Press Release
January 29, 2021

Signify reports full year 2020 sales of EUR 6.5 billion, an Adj. EBITA margin of 10.7% and afree cash flow of EUR 817 million
Fourth quarter 20201• Sales of EUR 1,878 million; 7.4% nominal sales growth and CSG of -5.9%• Adj. indirect costs down EUR 18 million, or -3.9% excl. FX effects, changes in scope2 and provisions for the
reimbursement of employee contributions• Adj. EBITA margin improved by 20 bps to 13.4%• Net income increased by 39.4% to EUR 137 million• Free cash flow of EUR 332 million (Q4 19: EUR 308 million)
Full year 2020
• Signify’s installed base of connected light points increased from 56 million at YE 193 to 77 million at YE 20• Sales of EUR 6,502 million, nominal sales growth of 4.1% and CSG of -12.7%• LED-based sales represented 80% of total sales (FY 19: 79%4)• Adj. indirect costs down EUR 166 million, or -9.1% excl. FX effects and changes in scope2• Adj. EBITA grew by 7.2% to EUR 695 million• Adj. EBITA margin improved by 30 bps to 10.7%• Net income increased by 25.4% to EUR 335 million (FY 19: EUR 267 million)• Free cash flow amounted to EUR 817 million (FY 19: EUR 529 million), representing 12.6% of sales• Net debt position of 1,275 million at year-end 2020 with a net debt/EBITDA ratio of 1.7x
• Cooper Lighting and Klite integration and synergies ahead of plan
• Successful completion of Brighter Lives, Better World 2020 sustainability program and achievement ofcarbon neutrality for all operations across the world
Dividend• Proposal to pay extraordinary cash dividend of 1.35 per share, announced on January 13, 2021
• Proposal to pay regular cash dividend of EUR 1.40 per share over 2020
Eindhoven, the Netherlands – Signify (Euronext: LIGHT), the world leader in lighting, today announced thecompany’s 2020 full year results.
“While our industry was severely impacted by the pandemic, we managed to strengthen our financial
performance. Our gross margin increased due to rigorous price and cost management, resulting in our seventh
consecutive year of Adjusted EBITA margin improvement. From the start of the crisis, we were disciplined inworking capital management, allowing us to generate a record-high free cash flow of EUR 817 million. As per our
strategy, the contribution from our digital divisions increased substantially in 2020. In line with our governanceprinciples, we decided to pay back both our employees and our shareholders, who have supported us since thebeginning of the crisis. At the same time, we confirmed a continued deleveraging commitment. It was also ayear in which we increased the installed base of connected light points to 77 million, illustrating the growinginterest for connected lighting. Lastly, we overachieved on our 2020 sustainability goals, including carbon
neutrality,” said CEO Eric Rondolat.
¹This press release contains certain non-IFRS financial measures and ratios, such as comparable sales growth, EBITA, adjusted EBITA and free cash flow, andrelated ratios, which are not recognized measures of financial performance or liquidity under IFRS. For a reconciliation of these non-IFRS financial measures tothe most directly comparable IFRS financial measures, see appendix B, Reconciliation of non-IFRS financial measures, of this press release.
2
Changes in scope relate to the consolidation of Cooper Lighting and Klite.
3
2019 includes pro-forma Cooper Lighting and WiZ.
4
2019 includes pro-forma Cooper Lighting.

2“The ongoing nature of the pandemic means we remain cautious about market developments in 2021 but weare confident in our ability to further adapt, as demonstrated throughout 2020. As outlined during our CapitalMarkets Day in December, we are optimizing our costs in several ways to enhance our competitiveness in a
rapidly transforming Lighting industry. We are making our central organization leaner in order to reduce ourindirect costs as a percentage of sales, which have increased due to the COVID-19 pandemic. Regrettably, thesechanges will result in a number of positions being lost and we will support impacted employees. At the sametime, we will continue to innovate and develop our growth platforms to capture new business opportunities inline with our strategy. I see the further integrations of Cooper and Klite positively impacting our performance.
2021 is also the first year of our new sustainability program and marks a great opportunity to embark on the
exciting journey to double our positive impact on the environment and society in the next five years.”

Environment, Society & Governance
Sustainability is central to Signify's strategy. It is the company's purpose to unlock the extraordinary potential oflight for brighter lives and a better world. In 2020, Signify successfully completed its Brighter Lives, Better World
2020 sustainability program, even outperforming on many of its ambitious commitments.
Sustainable revenues:• 84.1% of revenues from a portfolio of sustainable products, systems and services, exceeding the 2020
target of 80%• 2.9 billion LED lamps and luminaires delivered since 2015 compared to a target of more than 2 billion
Sustainable operations:• Carbon neutrality for all operations across the world• Usage of 100% renewable electricity• Zero waste to landfill across all manufacturing sites• Best-ever safety performance (Total Recordable Case rate of 0.22, target <0.35)• 99% performance rate in supplier sustainability (target 90%)
• Lit the lives of 5 million people through expansion of solar lighting
In September 2020, Signify embarked on a course to have doubled its positive impact on the environment andsociety in 2025 with the following ambitions:• Double the pace at which we achieve the 1.5 C scenario of the Paris Agreement• Double our Circular revenues to 32%• Double our Brighter Lives revenues to 32%• Double our % of women in leadership to 34%
Signify’s commitment is recognized in the Dow Jones Sustainability World Index and the CDP A-List for Climate.

OutlookSignify is committed to the following medium-term guidance for the period 2021-2023:• Yearly comparable sales growth of 0% to 5%• Adj. EBITA margin of 11% to 13% in 2023
• Free cash flow above 8% of sales for the period 2021-2023• ROCE of at least 11% for the period 2021-2023
For 2021, Signify expects positive comparable sales growth, the level of which will depend on the recovery
pattern in its markets. In addition, the company expects to continue its steady progress towards its mediumterm Adj. EBITA margin objective. Cash flow, following two years of significant structural working capital
improvements, is expected to exceed 8% of sales. As guided for the mid-term, this includes a higher initial cash
outflow for cost restructuring and continued post-merger integration activities.

