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Delivering innovation thatmatters to you

Month, Year

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Our company

1. Facts & figures2. Responding to global challenges3. Creating the future in:

HealthTech and Lighting solutions4. How we innovate for you5. The Philips Brand6. Our approach to sustainability7. Our transformation journey8. Examples of our meaningful innovation

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1. Facts and figures

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a year by 2025

We’re aiming to improve the lives of

three billion people

We strive to make the world healthier and more sustainable through innovation

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Philips, a born innovator

Founded in 1891, in Eindhoven, The Netherlands, to manufacture incandescent lamps and other electrical products.

For 124 years, we have been improving people’s lives with a steady flow of ground-breaking innovations.

Philips’ founding fathers: Frederik, Gerard and Anton Philips

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Royal Philips

44%Healthcare

33%Lighting

23%Consumer Lifestyle

Est. 1891Headquarters inAmsterdam, Netherlands

108,000+Employees worldwide in 100+ countries

€ 21.4 billionSales in 2014Portfolio 70% B2B∽

$10.3 billionBrand value in 2014

* Based on sales last 12 months March 2015 Note - Prior-period financials have been restated for the treatment of the combined businesses of Automotive and Lumileds as discontinued operations.

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Present in more than +100 countriesPhilips’ revenue across geographies

Growthgeographies

North America

Western Europe

Other mature geographies

35% 31% 26% 8%

1 Based on sales last 12 months March 2015 2 Growth geographies are all geographies excluding USA, Canada, Western Europe, Australia, New Zealand, South Korea, Japan and Israel

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Present in more than +100 countriesPhilips’ seven largest markets

North America

€6,2billion

1 Seven largest markets by sales in 2014.

China

€2,4billion

Germany

€1,4billion

France

€839million

UK

€722million

Netherlands

€594million

Japan

€908million

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Present in more than +100 countriesPhilips has 60 R&D sites and manufacturing in all continents

North AmericaEmployees: 22.989

R&D centers: 20Manufacturing sites: 32

EMEAEmployees: 34,417

R&D centers: 28Manufacturing sites: 28Latin America

Employees: 7.910R&D centers: 2

Manufacturing sites: 6

AsiaEmployees: 40.049

R&D centers: 10Manufacturing sites: 21

1 Source: Philips Annual Report 2014.

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2. Responding to global challenges

With our understanding of many of the longer-term challenges our world faces, we see major opportunities to apply our innovative competencies and create valuefor our stakeholders.

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We see a growing need for healthcare

The world’s population aged 60 and older

2000 2050

11% 22%

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We see increased focus on personal well-being

Only 62% of people around the globe rate their current state of health and well-being as “good” or “very good”

Well-being of people around the world

62%

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We see rising demand for energy-efficientsolutions

Lighting

The world’s electricity consumption

Average saving we can make by switching to energy efficient LED lighting

40%

19%

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3. Creating the future in:HealthTech andLighting solutions

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Focused on the EUR 60+ billion Lighting solutions opportunity

Focused on the EUR 100+ billion HealthTech opportunity

Lighting solutions

Philips Lighting

HealthTech

Royal Philips

Separating Philips into two strong companies

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Making the difference in HealthTech

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• Aging population with more chronic and lifestyle related diseases puts a focus on healthcare cost containment

• Fast population growth requires improved access to care• Digital technology offers new opportunities for more outcome based health

management• In the age of the quantified self, consumers are more actively engaged in their

health and health is an engine for today’s economy

A new world dynamic…requires a new approach

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We deliver innovative solutions across the health continuum, empowering people to live life to their fullest potential

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We take an holistic view across the health continuum and offer an integrated approach

Support people to live a healthy life in a healthy home environment.

Enable people to manage their own health.

Ensure diagnosis is first time right with personalized predictive care pathways.

Enable more effective therapies, faster recovery and better outcomes

Support recovery and

chronic care at home.

Improve population health outcomes and efficiency through integrated care, real-time analytics and value-added services.

Healthy living Prevention Diagnosis Treatment Home care

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Making a difference across the health continuum

1,000,000 patients monitored in their

homes every day

18 petabytes of imaging study data managed for healthcare providers

250 million appliancessold each year making homes healthier

Hundreds of thousands of people tracking their health with ActiveLink®

Last year 6.5 millionpeople improved their oral health with our oral healthcare products

101million lives improved globally through access to diagnostic X-Ray

275 million patientstracked with our patient monitors in 2014

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Healthy living Prevention Diagnosis Treatment Home care

Strong base across the health continuum

Domestic Appliances

Personal care

Healthcare Informatics, Solutions & Services

Patient Care & Monitoring Solutions

Sleep & Respiratory Care

Image GuidedTherapy

Diagnostic Imaging

Ultrasound

Health & Wellness

Personal Health Solutions

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We hold unique leadership positions globally

1 Global or Regional #1 or #2 position in the market

Cardiovascular X-ray

Rechargeable toothbrushes

Mother and child care

Male electric shaving

Image-guided interventions

Patientmonitoring

Kitchen appliances

Sleep and respiratory care

Ultrasound

Air purification

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Making a difference in lighting solutions

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• more light – 70% increase in light points by 2050 due to population growth and increasing urbanization

• more energy-efficient light – Lighting accounts for 19% of global electricity use• more digital light – 224 million smart homes by 2019

…and we are changing the game

A changing worlds needs…

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We take light beyond illumination. Today, our ongoing innovation is transforming lighting in the digital age.

