Brighter Lives, Better World From sustainability commitment to reporting

Maurice Loosschilder & Juliette Gaussem Sustainability Strategy and Reporting, Signify

Signify is the world leader in lighting Light sources

Luminaires

SmartSmart Volume Volume pendant pendant

Philips deco LED

2

IoT lighting systems and Services

Allianz Arena, Munich

â‚Ź6.3

29,237

4.5%

#1 Conventional

#1 LED

#1 Connected

Industry Leader

billion sales in 2018

people employed in 74 countries

of sales invested in R&D

superior lighting benefits

71% of lighting sales is LED (2018)

lighting systems & services, rich partner ecosystem

In the 2017 and 2018 Dow Jones Sustainability Index

From commitment to reporting – our process a. Context and trends (SDGs, Media, Literature, etc.)

Strategy & commitments

b. Stakeholders & materiality

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c. Our purpose

Integrated reporting for long term value creation

a. Context and trends – Our world is changing

Population growth

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Resource challenges

Digitalization

b. Stakeholders & materiality Stakeholders • Customers

• Employees • Investors • Suppliers • Governments

• Civil society Engagement Continuous internal and external stakeholders engagement Annual stakeholders meetings and/or survey dedicated to sustainability 5

c. Our purpose

To unlock the extraordinary potential of light for brighter lives and a better world

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Our Brighter Lives, Better World commitments for 2020 Sustainable revenues

Sustainable operations

80% of revenues from sustainable products, systems and services

100% carbon neutral & 100% renewable electricity

More than 2 billion LED lamps and luminaires delivered by 2020

Zero waste to landfill in our operations

Safe and healthy workplace

Sustainable supply chain

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Signify integrated reporting 8

Sustainability Governance

Targets setting and tracking

Leadership team Board of management Supervisory Board

Corporate and Business Group levels

Remuneration policy

Reasonable Assurance

20% of our annual long-term incentive grant

Financial and sustainability statements

How we create value for society

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Our 2018 achievements

23% decrease in gross 79.0% Sustainable revenues 29% decrease in Total carbon footprint compared to FY2017

Carbon neutral Operations in Benelux, MET, UKI, IIG, France, Iberia, China, US, Canada

93% of risk suppliers passed the audit

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We achieved the highest score in the 2018 CDP climate disclosure We were named 2017 & 2018 Industry Leader in the Dow Jones Sustainability Index

Recordable Case rate compared to FY2017

17% decrease in waste to landfill compared to FY2017

We entered the sustainability of industrial leaders’ group of the Global Challenges Index waste is recycled

82%

1.75 Billion LED

89% of our used electricity came from

lamps and Luminaires delivered since 2015

renewable sources