1. Building the leading company in
health and well-being
An introduction to Philips

2. A strong diversified industrial group leading in
health and well-being
Who we are Our businesses Our mission
Founded in 1891
Headquartered in Amsterdam,
“…a global company
The Netherlands of leading
25% 26% businesses creating
Sales of €22.3 billion in 20101
39% value with
%
Growth Markets 2010 meaningful
33% of sales generated in innovations that
growth geographies
24% improve people‟s
Globally recognized brand 35% health and well-
(world top 50) being.”
Our brand value doubled to
$8.7bn since 20042
Healthcare
120,000 employees
Lighting
Sales and service outlets in over
100 countries Consumer Lifestyle
€1.5 billion investment in R&D,
7% of sales
1Note 2
- All figures from the year 2010 onwards exclude Television as it is treated as discontinued operation Source: Interbrand

3. Healthcare
Philips Healthcare
Businesses1 Sales & services geographies1
Imaging Home Patient Care Customer North America International Growth
Systems Healthcare and Clinical Services Geographies
Solutions Informatics
38% 14% 22% 26% 45% 34% 21%
€8.6 37,000+ 8% 450+
Billion sales People employed of sales invested in R&D Products & services
in 2010 worldwide in 100 countries in 2010 offered in over 100 countries
1 Last twelve months September 2011

4. Consumer Lifestyle
Philips Consumer Lifestyle
Businesses1 2 Geographies1
Personal Health & Domestic Lifestyle Mature Growth
Care Wellness Appliances Entertainment Geographies Geographies
21% 12% 28% 33% 59% 41%
€5.8 16,000+ 5% 34%
Billion sales People employed of sales invested of green product
in 2010 worldwide in R&D in 2010 sales in 2010
1Last twelve months September 2011
2Other category (6%) is mainly license income and is omitted from this overview
Note - All figures exclude discontinued operations

5. Lighting
Philips Lighting
Customer Segments1
Homes Offices Outdoor Industry Retail Hospitality Entertainment Healthcare Automotive
23% 17% 15% 10% 15% 5% 3% 4% 8%
€7.6 54,000+ 5% 80,000+
Billion sales People employed of sales invested Products & services
in 2010 worldwide in 60 countries in R&D in 2010 offered in 2010
1 Indicative split

6. A strong position in growth geographies
Represents a significant and growing part of our global footprint
Growth geographies represent 33% of sales 1
Corporate brand equity index, 2010
Championing growth with BRIC Markets
dedicated strategies 2010 Position vs. Peers
Based on local market insights, supported by
increased marketing investments Top
Global 111 20%
Increasing our footprint
Top
• Domestic Appliances management is located in India 146 10%
Shanghai
• Imaging value segment management located in Top
Suzhou China 122 10%
• Patient Care and Clinical Informatics value segment
management located in Shenzhen Top
Russia 104
• LED Lighting competence center located in Shanghai 40%
• Manufacturing for value segment products located in
India Top
Brazil 114 10%
• Four healthcare companies acquired in Brazil
1 Source: Consumer Heart BEAT brand equity study 2010
43

7. Sustainability as a driver for growth
Accelerating sustainable business
• Green Product sales represented around 38%
of sales in 2010, up from 31% in 2009
• Investment of EUR 2 billion on Green
Innovation across three sectors by 2015
EcoVision5 targets for 2010 – 2015
• Bringing care to more than 500 million people
• 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
7

8. Creating meaningful innovations
Improving lives in new ways
Gain deep insights into people‟s
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
8

9. End-user input
at every stage of our innovation process
Insights on needs Multiple solutions Conclusions are validated Product creation process
and aspirations are are created by in-house with end-users and continues outside-in
gathered by Marketing, R&D, and customers, both globally thinking throughout,
listening, watching and Design teams who and locally. with experiential” and
engaging our end-users and collaborate, together with “simplicity” testing.
customers external specialists

10. Close customer relationships
Creating promoters of our brand
Customer loyalty
is fundamental to growth and profitability
We win the trust of customers and partners
• By understanding and anticipating their needs
• By sharing our insights
• By providing the right products and solutions
We monitor our effectiveness
with the Net Promoter Score based on a simple question:
“Would you recommend us to a friend or colleague?”
59%
Closer customer relationships in 2010
Maintained strong Net Promoter Score with 59% of our Co-leader
businesses holding industry leadership positions, 24%
Co-leader
up from 51% in 2008 29%
Leader
Leader 35%
22%
2008 2010
10

11. Unique leadership positions in many markets
Examples of current NPS leadership positions1
Healthcare
Global Global Regional Global Regional (USA)
Cardiovascular Patient Cardiac Ultrasound Home
X-ray Monitoring resuscitation Monitoring
Consumer
Lifestyle
Global Global Global Regional Regional
Male electric Mother and Child Oral (China) (LatAm, China)
shaving Care Healthcare Haircare Kitchen
Appliances
Lighting
Global Global Global Global Global
Professional Professional LED lamps Automotive Lighting Systems
Lamps Luminaires Lighting & Controls
1 Leadership is made up of outright leadership (outperforming the best competitor by >5%) and co-leadership (on par with best competitor, within 5%), globally or regionally

