three billion people Philips founding fathers: Frederik, Gerard and - PDF document

12/12/2016 Delivering Delivering innovation that innovation that matters to you matters to you 1 2 Philips, a born innovator We strive to make the world healthier and more sustainable through innovation We’re aiming to improve the lives of three billion people Philips’ founding fathers: Frederik, Gerard and Anton Philips Founded in 1891, in Eindhoven, The Netherlands, to manufacture incandescent lamps and other electrical products. a year by 2025 For 125 years, we have been improving people’s lives with a steady flow of ground ‐ breaking innovations. 3 4 Present in more than +100 countries Philips’ seven largest markets Company overview Netherlands Philips €639 Geographies 1,2 Businesses 1,3 China million €2.8 Connected Care Western Other Mature Growth Diagnosis & & Health Lighting 4 North America Personal Health Germany Europe Geographies Geographies Treatment Informatics billion €1.4 United States Japan billion €7.5 €1.0 billion billion France 24% 34% 8% 34% 29% 28% 13% 30% €806 million €24.2 billion sales in 2015, 70% B2B €1.9 billion R&D spend in 2015 and ~76,000 patent rights 104,000 employees in over 100 countries More than 1/4 of revenues from recurring revenue streams India €845 million 1 Based on sales last 12 months September 2016. 2 Growth geographies are all geographies excluding USA, Canada, Western Europe, Australia, New Zealand, South Korea, Japan and Israel. 3 Excluding HealthTech Other. 4 Philips retains a 71.225% stake in Philips Lighting. 1 Seven largest markets by sales in 2015. 5 6 1

12/12/2016 Present in more than +100 countries Global Footprint Philips has 60 R&D sites and manufacturing in all continents Computed Tomography (CT) and Advanced Molecular Imaging (AMI) Netherlands Cleveland (Ohio) Philips Global corporate headquarters • Shenyang (China) Europe, Middle East and Africa sales & • Global CT/AMI Headquarters • service headquarters Value segment CT • System design & test • development Assembly Gantry, couch & x ‐ • North America ray chain Germany Reconstruction Asia • Employees: 23,614 Aachen ‐ Philips Digital • R&D centers: 20 Photon Counting (PDPC) Employees: 32,533 Hamburg – Philips Research Manufacturing sites: 29 • R&D centers: 9 Suzhou (China) Manufacturing sites: 20 CT development • Andover (Massachusetts) Manufacturing • Sub ‐ system EMEA • Philips Healthcare Headquarters manufacturing Employees: 39,903 R&D centers: 28 Haifa (Israel) Manufacturing sites: 35 Latin America CT manufacturing • Detector center of excellence Employees: 8,154 • System design & test R&D centers: 3 Lagua Santa (Brazil) • Console software Manufacturing sites: 11 • Localized manufacturing Bangalore (India) Software Development • 1 Source: Philips Annual Report 2015. Local Talent, Global Power 7 8 Cleveland Campus Overview Making the difference in HealthTech What do we do here? •Computed Tomography & Advanced Molecular Imaging Global Headquarters With our understanding of many of the longer ‐ term •Research & Development challenges our world faces, we see major opportunities •Legal Manufacturer to apply our innovative competencies and create value •Owns 510(k) and CE certificate for our stakeholders. •Leads Post Market Surveillance •Global Marketing CT/AMI •Global Customer ‐ visit & training center 9 10 Market trends and opportunities in HealthTech We deliver innovative solutions across the health continuum , empowering people to live life to their fullest potential 11 12 Confidential 2

12/12/2016 We target healthcare customer and consumer Making a difference across the health continuum needs along the health continuum 275 101 6.5 million Health continuum people improved their oral health with our oral healthcare products last year million million 21 petabytes lives improved globally through access to of imaging study data managed diagnostic X ‐ Ray for healthcare providers patients tracked with our Healthy living Prevention Diagnosis Treatment Home care patient monitor in 2015 250 million 1 million appliances sold each year making homes healthier patients monitored in their homes every day 14 We build on our strong leadership positions Diagnostic Imaging Imaging Modalities and Components Businesses >60% of sales from businesses with global leading positions 1 #1 in China Global leader Global top 3 Global leader Global leader Sleep & Respiratory Air Oral Healthcare Magnetic Resonance Image ‐ guided interventions Care Global leader Global leader Global leader #1 in North America Global leader Male Grooming Mother & Childcare Ultrasound Home Monitoring Smart catheters Monitoring, informatics and connected care Global leader #1 in North America Global leader Noninvasive Patient Monitoring Cardiology Informatics ventilation 2 15 16 Source: GfK, Nielsen, Euromonitor, Frost and Sullivan, Home Healthcare TBS, PCMS market insight. 1 Defined as the positions in which Philips has a top 3 position globally. Confidential Confidential 2 Based on non ‐ invasive ventilators for the home. Helping provide a confident diagnosis quickly and efficiently Physicians want to focus on their patients and make informed decisions based on Innovating for you relevant data. Our advanced visualization solutions, like the IntelliSpace Portal , enable physicians to provide fast, confident diagnosis and treatment. We bring together our R&D, and design expertise and By providing a unified view our local business ‐ creation capabilities to address of multiple scans and data, people’s needs. Physicians can answer critical questions quickly. Healthy living Prevention Diagnosis Treatment Home care 17 18 3

12/12/2016 We uncover healthcare needs through extensive We manage a dynamic portfolio of businesses international perception research and turn possibilities into great innovations 7.9% +40 76,000 of sales businesses patents in R&D The Future Health Index provides valuable insight to identify areas of focus to help achieve a better long ‐ term future for healthcare through health technology To see the full report visit www.futurehealthindex.com 19 20 We innovate with our Cost savings, workflow efficiencies, and partners improving patient care UCHealth, US We actively participate in open innovation through relationships with academic and industrial partners. We are a technology solutions partner of choice to: • major hospitals looking to increase effectiveness along the health continuum • health insurers looking to empower consumers and patients to realize their health potential 21 22 Teaming up to deliver innovative, Bringing a new experience to children’s imaging more affordable care department Augusta Health, US Noah’s Ark Children’s Hospital for Wales, Cardiff 23 24 All references can be found in the speaker notes 4

12/12/2016 We are a world leader in people ‐ centric design Since 1925 Philips design has evolved into being a key strategic partner for the The Philips brand business, improving people’s lives through meaningful innovation. Philips has consistently won more than 100 key design awards each year. Our trusted brand is present in over 100 countries – providing us with unique insights into local challenges and customers’ needs. 25 26 The Philips brand is a vital asset In 2016, ranked as 3rd most purposeful brand and most valuable Dutch brand Brand value Growth 11.3 +4% USD billion 2016 vs. 2015 Philips Group Portfolio 11,336 10,933 10,264 9,812 9,066 Deep Market Technology Global Philips Our Insights People Innovation Footprint Brand Balance sheet 2012 2013 2014 2015 2016 Interbrand Best Global Brand valuation USD ‘billion Source: Radley Yelder study Sep 2016, Interbrand BGB rankings 2016 27 Our innovation is based on deep human insights We improve lives through meaningfulinnovation Innovation People Philips is passionate to invent Demanding professionals and and partner to apply technology consumers want innovation to that helps people succeed be personal, relevant & impactful 30 5

12/12/2016 We deliver innovation that matters to you Making a real difference in people’s lives 34 35 6