Q4 2022 results
January 27, 2023

Important information
Forward-looking statements
This release contains forward-looking statements that reflect the intentions, beliefs or current expectations and projections of Signify, 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 number of important factors could cause actual results or outcomes to differ materially from those expressed inany forward-looking statement as a result of risks and uncertainties. Such risks, uncertainties and other important factors include but are not limited to: adverse economic and political developments, in particular the impacts of theRussia-Ukraine conflict, the energy crisis in Europe, the impacts of COVID-19, supply chain constraints, component shortages, cost inflation, rapid technological change, competition in the general lighting market, development oflighting systems and services, successful implementation of business transformation programs, impact of acquisitions and other transactions, reputational and adverse effects on business due to activities in Environment, Health &Safety, compliance risks, ability to attract and retain talented personnel, adverse currency effects, pension liabilities, and exposure to international tax laws.
Additional risks currently not known to the Group or that the Group has not considered material as of the date of this document could also prove to be important and may have a material adverse effect on the business, results ofoperations, 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 forwardlooking 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 estimates compiled 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 Statements
Certain parts of this document contain non-IFRS financial measures and ratios, such as comparable sales growth, adjusted gross margin, EBITA, adjusted EBITA, EBITDA, adjusted EBITDA and free cash flow, and other related ratios,
which are not recognized measures of financial 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 businessand 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 these measures 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 in this document. For further
information on non-IFRS financial measures, see “Chapter 18 Reconciliation of non-IFRS measures” in the Annual Report 2021.
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 inaccordance with the accounting policies as stated in the Annual Report 2021 and the Semi-Annual Report 2022.
Market Abuse Regulation
This presentation contains information within the meaning of Article 7(1) of the EU Market Abuse Regulation.

2

Content2022 Highlights - Eric Rondolat
Q4 22 Performance - Javier van Engelen

Full Year 22 Performance - Eric Rondolat
Outlook & closing remarks - Eric Rondolat
Q&A

3

Need to update
photoFull year 2022 highlights%4•Connected lighting sales grew to EUR 1.6 billion•Our growth platforms grew to EUR 0.4 billion•Digital Solutions and Digital Products representing more than 85% of sales, profit and cash•

Continued progress in the second year of our Brighter Lives, Better World 2025 sustainability program•

Comparable sales growth of 1.2%•

Adj. EBITA margin of 10.1%•

Free Cash Flow at 5.9% of sales•

Net debt/EBITDA ratio lowered to 1.3x•

Proposal to pay cash dividend of EUR 1.50 per share over 2022

Content2022 Highlights - Eric Rondolat
Q4 22 Performance - Javier van Engelen

Full Year 22 Performance - Eric Rondolat
Outlook & closing remarks - Eric Rondolat
Q&A5

Need to update
photoSignify reported Q4 22 sales of EUR 2.0 billion, CSG of -8.8% and an
adj. EBITA margin of 10.2%
Sales (in EURm) & comparable sales growth (in %)
CSG

4.5%

-8.8%

6.4%

5.1%

4.3%

2,008

1,978

1,788

1,836

1,912

Q4 21

Q4 22

Q1 22

Q2 22

Q3 22

Key observations for Q4 22•

114 million connected light points (Q3 22: 109 million)•

LED-based sales were 82% of total sales•

Nominal sales decline of 1.5% to EUR 1,978m•Comparable sales decline of 8.8%

•Adjusted EBITA margin decline of 300 bps to 10.2%

Adjusted EBITA (in EURm & as % of sales)%

613.2%

10.2%

10.5%

9.5%

10.4%

•Volume decline leading to under-absorption offixed costs•

Continued adverse FX impact•

Price increases fully covering higher COGS

265

202

187174199•

Net income of EUR 86m (Q4 21: EUR 170m)

Q4 21

Q4 22

Q1 22

Q2 22

Q3 22

•

Free Cash Flow of EUR 364m (Q4 21: EUR 257m)

Digital Solutions reported a CSG of -5.8% and an adj. EBITA margin of 9.7%
Sales (in EURm) & comparable sales growth (in %)
CSG

