Press Release
January 27, 2023

Signify reports full-year sales of EUR 7.5 billion, operational profitability of 10.1% and a free
cash flow of EUR 445 million
Full year 20221• Signify's installed base of connected light points increased from 96 million at YE 21 to 114 million at YE 22• Sales of EUR 7,514 million; nominal sales increase of 9.5% and CSG of 1.2%
• LED-based sales represented 83% of total sales (FY 21: 83%)
• Adj. EBITA margin of 10.1% (FY 21: 11.6%)• Net income of EUR 532 million (FY 21: EUR 407 million)• Free cash flow of EUR 445 million (FY 21: EUR 614 million)• Net debt/EBITDA ratio of 1.3x (YE 21: 1.4x)
Fourth quarter 2022
• Sales of EUR 1,978 million; nominal sales decline of 1.5% and CSG of -8.8%• Adj. EBITA margin of 10.2% (Q4 21: 13.2%)• Net income of EUR 86 million (Q4 21: EUR 170 million)• Free cash flow of EUR 364 million (Q4 21: EUR 257 million)
Dividend• Proposal to increase its cash dividend to EUR 1.50 per share over 2022 (FY 21: EUR 1.45)
Eindhoven, the Netherlands – Signify (Euronext: LIGHT), the world leader in lighting, today announced thecompany’s fourth quarter and full-year 2022 results.
“2022 was a year of exceptionally challenging conditions. The external environment grew increasingly morevolatile throughout the year, leading us to adapt the company and our objectives accordingly. While margins
and cash were impacted by inflation and supply chain disruption respectively, our connected lighting businessand growth platforms grew to reach almost EUR 2 billion of sales. The relevance of our products and solutions
was further heightened in 2022, as energy efficiency became even more urgent. This strengthened ourcompetitive position as we executed on our strategic priorities. We brought new innovative and sustainable
lighting solutions to our customers and continued to make progress towards doubling our impact onenvironment and society,” said Eric Rondolat, CEO of Signify.
“Looking ahead, we expect volatility to persist in the first half of 2023 and our performance to improve in thesecond half. While top-line growth will be difficult to predict, our key priority in 2023 will be to improve
profitability and return to a free cash flow level in line with previous years. We will intensify our focus on
managing the decline and profitability of our Conventional Products business, while further driving the transition
to energy efficient, connected and sustainable lighting solutions. As we move forward, we remain committed toour strategy to invest and drive innovation in the lighting industry and so create a more sustainable andconnected future for all.”

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
In the fourth quarter, Signify completed the second year of its Brighter Lives, Better World 2025 sustainability
program, making continued progress towards doubling its positive impact on the environment and society:••••Double the pace of the Paris agreement:
The cumulative carbon reduction over the value chain is on track to reach the 2025 target. This ismainly driven by energy-efficient and connected LED lighting, which reduce emissions in the use phase.
Double Circular revenues to 32%:
Circular revenues were 29% and are on track, mainly driven by serviceable and circular luminaires.
Double Brighter lives revenues to 32%:Brighter lives revenues of 27%, on track to reach the 2025 target. The consumer well-being and safety& security portfolios continue to be the main contributors to Brighter lives revenues.
Double the percentage of women in leadership to 34%:
The percentage of women in leadership positions was 28%. An improvement versus the end of lastyear, yet slightly off track to reach the 2025 target. This quarter, Signify focused on improving inclusive
hiring practices and internal talent development. These actions help Signify realize its diversity
ambitions.

In the fourth quarter, Signify received several external recognitions for its leadership in Sustainability andClimate action. Signify was included on the CDP’s Climate A List, and was included in the DJSI World Index for the
6th consecutive year.