12. The world‟s 41st most valuable brand in 2011
Philips increased brand value by 29% in the last five years
Value of the Philips brand1 A strong brand drives sales
USD billions A significant amount of sales is attributable to
the brand alone:
• Healthcare 42%
• Consumer Lifestyle 42%
8.7 8.7
8.3 8.1 • Lighting 16%
7.7
6.7
5.9 Brand value remains stable in 2011
4.4
Moving up one rank in top 100 global brands list,
Philips has reached the highest position ever.
Brand value doubled since 2004
2004 2005 2006 2007 2008 2009 2010 2011
Strong internal brand2
82% of employees are “proud to work for Philips”
Brand campaign 2011
Developing thought leadership in health and
well-being and making our trusted brand promise
of „sense and simplicity‟ meaningful in this area
1 Source: Interbrand Brand Valuation 2011
2 Employee Engagement Survey 2010

13. Philips people
High engagement driving productivity
Employee Engagement Index Philips benefits from:
High performance benchmark
75
A strong leadership team
69
68
A highly engaged workforce
64
Productivity per employee
61
increased by 20% year on year
59
2005 2006 2007 2008 2009 2010
Philips at high performance norm
The 2010 „employee engagement index‟ polling over
90,000 of the Philips workforce showed we are amongst
the world‟s top-ranking companies

14. Our global reach
Focused portfolio through strategic acquisitions*
Tomcat (2008)
Sectra (2011)
Interactive Medical Developments (2008)
Genlyte (2008) Dameca (2011)
Traxtal (2009) MedSage (2011)
Street Controls (2010)
Povos(2011)
Burton (2010) Raytel (2007) Somnolyzer (2010)
Saeco (2009)
CDP Medical Ltd. (2010) Shenzhen Goldway (2008)
Teletrol (2009)
Lighting Technologies (2007)
Optimum (2011)
Discus (2010) NSW (2010)
Ilti Luce (2009)
Luceplan (2010)
InnerCool Therapies (2009) Medel (2008) Apex (2010)
Visicu (2008)
Alpha X-Ray (2008)
Respironics (2008) Meditronics (2008)
AllPartsMedical (2011) Dynalite (2009)
Wheb Sistemas (2010) Preethi (2011)
Emergin (2007) VMI-Sistemas Medico (2007) Selecon (2009)
Tecso Informatica (2010) Dixtal Biomedica e Technologia (2008)
Healthcare Lighting Consumer Lifestyle Growth geographies
* Strategic acquisitions since mid-September 2007 until January 2011

15. Improving our portfolio: Starting point of our journey
Portfolio now consists of ~65% B2B businesses
Healthcare Healthcare Healthcare
Lighting Lighting Lighting
Consumer Lifestyle Consumer Lifestyle Consumer Lifestyle excl. TV
Semiconductor
16%
22% 26%
30%
40%
2 43% Sept ‟11
2005 2008 last twelve
months 3
17%
45%
27% 34%
1
Healthcare Consumer Lifestyle Lighting Semiconductors
1 Consumer Lifestyle in 2005 includes the former DAP and Consumer Electronics divisions
2 2005 figures are based on US GAAP
3 Figures exclude Television as it is treated as discontinued operation

16. Our market opportunities are numerous
Global trends and challenges Examples market positions
Ageing population leading
#1 cardiovascular X-ray
Healthcare
Increase in patients managing chronic
conditions #1 home healthcare
Growth geographies wealth creating demand #1 patient monitoring
Lifestyle changes, fueling cardiovascular Close #3 imaging
illnesses and respiratory and sleeping disorders
Consumer Lifestyle
#1 male electric shaving &
Consumers focus on the health and well-being grooming
Rising middle class in growth geographies #1 garment care
Back to basics: simple propositions, trusted #1 food preparation
brands
#2 oral healthcare
Ongoing urbanization and globalization #1 lamps
Increasing need for energy efficient solutions #1 luminaires
Lighting
Fast growing global illumination market #1 automotive
Expanding renovation market #2 high power LEDs
Rapid adoption of LED-based lighting solutions #1 in overall LED illumination
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17. Strong assets gives us the right to play
Our assets Our track record
• New product sales increased from 48% of total sales „09 to 52% „10
Innovation capabilities • Technology, know-how and strong IP positions (54,000 registered
patents)
• World‟s 41st most valuable brand 2011 compared to the 65th 2004
Philips brand • Consistently among top-ranked players, top 10% in India, China and
Brazil, top 20% globally in the Corporate brand equity index1
Global footprint • Loyal customer base in 100+ countries
• 1/3 of group revenues from growth geographies
• Employee Engagement Index2 exceeds high performance benchmark
People value of 70%
• Culturally diverse top-200 leadership team
• Global market leader in Lighting
Domain leadership • Top 3 Healthcare player
• Leading Consumer Lifestyle brands: E.g. Philips, Sonicare, Avent, Saeco
Solid balance sheet • A3 rating by Moody‟s and A- by Standard & Poor‟s
1 Consumer
2
Heart BEAT brand equity study 2010
Based on annual Philips‟ Employee Engagement Survey
31

18. Looking ahead
• Building on legacy of 120 years Philips
• A focused portfolio, with strong potential in
growth and mature markets
• Driving investments and results in innovation,
people, systems, and markets to deliver
improved profitable growth
• Responding to fast-changing market conditions

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