Press Release
July 26, 2024

Signify reports second quarter sales of EUR 1.5 billion, operational profitability of 7.9% and afree cash flow of EUR 51 million
Second quarter 20241• Installed base of connected light points increased to 136 million in Q2 24• Released Climate Transition Plan with SBTi-validated net-zero targets• Sales of EUR 1,483 million; nominal sales decline of -9.8% and CSG of -8.4%• LED-based sales represented 86% of total sales (Q2 23: 84%)
• Adj. EBITA margin of 7.9% (Q2 23: 8.3%)• Net income of EUR 63 million (Q2 23: EUR 45 million)• Free cash flow of EUR 51 million (Q2 23: EUR 88 million)

Eindhoven, the Netherlands – Signify (Euronext: LIGHT), the world leader in lighting, today announced the company’s
second quarter 2024 results.
“Our topline for the second quarter was impacted by the accelerated decline in Conventional lighting and continued
market softness in Europe for the Professional business and in China. At the same time, we are encouraged by the
positive trend in connected lighting, as well as the return to growth for our Consumer business outside of China andour OEM business. While the Adjusted EBITA margin of our Professional business was impacted, our Consumer andOEM businesses showed substantial improvements. Our free cash flow was in line with our expectations, reflecting
the anticipated cash outflow from the restructuring program,” said Eric Rondolat, CEO of Signify.
“We remain cautious on Professional Europe and on China for the second semester, but expect to see positive
traction for Professional in the Americas, as well as the OEM and Consumer businesses. As a result, we maintain our
guidance, with an Adjusted EBITA margin at the lower end of the 10.0-10.5% range and free cash flow generation of
6-7% of sales.”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 not recognizedmeasures of financial performance or liquidity under IFRS. For a reconciliation of these non-IFRS financial measures to the most directly comparable IFRS financial measures, see appendix A,
Reconciliation of non-IFRS financial measures, of this press release.

Brighter Lives, Better World 2025
In the second quarter of the year, Signify continued to advance its Brighter Lives, Better World 2025 sustainability
program which commits to doubling its positive impact on the environment and society.
Double the pace of the Paris Agreement
Signify is ahead of schedule to achieve its 2025 target to reduce greenhouse gas (GHG) emissions across its full value
chain by 40% against a 2019 baseline - double the pace required by the Paris Agreement 1.5 degree scenario.
Double Circular revenues
Circular revenues increased to 35%, up 1% on last quarter and ahead of the 2025 target of 32%. The main contribution
came from serviceable luminaires for the professional segment and LED luminaires for the consumer segment.
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, and professional luminaires that are
Dark Sky compliant, reducing the impact on nature.
Double the percentage of women in leadership
The percentage of women in leadership positions increased to 29%, a 1% improvement over last quarter, slightly
behind the 2025 target of 34%. Signify continues its efforts to increase representation through focused hiring
practices for diversity at all levels, and through retention and engagement activities to reduce attrition.
Climate Transition Plan
In the second quarter, Signify released its Climate Transition Plan, which sets out the company's climate strategy inline with its SBTi-validated 2040 net-zero targets:••

Net-zero GHG emissions across its entire value chain by 2040.
Absolute reduction of scope 1, 2 and 3 GHG emissions of 50% by 2030, and 90% by 2040, against a 2019baseline.

Outlook
We remain cautious on Professional Europe and on China for the second semester, but expect to see positive traction
for Professional in the Americas, as well as the OEM and Consumer businesses. As a result, we maintain our guidance,with an Adjusted EBITA margin at the lower end of the 10.0-10.5% range and free cash flow generation of 6-7% ofsales.

2

Financial review
2023

Second quarter2024

change
-8.4%
-1.4%
0.0%
-9.8%
-6.3%

1,644
639
38.9%

1,483
598
40.3%

-454
-68
-523
31.8%

-428
-69
-497
33.5%

136
8.3%
-28
108

118
7.9%
-3
115

-13.2%

88
-31
-12
45

97
-21
-13
63

10.3%

88
0.32
33,18151
0.49
31,219

-4.9%

6.5%

40.9%

in millions of EUR, except percentages

2023

Six months
2024

Comparable sales growth
Currency effects
Consolidation effects
Sales
Adjusted gross margin
Adj. gross margin (as % of sales)

3,322
1,298
39.1%

2,951
1,204
40.8%

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

-915
-143
-1,058
31.8%

-859
-139
-998
33.8%

Adjusted EBITA
Adjusted EBITA margin
Adjusted items
EBITA

285
8.6%
-95
190

240
8.1%
-43
196

-15.9%

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

149
-61
-15
73

162
-37
-17
107

8.5%

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

139
0.52
33,181131
0.84
31,219change
-9.2%
-2.0%
0.1%
-11.2%
-7.3%

-5.6%

3.2%

46.8%

Second quarter
Nominal sales decreased by 9.8% to EUR 1,483 million, including a negative currency effect of 1.4%, mainly from CNY
depreciation. Comparable sales declined by 8.4%, driven by lower professional lighting sales in Europe and continued
softness in China, while the OEM and Consumer businesses continued to show sequential improvements.
The Adjusted gross margin increased by 140 bps to 40.3% driven by effective COGS management and positive sales
mix. Adjusted indirect costs as a percentage of sales increased by 170 bps to 33.5%, as the reduction of indirect costs
did not keep pace with lower sales volumes.
Adjusted EBITA decreased to EUR 118 million. The Adjusted EBITA margin decreased by 40 bps to 7.9%, as grossmargin expansion was offset by an under-absorption of fixed costs.
Restructuring costs were EUR 9 million, acquisition-related charges were EUR 2 million and incidental items had apositive impact of EUR 8 million.
Net income increased to EUR 63 million, mainly driven by lower adjusted items, lower non-cash losses on Virtual
Power Purchase Agreements and higher financial income.
The number of employees (FTE) decreased from 33,181 at the end of Q2 23 to 31,219 at the end of Q2 24. The yearon-year decrease is mostly related to a reduction of factory personnel due to lower production volumes and the first
effects of the reorganization program. In general, the number of FTEs is affected by fluctuations in volume andseasonality.

3Professional
Second quarter
2023

2024

-4.2%

-8.3%

1,059
89
8.4%

959
78
8.1%

Six months
change in millions of EUR, unless otherwise indicated-9.5%-12.7%

2023

2024

Comparable sales growth

-5.3%

-8.0%

Sales
Adjusted EBITA
Adjusted EBITA margin

2,105
173
8.2%

1,902
148
7.8%

change-9.6%-14.4%

Includes Intelligent Lighting Controls since March 1, 2023

Second quarter
Nominal sales decreased by 9.5% to EUR 959 million, including a negative currency effect of 1.1%. Comparable sales
declined by 8.3%, mainly due to continued softness in Europe and China, while Agriculture lighting showed sequential
improvements. The Adjusted EBITA margin decreased by 30 bps to 8.1%, mainly due to an under-absorption of fixed
costs, as negative pricing was compensated by BOM savings and positive sales mix.