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

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

Capital allocation
Signify proposes a cash dividend of EUR 1.50 per share for 2022, in line with its policy to pay an increasing
annual cash dividend per share year on year. The dividend proposal will be subject to approval at the Annual
General Meeting of Shareholders (AGM) to be held on May 16, 2023. Further details will be provided in theagenda for the AGM.
In 2022, Signify reduced its net debt/EBITDA ratio to 1.3x. Excluding the acquisitions of Fluence and Pierlite,
Signify reached its goal of reducing its net debt/EBITDA ratio to 1.0x at the end of 2022, down from 2.7x after
the acquisition of Cooper Lighting in March 2020. Signify remains committed to maintaining a robust capital
structure and an investment grade credit rating.
Signify will continue to invest in organic and inorganic growth opportunities in line with its strategic priorities.

2

Financial review
2021

Fourth quarter2022

change
-8.8%
4.7%
2.6%
-1.5%
-7.6%

2,008
794
39.5%

1,978
734
37.1%

-485
-74
-559
27.8%

-485
-75
-560
28.3%

265
13.2%
-29
237

202
10.2%
-36
166

-24.0%

205
-4
-31
170

137
-29
-22
86

-33.4%

257
1.34
36,824364
0.67
34,619-0.2%-29.9%-49.5%

Twelve months2022

in millions of EUR, except percentages

2021

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

6,860
2,702
39.4%

7,514
2,806
37.3%

Adj. SG&A expenses
Adj. R&D expenses
Adj. indirect costs
Adj. indirect costs (as % of sales)-1,748-284-2,03229.6%-1,877-294-2,171
28.9%

Adjusted EBITA
Adjusted EBITA margin
Adjusted items
EBITA

795
11.6%
-159
636

762
10.1%
82
844

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

514
-24
-83
407

718
-41
-145
532

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

614
3.18
36,824445
4.18
34,619change
1.2%
6.0%
2.4%
9.5%
3.8%

-6.9%

-4.2%

32.8%
39.8%

31.0%

Full year
Nominal sales increased by 9.5% to EUR 7,514 million, including a positive currency effect of 6.0%, largely driven
by the appreciation of the USD, and a positive impact of 2.4% from the consolidation of Fluence and Pierlite.
Comparable sales growth was 1.2%, benefiting from traction in the professional segment, partly offset by China,
which was impacted by COVID-related measures, and softness in the consumer segment.
The Adjusted gross margin declined by 210 bps to 37.3%, mainly due to an adverse currency impact as priceincreases largely compensated input and energy cost inflation throughout the year. Adjusted indirect costs as apercentage of sales decreased by 70 bps to 28.9%, mainly driven by indirect cost savings.
Adjusted EBITA declined by 4.2% to EUR 762 million. Digital Solutions and Digital Products further increased
their combined share of Signify's Adjusted EBITA excluding 'Other' to 86% (2021: 82%). The Adjusted EBITA
margin declined by 150 bps to 10.1%, mainly driven by the lower gross margin.
Total restructuring costs were EUR 64 million, acquisition-related charges were EUR 27 million and otherincidental items were a net benefit of EUR 173 million. The other incidental items were mainly related to thegain on the disposal of non-strategic real estate assets. Net income increased by 31.0% to EUR 532 million,
mainly driven by the gain on the disposal of non-strategic real estate assets, partly offset by a higher income tax
expense, due to higher taxable income, and higher net financial expenses.
Fourth quarter
Nominal sales declined by 1.5% to EUR 1,978 million, with a comparable sales decline of 8.8%. The decline ismainly attributable to a further deterioration of the Chinese market due to COVID-related disruptions, a weakerindoor professional business, continued softness in the consumer segment and lower growth in the OEMchannel than anticipated. Nominal sales included a positive currency effect of 4.7%, mainly from the3appreciation of the USD versus Q4 21, and a positive impact of 2.6% from the consolidation of Fluence andPierlite.
The Adjusted gross margin decreased by 240 bps to 37.1%, mainly driven by an adverse currency impact. Priceincreases continued to offset higher input costs and the surge in energy costs. On a sequential basis, the grossmargin has stabilized since Q2 22. Adjusted indirect costs as a percentage of sales increased by 50 bps to 28.3%,
as indirect cost savings did not fully compensate lower sales volumes.
Adjusted EBITA decreased to EUR 202 million. The Adjusted EBITA margin decreased to 10.2%, mainly due to anegative currency impact of 150 bps and fixed cost under-absorption due to lower sales volumes. The negative
currency impact was the combination of both the year-on-year weakening of the EUR versus the USD and CNY,
and a continued, yet temporary, FX hedging headwind.
Total restructuring costs were EUR 47 million, acquisition-related charges were EUR 4 million and various
incidental items were a net benefit of EUR 15 million. Net income decreased to EUR 86 million, as a result of
lower income from operations and higher financial expenses. The higher financial expenses were mainly
impacted by the Virtual Power Purchase Agreements, higher interest costs and the recognition of a monetaryloss due to hyperinflation in Turkey.
The number of employees (FTE) decreased from 36,824 at the end of Q4 21 to 34,619 at the end of Q4 22. The
year-on-year decrease is mostly related to factory personnel. The number of FTEs is affected by fluctuations involume and seasonality.

