Philips’ Fourth Quarter Results 2015

Amsterdam, January 26, 2016

Report

Q4 2015 resultsPDF 745.1 kB

Presentation

Q4 2015 presentationPDF 1.6 MB

Webcast

Q4 2015 transcriptPDF 168.7 kB

Philips reports Q4 comparable sales growth of 2% to EUR 7.1 billion and a 13% improvement in Adjusted EBITA to EUR 842 million

Fourth-quarter highlights

  • Comparable sales up 2%, driven by 4% growth in the HealthTech portfolio
  • Currency-comparable order intake up 15%, driven by North America, China and Western Europe
  • Adjusted EBITA improved 50 basis points to 11.9% of sales and amounted to EUR 842 million
  • EBITA amounted to EUR 263 million, or 3.7% of sales
  • Net loss of EUR 39 million, impacted by one-time charges including previously announced pension de-risking, compared to net income of EUR 134 million in Q4 2014
  • Free cash flow of EUR 740 million, compared to EUR 559 million in Q4 2014
  • Philips Lighting separation process on track

Full-year highlights

  • Comparable sales up 2% to EUR 24.2 billion, driven by above 4% growth in the HealthTech portfolio
  • Currency-comparable order intake up 5%, driven by North America and Western Europe
  • Adjusted EBITA improved 20 basis points to 9.2% of sales and amounted to EUR 2.2 billion
  • EBITA totaled EUR 1.4 billion, or 5.7% of sales, compared to EUR 821 million, or 3.8% of sales, in 2014
  • Net income amounted to EUR 659 million, compared to EUR 411 million in 2014
  • Free cash flow of EUR 325 million, compared to EUR 497 million in 2014
  • Return on invested capital increased to 7.0%, compared to 4.5% in 2014
  • Proposal to maintain dividend at EUR 0.80 per share