EX-7 3 d330553dex7.htm EX-7

Exhibits 16.5

16.5 Exhibit 7

Ratio of earnings to fixed charges

Philips Group

Unaudited calculation of ratio of earnings to fixed charges in millions of EUR unless otherwise stated

2012 - 2016

|  | 2012 |  |  | 2013 |  |  | 2014 |  |  | 2015 |  |  | 2016 |
Income (loss) before taxes |  |  | 263 |  |  |  | 1,525 |  |  |  | 185 |  |  |  | 623 |  |  |  | 1,389 |
Fixed charges |  |  | 401 |  |  |  | 366 |  |  |  | 338 |  |  |  | 391 |  |  |  | 431 |
Dividend received from associates |  |  | 15 |  |  |  | 6 |  |  |  | 41 |  |  |  | 17 |  |  |  | 48 |
Total earnings |  |  | 679 |  |  |  | 1,897 |  |  |  | 564 |  |  |  | 1,031 |  |  |  | 1,868 |
Interest paid to third-party on loans and borrowings |  |  | 271 |  |  |  | 245 |  |  |  | 224 |  |  |  | 271 |  |  |  | 303 |
Costs related to indebtedness |  |  | 12 |  |  |  | 9 |  |  |  | 9 |  |  |  | 14 |  |  |  | 21 | 1)
Interest included in capital lease payments |  |  | 7 |  |  |  | 7 |  |  |  | 7 |  |  |  | 7 |  |  |  | 7 |
One third of rental expense (being that portion of rental expense representative of the interest factor) |  |  | 111 |  |  |  | 105 |  |  |  | 98 |  |  |  | 100 |  |  |  | 101 |
Total fixed charges |  |  | 401 |  |  |  | 366 |  |  |  | 338 |  |  |  | 392 |  |  |  | 431 |
Ratio of earnings to fixed charges |  |  | 1.7 |  |  |  | 5.2 |  |  |  | 1.7 |  |  |  | 2.6 |  |  |  | 4.3 |

1) | the cost related to indebtedness has been adjusted for the early redemption of USD bonds for EUR 153 million. If it had not been adjusted, the ratio would have been 3.5.

Annual Report 2016 271