Introduction
This chapter of this Annual Report contains the IFRS management commentary and the audited consolidated financial statements
including the notes thereon prepared in accordance with the International Financial Reporting Standards as adopted by the
European Union and with the statutory provisions of Part 9, Book 2 of the Dutch Civil Code. Together with the chapter Company
financial statements, this chapter contains the statutory financial statements of the Company.
The IFRS management commentary together with the following chapters, sections and pages of this Annual Report:
which are deemed incorporated and repeated in this chapter by reference, form the management report within the meaning of
section 2:391 of the Dutch Civil Code (and related Decrees).
The chapters Our group perfomance and Our sector performance provide an extensive analysis of the developments during the
financial year 2008 and the results. These chapters also provide information on the business outlook, investments, financing,
personnel and research and development activities. It should be noted that the figures used in these chapters are based on
US GAAP because Philips’ primary external and internal reporting is currently based on US GAAP. However, the commentary and
analysis set out in these chapters is no different under US GAAP or IFRS, except for the figures that are referred to.
The section IFRS management commentary provides an analysis in summarized form of the developments during the financial year
2008 and the results based on IFRS on group and sector level. To further facilitate understanding of the major differences
between US GAAP and IFRS that affect stockholders' equity and net income, this section includes a reconciliation from IFRS
to US GAAP in respect of these items.
The income statement included in the chapter Company financial statements has been prepared in accordance with section 2:402
of the Dutch Civil Code, which allows a simplified income statement in the Company financial statements in the event that
a comprehensive income statement is included in the consolidated financial statements.
For ‘Additional information’ within the meaning of section 2:392 of the Dutch Civil Code, please refer to the
Auditor's report, the
Auditor's report, the section
Proposed distribution to shareholders, and
note (70) Subsequent events for subsequent events.
The IFRS management commentary is based on the IFRS consolidated financial statements and should be read in conjunction with
these statements. The term EBIT has the same meaning as Income from operations (IFO), and is used to evaluate the performance
of the business.
Please refer to
Qualifier for more information about forward-looking statements, third-party market share data, fair value information, and revisions
and reclassifications.
The Board of Management of the Company hereby declares that, to the best of their knowledge, the IFRS financial statements
and Company financial statements give a true and fair view of the assets, liabilities, financial position and profit or loss
of the Company and the undertakings included in the consolidation taken as a whole and that the management report referred
to above gives a true and fair view concerning the position as per the balance sheet date, the development and performance
of the business during the financial year of the Company and the undertakings included in the consolidation taken as a whole,
together with a description of the principal risks that they face.
Board of Management
February 23, 2009
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