Consumer
2023

Second quarter2024-11.1%

-2.4%

312
17
5.5%

297
21
7.1%

change in millions of EUR, unless otherwise indicated
-4.7%
23.2%

2023

Six months
2024

Comparable sales growth-13.1%

-4.1%

Sales
Adjusted EBITA
Adjusted EBITA margin

639
37
5.8%

596
52
8.8%

change-6.8%
41.9%

Second quarter
Nominal sales decreased by 4.7% to EUR 297 million, including a negative currency effect of 2.3%. Comparable sales
declined by 2.4%, mainly due to lower sales in China, while the connected offers were back to growth. The Adjusted
EBITA margin improved by 160 bps to 7.1%, driven by COGS savings, positive sales mix and a positive currency effect.

OEM
Second quarter
2023

2024

-28.2%

0.1%

108
8
7.2%

106
12
10.9%

Six months
change in millions of EUR, unless otherwise indicated
-2.5%
47.1%

2023

2024

Comparable sales growth-22.8%

-3.7%

Sales
Adjusted EBITA
Adjusted EBITA margin

223
19
8.5%

208
21
9.9%

change-6.6%
8.7%

Second quarter
Nominal sales decreased by 2.5% to EUR 106 million, including a negative currency effect of 2.7%. Comparable sales
grew by 0.1%, as inventory levels of OEM distributors normalized. The Adjusted EBITA margin increased by 370 bps to10.9%, mainly driven by COGS savings.

4

Conventional
Second quarter
2023

2024

-15.0%-27.6%

160
32
19.9%

114
18
15.7%

Six months
change in millions of EUR, unless otherwise indicated-28.3%-43.5%

2023

2024

Comparable sales growth-11.6%-31.0%

Sales
Adjusted EBITA
Adjusted EBITA margin

346
73
21.2%

234
39
16.7%

change-32.3%-46.7%

Second quarter
Nominal sales decreased by 28.3% to EUR 114 million, including a negative currency effect of 0.7%. Comparable sales
declined by 27.6%, reflecting the impact of the fluorescent bans in Europe, which became effective in February andAugust 2023. The Adjusted EBITA margin decreased by 420 bps to 15.7%, reflecting an under-absorption of fixed costs
following the accelerated sales decline and one-off charges.

Other
Second quarter'Other' represents amounts not allocated to the businesses and mainly includes costs related to ventures, exploratory
research and audits. Adjusted EBITA was EUR -11 million, in line with last year (Q2 23: EUR -10 million).

Working capitalin millions of EUR, unless otherwise indicatedInventories
Trade and other receivables 1
Trade and other payables
Other working capital items 2
Working capital
As % of LTM3 sales
12
3

Jun 30, 2023 Mar 31, 2024

Jun 30, 2024

1,288
1,002
-1,608
-42
640

1,064
937
-1,486
-42
473

1,074
959
-1,500
-30
502

8.9%

7.3%

7.9%

As at June 30, 2024 and 2023, Trade and other receivables exclude USD 49 million and USD 48 million, respectively, of insurance receivables for which a legal provision
is recognized for the same amount.
As at June 30, 2024 and 2023, Other working capital items exclude EUR 25 million and EUR 26 million of dividend-related payable, respectively.
LTM: Last Twelve Months
6,614
6,336
6,275

Second quarter
Working capital increased from EUR 473 million at the end of March 2024 to EUR 502 million at the end of June 2024.
The increase is mainly driven by higher receivables, higher inventories and lower other working capital items, partly
offset by higher payables. As a percentage of last twelve-month sales, working capital increased by 60 bps to 7.9%.
Compared with June 2023, working capital decreased by EUR 138 million. This decrease is mainly driven by lower
inventories, which benefited from shorter lead times, and lower receivables, partly offset by lower payables and lower
other working capital items. As a percentage of last-twelve month sales, working capital decreased by 100 bps.

5

Cash flow analysis
Second quarter
2023
2024
88
97
67
36
-41
-9
-32
-15
-21
13
88

64
30
-64
-15
-28
-16
-20
2
51

Six months
2023
149

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

139
113
-92
-62
-35
-38
-51
17
139

2024
162
132
70
-130
-14
-31
-34
-42
19
131

Second quarter
Free cash flow decreased to EUR 51 million, mainly due to a higher restructuring payout and a higher cash outflow
from working capital, partly offset by a higher income from operations. Free cash flow included a restructuring payoutof EUR 39 million (Q2 23: EUR 12 million).

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

Jun 30, 2023 Mar 31, 2024 Jun 30, 2024
755

1,247

574

1,267
2,022
584
1,439
2,853

1,158
2,406
1,403
1,003
3,090

1,158
1,732
567
1,165
2,965

Second quarter
Compared with the end of March 2024, the cash position decreased by EUR 836 million to EUR 567 million, mainly
due to the repayment of debt and the dividend payment, partly offset by positive free cash flow. Following therepayment of debt, the gross debt position decreased to EUR 1,732 million. As a result, net debt increased by EUR 162
million to EUR 1,165 million. Total equity decreased to EUR 2,965 million (Q1 24: EUR 3,090 million), primarily due todividend distribution, partly offset by net income and currency translation results.
Compared with the end of June 2023, the cash position decreased by EUR 17 million, while the gross debt position
decreased by EUR 290 million. As a result, the net debt decreased by EUR 274 million year on year. At the end of June
2024, the net debt/EBITDA ratio was 1.8x (Q2 23: 1.9x).

6Other information
Appendix A – Reconciliation of non-IFRS financial measures
Appendix B – 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 second quarter 2024 results. A live audio webcast of the conference call will be available
via the Investor Relations website.
Financial calendar
October 25, 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 in homes,
buildings and public spaces. In 2023, we had sales of EUR 6.7 billion, approximately 32,000 employees and a presencein over 70 countries. We unlock the extraordinary potential of light for brighter lives and a better world. We havebeen in the Dow Jones Sustainability World Index since our IPO for seven consecutive years and have achieved the
EcoVadis Platinum rating for four consecutive years, placing Signify in the top one percent of companies assessed.
News from Signify can be found in the Newsroom, on X, LinkedIn and Instagram. Information for investors is locatedon 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 and projections ofSignify 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 anumber of 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 not limited to: adverse economic and political developments, in particular the impacts of the RussiaUkraine conflict, the conflict in the Middle East, the recovery trajectory of the Chinese economy, cost inflation, rapid
technological change, 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. Above-mentioned risks are also applicable to the second half of 2024. The Group will continue
to monitor how these topics develop.
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 ofoperations, financial condition and prospects of the Group or could cause the forward-looking events discussed in thisdocument 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
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 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 recognizedmeasures of financial performance or liquidity under IFRS. The non-IFRS financial measures presented are measuresused by management to monitor the underlying performance of the Group’s business and operations and,accordingly, they have not been audited nor reviewed. Not all companies calculate non-IFRS financial measures in thesame manner or on a consistent basis and these measures and ratios may not be comparable to measures used byother companies under the same or similar names. A reconciliation of these non-IFRS financial measures to the mostdirectly comparable IFRS financial measures is contained in this document. 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 prepared inaccordance with the accounting policies as stated in the Annual Report 2023.
Market Abuse Regulation
This press release contains information within the meaning of Article 7(1) of the EU Market Abuse Regulation.