2

Capital allocation
Signify remains focused on maintaining a robust capital structure and is committed to an investment grade
rating. The company plans to pay an increasing annual dividend per share in cash year-on-year and will continue
to prioritize deleveraging to strengthen its balance sheet and return to a leverage ratio of reported net debt/
EBITDA of less than 1x by the end of 2022. Signify will also continue to invest in R&D and other growth
opportunities, while pursuing selective M&A opportunities in line with its strategic priorities.
In line with its commitment to its shareholders, Signify proposes to declare a cash dividend of EUR 1.40 per
share for 2020. This is in addition to the previously proposed extraordinary cash dividend of EUR 1.35 per share,announced on January 13, 2021. The amount of extraordinary dividend is in line with the dividend proposal of
EUR 1.35 for 2019, which was withdrawn to ensure the company's resilience and to strengthen its financial
position during the COVID-19 crisis. Both dividend proposals will be subject to approval at the Annual General
Meeting of Shareholders (AGM) to be held on May 18, 2021. Further details will be provided in the agenda for
the AGM.
In addition to this, the company announced on January 13, 2021, that it intends to repay a minimum of EUR 350
million of debt in 2021, thereby confirming its commitment to further deleverage.

Financial review
2019

Fourth quarter
2020

1,750
661
37.8%

1,878
755
40.2%

-389
-68
-457
26.1%

-458
-76
-534
28.4%

232
13.2%
-67
164

251
13.4%
-66
185

138
-11
-29
98

155
-12
-6
137

308
0.74
32,005332
1.05
37,926change
-5.9%
-4.8%
18.0%
7.4%
14.2%

-16.7%

8.3%

12.8%
11.8%

39.4%

Twelve months
2020*

in millions of EUR, except percentages

2019

Comparable sales growth
Effects of currency movements
Consolidation and other changes
Sales
Adjusted gross margin
Adj. gross margin (as % of sales)

6,247
2,360
37.8%

6,502
2,556
39.3%

Adj. SG&A expenses
Adj. R&D expenses
Adj. indirect costs
Adj. indirect costs (as % of sales)-1,544-270-1,81329.0%-1,695-287-1,98230.5%

Adjusted EBITA
Adjusted EBITA margin
Adjusted items
EBITA

648
10.4%
-148
500

695
10.7%
-159
536

7.2%

Income from operations (EBIT)Net financial income/expense
Income tax expense
Net income

401
-43
-93
267

416
-54
-27
335

3.6%

Free cash flow
Basic EPS (€)
Employees (FTE)

529
2.08
32,005817
2.58
37,926* For comparability purposes please note that FY 2020 includes only 10 months of Cooper Lighting performancechange-12.7%
-2.2%
19.0%
4.1%
8.3%

-9.3%

7.1%

25.4%

3

Fourth quarter
Sales amounted to EUR 1,878 million, a nominal increase of 7.4%. Adjusted for 18.0% changes in consolidationand other changes and 4.8% negative currency effects, comparable sales decreased by 5.9%. LED-based sales
accounted for 82% of total sales. The adjusted gross margin increased by 240 bps to 40.2% largely driven by arobust performance in the connected home category, rigorous price management, procurement savings and theconsolidation of Cooper Lighting. The adjusted indirect costs increased by EUR 77 million. Excluding currency
effects, changes in scope, and provisions for the reimbursement of solidarity contributions to its employees, theadjusted indirect costs decreased by EUR 18 million, or -3.9%. Adjusted EBITA amounted to EUR 251 million, an
8.3% increase compared to the same period last year. The Adjusted EBITA margin improved by 20 bps to 13.4%,
mainly driven by gross margin improvement.
Total restructuring costs were EUR 43 million and acquisition-related charges and other incidentals were EUR 22
million. Net income increased from EUR 98 million last year to EUR 137 million in Q4 20, driven by higher EBIT
and lower income tax expense due to a one-time non-cash tax benefit resulting from the revaluation of deferred
tax assets. Free cash flow amounted to EUR 332 million, reflecting profitability improvements and structural
working capital improvement.
Full year
Sales amounted to EUR 6,502 million, a nominal increase of 4.1%. Adjusted for 19.0% changes in consolidationand other changes and 2.2% negative currency effects, comparable sales decreased by 12.7%. LED-based sales
represented 80% of sales compared with 79% in 2019. Adjusted gross margin improved by 150 bps to 39.3%,
driven by the consolidation of Cooper Lighting, a strong performance in connected home lighting and rigorous
price and cost management. Adjusted indirect costs increased by EUR 169 million, or 150 bps as a percentage ofsales. Excluding currency effects and changes in scope, adjusted indirect costs decreased by EUR 166 million, asa result of continued implementation of cost reduction initiatives. Adjusted EBITA amounted to EUR 695 million
compared with EUR 648 million last year and was negatively impacted by EUR 38 million of currency effects. The
Adjusted EBITA margin improved by 30 bps to 10.7%, including an adverse currency effect of 30 bps. This
improvement was mainly driven by Digital Products and Digital Solutions, as both divisions are maturing theirprofit margin profile.
Total restructuring costs were EUR 83 million, acquisition-related charges were EUR 63 million and incidental
items were EUR 13 million. Net income was EUR 335 million compared with EUR 267 million last year, largely
driven by lower income tax expense, primarily due to a one-time non-cash tax benefit from changes in theorganizational structure as well as from the revaluation of deferred tax assets. Free cash flow amounted to EUR
817 million compared with EUR 529 million last year, largely driven by a second year of structural working
capital improvement and lower restructuring payout. Free cash flow was 12.6% of sales in 2020.

