Q1 2024 results
April 26, 2024

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 conflict in the Middle East, the energy crisis in Europe, the expected recovery trajectory of China post COVID, component shortages, cost inflation, rapid technological change, competition in the generallighting 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.
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 financial 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 prepared inaccordance with the accounting policies as stated in the Annual Report 2023.
Market Abuse Regulation
This presentation contains information within the meaning of Article 7(1) of the EU Market Abuse Regulation.

2

Content
Business and operational performance - Eric Rondolat

Financial performance - Željko Kosanović
Outlook and closing remarks - Eric Rondolat
Q&A

3

Need to update
photoSignify reported Q1 24 sales of EUR 1.5 billion, CSG of -10.1% and anadj. EBITA margin of 8.3%
Sales (in EURm) & comparable sales growth (in %)CSG-9.1%-10.1%

-8.6%

-7.8%

-7.7%

1,678

1,468

1,644

1,649

1,734

Q1 23

Q1 24

Q2 23

Q3 23

Q4 23

Key observations for Q1 24•

126 million connected light points (Q4 23: 124 million)•LED-based sales were 87% of total sales•

Nominal sales decline of 12.5% (including FX impact of -2.6%)
to EUR 1,468m•

Comparable sales decline of 10.1%•Adjusted EBITA margin decrease of 60 bps to 8.3%

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

48.9%8.3%

8.3%

10.7%

12.1%

149122136

177

209

Q1 23

Q1 24

Q2 23

Q3 23

Q4 23

•

Gross margin improvement•

Under-absorption of fixed costs•

Net income of EUR 44m (Q1 23: EUR 28m)

•Free Cash Flow of EUR 80m (Q1 23: EUR 51m)

The Professional Business reported a CSG of -7.6%
Sales (in EURm) & comparable sales growth (in %)CSG

5-6.3%-7.6%

1,046943

Q1 23

Q1 24

Key observations for Q1 24•

Comparable sales decline of 7.6%•

Weak professional sales in Europe•

Good traction in the Americas•Moderate growth in India and emerging markets

The Consumer Business reported a CSG of -5.7%
Sales (in EURm) & comparable sales growth (in %)CSG

6-15.0%

-5.7%

328

299

Q1 23

Q1 24

Key observations for Q1 24•

Comparable sales decline of 5.7%
•Lower LED lamps and luminaires sales•

Sales of Hue and Klite stabilized•

Inventory levels of retailers have returned tonormal levels

The OEM Business reported a CSG of -7.4%
Sales (in EURm) & comparable sales growth (in %)CSG-16.7%-7.4%

Key observations for Q1 24•

Comparable sales decline of 7.4%
•7114

103

Q1 23

Q1 24

Inventory levels of the OEM distributors havereturned to normal levels in the majority of thebusiness

The Conventional Business reported a CSG of -34.1%
Sales (in EURm) & comparable sales growth (in %)CSG

8-8.5%-34.1%

186

119

Q1 23

Q1 24

Key observations for Q1 24•

Comparable sales decline of 34.1%•Impact of the fluorescent bans in Europe•Q1 23 benefited from a pre-buying effect prior tothe bans

Business highlights
ProfessionalConsumer

Equipping Vienna City Hallin Austria with connected
Color Kinetics LED lighting

Introducing LumXpert, anindustry-first application
for professional installers

Expanding thecollaboration between
Philips Hue and Samsung

Achieving two test victories
for Philips Hue and WiZ in
the Stiftung Warentest• Together with Ing. EmmerichCsernohorszky GmbH andpodpod Design, Signify
completely renovated thefestive lighting• More than 1,100 Color
Kinetics luminaires wereinstalled• Lower operating andmaintenance costs• Energy savings of up to 50%• The app simplifies andaccelerates lighting projects
for professional installers• In-app design tool enables
project management andprofessional lighting
calculations• Buy all Signify brands
directly from our distributors
with competitive deliverytimes• Expanded the collaboration
with Samsung SmartThings
to optimize the interaction
between the Philips HueSync TV app, Samsung TVs,
and the SmartThings
ecosystem• The Philips Hue Sync TV app
will be made available as amonthly subscription plan in
addition to the one-time
purchase option• Ten smart lamps with andwithout a base station weretested by Stiftung Warentestin Germany• The Philips Hue White &Color Ambiance lamp withHue Bridge was the overall
test winner• The WiZ Tunable White &Color E27 (60W) lamp wonin the category without abase station

