Press Release
January 26, 2024

Signify reports full-year sales of EUR 6.7 billion, operational profitability of 10.0% and a free
cash flow of 8.7% of sales
Full year 20231• Signify's installed base of connected light points increased from 114 million at YE 22 to 124 million at YE 23• On track for three Brighter Lives, Better World 2025 sustainability program commitments• Sales of EUR 6,704 million; nominal sales decline of -10.8% and CSG of -8.3%• LED-based sales represented 85% of total sales (FY 22: 83%)
• Adj. EBITA margin of 10.0% (FY 22: 10.1%)• Net income of EUR 215 million (FY 22: EUR 532 million incl. one-time effects of EUR 184 million)• Free cash flow of EUR 586 million (FY 22: EUR 445 million), representing 8.7% of sales
Fourth quarter 2023
• Sales of EUR 1,734 million; nominal sales decline of -12.3% and CSG of -7.7%• Adj. EBITA margin of 12.1% (Q4 22: 10.2%)• Net income of EUR 59 million (Q4 22: EUR 86 million)• Free cash flow of EUR 295 million (Q4 22: EUR 364 million)
Dividend• Proposal to increase its cash dividend to EUR 1.55 per share over 2023 (FY 22: EUR 1.50)
Eindhoven, the Netherlands – Signify (Euronext: LIGHT), the world leader in lighting, today announced thecompany’s fourth quarter and full-year 2023 results.
“In Q4, our gross margin was again strong, confirming our improving operational performance. This brought our
adjusted EBITA margin into double digits for the full year. While we continued to face adverse market conditions
in some geographies and in the consumer and OEM segments, we have gained share with our professional
connected systems. We over-delivered against our free cash flow guidance, with close to EUR 600m in cash,
representing 8.7% of sales. We are also proud to have surpassed the circular revenues sustainability target two
years ahead of schedule. I would like to thank our employees and partners for their continued hard work anddedication to help us achieve these results,” said Eric Rondolat, CEO of Signify.
“While we anticipate challenging conditions will persist through the year ahead, I am confident in our strategy
and in our proven ability to adapt. In the past quarter, we introduced a new operating model and measures thatwill enhance our performance and deliver annualized savings in excess of EUR 200 million. We will continue toprotect our gross margin and enhance our focus on costs. We have developed strategic advantages that will help
us to gain share and improve profitability while generating a strong free cash flow in 2024.”

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
Signify completed the third year of its Brighter Lives, Better World 2025 sustainability program, making
continued progress towards doubling its positive impact on the environment and society by the end of 2025.
Signify is on track to deliver on three of its sustainability program commitments:
Double the pace of the Paris agreement
Signify is on track to reduce emissions across the entire value chain by 40% against the 2019 baseline - double
the pace required by the Paris Agreement. This is driven by Signify's leadership in energy efficient and connected
LED lighting solutions, which significantly reduce emissions during the use phase.
Double Circular revenues
Circular revenues increased to 33%, up 1% over the third quarter, surpassing the 2025 target of 32%. The main
contribution was from serviceable 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 professional luminaires that support the well-being of wildlife.
Double the percentage of women in leadership
The percentage of women in leadership positions remained at 29%, slightly off track versus the 2023 target.
Signify continues its actions to increase representation through focused hiring practices for diversity across alllevels, and through retention and engagement actions to reduce attrition.
In the fourth quarter, Signify received several external recognitions for its leadership in Sustainability. Signify
was included in the DJSI World Index for the 7th consecutive year, was included in the DJSI Europe Index for the
6th time, and achieved the EcoVadis Platinum rating for the 4th consecutive year.

OutlookFor 2024, Signify expects:••

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 impact ofaround EUR 150 million related to the restructuring program and a reduction of US pension liabilities

Capital allocation
Signify proposes a cash dividend of EUR 1.55 per share for 2023, in line with its policy to pay an increasing
annual cash dividend per share year on year. The dividend proposal is subject to approval at the Annual General
Meeting of Shareholders (AGM) to be held on May 14, 2024. Further details will be provided in the agenda for
the AGM.
In line with its aim to maintain a robust capital structure and an investment grade credit rating, Signify expects
to further deleverage its gross debt and reduce its US pension liabilities in 2024.
Signify will continue to invest in organic and inorganic growth opportunities in line with its strategic priorities.