11.2%

-5.8%

16.9%

11.6%

12.0%

1,045

1,105981

1,042

1,103

Q4 21

Q4 22

Q1 22

Q2 22

Q3 22

Key observations for Q4 22•

Comparable sales decline of 5.8%•

High base of comparison•

Chinese market impacted by COVID-relateddisruptions•

Weakening of the indoor professional business

Adjusted EBITA (in EURm & as % of sales)
•%

7

14.1%

9.7%

9.7%

9.5%

11.2%

1471079598124

Q4 21

Q4 22

Q1 22

Q2 22

Q3 22Adjusted EBITA margin decreased by 440 bps to 9.7%
•High base of comparison•

Under-absorption of fixed costs and an adverse
currency impact

Digital Solutions highlights
Helping NSG Group achieve
their sustainability andsmart factory goals

Switching Den Haan
Greenhouses to LED
lighting

Equipping a Berlin schoolwith Trulifi technology

Helping the city of Chietitransition to connected LEDlighting• NSG Group installed a suite ofsmart lighting solutions fromSignify• Including cutting edge
connected lighting systems
via Signify’s Lighting-as-aService model, innovative 3Dprinted luminaires, Trulifi andInteract• Upgraded the lighting at twoUK sites with ongoing work
across several sites in the UK• Installed Philips GreenPowerLED interlighting andtoplighting linear at Canadian
grower Den HaanGreenhouses• Decision driven by highelectricity prices, insufficientnatural light during winterand year-round demand• Production increased by asmuch as 40%• Equipped nine rooms of
Berlin’s Freie Waldorfschulewith custom-built
transceivers and USB accesskeys• Trulifi technology enables fastand secure data transmission
through light waves• The school joins a growing
number of educational
facilities adopting Trulifi• CEIE POWER SpA is replacing
the city’s street lighting,installing Interact City and6,800 Philips LED fixtures• Interact City enables real time
management of luminaires,
data collection and analysis• Provides energy savings of60%• Incremental benefits such as
operational efficiency

8

Digital Products reported a CSG of -12.9% and an adj. EBITA margin of 14.1%
Sales (in EURm) & comparable sales growth (in %)
CSG

1.6%

-12.9%

0.2%

2.6%

-2.5%

737661601

598609

Q4 21

Q4 22Q1 22

Q2 22

Q3 22

Key observations for Q4 22•

Comparable sales decline of 12.9%•

Lower consumer sales•

COVID-related disruptions in China impacting Klite•

Lower than expected growth in OEM channel

Adjusted EBITA (in EURm & as % of sales)•%

915.5%

14.1%

12.8%

10.6%

10.5%

114

93776364

Q4 21

Q4 22

Q1 22

Q2 22

Q3 22

Adjusted EBITA margin declined by 140 bps to 14.1%•

Resilient gross margin as pricing offsets cost increases•

Lower volumes leading to fixed cost under absorptionDigital Products highlights
Winning the prestigious
Gold IDEA 2022 designaward

Offering a personalized
lighting experience during
the holiday season

Certifying all WiZ products
to work with Matter

Addressing the retrofit
tunnel lighting market inChina• The sustainable 3D-printed
Coastal Breeze pendant lamp
wins the prestigious GoldIDEA 2022 design award• It also received an honorable
mention in Fast Company’s
Innovation by Design Awards• The collection is 3D printed
using discarded fishing nets
for cleaner oceans and a low
carbon footprint• Philips Hue Festavia string
lights create the perfectambiance inside your home
for the holidays and special
occasions• Allows users to dim andbrighten lights, change color,
create a gradient light effect,
set timers and schedules andmore• Added the Sparkle effect andScattered style• WiZ is among the first IoT
brands to support the Matterstandard• All WiZ products,
manufactured since Q2 21,
are being certified to workwith Matter• Allows users to control theirlights with any Mattercompatible ecosystem• Advanced functionalities stillavailable in the WiZ app• Launched a new range of10

IP66 low power Outdoordrivers• The new range addresses thefast growing retrofit Tunnel
market in China• A breakthrough in size
reduces material usage bymore than 20%, thereby
positively contributing tosustainability

Conventional Products reported a CSG of -11.4% and an adj. EBITA of 12.9%
Sales (in EURm) & comparable sales growth (in %)CSG-11.4%-11.4%-15.1%-13.8%-9.5%