Digital Solutions
Fourth quarter
2019

2020

720
92
12.7%
71
49

917
105
11.5%
75
47

Twelve months
change in millions of EUR, unless otherwise indicated-10.2%

Comparable sales growth

27.3%
15.1%

Sales
Adjusted EBITA
Adjusted EBITA margin
EBITA
Income from operations (EBIT)

4.9%
-4.1%

2019

2020*

2,649
265
10.0%
222
133

3,252
330
10.2%
230
119

change-14.4%
22.8%
24.6%
3.5%
-10.4%* For comparability purposes please note that FY 2020 includes only 10 months of Cooper Lighting performance

Fourth quarter
Sales amounted to EUR 917 million, a nominal increase of 27.3%, as a result of the consolidation of Cooper
Lighting, while comparable sales declined by 10.2%, reflecting the continued market weakness, particularly in
the Americas, parts of Europe and Southeast Asia. LED-based sales accounted for 89% of total sales including
Cooper Lighting. Connected-based sales represented 22% of total sales excluding Cooper Lighting. Adjusted
EBITA amounted to EUR 105 million, resulting in an Adjusted EBITA margin of 11.5%.

4Full year
Sales amounted to EUR 3,252 million, a nominal increase of 22.8%, as a result of the consolidation of Cooper
Lighting. Comparable sales declined by 14.4% due to the impact of the COVID-19 pandemic. LED-based sales
accounted for 91% of total sales including Cooper Lighting. Connected-based sales represented 22% of total
sales excluding Cooper Lighting. Adjusted EBITA amounted to EUR 330 million. The Adjusted EBITA margin
improved by 20 bps to 10.2%, with a positive impact from the consolidation of Cooper Lighting as well as
synergy realization.

Digital Products
2019

Fourth quarter2020

change in millions of EUR, unless otherwise indicated2019

Twelve months
2020

2.5%

Comparable sales growth

-2.8%
11.0%

Sales
Adjusted EBITA

2,412
260

2,288
295

Adjusted EBITA margin

10.8%

12.9%

change
-8.3%

731
115

711
128

-5.1%
13.4%

15.7%

18.0%

104

122

17.9%

EBITA

222

277

24.8%

101

121

19.1%

Income from operations (EBIT)

215

269

25.3%

Fourth quarter
Sales amounted to EUR 711 million, a nominal decrease of 2.8%. On a comparable basis, sales improved by 2.5%,
with a robust performance particularly in the connected home category. Connected-based sales represented
30% of total sales. Adjusted EBITA amounted to EUR 128 million, resulting in an improvement in the Adjusted
EBITA margin of 230 bps to 18.0%, mainly driven by positive mix impact from higher connected home sales, solid
price management and procurement savings.
Full year
Sales amounted to EUR 2,288 million, a decrease of 8.3% on a comparable basis. Overall, sales in the consumer
channel have shown a solid performance in weak market conditions, specifically online sales. Connected-based
sales represented 21% of total sales. Adjusted EBITA amounted to EUR 295 million. The Adjusted EBITA margin
improved by 210 bps to 12.9%, a sign of Digital Products maturing its profit margin profile.

Conventional Products
Fourth quarter
2019
290
50
17.3%
17
17

2020
242
46
18.9%
30
30

Twelve months
change in millions of EUR, unless otherwise indicated-11.6%

Comparable sales growth-16.7%-8.9%

Sales
Adjusted EBITA
Adjusted EBITA margin
EBITA
Income from operations (EBIT)

80.8%
80.8%

2019

2020

change-16.5%

1,159
222
19.2%
168
168

943
170
18.0%
149
149

-18.7%-23.7%-11.4%-11.2%

Fourth quarter
Sales amounted to EUR 242 million, a comparable decrease of 11.6%. Despite the impact of the pandemic,
Conventional Products showed a solid performance mainly as a result of strong demand for UV-C andhorticulture lighting. The division continues to deliver on its ‘last company standing’ strategy, which resulted infurther market share gains and solid free cash flow generation. The Adjusted EBITA margin improved by 160 bps
to 18.9%, driven by adjusted indirect cost savings and higher productivity, offsetting lower volume.

5

Full year
Sales amounted to EUR 943 million, a comparable decrease of 16.5%. The Adjusted EBITA margin decreased by
120 bps to 18.0%, mainly due to lower volume.

Other
Fourth quarter'Other' represents amounts not allocated to the operating segments and includes certain costs related both tocentral R&D activities to drive innovation and to group enabling functions. Adjusted EBITA amounted to EUR -28
million (Q4 19: EUR -26 million). EBITA amounted to EUR -42 million (Q4 19: EUR -28 million). Restructuring costs
and other incidentals were EUR -14 million (Q4 19: EUR -2 million) during the quarter.
Full year
Adjusted EBITA amounted to EUR -100 million in 2020 (2019: EUR -100 million). EBITA amounted to EUR -120
million (2019: EUR -112 million), including restructuring costs and other incidentals of EUR -20 million (2019:
EUR -13 million).

Sales by market
Fourth quarter
2019

2020

Change

652
452
500
145
1,750

630
656
450
143
1,878

-3.5%
44.9%
-9.9%
-1.6%
7.4%

Twelve months
CSG in millions of EUR, except percentages-1.8%-11.5%
-3.9%
0.3%
-5.9%

EuropeAmericasRest of the World
Global businesses
Total

2019

2020

change

CSG

2,238
1,747
1,855
406
6,247

2,060
2,414
1,500
528
6,502

-7.9%
38.1%
-19.1%
29.8%
4.1%

-6.8%
-15.9%-16.3%-7.3%-12.7%In 2020 Americas includes Cooper Lighting and Global businesses includes Klite

Fourth quarter
Europe saw a sequential recovery with a comparable sales decline of 1.8%, with positive developments in the
Benelux, Nordics and Germany. In the Rest of the World, China and the Middle East show signs of recovery,
despite continued softness in India, Indonesia and Southeast Asia. Americas experienced continued challenging
market conditions with a comparable sales decline of 11.5%.
Full year
Comparable sales in Europe decreased by 6.8%, reflecting challenging market conditions, particularly in France,
the UK, Spain and Italy. Comparable sales in Americas decreased by 15.9% with a negative impact from all
markets. In the Rest of the World, comparable sales declined by 16.3%, particularly due to China, India,
Southeast Asia and Indonesia.