8

Unaudited condensed
consolidated interim
financial statements

For the six-month period ended June 30, 2024

9

Index to the unaudited condensed consolidated interim
financial statements
Introduction

11

Management report12

1. Condensed consolidated interim financial statements
1.1 Condensed consolidated statement of income

14

1.2 Condensed consolidated statement of comprehensive income

15

1.3 Condensed consolidated statement of financial position

16

1.4 Condensed consolidated statement of cash flows

17

1.5 Condensed consolidated statement of changes in equity

18

2. Notes to the condensed consolidated interim financial statements
2.1 Reporting entity

19

2.2 Basis of preparation

19

2.3 Notes

21

10

Semi-annual report
Introduction

Responsibility statement

The semi-annual report for the six-month period
ended June 30, 2024 of Signify N.V. (the ‘Company’)consists of the semi-annual condensed consolidated
interim financial statements, the semi-annual
management report and the responsibility statementby the Company’s Board of Management.

The Board of Management and Chief Financial
Officer of the Company hereby declare that, to thebest of their knowledge, the semi-annual condensed
consolidated interim financial statements for thesix-month period ended June 30, 2024, which havebeen prepared in accordance with IAS 34, Interim
Financial Reporting, as adopted by the European
Union, give a true and fair view of the assets,
liabilities, financial position and profit or loss of theCompany and the undertakings included in the
consolidation taken as a whole, and the semi-annual
management report for the six-month period ended
June 30, 2024, gives a fair view of the information
required pursuant to Section 5:25d(8)-(9) of the
Dutch Financial Markets Supervision Act (Wet op het
Financieel toezicht).

The main risks and uncertainties for the second halfof 2024 are addressed in the first part of the press
release - please refer to the section ‘Important
Information’.
The information in this semi-annual report isunaudited. The semi-annual condensed consolidated
interim financial statements do not include all theinformation and disclosures required in the annual
financial statements and should be read in
conjunction with the Company’s Consolidated
financial statements for the year ended December
31, 2023.

Eindhoven, July 26, 2024
Eric Rondolat
Harshavardhan ChitaleŽeljko Kosanović (CFO)11

Management report
1

Business performanceMarket environment

In the first half of 2024, Signify saw a number of key
dynamics across its end markets that impacted thecompany's topline performance.

losses on Virtual Power Purchase Agreements,
higher financial income and higher income fromoperations.
Net cash from operating activities decreased by EUR
17 million to EUR 173 million. The decrease is mainly
driven by a higher restructuring payout, partly offset
by a lower cash outflow from working capital.

Professional

Professional lighting was affected by lower demandin Europe and continued weakness in China. After aweak 2023, the consumer lighting market started togain traction again as consumer demand forconnected lighting products improved. Following aperiod of destocking, inventory levels within the
OEM distributor network normalized during the firstsix months of 2024, leading to sequential
improvements for Signify's OEM business. The
conventional lighting market saw an accelerated
rate of decline following the fluorescent bans in
Europe, which became effective in February andAugust 2023.

Nominal sales decreased by 9.6% to EUR 1,902
million, including a negative currency effect of 1.8%
and a positive effect of 0.1% from the consolidationof Intelligent Lighting Controls. Comparable sales
declined by 8.0%, mainly due to weakness in Europe
and China.

Financial performance

Nominal sales decreased by 6.8% to EUR 596 million,
including a negative currency effect of 2.7%.
Comparable sales declined by 4.1%, mainly driven bylower LED lamps & luminaires sales, while Hue wasback to growth.

Nominal sales decreased by 11.2% to EUR 2,951
million, including a negative currency effect of 2.0%
and a positive effect of 0.1% from the consolidationof Intelligent Lighting Controls. Comparable sales
decreased by 9.2%, mainly due to lower Professional
lighting sales in Europe and continued softness in
China and lower Conventional lighting sales, while
the Consumer and OEM businesses started to show
sequential improvements, particularly in the second
quarter.
The gross margin increased by 230 basis points to39.6%. The adjusted gross margin increased by 170
basis points to 40.8%, mainly driven by effective
COGS management and a positive sales mix effect.
Indirect costs as a percentage of sales increased by
190 basis points to 34.4%. Adjusted indirect costs asa percentage of sales increased by 200 basis points
to 33.8%, mainly due to an under-absorption of fixed
costs.
EBITA increased to EUR 196 million. Restructuringcosts were EUR 31 million, acquisition-related
charges were EUR 5 million, and incidental items had
a negative impact of EUR 7 million. Correcting forthese adjusted items, the Adjusted EBITA was EUR
240 million, or 8.1% of sales. The Adjusted EBITA
margin decreased by 50 basis points compared tothe previous year, as gross margin improvements
were more than offset by the under-absorption of
fixed costs.
Income from operations increased by EUR 13 million
to EUR 162 million. Net income increased by EUR 34
million to EUR 107 million, driven by lower non-cash

Adjusted EBITA was EUR 148 million. The Adjusted
EBITA margin decreased by 40 basis points to 7.8%of sales, as cost savings and a positive sales mix
effect were offset by an under-absorption of fixed
costs and negative pricing in some markets.

Consumer

Adjusted EBITA was EUR 52 million. The Adjusted
EBITA margin increased by 300 basis points to 8.8%,
driven by COGS savings, a positive currency effectand positive sales mix.

OEM
Nominal sales decreased by 6.6% to EUR 208 million,
including a negative currency effect of 2.9%.
Comparable sales declined by 3.7%, sequentially
improving throughout the first half of 2024, as
distributor inventory levels normalized following aperiod of destocking.
Adjusted EBITA was EUR 21 million. The Adjusted
EBITA margin increased by 140 basis points to 9.9%,
mainly driven by COGS savings.

Conventional
Nominal sales decreased by 32.3% to EUR 234
million, including a negative currency effect of 1.2%.
Comparable sales decreased by 31.0%, as thefluorescent bans in Europe resulted in an
accelerated decline for the business.
Adjusted EBITA was 39 million. The Adjusted EBITA
margin decreased by 450 basis points to 16.7%,
mainly due to an under-absorption of fixed costs
related to the sales decline and one-off charges,
while last year included a benefit from one offs.

1

This section contains certain non-IFRS financial measures and ratios, such as comparable sales growth, EBITA, Adjusted EBITA, free cash flow, and related ratios, which
are not recognized measures of financial performance or liquidity under IFRS. For a reconciliation of these non-IFRS financial measures to the most directly comparable
IFRS measures, see “Reconciliation of non-IFRS financial measures”.

12Other'Other' represents amounts not allocated to thebusinesses and mainly includes costs related toventures, exploratory research and audits. Adjusted
EBITA was EUR -20 million, compared with EUR -17
million in the same period last year.

Outlook
We remain cautious on Professional Europe and on
China for the second semester, but expect to see
positive traction for Professional in the Americas, aswell as the OEM and Consumer businesses. As aresult, we maintain our guidance, with an Adjusted
EBITA margin at the lower end of the 10.0-10.5%
range and free cash flow generation of 6-7% ofsales.

13

1

Condensed consolidated
financial statements

1.1

Condensed consolidated statement of income

In millions of EUR unless otherwise stated
Note

Second quarter

January to June

2023

2024

2023

2024

1,644

1,483

3,322

2,951

Cost of sales(1,010)(895)(2,083)(1,781)Gross margin

633

588

1,239

1,170

Selling, general and administrative expenses

(464)

(429)

(935)

(876)

Research and development expenses

(69)

(69)

(145)

(139)

Sales

1, 2

Other business income

3

4

9

10

9

Other business expenses

3

(16)

(1)

(19)

(2)

88

97

149

162

6

11

11

26

(37)

(32)

(72)

(63)

Income from operations
Financial income

8

Financial expenses
Results relating to investments in associates

—

(1)

—

(1)

Income before taxes

57

76

88

124

(12)

(13)

(15)

(17)

45

63

73

107

Net income (loss) attributable to shareholders of Signify N.V.