Financial review
2022

Fourth quarter
2023

1,978
734
37.1%

1,734
707
40.8%

-485
-75
-560
28.3%

-445
-75
-520
30.0%

202
10.2%
-36
166

209
12.1%
-101
108

137
-29
-22
86

89
-18
-12
59

364
0.67
34,619295
0.44
31,920change
-7.7%
-4.9%
0.2%
-12.3%
-3.6%

-7.2%

3.5%

-34.7%-35.0%-31.5%

Twelve months2023

in millions of EUR, except percentages

2022

change
-8.3%
-3.3%
0.8%
-10.8%-5.2%

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

7,514
2,806
37.3%

6,704
2,660
39.7%

Adj. SG&A expenses
Adj. R&D expenses
Adj. indirect costs
Adj. indirect costs (as % of sales)-1,877-294-2,17128.9%-1,791-284-2,07531.0%

Adjusted EBITA
Adjusted EBITA margin
Adjusted items
EBITA

762
10.1%
82
844

670
10.0%
-221
449

-12.0%

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

718
-41
-145
532

369
-102
-53
215

-48.6%

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

445
4.18
34,619586
1.61
31,920-4.4%-46.8%-59.6%

Full year
Nominal sales decreased by 10.8% to EUR 6,704 million, including a negative currency effect of 3.3%, mainly due
to the depreciation of the USD and CNY, and a positive effect of 0.8% from the consolidation of Fluence, Pierlite
and Intelligent Lighting Controls. Comparable sales declined by 8.3%, mainly due to weakness in consumer, OEM
and indoor professional lighting. Outdoor professional lighting remained resilient throughout the year.
The Adjusted gross margin improved by 240 bps to 39.7%, mainly due to effective COGS management andpositive sales mix. Adjusted indirect costs as a percentage of sales increased by 210 bps to 31.0%, mainly due toan under-absorption of fixed costs.
Adjusted EBITA was EUR 670 million. The Adjusted EBITA margin was 10.0%, broadly in line with 2022, as thegross margin improvement was offset by an under-absorption of fixed costs.
Restructuring costs were EUR 167 million, acquisition-related charges were EUR 14 million and incidental items
had a net negative impact of EUR 40 million.
Net income decreased to EUR 215 million, mainly due to lower Adjusted EBITA, higher adjusted items andfinancial expenses, partly offset by lower income tax expense. Net income in 2022 included a one-time gain on
the disposal of non-strategic real estate assets of EUR 184 million.
Fourth quarter
Nominal sales decreased by 12.3% to EUR 1,734 million, including a negative currency effect of 4.9%, mainly due
to the depreciation of the US dollar, and a positive effect of 0.2% from acquisitions. Comparable sales declined
by 7.7%, due to persistent weakness in most of Signify's end markets.

The Adjusted gross margin increased by 370 bps to 40.8%, mainly driven by effective COGS management and apositive sales mix effect. Adjusted indirect costs as a percentage of sales increased by 170 bps to 30.0%, mainly
due to under-absorption of fixed costs.
Adjusted EBITA increased to EUR 209 million. The Adjusted EBITA margin increased by 190 bps to 12.1%, mainly
driven by the continued recovery of gross margin.
Restructuring costs were EUR 83 million, reflecting an increase in provisions related to the recently announced
structural cost reduction program. In addition, acquisition-related charges were EUR 5 million and incidental
items had a net negative impact of EUR 13 million. The incidental items were largely related to a one-day FX loss
from the devaluation of the Argentine peso by the Argentinian government.
Net income decreased to EUR 59 million, as higher adjusted EBITA, lower financial expenses and lower income
tax expense were offset by the increase in restructuring costs.
The number of employees (FTE) decreased from 34,619 at the end of Q4 22 to 31,920 at the end of Q4 23. 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.

