Company Profile

Royal Philips
Royal Philips of the Netherlands is a diversified technology company, focused
on improving peoples lives through meaningful innovation in the areas of
Healthcare, Consumer Lifestyle and Lighting. Headquartered in the
Netherlands, Philips posted 2012 sales of EUR 24.8 billion and employs
approximately 114,000 employees with sales and services in more than 100
countries.
The company is a leader in cardiac care, acute care and home healthcare, energy efficient
lighting solutions and new lighting applications, as well as male shaving and grooming and oral
healthcare.
www.annualreport2012.philips.com

Healthcare
As a global leader in healthcare, we are guided by the understanding that
there is a patient at the center of everything we do. By pioneering new
solutions that improve and expand care around the world, we are dedicated to
creating the ideal experience for all patients, young and old.
We harness the power of clinical information by providing clinicians and
healthcare providers with real-time information all in one place across modalities, time zones
and technologies for more confident decision-making and efficient workflow.
We focus on delivering the most technologically advanced products and solutions, as we help
clinicians diagnose, treat and manage many of todays most prevalent diseases.
We expand access to care by promoting the adoption of new mobile and remote technologies
and developing new protocols that can lead to more efficient and productive health care
systems.
These commitments are the driving force behind our research and investment in promising new
approaches to radiology, cardiology, oncology, decision support, home health, respiratory and
other critical areas.
Our Healthcare business is organized around four strategic business groups: Imaging Systems,
Patient Care & Clinical Informatics, Home Healthcare Solutions, and Healthcare Transformation
Services.
Philips Healthcare employs approximately 37,500 people worldwide.

Consumer Lifestyle
At Consumer Lifestyle we are delivering on Philips vision to make the
world healthier and more sustainable through innovation. Our
investment in innovation and local business creation enables us to
deliver a stream of locally relevant, meaningful innovations. We have a
leading global brand, which is highly trusted across the world.

Philips Consumer Lifestyle focuses on delivering deeper experiences, in touch with the
social and emotional needs of our customers in their homes, tailoring solutions to
variable local needs around the world. From a cup of coffee in the morning, to a healthy
meal in the evening. And whether its using the best sonic technology to care for your
teeth or an innovative laser guided beard trimmer; Philips innovation matters to our users
and improves their lives every day.
We focus on the following areas of business: Health & Wellness, Personal Care, and
Domestic Appliances.
Philips Consumer Lifestyle employs approximately 16,300 people worldwide.

Lighting
Philips Lighting is a global market leader with recognized expertise in
the development, manufacturing and application of innovative lighting
solutions. We have pioneered many of the key breakthroughs in lighting
over the past 123 years, laying the basis for our current strength and
ensuring we are well-placed to be a leader in the digital transformation.
We aim to further strengthen our position in the digital market through added investment
in LED leadership while at the same time capitalizing on our broad portfolio, distribution
and brand in conventional lighting.
We address peoples lighting needs across a full range of market segments. Indoors, we
offer lighting solutions for homes, shops, offices, schools, hotels, factories and hospitals.
Outdoors, we offer solutions for roads (street lighting and car lights) and for public
spaces, residential areas and sports arenas. In addition, we address the desire for lightinspired experiences through architectural projects. Finally, we offer specific applications
of lighting in specialized areas, such as horticulture and water purification.
Philips Lighting spans the entire lighting value chain from light sources, luminaires,
electronics and controls to full applications and solutions through the following
businesses: Light Sources & Electronics, Consumer Luminaires, Professional Lighting
Solutions, Automotive Lighting, and Lumileds.
Philips Lighting employs approximately 47,900 people worldwide.

Innovation
Philips actively participates in Open Innovation through relationships with
academic and industrial partners, as well as via European and regional
projects, in order to improve innovation efficiency and share the related
financial exposure.
The High Tech Campus in Eindhoven (Netherlands), the Philips Innovation
Campus in Bangalore (India), and Research Shanghai (China), are prime examples of
environments enabling Open Innovation. In this way, we also seek to ensure proximity of
innovation activities to growth geographies.
In 2012, Philips invested EUR 1.810 billion in Research and Development.
Philips IP portfolio currently consists of around 59,000 patent rights, 35,000 trademarks, 81,000
design rights and 4,200 domain name registrations. Philips filed approximately 1,500 patents in
2012, with a strong focus on the growth areas in health and well-being.
Philips Design is widely recognized as a leader in people-centric design. In 2012, it won over
120 key design awards in the areas of product, communication and innovation design.

Sustainability
Sustainability is at the center of Philips strategy.
We invest in the developments of green technologies and enable our
consumers to contribute to a healthier world on a day to day basis by choosing
green products. We take actions to continuously reduce the environmental
impact of our operations and secure healthy ecosystems. Additionally, we are
committed to supporting healthy communities by investing our resources in programs that
address some of the worlds biggest social challenges.
All Philips products go through an EcoDesign process, identifying environmental impact in terms
of energy efficiency, hazardous substances, take-back and recycling, weight and lifetime
reliability. Philips processes on Green Product sales are verified annually by an independent
third party and published in the Annual Report.
Philips aims to combat global healthcare challenges by focusing on delivering better quality
healthcare at lower costs, also in the emerging markets, such as China and India.
Philips also takes a leading position in educational programs, showing its stakeholders that
energy efficient solutions are simple, easy and actionable and make economic sense for
national and local governments, businesses, schools and individuals.

Global Leadership Positions

Philips has strong leadership1 positions in many markets across the globe across its Healthcare,
Lighting and Consumer Lifestyle portfolio:
We are the worlds largest home healthcare company, being number one in: Monitoring systems,
Automated External Defibrillators, Cardiac Ultrasound, Cardiovascular X-ray.
In Healthcare, we have global leadership in: Cardiovascular X-ray, Patient Monitoring, Cardiac
Resuscitation, and Sleep Therapy Systems.
In Lighting, we are number one globally in: Lamps, LED lamps, Automotive Lighting, Professional
Luminaires, and High Power LEDs.
In Consumer Lifestyle, we are global leaders in: Male Electric Shaving, Garment Care and
Rechargeable Toothbrushes.
(1 Leadership positions are defined as having a Global #1 or #2 position in the market.)

Executive Officer
Frans van Houten
CEO of Royal Philips

Global Headquarters
Philips International B.V.
Amstelplein 2
1096 BC Amsterdam
The Netherlands

Stock Ticker
Royal Philips is a publicly listed company in New York stock exchange (NYSE: PHG) and
Euronext Amsterdam (AEX: PHI).