Amsterdam, the Netherlands – Royal 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
