Press Release
April 26, 2024
Signify reports first quarter sales of EUR 1.5 billion, operational profitability of 8.3% and afree cash flow of EUR 80 million
First quarter 20241• Signify's installed base of connected light points increased from 124 million in Q4 23 to 126 million in Q1 24• Achieved reasonable assurance on full Brighter Lives, Better World 2025 program, including scope 3
emissions• Sales of EUR 1,468 million; nominal sales decline of -12.5% and CSG of -10.1%• LED-based sales represented 87% of total sales (Q1 23: 82%)
• Adj. EBITA margin of 8.3% (Q1 23: 8.9%)• Net income of EUR 44 million (Q1 23: EUR 28 million)• Free cash flow of EUR 80 million (Q1 23: EUR 51 million)
Eindhoven, the Netherlands – Signify (Euronext: LIGHT), the world leader in lighting, today announced thecompany’s first quarter 2024 results.
“In the first quarter, we saw improving dynamics in our US Professional, OEM and Consumer businesses, while
the market in China remained soft and the European Professional business was substantially below our
expectation. Our operating margin was resilient, thanks to gross margin expansion as price dynamics normalize,
compensated by bill of material improvements. We also began to see the positive impact of our cost reduction
program and strong free cash flow generation, as we continued to improve our working capital,” said Eric
Rondolat, CEO of Signify.
“On April 1, we successfully implemented our new organizational structure. The new model brings enhanced
focus and accountability to our business from an end-customer perspective, and has earned strong support
internally and externally. As the year progresses, we anticipate a sequential comparable sales growth
improvement, driven by momentum in the Americas and our OEM and Consumer businesses. The continued
effort to manage the gross margin, combined with the implementation of our cost reduction program, will
deliver a positive effect on our operating margin in the quarters ahead, in line with our guidance for the full
year.”¹ This press release contains certain non-IFRS financial measures and ratios, such as comparable sales growth, EBITA, adjusted EBITA and free cash flow, and related ratios, which are notrecognized measures of financial performance or liquidity under IFRS. For a reconciliation of these non-IFRS financial measures to the most directly comparable IFRS financial measures, seeappendix B, Reconciliation of non-IFRS financial measures, of this press release.

Brighter Lives, Better World 2025
The first quarter of 2024 marks the start of Signify's fourth year of its Brighter Lives, Better World 2025
sustainability program commitments that contribute to doubling its positive impact on the environment andsociety.
Double the pace of the Paris Agreement
Signify is ahead of schedule to achieve its 2025 target to reduce emissions across the full value chain by 40%
against its 2019 baseline - double the pace required by the Paris Agreement 1.5 degree scenario. In addition, thecompany has received approval from the Science Based Targets initiative (SBTi) for its ambitious 2040 Net Zerotarget with a 90% absolute reduction of scope 1, 2 and 3 emissions.
Double Circular revenues
Circular revenues increased to 34%, surpassing the 2025 target of 32%. The main contribution was fromserviceable luminaires, with a strong performance from both consumer and professional.
Double Brighter lives revenues
Brighter lives revenues remained at 31%, on track to reach the 2025 target of 32%. This includes a strong
contribution from consumer products that support health and well-being, mainly EyeComfort.
Double the percentage of women in leadership
The percentage of women in leadership positions decreased to 28%, a 1% decrease versus last quarter, andslightly behind target. Signify continues its actions to increase women representation through focused hiring
practices for diversity across all levels, and through retention and engagement actions to reduce attrition.
In the first quarter, Signify received several external recognitions for its leadership in Sustainability. Signify wasplaced on CDP's 2023 Climate A-List for the seventh consecutive year. It was also recognized on CDP's 2023
Supplier Engagement Leaderboard for its commitment to engagement in its supply chain to decrease carbon
emissions. Lastly, Signify is recognized on the Clean200, a list of companies putting sustainable investments at
the heart of their strategy.
In addition, Signify released Environmental Product Declarations that advance transparency and sustainable
innovation, covering the vast majority of its LED portfolio. Signify has committed to sharing the environmental
impact of its full range of LED products. Being transparent about our products' environmental impact gives
customers the information they need to make informed decisions.

