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

2. A well-respected, blue-chip company for 120 years a global company of leading businesses creating value withmeaningful innovationsthat improve peopleshealth 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 2 117,000 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. Aim for leadership in health & well-being

Our mission

Deliver meaningful innovations to

improve peoples lives

Our promise

Sense and simplicity

Our group strengths

Common, end-user driven innovation process

Strong global brand

Market access in over 100 countries

Engaged workforce

Ability to attract the best talent

Technology, know-how and strong IP positions

Economies of scale e.g. Shared service centers, financing

4. Portfolio leverages critical global trends Fundamental growth trends Global trends

Efficient health diagnostics and treatment

Home healthcare

Healthy lifestyle and preventive health

Personalwell-being

Light for health andwell-being

Energy efficient lighting

Growth markets

Sustainability

Our opportunities The relative importance ofgrowth marketsin the world economy continues to rise Population growth, aging, higher healthcare aspirations and l ifestyle related diseases mean thathealthcare costs will become unsustainable The lighting industry will face a massive shift from conventional todigital, dynamic lightingand the entry of new, non-traditional players Increased welfare and changing lifestyles will driveconsumer focus on health and well-being The fundamental need to reduce our eco-footprint drives demand forenergy efficiency and sustainability 5. Healthcare What we do. Where we are . 8.6 Billion salesin 2010 35,000+ People employed worldwide in 100 countries 450+ Products & servicesoffered in over 100 countries 1Last twelve months March 20118% of sales invested in R&D in 2010 Philips Healthcare Businesses 1 Sales & services geographies 1 Imaging Systems Home Healthcare Solutions Patient Care andClinical Informatics Customer Services North America International 45% 35% 20% Growth Markets 38% 14% 22% 26% 6. Consumer Lifestyle What we do. Where we are . 5.8 Billion salesin 2010 14,000+ People employed worldwide 5% of sales invested in R&D in 2010 1Last twelve months March 20112 Other category (6%) is mainly license income and is omitted from this overview Note - All figures from the year 2010 onwards exclude Television as it is treated as discontinued operation Philips Consumer Lifestyle Businesses 1 2 Geographies 1 Personal Care Health & Wellness DomesticAppliances Audio Video Multimedia Mature Markets 61% 39% Growth Markets Accessories 21% 11% 27% 21% 14% 7. Lighting What we do 7.6 Billion salesin 2010 53,000+ People employed worldwide in 60 countries 5% of sales invested in R&D in 2010 80,000+ Products & servicesoffered in 2010 1Indicative split Philips Lighting Customer Segments 1 24% 17% 17% 11% 13% 5% 2% 3% 8% Retail Entertainment Healthcare Automotive Homes Offices Outdoor Industry Hospitality 8. A strong position in growth markets Represents a significant and growing part of our global footprint 1Source:Consumer Heart BEAT brand equity study 2010

Growth markets represent 32% of sales

Championing growth withdedicated 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, 2010BRICMarkets 2010Position vs. Peers 1 Top 20% Top 10% Top 10% Top 40% Top 10% 9. 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

10. Creating meaningful innovations Improving lives in new ways Gain deep insights into peoples needs and aspirations by following a process requiringend-user input at every stage Transform insights into innovations by combining the diverse perspectivesof different disciplines Learn fast, fail cheapby applying a rigorous process to assess value potential earlyLead in open innovation by working closely together with partners in a spirit of open innovation 11. End-user inputat every stage of our innovation process Product creation processcontinues outside-in thinking throughout,with experiential andsimplicity testing. Insights on needsand aspirations are gathered by listening, watching and engaging our end-users and customers Multiple solutionsare created by in-house Marketing, R&D, and Design teams who collaborate, together with external specialists Conclusions are validatedwith end-users and customers, both globally and locally. 12. 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

13. Unique leadership positions in many markets Current NPS leadership positions 1 Global CardiovascularX-ray Global PatientMonitoring Global Ultrasound Regional Cardiac resuscitation Regional (USA) Home Monitoring 1(Co)Leadership is defined as outperforming (>5%) or on par with best competitor, globally or regionally Global Male electricshaving & grooming Global Mother and Child Care Regional (Latam, China) Beauty and Skin Regional(Latam, China) Kitchen appliances Global OralHealthcare Global High Power LEDs Global Professional Luminaires Global Lumileds Global Automotive Lighting Global Professional Lamps Healthcare Consumer Lifestyle Lighting 1Leadership 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 14. The worlds 42 ndmost valuable brand in 2010 Brand value doubled since 2004

A strong brand drives sales A significant amount of sales is attributable tothe 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 15. Philips people High engagement driving productivityHigh 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 over90,000 of thePhilips workforce showed we are amongstthe worlds top-ranking companies 2010 75 69 64 61 59 2005 2006 2007 2008 68 2009 16. 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 17. Healthcare Lighting Consumer Lifestyle 1 TV divestment increases focus on the profitable and growing health and well-being portfolio Portfolio now consists of ~65% B 2 Bbusinesses March 11 last twelvemonths 1Consumer Lifestyle in 2007 includes the former DAP and Consumer Electronics divisions/ Consumer Lifestyle 2011 is excluding Television activities 22007 figures are based on US GAAP 3All figures from the year 2010 onwards exclude Television as it is treated as discontinued operation 2007 actualsales split The reported EBITA for Consumer Lifestyle was 6.4% The reported EBITA for Consumer Lifestyle was 11.4%, excl. Television, which is treated as discontinued operations 3 2 18.

Strong Diversified Industrial Group in health & well-being:

• Our Healthcare, Lifestyle and Lighting markets havelong term growth and profit potential .We have a very good starting base to build on

• Weaim to achievemarket leadershipby deliveringmeaningful innovationsto improve peoples lives, andvalue to our customers

• We leverage our core competencies and group synergies in innovation, thePhilips brand , customeraccess in 100+ countries , ourtalent base , shared services, and asolid balance sheet

• We are committed to doing business in a manner that issustainable and responsible to society , withfinancial disciplineto driveshareholder value

We are positive about our opportunities 19.

• Building on our legacy: Philips in its 120 thyear

• 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