Digital Solutions
Fourth quarter
2022

2023

1,105
107
9.7%
98
70

1,022
127
12.4%
97
79

Twelve months
change in millions of EUR, unless otherwise indicated-2.9%

Comparable sales growth

-7.5%
18.2%

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

-0.4%
13.3%

2022

2023

4,231
424
10.0%
374
256

3,937
422
10.7%
358
285

change
-5.4%
-6.9%
-0.5%
-4.2%
11.2%

Includes Intelligent Lighting Controls since March 1, 2023, Pierlite since April 29, 2022 and Fluence since May 2, 2022.

Full year
Nominal sales decreased by 6.9% to EUR 3,937 million, including a negative currency effect of 3.1% and apositive effect of 1.5% from the consolidation of Fluence, Pierlite and Intelligent Lighting Controls. Comparable
sales decreased by 5.4%, against a high base of comparison of 7.8% growth in 2022. The Adjusted EBITA marginincreased by 70 bps to 10.7%, mainly driven by gross margin recovery.
Fourth quarter
Nominal sales decreased by 7.5% to EUR 1,022 million, including a negative currency effect of 5.1% and apositive effect of 0.4% from the consolidation of Intelligent Lighting Controls. Comparable sales decreased by
2.9%, as continued strength in professional systems and services was more than offset by softness in indoor
professional and horticulture lighting. The Adjusted EBITA margin increased by 270 bps to 12.4%, mainly driven
by gross margin recovery.

Digital Products
2022

Fourth quarter2023

change in millions of EUR, unless otherwise indicated-9.4%

Comparable sales growth2022

Twelve months
2023

change-10.5%

661
93
14.1%

566
75
13.3%

-14.3%-19.1%

Sales
Adjusted EBITA
Adjusted EBITA margin

2,469
297
12.0%

2,117
205
9.7%

-14.2%-30.9%

80

58-27.8%

EBITA

272

176

-35.4%

78

56-28.3%

Income from operations (EBIT)

265

170

-35.9%

Full year
Nominal sales decreased by 14.2% to EUR 2,117 million, including a negative currency effect of 3.8%.
Comparable sales decreased by 10.5% as growth in LED lamps and luminaires was more than offset by weakness
in the consumer connected and OEM businesses. The Adjusted EBITA margin decreased by 230 bps to 9.7%,
mainly due to an under-absorption of fixed costs.
Fourth quarter
Nominal sales decreased by 14.3% to EUR 566 million, including a negative currency effect of 4.9%. Comparable
sales declined by 9.4% due to continued weakness in consumer and OEM, while consumer connected improved
sequentially. The Adjusted EBITA margin decreased by 80 bps to 13.3%, mainly as a result of under-absorption of
fixed costs, partly offset by a positive sales mix effect.

Conventional Products
Fourth quarter
2022

2023

203
26
12.9%
4
4

136
23
17.3%
21
21

Twelve months
change in millions of EUR, unless otherwise indicated-29.6%

Comparable sales growth-33.0%-9.9%

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

373.9%
374.2%

2022

2023

793
116
14.6%
60
60

627
129
20.6%
62
62

change-18.4%-20.9%
11.2%
2.7%
2.8%

Full year
Nominal sales decreased by 20.9% to EUR 627 million, including a negative currency effect of 2.5%. Comparable
sales decreased by 18.4%. The Adjusted EBITA margin increased by 600 bps to 20.6%, driven by gross margin
recovery and cost discipline.
Fourth quarter
Nominal sales decreased by 33.0% to EUR 136 million, including a negative currency effect of 3.4%. Comparable
sales decreased by 29.6% as the structural decline of the business was exacerbated by the fluorescent bans in
Europe, which came into effect in February and August. The Adjusted EBITA margin increased by 440 bps to17.3%, mainly driven by gross margin recovery.

5

OtherFull year'Other' represents amounts not allocated to the operating segments and includes costs related both to central
R&D activities to drive innovation, and to Group enabling functions. Adjusted EBITA was EUR -86 million (2022:
EUR -75 million) and EBITA was EUR -147 million (2022: EUR 138 million). In 2023, EBITA included restructuringcosts of EUR 59 million, and a negative impact from incidental items and acquisition-related charges of EUR 1
million. In 2022, EBITA included a one-time gain of EUR 184 million related to the disposal of non-strategic realestate assets in Q2 22.
Fourth quarter
Adjusted EBITA was EUR -17 million (Q4 22: EUR -25 million) and EBITA was EUR -67 million (Q4 22: EUR -16
million). EBITA included a negative impact from restructuring costs and acquisition-related charges of EUR 50
million.

