2000 - 9
SECURITIES AND EXCHANGE COMMISSION
Washington, D.C.
20549
FORM 6-K
REPORT OF FOREIGN ISSUER
Pursuant to Rule 13a-16 or 15d-16 of the
Securities Exchange Act of 1934
For the period commencing August 15, 2000 through October 17, 2000
KONINKLIJKE PHILIPS ELECTRONICS N.V.
(Name of registrant)
Rembrandt Tower, Amstelplein 1, 1096 HA Amsterdam, The Netherlands
(Address of principal executive offices)
Indicate by check mark whether the registrant files or will file
annual reports under cover of Form 20-F or Form 40-F
Form 20-F X Form 40-F
Indicate by check mark whether the registrant by furnishing the
information contained in this form is also thereby furnishing the information to
the Commission pursuant to Rule 12g3-2(b) under the Securities Exchange Act of
1934:
Yes No X
If "Yes" is marked, indicate below the file number assigned to the
registrant in connection with Rule 12g3-2(b); 82- .
Name and address of person authorized to receive notices
and communications from the Securities and Exchange Commission:
Andrew D. Soussloff, Esq.
Sullivan & Cromwell
125 Broad Street
New York, New York 10004
This report comprises a copy of the Quarterly Report of the Philips Group for
the nine months ended September 30, 2000, dated October 17, 2000.
Pursuant to the requirements of the Securities Exchange Act of 1934, the
registrants have duly caused this report to be signed on their behalf, by the
undersigned, thereunto duly authorized at Amsterdam, on the 17th day of October,
2000.
KONINKLIJKE PHILIPS ELECTRONICS N.V.
/s/ C. Boonstra
C. Boonstra
(President, Chairman of the
Board of Management)
/s/ J.H.M. Hommen
J.H.M. Hommen
(Executive Vice-President,
Member of the Board of Management
and Chief Financial Officer)
Report on the performance of the Philips Group
Key performance data for the period ending September 30
in millions of euros (EUR) unless otherwise stated
the data included in this report are unaudited
3D QUARTERLY REPORT, OCTOBER 17, 2000
3rd quarter January to September
2000 1999 2000 1999
Sales 9,371 7,744 26,855 21,879
% nominal growth 21 6 23 0
% comparable growth 11 6 12 3
Ebitda 1,521 801 3,893 2,496
Income from operations 945 352 2,332 1,220
as a % of sales 10.1 4.5 8.7 5.6
Income from continuing operations 2,066 374 6,810 1,117
per common share (in EUR) 1) 1.58 0.28 5.15 0.80
Cash flows before financing activities (816) (1,748) 1,895 (2,844)
Income from operations
as a % of net oper. capital (RONA) 27.4 16.4
Income from continuing operations
as a % of stockh. equity (ROE) 56.5 11.7
Net debt : group equity ratio 8:92 10:90
Number of employees 239,370 230,692
1) Per share data in this report are based on the average number of shares
outstanding after the 4-for-1 stock split which was effected on April 14,
2000; prior-year data have been restated accordingly.
The third quarter
o Income from continuing operations: EUR 2,066 million (EUR 1.58 per share)
o Nominal sales growth: 21% / Comparable sales growth: 11%
o Income from operations: EUR 945 million, 10.1% of sales
o Continued strong performance at Semiconductors, much improved results at
Components
o Good performance across the sectors
The third quarter (continued)
Income from continuing operations in the third quarter amounted to EUR 2,066
million (EUR 1.58 per share) compared to EUR 374 million (EUR 0.28 per share) in
the corresponding period of 1999. Included in income is a non-recurring book
gain of EUR 491 million related to Philips' share of the increased equity value
of Taiwan Semiconductor Manufacturing Corporation (TSMC), following its merger
with TASMC and WSMC, and a non-taxable gain of EUR 681 million from the sale of
a portion of Philips' shares in JDS Uniphase (EUR 43 million in 1999).
Furthermore, a number of incidental items were included in income from
operations, which on balance came to a positive of EUR 123 million after-tax.