6Working capital
31 Dec, 2019 30 Sep, 2020 31 Dec, 2020in millions of EUR, unless otherwise indicatedInventories
Trade and other receivables
Trade and other payables
Other working capital items
Working capital
As % of LTM* sales*

LTM: Last Twelve Months
6,614
6,336

874
1,223
(1,684)
(25)
388
6.2%

1,000
1,155
(1,749)
37
443
7.0%

885
1,140
(1,731)
19
313
4.8%

6,275

Fourth quarterIn the fourth quarter, working capital decreased by EUR 130 million to EUR 313 million, representing 4.8% ofsales, mainly driven by seasonally lower inventories.
Full year
Working capital decreased by EUR 75 million to EUR 313 million year-on-year, reflecting structural changes inreceivables and other working capital items, and higher payables, notwithstanding the addition of Cooper
Lighting's working capital. Working capital represented 4.8% of sales at the end of December 2020, comparedwith 6.2% at the end of December 2019. Working capital improved by 130 bps to 4.7% of sales when including
pro-forma last twelve-months sales for both Cooper Lighting and Klite.

Cash flow analysis
Fourth quarter
2019
2020
138
155
77
65
-69
152
-4
-26
-26
1
308

86
75
-59
119
-6
-23
-27
13
332

in millions of EUR

Income from operations (EBIT)
Depreciation and amortization
Additions to (releases of) provisions
Utilizations of provisions
Change in working capital
Net interest and financing costs paid
Income taxes paid
Net capex
Other
Free cash flow

Twelve months
2019
2020
401
416
288
178
-246
110
-17
-90
-70
-26
529

332
172
-197
239
-33
-73
-75
37
817

Fourth quarter
Free cash flow amounted to EUR 332 million, as a result of higher income from operations and structural
working capital improvement. Free cash flow included a restructuring payout of EUR 10 million (Q4 19: EUR 25
million).
Full year
Free cash flow amounted to EUR 817 million, or 12.6% of sales, an increase of EUR 288 million compared with2019. The improvement in free cash flow is largely driven by a second year of structural working capital
improvement and lower restructuring payout.

7

In millions of EUR

Digital Solutions
Digital Products
Conventional Products
Other*
Signify total

Free cash flow
FY 2019
319
240
222
-252
529

FY 2020
436
406
188
-213
817

* Non-allocated free cash flow items (e.g. tax, interest)

In 2020, the free cash flow of Digital Solutions and Digital Products combined accounted for 82% of company
free cash flow excluding 'other', which shows the maturing cash profiles of Digital Solutions and Digital Products
and the lower dependency on Conventional Products. Free cash flow of Digital Solutions significantly increased
by EUR 117 million to EUR 436 million. Free cash flow of Digital Products almost doubled to EUR 406 million, an
increase of EUR 166 million over last year. In Conventional Products, free cash flow remained robust at EUR 188
million, a decrease of EUR 34 million over last year.

Net debt and total equity
in millions of EUR

Short-term debt
Long-term debt
Gross debt
Cash and cash equivalents
Net debt
Total equity

31 Dec, 2019 30 Sep, 2020 31 Dec, 2020
96

100

86

1,369
1,465
847
618
2,324

2,251
2,351
762
1,589
2,295

2,221
2,307
1,033
1,275
2,321

Fourth quarter
Our cash position increased by EUR 271 million to EUR 1,033 million compared with the end of September 2020.
Net debt amounted to EUR 1,275 million, a decrease of EUR 314 million compared with the end of September
2020. Net leverage reduced from 2.2x at the end of September 2020 to 1.7x at the end of December 2020,
which is in line with our deleveraging strategy. Total equity increased to EUR 2,321 million at the end of Q4 (Q320: EUR 2,295 million), primarily due to net income and adjustments in pension positions recognized in equity,
offset by currency translation results.
Full year
Compared with the end of 2019, net debt increased by EUR 657 million to EUR 1,275 million, mainly due to anincrease in long-term debt related to the acquisition of Cooper Lighting, partly offset by an increase in the cash
position. Total equity remained broadly stable at EUR 2,321 million at the end of 2020 (2019: EUR 2,324 million),as the impact of currency translation results and the purchase of treasury shares for employee long term
incentive plans were offset by net income.

8

Other information
Appendix A – Selection of financial statements
Appendix B – Reconciliation of non-IFRS financial measures
Appendix C – Financial Glossary
Conference call and audio webcast
Eric Rondolat (CEO) and Javier van Engelen (CFO) will host a conference call for analysts and institutional
investors at 9:00 a.m. CET to discuss the fourth quarter and full year 2020 results. A live audio webcast of theconference call will be available via the Investor Relations website.
Financial calendar 2021
February 23, 2021
April 30, 2021
May 18, 2021
May 20, 2021
May 21, 2021
June 1, 2021
July 23, 2021
October 29, 2021

Annual Report publication
First quarter results 2021
Annual General Meeting
Ex-dividend date
Dividend record date
Dividend payment date
Second quarter results 2021
Third quarter results 2021

For further information, please contact:
Signify Investor Relations
Thelke Gerdes
Tel: + 31 6 1801 7131
E-mail: thelke.gerdes@signify.com
Signify Corporate Communications
Elco van GroningenTel: +31 6 1086 5519
E-mail: elco.van.groningen@signify.com
About Signify
Signify (Euronext: LIGHT) is the world leader in lighting for professionals and consumers and lighting for theInternet of Things. Our Philips products, Interact connected lighting systems and data-enabled services, deliver
business value and transform life in homes, buildings and public spaces. With 2020 sales of EUR 6.5 billion, we
have approximately 38,000 employees and are present in over 70 countries. We unlock the extraordinary
potential of light for brighter lives and a better world. We achieved carbon neutrality in 2020, have been in the
Dow Jones Sustainability World Index since our IPO for four consecutive years and were named Industry Leader
in 2017, 2018 and 2019. News from Signify is located at the Newsroom, Twitter, LinkedIn and Instagram.
Information for investors can be found on the Investor Relations page.

