Cash flows provided by continuing operations

Cash flows from operating activities

Net cash flows from operating activities amounted to EUR 1,303 million in 2014, which was EUR 391 million higher than in 2013, mainly due to higher inflows from working capital reductions.

Philips Group
Cash flows from operating activities and net capital expenditures in millions of EUR
2010 - 2014
1,691(543)‘10610(663)‘111,886(241)‘12912(830)‘131,303Cash flows from operatingactivities(806)Net capital expenditures‘14

Condensed consolidated statements of cash flows for the years ended December 31, 2012, 2013 and 2014 are presented below:

Philips Group
Condensed consolidated cash flow statements1) in millions of EUR
2012 - 2014
 
2012
2013
2014
Net income (loss)
(30)
1,172
411
Adjustments to reconcile net income to net cash provided by operating activities
1,916
(260)
892
Net cash provided by operating activities
1,886
912
1,303
Net cash used for investing activities
(712)
(862)
(984)
Cash flows before financing activities2)
1,174
50
319
Net cash used for financing activities
(293)
(1,241)
(1,189)
Cash (used for) provided by continuing operations
881
(1,191)
(870)
Net cash (used for) provided by discontinued operations
(143)
(115)
193
Effect of changes in exchange rates on cash and cash equivalents
(51)
(63)
85
Total change in cash and cash equivalents
687
(1,369)
(592)
Cash and cash equivalents at the beginning of year
3,147
3,834
2,465
Cash and cash equivalents at the end of year
3,834
2,465
1,873
This item is optimized for devices with a larger screen. You can still view this item in PDF format.
Download PDF

Cash flows from investing activities

In 2014, cash flows from investing activities resulted in a net outflow of EUR 984 million. This was attributable to EUR 806 million cash used for net capital expenditures, EUR 258 million used for acquisitions of businesses and non-current financial assets, and EUR 7 million used for derivatives and current financial assets, partly offset by EUR 87 million of net proceeds from non-current financial assets and divestments.

In 2013, cash flows from investing activities resulted in a net outflow of EUR 862 million. This was attributable to EUR 830 million cash used for net capital expenditures, EUR 101 million cash used for derivatives and current financial assets, as well as EUR 24 million used for acquisitions of businesses and non-current financial assets, partly offset by EUR 93 million of net proceeds mainly from divestment.

Net capital expenditures

Net capital expenditures amounted to a cash outflow of EUR 806 million, compared to an outflow of EUR 830 million in 2013. The year-on-year decrease was mainly due to lower investments at Healthcare and Lighting.

Philips Group
Cash flows from acquisitions and financial assets, divestments and derivatives in millions of EUR
2010 - 2014
360(241)119‘10132(550)(418)‘11(43)(428)(471)‘12(8)(24)(32)‘1380Divestments and derivatives(258)Acquisitions and financial assets(178)‘14

Acquisitions and financial assets

The net cash impact of acquisitions of businesses and financial assets in 2014 was a total of EUR 258 million. There was a EUR 177 million outflow for acquisitions of businesses, mainly related to the acquisition of a 51% interest in the General Lighting Company (GLC) in The Kingdom of Saudi Arabia (KSA), and a EUR 81 million outflow for financial assets, mainly in the form of a EUR 60 million loan to TPV Technology Limited.

The net cash impact of acquisitions of businesses and financial assets in 2013, was a total of EUR 24 million. There was a EUR 11 million outflow for acquisitions of businesses and a EUR 13 million outflow for financial assets.

Divestments and derivatives

Cash proceeds of EUR 87 million were received mainly from divestment of the Shakespeare business and the sale of shares in Neusoft. Cash flows from derivatives and current financial assets led to a net cash outflow of EUR 7 million.

In 2013, cash proceeds of EUR 93 million were received from divestments, mainly of non-strategic businesses within Healthcare. Cash flows from derivatives and current financial assets led to a net cash outflow of EUR 101 million.

Cash flows from financing activities

Net cash used for financing activities in 2014 was EUR 1,189 million. Philips’ shareholders were given EUR 729 million in the form of a dividend, of which the cash portion of the dividend amounted to EUR 292 million. The net impact of changes in debt was a decrease of EUR 301 million. Additionally, net cash outflows for share buy-back and share delivery totaled EUR 596 million.

Net cash used for financing activities in 2013 was EUR 1,241 million. Philips’ shareholders were given EUR 678 million in the form of a dividend, of which the cash portion of the dividend amounted to EUR 272 million. The net impact of changes in debt was a decrease of EUR 407 million, including the redemption of a USD 143 million bond. Additionally, net cash outflows for share buy-back and share delivery totaled EUR 562 million.

(0)
(0)

CO2-equivalent or carbon dioxide equivalent is a quantity that describes, for a given mixture and amount of greenhouse gas, the amount of CO2 that would have the same global warming potential (GWP), when measured over a specified timescale (generally 100 years).