Philips Lighting’s third quarter results 2016


    Philips Lighting reports sales at €1.7 billion, continued profitability increase led by gross margin improvement; solid cash flow

    October 20, 2016

    Third quarter 2016 highlights

    • Comparable sales of -3.3% to €1,745 million 
    • Total LED-based sales growth of 16%, now representing 56% of total sales
    • Continued year-on-year improvement in operational profitability
         - adjusted EBITA of €175 million (Q3 2015: €139 million
         - adjusted EBITA margin of 10.0% (Q3 2015: 7.5%) 
    • Net income of €51 million, including €30 million charges for brand license, separation costs and financial expenses not applicable in 2015 
    • Free cash flow of €164 million (Q3 2015: €80 million) particularly driven by improved profitability and working capital management


    Eric Rondolat, CEO:

    “Our operational profitability and free cash flow improved significantly in the third quarter, in line with our improvement path, despite softer sales. We will continue to implement sales improvement measures and introduce innovative propositions to strengthen our underlying growth profile. Our total LED-based sales grew by 16% in the quarter and now represent 56% of our revenues. Moreover our systems and services businesses saw healthy double-digit growth, driven by our continued extension of lighting into the Internet of Things.”

    Conference call and audio webcast

    Eric Rondolat (CEO), Stéphane Rougeot (CFO) and René van Schooten (member of the Board of Management and Business Group Leader of Lamps) will host a conference call for analysts at 10:00 a.m. CEST to discuss third quarter results.

    For further information, please contact:

    Philips Lighting Investor Relations

    Jeroen Leenaers

    Tel: +31 6 2542 5909



    Philips Lighting Communications

    Elco van Groningen

    Tel: +31 6 1086 5519


    About Philips Lighting

    Philips Lighting (Euronext Amsterdam ticker: LIGHT), a global leader in lighting products, systems and services, delivers innovations that unlock business value, providing rich user experiences that help improve lives. Serving professional and consumer markets, we lead the industry in leveraging the Internet of Things to transform homes, buildings and urban spaces. With 2015 sales of EUR 7.5 billion, we have approximately 34,000 employees in over 70 countries. News from Philips Lighting is located at

    Important Information

    Forward-Looking Statements and Risks & Uncertainties 

    This document and the related oral presentation contain, and responses to questions following the presentation may contain, forward-looking statements that reflect the intentions, beliefs or current expectations and projections of Philips Lighting N.V. (the “Company”, and together with its subsidiaries, the “Group”), including statements regarding strategy, estimates of sales growth and future operational results. 


    By their nature, these statements involve risks and uncertainties facing the Company and its Group Companies and a number of important factors could cause actual results or outcomes to differ materially from those expressed in any forward-looking statement as a result of risks and uncertainties. Such risks, uncertainties and other important factors include but are not limited to: adverse economic and political developments, the impacts of rapid technological change, competition in the general lighting market, development of lighting systems and services, successful implementation of business transformation programs, impact of acquisitions and other transactions, impact of the Group’s operation as a separate publicly listed company, pension liabilities and costs, establishment of corporate and brand identity, adverse tax consequences from the separation from Royal Philips and exposure to international tax laws. Please see “Risk Factors” in the Group’s prospectus, dated 16 May 2016 (the “Prospectus”) for discussion of material risks, uncertainties and other important factors which may have a material adverse effect on the business, results of operations, financial condition and prospects of the Group. Such risks, uncertainties and other important factors should be read in conjunction with the information included in the Company’s semi-annual report for the first six months ended 30 June 2016. 


    Additional risks currently not known to the Group or that the Group has not considered material as of the date of this document could also prove to be important and may have a material adverse effect on the business, results of operations, financial condition and prospects of the Group or could cause the forward-looking events discussed in this document not to occur. The Group undertakes no duty to and will not necessarily update any of the forward-looking statements in light of new information or future events, except to the extent required by applicable law.


    Market and Industry Information

    All references to market share, market data, industry statistics and industry forecasts in this document consist of estimates compiled by industry professionals, competitors, organizations or analysts, of publicly available information or of the Group’s own assessment of its sales and markets. Rankings are based on sales unless otherwise stated.


    Non-IFRS Financial Measures

    Certain parts of this document contain non-IFRS financial measures and ratios, such as comparable sales growth, adjusted gross margin, EBITA, adjusted EBITA, EBITDA, adjusted EBITDA and free cash flow, and other related ratios, which are not recognized measures of financial performance or liquidity under IFRS. The non-IFRS financial measures presented are measures used by management to monitor the underlying performance of the Group’s business and operations and, accordingly, they have not been audited or reviewed. Not all companies calculate non-IFRS financial measures in the same manner or on a consistent basis and these measures and ratios may not be comparable to measures used by other companies under the same or similar names. A reconciliation of these non-IFRS financial measures to the most directly comparable IFRS financial measures is contained in this document. For further information on non-IFRS financial measures, see “Operating and Financial Review—Non-IFRS Financial Measures” in the Prospectus.



    All amounts are in millions of euros unless otherwise stated. All reported data is unaudited. Unless otherwise indicated, financial information has been prepared in accordance with the accounting policies as stated in the Combined Financial Statements for the year ended 31 December 2015 included in the Prospectus.


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