9

Important Information
Forward-Looking Statements and Risks & Uncertainties

This document and the related oral presentation contain, and responses to questions following the presentation may
contain, forward-looking statements that reflect the intentions, beliefs or current expectations and projections of Signify N.V.
(the “Company”, and together with its subsidiaries, the “Group”), including statements regarding strategy, estimates of sales
growth and future operational results.
By their nature, these statements involve risks and uncertainties facing the Company and its Group companies, and a numberof important factors could cause actual results or outcomes to differ materially from those expressed in any forward-looking
statement as a result of risks and uncertainties. Such risks, uncertainties and other important factors include but are notlimited to: adverse economic and political developments, the impacts of COVID-19, rapid technological change, competitionin the general lighting market, development of lighting systems and services, successful implementation of business
transformation programs, impact of acquisitions and other transactions, reputational and adverse effects on business due toactivities in Environment, Health & Safety, compliance risks, ability to attract and retain talented personnel, adverse currency
effects, pension liabilities, and exposure to international tax laws. Please see “Risk Factors and Risk Management” in Chapter
12 of the Annual Report 2019 for discussion of material risks, uncertainties and other important factors which may have amaterial adverse effect on the business, results of operations, financial condition and prospects of the Group. Such risks,
uncertainties and other important factors should be read in conjunction with the information included in the Company’s
Annual Report 2019.
Additional risks currently not known to the Group or that the Group has not considered material as of the date of thisdocument could also prove to be important and may have a material adverse effect on the business, results of operations,financial condition and prospects of the Group or could cause the forward-looking events discussed in this document not to
occur. The Group undertakes no duty to and will not necessarily update any of the forward-looking statements in light of
new information or future events, except to the extent required by applicable law.

Market and Industry Information

All references to market share, market data, industry statistics and industry forecasts in this document consist of estimatescompiled by industry professionals, competitors, organizations or analysts, of publicly available information or of the Group’s
own assessment of its sales and markets. Rankings are based on sales unless otherwise stated.

Non-IFRS Financial Measures

Certain parts of this document contain non-IFRS financial measures and ratios, such as comparable sales growth, adjusted
gross margin, EBITA, adjusted EBITA, and free cash flow, and other related ratios, which are not recognized measures offinancial performance or liquidity under IFRS. The non-IFRS financial measures presented are measures used by management
to monitor the underlying performance of the Group’s business and operations and, accordingly, they have not been audited
or reviewed. Not all companies calculate non-IFRS financial measures in the same manner or on a consistent basis and thesemeasures and ratios may not be comparable to measures used by other companies under the same or similar names. A
reconciliation of these non-IFRS financial measures to the most directly comparable IFRS financial measures is contained inthis document. For further information on non-IFRS financial measures, see “Chapter 18 Reconciliation of non-IFRS
measures” in the Annual Report 2019.

Presentation

All amounts are in millions of euros unless otherwise stated. Due to rounding, amounts may not add up to totals provided.
All reported data are unaudited. Unless otherwise indicated, financial information has been prepared in accordance with theaccounting policies as stated in the Annual Report 2019 and semi-annual report 2020.

Change in reporting segments

Effective Q2 2020, to further adapt to the industry transition and strengthen customer centricity, Signify changed theorganizational structure, which included changing the previously four business groups (BG’s) to three divisions.

••

Division Digital Solutions (formerly BG Professional, including Cooper Lighting Solutions) offers luminaires, lighting
systems and services for the Internet of Things to the customers in the professional segment;
Division Digital Products (combines BG LED and BG Home). This division offers LED lamps, LED luminaires andconnected products, including Hue and Wiz, and LED electronics to professional customers, OEM partners andconsumers. By bringing together its entire consumer LED portfolio, Signify can better manage this lighting category for
its channel partners; and10•Division Conventional Products (formerly BG Lamps) continues to focus on conventional lamps and electronics for
professional customers, OEM partners and consumers. It is organized separately to bring a clear distinction between
conventional and digital offerings.

In line with this change, effective Q2 2020, Signify's operating segments are Digital Solutions, Digital Products, andConventional Products. The segments are organized based on the nature of the products and services. ‘Other’ represents
amounts not allocated to the operating segments and includes certain costs related to central R&D activities to drive
innovation as well as group enabling functions.

Market Abuse Regulation

This press release contains information within the meaning of Article 7(1) of the EU Market Abuse Regulation.

11

Appendix A – Financial statement information
A. Condensed consolidated statement of income
In millions of EUR unless otherwise stated

Sales
Cost of sales
Gross margin
Selling, general and administrative expenses
Research and development expenses
Other business income
Other business expenses
Income from operations
Financial income
Financial expenses
Results relating to investments in associates
Income before taxes
Income tax expense
Net income
Attribution of net income for the period:
Net income (loss) attributable to shareholders of Signify N.V.
Net income (loss) attributable to non-controlling interests
Earnings per ordinary share attributable to shareholders
calculation (in thousands):
Basic
Diluted
Net income attributable to shareholders per ordinary share in EUR:
Basic
DilutedAmounts may not add up due to rounding

Fourth quarter
2019
2020
1,750
1,878
(1,121)(1,148)
629
730
(418)
(485)
(76)
(91)
5
3
(1)
(2)
138
155
5
5
(16)
(17)
0
0
127
143
(29)
(6)
98
137

