Philips is a global company focused on health and well-being that was founded in 1891. It has over 120,000 employees worldwide and generates 32% of its sales in growth markets. Philips has leading market positions in healthcare, lighting, and consumer lifestyle. It invests heavily in R&D, branding, and sustainability to drive growth through meaningful innovations that improve people's lives.

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 “… a global company of leading businesses creating value with meaningful innovations that improve people’s health and well-being .” Founded in 1891 Headquartered in Amsterdam, Netherlands Sales of €22.3 billion in 2010 1 Growth Markets 32% of 2010 sales generated in growth markets Globally recognized brand (world top 50) Our brand value doubled to $8.7bn since 2004 2 120,000 employees Sales and service outlets in over 100 countries € 1.5 billion investment in R&D, 7% of sales Who we are Our businesses Our mission 2010 Healthcare Lighting Consumer Lifestyle 2 Source: Interbrand 1 Note - All figures from the year 2010 onwards exclude Television as it is treated as discontinued operation

3. Healthcare € 8.6 Billion sales in 2010 36,000+ People employed worldwide in 100 countries 450+ Products & services offered in over 100 countries 1 Last twelve months June 2011 8% of sales invested in R&D in 2010 Philips Healthcare Businesses 1 Sales & services geographies 1 Imaging Systems Home Healthcare Solutions Patient Care and Clinical Informatics Customer Services North America International 45% 34% 21% Growth Markets 38% 14% 22% 26%

4. Consumer Lifestyle € 5.8 Billion sales in 2010 17,000+ People employed worldwide 5% of sales invested in R&D in 2010 1 Last twelve months June 2011 2 Other category (6%) is mainly license income and is omitted from this overview Note - All figures exclude discontinued operations 34% of green product sales in 2010 Philips Consumer Lifestyle Businesses 1 2 Geographies 1 Personal Care Health & Wellness Domestic Appliances Lifestyle Entertainment Mature Markets 60% 40% Growth Markets 21% 12% 27% 34%

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

6. A strong position in growth markets Represents a significant and growing part of our global footprint 1 Source: Consumer Heart BEAT brand equity study 2010 Growth markets represent 32% of sales Championing growth with dedicated strategies Based on local market insights, supported by increased marketing investments. Increasing our footprint Domestic Appliances management is located in Shanghai Imaging value segment management located in Suzhou Patient Care and Clinical Informatics value segment management located in Shenzhen LED Lighting competence centre located in Shanghai Manufacturing for value segment products located in India Four healthcare companies acquired in Brazil Corporate brand equity index, 2010 BRIC Markets 2010 Position vs. Peers 1 Top 20% Top 10% Top 10% Top 40% Top 10%

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

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

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

10. Close customer relationships Creating promoters of our brand 59% 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?” Closer customer relationships in 2010 Maintained strong Net Promoter Score with 59% of our businesses holding industry leadership positions, up from 51% in 2008

11. Unique leadership positions in many markets Examples of current NPS leadership positions 1 Global Cardiovascular X-ray Global Ultrasound Global Patient Monitoring Regional Cardiac resuscitation Regional (USA) Home Monitoring Global Male electric shaving Global Mother and Child Care Regional (China) Haircare Regional (LatAm, China) Kitchen Appliances Global Oral Healthcare Global Professional Luminaires Global General Illumination LED Global Professional Lamps Healthcare Global Automotive Lighting Consumer Lifestyle Lighting 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 Global Lighting Systems & Controls

12. The world’s 42 nd most valuable brand in 2010 Brand value doubled since 2004 A strong brand drives sales A significant amount of sales is attributable to the brand alone: Healthcare 29% Consumer Lifestyle 24% Lighting 21% High brand value growth With 7% in 2010, Philips outpacing the average value increase of 4% shown by other brands Strong internal brand 82% of employees are “proud to work for Philips” Brand campaign 2010 Developing thought leadership in health and well-being and making our trusted brand promise of ‘sense and simplicity’ meaningful in this area Value of the Philips brand* USD billions * Source: Interbrand Brand Valuation 2010

13. Philips people High engagement driving productivity High performance benchmark Philips benefits from: A strong leadership team A highly engaged workforce Productivity per employee increased by 20% year on year Employee Engagement Index 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 2010 75 69 64 61 59 2005 2006 2007 2008 68 2009

14. Saeco (2009) Discus (2010) Dynalite (2009) Selecon (2009) Ilti Luce (2009) Genlyte (2008) Lighting Technologies (2007) Burton (2010) Teletrol (2009) 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) Shenzhen Goldway (2008) Tomcat (2008) Interactive Medical Developments (2008) Lighting Consumer lifestyle Healthcare Street Controls(2010) Optimum (2011) MedSage (2011) Preethi (2011) Emerging Markets Our global reach Focused portfolio through strategic acquisitions* * Strategic acquisitions since mid-September 2007 until January 2011

15. Healthcare Consumer Lifestyle Lighting Semiconductors Our growing portfolio in health and well-being Portfolio now consists of ~65% B 2 B businesses June ’11 last twelve months 16% 22% 30% 26% 40% 34% 2008 2005 17% 43% 45% 27% Healthcare Lighting Consumer Lifestyle Semiconductor Healthcare Lighting Consumer Lifestyle excl. TV 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 Figures exclude Television as it is treated as discontinued operation 3 2 1

16. Strong assets underpin our portfolio World’s 42 nd most valuable brand 2010 compared to the 65 th 2004 Consistently among top-ranked players, top 10% in India, China and Brazil, top 20% globally in the Corporate brand equity index 1 Our assets Our track record Innovation capabilities Philips brand Global footprint People Domain leadership Solid balance sheet Loyal customer base in 100+ countries 1/3 of group revenues from growth markets 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 Moody’s and A- by Standard & Poor’s New product sales increased from 48% of total sales ‘09 to 52% ‘10 Technology, know-how and strong IP positions (48,000 registered patents) 1 Consumer Heart BEAT brand equity study 2010 2 Based on annual Philips’ Employee Engagement Survey

17. Our market opportunity Healthcare Lighting 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 Consumer Lifestyle Ageing population leading Increase in patients managing chronic conditions Growth markets 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 markets Back to basics: simple propositions, trusted brands Global trends and challenges Examples market positions #1 cardiovascular X-ray #1 home healthcare #1 patient monitoring Close #3 imaging #1 lamps #1 luminaires #1 automotive #2 high power LEDs #1 in overall LED illumination #1 male electric shaving & grooming #1 garment care #1 food preparation #2 oral healthcare 41

18. Building on our legacy: Philips in its 120 th year Targeting growth with our strategic plan Responding to fast-changing market conditions Continuing people-focus: Highly engaged Philips people Strong relationships with customers Continued creation of meaningful innovations Looking forward