Excluding the above items, income from continuing operations came to EUR 771
million (EUR 0.58 per share), compared with EUR 331 million (EUR 0.25 per share)
in the third quarter 1999, mainly driven by higher operational performance of
most product sectors.
Sales in the third quarter came to EUR 9,371 million, a 21% nominal increase on
the year earlier quarter. Adjusted for exchange rate fluctuations (10%),
comparable sales growth came to 11%, compared to 6% a year earlier. The strong
sales growth in the third quarter was driven by booming sales of Semiconductors,
with sales for Components, Consumer Electronics and Domestic Appliances and
Personal Care also ending significantly higher. Sales in Lighting and Medical
Systems were virtually flat, while Origin's sales were lower. The sales growth
in the third quarter was largely attributable to Asia Pacific and Europe, where
Germany and Eastern Europe headed the strong increase. Sales in North America,
on a comparable basis, were lower. Price erosion in the third quarter was, at
5%, substantially lower than the 8% in the corresponding quarter of 1999,
reflecting the supply constraints in the semiconductor and consumer electronics
industries. Volume growth came to 16%.
Income from operations in the third quarter was EUR 945 million (10.1% of
sales), strongly exceeding the EUR 352 million (4.5% of sales) of the
corresponding quarter last year. Income included a EUR 309 million gain related
to the sale of the Advanced Ceramics and Modules (AC&M) business, charges
relating to various restructurings (EUR 110 million), especially at Components,
and a EUR 45 million provision for the jubilee fund (employee rewards for
long-term service with the Company). Excluding these incidental items income
improvement was EUR 440 million.
Financial income and expenses in the third quarter were EUR 649 million compared
to EUR 7 million in the year earlier period. The net result on the sale of JDS
Uniphase shares in the quarter explains the variance.
Philips' results relating to unconsolidated companies amounted to EUR 668
million in the quarter, versus EUR 99 million last year, primarily resulting
from the previously mentioned TSMC gain of EUR 491 million. Disregarding this
gain, results from unconsolidated companies still rose to EUR 177 million, from
EUR 99 million last year. TSMC's operational results contributed strongly to the
improvement, coming to EUR 162 million, which included EUR 20 million
amortization of goodwill from the merger
with TASMC, versus EUR 52 million in the year earlier quarter. As a result of
the aforementioned merger, as of July 1, 2000, and for the next five years,
Philips' quarterly results for TSMC will include a EUR 20 million charge for
amortization of goodwill. LG.Philips LCD Co.'s contribution was EUR 61 million
from EUR 65 million a year ago.
Minority interests came to a loss of EUR 16 million compared with a loss of EUR
12 million last year, reflecting improved performance at FEI/Micrion.
Net income amounted to EUR 2,066 million (EUR 1.58 per share) versus EUR 372
million (EUR 0.28 per share) a year ago.
The first nine months
Income from continuing operations in the first nine months amounted to EUR 6,810
million (EUR 5.15 per share), compared to EUR 1,117 million (EUR 0.80 per share)
in the corresponding period of 1999. Included in income was a gain of EUR 2,595
million related to the sale of approximately 70% of Philips' shares in ASM
Lithography (ASML), a book gain of EUR 680 million related to Philips' share of
the increased equity value of TSMC, following its merger with TASMC and WSMC and
its issuance of American Depository Receipts (ADR's), a non taxable gain of EUR
1,207 million from the sale of a portion of the JDS Uniphase shares (EUR 73
million in 1999), and a gain of EUR 121 million resulting from the swap of
Philips' equity in Beltone Electronics Inc. into shares of GN Great Nordic A/S.
Income from continuing operations in the first nine months of 1999 included a
gain from the sale of Conventional Passive Components and restructuring charges,
the combined effect of which totaled a positive after-tax amount of EUR 82
million. Excluding these non-recurring items, income from continuing operations
came to EUR 2,207 million, which is EUR 1,245 million above the comparable
income of last year. The improved income resulted from higher operational
performance, especially in Semiconductors and Components, and increased results
at unconsolidated companies, TSMC in particular, partly offset by higher
financing costs.