OutlookFor 2024, Signify continues to expect:••

An Adjusted EBITA margin improvement of up to 50 bps, including first benefits from the announced
restructuring program
Free cash flow generation of 6-7% of sales, including an incremental and non-recurring negative impactof around EUR 150 million related to the restructuring program and a reduction of US pension
liabilities.

2

Financial review
in millions of EUR, except percentages

2023

First quarter
2024

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

1,678
659
39.3%

1,468
605
41.2%

Adj. SG&A expenses
Adj. R&D expenses
Adj. indirect costs
Adj. indirect costs (as % of sales)

-461
-74
-535
31.9%

-431
-70
-501
34.1%

Adjusted EBITA
Adjusted EBITA margin
Adjusted items
EBITA

149
8.9%
-67
83

122
8.3%
-40
82

-18.3%

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

61
-30
-3
28

64
-16
-4
44

5.9%

51
0.20
34,40880
0.35
31,339

Free cash flow
Basic EPS (€)
Employees (FTE)change-10.1%-2.6%
0.2%-12.5%-8.2%-6.4 %

-1.3%

56.3%

First quarter
Nominal sales decreased by 12.5% to EUR 1,468 million, including a negative currency effect of 2.6%.
Comparable sales declined by 10.1%, driven by the expected sharp decline in conventional lighting and lower
professional sales in Europe, while OEM and consumer sales showed sequential improvements.
The Adjusted gross margin increased by 190 bps to 41.2%, mainly driven by effective COGS management and apositive sales mix effect. Adjusted indirect costs as a percentage of sales increased by 220 bps to 34.1% due tolower sales volumes.
Adjusted EBITA decreased to EUR 122 million. The Adjusted EBITA margin decreased by 60 bps to 8.3%, as grossmargin expansion was offset by the under-absorption of fixed costs.
Restructuring costs were EUR 22 million, acquisition-related charges were EUR 3 million and incidental items
were EUR 15 million, mainly related to a one-day FX loss from the devaluation of the Egyptian Pound by the
Egyptian government.
Net income increased to EUR 44 million, mainly due to lower financial expenses and higher income fromoperations.
The number of employees (FTE) decreased from 34,408 at the end of Q1 23 to 31,339 at the end of Q1 24. The
year-on-year decrease is mostly related to a reduction of factory personnel due to lower production volumes. In
general, the number of FTEs is affected by fluctuations in volume and seasonality.

3New organizational structure
As announced on December 1st, 2023, Signify has adapted its organization structure along four verticalizedbusinesses with integrated P&Ls: Professional, Consumer, OEM and Conventional.1
The new organizational structure became effective on April 1st 2024 following completion of proceedings with
Signify's social partners. As the proceedings were still ongoing during Q1 2024, Signify will only report sales andcomparable sales growth by business for the quarter. As of Q2 2024, Signify will report sales and adjusted EBITA
by business.
Signify will publish 2023 and Q1 2024 comparable financials for sales and profit by business by the end of June
2024.

Professionalin millions of EUR, unless otherwise indicatedComparable sales growth
Sales

2023
-6.3%
1,046

First quarter
2024
-7.6%
943

change-9.8%

Includes Intelligent Lighting Controls since March 1, 2023.

First quarter
Nominal sales decreased by 9.8% to EUR 943 million, including a negative currency effect of 2.5%. Comparable
sales declined by 7.6%, mainly due to weak professional sales in Europe offsetting moderate growth in India andemerging markets.

Consumerin millions of EUR, unless otherwise indicatedComparable sales growth
Sales

2023
-15.0%
328

First quarter
2024
-5.7%
299

change-8.8%First quarter
Nominal sales decreased by 8.8% to EUR 299 million, including a negative currency effect of 3.1%. Comparable
sales declined by 5.7%, mainly due to lower LED lamps and luminaires sales, while sales of Hue and Klite
continued to stabilize.