9Brighter Lives, Better World 2025 – Q1 2024 results

Brighter Lives

Better World

Doubling our positive impact on the environment and society

Q1 2024
Result2025
TargetClimate action

Carbon reduction over value chain
against Paris Agreement

0On track

324 MT

Circular economy

Circular revenues

16%

34%

32%

Food availability
Safety & security
Health & well-being

Brighter lives revenues

16%

31%

32%

Great place to work

Women in leadership positions

17%

28%

34%

A list for climate andsupply chain leader
102019Baseline

DJSI World Index

EcoVadis Platinum
Medal and top 1%On track
Off track

Content
Business and operational performance - Eric Rondolat

Financial performance - Željko Kosanović
Outlook and closing remarks - Eric Rondolat
Q&A

11

Need to update
photoAdjusted EBITA margin decreased to 8.3%, as gross margin expansion wasoffset by under-absorption of fixed costs
As % of sales-60 bps

8.9%

8.3%

+80 bps

-0.2%
0.7%

-2.7%

0.8%

-1.2%

Q1 23

12

VolumePrice/Mix

2.0%

COGS

Indirect Costs

Currency

Other

Q1 24

Working capital decreased to 7.3%, driven by lower inventories andreceivables, partly offset by lower payables
In EURm / as % of sales-100 bps

8.3%

7.3%

617

-273

0473

Other working
capital items

Q1 24

224
-95

Q1 23

13

Inventories

Trade & other receivables

Trade & other payables

Content
Business and operational performance - Eric Rondolat

Financial performance - Željko Kosanović
Outlook and closing remarks - Eric Rondolat
Q&A14

Need to updatephotoOutlook%

For 2024, Signify continues to expect:• An Adjusted EBITA margin improvement of up to 50 bps, including first benefits from theannounced restructuring program• Free cash flow generation of 6-7% of sales, including an incremental and non-recurring
negative impact around EUR 150m related to the restructuring program and a reductionof US pension liabilities

15

Q&A
Need to updatephoto

Currency movements had a negative impact on sales and a positive impact
on the Adjusted EBITA margin
Q1 24 Sales FX Footprint (% of total)

17

Key observations•Overall currency impact of -2.6% on sales, mainly fromUSD and CNY depreciation.

•Impact of +0.7% on the Adjusted EBITA margin.

Net income increased to EUR 44m, mainly due to lower financial expenses
and higher EBIT
Key observations

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

Q1 23
149

Q1 24
122

- Restructuring-47-22- Acquisition-related charges-3-3-16-15

EBITA

83

82

Amortization-22-17

EBIT

61

64

Net financial income / expenses-30-16

Income tax expense-3-4Results from investments in associates

00Net income

2844

1 - Other incidental items

181Non-recurring items by nature and relate to:• A one-day FX loss from the devaluation of the Egyptian
pound by the Egyptian government (EUR 10m)
• Environmental provisions for inactive sites and thediscounting effect of long-term provisions (EUR 4m)• Other items with an effect of EUR 1 million loss

Free cash flow increased to EUR 80m, mainly due to a stabilization ofworking capital following last year’s improvements
Key observations

Free cash flow (in EURm)
Q1 2361Q1 2464

Depreciation and amortization

7168

Additions to (releases of) provisions

7739

Utilizations of provisions-52-66

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

-53

1-4-3-23-18

Net capex

-30

-22

Other417

Free cash flow

51

80

As % of sales

3.1%

5.5%

Income from operations

19•

Free cash flow of EUR 80m••

Stabilization of working capital following lastyear’s improvements

Restructuring payout of EUR 34m (Q1 23: EUR 21m)