Sales in the first nine months were EUR 26,855 million, nominally 23% higher
than last year. Adjusted for consolidation changes (1%) and exchange rates
(10%), comparable sales growth came to 12%, compared with 3% last year.
Components and Semiconductors achieved above average sales growth. Price erosion
was at 5%, considerably lower than the 8% in the year earlier period. Volume
growth was 18% versus 11% a year ago. Geographically, sales growth accelerated
in Europe, Asia Pacific and Latin America.
Income from operations amounted to EUR 2,332 million (8.7% of sales), almost
doubling the EUR 1,220 million (5.6% of sales) recorded last year. The
improvement was largely due to the higher volume of activities, improved
efficiency and cost controls, and lower price erosion. Income included the
previously mentioned EUR 309 million gain related to the sale of the AC&M
business, and reduced pension costs of EUR 265 million. Income from operations
in the first nine months of 1999 included the EUR 169 million gain from the sale
of Conventional Passive Components.
The RONA ratio amounted to 27.4%, compared to 16.4% in the year earlier period.
Almost all product sectors recorded positive income developments, led by
Semiconductors and Components.
Financial income and expenses were EUR 1,086 million versus EUR 45 million last
year. Again, the gain on the sale of JDS Uniphase shares, amounting to EUR 1,207
million, was the main reason for the increase.
The tax burden has been determined at a tentative rate of 20%. The gain on the
sale of JDS Uniphase shares is not taxable which brings the overall tax burden
to 12.9%, compared to 20% last year.
Philips' results relating to unconsolidated companies rose to EUR 3,876 million
against EUR 140 million last year. The gain on the sale of ASML shares (EUR
2,595 million), the swap of Philips' equity in Beltone Electronics Inc. into
shares of GN Great Nordic A/S (EUR 121 million), and the TSMC related gain (EUR
680 million), explains most of the increase. Excluding these one-off items,
operational performance still improved to EUR 480 million against EUR 140
million last year. Improvement came mainly from TSMC and LG.Philips LCD.
Minority interests came to a loss of EUR 44 million compared with a loss of EUR
35 million last year, reflecting improved performance at FEI/Micrion and at a
number of joint ventures in China.
Net income amounted to EUR 6,810 million (EUR 5.15 per share) versus EUR 1,112
million (EUR 0.80 per share) last year.
Trend per product sector (nine months)
In the Lighting sector, the nominal increase in sales was 11%, whilst comparable
growth came to 2%. Asia Pacific, Eastern Europe and Brazil recorded the
strongest growth. Income from operations was EUR 492 million, compared with EUR
447 million last year, largely attributable to an improved product mix. Strong
price erosion was partly offset by positive currency influences.
Sales in the Consumer Electronics sector rose 19% in nominal terms, and 11% on a
comparable basis. Sales volume increased 20%, countered by 9% price erosion. All
product groups recorded strong growth.
Income from operations improved to EUR 298 million from EUR 135 million in the
first nine months of the year, mainly due to the turnaround of Consumer
Communications and higher license income. Income of Mainstream CE was
approximately at the same level. Income in the third quarter, however, was up on
last year's corresponding period. In Digital Networks, positive contribution
from certain satellite applications was more than offset by investments in
high-growth cable and terrestrial applications, especially in North America, and
other digital projects.
The Domestic Appliances and Personal Care sector posted a nominal sales growth
of 17% (9% comparable increase). Male shaving & grooming delivered the
strongest growth, clearly exceeding the market. The sales upturn was most
predominant in Asia Pacific. Income from operations reached EUR 162 million
against EUR 131 million last year.
The Components sector achieved strong nominal sales growth of 30%. The
comparable increase was 20%, resulting from a 25% rise in volume, offset by 5%
price erosion (down from 10%). The sector was particularly driven by vigorous
growth in Optical Storage products. North America and Europe posted the highest
geographic growth rates.
Income from operations came to EUR 508 million compared with EUR 203 million
last year. This year's income includes the EUR 309 million gain from AC&M,
and EUR 98 million in restructuring costs, whilst last year included the EUR 169
million gain on the sale of Conventional Passive Components and a EUR 38 million
restructuring charge for AMLCD Waalre. The turnaround in Optical Storage and the
improved performance of Display Components account for the higher income.