Sales by market
Fourth quarter
2022

2023

change

625
756
438
159
1,978

570
654
382
128
1,734

-8.8%
-13.4%-12.9%-19.5%-12.3%

Twelve months
CSG in millions of EUR, except percentages
-8.2%
-7.3%
-4.7%
-16.3%-7.7%

EuropeAmericasRest of the world
Global businesses
Total

2022

2023

change

CSG

2,230
2,978
1,709
597
7,514

2,023
2,633
1,522
526
6,704

-9.3%
-11.6%-11.0%-11.8%-10.8%

-8.7%
-8.9%
-4.7%
-14.4%-8.3%

Americas includes Intelligent Lighting Controls since March 1, 2023. Global businesses include Fluence since May 2, 2022. Rest of the world includes Pierlite sinceApril 29, 2022.

Full year
In 2023, most markets were impacted by softness in the consumer segment, the OEM business and indoor
professional lighting. Outdoor professional lighting showed resilience. In Europe, comparable sales declined by
8.7%, as most markets declined. In the Americas, comparable sales declined by 8.9%, mainly due to the UnitedStates, partly offset by strong growth in Latin America. In the Rest of the World, comparable sales declined by
4.7%, due to weakness across most markets. Global businesses' comparable sales declined by 14.4%, mainly due
to Klite and Fluence.
Fourth quarter
In Europe, comparable sales declined by 8.2%, due to softness in most markets. In the Americas, comparable
sales declined by 7.3%, as solid growth in Latin America and Canada was not able to offset weakness in the
United States. In the Rest of the World, comparable sales declined by 4.7%, due to persistent weakness in mostmarkets. Global businesses' comparable sales declined by 16.3%, mainly due to Fluence.

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

LTM: last twelve months
6,614
6,336

Dec 31, 2022 Sep 30, 2023 Dec 31, 2023
1,361
1,102
-1,859
-41
564
7.5%

1,247
1,093
-1,672
-35
632
9.1%

1,050
1,012
-1,539
-62
461
6.9%

6,275

6

Fourth quarter
Compared to September 2023, working capital decreased by EUR 171 million to EUR 461 million, mainly driven
by a further reduction of inventories, lower receivables and other working capital items, partly offset by lower
payables. As a percentage of last twelve-month sales, working capital decreased by 220 bps to 6.9%.
Compared to December 2022, working capital decreased by EUR 103 million, mainly due to lower inventories,
lower receivables and other working capital items, partly offset by lower payables. As a percentage of lasttwelve-month sales, working capital decreased by 60 bps. Including last twelve-month sales pro forma for
Fluence and Pierlite, working capital decreased by 50 bps.

Cash flow analysis
Fourth quarter
2022
2023
137
89
86
41
-56
247
-5
-36
-36
-14
364

69
107
-46
121
-1
-23
-28
8
295

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

Twelve months
2022
2023
718
369
318
120
-199
-248
-39
-99
69
-197
445

274
266
-192
87
-41
-81
-110
15
586

The gain related to the disposal of non-strategic real estate assets, included in EBIT, is eliminated in Other. Total cash proceeds from the disposal of these assets
are included in Net capex.

Full year
Free cash flow increased to EUR 586 million, mainly driven by lower inventories, which benefited from shorter
lead times, and lower receivables. Last year's free cash flow benefited from cash proceeds from the disposal of
non-strategic real estate assets. Free cash flow included a restructuring payout of EUR 69 million (2022: EUR 54
million).
Twelve months
In millions of EUR

2022

2023

Digital Solutions

321

458

Digital Products

170

291

Conventional Products

56

99

Other*-101-263

Signify free cash flow

445

586

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

In 2023, Digital Solutions and Digital Products continued to generate the majority of Signify's free cash flow,
contributing 88% of Signify's free cash flow excluding 'Other' (2022: 90%). In 2022, 'Other' free cash flow
included the Q2 22 proceeds from the disposal of non-strategic real estate assets.
Fourth quarter
Free cash flow decreased to EUR 295 million, mainly due to a lower inflow from working capital, as Q4 last year
benefited from a stronger reduction of inventories. Free cash flow included a restructuring payout of EUR 16
million (Q4 22: 11 million).

