v3.25.4
Details of treasury and other financial risks (Tables)
 12 Months Ended
Dec. 31, 2025
Details of treasury and other financial risks [Abstract]  
Contractual cash obligation The accompanying table presents a summary of the Group’s fixed contractual cash obligations and
commitments as of December 31, 2025. These amounts are an estimate of future payments which could
change as a result of various factors such as a change in interest rates, foreign exchange, and contractual
provisions, as well as changes in business strategy and needs. Therefore, the actual payments made in future
periods may vary from those presented.
Philips Group
Contractual cash obligations 1 2 in millions of EUR
2025
Payments due by period
Total
Less than 1 year
1-3 years
3-5 years
After 5 years
Long-term debt
7,086
1,630
1,806
3,650
Short-term debt
1,174
1,174
Interest on debt
1,765
216
402
361
786
Derivative liabilities
36
35
1
-
-
Purchase obligations ³
1,189
293
390
306
200
Trade and other payables
1,927
1,927
Contractual cash
obligations
13,177
3,645
2,423
2,473
4,636
Philips Group
Contractual cash obligations 1 2 in millions of EUR
2024
Payments due by period
Total
Less than 1 year
1-3 years
3-5 years
After 5 years
Long-term debt
7,168
2,006
1,338
3,824
Short-term debt
525
525
Interest on debt
1,792
197
368
325
902
Derivative liabilities
72
64
8
-
-
Purchase obligations ³
1,161
300
307
210
344
Trade and other payables
1,830
1,830
Contractual cash
obligations
12,548
2,916
2,689
1,873
5,070
1Amounts in this table are undiscounted
2This table excludes post-employment benefit plan contribution commitments, contingent consideration and income tax
liabilities in respect of tax risks because it is not possible to make a reasonably reliable estimate of the actual period of cash
settlement.
3Purchase obligations are agreements to purchase goods or services that are enforceable and legally binding for the Group. They
specify all significant terms, including fixed or minimum quantities to be purchased, fixed, minimum or variable price provisions
and the approximate timing of the transaction. They do not include open purchase orders or other commitments which do not
specify all significant terms.
Carrying amount of financial liabilities Philips Group
Carrying amount of financial liabilities 1 in millions of EUR
2025
2024
Presented in accounts payables:
117
97
- of which suppliers have received payment from finance provider
99
85
Philips Group
Range of payment due dates
2025
2024
Liabilities that are part of the arrangements
60-135 days
30-135 days
Comparable trade payables that are not part of the arrangements
0-140 days
0-135 days
1There were no material business combinations or foreign exchange differences during the year.
Estimated transaction exposure and related hedges The accompanying table outlines the estimated nominal value in millions of EUR for committed and
anticipated transaction exposure and related hedges for Philips’ most significant currency exposures
consolidated as of December 31, 2025.
Philips Group
Estimated transaction exposure and related hedges in millions of EUR
Sales/Receivables
Purchases/Payable
Exposure
Hedges
Exposure
Hedges
Balance as of December 31, 2025
Exposure currency
USD
1,814
(1,526)
(1,127)
1,023
JPY
600
(354)
(6)
6
GBP
259
(173)
(10)
10
CNY
304
(267)
(177)
177
PLN
53
(32)
(2)
2
CAD
260
(159)
AUD
160
(98)
CHF
154
(105)
(1)
1
KRW
143
(85)
ILS
5
(3)
(206)
128
EUR
187
(186)
(178)
178
Others
165
(112)
(70)
37
Total 2025
4,104
(3,100)
(1,777)
1,562
Total 2024
4,420
(3,188)
(1,743)
1,543
Estimated impact of 10% increase of value of the EUR on the fair value of hedges The accompanying table contains an overview of the instantaneous 10% increase in the value of
EUR against major currencies.
Philips Group
Estimated impact of 10% increase of value of the EUR on the fair value of hedges in millions of EUR
2025
2024
USD
59
63
JPY
19
13
GBP
10
13
CHF
10
7
Impact of the hedged item and hedging instruments The impact of the hedged item (included in long-term debt) and the hedging instruments (included in other
non-current liabilities) on the consolidated balance sheet is:
Philips Group
Carrying amount and fair value adjustments of fair value hedge relationships in millions of EUR
2025
Carrying amount/ Notional
amount
Accumulated fair value
adjustments/Carrying amount
Change in fair value used for
measuring ineffectiveness for
the period
Fixed-rate long-term debt
(245)
4
4
Interest rate swaps
250
(4)
(4)
Interest rate sensitivity The following table provides the impact of a 1% increase/decrease of interest rates on the fair value of the
debt and the annualized net interest expenses.
Philips Group
Interest rate sensitivity in millions of EUR
2025
2024
Impact 1% interest rate increase on annualized net interest expense ¹
27
23
1The impact is based on the outstanding net floating-rate position as of December 31, 2025.
Credit risk with number of counterparties The accompanying table shows the number of financial institutions with credit rating A- and above with
which Philips has cash at hand and short-term deposits above EUR 10 million as of December 31, 2025.
Philips Group
Credit risk with number of counterparties for deposits above EUR 10 million
10-100 million
100-500 million
500 million and above
AAA rated bank counterparties
2
AA- rated bank counterparties
1
1
A+ rated bank counterparties
2
3
A rated bank counterparties
2
2
A- rated bank counterparties
2
Total
5
10