January to December
2019
2020
6,247
6,502
(3,940)(4,004)2,307
2,499(1,637)(1,781)
(283)
(307)
22
12
(8)
(7)
401
416
17
18
(60)
(72)
1
0
360
362
(93)
(27)
267
335

93
5

132
5

262
5

325
9

125,937
127,594

125,577
129,247

126,028
127,626

126,223
129,692

0.74
0.73

1.05
1.02

2.08
2.06

2.58
2.51

12

B. Condensed consolidated statement of comprehensive income
In millions of EUR

Net income (loss)
Pensions and other post-employment plans:Remeasurements
Income tax effect on remeasurements
Total of items that will not be reclassified to profit or loss

Fourth quarter
2019
2020
98
137

January to December
2019
2020
267
335

9
(3)
6

17
(1)
16

6
(3)
4

11
(1)
11

(53)
—

(143)
—

38
(1)

(395)
—

Currency translation differences:
Net current period change, before tax
Income tax effect
Net investment hedge
Net current period change, before tax
Income tax effectCash flow hedges:
Net current period change, before tax
Income tax effectTotal of items that are or may be reclassified to profit or loss

—
—

20
1

—
—

42
1

7
(1)
(47)

7
(2)
(118)

1
1
39

31
(7)
(328)

Other comprehensive income (loss)
Total comprehensive income (loss)

(41)
57

(102)
35

42
309

(318)
17

Total comprehensive income (loss) attributable to:Shareholders of Signify N.V.
Non-controlling interests

55
3

34
1

304
6

16
1

Amounts may not add up due to rounding.

13

C. Condensed consolidated statement of financial position
In millions of EUR

December 31,
2019

December 31,
2020

Non-current assets
Property, plant and equipment
Goodwill
Intangible assets, other than goodwill
Investments in associates
Financial assets
Deferred tax assets
Other assets
Total non-current assets

644
1,943
443
14
49
384
64
3,541

708
2,251
775
12
55
473
60
4,334

Current assets
Inventories
Financial assets
Other assets
Derivative financial assets
Income tax receivable
Trade and other receivables
Cash and cash equivalents
Assets classified as held for sale
Total current assets
Total assets

874
—
161
16
48
1,223
847
4
3,174
6,715

885
—
171
104
39
1,140
1,033
3
3,376
7,710

EquityShareholders’ equity
Non-controlling interests
Total equity

2,181
142
2,324

2,196
124
2,321

Non-current liabilities
Debt
Post-employment benefits
Provisions
Deferred tax liabilities
Income tax payable
Other liabilities
Total non-current liabilities

1,369
437
216
28
52
135
2,236

2,221
390
224
22
108
159
3,123

Current liabilities
Debt, including bank overdrafts
Derivative financial liabilities
Income tax payable
Trade and other payables
Provisions
Other liabilities
Liabilities from assets classified as held for sale
Total current liabilities
Total liabilities and total equity

96
20
22
1,684
149
183
2
2,155
6,715

86
44
20
1,731
172
213
—
2,266
7,710

Amounts may not add up due to rounding.

14

D. Condensed consolidated statement of cash flows
In millions of EUR
Fourth quarter

January to December

2019

2020

2019

2020

Net income (loss)

98

137

267

335

Adjustments to reconcile net income (loss) to net cash provided by operating activities:

182

183

586

606

• Depreciation, amortization and impairment of non-financial assets• Impairment (reversal) of goodwill, other non-current financial assets andinvestments in associates

77

86

288

332

—

—

—

—

• Net gain on sale of assets

(3)

—

(13)

(1)

• Net interest expense on debt, borrowings and other liabilities

4

7

15

31

• Income tax expense

29

6

93

27

• Additions to (releases of) provisions

59

70

154

152

• Additions to (releases of) post-employment benefits

6

4

24

20

• Other items

10

9

25

46

Decrease (increase) in working capital:

152

119

110

239

• Decrease (increase) in trade and other receivables

42

(4)

83

211

• Decrease (increase) in inventories

170

96

35

44

• Increase (decrease) in trade and other payables

(17)

28

21

(50)

• Increase (decrease) in other current assets and liabilities

(44)

(1)

(30)

35

Increase (decrease) in other non-current assets and liabilities

1

9

(11)

15

Utilizations of provisions

(56)

(48)

(189)

(162)

Utilizations of post-employment benefits

(13)

(11)

(57)

(35)

Net interest and financing costs paid

(4)

(6)

(17)

(33)

Income taxes paid

(26)

(23)

(90)

(73)

Net cash provided by (used for) operating activities

334

359

599

891

Net capital expenditures:

(26)

(27)

(70)

(75)

• Additions of intangible assets

(7)

(9)

(29)

(32)

• Capital expenditures on property, plant and equipment

(22)

(23)

(58)

(67)

• Proceeds from disposal of property, plant and equipment

4

4

16

25

Cash flows from operating activities

Cash flows from investing activities

Net proceeds from (cash used for) derivatives and other financial assets
Purchases of businesses, net of cash acquired

6

26

5

(4)

(71)

(17)

(95)

(1,303)

Proceeds from sale of businesses, net of cash disposed of

10

—

15

2

Net cash provided by (used for) investing activities

(81)

(19)

(145)

(1,379)Dividend paid

—

(17)

(165)

(17)

Proceeds from issuance of debt

—

7

12

3,744

Repayment of debt

(31)

(34)

(127)

(2,932)

Cash flows from financing activities

1

Purchase of treasury shares

—

—

(6)

(38)

Net cash provided by (used for) financing activities

(31)

(44)

(286)

757

Net cash flows

223

297

168

269

Effect of changes in exchange rates on cash and cash equivalents and bank overdrafts

(14)

(23)

7

(80)

Cash and cash equivalents and bank overdrafts at the beginning of the period1

631

756

664

840

Cash and cash equivalents and bank overdrafts at the end of the period2

840

1,030

840

1,030

For Q4 2020 and Q4 2019, included bank overdrafts of EUR 6 million and EUR 7 million, respectively. For January to December of 2020 and 2019, included bankoverdrafts of EUR 7 million and EUR 12 million, respectively.
Included bank overdrafts of EUR 3 million and EUR 7 million as at December 31, 2020 and 2019, respectively.
Amounts may not add up due to rounding.