7

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

Dec 31, 2022 Sep 30, 2023 Dec 31, 2023
83

759

1,038

1,950
2,033
677
1,356
3,065

1,270
2,029
689
1,340
3,084

1,192
2,230
1,158
1,071
2,947

Fourth quarter
Compared with the end of September 2023, the cash position increased by EUR 469 million to EUR 1,158 million,
mainly driven by free cash flow generation and financial proceeds from debt issuance. In Q4, Signify issued longterm debt to refinance part of the debt that will mature in 2024. As a result, gross debt increased by EUR 201
million to EUR 2,230 million. As a result of the higher cash position, net debt reduced to EUR 1,071 million. Total
equity decreased to EUR 2,947 million (Q3 23: EUR 3,084 million), primarily due to currency translation results.
Compared with the end of December 2022, the cash position increased by EUR 481 million, while gross debt
increased by EUR 197 million. As a result, net debt decreased by EUR 285 million. At the end of December 2023,
the net debt/EBITDA ratio was 1.7x (Q4 22: 1.3x).

8Other information
Appendix A – Selection of financial statements
Appendix B – Reconciliation of non-IFRS financial measures
Appendix C – Financial Glossary
Conference call and audio webcast
Eric Rondolat (CEO) and Javier van Engelen (CFO) will host a conference call for analysts and institutional
investors at 9:00 a.m. CET to discuss the fourth quarter and full-year 2023 results. A live audio webcast of theconference call will be available via the Investor Relations website.
Financial calendar
February 27, 2024
April 26, 2024
May 14, 2024
May 16, 2024
May 17, 2024
June 3, 2024
July 26, 2024
October 25, 2024

Annual Report 2023
First quarter results 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.

9

Important information
Forward-Looking Statements and Risks & Uncertainties
This document and the related oral presentation contain, and responses to questions following the presentation
may contain, forward-looking statements that reflect the intentions, beliefs or current expectations 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, free cash flow, and other related ratios, which are not recognizedmeasures of financial performance or liquidity under IFRS. The non-IFRS financial measures presented aremeasures used 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 the same manner or on a consistent basis and these measures and ratios may not be comparable tomeasures used by other companies under the same or similar names. A reconciliation of these non-IFRS financial
measures to the most directly comparable IFRS financial measures is contained in this document. For further
information on non-IFRS financial measures, see “Chapter 18 Reconciliation of non-IFRS measures” in the Annual
Report 2022.
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 2022 and the Semi-Annual Report2023.
Market Abuse Regulation
This press release contains information within the meaning of Article 7(1) of the EU Market Abuse Regulation.

10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
Impairment of goodwill
Other business income
Other business expenses
Income from operations
Financial income
Financial expenses
Results relating to investments in associates
Income before taxes
Income tax expense
Net income
Attribution of net income for the period:
Net income (loss) attributable to shareholders of Signify N.V.
Net income (loss) attributable to non-controlling interests
Earnings per ordinary share attributable to shareholders
Weighted average number of ordinary shares outstandingused for calculation (in thousands):
Basic
Diluted
Net income attributable to shareholders per ordinary sharein EUR:
Basic
DilutedFourth quarter
2022
2023
1,978
1,734
(1,271)(1,048)
707
686
(501)
(503)
(76)
(93)
–
–
12
3
(5)
(4)
137
89
6
14
(34)
(32)
–
–
108
71
(22)
(12)
86
59

January to December
2022
2023
7,514
6,704
(4,781)(4,146)2,732
2,558(1,927)(1,882)
(295)
(308)
–
–
227
24
(19)
(23)
718
369
47
32
(88)
(134)
–
–
678
268
(145)
(53)
532
215

84
2

56
3

523
9

203
12

125,233
127,221

126,313
127,262

125,004
127,597

125,951
127,338

0.67
0.66

0.44
0.44

4.18
4.10

1.61
1.59

Amounts may not add up due to rounding.

