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July 6, 2018

Philips provides update on European Commission investigation

Amsterdam, the NetherlandsRoyal Philips (NYSE: PHG, AEX: PHIA) today provided an update on the European Commission’s investigation into the online price setting for consumer electronics products and small domestic appliances in the period November 2011 to November 2013. 

 

In connection with the anticipated conclusion of the EC investigation in the second half of 2018, Philips will recognize a provision of EUR 30 million, which will be reported in the company’s 2018 second quarter results [1].

 

Since the start of the EC investigation in late 2013, which Philips reported in its Annual Reports, the company has fully cooperated with the EC. Philips initiated an internal investigation and addressed the matter in 2014. 

 

[1] Approx. EUR 18 million of the provision will impact EBITA of the Personal Health segment. This amount will not impact Adjusted EBITA of the Personal Health segment. The remaining approx. EUR 12 million of the provision will be reported in Discontinued Operations. Adjusted EBITA is defined as income from operations excluding amortization of acquired intangible assets, impairment of goodwill and other intangible assets, restructuring charges, acquisition-related costs and other significant items

About Royal Philips

Royal Philips (NYSE: PHG, AEX: PHIA) is a leading health technology company focused on improving people's health and enabling better outcomes across the health continuum from healthy living and prevention, to diagnosis, treatment and home care. Philips leverages advanced technology and deep clinical and consumer insights to deliver integrated solutions. Headquartered in the Netherlands, the company is a leader in diagnostic imaging, image-guided therapy, patient monitoring and health informatics, as well as in consumer health and home care. Philips generated 2017 sales of EUR 17.8 billion and employs approximately 74,000 employees with sales and services in more than 100 countries. News about Philips can be found at www.philips.com/newscenter.

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Forward-looking statements

This release 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. Examples of forward-looking statements include statements made about the strategy, estimates of sales growth, future EBITA, future developments in Philips’ organic business and the completion of acquisitions and divestments. By their nature, these statements involve risk and uncertainty because they relate to future events and circumstances and there are many factors that could cause actual results and developments to differ materially from those expressed or implied by these statements.

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Contacts

Steve Klink

Steve Klink

Philips Group Press Office

Tel: +31 6 10888824

Ksenija Gonciarenko

Ksenija Gonciarenko

Philips Investor Relations

Tel: +31 20 59 77055

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