2

15Appendix B - Reconciliation of non-IFRS financial measures
Change in reporting segments
As indicated in the Important Information section, Signify changed its segment reporting in Q2 2020. The mainchange relates to combining BG LED and BG Home into division Digital Products. The comparatives 2019 in
below tables have been updated to reflect the updated segment structure.
Sales growth composition per business in %Comparable
growth2020 vs 2019
Digital Solutions
Digital Products
Conventional Products
Total(10.2)
2.5(11.6)(5.9)

Comparable
growth2020 vs 2019
Digital Solutions
Digital Products
Conventional Products
Total(14.4)(8.3)(16.5)(12.7)

Fourth quarter
Currency
Consolidation andeffectsother changes
(4.8)
(4.8)
(4.9)
(4.8)

Nominalgrowth

42.3
(0.6)
(0.2)
18.0

27.3
(2.8)
(16.7)
7.4

January to December
Currency
Consolidation andeffectsother changes

Nominalgrowth

(2.1)
(2.3)
(2.0)
(2.2)

39.3
5.5
(0.2)
19.0

22.8
(5.1)
(18.7)
4.1

Fourth quarter
Currency
Consolidation andeffectsother changes

NominalgrowthSales growth composition per market in %Comparable
growth2020 vs 2019
EuropeAmericasRest of the World
Global businesses
Total

(1.8)
(11.5)
(3.9)
0.3
(5.9)
Comparable
growth2020 vs 2019
EuropeAmericasRest of the World
Global businesses
Total

(6.8)
(15.9)(16.3)(7.3)(12.7)In 2020 Americas includes Cooper Lighting and Global businesses includes Klite
Amounts may not add up due to rounding.

(1.8)
(6.8)
(6.1)
(2.6)
(4.8)

0.2
63.2
0.2
0.7
18.0

(3.5)
44.9
(9.9)
(1.6)
7.4

January to December
Currency
Consolidation andeffectsother changes

Nominalgrowth

(1.0)
(2.7)
(3.0)
(1.6)
(2.2)

(0.2)
56.8
0.1
38.8
19.0

(7.9)
38.1
(19.1)
29.8
4.1

16

Adjusted EBITA to Income from operations (or EBIT) in millions of EUR

1

1

Signify

DigitalSolutions

Digital Conventional
Products
Products

Fourth quarter 2020
Adjusted EBITA
Restructuring
Acquisition-related charges
Incidental items
EBITA
Amortization1
Income from operations (or EBIT)

251
(43)
(16)
(6)
185
(30)
155

105
(12)
(16)
(3)
75
(28)
47

128
(3)
—
(2)
122
(2)
121

46
(14)
—
(2)
30
—
30

(28)
(15)
—
1
(42)
0
(43)

Fourth quarter 2019
Adjusted EBITA
Restructuring
Acquisition-related charges
Incidental items
EBITA
Amortization1
Income from operations (or EBIT)

232
(42)
(11)
(15)
164
(26)
138

92
(6)
(8)
(6)
71
(23)
49

115
(3)
(3)
(6)
104
(3)
101

50
(31)
—
(3)
17
—
17

(26)
(2)
—
—
(28)
—
(28)

Digital Conventional
Products
Products

Other

Other

Amortization and impairments of acquisition related intangible assets and goodwill.

Signify

DigitalSolutionsJanuary to December 2020
Adjusted EBITA
Restructuring
Acquisition-related charges
Incidental items
EBITA
Amortization1
Income from operations (or EBIT)

695
(83)
(63)
(13)
536
(120)
416

330
(30)
(62)
(8)
230
(111)
119

295
(10)
(1)
(6)
277
(8)
269

170
(23)
—
3
149
—
149

(100)
(19)
—
(1)
(120)
(1)
(122)

January to December 2019
Adjusted EBITA
Restructuring
Acquisition-related charges
Incidental items
EBITA
Amortization1
Income from operations (or EBIT)

648
(99)
(13)
(36)
500
(99)
401

265
(22)
(9)
(11)
222
(90)
133

260
(19)
(3)
(16)
222
(7)
215

222
(44)
—
(10)
168
—
168

(100)
(14)
—
1
(112)
(2)
(114)

Amortization and impairments of acquisition related intangible assets and goodwill.

Amounts may not add up due to rounding.

17

Fourth quarter 2020 Income from operations to Adjusted EBITA in millions of EUR

Reported Restructuring
Fourth quarter 2020
Sales
Cost of sales
Gross margin
Selling, general and administrative
expenses
Research and development expenses
Indirect costs1
Impairment of goodwill
Other business income
Other business expenses
Income from operations
Amortization
Income from operations excluding
amortization (EBITA)
Fourth quarter 2019
Sales
Cost of sales
Gross margin
Selling, general and administrative
expenses
Research and development expenses
Indirect costs
Impairment of goodwill
Other business income
Other business expenses
Income from operations
Amortization
Income from operations excluding
amortization (EBITA)
1

2

Acquisition
relatedcharges

Incidental
items2Adjusted

1,878(1,148)
730

—
18
18

—
4
4

—
2
2

1,878
(1,124)
755

(485)
(91)
(577)
—
3
(2)
155
(30)

9
15
25
—
—
—
43
—

13
—
13
—
(1)
—
16
—

5
—
5
—
(1)
—
6
—

(458)
(76)
(534)
—
1
(2)
220
(30)

185

43

16

6

251

1,750
(1,121)
629

—
31
31

—
2
2

—
(1)
(1)

1,750
(1,089)
661

(418)
(76)
(494)
—
5
(1)
138
(26)

4
8
11
—
—
—
42
—

9
—
9
—
—
—
11
—

17
—
17
—
(1)
—
15
—

(389)
(68)
(457)
—
3
(1)
206
(26)

164

42

11

15

232

Adj. indirect costs included a positive currency impact of EUR 17 million and changes in scope of EUR 96 million in Q4 20. Adjusting for the currency andchanges in scope, indirect costs reduced by EUR 3 million on a comparable basis. This indirect costs reduction includes provisions for the reimbursement of
employee contributions.
Incidental items are non-recurring by nature and relate to separation, company name change, transformation, environmental provision for inactive sites
and discounting effect of long-term provisions.

