Debt structure
The debt of Royal Philips consists of bonds (USD and EUR), forward contracts, leases (finance and operating) and bank borrowings. Next to that, Philips has a EUR 1 billion committed revolving credit facility which will expire in March 2029. The facility can be used for general group purposes, such as a backstop of its Commercial Paper Program. The Commercial Paper Program amounts to USD 2.5 billion, under which Philips can issue commercial paper up to 364 days in tenor, both in the US and in Europe, in any major freely convertible currency. As per end of Q1 2025, there is no commercial paper outstanding under the program.
The total net debt of Philips per March 31, 2025 is EUR 6.4 billion. The long-term debt has maturities up to 2042 and an average tenor of 6.2 years.
Debt maturity profile as per March 31, 2025
1. Excluding long-term operating leases 2. Short-term debt includes local credit facilities that are being rolled forward on a continuous basis 3. Includes forward transactions for LTI purposes
Net debt: Group equity
(in billions of EUR unless otherwise stated)
The Net debt: Group equity ratio provides insight in the financial strength of Philips. This measure is used by Philips management and investment analysts to evaluate financial strength and funding requirements.
Contact Investor Relations
Durga Doraisamy Head of Investor Relations
Dorin Danu Investor Relations Director
Shav Sharipov Investor Relations Director
Rashiq Muhaimen Investor Relations Manager - ESG
Monique van der Heiden Corporate Access Manager