Key observations for Q4 22•

Comparable sales decline of 11.4%
•219

203

201

193

195

Q4 21Q4 22

Q1 22

Q2 22

Q3 22

Price increases partially compensated volumedeclines

Adjusted EBITA (in EURm & as % of sales)•%

1116.9%

12.9%

16.0%

15.5%

14.2%

3726

3230

28

Q4 21

Q4 22

Q1 22

Q2 22

Q3 22

Adjusted EBITA margin decreased to 12.9%•

Indirect cost savings not fully offsetting combined
impact of volume decline and temporary adverse FX
impact•Price increases largely compensated higher input andenergy costs•

Negative impact from one-off effects

Adjusted EBITA margin decreased to 10.2%, mainly due to lower volume andan under-absorption of fixed costs
In EURm / as % of sales-300 bps

13.2%
265

10.2%

EUR +16m-16-103

69-45

47

COGS

Indirect Costs

202-8-8

Q4 21

12Volume

Mix

PriceCurrency

Other

Q4 22

Working capital increased year on year, as payments for the 2021 inventorybuild-up were settled, partly offset by lower receivables and inventories
In EURm / as % of sales

7.4%1+380 bps

3.6%-33564

Other working
capital items

Q4 22475
250-49-81

Q4 21

13Inventories

Trade & other receivables

1Includes sales of Fluence and Pierlite on a 12-month pro-forma basis.

Trade & other payables

Leverage ratio improved from 1.5x at the end of Q3 22 to 1.3x at the end ofQ4 22 driven by a strong free cash flow generation
In EURm
FCF: EUR 364m

1,685-223

1,356-247
36Net
leverage

41

1435

1.5x

Net debt
end of Q3 221415

EBITDA

Change inworking
capital

Net capex

Change inprovisions

1Other includes new lease liabilities, derivatives, and FX effect on cash, cash equivalents and debt.

Interest & Tax

OtherFCF items

Other 11.3x

1.0x

Net debt
end of Q4 22

Excl. Fluence& Pierlite

Content
2022 Highlights - Eric Rondolat
Q4 22 Performance - Javier van Engelen

Full Year 22 Performance - Eric Rondolat
Outlook & closing remarks - Eric Rondolat
Q&A

15

Need to update
photoDigital Solutions and Digital Products further increased their contribution
to sales, Adj. EBITA and Free Cash FlowSales contribution (in EUR m)

Adj. EBITA contribution (in EUR m)

Free Cash Flow contribution (in EUR m)

2,469
2,452

339

89%187%1
3,524

4,231

82%1397383

297

85%186%1424

170

364

90%1
321

16861

793

161

116

136

5620212022

20212022

2021

2022

1 Excludes ‘Other’.

Sales of Connected lighting and Growth platforms grew to EUR 1.9b•

Sales contribution (in EUR m)
1.7

1.9

•

1.4
1.1

17

1.6

1.4

0.3

0.3

0.4

2020

2021

2022

Growth Platforms

Connected lighting and growth platforms sales increased toEUR 1.9 billion in 2022

1

Connected Lighting

1 Growth platforms include Fluence from May 2022.

•Connected lighting grew to EUR 1.6 billion:•Strong professional demand for our global connectedbrands•

Slowdown in consumer connected sales

The growth platforms grew to EUR 0.4 billion:•Accelerated transition from conventional to LED
horticulture•

Acquisition of FluenceAdjusted EBITA margin of all divisions impacted by adverse currency impact;
fixed cost under-absorption in Digital Products and Conventional Products
Digital Solutions
7.8%

3.4%

CSG%

Digital Products

Conventional Products

8.8%

-3.8%

Adj. EBITA%

FY 21
11.3%

2021

FY 22-130bps

13.8%

10.0%

2022

• Negative currency effect• Partly offset by operating leverage

18FY 212021

FY 22-180bps

12.0%

2022

• Negative currency effect• Lower volumes• Adverse sales mix-6.9%-12.6%

FY 21
18.7%

2021

FY 22-410bps

14.6%

2022

• Negative currency effect• Higher input and energy costs• Partly offset by price increases
and indirect cost savings

