Philips is a well-established, global company with over 100 years of history. It has over 116,000 employees worldwide and annual sales of over EUR 25 billion. Sustainability is a core part of Philips' strategy and vision, with goals to improve the health and well-being of 500 million people while improving energy efficiency and increasing recycling and use of recycled materials in its products by 2015. Philips communicates its sustainability efforts through its annual report, websites and marketing of green products, which are characterized by reduced environmental impact across their lifecycle. The company has received external recognition for its sustainability performance.

1. Speaking Sustainability
Credible, Effective Communication
Massachusetts Technology Leadership Council
Kristine Kalaijian
December 6, 2011

2. A Well-respected, Blue-chip
Company for Over 100 Years
Founded in 1891
Headquartered in Amsterdam, the Netherlands
Sales over EUR 25 billion
30% in emerging economies
116,000 employees
Sales and service outlets in over 100 countries
Globally recognized brand (world top 50)
Our brand value almost doubled to $8.1bn since 2004
€1.6 billion investment in R&D, 7% of sales
55,000 patent rights – 33,000 registered trademarks –
49,000 design rights
Kristine Kalaijian , Philips North America, December 6, 2011

3. Our Health and Well-being Offer
Powered by Three Sectors
Healthcare Consumer Lifestyle Lighting
Kristine Kalaijian , Philips North America, December 6, 2011 3

4. Sustainability
In Our DNA
• Strong Organizational Foundation
• Aligned with Health and Well-being Profile
• Part of Vision 2015 and Annual Management Agenda
• Powered by Global Trends – Societal and Climate Change
• EcoVision Targets/Key Sustainability Performance Indicators
• EcoDesign and Green Product Development
• EHS Governance
• Stakeholder Engagement
– Suppliers
– NGO’s
– External Recognition
• Employee Volunteerism
Kristine Kalaijian , Philips North America, December 6, 2011 4

5. Speaking Sustainability
Communications and Actions
• Annual Report – one section devoted to sustainability
– Internal Environmental Reporting
• Internal and External Websites
• Supplier Accountability
• Green Product Marketing
– Eco Passports
• Social Investment Projects
– Woodstove
– Cairo to Cape Town Tour
– Solar Lighting Products
Kristine Kalaijian , Philips North America, December 6, 2011 5

6. Speaking Sustainability
Communications and Actions (continued)
• Philips News Network (PNN) – Simplicity Rewards
• 2011 Sustainability Quiz
• Community Outreach – Company Sponsored Volunteer
Programs
– Philips Cares
– SimplyHealthy@Schools
Kristine Kalaijian , Philips North America, December 6, 2011 6

7. Health and Well-being Company
Powered by Global Trends
Rapid population growth and consumer
demands in growing economies
Climate change with dramatic consequences
to our planet
Increase in chronic disease in both
developed and developing countries
Rising healthcare costs
Scarcity of materials and lack of collection
and recycling legislation in certain areas
of the world
Kristine Kalaijian , Philips North America, December 6, 2011 7

8. Clarifying Sustainability
Balancing Human development and Earth’s bio-capacity
Ecological footprint
Human
Development
Index*
*HDI = life expectancy + education level + purchasing power (see back-up slide)
Source: WWF Living Planet Report 2006 Kristine Kalaijian , Philips North America, December 6, 2011 8

9. Sustainability means to us …
… to improve people’s health & well-being
while respecting the limits of natural resources
Ecological footprint
DOWN
Strategic Focus:
UP Sustainable Health
& Well-Being space
Health and Well-being
Kristine Kalaijian , Philips North America, December 6, 2011 9

10. EcoVision Goals for 2015
Underlie our Strategic Focus and Commitment
• Philips will bring care to more than 500 million Ecological footprint
1
people
2 • Philips will improve the energy efficiency of its 2
overall portfolio by 50% 3
3 • Philips will double the global collection and
DOWN
recycling amounts of our products, as well as
double the amount of recycled materials in our
products
Strategic Focus:
Sustainable Health
1 UP & Well-Being space
Human Development Index
1 Lead by Healthcare 3 Lead by Consumer Lifestyle
2 Lead byKalaijian , Philips North America, December 6, 2011
Kristine Lighting 10

11. Green Products
Characterized by Philips Green Focal Areas
Life cycle approach to determine a product’s overall environmental
improvement
One or more of our Green Focal Areas must be
• Significantly better (at least 10%) than the reference product*
• Resulting in a lower total environmental impact
* Reference product: Philips predecessor or closest commercial competitors
Kristine Kalaijian , Philips North America, December 6, 2011 11

12. Externally Recognized
Super Sector Leader Category
Personal and Household Goods Best score for Supplier Sustainability
2011/2012 out of five multinational finalists
Eight year in a row, included in 20
most Sustainable Stocks
Significant advancement in LED
lighting by US Department of Energy
Best score for Carbon Disclosure
Leadership Index and the Carbon
Performance Leadership Index 2011
Environment Excellence Award for Global Top 10 of Newsweek “Most Responsible Company Award’
Philips Lighting Pakistan 2011 ranking of greenest for Philips China
Kristine Kalaijian , Philips North America, December 6, 2011 12

13. Kristine Kalaijian , Philips North America, December 6, 2011 13