Sales in the Semiconductors sector recorded a 61% nominal sales increase. All
businesses, including VLSI, contributed. The comparable sales growth was 34%,
composed of 37% volume rise, offset by 3% price erosion (down from 9%). The
sales increase was most dramatic in Asia Pacific and Europe.
Income from operations more than doubled from EUR 447 million (14.2% of segment
revenues) last year to EUR 938 million (19.2% of segment revenues), due to
strong sales growth, the strong dollar, and a higher contribution from VLSI.
Sales of the Medical Systems sector ended 19% above a year ago (4% comparable
growth) with North and Latin America the main contributors. Order intake was up
sharply in the third quarter.
Income from operations increased from EUR 69 million last year to EUR 99
million. Strong sales growth in all regions, except Asia Pacific, contributed,
as did ATL Ultrasound. With effect from July, MedQuist was consolidated in this
sector.
Sales at Origin ended 12% lower against the year before, both on a nominal and
comparable basis, reflecting the slow market across the IT industry.
Income from operations came to a negative EUR 9 million, compared with last
year's positive EUR 82 million, resulting from the lower sales level,
restructuring costs, and higher goodwill charges.
The Miscellaneous sector increased 18% in nominal and 15% in comparable terms.
The main drivers were FEI/Micrion, Machinefabrieken and Electronic Manufacturing
Technology (EMT).
Income from operations fell to a loss of EUR 84 million from a loss of EUR 38
million, primarily due to charges in connection with the sale of Philips
Projects and restructuring charges at the Research Center.
In the segment Unallocated income was positively impacted by reduced pension
costs of EUR 157 million.
Trend per geographic area (nine months)
Sales growth in Europe continued strongly through the first nine months, and
ended 18% higher on a nominal basis (16% comparable). The larger part of the
growth was attributable to Semiconductors, Components and Consumer Electronics.
Eastern Europe increased steeply (+62% comparable), related to Consumer
Electronics (Mainstream CE and Digital Networks), Semiconductors and Lighting.
Germany continued to account for the strongest growth in Western Europe.
Sales in North America were up 19% nominally, and 1% comparably. Strong growth
in Components was partly offset by flat sales in Consumer Electronics
(Mainstream CE and Consumer Communications) and Lighting.
Sales in Latin America were 24% higher in nominal terms and 13% on a comparable
basis. Solid growth was realized in most sectors, particularly in Consumer
Electronics, Components, Semiconductors and Medical Systems. DAP and Lighting
recorded virtually flat sales. Brazil continued strong sales growth (+27%
comparable).
Sales in Asia Pacific increased nominally by 37% (19% comparable). The steep
growth of the second quarter continued in the third quarter. All sectors
contributed to the solid growth, headed by Semiconductors (43%). On a country
basis, sales growth was strongest in Singapore, Japan, China and Korea.
Income from operations improved in all regions. Europe showed a very strong
increase in income, driven by Semiconductors. Including the gain on the sale of
AC&M, Asia Pacific showed a doubling of income, with quarter-by-quarter
improvement this year. North America saw a modest growth in income.
Balance sheet ratios and cash flows
Inventories at the end of September 2000 were 15.8% of sales, lower than the
16.6% a year earlier. The average collection period of outstanding trade
receivables was the equivalent of 1.6 months of sales, unchanged from last
quarter and one year ago.
Cash provided by operating activities in the first nine months ended at EUR
1,018 million, compared with EUR 466 million last year, mainly as a result of
much higher operating performance, partly offset by higher cash requirements in
working capital.
Cash provided by investing activities was EUR 877 million, as the sale of
securities and activities exceeded capital expenditures and acquisitions. Last
year, cash used for investing activities was EUR 3,310 million, mainly the
result of acquisitions.
The resulting cash flow surplus of EUR 1,895 million compares with a deficit of
EUR 2,844 million in the same period of last year.
Employees
The number of employees at the end of September 2000 was 239,370, an increase of
12,452 over the comparable position on January 1, 2000, partly resulting from
the acquisition of MedQuist, and increased headcount at Semiconductors and
Components.
