Investments in equity-accounted investees

Detailed information on the aforementioned individual line items is provided below.

Philips’ influence on LG Display’s operating and financial policies including representation on the LG Display board was reduced in February 2008. Consequently, the investment in LG Display (at that date 19.9%) was transferred from Investments in equity-accounted investees to Other non-current financial assets, as Philips was no longer able to exercise significant influence.

In 2007, Philips sold 46,400,000 shares of LG Display’s common stock, resulting in a gain of EUR 654 million. As a result of the sale, Philips’ shareholding in LG Display was reduced from 32.9% to 19.9%.

In 2009, the TPV Technology Ltd. impairment charge of 2008 was reversed (EUR 55 million) based on the 2009 stock price.

In 2008, the category ‘Others’ included an impairment charge related to our 12.4% interest in TPV Technology Ltd. (TPV). Philips performed impairment reviews on the book value of the investment in TPV in 2008 resulting in an impairment charge of EUR 59 million. The impairment reviews in 2008 were triggered by the deteriorating economic environment of the flat panel industry, the weakening financial performance of TPV and the stock price performance of TPV. The valuation as per December 31, 2008 was based on the stock price of TPV as of that date on the Hong Kong Stock Exchange.

In 2007, the voluntary support of social plans for employees impacted by the bankruptcy of certain activities of LG.Philips Displays (formerly a leading CRT manufacturer) amounted to EUR 22 million.

Investments in equity-accounted investees

The changes during 2009 are as follows:

The EUR 43 million reported on Transfer to other non-current financial assets relates to our interest in Prime Technology Ventures III (Prime) and various other smaller equity interests. As Philips is no longer able to exercise significant influence with respect to these entities, the book value was transferred to Other non-current financial assets effective January 1, 2009.

The two major equity-accounted investees are TPV (12.4%, carrying value EUR 119 million) and InterTrust Technologies Corporation (49.5%, carrying value EUR 50 million). The remainder of the portfolio exists of equity interests which individually have carrying values below EUR 50 million.

The Company owns TPV bonds which have convertible rights.

The investments in equity-accounted investees are mainly included in the Group Management & Services sector.

Summarized information of investments in equity-accounted investees

Summarized financial information on the Company’s investments in equity-accounted investees, on a combined basis, is presented below: