Consolidated statements of income

Auditor's report

Consolidated statements of income (including earnings per share) of the Philips Group for the years ended December 31 Download XLS
	2008	2009	2010

Sales	26,385	23,189	25,419
Cost of sales	(17,938)	(15,110)	(15,873)

Gross margin	8,447	8,079	9,546

Selling expenses	(5,518)	(5,159)	(5,246)
General and administrative expenses	(972)	(734)	(735)
Research and development expenses	(1,777)	(1,631)	(1,576)
Impairment of goodwill	(301)	−	−
Other business income	261	97	100
Other business expenses	(86)	(38)	(24)

Income from operations	54	614	2,065

Financial income	1,594	225	214
Financial expenses	(1,506)	(391)	(336)

Income before taxes	142	448	1,943

Income tax expense	(256)	(100)	(509)

Income (loss) after taxes	(114)	348	1,434

Results relating to investments in associates:
- Company’s participation in income	81	23	14
- Other results	(62)	53	4

Income (loss) from continuing operations	(95)	424	1,452

Discontinued operations - net of income tax	3	−	−

Net income (loss)	(92)	424	1,452

Attribution of net income (loss)
Net income (loss) attributable to shareholders	(91)	410	1,446
Net income (loss) attributable to non-controlling interests	(1)	14	6

The accompanying notes are an integral part of these consolidated financial statements

Earnings per share Download XLS
		2008		2009		2010

Weighted average number of common shares outstanding (after deduction of treasury shares) during the year		991,420,017		925,481,395		939,861,226
Plus incremental shares from assumed conversions of:
Options and restricted share rights	5,191,635		3,555,559		7,548,916
Convertible debentures	102,249		−		314,874
Dilutive potential common shares		5,293,884		3,555,559		7,863,790
Adjusted weighted average number of shares (after deduction of treasury shares) during the year		996,713,901		929,036,954		947,725,016

Basic earnings per common share in euros
Net income (loss)		(0.09)		0.46		1.54
Net income (loss) attributable to shareholders		(0.09)		0.44		1.54

Diluted earnings per common share in euros¹⁾
Net income (loss)		(0.09)²⁾		0.46		1.53
Net income (loss) attributable to shareholders		(0.09)²⁾		0.44		1.53

Dividend distributed per common share in euros		0.70		0.70		0.70

¹⁾	In 2010, 2009 and 2008, respectively 36 million, 52 million and 48 million securities that could potentially dilute basic EPS were not included in the computation of dilutive EPS because the effect would have been antidilutive for the periods presented
²⁾	In 2008, the incremental shares from assumed conversion are not taken into account as the effect would be antidilutive