SHERIDAN, WYOMING – July 25, 2025 – Royal Philips (NYSE: PHG, AEX: PHIA) has confirmed the exchange ratio for its 2024 dividend, announcing a share-based conversion rate of one new common share for every 23.6353 existing shares. The ratio was determined based on the volume-weighted average price of Philips shares traded on Euronext Amsterdam across May 30, June 2, and June 3, 2025, which stood at EUR 20.0600.
The final exchange ratio ensures that the gross value of the dividend in shares equates to approximately EUR 0.85, aligning with the company’s stated dividend target. As a result of this share-based payout, Philips will issue 22,980,748 new common shares.
Strategic Shareholder Participation and Dividend Structure
Philips shareholders were given the choice to receive their dividend in either newly issued shares or cash, with the latter option subject to a cap of 50% of the total payout, as approved in the most recent General Meeting of Shareholders.
According to the company, the cash election result reached 41.4%, which falls within the permitted threshold. This outcome allows shareholders to receive their dividends in accordance with their selected preference.
“Delivery of the new common shares, along with cash payment and settlement of fractional entitlements where applicable, will commence from June 6, 2025,” the company confirmed. Following the completion of the dividend distribution, Philips’ total issued share capital will increase to EUR 192,584,026, representing a total of 962,920,132 common shares.
Financial and Market Implications
The issuance of nearly 23 million new shares reflects Philips’ balanced capital return strategy and its commitment to long-term shareholder value. By allowing investors to choose between cash or equity-based dividends, the company offers flexibility while maintaining capital discipline.
Key highlights from the announcement include:
- Dividend exchange ratio: 1 new share for every 23.6353 existing shares
- Average share price basis: EUR 20.0600 (3-day VWAP on Euronext Amsterdam)
- Total new shares issued: 22,980,748
- Cash election result: 41.4%
- Payment and settlement start date: June 6, 2025
- New total share capital: EUR 192.6 million (962.9 million shares)
Market Context and Shareholder Value
This dividend approach aligns with broader European trends toward flexible dividend schemes, where shareholders increasingly favor scrip dividends for their potential compounding effect and tax efficiency. For Philips, the transaction also underscores investor confidence in the long-term value proposition of its stock.
The continued application of a share-based dividend policy supports Philips’ efforts to preserve liquidity and reinvest in strategic initiatives, including innovation in health technology and digital health transformation.
Learn more at www.philips.com/investor.