Annual Report 2008
Did the report help you?
Take survey (7 questions, 1 minute)

2008 financial performance

Previous - Philips Design Next - Group Management & Services: 2008 financial performance

In 2008, EBITA amounted to a loss of EUR 226 million, compared to a loss of EUR 81 million in 2007, which included a EUR 6 million gain on the sale of TASS. The higher loss was mainly due to EUR 18 million restructuring charges at Assembléon, a EUR 13 million loss from the sale of High Tech Plastics – Optics, as well as higher investments in the Lighting & Cleantech and Healthcare Incubator activities and lower income from an intellectual property transaction in 2007.

Cash flow before financing activities improved by EUR 38 million to an outflow of EUR 126 million, largely thanks to higher license income receipts and lower net capital expenditures, partly offset by lower proceeds from the sale of businesses.

Key data
in millions of euros
 
2006
2007
2008
 
 
 
 
Sales
1,379
535
337
Sales growth
 
 
 
% decrease, nominal
(28)
(61)
(37)
% increase (decrease), comparable
(9)
38
(27)
EBITA Corporate Technologies
(91)
(76)
(172)
EBITA Corporate Investments/ Other
16
(5)
(54)
EBITA
(75)
(81)
(226)
as a % of sales
(5.4)
(15.1)
(67.1)
EBIT
(76)
(82)
(226)
as a % of sales
(5.5)
(15.3)
(67.1)
Net operating capital (NOC)
128
246
153
Cash flows before financing activities
(49)
(164)
(126)
Employees (FTEs)
8,832
5,888
5,324
 
For a reconciliation to the most directly comparable US GAAP measures, see the chapter Reconciliation of non-US GAAP information
Previous - Philips Design Next - Group Management & Services: 2008 financial performance
  • EBITA
    EBITA - US GAAP: earnings before interest, tax and amortization (EBITA) represents income from continuing operations excluding results attributable to minority interest holders, results relating to equity-accounted investees, income taxes, financial income and expenses, amortization and impairment on intangible assets (excluding software) and write-off of in-process R&D. Philips believes that EBITA information makes the underlying performance of its businesses more transparent by factoring out the amortization of intangible assets, which arises when acquisitions are consolidated.
  • Cash flow before financing activities
    The sum of net cash flow from operating activities and net cash flow from investing activities.
  • NOC
    NOC is defined as: total assets excluding assets from discontinued operations less: (a) cash and cash equivalents, (b) deferred tax assets, (c) other non-current financial assets, (d) investments in equity-accounted investees, and after deduction of: (e) provisions excluding deferred tax liabilities, (f) accounts and notes payable, (g) accrued liabilities, (h) current/non-current liabilities, and (i) trading securities.
This is an interactive electronic version of the Philips Annual Report 2008 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 Philips Annual Report 2008. The printed version is available as a PDF file on this website. Information about: forward-looking statements, third-party market share data, fair value information, US GAAP basis of presentation, use of non-US GAAP information, statutory financial statements and management report, revision and reclassifications and analysis of 2007 compared to 2006.
92
92
debugging messages