Subsequent Events
On August 28, Philips announced its intention to merge its IT subsidiary,
Origin, with Atos, a leading European e-services provider, creating Atos Origin.
The transaction is expected to be completed in the fourth quarter.
Outlook
As stated earlier, the year 2000 will be a record year in respect of: sales,
income from operations and income from continuing operations. We will meet our
financial objectives this year: RONA at 24% or better, double-digit earnings
growth, and a positive cash flow.
October 17, 2000
Royal Philips Electronics
Board of Management
The accompanying financial statements are an integral part of this quarterly
report.
Statements of income
in millions of euros (EUR) unless otherwise stated
Consolidated statements of income
3rd quarter January to September
2000 1999 2000 1999
Sales 9,371 7,744 26,855 21,879
Ebitda 1,521 801 3,893 2,496
Income from operations 945 352 2,332 1,220
Financial income and expenses 649 7 1,086 45
Income before taxes 1,594 359 3,418 1,265
Income taxes (180) (72) (440) (253)
Income after taxes 1,414 287 2,978 1,012
Results relating to
unconsolidated companies 668 99 3,876 140
Minority interests (16) (12) (44) (35)
Income from continuing operations 2,066 374 6,810 1,117
Extraordinary items - net - (2) - (5)
Net income 2,066 372 6,810 1,112
Basic earnings per common share in EUR
(after stock split):
- income from continuing operations 1.58 0.28 5.15 0.80
- net income 1.58 0.28 5.15 0.80
'Safe Harbor' Statement under the Private Securities Litigation Reform Act of
October 1995
This document contains certain forward-looking statements with respect to the
financial condition, results of operations and business of Philips and certain
of the plans and objectives of Philips with respect to these items. By their
nature, forward-looking statements involve risk and uncertainty because they
relate to events and depend on circumstances that will occur in the future.
There are a number of factors that could cause actual results and developments
to differ materially from those expressed or implied by these forward-looking
statements. These factors include, but are not limited to, levels of consumer
and business spending in major economies, changes in consumer tastes and
preferences, the levels of marketing and promotional expenditures by Philips and
its competitors, raw materials and employee costs, changes in future exchange
and interest rates, changes in tax rates and future business combinations,
acquisitions or dispositions and the rate of technical changes. Market share
estimates contained in this report are based on outside sources such as
specialized research institutes, industry and dealer panels, etc. in combination
with management estimates.
Balance sheets and additional ratios
in millions of euros (EUR) unless otherwise stated
Consolidated balance sheets
2000 1999 1999
Sept. 30, Dec. 31, Sept. 30,
Cash and cash equivalents 1,795 2,331 1,718
Securities 1,468 1,523 -
Receivables 7,636 6,453 6,432
Inventories 5,759 4,566 5,053
Unconsolidated companies 3,860 2,091 1,470
Other non-current financial assets 511 340 1,770
Non-current receivables 2,407 2,038 1,484
Property, plant and equipment 8,729 7,332 7,099
Intangible assets 4,160 2,822 2,769
TOTAL ASSETS 36,325 29,496 27,795
Accounts payable and other liabilities 9,348 7,974 7,215
Debt 3,508 3,314 3,371
Provisions 3,631 3,118 3,062
Minority interests 471 333 301
Stockholders' equity 19,367 14,757 13,846
TOTAL LIABILITIES AND STOCKHOLDERS' EQUITY 36,325 29,496 27,795
Ratios
Stockholders' equity:
Per common share in EUR (after stock split) 15.09 11.08 10.42
Inventories as a % of sales 15.8 14.5 16.6
Outstanding trade receivables, in months' sales 1.6 1.4 1.6
Number of common shares outstanding
(after stock split)
Shares in thousands 1,283,309 1,331,601 1,329,394
Statements of cash flows
in millions of euros (EUR) unless otherwise stated
Consolidated statements of cash flows*
3rd quarter January to September
2000 1999 2000 1999
Cash flows from operating
activities:
Net income 2,066 372 6,810 1,112
Adjustments to reconcile net
income to net cash provided by
operating activities:
Depreciation and amortization 598 472 1,623 1,299
Net gain on sale of investments (1,016) (77) (4,289) (386)
Income unconsolidated companies (691) (122) (1,171) (124)
Minority interests 9 7 33 21
Increase in working capital (530) (552) (1,773) (1,234)
Increase (decrease) in provisions 87 (20) 164 (117)
Other items (218) 220 (379) (105)
Net cash provided by
operating activities 305 300 1,018 466
Cash flows from investing
activities:
Proceeds from the sale of securities 722 - 1,272 -
Net capital expenditures (829) (449) (1,884) (1,072)
Proceeds (purchase) other
non-current financial assets (6) (40) (34) (57)
Proceeds from sale of business/
(purchase of business) (1,008) (1,559) 1,523 (2,181)
Net cash provided by (used for)
investing activities (1,121) (2,048) 877 (3,310)
Cash flows before financing
activities (816) (1,748) 1,895 (2,844)
* For a number of reasons, principally the effects of translation differences
and consolidation changes, certain items in the statements of cash flows do
not correspond to the differences between the balance sheet amounts for the
respective items.