41

62

66

106

Net income (loss) attributable to non-controlling interests

4

2

7

1

Basic

125,913

126,244

125,948

126,218

Diluted127,367

127,825

127,806

127,804

Basic

0.32

0.49

0.52

0.84

Diluted

0.32

0.48

0.52

0.83

Income tax expense
Net income

4

Attribution of net income for the period:

Earnings per ordinary share attributable to shareholders
Weighted average number of ordinary shares outstanding used for
calculation (in thousands):

Net income attributable to shareholders per ordinary share in EUR:

The accompanying notes are an integral part of these condensed consolidated financial statements.

14

1.2

Condensed consolidated statement of comprehensive income

in millions of EUR
Second quarter

January to June

2023

2024

2023

2024

45

63

73

107

Remeasurements

—

—

—

4

Income tax effect on remeasurements

—

—

—

(1)

—

—

—

3

Net current period change, before tax

(41)

23

(100)

106

Income tax effect

—

—

—

—

Net income (loss)
Pensions and other post-employment plans:

Total of items that will not be reclassified to profit or loss
Currency translation differences:

Cash flow hedges:
Net current period change, before tax

(6)

1

11

3

Income tax effect

2

—

(3)

(1)

Total of items that are or may be reclassified to profit or loss

(45)

24

(91)

108

Other comprehensive income (loss)

(45)

24

(91)

111

Total comprehensive income (loss)

—

87

(19)

218

Shareholders of Signify N.V.

—

84

(19)

214

Non-controlling interests

—

2

1

4

Total comprehensive income (loss) attributable to:

The accompanying notes are an integral part of these condensed consolidated financial statements.

15

1.3

Condensed consolidated statement of financial position

In millions of EUR
Note

December 31, 2023

June 30, 2024

Non-current assets
Property, plant and equipment

1

633

608

Goodwill

1

2,755

2,838

Intangible assets, other than goodwill

1

641

623

12

12

Investments in associates
Financial assets

8

Deferred tax assets
Other assets
Total non-current assets

91

41

402

385

32

26

4,566

4,531

1,050

1,074

Current assets
Inventories
Financial assets

8

Other assets
Derivative financial assets

8

Income tax receivable
Trade and other receivables
Cash and cash equivalents

8

Assets classified as held for sale

2

—

147

168

14

10

54

69

1,012

1,004

1,158

567

—

—

Total current assets

3,438

2,893

Total assets

8,004

7,424

2,817

2,844

EquityShareholders’ equity

5

Non-controlling interests
Total equity

129

121

2,947

2,965

1,192

1,158

322

306

263

202

Non-current liabilities
Debt

6

Post-employment benefits
Provisions

7

Deferred tax liabilities

20

18

Income tax payable

79

68

Other liabilities
Total non-current liabilities

154

152

2,030

1,904

574

Current liabilities
Debt, including bank overdrafts

6

1,038

Derivative financial liabilities

8

17

5

20

21

1,539

1,500

206

226

Income tax payable
Trade and other payables
Provisions
Other liabilities

7

206

229

Total current liabilities

3,027

2,555

Total liabilities and total equity

8,004

7,424

The accompanying notes are an integral part of these condensed consolidated financial statements.

16

1.4

Condensed consolidated statement of cash flows

In millions of EUR
Note

Second quarter

January to June

2023

2024

2023

2024

Cash flows from operating activities
Net income (loss)
Adjustments to reconcile net income (loss) to net cash provided by operating
activities:

45

63

73

107

159

133

335

274

• Depreciation, amortization and impairment of non-financial assets

67

64

139

132

13

—

8

—

11

9

21

17

• Net gain on sale of assets

3• Net interest expense on debt, borrowings and other liabilities• Income tax expense

4

12

13

15

17

• Additions to (releases of) provisions

7

31

24

103

64

• Additions to (releases of) post-employment benefits

6

6

11

6

• Other items

20

16

39

38
(14)

Changes in working capital:

(9)

(15)

(62)

• Changes in trade and other receivables

15

(24)

70

60

• Changes in inventories

40

(7)

49

(12)

• Changes in trade and other payables

(54)

33

(190)

(37)

• Changes in other current assets and liabilities

(10)

(17)

9

(26)

Changes in other non-current assets and liabilities
Utilizations of provisions

7

1

(3)

10

1

(33)

(56)

(75)

(112)
(18)

Utilizations of post-employment benefits

(8)

(8)

(17)

Net interest and financing costs received (paid)

(32)

(28)

(35)

(31)

Income taxes paid

(15)

(16)

(38)

(34)

Net cash provided by (used for) operating activities

109

70

190

173

Net capital expenditures:

(21)

(20)

(51)

(42)

• Additions of intangible assets

(17)

(10)

(31)

(22)

• Capital expenditures on property, plant and equipment

(9)

(11)

(26)

(24)

• Proceeds from disposal of property, plant and equipment

5

1

6

3

Net proceeds from (cash used for) derivatives and other financial assets

(3)

(5)

10

—

Cash flows from investing activities

Purchases of businesses, net of cash acquired
Net cash provided by (used for) investing activities

—

—

(14)

—

(25)

(25)

(56)

(42)

(166)

Cash flows from financing activities
Dividend paid

5

(168)

(166)

(168)

Proceeds from issuance of debt

6

9

—

9

179

Repayment of debt

6

(24)

(694)

(47)

(713)

—

(12)

—

(12)

—

(14)

—

(14)

Net cash provided by (used for) financing activities

(184)

(885)

(206)

(727)

Net cash flows
Effect of changes in exchange rates on cash and cash equivalents and bankoverdrafts

(100)

(840)

(71)

(596)

Capital reduction to minority shareholders
Purchase of treasury shares

5

Cash and cash equivalents and bank overdrafts at the beginning of the period
Cash and cash equivalents and bank overdrafts at the end of the period

2

1

(9)

4

(21)

4

693

1,402

676

1,158

583

566

583

566

16

19

33

28

Non-cash investing and financing activities:
Acquisition of fixed asset by means of leases
1
2

For Q2 2024 and Q2 2023, included bank overdrafts of EUR 1 million and EUR 1 million, respectively. For the first half of 2024 and 2023, included bank overdrafts of EUR 0 million and EUR 1
million, respectively.
Included bank overdrafts of EUR 1 million and EUR 0 million as at June 30, 2024 and 2023, respectively.

The accompanying notes are an integral part of these condensed consolidated financial statements.