Brighter Lives, Better World 2025 – Q4 2022 results

Brighter Lives

Better World

Doubling our positive impact on the environment and society

Q4 2022
Result2025
TargetClimate action

Carbon reduction over value chain
against Paris Agreement

0On track

324 MT

Circular economy

Circular revenues

16%

29%

32%

Food availability
Safety & security
Health & well-being

Brighter lives revenues

16%

27%

32%

Great place to work

Women in leadership positions

17%

28%

34%

A list for climate andsupply chain
192019Baseline

DJSI World Index andtop 1% in our industry

EcoVadis Platinum
Medal and top 1%On track
Off trackSignify proposes a cash dividend of EUR 1.50 per share for 2022
Key observations•

Proposed dividend1 of EUR 1.50 per share, a year-on-yearincrease of 5 cents per share•

Dividend yield of 4.8% over the year-end share price ofEUR 31.38•

Pay an increasing annual cash dividend per share year onyear•

Signify remains committed to maintaining a robust capital
structure and an investment grade credit rating•

Continue to invest in R&D and other organic growth
opportunities, while pursuing selective M&A opportunities
in line with strategic priorities

20

1.50
1.45
1.40
1.35
1.30

Total cash dividend of EUR 188m

Capital allocation policy•

Dividend per share since IPO (in EUR)

1.25

1.10

FY16

1 Dividend proposals are subject to approval at the AGM to be held on May 16, 2023.
2The extraordinary dividend of EUR 1.35 per share was related to the 2019 dividend proposal, which was withdrawn.

FY17FY18Ext Div.

2FY20

FY21

FY22Content2022 Highlights - Eric Rondolat
Q4 22 Performance - Javier van Engelen

Full Year 22 Performance - Eric Rondolat
Outlook & closing remarks - Eric Rondolat
Q&A

21

Need to update
photoOutlook

22•

Signify continues to aim for growth, both organic and through selected acquisitions. Given
the volatility of the current macro environment, Signify does not provide a comparable
sales growth guidance for 2023. The company will focus its efforts on improving its
Adjusted EBITA margin and free cash flow.

•Signify expects for 2023:•

An Adjusted EBITA margin in the range of 10.5-11.5%•Free cash flow between 6-8% of sales

Q&A
Need to update
photoCurrency movements had a positive impact on sales and a negative impact
on Adjusted EBITA
Q4 22 Sales FX Footprint (% of total)
OtherCurrencies;29%

Key observations

EUR; 29%

CNY; 6%

USD; 36%
EUR24USDCNY

Other Currencies•Currency movements benefited Sales and negatively
impacted Adjusted EBITA•

Sales impact of +4.7%, mainly from US dollar
appreciation•

Adjusted EBITA impact of EUR -16m, and -150 bps on
the Adjusted EBITA margin

Net income decreased to EUR 86m, mainly driven by lower EBIT and higher
financial expenses
Key observations

From Adjusted EBITA to net income (in EURm)
Adjusted EBITA

Q4 21
265

Q4 22202- Restructuring-11-47- Acquisition-related charges-13-4-515EBITA

237

166

Amortization-32-29EBIT

205

137-4-29-31-2200170

86

1 - Other incidental items

2 Net financial income / expenses

Income tax expense
Results from investments in associates
Net income2512

Non-recurring by nature and relate to among others:• Impairment and other non-cash charges related tooperations in Russia and Ukraine• Separation• Transformation• Net real estate gains• Legal cases• Environmental provision for inactive sites• The discounting effect of long-term provisions
Higher financial expenses were mainly impacted by:• The Virtual Power Purchase Agreements• Higher interest costs• Recognition of a monetary loss due to hyperinflationin Turkey

Free cash flow of EUR 364m, mainly driven by strong improvement ofworking capital, partly offset by lower income from operations
Key observations

Free cash flow (in EURm)
Q4 21
205

Q4 22137

Depreciation and amortization

77

86

Additions to (releases of) provisions

30

41

Utilizations of provisions

-65

-56

Change in working capital
Net interest and financing costs
received (paid)
Income taxes paid

37247

1-5-14-36

Net capex-29-36

Other

16-14

Free cash flow

257

364

As % of sales

12.8%

18.4%

Income from operations

26••

Free cash flow of EUR 364m•Strong improvement of working capital•Lower income from operations

Restructuring pay-out of EUR 11m (Q4 21: EUR 26m)