OEMin millions of EUR, unless otherwise indicatedComparable sales growth
Sales

2023
-16.7%
114

First quarter
2024
-7.4%
103

change-10.4%First quarter
Nominal sales decreased by 10.4% to EUR 103 million, including a negative currency effect of 3.0%. Comparable
sales declined by 7.4%, reflecting a decreasing destocking effect within the distributor network. Overall, Signify
estimates that inventory levels of its OEM distributors have returned to normal levels in the majority of its
business by the end of Q1, particularly across Europe and the Americas.

1

Please see the 'Important information' section for more detail on the four newly created businesses.

Conventionalin millions of EUR, unless otherwise indicatedComparable sales growth
Sales

2023
-8.5%
186

First quarter
2024-34.1%
119

change-35.7%First quarter
Nominal sales decreased by 35.7% to EUR 119 million, including a negative currency effect of 1.6%. Comparable
sales declined by 34.1%, reflecting the impact of the fluorescent bans in Europe, which became effective inFebruary and August 2023, while the comparison base in Q1 23 benefited from a pre-buying effect prior to thebans.

Working capitalin millions of EUR, unless otherwise indicatedInventories
Trade and other receivables 1
Trade and other payables
Other working capital items
Working capital
As % of LTM* sales

Mar 31, 2023
1,337
1,032
-1,710
-42
617
8.3%

Dec 31, 2023
1,050
1,012
-1,539
-62
461
6.9%

Mar 31, 2024
1,064
937
-1,486
-42
473
7.3%

1

Q1 2024: Trade and other receivables excluding USD 48 million of insurance receivables for which a legal provision is recognized for the same amount.
* LTM: Last Twelve Months

First quarter
In line with the normal seasonality, working capital increased from EUR 461 million at the end of December 2023
to EUR 473 million at the end of March 2024. The slightly higher working capital is driven by a reduction inpayables, other working capital items and slightly higher inventories, only partly offset by lower receivables. As apercentage of last twelve-month sales, working capital increased by 40 bps to 7.3%.
Compared with March 2023, working capital decreased by EUR 144 million. This decrease is mainly driven bylower inventories, which benefited from shorter lead times, and lower receivables, partly offset by lower
payables. As a percentage of last twelve-month sales, working capital decreased by 100 bps.

Cash flow analysis
in millions of EUR

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

First quarter
2023
61
71
77
-52
-53
-4
-23
-30
4
51

2024
64
68
39
-66
1
-3
-18
-22
17
80

First quarter
Free cash flow increased to EUR 80 million, mainly due to a stabilization of working capital following last year's
improvements. Free cash flow included a restructuring payout of EUR 34 million (Q1 23: EUR 21 million).
5

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

Mar 31, 2023
83
1,942
2,025
694
1,331
3,053

Dec 31, 2023
1,038
1,192
2,230
1,158
1,071
2,947

Mar 31, 2024
1,247
1,158
2,406
1,403
1,003
3,090

First quarter
Compared with the end of December 2023, both the cash and gross debt positions increased. The cash position
increased by EUR 245 million to EUR 1,403 million, while gross debt increased by EUR 176 million to EUR 2,406
million. As a result, net debt decreased by EUR 68 million to EUR 1,003 million. Total equity increased to EUR
3,090 million (Q4 23: EUR 2,947 million), primarily due to currency translation results and net income.
Compared with the end of March 2023, the cash position increased by EUR 709 million, while the gross debt
position increased by 381 million. As a result, the net debt decreased by EUR 328 million year on year. At theend of March 2024, the net debt/EBITDA ratio was 1.6x (Q1 23: 1.4x).