17

1.5

Condensed consolidated statements of changes in equity

In millions of EUR
Currency
Retained translation
earnings differences

SharecapitalSharepremium

Balance as at January 1, 2023

1

2,139

864

Net Income——

Other comprehensive income(loss)——

Total comprehensive income(loss)—

Dividend distributed—

Purchase of treasury shares—

Delivery of treasury shares
Share-based compensation
plans

—
—

Hyperinflation adjustment—

Balance as at June 30, 2023

Total
shareNonholders' controlling
equityinterests

EquityCash flow
hedgesTreasuryshares

67

(20)

(131)

2,920

145

3,065

66

—

—

—

66

7

73

—

(94)

9

—

(85)

(6)

(91)

—

66

(94)

9

—

(19)

1

(19)

—

(189)

—

—

—

(189)

(9)

(198)

—

—

—

—

(7)

(7)

—

(7)

(35)

(22)

—

—

56

—

—

—

10

—

—

—

—

10

—

10

—

3

—

—

—

3

—

3

1

2,114

722

(27)

(11)

(82)

2,717

137

2,853

Balance as at January 1, 2024

1

2,120

851

(72)

(1)

(82)

2,817

129

2,947

Net Income

—

—

106

—

—

—

106

1

107

Other comprehensive income(loss)

—

—

3

103

2

—

108

3

111

Total comprehensive income(loss)

—

—

109

103

2

—

214

4

218

Movement in non-controllinginterests

—

—

—

—

—

—

—

(12)

(12)

Dividend distributed

—

—

(196)

—

—

—

(196)

—

(196)

Purchase of treasury shares

—

—

—

—

—

(14)

(14)

—

(14)

Delivery of treasury shares

—

(9)

(7)

—

—

16

—

—

—

Share-based compensation
plans

—

19

—

—

—

—

19

—

19

Hyperinflation adjustment

—

—

3

—

—

—

3

—

3

Balance as at June 30, 2024

1

2,130

759

31

1

(79)

2,844

121

2,965

The accompanying notes are an integral part of these condensed consolidated financial statements.

18

2 Notes to the consolidated
interim financial statements
All amounts are in millions of euros unless otherwise stated. Due to rounding, amounts may not add up to totals
provided.

2.1

Reporting entity

Signify N.V. is a public company with limited liability
incorporated under the laws of the Netherlands andlisted on Euronext Amsterdam under the symbol‘LIGHT’.
As used herein, the term Signify is used for Signify
N.V. (the 'Company’) and its subsidiaries within themeaning of Section 2:24b of the Dutch Civil Code.
The corporate seat of the Company is in Eindhoven,
the Netherlands, and its registered office is at HighTech Campus 48, 5656 AE Eindhoven. The Company
is registered in the Commercial Register of the
Chamber of Commerce under number 65220692.

2.2

Basis of preparation

The condensed consolidated interim financial
statements have been prepared in accordance with
IAS 34 ‘Interim Financial Reporting’ as adopted by
the European Union. Several amendments apply tothe accounting standards for the first time in 2024,
but do not have a material impact on the condensed
consolidated interim financial statements of Signify.
The income tax expense is recognized based on
management’s estimate of the weighted average
effective annual income tax rate expected for thefull year.
The accounting policies applied in the condensed
consolidated interim financial statements are
consistent with those applied in the Consolidated
financial statements for the year ended December
31, 2023.

Macroeconomic and geopoliticalenvironment
Signify continuously monitors the developments inthe macroeconomic and geopolitical environment.
During the six-month period ended June 30, 2024,
there was no significant change compared to ourassessment as disclosed in the Consolidated
financial statements for the year ended December
31, 2023.

across its entire value chain against a 2019 baseline
and reach net-zero by 2040. The plan builds on
Signify's long-established leadership in transforming
the lighting industry.
During the six-month period ended June 30, 2024,
there was no significant change compared to ourassessment as of December 31, 2023.
In particular:• In relation to Conventional Products, Signify did
not identify any significant impacts resulting fromthe commitments made in this respect in thevaluation of its property, plant and equipment andintangible assets (including goodwill). For moredetails, reference is made to note 1, Basis ofpreparation - Climate related matters in theConsolidated financial statements for the year
ended December 31, 2023. These commitments
include the implementation of the action planssuch as phasing out of conventional lighting,upgrading our buildings and lighting, and optimizing
the energy use in our factories and non-industrial
facilities.
• Signify did not identify any material additional
provisions for environmental liabilities and risks
beyond the ones already provided for as of June30, 2024. For more details, reference is made tonote 24, Provisions in the Consolidated financial
statements for the year ended December 31,
2023.

Changes to segment reporting
As announced on December 1, 2023, Signify has
adapted its organization structure along four
verticalized businesses with full profit and loss
responsibility: Professional, Consumer, OEM andConventional. The new organizational structure
became effective on April 1, 2024 following
completion of proceedings with Signify's social
partners.

Climate-related matters
Signify continuously monitors risks and opportunities
related to climate change. On June 18, 2024, Signify
released the Signify Climate Transition Plan toreduce greenhouse gas (GHG) emissions by 90%

19In line with this change, effective Q1 2024, Signify's
reportable segments are Professional, Consumer,
OEM and Conventional:• The Professional business will offer LED lamps,
luminaries, connected lighting systems andservices to customers in the professional
segment.
• The Consumer business will offer LED lamps,
luminaries, and connected products, including
Philips Hue and 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.
The reportable segments are based on customer
type (Professional, Consumer, OEM), except for
Conventional, which is dedicated to conventional
lighting technologies.
The Consumer and Professional reportablesegments include operating segments, organizedbased on geography, which are aggregated to form
the reportable segments. The aggregated operating
segments are similar in respect of the nature of
products, production processes, customer anddistribution method. In addition, long term grossmargins relative to sales are expected at similarlevel.

Prior period comparative figures have been restatedin line with the updated reportable segments andreallocation of central costs. Refer to note 1,
Information by segment and main country forrestated comparative figures.
Goodwill is allocated to cash-generating units, which
represent the lowest level at which the goodwill ismonitored internally for impairment review.
Previously, the cash-generating units for goodwill
were the three Divisions. As a result of theorganizational changes, the cash-generating units
for goodwill have also been updated to correspondto the new operating segments.

Critical accounting judgments and key
sources of estimation uncertainty
The preparation of the condensed consolidated
interim financial statements requires management tomake judgments, estimates and assumptions that
affect the application of accounting policies and thereported amounts of assets, liabilities, income andexpenses. Actual results may differ from theestimates.
Except as disclosed in previous paragraphs, theareas where the most significant judgments andestimates are made, were the same as those
disclosed in the Consolidated financial statements
for the year ended December 31, 2023.

Following the implementation of the new structure,each of these four businesses will be fully
responsible for its end-to-end processes including
offer development, manufacturing and sales &marketing. As a result, part of the central costs havebeen reallocated to the four vertically integrated
businesses. 'Other' represents amounts notallocated to the operating segments and mainly
includes costs related to ventures, exploratory
research and audits.

