Five-year overview

all amounts in millions of euros unless otherwise stated

Prior-period financial statements have been restated for the treatment of Audio, Video, Multimedia and Accessories as discontinued operations (see note (7) Discontinued operations and other assets classified as held for sale) and the adoption of IAS 19R, which mainly relates to pension reporting (see note (30) Post-employment benefits).

Due to factors such as acquisitions and divestments, the amounts, percentages and ratios are not directly comparable.

General data
 
2009
2010
2011
2012
2013
 
 
 
 
 
 
Sales
18,149
20,415
20,992
23,457
23,329
% increase over previous year
(6)
12
3
12
(1)
 
 
 
 
 
 
Income from operations (EBIT) (loss)
377
1,721
(479)
648
1,991
Financial income and expenses - net
(280)
(175)
(331)
(329)
(330)
Income (loss) from continuing operations
173
1,157
(1,046)
(77)
1,170
Income (loss) from continuing operations attributable to shareholders
159
1,151
(1,050)
(82)
1,167
Income (loss) from discontinued operations
86
144
(410)
47
2
Net income (loss)
259
1,301
(1,456)
(30)
1,172
Net income (loss) attributable to shareholders
245
1,295
(1,460)
(35)
1,169
 
 
 
 
 
 
Free cash flow
411
1,235
(97)
1,627
172
 
 
 
 
 
 
Net assets
14,631
15,067
12,362
11,185
11,227
Turnover rate of net operating capital1)
1.39
1.50
1.75
2.12
2.27
Total employees at year-end
116,153
119,775
125,240
118,087
116,681

Income
 
2009
2010
2011
2012
2013
 
 
 
 
 
 
EBIT
377
1,721
(479)
648
1,991
as a % of sales
2.1
8.4
(2.3)
2.8
8.5
 
 
 
 
 
 
EBITA
807
2,188
1,435
1,106
2,451
as a % of sales
4.4
10.7
6.8
4.7
10.5
 
 
 
 
 
 
Income taxes
0.0
(407)
(251)
(185)
(466)
as a % of income before taxes
0.0
(26.3)
31.0
(58.0)
(28.1)
 
 
 
 
 
 
Income (loss) from continuing operations
173
1,157
(1,046)
(77)
1,170
as a % of shareholders’ equity (ROE)
1.2
7.6
(7.8)
(0.6)
10.6
 
 
 
 
 
 
Net income (loss)
259
1,301
(1,456)
(30)
1,172

Capital employed
 
2009
2010
2011
2012
2013
 
 
 
 
 
 
Cash and cash equivalents
4,386
5,833
3,147
3,834
2,465
Receivables and other current assets
4,966
5,324
5,570
5,156
5,262
Assets classified as held for sale
120
551
43
507
Inventories
2,913
3,865
3,625
3,495
3,240
Non-current financial assets/investments in associates
972
660
549
726
657
Non-current receivables/assets
2,885
1,532
1,929
2,189
1,882
Property, plant and equipment
3,252
3,145
3,014
2,959
2,780
Intangible assets
11,523
12,233
11,012
10,679
9,766
Total assets
30,897
32,712
29,397
29,081
26,559
 
 
 
 
 
 
Property, plant and equipment:
 
 
 
 
 
Capital expenditures for the year
444
555
640
661
587
Depreciation for the year
686
612
617
678
632
Capital expenditures : depreciation
0.6
0.9
1.0
1.0
0.9
 
 
 
 
 
 
Inventories as a % of sales1)
14.5
16.0
16.5
14.3
13.9
Outstanding trade receivables, in days sales1)
50
56
54
50
52

Financial structure
 
2009
2010
2011
2012
2013
 
 
 
 
 
 
Other liabilities
9,523
10,610
10,434
10,379
8,529
Liabilities directly associated with assets held for sale
61
27
348
Debt
4,267
4,658
3,860
4,534
3,901
Provisions
2,476
2,377
2,680
2,956
2,554
Total provisions and liabilities
16,266
17,645
17,035
17,896
15,332
 
 
 
 
 
 
Shareholders’ equity
14,582
15,021
12,328
11,151
11,214
Non-controlling interests
49
46
34
34
13
 
 
 
 
 
 
Group equity and liabilities
30,897
32,712
29,397
29,081
26,559
 
 
 
 
 
 
Net debt : group equity ratio
(1):101
(8):108
5:95
6:94
11:89
 
 
 
 
 
 
Market capitalization at year-end
19,180
21,694
15,077
18,200
24,340

Key figures per share1)
 
2009
2010
2011
2012
2013
 
 
 
 
 
 
Sales per common share
19.56
21.68
22.03
25.44
25.61
EBITA per common share - diluted
0.87
2.30
1.50
1.19
2.66
 
 
 
 
 
 
Weighted average amount of shares outstanding:
 
 
 
 
 
- basic2,3)
927,709
941,691
952,809
922,101
911,072
- diluted2,3)
931,264
949,554
957,293
927,222
922,072
Basic earnings per common share:
 
 
 
 
 
