Improving people’s lives through

meaningful innovation

An introduction to Philips and a deep dive into the

Lifestyle Entertainment business

Welcome! Here’s the program for today

Topic Elements Who Time

Introduction • Introducing Philips Jirko 09:00-09:15

Business

transformation

– CL

• Accelerate! program as enabler of the Consumer

Lifestyle sector’s strategy

Jirko 09:15-09:30

Business

overview

• Introducing Philips Lifestyle Entertainment Mark 09:30-09:40

Innovation • Innovation in audio Hugh 09:40-10:10

Innovation • Pricing for profitable and sustainable growth Wieger 10:10-10:40

Break 10:40-11:00

Engagement • Driving consumer engagement for our LE portfolio Frank 11:00-11:30

Shopper

marketing

• From insight to activation Andres 11:30-12:00

• Jirko Hoogerwerf – Business transformation leader Philips Consumer Lifestyle

• Mark Groves – Head of PR and Internal Communications, Philips Lifestyle Entertainment

• Hugh Cautley – Director Business Planning and Strategy, Philips Lifestyle Entertainment

• Wieger Deknatel – Senior Director, ICM, Philips Lifestyle Entertainment

• Frank Pynenburg – Director, Global Campaign, Philips Lifestyle Entertainment

• Andres van der Linden – Senior Manager, Shopper Marketing, Philips Lifestyle

Entertainment

Philips: Improving people’s lives through meaningful

innovation

Philips

Businesses1, 2 Geographies1

Healthcare Consumer

Lifestyle

Lighting North

America

Other Mature

Geographies

31% 9% 35%

Growth

Geographies3

44%

€23.5 Billion

Sales in 2012.

Portfolio consists of

~70% B2B

businesses

~116,000 People employed

worldwide in over 100

countries

19% 37%

Since 1891 Headquarters in

Amsterdam, the

Netherlands

8% of sales invested

in R&D in 2012

59,000 patent rights,

35,000 trademark rights,

81,000 design rights

Western

Europe

25%

$9.1Billion

Brand value in 2012

1 Last twelve months March 2013 2 Excluding Central sector (IG&S) 3 Growth geographies are all geographies excluding USA, Canada, Western Europe, Australia, New Zealand, South Korea, Japan and Israel

Note - Prior-period financials revised for discontinued operations, the adoption of IAS19R,and for restatements included in the Annual Report 2012 (please refer to the Annual Report

section 12.10 “Significant Accounting Policies”)

At Philips we strive to make the world healthier and

more sustainable through innovation

We will be the best

place to work for people

who share our passion

Together we will deliver

superior value for our

customers and shareholders

Improving people’s lives through meaningful innovation

Lives improved by Philips in 2012: 1.7 billion

Hea

lth

ca

re

Lig

htin

g

Ongoing urbanization and globalization

Increasing need for energy efficient solutions

Fast growing global illumination market

Expanding renovation market

Rapid adoption of LED-based lighting solutions

We are well positioned to benefit from societal trends

Con

su

mer

Life

sty

le

Ageing population leading

Increase in patients managing chronic conditions

Growth geographies1 wealth creating demand

Lifestyle changes, fueling cardiovascular illnesses and respiratory and sleeping disorders

Consumers focus on the health and well-being

Rising middle class in growth geographies1

Back to basics: simple propositions

Trusted brands combined with locally relevant portfolio

Global trends and challenges

1 Growth geographies are all geographies excluding USA, Canada, Western Europe, Australia, New Zealand, South Korea, Japan and Israel

Healthcare What we do. Where we are.

Philips Healthcare

Businesses1

Imaging

Systems

Home

Healthcare

Solutions

Patient Care

and Clinical

Informatics

Customer

Services

38%

€10.0 Billion sales

in 2012

37,000+ People employed

worldwide in 100 countries

15% 22% 25%

450+ Products & services

offered in over 100 countries

8% of sales invested in R&D

in 2012

Geographies1

North

America

Other Mature

Geographies

44% 13% 24%

Growth

Geographies2

Western

Europe

19%

1 Last twelve months March 2013 2 Growth geographies are all geographies excluding USA, Canada, Western Europe, Australia, New Zealand, South Korea, Japan and Israel

Note - Prior-period financials revised for discontinued operations, the adoption of IAS19R,and for restatements included in the Annual Report 2012 (please refer to the Annual Report

section 12.10 “Significant Accounting Policies”)

Lighting What we do. Where we are.

Philips Lighting

Businesses1

Light

Sources &

Electronics

Professional

Lighting

Solutions

Lumileds Automotive

52% 29% 4% 10%

Geographies1

North

America

Other Mature

Geographies

25% 5% 41%

Growth

Geographies2

Western

Europe

29%

€8.4 Billion sales

in 2012

49,000+ People employed

worldwide in 60 countries

5% of sales invested

in R&D in 2012

80,000+ Products & services

offered in 2012

Consumer

Luminaires

5%

1 Last twelve months March 2013 2 Growth geographies are all geographies excluding USA, Canada, Western Europe, Australia, New Zealand, South Korea, Japan and Israel

Note - Prior-period financials revised for discontinued operations, the adoption of IAS19R,and for restatements included in the Annual Report 2012 (please refer to the Annual Report

section 12.10 “Significant Accounting Policies”)

Consumer Lifestyle What we do. Where we are.