6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 Željko Kosanović (CFO) will host a conference call for analysts and institutional investors
at 9:00 a.m. CET to discuss the first quarter 2024 results. A live audio webcast of the conference call will beavailable via the Investor Relations website.
Financial calendar
May 14, 2024
May 16, 2024
May 17, 2024
June 3, 2024
July 26, 2024
October 25, 2024

Annual General Meeting
Ex-dividend date
Dividend record date
Dividend payment date
Second quarter and half-year results 2024
Third quarter results 2024

For further information, please contact:
Signify Investor Relations
Thelke Gerdes
Tel: +31 6 1801 7131
E-mail: thelke.gerdes@signify.com
Signify Corporate Communications
Tom Lodge
Tel: +31 6 5252 5416
E-mail: tom.lodge@signify.com
About Signify
Signify (Euronext: LIGHT) is the world leader in lighting for professionals, consumers and the Internet of Things.
Our Philips products, Interact systems and data-enabled services, deliver business value and transform life inhomes, buildings and public spaces. In 2023, we had sales of EUR 6.7 billion, approximately 32,000 employees
and a presence in over 70 countries. We unlock the extraordinary potential of light for brighter lives and a betterworld. We have been in the Dow Jones Sustainability World Index since our IPO for seven consecutive years andhave achieved the EcoVadis Platinum rating for four consecutive years, placing Signify in the top one percent ofcompanies assessed. News from Signify can be found in the Newsroom, on X, LinkedIn and Instagram.
Information for investors is located on the Investor Relations page.

7

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 andprojections 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 number of important factors could cause actual results or outcomes to differ materially from thoseexpressed in any forward-looking statement as a result of risks and uncertainties. Such risks, uncertainties andother important factors include but are not limited to: adverse economic and political developments, inparticular the impacts of the Russia-Ukraine conflict, the conflict in the Middle East, the energy crisis in Europe,
the expected recovery trajectory of China post COVID, component shortages, cost inflation, rapid technologicalchange, competition in 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 to activities in Environment, Health & Safety, compliance risks,ability to attract and retain talented personnel, adverse currency effects, pension liabilities, and exposure tointernational tax laws.
Additional risks currently not known to the Group or that the Group has not considered material as of the dateof this document 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 byapplicable 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 unlessotherwise 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 notrecognized measures of financial performance or liquidity under IFRS. The non-IFRS financial measurespresented are measures used by management to monitor the underlying performance of the Group’s businessand operations and, accordingly, they have not been audited nor 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 becomparable 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 thisdocument. For further information on non-IFRS financial measures, see “Chapter 19 Reconciliation of non-IFRS
measures” in the Annual Report 2023.
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 preparedin accordance with the accounting policies as stated in the Annual Report 2023.

8

Change in reportable segments
Effective Q1 2024, Signify reports against four businesses with vertically integrated P&Ls, adapted from theprevious three divisions as follows:• The Professional business will offer LED lamps, luminaires, connected lighting systems and services tocustomers in the professional segment.
• The Consumer business will offer LED lamps, luminaires, and connected products, including Philips Hueand WiZ, to customers in the consumer segment.
• The OEM business will offer lighting components to the industry.
• The Conventional business will offer special lighting, digital projection, and lamp electronics.
Market Abuse Regulation
This press release contains information within the meaning of Article 7(1) of the EU Market Abuse Regulation.

9

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

First quarter
2023
1,678
(1,073)
605
(472)
(76)
6
(3)
61
6
(35)
—
31
(3)
28
25
3

2024
1,468
(886)
582
(447)
(71)
—
—
64
15
(31)
—
48
(4)
44
44
(1)

Amounts may not add up due to rounding.

10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

First quarter
2023
28

2024
44

—
—
—

4
(1)
3

(59)
—

83
—

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

—
—

—
—

18
(4)
(46)

2
(1)
85

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

(46)
(18)

88
131

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

(19)
1

130
1

Amounts may not add up due to rounding.

11C. Condensed consolidated statement of financial position
In millions of EUR
December 31, 2023

March 31, 2024

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

633
2,755
641
12
91
402
32
4,566

618
2,813
636
12
44
393
23
4,540

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

1,050
2
147
14
54
1,012
1,158
—
3,438
8,004

1,064
1
161
9
61
982
1,403
—
3,682
8,221

EquityShareholders’ equity
Non-controlling interests
Total equity

2,817
129
2,947

2,959
131
3,090

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

1,192
322
263
20
79
154
2,030

1,158
311
204
19
66
155
1,914

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

1,038
17
20
1,539
206
206
—
3,027
8,004

1,247
6
19
1,486
253
207
—
3,218
8,221

Amounts may not add up due to rounding.