11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
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

Fourth quarter
2022
2023
86
59

January to December
2022
2023
532
215

21
(5)
16

(13)
2
(11)

15
(5)
11

(14)
2
(12)

(381)
–

(181)
–

159
–

(143)
–

–
–

2
1

(10)
–

(3)
1

42
(10)
(349)

4
(1)
(176)

(24)
6
132

25
(6)
(126)

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

(333)
(247)

(187)
(128)

143
675

(138)
77

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

(238)
(10)

(125)
(2)

663
12

71
6

Amounts may not add up due to rounding.

12C. Condensed consolidated statement of financial position
In millions of EUR
2022

2023

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

699
2,861
700
12
165
418
40
4,895

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

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

1,361
–
161
34
56
1,102
677
1
3,391
8,286

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

EquityShareholders’ equity
Non-controlling interests
Total equity

2,920
145
3,065

2,817
129
2,947

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

1,950
327
283
25
111
160
2,855

1,192
322
263
20
79
154
2,030

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

83
42
21
1,859
168
194
–
2,367
8,286

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

Amounts may not add up due to rounding.

13

D. Condensed consolidated statement of cash flows
In millions of EUR
Fourth quarter
2022
2023
Cash flows from operating activities
Net income (loss)
Adjustments to reconcile net income (loss) to net cash provided byoperating activities:• Depreciation, amortization and impairment of non-financial
assets• Impairment (reversal) of goodwill, other non-current financial
assets and investments in associates• Result 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
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
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
assetsPurchases of businesses, net of cash acquired
Proceeds from sale of businesses, net of cash disposed of
Net cash provided by (used for) investing activities
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 theperiod 2
1
2

January to
December
2022
2023

86

59

532

215

175

209

451

705

86

69

318

274

–
(2)
12
22
43
(2)
15
247
101
224
(90)
11
(11)
(41)
(15)
(5)
(36)
400

–
(1)
10
12
101
6
14
121
52
157
(110)
22
3
(38)
(8)
(1)
(23)
323

–
(182)
41
145
110
10
9
(248)
130
126
(555)
52
(24)
(157)
(41)
(39)
(99)
376

–
6
43
53
243
23
64
87
50
267
(272)
42
3
(153)
(38)
(41)
(81)
696

(36)
(21)
(19)
4

(28)
(19)
(11)
2

69
(62)
(70)
201

(110)
(67)
(51)
8

(7)
–
–
(43)

(2)
3
–
(26)

(29)
(297)
–
(256)

7
(13)
–
(115)

–
1
(104)
–
(103)
254

(12)
222
(18)
–
192
488

(188)
217
(276)
(48)
(295)
(175)

(210)
233
(83)
(7)
(67)
514

(46)

(18)

3

(31)

467

688

847

676

676

1,158

676

1,158

For Q4 2023 and Q4 2022, included bank overdrafts of EUR 1 million and EUR 2 million, respectively. For January to December of 2023 and 2022, included bank overdrafts of EUR 1
million and EUR 4 million, respectively.
Included bank overdrafts of EUR 0 million and EUR 1 million as at December 31, 2023 and 2022, respectively.

Amounts may not add up due to rounding.

14

Appendix B - Reconciliation of non-IFRS financial measures
Sales growth composition per business in %Comparable
growthFourth quarter
Currency
Consolidation andeffectsother changes

Nominalgrowth2023 vs 2022
Digital Solutions

(2.9)

(5.1)

0.4

(7.5)

Digital Products

(9.4)

(4.9)

–

(14.3)

Conventional Products(29.6)(3.4)–(33.0)

Signify

(7.7)

(4.9)

0.2

(12.3)

January to December
Currency
Consolidation andeffectsother changes

NominalgrowthComparable
growth2023 vs 2022
Digital Solutions

(5.4)

(3.1)

1.5

(6.9)

Digital Products(10.5)(3.8)–(14.2)

Conventional Products(18.4)(2.5)–(20.9)

Signify

(8.3)

(3.3)

0.8

(10.8)

Fourth quarter
Currency
Consolidation andeffectsother changes

NominalgrowthSales growth composition per market in %Comparable
growth2023 vs 2022
Europe