Statements of cash flows (continued)
in millions of euros (EUR) unless otherwise stated
Consolidated statements of cash flows (continued)*
3rd quarter January to September
2000 1999 2000 1999
Cash flows before financing
activities (816) (1,748) 1,895 (2,844)
Cash flows from financing activities:
Increase (decrease) in debt (42) (127) (77) (549)
Effect of other financial
transactions - 43 - 234
Treasury stock transactions (39) (121) (539) (60)
Capital repayment to shareholders (1,673) - (1,673) (1,490)
Dividends paid - - (399) (361)
Net cash used for financing
activities (1,754) (205) (2,688) (2,226)
Cash used for continuing
operations (2,570) (1,953) (793) (5,070)
Effect of changes in exchange rates
and consolidations on cash positions 192 23 257 235
Cash and cash equivalents at
beginning of the period 4,173 3,648 2,331 6,553
Cash and cash equivalents at end
of period 1,795 1,718 1,795 1,718
* For a number of reasons, principally the effects of translation differences
and consolidation changes, certain items in the statements of cash flows do
not correspond to the differences between the balance sheet amounts for the
respective items.
Product sectors
in millions of euros (EUR) unless otherwise stated
Segment revenues and income from operations
3rd quarter
2000 1999
segment Ebitda income as % of segment Ebitda income as % of
revenues (loss) from segment revenues (loss) from segment
operations revenues operations revenues
Lighting 1,230 174 125 10.2 1,118 175 131 11.7
Consumer Electronics* 3,684 172 95 2.6 3,094 134 72 2.3
DAP 493 82 62 12.6 428 79 63 14.7
Components 1,628 386 281 17.3 1,397 113 28 2.0
Semiconductors 1,819 590 373 20.5 1,173 307 154 13.1
Medical Systems 739 81 35 4.7 589 52 33 5.6
Origin 340 13 (6) (1.8) 432 42 17 3.9
Miscellaneous 467 33 7 1.5 384 (3) (37) (9.6)
Unallocated (10) (27) (98) (109)
TOTAL 10,400 1,521 945 8,615 801 352
Intersegment revenues (1,029) (871)
Sales 9,371 7,744
Income from operations
as a % of sales 10.1 4.5
* of which:
Mainstream CE 2,275 86 41 1.8 1,958 58 27 1.4
Consumer
Communications 532 18 0 - 470 (2) (13) (2.8)
Digital Networks 205 (22) (23) (11.2) 170 (20) (22) (12.9)
