Koninklijke Philips N.v. · EURONEXT:PHIA
Koninklijke Philips — Koninklijke Philips Electronics — Q3 2005 Earnings Presentation
22 slides from Koninklijke Philips's earnings presentation, Oct 18, 2005
Slide 1: Cash flows from operating activities
Cash flows from operating activities Cash flows from operating activities improved by EUR 204 million to EUR 496 million. The increase was driven by higher dividend receipts from TSMC (EUR 163 million) and lower working capital requirements (EUR 157 million), mainly related to lower inventory build-
Slide 2: Gross capital expenditures
Gross capital expenditures Compared to Q3 2004, gross capital expenditures were reduced by EUR 23 million, mainly at Semiconductors and Lighting.
Slide 3: Inventories
Inventories Inventories as a percentage of sales amounted to 13.2%, a new record low for the third quarter, 0.2 percentage points below Q3 2004. In value terms, inventories decreased by EUR 33 million to EUR 4,022 million.
Slide 4: Net debt and group equity
Net debt and group equity During the quarter, net debt decreased by EUR 1,461 million to a debt-free position. Total debt decreased by EUR 122 million and liquid assets increased by EUR 1,339 million. Compared to Q2 2005, group equity increased by EUR 853 million. The positive net income of EUR 1,43
Slide 5: Employment; Medical Systems key data
Employment A seasonality-driven increase in the number of employees was partially offset by a reduction of 1,770 from the net effect of consolidations and deconsolidations. The main deconsolidation was the sale of parts of the monitor and entry-level flat television business to TPV Technology. The i
Slide 6: Medical Systems
Medical Systems sales ye
Slide 7: Business highlights
Business highlights The Metro Health Hospital in Grand Rapids, Michigan, completed the first installation of Xtenity — Philips’ healthcare IT system for tracking patient records and billing, which is based on technology from partner Epic Systems. Philips signed a EUR 48 million agreement with Capita
Slide 8: 2005
3 2005
Slide 9: Business highlights
Business highlights Philips launched the SmartTouch/Speed-XL — the latest in its line of shavers — featuring a contour-following system, a triple-track shaving system and 50% more shaving surface. Philips sold its 10 millionth Senseo after launching the product 4 years ago. Senseo is now sold in 8 c
Slide 10: Consumer Electronics
Consumer Electronics sales (93 2005
Slide 11: Business highlights
Business highlights At IFA — Europe’s largest consumer electronics show — Philips unveiled its latest digital consumer electronics products, including the Wireless Music Center, the Showline Media Center PC, a cordless videophone and a range of high-definition-ready flat-panel TVs. In the Netherland
Slide 12: Lighting
Lighting sales aes aes 0 [QI 2004 22004 32004 42004 QI-2005_Q2 2005 _Q3:2005
Slide 13: Business highlights
Business highlights As part of its drive to expand the LED lighting business, Philips announced the planned investment of approximately EUR 765 million to acquire Agilent’s 47% shareholding in Lumileds. Philips announced an investment of EUR 35 million to expand the production of MASTER Colour CDM g
Slide 14: Semiconductors
Semiconductors sales KO) Ep et) (QI 2004 Q2.2004 Q3 2004 42004 QI 2005 Q2 2005 Q3 2005,
Slide 15: Business highlights
Business highlights Hewlett Packard announced it will integrate Philips’ radio frequency identification (RFID) technology into its supply chain management processes, helping establish 2 nd generation RFID solutions as a standard. In the US, the communications technology provider Qualcomm selected Ph
Slide 16: Other Activities
Other Activities sales (1 2004 Q2.2004 Q3 2004 42004 QI 2005 Q2.2005 QB 2005.
Slide 17: Business highlights
Business highlights Samsung adopted the complete range of Philips’ LifeVibes software products for music, voice, video, java and DRM. In North America — where voice quality is a key differentiator —the communications technology provider Qualcomm adopted LifeVibes Voice solutions to improve clarity a
Slide 18: Unallocated: Corporate and Regional overheads
Unallocated: Corporate and Regional overheads income (loss) from operations (IFO) (50) (01 2004 02.2004 32004 42004 QI 2005 2 2005 @3-2005,
Slide 19: Unallocated: Pensions/postretirement benefit costs
Unallocated: Pensions/postretirement benefit costs income (loss) from operations (IFO) 1 2004 2.2004 32004 42004 OF 2005 22005 3 2005
Slide 20: Business highlights
Business highlights One year after launching its ‘Sense and simplicity’ campaign, Philips unveiled emerging design concepts in Paris, demonstrating the potential for translating simplicity into groundbreaking products. Philips jumped 12 places in the 2005 Business Week/Interbrand annual ranking of t
Slide 21: LG Philips Displays joint venture (100%)
LG Philips Displays joint venture (100%) sales 1.000 “QI 2004 02 2004 Q3 2004 4 2004 1 2005 Q22005 Q3 2005
Slide 22: Financial performance
Financial performance Sales declined by 31% compared to Q3 2004. The decline was evident in all regions except North and Latin America, where television tube sales grew by 3%. Net restructuring charges totaled EUR 12 million in the quarter. Philips’ share in the net loss was EUR 4 million, a deterio
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