(8.2)

(0.6)

–

(8.8)

Americas

(7.3)

(6.7)

0.6

(13.4)

Rest of the world

(4.7)

(8.1)

–

(12.9)

Global businesses(16.3)(3.2)–(19.5)

Signify

(7.7)

(4.9)

0.2

(12.3)

January to December
Currency
Consolidation andeffectsother changes

NominalgrowthComparable
growth2023 vs 2022
Europe

(8.7)

(0.6)

–

(9.3)

Americas

(8.9)

(3.2)

0.5

(11.6)

Rest of the world

(4.7)

(7.6)

1.3

(11.0)

Global businesses(14.4)(1.5)

4.1(11.8)

Signify

(8.3)

(3.3)

0.8

(10.8)

15

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

DigitalSolutions

Digital Conventional
Products
Products

Adjusted EBITA

209

127

75

23

(17)

Restructuring

(83)

(16)

(14)

(2)

(51)

Acquisition-related charges

(5)

(5)

–

–

1

Incidental items

(13)

(8)

(4)

(1)

–

EBITA

108

97

58

21

(67)

(20)
89

(18)
79

(2)
56

–
21

–
(67)

Adjusted EBITA

202

107

93

26

(25)

Restructuring

(47)

(10)

(10)

(25)

(2)

Acquisition-related charges

(4)

(4)

–

–

–

Other

Fourth quarter 2023

1

Amortization
Income from operations (or EBIT)
Fourth quarter 2022

1

Incidental items

15

5

(3)

4

10

EBITA

166

98

80

4

(16)

Amortization 1

(29)

(28)

(2)

–

–

Income from operations (or EBIT)

137

70

78

4

(16)

Signify

DigitalSolutions

Digital Conventional
Products
Products

Other

Adjusted EBITA

670

422

205

129

(86)

Restructuring

(167)

(32)

(25)

(51)

(59)

Acquisition-related charges

(14)

(15)

–

–

1

Amortization and impairments of acquisition related intangible assets and goodwill.

January to December 2023

Incidental items

(40)

(17)

(4)

(16)

(2)

EBITA

449

358

176

62

(147)

Amortization 1

(80)

(74)

(6)

–

(1)

Income from operations (or EBIT)

369

285

170

62

(147)

Adjusted EBITA

762

424

297

116

(75)

Restructuring

(64)

(15)

(11)

(34)

(4)

Acquisition-related charges

(27)

(27)

–

–

–

Incidental items

173

(8)

(14)

(22)

217

January to December 2022

1

EBITA

844

374

272

60

138

Amortization 1

(126)

(118)

(7)

–

(1)

Income from operations (or EBIT)

718

256

265

60

137

Amortization and impairments of acquisition related intangible assets and goodwill.

Amounts may not add up due to rounding.

16Fourth quarter 2023 Income from operations to Adjusted EBITA in millions of EUR

Reported

Restructuring 2

Acquisitionrelated
charges

Incidental
items 1

Adjusted

Fourth quarter 2023
Sales

1,734

–

–

–

1,734

Cost of sales(1,048)91

12(1,026)Gross margin

686

9

1

12

707

Selling, general and administrative expenses

(503)

57

3

(1)

(445)

Research and development expenses

(93)

18

–

–

(75)

Indirect costs

(596)

74

3

(1)

(520)

–

–

–

–

–

Other business income

3

–

–

–

3

Other business expenses

(4)

–

1

2

(2)

Income from operations

89

83

5

13

189

Amortization
Income from operations excluding
amortization (EBITA)

(20)

–

–

–

(20)

108

83

5

13

209

Sales

1,978

–

–

–

1,978

Cost of sales(1,271)

29

(2)

–

(1,244)Gross margin

707

29

(2)

–

734

Selling, general and administrative expenses

(501)

17

4

(5)

(485)

Research and development expenses

(76)

1

–

–

(75)

Indirect costs

(577)

18

4

(5)

(560)

Impairment of goodwill

–

–

–

–

–

Other business income

12

–

(10)

2

Other business expenses

(5)

–

2

–

(3)

Income from operations

137

47

4

(15)

172

Amortization
Income from operations excluding
amortization (EBITA)

