Philips, Kon.

Information Regarding Optional Dividend



Koninklijke Philips N.V. announced that the Annual General Meeting of Shareholders (AGM) has approved the payment of a distribution of EUR 0.80 per common share.

The distribution will be payable in cash or shares, at the option of the shareholder, against the net income for 2016 and retained earnings of the company. The company will calculate the number of share dividend rights entitled to one new common share, such that the gross dividend in shares will be approximately equal to the gross dividend in cash. Dividend in cash is in principle subject to 15% Dutch dividend withholding tax, which will be deducted from the dividend in cash paid to the shareholders. Dividend in shares paid out of net income and retained earnings is in principle subject to 15% dividend withholding tax, but only in respect of the par value of the shares (which value amounts to EUR 0.20 per share).

You are given the opportunity as of May 17, 2017 until the close of Euronext Amsterdam on Friday, June 9, 2017 (03.00 P.M. CET) to indicate your choice between cash and shares. If no choice is made during this election period the dividend will be paid in cash. On Tuesday, June 14, 2017, the number of share dividend rights of the common shares entitling to one new share (“exchange ratio”), as well as the dividend withholding tax being withheld over the nominal value per new share, will be announced on June 13, 2017. This exchange ratio will be based on the volume weighted average price of all traded common shares Koninklijke Philips N.V. at Euronext Amsterdam on June 7, 8 and 9, 2017. The newly issued common shares rank for dividend for the financial year 2016 and following financial years. Dividend rights will not be traded on Euronext Amsterdam.

The following timetable applies:
May 12, 2017: Ex-dividend quotation New York Stock Exchange
May 15, 2017: Ex-dividend quotation Euronext Amsterdam
May 16, 2017: Dividend record date Euronext & NYSE shares
May 17 - June 9, 2017 (03.00 P.M. CET): Election period: cash or share dividend
June 13, 2017: Announcement exchange ratio & number of shares to be issued
From June 14, 2017: Dividend payment in cash & delivery of new common shares

You are requested to indicate your choice within the determined period, through your bank or stockbroker to ABN AMRO Bank N.V. (ABN AMRO), Corporate Broking (HQ7050), Antwoordnummer 46340, 1060 VD Amsterdam, the Netherlands. If you hold your shares in a custody account with a bank or stockbroker, then the bank or stockbroker in question generally reports the dividend in shares, unless you choose differently.

Payment of the dividend on the common shares and delivery of new common shares, with settlement of fractions in cash, if required, will take place from June 14, 2017 onwards on the basis of the delivered dividend rights. The distribution of dividend in cash to holders of New York registry shares will be made in USD  at the USD/EUR rate as per WM/ Reuters FX Benchmark 2 PM CET fixing of June 12, 2017.

Holders of ordinary shares in the form of K-shares (K-stukken) who wish to collect their dividend after June 14, 2017, will receive the value of such dividend in cash.

The shares will be listed ex-dividend as of May 12, 2017 and May 15, 2017 at the New York Stock Exchange and Euronext Amsterdam, respectively. In compliance with the listing requirements of the New York Stock Exchange and the stock market of Euronext Amsterdam, the dividend record date will be May 16, 2017. Due to the different ex-dividend dates and resulting stock prices, it will not be possible to convert New York Registry Shares into Ordinary Shares and vice versa during the period May 12, 2017 up to and including May 15, 2017. The dividend will be made available to you via the bank or stockbroker where your shares are administered at the close of trading on May 16, 2017. The new common shares to be issued as stock dividend will be admitted to trading without prospectus pursuant to article 5:4 sub e of the Financial Markets Supervision Act (Wet op het financieel toezicht). For the fractions price, the opening price of June 14, 2017 should be taken as reference.

Registered share
Holders of registered shares, included in the register of holders of common shares will be notified separately of the final dividend to which they are entitled.

Amsterdam, May 11, 2017 

Message details

Sub-group Equities
Issuer Philips, Kon.
Category Dividend
ISIN NL0000009538
Symbol PHIA
Securities name Ordinary shares
Publication date May 15 2017