20

2.3

Notes

1

Information by segment and main country

The following is an overview of Signify's sales and results by segment. Comparative figures for 2023 have been restated as described in 2.2 Basis of preparation.
Second Quarter
Professional

4

ConsumerOEM

Conventional

January to June
Other

5

Intersegment
elimination

Signify

Professional

4

ConsumerOEM

5

Conventional

Other

Intersegment
elimination

Signify

2024
Sales to external customers

959

297

106

114

7

Sales including intersegment

960

320

132

115

8

Depreciation and amortization

(21)

(5)

(3)

(3)

Adjusted EBITA

78

21

12

18

8.1%

7.1%

10.9%

15.7%

1

Adjusted EBITA as a % of sales

1,483

1,902

596

208

234

12

1,483

1,905

636

261

235

12

(15)

(47)

(41)

(11)

(5)

(9)

(32)

(11)

118

148

52

21

39

(20)

7.9%

7.8%

8.8%

9.9%

16.7%

(52)

2,951
(98)

2,951
(98)
240
8.1%

Restructuring

(9)

(31)

Acquisition-related charges

(2)

(5)

Incidental items
EBITA

2

Amortization

3

8

(7)

115

196

(18)

(35)

Income from operations

97

162

Financial income and expenses

(21)

(37)

Results from investments in associates

(1)

(1)

Income before taxes

76

124

2023
Sales to external customers

1,059

312

108

160

5

Sales including intersegment

1,060

333

140

161

5

(20)

(4)

(3)

(6)

89

17

8

32

8.4%

5.5%

7.2%

19.9%

Depreciation and amortization

1

Adjusted EBITA
Adjusted EBITA as a % of sales

3
4
5

639

223

346

9

2,106

682

289

347

10

(15)

(48)

(40)

(10)

(5)

(11)

(31)

(10)

136

173

37

19

73

(17)

8.3%

8.2%

5.8%

8.5%

21.2%

3,322
(112)

3,322
(97)
285
8.6%

(9)

Acquisition-related charges

(3)

(6)

Incidental items

(16)

(32)

2

Amortization

2

2,105

1,644

Restructuring

EBITA

1

1,644
(56)

3

(57)

108

190

(20)

(41)

Income from operations

88

149

Financial income and expenses

(31)

(61)

Results from investments in associates——

Income before taxes

57

88

Excluding amortization and impairments of acquisition-related intangible assets and goodwill
Income from operations excluding amortization and impairments of acquisition-related intangible assets and goodwill ('EBITA')
Amortization and impairments of acquisition-related intangible assets and goodwill
Includes Intelligent Lighting Controls since March 1, 2023
Considering the nature of Other, Adjusted EBITA as a % of sales for Other is not meaningful21Following the implementation of the neworganization structure, the key segmental
performance measure is Adjusted EBITA. Adjusted
EBITA is not a recognized measure of financial
performance under IFRS, and represents income
from operations excluding amortization andimpairments of acquisition-related intangible assets
and goodwill, restructuring costs, acquisitionrelated charges, and other incidental items.

3

2023

2024

Result on disposal of businesses

5—

Incidental items of EUR 7 million for the six-month
period ended June 30, 2024 were related to the
one-day FX loss from the devaluation of theEgyptian Pound by the Egyptian government (EUR 10
million, mainly in "Professional"), environmental
provisions for inactive sites and the discounting
effect of long-term provisions (EUR 6 million, mainly
in "Other"), gains from the movements in theindemnification positions with Koninklijke Philips N.V.
originating from the separation (EUR 8 million, in"Other") and other items with an effect of EUR 1
million gain.

Result on disposal of fixed assets

(13)

—

Result on other remaining businesses(1)7

Other business income and expenses(9)7

Total other business income

109Total other business expense

(19)

(2)

Incidental items of EUR 32 million for the six-month
period ended June 30, 2023 were related to results
on real estate transactions (EUR 13 million in'Other'), environmental provisions for inactive sites
and the discounting effect of long-term provisions(EUR 15 million, mainly in Conventional), operations in
Russia and Ukraine (EUR 4 million, in Professional andConventional), and other insignificant items.
Sales between the segments mainly relate to the
supply of goods. The pricing of such transactions isdetermined on an ‘arm’s length basis’.
Sales and tangible and intangible assets arereported based on the country of origin as follows:
Sales
January toJune 2023

Tangible and intangible
1,2
assets1

January toJune 2024

December31, 2023

June 30,
2024

Netherlands

223

212

596

595

United States

1,124

1,039

2,490

2,550

China

217

184

274

265

Germany

189

160

9

8

Other
countries

1,569

1,356

660

650

Total
countries

3,322

2,951

4,029

4,069

1
2

2

Includes Intelligent Lighting Controls since March 1, 2023.
Includes goodwill

Disaggregated revenue information

Information on sales per segment is disclosed innote 1, Information by segment and main country.
For the six-month period ended June 30, 2024,
sales consisted primarily (97%) of sales of goods tocustomers (January to June 2023: 97%)

Other business income andexpenses

Other business income and expenses consist of thefollowing:
January to June

For the six-month period ended June 30, 2024, theresult on other remaining businesses includes EUR 8
million income from the movements in theindemnification positions with Koninklijke Philips N.V.
originating from the separation.
For the six-month period ended June 30, 2023, theresult on disposal of fixed assets mainly relates to a
provision recognized regarding a prior year realestate transaction in 'Other'.

4

Income taxes

The income tax expense in the six-month period
ended June 30, 2024 increased by EUR 2 million
compared to the corresponding period of theprevious year mainly due to higher income before
tax, partly offset by releases of tax provisions.
The effective tax rate for the six-month period
ended June 30, 2024, was 14.1% compared to 17.2%
in 2023.

Pillar Two
The Pillar Two legislation is effective for Signify's
financial year beginning January 1, 2024. Signify is in
scope of the legislation and has performed anassessment of Signify’s potential exposure to Pillar
Two income taxes. The assessment of the potential
exposure to Pillar Two income taxes is based onprior year country-by-country reporting and IFRS
financial data for the constituent entities included in
the IFRS financial statements of Signify. During thesix-month period ended June 30, 2024, there wasno significant change compared to our assessment
as disclosed in the Consolidated financial
statements for the year ended December 31, 2023.

5

EquityDividend distribution
In June 2024, the Company settled a dividend of EUR
1.55 per ordinary share, representing a total valueof EUR 196 million including costs. An amount of EUR
166 million was paid in cash and the remaining
dividend tax liability of EUR 25 million, presented in
Other liabilities as at June 30, 2024 was paid in July.

22

Share repurchases

Eurobonds

During the six-month period ended June 30,
2024, the Company purchased shares to coverobligations arising from its long-term incentive
performance share plans and other employee
share plans. The total number of shares
repurchased was 513,800 for a total
consideration of EUR 14 million.

In May 2024, EUR 675 million of fixed rate notes withan annual coupon of 2.000% matured and were
repaid.
There were no other material changes in Signify's
gross debt structure.

Treasury shares

7

As at June 30, 2024, the total number of treasury
shares amounted to 2,186,695, which werepurchased at an average price of EUR 36.10 per
share.

6

Debt
December 31,
2023

June 30,
2024

Term loan (EUR)

501

679

Term loan (USD)

203

210

Eurobonds

1,271

597

Lease liabilities

237

229

Other debt
Subtotal

18

16

2,229

1,731

Bank overdrafts—

1

Gross debt

2,230

1,732

Cash and cash equivalents(1,158)(567)

Net debt (cash)

1,071

1,165

Total equity

2,947

2,965

Net debt and total equity

4,018

4,131

Net debt divided by net debt andtotal equity (in %)

27%

28%

Total equity divided by net debt
and total equity (in %)

73%

72%

Term loans

Provisions

Additions of restructuring provisions during the sixmonth period ended June 30, 2024, included thestructural cost reduction program andrestructuring programs in Professional. Utilizationsof restructuring provision were related to programsin Professional and 'Other'. Balance of restructuringprovisions as of June 30, 2024 was related to thestructural cost reduction program and programs inConventional in Belgium.
During the six-month period ended June 30, 2024,
there was no significant change compared to ourassessment of legal provisions as disclosed in theConsolidated financial statements for the year
ended December 31, 2023.
During the six-month period ended June 30, 2024,
Signify reclassified majority of the legal provisions
and the related insurance cover asset from longterm to short-term, as these positions are expected
to be settled within a year.
For more information, refer to note 24, Provisions in
the Consolidated financial statements for the year
ended December 31, 2023.
Provisions are summarized as follows:

In January 2024, the remaining EUR 178 million of the
EUR 400 million long-term loan agreement enteredin December 2023 was received. This agreement
bears interest at a variable rate based on therelevant applicable EURIBOR plus fixed margin of
1.30% and is maturing in December 2026.