Income (loss) from continuing operations attributable to shareholders per share
0.17
1.22
(1.10)
(0.09)
1.28
Net income (loss) attributable to shareholders
0.26
1.38
(1.53)
(0.04)
1.28
Diluted earnings per common share:
 
 
 
 
 
Income (loss) from continuing operations attributable to shareholders per share
0.17
1.21
(1.10)
(0.09)
1.27
Net income (loss) attributable to shareholders
0.26
1.36
(1.53)
(0.04)
1.27
 
 
 
 
 
 
Dividend distributed per common share
0.70
0.70
0.75
0.75
0.75
Total shareholder return per common share
7.55
2.94
(5.89)
4.37
7.50
Shareholders’ equity per common share
15.72
15.87
13.31
12.19
12.28
Price/earnings ratio
121.65
18.79
(14.80)
(221.11)
20.82
Share price at year-end
20.68
22.92
16.28
19.90
26.65
Highest closing share price during the year
21.03
26.94
25.34
20.33
26.78
Lowest closing share price during the year
10.95
20.34
12.23
13.76
20.26
Average share price
15.26
23.35
18.11
16.92
23.33
Amount of common shares outstanding at year-end2)
927,457
946,506
926,095
914,591
913,338

Sustainability
 
2009
2010
2011
2012
2013
 
 
 
 
 
 
Lives improved, in billions
 
 
 
1.7
1.8
Energy efficiency of products, in lumen/watt
32.5
34.7
35.5
37.9
38.5
Collection and recycling amount, in tonnes
 
22,500
27,500
30,500
31,000
Recycled material in products, in tonnes
 
7,500
10,000
15,000
14,000
Green Product sales, as a % of total sales
33
37
40
47
51
Green Innovation, in millions of euros
340
392
479
569
509
Operational carbon footprint, in kilotonnes CO2-equivalent
1,930
1,845
1,771
1,614
1,654
Operational energy efficiency, in terajoules per million euro sales
1.34
1.29
1.24
1.15
1.21
Total energy consumption in manufacturing, in terajoules1)
14,421
14,426
13,982
14,421
14,160
Total carbon emissions in manufacturing, in kilotonnes CO2-equivalent 1)
816
675
635
691
705
Water intake, in thousands m3 1)
4,216
4,218
4,328
4,857
5,044
Total waste, in kilotonnes1)
97.7
104.6
94.0
87.6
92.0
Materials provided for recycling via external contractor per total waste, in %
77
78
77
77
81
Restricted substances, in kilos
272
188
111
55
9
Hazardous substances, in kilos
32,869
61,795
65,477
70,093
40,451
ISO 14001 certification, as a % of all reporting organizations1)
92
95
89
71
80
Employee Engagement Index, % favorable
71
77
76
79
75
Female executives, in % of total
10
11
13
14
15
Lost Workday Injuries, per 100 FTEs
0.44
0.50
0.38
0.31
0.28
Fatalities
2
7
3
Initial and continual conformance audits, number of audits
360
273
212
159
200
Suppliers audits, compliance rate, in %
72
75
77
1)
Calculated based on balance sheet positions related to continued operations
2)
In euros unless otherwise stated
3)
In thousands of shares
4)
Adjusted to make previous years comparable for the bonus shares (273 thousand) issued in May 2013
5)
In manufacturing excluding new acquisitions
(0)
(0)
This is an interactive electronic version of the Philips Annual Report 2013 and also contains certain information in summarized form. The contents of this version are qualified in their entirety by reference to the printed version of the full Philips Annual Report 2013. This printed version is available as a PDF file on this website. Information about: forward-looking statements, third-party market share data, fair value information, IFRS basis of presentation, use of non-GAAP information, statutory financial statements and management report, reclassifications and analysis of 2013 compared to 2012.

Free cash flow is the net cash flow from operating activities minus net capital expenditures.

Sales divided by average net operating capital (calculated on the quarterly balance sheet positions).

Earnings before interest, tax and amortization (EBITA) represents income from continuing operations excluding results attributable to non-controlling interest holders, results relating to investments in associates, income taxes, financial income and expenses, amortization and impairment on intangible assets (excluding software and capitalized development expenses). Philips believes that EBITA information makes the underlying performance of its businesses more transparent by factoring out the amortization of these intangible assets, which arises when acquisitions are consolidated. In our Annual Report on form 20-F this definition is referred to as Adjusted IFO.

The % distribution of net debt over group equity plus net debt.

Green Innovation comprise all R&D activities directly contributing to the development of Green Products or Green Technologies.

A carbon footprint is the total set of greenhouse gas emissions caused by an organization, event, product or person; usually expressed in kilotonnes CO2-equivalent. The Philips operational carbon footprint is calculated on a half-year basis and includes industrial sites (manufacturing and assembly sites), non-industrial sites (offices, warehouses, IT centers and R&D facilities), business travel (lease and rental cars and airplane travel) and logistics (air, sea and road transport).

CO2-equivalent or carbon dioxide equivalent is a quantity that describes, for a given mixture and amount of greenhouse gas, the amount of CO2 that would have the same global warming potential (GWP), when measured over a specified timescale (generally 100 years).