Amounts may not add up due to rounding.

18

January to December 2020 Income from operations to Adjusted EBITA in millions of EUR

Reported Restructuring
January to December 2020
Sales
Cost of sales
Gross margin
Selling, general and administrative
expenses
Research and development expenses
Indirect costs1
Impairment of goodwill
Other business income
Other business expenses
Income from operations
Amortization
Income from operations excluding
amortization (EBITA)
January to December 2019
Sales
Cost of sales
Gross margin
Selling, general and administrative
expenses
Research and development expenses
Indirect costs
Impairment of goodwill
Other business income
Other business expenses
Income from operations
Amortization
Income from operations excluding
amortization (EBITA)

1.
2

Acquisition
relatedcharges

Incidental
items2Adjusted

6,502(4,004)
2,499

—
41
41

—
21
21

—
(4)
(4)

6,502
(3,946)
2,556(1,781)(307)(2,088)
—
12
(7)
416
(120)

23
20
42
—
—
—
83
—

44
1
45
—
(2)
—
63
—

20
—
20
—
(2)
—
13
—

(1,695)(287)(1,982)
—
8
(7)
575
(120)

536

83

63

13

695

6,247
(3,940)
2,307

—
50
50

—
2
2

—
1
1

6,247
(3,887)2,360(1,637)(283)(1,920)
—
22
(8)
401
(99)

36
13
50
—
—
—
99
—

11
—
11
—
—
—
13
—

47
—
47
—
(13)
1
36
—

(1,544)(270)(1,813)
—
9
(7)
549
(99)

500

99

13

36

648

Adj. indirect costs included a positive currency impact of EUR 26 million and changes in scope of EUR 361 million in 2020. Adjusting for the currency andchanges in scope, indirect costs reduced by EUR 166 million on a comparable basis.
Incidental items are non-recurring by nature and relate to separation, company name change, transformation, environmental provision for inactive sites anddiscounting effect of long-term provisions.

Amounts may not add up due to rounding.

19Appendix C – Financial glossary
Acquisition-related charges
Costs that are directly triggered by the acquisitionof a company, such as transaction costs, purchaseaccounting related costs and integration-related
expenses
Adjusted EBITAEBITA excluding restructuring costs, acquisitionrelated charges and other incidental charges
Adjusted EBITA margin
Adjusted EBITA divided by sales to third parties(excluding intersegment)
Adjusted gross margin
Gross margin, excluding restructuring costs,
acquisition-related charges and other incidental
items attributable to cost of sales
Adjusted indirect costs
Indirect costs, excluding restructuring costs,
acquisition-related charges and other incidental
items attributable to indirect costs
Adjusted R&D expenses
Research and development expenses, excluding
restructuring costs, acquisition-related charges
and other incidental items attributable to researchand development expenses
Adjusted SG&A expenses
Selling, general and administrative expenses,
excluding restructuring costs, acquisition-related
charges and other incidental items attributable toselling, general and administrative expenses
Changes in scope
Consolidation effects related to acquisitions(mainly Cooper Lighting)Comparable sales growth (CSG)
The period-on-period growth in sales excluding theeffects of currency movements and changes in
consolidation and other changes
EBIT
Income from operations
EBITA
Income from operations excluding amortizationand impairment of acquisition related intangible
assets and goodwill

EBITDA
Income from operations excluding depreciation,amortization and impairment of non-financial
assets
Effects of changes in consolidation and otherchangesIn the event a business is acquired (or divested),
the impact of the consolidation (or deconsolidation) on the Group’s figures is included(or excluded) in the calculation of the comparable
sales growth figures. Other changes include
regulatory changes and changes originating fromnew accounting standards
Effects of currency movements
Calculated by translating the foreign currency
financials of the previous period and the current
period into euros at the same average exchange
rates
Employees
Employees of Signify at period end expressed on afull-time equivalent (FTE) basis
Free cash flow
Net cash provided by operating activities minus
net capital expenditures. Free cash flow includes
interest paid and income taxes paid
Gross margin
Sales minus cost of sales
Incidental charges
Any item with an income statement impact (loss orgain) that is deemed to be both significant and notpart of normal business activity. Other incidental
items may extend over several quarters within thesame financial year
Indirect costs
The sum of selling, general and administrative
expenses and R&D expenses
Net capital expenditures
Additions of intangible assets, capital expenditureson property, plant and equipment and proceedsfrom disposal of property, plant and equipment
Net debt
Short-term debt, long-term debt minus cash andcash equivalents

20

Net leverage ratio
The ratio of consolidated reported net debt toconsolidated reported EBITDA for the purpose of
calculating the financial covenant
R&D expenses
Research and development expenses
Restructuring costs
The estimated costs of initiated reorganizations,the most significant of which have been approvedby the group, and which generally involve therealignment of certain parts of the industrial andcommercial organization
SG&A expenses
Selling, general and administrative expenses
Working capital
The sum of inventories, trade and otherreceivables, other current assets, derivative
financial assets minus the sum of trade and otherpayables, derivative financial liabilities and othercurrent liabilities