Restructuring Environmental

Product
warranty

Legal

Other

Total

Balance as at January 1, 2024

121

99

103

50

95

470

Additions

33

9

21

2

8

72

Utilizations

(74)

(5)

(24)

—

(9)

(112)

Releases

(8)

—

—

—

(1)

(9)

Translation differences and other movements

1

1

2

1

1

7

Balance as at June 30, 2024

74

105

102

54

93

428

Short-term

70

31

55

47

23

226

Long-term

4

74

47

6

70

202

23

8

Financial assets and liabilities

Fair value hierarchy

The valuation techniques and inputs used to develop
measurements for financial assets and liabilities are
consistent with those disclosed in the Consolidated
financial statements for the year ended December
31, 2023.

Financial risk management
The company assessed global macroeconomic
developments and concluded that no materialchanges to the existing financial risk management
objectives were necessary. These objectives are
consistent with those disclosed in the Consolidated
financial statements for the year ended December
31, 2023.

During the six-month period ended June 30, 2024,
Signify recognized a loss of EUR 7 million in Financial
income and expenses related to Signify's
participation in Virtual Power Purchase Agreements,
which are included in Derivative financial assets notdesignated as hedging instruments. This non-cash
loss results from a fair value remeasurement ascalculated per balance sheet date.

Gross amountrecognizedon thebalancesheet

Amounts notoffset on thebalance sheet,but subject tomaster netting
arrangements

Net amountamortized cost

21

—

21

fair value (FVOCI)

5

—

5

1,004

—

1,004

10

(4)

6

2

3

Carried at

Fair value
hierarchy Estimated fair
level
value

Balance as at June 30, 2024
Non-current financial assets

1

Unquoted equity shares
1, 2Trade and other receivables

amortized cost

Derivative financial assets designated as
hedging instruments

fair value (FVTPL)

Current derivative financial assets notdesignated as hedging instruments

fair value (FVTPL)

Non-current derivative financial assets notdesignated as hedging instruments

fair value (FVTPL)Cash and cash equivalents
Debt (Eurobonds)

15

—

15

567

—

567

21
3

5
1,004
10

19
567

amortized cost

(597)

—

(597)

1

(579)

Debt (excluding Eurobonds)

amortized cost

(1,135)—(1,135)2(1,135)Derivative financial liabilities designated as
hedging instruments

fair value (FVTPL)

2

1

(6)

4

(2)

(1,497)—(1,497)

fair value (FVTPL)

(3)

—

(3)

amortized cost

65

—

65

fair value (FVOCI)

4

—

4

amortized cost

1,012

—

1,012

Derivative financial assets designated as
hedging instruments

fair value (FVTPL)

14

(12)

3

2

14

Current derivative financial assets notdesignated as hedging instruments

fair value (FVTPL)

2

—

2

1

2

Non-current derivative financial assets notdesignated as hedging instruments

fair value (FVTPL)

3

1

Trade and other payables

amortized cost

Contingent considerations(6)(1,497)

3(3)

Balance as at December 31, 2023
Non-current financial assets

1, 2Unquoted equity shares
Trade and other receivables

1

Cash and cash equivalents
Debt (Eurobonds)

22

—

22

1,158

—

1,158

65
3

4
1,012

27
1,158

amortized cost

(1,271)—(1,271)1(1,250)Debt (excluding Eurobonds)

amortized cost

(959)

—

(959)

2

(959)

Derivative financial liabilities designated as
hedging instruments

fair value (FVTPL)

2

1

1

Trade and other payables

amortized cost

Contingent considerations

fair value (FVTPL)

1
2

9

(17)

12

(5)

(1,537)—(1,537)

(3)

—

(3)

(17)
(1,537)3(3)

In view of the nature, maturity or the magnitude of the amounts, Signify considers that the fair value of non-current financial assets, trade and other receivables, debt (excluding Eurobonds),
trade and other payables are not materially different from their carrying value.
Includes the insurance cover asset related to the legal case as disclosed in note 7, Provisions.

Events after the balance sheet date

No subsequent events occurred that are material to Signify.

24

Appendix A - Reconciliation of non-IFRS financial measures
Sales growth composition per business in %Second quarter
Comparable
growthCurrency effects

Consolidation effects

Nominal growth(9.5)

2024 vs 2023
Professional

(8.3)

(1.1)

0.0

Consumer

(2.4)

(2.3)

0.0

(4.7)

0.1

(2.7)

0.0

(2.5)
(28.3)OEM
Conventional(27.6)

(0.7)

0.0

Other

52.4

(4.3)

0.0

48.2

Signify

(8.4)

(1.4)

0.0

(9.8)

Consolidation effects

Nominal growthSecond quarter
Comparable
growthCurrency effects

2023 vs 2022
Professional

(4.2)

(2.4)

1.6

(5.1)

Consumer(11.1)(3.6)

0.0(14.7)

OEM(28.2)(3.5)

0.1(31.5)

Conventional(15.0)(2.3)

0.0(17.3)

Other

31.0

(8.4)

0.0

22.6

Signify

(8.6)

(2.8)

0.9

(10.5)

Consolidation effects

Nominal growth(9.6)

January to June
Comparable
growthCurrency effects

2024 vs 2023
Professional

(8.0)

(1.8)

0.1

Consumer

(4.1)

(2.7)

0.0

(6.8)

OEM

(3.7)

(2.9)

0.0

(6.6)

Conventional(32.3)(31.0)

(1.2)

0.0

Other

29.1

(4.7)

0.0

24.4

Signify

(9.2)

(2.0)

0.1

(11.2)

Consolidation effects

Nominal growth

January to June
Comparable
growthCurrency effects

Professional

(5.3)

(0.4)

2.6

(3.0)

Consumer(13.1)(2.1)

0.0(15.2)

OEM(22.8)(2.0)

0.1(24.7)

Conventional(11.6)(0.7)

0.0(12.4)

Other

0.7

(4.5)

0.0

(3.8)

Signify

(8.9)

(1.0)

1.5

(8.3)

2023 vs 2022

25

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

Professional

ConsumerOEM

Conventional

Other

Adjusted EBITA

118

78

21

12

18

(11)

Restructuring(9)

Acquisition-related charges

(2)

89

17

8

32

(10)

Signify

Professional

ConsumerOEM

Conventional

Other

Adjusted EBITA

240

148

52

21

39

(20)

Restructuring(31)

Acquisition-related charges

(5)

173

37

19

73

(17)

Second quarter 2024

Incidental items

8

EBITA
Amortization

115
1

Income from operations (or EBIT)

(18)
2

97

Second quarter 2023
Adjusted EBITA

136

Restructuring(9)

Acquisition-related charges(3)

Incidental items

(16)

EBITA

108

Amortization

1

Income from operations (or EBIT)
1
2

(20)
2

88

Amortization and impairments of acquisition-related intangible assets and goodwill.
For a reconciliation to income before taxes, refer to note 1, Information by segment and main country.