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Our unique edge in delivering lighting solutions

Reducing electricity bills and redefining the space we live in

Home

Empowering a sustainable environment

Government

Creating brighter safer streets, reducing costs and carbon footprint

Cities

Helping businesses to reduce energy, work differently and provide new experiences

Offices

Improving efficiency and safety and reducing maintenance costs

Industry

Enhancing the experience for fans with flexible lighting

Stadiums

Helping retailers drive sales and build customer loyalty

Retail

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5% of sales in R&D,

32% more thanthe nearest competitor

55% of world's top footballs stadiums use Philips Lighting

LargestHue

262 Philips CityTouch street

lighting implementations in 31 countries

#1 inconnected lighting**

* Source: Internal analysis** Source: Markets and Markets, Global smart

lighting market (2013–18)

Making a difference in lighting

In LED lighting*

60 countries

Presence in sold in 30 countries, used in 150,

with more than 300 third party apps

lighting company in the world

#1

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Light Sources Luminaires Connected Lighting Systems & Services

Market leader in energy efficient connected LED lighting solutions

Well positioned to exploit market expanding from products to systems and services

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We hold unique leadership positions globally

1 Global or Regional #1 or #2 position in the market

LED Lamps Connected lighting Professional Luminaires

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Creating the future in HealthTech and Lighting solutions

• Two independent companies with lean management structures

• Empowered to boost growth

• More value for customers, employees and shareholders

• Philips’ brand at the heart of both companies

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4. Innovating for you

We bring together our R&D, and design expertise andour local business-creation capabilities to addresspeople’s needs.

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We manage a dynamic portfolio of businesses and turn possibilities into great innovations

+40 71.000 7%of sales

businesses patents in R&D

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We actively participate in Open Innovation through relationships with academic and industrial partners.

We are a technology solutions partner of choice to:

• major hospitals looking to increase effectiveness along the health continuum

• major cities looking to increase livability, safety and energy efficiency

We innovate with our partners

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This year marks 90 years since the inception of design at Philips.

Since 1925 Philips design has evolved into being a key strategic partner for the business, improving people’s lives through meaningful innovation.

Philips has consistently won more than 100 key design awards each year.

We are a world leader in people-centric design

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5. The Philips brand

Our trusted brand is present in over 100 countries – providing us with unique insights into local challenges and customers’ needs.

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The Philips brand – a vital asset

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Philips delivers innovations that matters to you

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In 2014, Philips became the most valuable Dutch brand in history, worth over $10bn

10.3USD billion

Brand value Growth

Source: Interbrand Best Global Brands 2014 ranking

+5%vs. last year

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6. Our approach to sustainability

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Making the world healthier and more sustainable

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In 2014, we improved the lives of 1.9 billion people.

Our Lives Improved model guides our efforts and measures our progress on improving people’s lives.

We calculate the number of Lives Improved based on the quantity of Green, Care and Well-being products sold multiplied by the average lifetime of these products

Today, we are improving the lives of every 4th person on earth!

We aim to improve the lives of 3 billion lives by 2025

Note: Numbers in billions

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We continue to improve our sustainability performance

1 Based on sustainability performance in Annual Report 2014

80%of our industrial waste is recycled waste in 20141

Green InnovationR&D in 2014

€463 Million1

14th positionin Interbrand Global Green Brands 2014

52% Green Productsin 2014 (% as part of total sales)1

13,000 tonnesrecycled materials used in products 1

1.9 billion Lives improved in 2014 1

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For a sustainable world, we see the transition from a linear to a circular economy a business necessity for now and the future.

A circular economy aims to decouple economic growth from the use of natural resources and ecosystems by using those resources more effectively.

We work on recycling, improving product recyclability, refurbishment and new business models.

We are unlocking value through circular economy principles

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Focus areas• Disaster relief• Community engagement• Social entrepreneurship

Strategic innovation partnerships • Red Cross (led by ICRC &

The Netherlands Red Cross)• UNICEF

The Philips Foundation empowers and provides relieve to communities

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7. Our transformation journey

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Accelerate! is all about delivering meaningful innovation to our customers in local markets - and doing so faster and better than the competition.

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Our transformation

Accelerate! change and performance improvement program is making Philips a more agile and entrepreneurial innovator.

resource our business/ market combinations to win

create lean end-to-end customer

value chains

implement a simpler, standardized operating model

drive a growth and performance culture

make us more customer focused

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The Philips Business System is the way we run our company to deliver on our mission and vision. It is designed to ensure that success is repeatable, i.e. that we create value for our stakeholders time after time.

• Active portfolio management • Improving customer centricity • Relentless focus on operational

excellence• Building our growth and

performance culture

Ensuring success is repeatable

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Philips delivers innovation that matters to you

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