Specialty Products 533 18 5 0.9 493 35 16 3.2
Licenses 84 72 72 85.7 73 63 64 87.7
Intrasegment revenues 55** - - - (70) - - -
Consumer Electronics 3,684 172 95 2.6 3,094 134 72 2.3
** Includes reclassification of EUR 90 million relating to January-June 2000.
Product sectors (continued)
in millions of euros (EUR) unless otherwise stated
SEGMENT REVENUES AND INCOME FROM OPERATIONS
January to September
2000 1999
segment Ebitda income as % of segment Ebitda income as % of
revenues (loss) from segment revenues (loss) from segment
operations revenues operations revenues
Lighting 3,684 633 492 13.4 3,333 572 447 13.4
Consumer Electronics* 10,314 518 298 2.9 8,720 314 135 1.5
DAP 1,346 217 162 12.0 1,158 178 131 11.3
Components 4,768 789 508 10.7 3,802 480 203 5.3
Semiconductors 4,879 1,506 938 19.2 3,156 857 447 14.2
Medical Systems 2,002 187 99 4.9 1,681 127 69 4.1
Origin 1,164 63 (9) (0.8) 1,297 148 82 6.3
Miscellaneous 1,363 (4) (84) (6.2) 1,224 46 (38) (3.1)
Unallocated (16) (72) (226) (256)
TOTAL 29,520 3,893 2,332 24,371 2,496 1,220
Intersegment revenues (2,665) (2,492)
Sales 26,855 21,879
Income from operations
as a % of sales 8.7 5.6
* of which:
Mainstream CE 6,267 170 46 0.7 5,524 149 55 1.0
Consumer
Communications 1,555 77 34 2.2 1,278 (43) (71) (5.6)
Digital Networks 574 (69) (73) (12.7) 496 (65) (71) (14.3)
Specialty Products 1,703 77 28 1.6 1,424 86 35 2.5
Licenses 309 263 263 85.1 213 187 187 87.8
Intrasegment revenues (94) - - - (215) - - -
Consumer Electronics 10,314 518 298 2.9 8,720 314 135 1.5
Product sectors and main countries
in millions of euros (EUR) unless otherwise stated
Sales and total assets
Sales (to third parties) total assets**
January to September 2000 2000 1999 1999
% growth Sept. 30, Dec. 31, Sept. 30,
amount nominal comparable*
Lighting 3,651 11 2 3,096 2,849 2,750
Consumer Electronics 10,194 19 11 5,651 4,683 4,882
DAP 1,329 17 9 892 777 840
Components 3,462 30 20 5,906 5,179 4,960
Semiconductors 4,192 61 34 8,231 5,188 4,777
Medical Systems 2,000 19 4 3,606 1,840 1,811
Origin 717 (12) (12) 692 683 662
Miscellaneous 1,310 18 15 1,442 1,545 1,381
Unallocated 6,809 6,752 5,732
TOTAL 26,855 23 12 36,325 29,496 27,795
Sales and fixed assets
Sales (to third parties) (in) tangible fixed assets
January to September 2000 2000 1999 1999
% growth Sept. 30, Dec. 31, Sept. 30,
amount nominal comparable*
Netherlands 1,267 6 7 1,889 1,811 1,782
United States 6,359 19 0 4,618 2,476 2,382
Germany 2,384 26 26 624 632 622
France 1,570 19 17 450 392 405
United Kingdom 1,506 7 (1) 330 321 316
China (incl. Hong Kong) 1,923 37 20 775 635 596
Other countries 11,846 27 18 4,203 3,887 3,765
TOTAL 26,855 23 12 12,889 10,154 9,868
* Adjusted for the effects of changes in consolidations and exchange rate
movements
** Includes bookvalue of unconsolidated companies and intangible assets
Geographic areas
in millions of euros (EUR) unless otherwise stated
Segment revenues and income from operations
3rd quarter
2000 1999
segment Ebitda income as % of segment Ebitda income as % of
revenues (loss) from segment revenues (loss) from segment
operations revenues operations revenues
Netherlands 3,903 506 398 10.2 3,103 227 133 4.3
Europe excl. Netherlands 4,793 279 140 2.9 3,957 205 80 2.0
USA and Canada 3,055 213 38 1.2 2,524 114 (4) (0.2)
Latin America 531 31 10 1.9 435 25 11 2.5