January to June 2024

Incidental items

(7)

EBITA
Amortization

196
1

Income from operations (or EBIT)

(35)
2

162

January to June 2023
Adjusted EBITA

285

Restructuring(57)

Acquisition-related charges(6)

Incidental items

(32)

EBITA

190

Amortization

1

Income from operations (or EBIT)
1
2

(41)
2

149

Amortization and impairments of acquisition-related intangible assets and goodwill.
For a reconciliation to income before taxes, refer to note 1, Information by segment and main country.

Amounts may not add up due to rounding.

26

Second quarter Income from operations to Adjusted EBITA in millions of EUR

Reported

Restructuring

Acquisitionrelated
charges

Incidental
1
items

Adjusted

Second quarter 2024
Sales

1,483

—

—

—

1,483

Cost of sales

(895)

10

1

—

(885)

Gross margin

588

10

1

—

598

Selling, general and administrative expenses

(429)

(1)

1

1

(428)

Research and development expenses

(69)

(1)

—

—

(69)

Indirect costs

(498)

(1)

1

1

(497)

Impairment of goodwill

—

—

—

—

—

Other business income

9

—

—

(8)

—

Other business expenses

(1)

—

—

—

(1)

Income from operations

97

9

2

(8)

100

Amortization

(18)

—

—

—

(18)

Income from operations excluding amortization (EBITA)

115

9

2

(8)

118

Sales

1,644

—

—

—

1,644

Cost of sales(1,010)3

1

1(1,005)

Second quarter 2023

1

Gross margin

633

3

1

1

639

Selling, general and administrative expenses

(464)

5

2

2

(454)

Research and development expenses

(69)

1

—

—

(68)

Indirect costs

(533)

6

3

2

(523)

Impairment of goodwill

—

—

—

—

—

Other business income

4

—

(2)

(1)

1

Other business expenses

(16)

—

1

13

(1)

Income from operations

88

9

3

16

116

Amortization

(20)

—

—

—

(20)

Income from operations excluding amortization (EBITA)

108

9

3

16

136

Q2 2024: Incidental items are non-recurring by nature and are related to gains from the movements in the indemnification positions with Koninklijke Philips N.V. originating from the separation(EUR 8 million, in "Other") and other items with an effect of EUR 1 million loss.
Q2 2023: Incidental items are non-recurring by nature and relate to results on real estate transactions (EUR 13 million, in 'Other'), environmental provision for inactive sites and discounting
effect of long-term provisions (EUR 4 million, mainly in Conventional) and other items with an effect of EUR 1 million gain.

Amounts may not add up due to rounding.

27

January to June Income from operations to Adjusted EBITA in millions of EUR

Reported

Restructuring

Acquisitionrelated
charges

Incidental
1
items

Adjusted

January to June 2024
Sales

2,951

—

—

—

2,951

Cost of sales(1,781)22

1

10(1,747)Gross margin

1,170

22

1

10

1,204

Selling, general and administrative expenses

(876)

9

3

5

(859)

Research and development expenses

(139)

—

—

—

(139)

(1,016)

9

4

5

(998)

Impairment of goodwill

—

—

—

—

—

Other business income

9

—

—

(8)

1

Other business expenses

(2)

—

—

—

(1)

Income from operations

162

31

5

7

205

Amortization

(35)

—

—

—

(35)

Income from operations excluding amortization (EBITA)

196

31

5

7

240

Indirect costs

January to June 2023
Sales

3,322

—

—

—

3,322

Cost of sales(2,083)40

2

18(2,023)Gross margin

1,239

40

2

18

1,298

Selling, general and administrative expenses

(935)

14

5

1

(915)

Research and development expenses

(145)

3

—

—

(143)

(1,081)16

5

1(1,058)

Impairment of goodwill

—

—

—

—

—

Other business income

10

—

(2)

(1)

7

Other business expenses

(19)

—

1

14

(4)

Income from operations

149

57

6

32

244

Amortization

(41)

—

—

—

(41)

Income from operations excluding amortization (EBITA)

190

57

6

32

285

Indirect costs

1

H1 2024: Incidental items are non-recurring items by nature and are related to the one-day FX loss from the devaluation of the Egyptian Pound by the Egyptian government (EUR 10 million,
mainly in "Professional"), environmental provisions for inactive sites and the discounting effect of long-term provisions (EUR 6 million, mainly in "Other"), gains from the movements in theindemnification positions with Koninklijke Philips N.V. originating from the separation (EUR 8 million, in "Other") and other items with an effect of EUR 1 million gain.
H1 2023: Incidental items are non-recurring by nature and relate to results on real estate transactions (EUR 13 million, in 'Other'), environmental provision for inactive sites and discounting
effect of long-term provisions (EUR 15 million, mainly in Conventional), operations in Russia and Ukraine (EUR 4 million, in Professional and Conventional) and other insignificant items.

Amounts may not add up due to rounding.

28Composition of cash flows in millions of
EUR
Second quarter

Working capital to total assets in millions of
EUR

January to June

2023

2024

2023

2024

Cash flows fromoperating activities

109

70

190

173

Cash flows frominvesting activities

Eliminate liabilities
comprised in working
capital:

(25)

(25)

(56)

(42)

• Trade and other payables131• Derivative financial
liabilities

Cash flows before
financing activities

84

46

134

Cash flows fromoperating activities

109

70

190

173

Net capital
expenditures:

(21)

(20)

(51)

(42)

• Additions ofintangible assets

(17)

(10)

(31)

(22)

• Capital expenditureson property, plant andequipment

(9)

(11)

(26)

Working capital• Other current liabilities

1• Non-current assets

1

6

3

Free cash flows

88

51

139

131

June 30,
2024

640

461

502

1,608

1,539

1,500

54

17

5

206

206

203

4,673

4,566

4,531

• Income tax receivable

57

54

69

• Cash and cash
equivalents

584

1,158

567

1

—

—

• Assets classified as held
for sale5

December31, 2023

Include assets notcomprised in working
capital:(24)• Proceeds from
disposal of property,
plant and equipment

June 30,2023• Trade and other2
receivables
Total assets
1
2

—

—

46

7,822

8,004

7,424

As at June 30, 2024 and 2023, Other current liabilities exclude EUR 25 million and EUR
26 million of dividend-related payable, respectively.
Trade and other receivables amounting to USD 49 million of insurance receivables forwhich a legal provision is recognized for the same amount as at June 30, 2024.

29

Appendix B – 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 items.

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.

EBITDA

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

Consolidation effects

In the event a business is acquired (or divested), theimpact of the consolidation (or de-consolidation) on
the Group’s figures is included (or excluded) in thecalculation of the comparable sales growth figures.

Currency effects

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.

Adjusted indirect costs

Free cash flow

Adjusted R&D expenses

Gross margin

Indirect costs, excluding restructuring costs,
acquisition-related charges, and other incidental
items attributable to indirect costs.

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.

Brighter lives revenues

Percentage of total revenues coming from all
products, systems and services contributing to Foodavailability, Safety & security, or Health & well-being.

Circular revenues

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

Comparable sales growth (CSG)

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

EBIT

Net cash provided by operating activities minus net
capital expenditures. Free cash flow includes
interest paid and income taxes paid.

Sales minus cost of sales.

Incidental items

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.

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.

Income from operations.

EBITA

Income from operations excluding amortization andimpairment of acquisition-related intangible assets
and goodwill.

30

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).

31