12

D. Condensed consolidated statement of cash flows
In millions of EUR
First quarter
2023
Cash flows from operating activities
Net income (loss)
Adjustments to reconcile net income (loss) to net cash provided by operating
activities:

28

44

176

141

71

68

—
(5)
10

—
—
7

3
72
5
19

4
39
—
23

Changes in working capital:• Changes in trade and other receivables• Changes in inventories• Changes in trade and other payables• Changes in other current assets and liabilities
Changes in other non-current assets and liabilities
Utilizations of provisions
Utilizations of post-employment benefits
Net interest and financing costs received (paid)
Income taxes paid
Net cash provided by (used for) operating activities

(53)
55
9
(136)
19
9
(42)
(9)
(4)
(23)
82

1
84
(5)
(70)
(9)
4
(56)
(11)
(3)
(18)
103

Cash flows from investing activities
Net capital expenditures:• Additions of intangible assets• Capital expenditures on property, plant and equipment• Proceeds from disposal of property, plant and equipment
Net proceeds from (cash used for) derivatives and other financial assets
Purchases of businesses, net of cash acquired
Proceeds from sale of businesses, net of cash disposed of
Net cash provided by (used for) investing activities

(30)
(14)
(16)
—
13
(14)
—
(31)

(22)
(12)
(12)
2
5
—
—
(17)

Cash flows from financing activities
Dividend paid
Proceeds from issuance of debt
Repayment of debt
Purchase of treasury shares
Net cash provided by (used for) financing activities
Net cash flows
Effect of changes in exchange rates on cash and cash equivalents and bank overdrafts
Cash and cash equivalents and bank overdrafts at the beginning of the period 1
Cash and cash equivalents and bank overdrafts at the end of the period 2

—
1
(23)
—
(22)
29
(12)
676
693

—
179
(20)
—
159
244
—
1,158
1,402

• Depreciation, amortization and impairment of non-financial assets• Impairment (reversal) of goodwill, other non-current financial assets andinvestments in associates• Net gain on sale of assets• Net interest expense on debt, borrowings and other liabilities• Income tax expense• Additions to (releases of) provisions• Additions to (releases of) post-employment benefits• Other items

1
2

2024

For Q1 2024 and Q1 2023, included bank overdrafts of EUR 0 million and EUR 1 million, respectively.
Included bank overdrafts of EUR 1 million and EUR 1 million as at March 31, 2024 and 2023, respectively.

Amounts may not add up due to rounding.

13

Appendix B - Reconciliation of non-IFRS financial measures
Sales growth composition per business in %Comparable
growth2024 vs 2023
Professional
ConsumerOEM
Conventional
Signify

(7.6)
(5.7)
(7.4)
(34.1)(10.1)

Comparable
growth2023 vs 2022
Professional
ConsumerOEM
Conventional
Signify(6.3)(15.0)(16.7)(8.5)(9.1)

First quarter
Currency effects
Consolidation
effects
(2.5)
(3.1)
(3.0)
(1.6)
(2.6)

Nominal growth

0.3
—
—
—
0.2

(9.8)
(8.8)
(10.4)(35.7)(12.5)First quarter
Currency effects
Consolidation
effects

Nominal growth

1.7
(0.7)
(0.2)
0.9
0.9

3.8
—
—
—
2.1

(0.8)
(15.8)(16.8)
(7.6)
(6.1)

14

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

1

First quarter 2024
Adjusted EBITA
Restructuring
Acquisition-related charges
Incidental items
EBITA
Amortization 1
Income from operations (or EBIT)

122
(22)
(3)
(15)
82
(17)
64

First quarter 2023
Adjusted EBITA
Restructuring
Acquisition-related charges
Incidental items
EBITA
Amortization 1
Income from operations (or EBIT)

149
(47)
(3)
(16)
83
(22)
61

Amortization and impairments of acquisition related intangible assets and goodwill.