(29)

–

–

–

(29)

166

47

4

(15)

202

Impairment of goodwill

Fourth quarter 2022

1

2

Incidental items are non-recurring items by nature and are related to impairment and other non-cash charges/gains related to operations in Russia and Ukraine, a one day FX loss fromthe devaluation of the Argentine peso by the Argentinian government, separation costs, transformation costs, real estate gains/loss, legal cases, incidental warranty costs,
environmental provisions for inactive sites and the discounting effect of long-term provisions.
Restructuring costs were EUR 83 million for Q4 2023. These consisted of EUR 77 million of employee termination benefits and EUR 6 million of other costs related to restructuring
programs.
Restructuring costs were EUR 47 million for Q4 2022. These mainly consisted of EUR 20 million of employee termination benefits, EUR 10 million of impairment of property, plant andequipment, and EUR 14 million of inventory write-downs related to restructuring programs.

Amounts may not add up due to rounding.

17

January to December 2023 Income from operations to Adjusted EBITA in millions of EUR

Reported

Restructuring 2

Acquisitionrelated
charges

Incidental
items 1

Adjusted

Sales

6,704

–

–

–

6,704

Cost of sales(4,146)62

3

36(4,044)Gross margin

2,558

62

3

36

2,660

Selling, general and administrative expenses(1,882)

81

11

(1)

(1,791)

(308)

24

–

–

(284)

(2,191)

105

11

(1)

(2,075)

Impairment of goodwill

–

–

–

–

–

Other business income

24

–

(2)

(11)

10

Other business expenses

(23)

–

2

16

(5)

Income from operations

369

167

14

40

590

Amortization
Income from operations excluding
amortization (EBITA)

(80)

–

–

–

(80)

449

167

14

40

670

Sales

7,514

–

–

–

7,514

Cost of sales(4,781)43

6

25(4,708)Gross margin

2,732

43

6

25

2,806

Selling, general and administrative expenses(1,927)

21

18

11

(1,877)

(295)

–

–

–

(294)

(2,222)

21

19

11

(2,171)

Impairment of goodwill

–

–

–

–

–

Other business income

227

–

(1)

(218)

8

Other business expenses

(19)

–

3

10

(6)

Income from operations

718

64

27

(173)

636

Amortization
Income from operations excluding
amortization (EBITA)

(126)

–

–

–

(126)

844

64

27

(173)

762

January to December 2023

Research and development expenses
Indirect costs

January to December 2022

Research and development expenses
Indirect costs

1

2

Incidental items are non-recurring items by nature and are related to impairment and other non-cash charges/gains related to operations in Russia and Ukraine, a one day FX loss fromthe devaluation of the Argentine peso by the Argentinian government, separation costs, transformation costs, real estate gains/loss, legal cases, incidental warranty costs,
environmental provisions for inactive sites and the discounting effect of long-term provisions.
Restructuring costs were EUR 167 million for the year ended December 31, 2023. These consisted of EUR 150 million of employee termination benefits and EUR 18 million of other costs
related to restructuring programs.
Restructuring costs were EUR 64 million for the year ended December 31, 2022. These mainly consisted of EUR 27 million of employee termination benefits, EUR 12 million of
impairment of property, plant and equipment, and EUR 16 million of inventory write-downs related to restructuring programs.

Amounts may not add up due to rounding.

18

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.
Changes in scope
Consolidation effects related to acquisitions.
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.
Comparable sales growth (CSG)
The period-on-period growth in sales excluding theeffects of currency movements and changes in
consolidation and other changes.

Effects of changes in consolidation and otherchangesIn the event a business is acquired (or divested),
the impact of the consolidation (or deconsolidation) on the Group’s figures is included (orexcluded) in the calculation of the comparable sales
growth figures. Other changes include regulatorychanges and changes originating from new
accounting standards.
Effects of currency movements
Calculated by translating the foreign currency
financials of the previous period and the current
period into euros at the same average exchange
rates.
Employees
Employees of Signify at 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.
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.
19

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 otherreceivables, other current assets, derivative
financial assets minus the sum of trade and otherpayables, derivative financial liabilities and othercurrent liabilities (excluding dividend-related
payables).

20