 976 | 1,622 | 2,613 | 463 | 1,074 | 1,759 | 2,832 | ||||||||||||||||||||||||
as a % of sales |
11.0 | % | 12.3 | % | 13.4 | % | 15.0 | % | 11.5 | % | 12.9 | % | 14.1 | % | 15.9 | % | ||||||||||||||||
Number of common shares outstanding (after deduction of treasury shares) at the end of period (in thousands) |
913,011 | 927,316 | 924,271 | 922,437 | 920,276 | 937,045 | 936,861 | 926,192 | ||||||||||||||||||||||||
Shareholders equity per common share in EUR1) |
12.29 | 12.33 | 12.51 | 13.60 | 13.74 | 13.01 | 12.12 | 12.96 | ||||||||||||||||||||||||
Net debt : group equity ratio1) |
27:73 | 24:76 | 24:76 | 20:80 | 16:84 | 5:95 | 23:77 | 19:81 | ||||||||||||||||||||||||
Total employees |
114,021 | 113,356 | 113,627 | 114,731 | 114,188 | 115,474 | 106,745 | 73,951 | ||||||||||||||||||||||||
of which discontinued operations |
45,263 | 44,262 | 43,783 | 43,763 | 43,758 | 43,997 | 33,422 | | ||||||||||||||||||||||||
of which third-party workers |
8,190 | 7,885 | 8,079 | 8,212 | 7,795 | 8,306 | 7,992 | 7,876 |
1) | The presentation of prior year information has been adjusted to conform tocurrent-year presentation. |
* | Non-GAAP financial measure. Refer to Reconciliation of non-GAAP information, of this document. |
26 | Quarterly report Q4 2017 |
http://www.philips.com/investorrelations
© 2018 Koninklijke Philips N.V. All rights reserved.