Amounts may not add up due to rounding.

15

Income from operations to Adjusted EBITA in millions of EUR

Reported Restructuring
First quarter 2024
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)First quarter 2023
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

Acquisitionrelated
charges

Incidental
items1

Adjusted

1,468
(886)
582

—
12
12

—
1
1

—
11
11

1,468
(863)
605

(447)
(71)
(518)
—
—
—
64
(17)

9
1
11
—
—
—
22
—

2
—
2
—
—
—
3
—

4
—
4
—
—
—
15
—

(431)
(70)
(501)
—
—
—
105
(17)

82

22

3

15

122

1,678
(1,073)
605

—
37
37

—
1
1

—
16
16

1,678
(1,019)
659

(472)
(76)
(548)
—
6
(3)
61
(22)

9
2
11
—
—
—
47
—

3
—
3
—
(1)
—
3
—

(1)
—
(1)
—
—
—
16
—

(461)
(74)
(535)
—
5
(2)
127
(22)

83

47

3

16

149

Q1 2024: Incidental items are non-recurring items by nature and are related to a one-day FX loss from the devaluation of the Egyptian Pound by the Egyptian
government (EUR 10 million), environmental provisions for inactive sites and the discounting effect of long-term provisions (EUR 4 million) and other itemswith an effect of EUR 1 million loss.
Q1 2023: Incidental items are non-recurring items by nature and are related to environmental provisions for inactive sites and the discounting effect of longterm provisions (EUR 11 million) and operations in Russia and Ukraine (EUR 5 million).

Amounts may not add up due to rounding.

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Appendix C – Financial glossary

EBIT
Income from operations.

Acquisition-related charges
Costs that are directly triggered by the acquisitionof a company, such as transaction costs, purchaseaccounting related costs and integration-related
expenses.

EBITA
Income from operations excluding amortizationand impairment of acquisition-related intangible
assets and goodwill.

Adjusted EBITAEBITA excluding restructuring costs, acquisitionrelated charges, and other incidental charges.

EBITDA
Income from operations excluding depreciation,amortization, and impairment of non-financial
assets.

Adjusted EBITA margin
Adjusted EBITA divided by sales to third parties(excluding intersegment). 'Operational profitability'
also refers to this metric.
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, andother incidental items attributable to research anddevelopment 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.
Brighter lives revenues
Percentage of total revenues coming from all
products, systems and services contributing toFood availability, Safety & security, or Health &well-being.

Effects of changes in consolidation
In the event a business is acquired (or divested),
the impact of the consolidation (or deconsolidation) on the Group’s figures is included (orexcluded) in the calculation of the comparable sales
growth figures.
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 the end of the period,
expressed on a full-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.

Changes in scope
Consolidation effects related to acquisitions.

Indirect costs
The sum of selling, general and administrative
expenses and R&D expenses.

Circular revenues
Percentage of total revenues coming fromproducts, systems and services designed for acircular economy, categorized as serviceable
luminaires (incl. 3D-printing), circular components,
intelligent systems, or circular services.

Net capital expenditures
Additions of intangible assets, capital expenditureson property, plant and equipment and proceedsfrom disposal of property, plant and equipment.

Comparable sales growth (CSG)
The period-on-period growth in sales excluding theeffects of currency movements and changes in
consolidation.

Net debt
Short-term debt, long-term debt minus cash andcash equivalents.

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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
which have been approved by the company, andgenerally involve the realignment of certain parts of
the organization. Restructuring costs include costs
for employee termination benefits for affected
employees and other costs directly attributable to
the restructuring, such as impairment of assets andinventories.
SG&A expenses
Selling, general and administrative expenses.
Working capital
The sum of inventories, trade and other receivables(excluding insurance receivables for which a legal
provision is recognized for the same amount), othercurrent assets, derivative financial assets minus thesum of trade and other payables, derivative
financial liabilities and other current liabilities(excluding dividend-related payables).

18