Debt structure

The debt of Royal Philips consists of bonds (USD and EUR), forward contracts, leases (finance and operating) and bank borrowings. Next to that, Philips has a EUR 1 billion committed revolving credit facility which will expire in March 2029. The facility can be used for general group purposes, such as a backstop of its Commercial Paper Program.

The Commercial Paper Program amounts to USD 2.5 billion, under which Philips can issue commercial paper up to 364 days in tenor, both in the US and in Europe, in any major freely convertible currency. As per end of Q2 2024, there is no commercial paper outstanding under the program.

The total net debt of Philips per June 30, 2024 is EUR 6.5 billion. The long-term debt has maturities up to 2042 and an average tenor of 6.5 years. The graph below shows the debt maturity profile, per end of June 2024:

Debt maturity profile as per June 30, 2024

(in billions of EUR unless otherwise stated)

1. Excluding long-term operating leases 2. Short-term debt includes local credit facilities that are being rolled forward on a continuous basis 3. Includes forward transactions for LTI purposes 

The Net debt: Group equity ratio provides insight in the financial strength of Philips. This measure is used by Philips management and investment analysts to evaluate financial strength and funding requirements.