Introduction to Philips

Benno Tieke, Philips Research, Strategy & Business Development

University Startups Conference 2013, Washington DC - Corporate Reverse Showcase, 21 March 2013 -

Philips: A strong diversified industrial group leading in health and well-being

Philips

Businesses1, 2 Geographies1

Healthcare Consumer Lighting Western North Other Mature Growth Lifestyle Europe America Geographies Geographies3

41% 24% 35% 26% 31% 8% 35%

Since 1891 €24.8 Billion 118,000+ $9.1Billion 7% of sales invested Headquarters in Sales in 2012. People employed Brand value in 2012 in R&D in 2012 Amsterdam, the Portfolio consists of worldwide in over 100 54,000 patent rights, Netherlands ~65% B2B countries 39,000 trademark rights, businesses 70,000 design rights 1 Full year 2012 2 Excluding Central sector (IG&S) 3 Growth geographies are all geographies excluding USA, Canada, Western Europe, Australia, New Zealand, South Korea, Japan and Israel Note - All figures exclude discontinued operations At Philips we strive to make the world healthier and more sustainable through innovation

We will be the best Together we will deliver place to work for people superior value for our who share our passion customers and shareholders

Improving people’s lives through meaningful innovation 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

4 Philips Research: Innovation around the Globe More than 1500 Scientists, 60% working on Healthcare of the Future

Briarcliff Cambridge Paris Eindhoven Hamburg Bangalore Shanghai Clinical sites Home & Oral Healthcare Healthcare Healthcare Emerging Markets Emerging Markets Healthcare Healthcare Lighting Healthcare Healthcare Lighting Lifestyle Lighting Lighting, Lifestyle Philips Research Innovation Areas and Topics

Healthcare Consumer Lifestyle Lighting

• Diagnostic imaging • Healthy life • LED conversion and • Image-guided intervention • Personal care systems & therapy • Home living • Advanced light delivery • Patient care • Interactive living • Light and energy • Clinical decision support management

• Home and personal • Lighting services healthcare • Light for Health and well- • Healing environments and being services

6 6 Open Innovation Accelerator team as part of Strategy & Business Development • Focal point for external technology, competence & knowledge scouting, early stage innovation sourcing, and strategic partner search & selection

• Drives the culture change

• Create tools and processes

• Support Programs and Divisions in designing & executing Open Innovation deals

• Member of Program Boards and connected to Business • Healthcare: Benno Tieke Ø [email protected] • Lighting & Consumer Lifestyle: Ronald Wolf Ø [email protected]

Healthcare

Philips Healthcare

Businesses1 Geographies1

Imaging Home Patient Care Customer Western North Other Mature Growth Systems Healthcare and Clinical Services Europe America Geographies Geographies2 Solutions Informatics

38% 15% 22% 25% 20% 44% 12% 24%

€10.0 37,000+ 8% 450+ Billion sales People employed of sales invested in R&D Products & services in 2012 worldwide in 100 countries in 2012 offered in over 100 countries

1 Full year 2012 2 Growth geographies are all geographies excluding USA, Canada, Western Europe, Australia, New Zealand, South Korea, Japan and Israel Consumer Lifestyle

Philips Consumer Lifestyle

Businesses1, 2 Geographies1

Personal Health & Domestic Lifestyle Western North Other Mature Growth Care Wellness Appliances Entertainment Europe America Geographies Geographies3

24% 15% 33% 26% 31% 18% 5% 46%

€6.0 18,000+ 5% 32% Billion sales People employed of sales invested of green product in 2012 worldwide in R&D in 2012 sales in 2012

1 Full year 2012 2 Other category (2%) is omitted from this overview 3 Growth geographies are all geographies excluding USA, Canada, Western Europe, Australia, New Zealand, South Korea, Japan and Israel Note - All figures exclude discontinued operations Lighting

Philips Lighting

Businesses1 Geographies1

Light Professional Lumileds Automotive Consumer Western North Other Mature Growth Sources & Lighting Luminaires Europe America Geographies Geographies2 Electronics Solutions

52% 29% 4% 9% 6% 28% 25% 6% 41%

€8.4 50,000+ 5% 80,000+ Billion sales People employed of sales invested Products & services in 2012 worldwide in 60 countries in R&D in 2012 offered in 2012

1 Full year 2012 2 Growth geographies are all geographies excluding USA, Canada, Western Europe, Australia, New Zealand, South Korea, Japan and Israel We have strong leadership1 positions in many markets across the globe

Healthcare

GlobalGlobal Global Global Global Regional CardiovascularCardiovascular Patient Cardiac Sleep Therapy Ultrasound X-rayX-ray Monitoring Resuscitation Systems

Consumer Lifestyle

Global Global Global Regional Regional Male Electric Garment Care Rechargeable Kitchen Electric Hair Shaving Toothbrushes Appliances Care

Lighting

Global Global Global Global Global Lamps LED Lamps Automotive Professional High Power LEDs Lighting Luminaires

1 Global or Regional #1 or #2 position in the market Our global reach Focused portfolio through strategic acquisitions*

Tomcat (2008)

Sectra (2011) Interactive Medical Developments (2008)

Genlyte (2008) Dameca (2011) MedSage (2011) Traxtal (2009) Street Controls (2010)

Raytel (2007) Povos(2011) Burton (2010) Somnolyzer (2010) Indal (2011) Saeco (2009) CDP Medical Ltd. (2010) Teletrol (2009) Shenzhen Goldway (2008) Lighting Technologies (2007) Optimum (2011) NSW (2010) Discus (2010) Ilti Luce (2009) Luceplan (2010) InnerCool Therapies (2009) Medel (2008) Apex (2010) Visicu (2008) Alpha X-Ray (2008) Respironics (2008) Meditronics (2008) AllPartsMedical (2011) Dynalite (2009) Wheb Sistemas (2010) Preethi (2011)

Emergin (2007) VMI-Sistemas Medico (2007) Selecon (2009)

Tecso Informatica (2010) Dixtal Biomedica e Technologia (2008)

Healthcare Lighting Consumer Lifestyle Growth geographies * Strategic acquisitions since mid-September 2007 until May 2012 (no new acquisitions thereafter). Philips Research is part of Philips Group Innovation

Philips Research Philips Innovation Services Generating new feasible options in Engineering & Industrialization support technology, function or application, as well services to help accelerate. as product development support. • Product and process development • Exploration of opportunities • Prototyping and small series • Concept creation -technology, function • Industrialization • 1st of a kind product development • Quality and reliability • Know How generation (IPR) • Sustainability, safety and health • Leveraging cross business technologies • Industry consulting • Leveraging external scientific contacts • Strategy formulation and M&A support

Philips IP&S Philips Design Providing world class IP solutions to Ensuring that innovations are differentiated Philips’ businesses to support their and meaningful for people, for customers, growth, competitiveness and profitability. for users. • IP landscaping • Foresight and context research • Detailed IP mapping & benchmark • People insight research • ID assessment, filing and prosecution • Experience Design • IP risk assessment and advise • Product and interaction design • Handling third party assertions • Communication and service design • Scouting for additional IP • Licensing-in for Philips use • Standardization & Regulation

14