Building the leading company in

health and well-being

An introduction to Philips
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Philips: A strong diversified industrial group leading
in health and well-being
Philips
Businesses
1, 2
Geographies
1
Healthcare Consumer
Lifestyle
Lighting North
America
Other Mature
Geographies
31% 9% 35%
Growth
Geographies
3
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)
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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 peoples lives through meaningful innovation
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Lives improved by Philips in 2012: 1.7 billion
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H
e
a
l
t
h
c
a
r
e
L
i
g
h
t
i
n
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
C
o
n
s
u
m
e
r

L
i
f
e
s
t
y
l
e
Ageing population leading
Increase in patients managing chronic conditions
Growth geographies
1
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 geographies
1
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
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Healthcare
Philips Healthcare
Businesses
1
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
Geographies
1
North
America
Other Mature
Geographies
44% 13% 24%
Growth
Geographies
2
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)
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Customized imaging solutions systems
for the Farah Medical Complex in the Middle East
15 new healthcare products and features
introduced at RSNA
Healthcare
Imaging Systems
Customer Service
Patient Care and
Clinical Informatics
Home Healthcare Solutions
Driving better outcomes in care:
2012 Total Sales EUR 10 billion
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Consumer Lifestyle
Philips Consumer Lifestyle
Businesses
1, 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
Geographies
1
North
America
Other Mature
Geographies
18% 5% 46%
Growth
Geographies
3
Western
Europe
31%
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Consumer Lifestyle
Number of launches of region-specific innovations
in kitchen appliances quadrupled since 2010
Red dot Design Award Best of the Best for
DiamondClean electric toothbrush
Domestic Appliances
Personal Care
Health & Wellness
Lifestyle Entertainment
Other incl. Licenses
Making life healthier:
2012 Total Sales EUR 6 billion
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Lighting
What we do. Where we are.
Philips Lighting
Businesses
1
Light
Sources &
Electronics
Professional
Lighting
Solutions
Lumileds Automotive
52% 29% 4% 10%
Geographies
1
North
America
Other Mature
Geographies
25% 5% 41%
Growth
Geographies
2
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)
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Light Sources & Electronics
Professional Lighting
Solutions
Consumer Luminaires
Automotive
Lumileds
Lighting
Philips hue, LED home lighting system,
enables controlling and personalizing light with a
smart device
Unique LED lighting for Empire State Building,
superior light and vibrancy levels in real-time
LED enabling new digital applications:
2012 Total Sales EUR 8.4 billion
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Sustainability as a driver for growth
12
Accelerating sustainable business
Green Product sales reaching close to half of
total sales in 2012 increased to 45%
Carbon reduction target achieved with 25%
decrease in operational CO
2
emissions over
five years
By 2015 Philips aims to invest EUR 2 billion
in Green Innovation
EcoVision targets for 2010 2015
Improving peoples lives: 2 billion a year
(3 billion lives by 2025)
Improving the energy efficiency of Philips
overall portfolio by 50%
Doubling the global collection and recycling
amounts of our products, as well as double
the amount of recycled materials in our
products
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Creating meaningful innovations
Improving lives in new ways
13
Gain deep insights into peoples
needs and aspirations
by following a process requiring
end-user input at every stage
Transform insights into innovations
by combining the diverse perspectives of
different disciplines
Learn fast, fail cheap
by applying a rigorous process to assess value
potential early
Lead in open innovation
by working closely together with partners in a
spirit of open innovation
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Customer intimacy and speed
Essentials for successful innovation
14
Understanding local relevance and
customer insights
Increasing entrepreneurial power in
the markets
Innovating in regional hubs in both
mature and growth geographies
Partnering with (local) customers,
companies, universities,
governments
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We have strong leadership
1
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
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Saeco (2009)
Discus (2010)
Dynalite (2009)
Selecon (2009)
Ilti Luce (2009)
Genlyte (2008)
Lighting Technologies (2007)
Burton (2010)
NSW (2010)
Luceplan (2010)
InnerCool Therapies (2009)
Traxtal (2009)
Respironics (2008)
VMI-Sistemas Medico (2007)
Visicu (2008)
Emergin (2007)
Raytel (2007)
Tecso Informatica (2010)
Somnolyzer (2010)
CDP Medical Ltd. (2010)
Apex (2010)
Wheb Sistemas (2010)
Dixtal Biomedica e Technologia (2008)
Meditronics (2008)
Alpha X-Ray (2008)
Medel (2008)
Interactive Medical Developments (2008)
Lighting Consumer Lifestyle Healthcare
Optimum (2011)
MedSage (2011)
Preethi (2011)
Growth geographies
Our global reach
Focused portfolio through strategic acquisitions*
* Strategic acquisitions since mid-September 2007 until May 2012 (no new acquisitions thereafter).
Tomcat (2008)
Sectra (2011)
AllPartsMedical (2011)
Street Controls (2010)
Dameca (2011)
Povos(2011)
Shenzhen Goldway (2008)
Indal (2011)
Teletrol (2009)
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Healthcare Consumer Lifestyle Lighting Semiconductors
16%
22%
30%
19%
44%
37%
2008 2005
17%
43%
45%
27%
Ju
Healthcare
Lighting
Consumer Lifestyle
Semiconductor
Healthcare
Lighting
Consumer Lifestyle excl. TV,
and Lifestyle Entertainment
Healthcare
Lighting
Consumer Lifestyle
1
Consumer Lifestyle in 2005 includes the former DAP and Consumer Electronics divisions
2
2005 figures are based on US GAAP
3
Last twelve months March 2013 figures are restated to exclude Lifestyle Entertainment
2
Our portfolio has the right fundamentals for profitable growth
1
Mar '13
last twelve
months
3
Our portfolio now consists of ~70% B2B businesses
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Worlds 41
st
most valuable brand
2012 compared to the 65
th
in
2004. For the first time in history,
our brand value reached a level of
more than 9 billion USD
Strong assets underpin our portfolio
Innovation capabilities
Global footprint
People
Domain leadership
Solid balance sheet
Loyal customer base in 100+ countries
35% of group revenues from growth geographies
1
Employee Engagement Index
2
exceeds high performance benchmark
value of 70%
Culturally diverse top-200 leadership team
Global market leader in Lighting
Top 3 Healthcare player
Leading Consumer Lifestyle brands: E.g. Philips, Sonicare, Avent, Saeco
A3 rating by Moodys and A- by Standard & Poors
Technology, know-how and strong IP positions (59,000 registered
patents)
1
Growth geographies are all geographies excluding USA, Canada, Western Europe, Australia, New Zealand, South Korea, Japan and Israel
2
Based on annual Philips Employee Engagement Survey
Philips Brand
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Total group revenues in growth geographies 35%
New healthcare
development and
manufacturing site
opened in India
30% energy reduction
with LED for
San Sebastian
Cathedral in Brazil
10 million shavers
sold in less than
a year in China
100 Light centers
to be installed across
rural Africa
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Clear vision to make the world healthier and
more sustainable through innovation
Building upon a focused portfolio, with strong
potential in growth and mature markets
Driving investments and results in innovation
and markets to deliver improved profitable
growth
Delivered by 116,000 engaged employees
Looking ahead