Africa 49 2 1 2.0 24 1 0 -
Asia 3,903 499 368 9.4 2,837 229 132 4.7
Australia and New
Zealand 118 (9) (10) (8.5) 96 0 0 -
Total 16,352 1,521 945 12,976 801 352
Intersegment revenues (6,981) (5,232)
Sales 9,371 7,744
Income from operations
as a % of sales 10.1 4.5
January to September
2000 1999
segment Ebitda income as % of segment Ebitda income as % of
revenues (loss) from segment revenues (loss) from segment
operations revenues operations revenues
Netherlands 11,402 1,274 945 8.3 8,841 787 491 5.6
Europe excl. Netherlands 14,177 986 581 4.1 11,477 711 348 3.0
USA and Canada 8,199 496 82 1.0 6,592 343 49 0.7
Latin America 1,419 92 43 3.0 1,136 35 (6) (0.5)
Africa 114 4 2 1.8 75 3 1 1.3
Asia 10,652 1,061 701 6.6 7,841 615 337 4.3
Australia and New
Zealand 309 (20) (22) (7.1) 311 2 0 -
Total 46,272 3,893 2,332 36,273 2,496 1,220
Intersegment revenues (19,417) (14,394)
Sales 26,855 21,879
Income from operations
as a % of sales 8.7 5.6
Philips quarterly statistics
in millions of euros (EUR) unless otherwise stated;
percentage increases always in relation to the corresponding
period of previous year
1999 2000
1st quarter 2nd quarter 3rd quarter 4th quarter 1st quarter 2nd quarter 3rd quarter 4th quarter
Sales 6,837 7,298 7,744 9,580 8,329 9,155 9,371
% increase (3) (2) 6 11 22 25 21
Ebitda 915 780 801 1,059 1,147 1,225 1,521
as % of sales 13.4 10.7 10.3 11.1 13.8 13.4 16.2
% increase 23 (8) 29 193 25 57 90
Income from operations (Ebit) 549 319 352 531 663 724 945
as % of sales 8.0 4.4 4.5 5.5 8.0 7.9 10.1
% increase 47 (32) 52 . 21 127 168
Income from continuing
operations 469 274 374 687 1,140 3,604 2,066
% increase 46 (28) 154 . 143 1,215 452
per common share (in EUR)
(after stock split) 0.32 0.20 0.28 0.51 0.86 2.71 1.58
Net income 469 271 372 687 1,140 3,604 2,066
% increase (34) (42) 93 (85) 143 1,230 455
per common share (in EUR)
(after stock split) 0.32 0.20 0.28 0.51 0.86 2.71 1.58
January- January- January- January- January- January- January- January-
March June September December March June September December
Sales 6,837 14,135 21,879 31,459 8,329 17,484 26,855
% increase (3) (3) 0 3 22 24 23
Ebitda 915 1,695 2,496 3,555 1,147 2,372 3,893
as % of sales 13.4 12.0 11.4 11.3 13.8 13.6 14.5
% increase 23 7 13 38 25 40 56
Income from operations (Ebit) 549 868 1,220 1,751 663 1,387 2,332
as % of sales 8.0 6.1 5.6 5.6 8.0 7.9 8.7
% increase 47 3 14 156 21 60 91
as a % of net operating capital
(RONA) 24.1 18.3 16.4 17.5 25.1 25.3 27.4
Income from continuing
operations 469 743 1,117 1,804 1,140 4,744 6,810
as a % of stockholders' equity
(ROE) 17.7 12.6 11.7 12.6 31.2 62.1 56.5
per common share (in EUR)
(after stock split) 0.32 0.52 0.80 1.31 0.86 3.57 5.15
Net income 469 740 1,112 1,799 1,140 4,744 6,810
% increase (34) (37) (19) (70) 143 541 512
per common share (in EUR)
(after stock split) 0.32 0.52 0.80 1.31 0.86 3.57 5.15
Period ending 1999 Period ending 2000
Inventories as % of sales 15.6 16.4 16.6 14.5 14.5 14.7 15.8
Average collection period of trade
receivables in months' sales 1.6 1.6 1.6 1.4 1.6 1.6 1.6
Net debt : group equity ratio * * 10:90 6:94 4:96 * 8:92
Total employees (in thousands) 229 228 231 227 229 232 239
* Not meaningful: net cash exceeded the debt level.
Information also available on Internet, address: http://www.investor.philips.com
Printed in the Netherlands
