Share information

Market capitalization

Philips’ market capitalization was EUR 24.3 billion at year-end 2013. The highest closing price for Philips’ shares during 2013 in Amsterdam was EUR 26.78 on December 27, 2013 and the lowest was EUR 20.26 on January 4, 2013. The highest closing price for Philips’ shares during 2013 in New York was USD 36.97 on December 31, 2013 and the lowest was USD 26.60 on January 4, 2013.

Share capital structure

During 2013, Philips’ issued share capital decreased by approximately 19 million common shares to a level of 938 million common shares. The main reasons for this are the cancellation of 37,778,510 Philips shares acquired pursuant to the EUR 2 billion share repurchase program and the issuance of 18,491,337 shares related to the elective dividend. The basic shares outstanding decreased from 915 million at the end of December 2012 to 913 million at the end of 2013. As of December 31, 2013, the shares held in treasury amounted to 25 million shares, of which 21 million are held by Philips to cover long-term incentive and employee stock purchase plans.

The Dutch Act on Financial Supervision imposes an obligation to disclose (inter alia) percentage holdings in the capital and/or voting rights in the Company when such holdings reach, exceed or fall below 3, 5, 10, 15, 20, 25, 30, 40, 50, 60, 75 and 95 percent (as a result of an acquisition or disposal by a person, or as a result of a change in the company’s total number of voting rights or capital issued). Certain cash settled derivatives are also taken into account when calculating the capital interest. Pursuant to new legislation, effective July 1, 2013, the obligation to disclose capital interest does not only relate to gross long positions, but also to gross short positions. Required disclosures must be made to the Netherlands Authority for the Financial Markets (AFM) without delay. The AFM then notifies such disclosures to the Company and includes them in a register which is published on the AFM’s website. Furthermore, an obligation to disclose (net) short positions is set out in the EU Regulation on Short Selling.

On July 1, 2013 the Company received notification from the AFM that it had received disclosures under the Dutch Act on Financial Supervision of a substantial holding of 4.3% by Dodge & Cox International Stock Fund. On August 14, 2013 the Company received notification from the AFM that it had received disclosures under the Dutch Act on Financial Supervision of a total shareholding of 3.01% and 3.45% of the voting rights by BlackRock Inc. On January 3, 2014 the Company received notification from the AFM that it had received disclosures under the Dutch Act on Financial Supervision of a substantial holding of 3.08% by Norges Bank. 

Based on a survey in December 2013 and information provided by several large custodians, the following shareholder portfolio information is included in the graphs Shareholders by region and Shareholders by style.

1) Split based on identified shares in shareholder identification
1) Split based on identified shares in shareholder identification
2) SWF: Sovereign Wealth Fund
3) GARP: growth at reasonable price

Share repurchase programs

Share repurchases for capital reduction purposes

By the end of Q2 2013, Philips completed the EUR 2 billion share repurchase program that started in July 2011. On September 17, 2013, Philips announced a new EUR 1.5 billion share repurchase program. This program started on October 21, 2013 and is to be completed over the next two to three years. By the end of 2013, Philips had completed 7% of the EUR 1.5 billion share repurchase program.

Share repurchases related to Long-Term Incentive (LTI) and employee stock purchase programs

To cover Philips’ outstanding obligations resulting from past and present long-term incentive and employee stock purchase programs dating back to 2004, Philips will repurchase up to 12 million additional Philips shares on NYSE Euronext Amsterdam, to be executed during 2014. The shares repurchased will be held by Philips as treasury shares until they are distributed to participants. Philips started this program on January 28, 2014 and will enter into subsequent discretionary management agreements with one or more banks to repurchase Philips shares within the limits of relevant laws and regulations (in particular EC Regulation 2273/2003) and Philips’ articles of association.

Further details on the share repurchase programs can be found on the Investor Relations website. For more information see Corporate governance.

Impact of share repurchases on share count
in thousands of shares
 
2009
2010
2011
2012
2013
 
 
 
 
 
 
Shares issued
972,412
986,079
1,008,975
957,133
937,846
Shares in treasury
44,955
39,573
82,880
42,542
24,508
Shares outstanding
927,457
946,506
926,095
914,591
913,338
 
 
 
 
 
 
Shares repurchased
2
15
47,508
46,871
27,811
Shares cancelled
82,365
37,779

A total of 24,508,022 shares were held in treasury by the Company at December 31, 2013 (2012: 42,541,687 shares). As of that date, a total of 44 million rights to acquire shares (under long-term incentive plans) were outstanding (2012: 52 million).

 
Period
total number of shares purchased
average price paid per share in EUR
total number of shares purchased as part of publicly announced programs
maximum EUR amount of shares that may yet be purchased under the programs
 
 
 
 
 
January, 2013
2,806,796
21.38
2,806,796
471,195,448
February, 2013
6,340,305
22.55
6,339,803
328,260,385
March, 2013
2,368,862
23.12
2,367,018
273,523,670
April, 2013
4,552,000
22.10
4,552,000
172,938,033
May, 2013
5,119,261
22.12
5,117,783
59,707,937
June, 2013
2,766,495
21.58
2,766,377
July, 2013
August, 2013
35
21.05
September, 2013
October, 2013
766,047
25.85
766,040
1,480,195,100
November, 2013
1,434,010
26.10
1,434,010
1,442,763,231
December, 2013
1,657,545
25.70
1,657,545
1,400,158,416

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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.