Philips Consumer Lifestyle

Businesses1, 2

Personal

Care

Health &

Wellness

Domestic

Appliances

Lifestyle

Entertainment

€6.0 Billion sales

in 2012

18,000+ People employed

worldwide

5% of sales invested

in R&D in 2012

1 Full year 2012 2 Other category (2%) is omitted from this overview 3 Growth geographies are all geographies excluding USA, Canada, Western Europe, Australia, New Zealand, South Korea, Japan and Israel

Note - All figures exclude discontinued operations

24% 15% 33% 26%

32% of green product

sales in 2012

Geographies1

North

America

Other Mature

Geographies

18% 5% 46%

Growth

Geographies3

Western

Europe

31%

We have strong leadership1 positions in many

markets across the globe

Global

Cardiovascular

X-ray

Global

Ultrasound

Global

Patient

Monitoring

Global

Image-Guided

interventions

Global

Lamps

Global

Male Electric

Shaving

Healthcare

Lighting

Consumer

Lifestyle

Global

Sleep Therapy

Systems

Global

Garment Care

Global

Rechargeable

Toothbrushes

Regional

Kitchen

Appliances

Regional

Electric Hair

Care

Global

LED Lamps

Global

Automotive

Lighting

Global

Professional

Luminaires

Global

High Power LEDs

Global

Cardiovascular

X-ray

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

Accelerate! is delivering results

Source: Philips Capital Market Day March 2013

Our Capabilities, Assets and Positions Unique strengths which create differential value

Source: Philips Capital Market Day March 2013

1

2

Introducing Philips Lifestyle

Entertainment

Mark Groves, Head of PR and Internal

Communications, Philips Lifestyle Entertainment

A century of innovation

1920s 1960s 1970s 1980s 1990s 2000s Now

1927:

Radio

receiver

for enjoyment

of live

broadcasts,

news and

music at the

comfort of

home

1963:

Compact

cassette and

recorder

for playing

recorded music

at home

1978:

Laserdisc

player

to provide

superior

quality video

at home

1982:

Audio CD

for better sound

quality,

increased

storage capacity

and faster

indexing

Headphones for

noise

cancellation

created

2004:

Ambisound

for truly

immersive

sound at home

2007:

FullSound for

enriched MP3

music on the go

2008: Blu-ray

kicks off HD

video for the

next millennium

1995: DVD

1999: SACD

to enhance

sound and video

quality, with six

times higher

storage capacity

than CD

2010: 60Sound,

SoundSphere &

SoundCurve

raising the bar for

sound quality

2012 Fidelio

Docking: unlock

music from your

smart phone

2013 Fidelio

SoundSphere

and Surround

on Demand

Lifestyle Entertainment: a strong product portfolio

powering a strong brand

Philips Consumer Lifestyle

Businesses

Personal

Care

Health &

Wellness

Domestic

Appliances

Lifestyle

Entertainment

Geographies

North

America

Other Mature

Geographies

Growth

Geographies3

Western

Europe

Video Audio Home Cinema Multimedia Home

Communication

Accessories Headphones

We are reshaping the Consumer Lifestyle portfolio Ensuring continuity and success of Philips brand in television,

sound and connected entertainment& Video

•Global scale

•Expertise in

manufacturing

•Electronics

ecosystem

•Strong Brand

•Award winning

innovation

•Market leadership

•Regional scale

•Expertise in

manufacturing

•Electronics

ecosystem

TP Vision operational since April 2012.

Funai agreement is expected to close in second half of 2013.

Leading innovation with Philips Fidelio Surround

on Demand

Philips Fidelio SoundSphere DesignLine speakers

• Design breakthrough

complements Philips

DesignLine TV

• Floating tweeter prevents

interference with woofer

• Designed to recreate the

“acoustic holy grail” of a point

source, allowing sound to

radiate freely without

interference

• Available: Fall

Setting design trends in home communication

• Fidelio M1 Colors: Premium

quality, high-def sound.

• Fidelio S2 in-ear: Finely,

engineered, Layered Motion

Control Drivers

• CitiScape Denim: Combines

sound quality, urban fashion

• ActionFit: First ‘sports

headband,’ designed for

active use

Philips headphones

Increasing opportunities in home

control and productivity, including:

• WeCall: Portable conference

speaker

• In.Sight: Camera monitors, baby

monitors

• InRange: Keeps track of

valuables belongings

Philips App-enabled accessories

WeCall

InRange

In.Sight