Performance highlights

Prior-period financial statements and related information 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 accounting for pensions (see note (30) Post-employment benefits). For a reconciliation to the most directly comparable GAAP measures, see Reconciliation of non-GAAP information.

Financial table
all amounts in millions of euros unless otherwise stated
 
2011
2012
2013
 
 
 
 
Sales
20,992
23,457
23,329
 
 
 
 
EBITA
1,435
1,106
2,451
as a % of sales
6.8
4.7
10.5
 
 
 
 
EBIT
(479)
648
1,991
as a % of sales
(2.3)
2.8
8.5
 
 
 
 
Net income (loss)
(1,456)
(30)
1,172
 
 
 
 
Net income attributable to shareholders per common share in euro:
 
 
 
- basic
(1.53)
(0.04)
1.28
- diluted
(1.53)
(0.04)
1.27
 
 
 
 
Net operating capital
10,382
9,316
10,238
 
 
 
 
Free cash flows
(97)
1,627
172
 
 
 
 
Shareholders’ equity
12,328
11,151
11,214
 
 
 
 
Employees at December 31
125,240
118,087
116,681
of which discontinued operations
5,645
2,005
1,992
1)
Mid-term financial targets
2)
Including restructuring and acquisitions
3)
Excluding Mergers & Acquisitions impact
4)
Based on the results of 60 “pulse surveys” as there was no full-scope Employee Engagement Survey in 2012
5)
For a definition of of mature and growth geographies, see Definitions and abbreviations
6)
As measured by Interbrand
Financial performance 2013
 
Target1)
Actual
CAGR 2012 - 2013 %
4-6%
4.5%
EBITA as % of sales2)
10-12%
10.5%
ROIC %3)
12-14%
15.3%
1)
Mid-term financial targets set in 2011
2)
Including restructuring and acquisitions-related charges
3)
Excluding Mergers & Acquisitions impact

Group

 
2012
2013
 
Sales
23,457
23,329
1%
Green product sales
10,981
11,815
8%
Sales in mature geographies5)
15,407
14,825
4%
Sales in growth geographies5)
8,050
8,504
6%
EBITA
1,106
2,451
122%
Net operating capital
9,316
10,238
10%

Healthcare

 
2012
2013
 
Sales
9,983
9,575
4%
Green product sales
3,610
3,690
2%
Sales in mature geographies5)
7,615
7,154
6%
Sales in growth geographies5)
2,368
2,421
2%
EBITA
1,226
1,512
23%
Net operating capital
7,976
7,437
7%

Consumer Lifestyle

 
2012
2013
 
Sales
4,139
4,605
7%
Green product sales
1,619
2,270
40%
Sales in mature geographies5)
2,365
2,418
2%
Sales in growth geographies5)
1,954
2,187
12%
EBITA
456
483
6%
Net operating capital
1,205
1,261
5%

Lighting

 
2012
2013
 
Sales
8,442
8,413
0%
Green product sales
5,572
5,855
2%
Sales in mature geographies5)
5,010
4,758
5%
Sales in growth geographies5)
3,432
3,655
6%
EBITA
128
695
443%
Net operating capital
4,635
4,462
4%
(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.

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.

Growth geographies are the developing geographies comprising of Asia Pacific (excluding Japan, South Korea, Australia and New Zealand), Latin America, Central & Eastern Europe, the Middle East (excluding Israel) and Africa.