Digital Solutions
Fourth quarter
2021

2022

1,045
147
14.1%
130
100

1,105
107
9.7%
98
70

Twelve months
change in millions of EUR, unless otherwise indicated-5.8%

Comparable sales growth

5.8%-27.2%

Sales
Adjusted EBITA
Adjusted EBITA margin
EBITA
Income from operations (EBIT)-24.7%-30.2%

2021

2022

change

3,524
397
11.3%
318
205

4,231
424
10.0%
374
256

20.1%
6.9%

7.8%

17.5%
25.2%

Includes Pierlite since April 29, 2022 and Fluence since May 2, 2022.

Full year
Nominal sales increased by 20.1% to 4,231 million, including a positive currency effect of 7.3% and a positive
impact of 5.0% from the acquisitions of Fluence and Pierlite. Comparable sales growth was 7.8%, driven by
growth across most markets, despite a slowdown in the fourth quarter. Connected-based sales were 22% of
Digital Solutions' total sales, stable with last year. Adjusted EBITA grew by 6.9% to EUR 424 million. The Adjusted
EBITA margin declined by 130 bps to 10.0%, mainly due to a negative currency impact, partly offset by operating
leverage from higher sales volumes.
Fourth quarter
Nominal sales increased by 5.8% to EUR 1,105 million, including a positive currency effect of 6.2% and a positive
impact of 5.3% from the acquisitions of Fluence and Pierlite. Comparable sales declined by 5.8% on the back of ahigh base of comparison in the fourth quarter of 2021 (Q4 21: 11.2%). The Chinese market continued to be
impacted by COVID-related disruptions and the indoor professional business weakened. The Adjusted EBITA
margin declined to 9.7%, due to under-absorption of fixed costs and an adverse currency impact.

4

Digital Products
2021

Fourth quarter2022

change in millions of EUR, unless otherwise indicated-12.9%

Comparable sales growth2021

Twelve months
2022change
-3.8%

737
114
15.5%

661
93
14.1%

-10.3%-18.7%

Sales
Adjusted EBITA
Adjusted EBITA margin

2,452
339
13.8%

2,469
297
12.0%

0.7%
-12.3%

11280-28.5%

EBITA

323

272

-15.9%

11078-28.6%

Income from operations (EBIT)

316

265

-16.3%

Full year
Nominal sales increased by 0.7% to EUR 2,469 million, benefiting from a positive currency effect of 4.4%.
Comparable sales declined by 3.8%, due to lower consumer sales and a Chinese market that was impacted by
COVID-related disruptions. Connected-based sales were 24% of Digital Products' total sales, stable with 2021.
The Adjusted EBITA margin declined to 12.0%, mainly due to a negative impact from currency, lower volumes
and an adverse sales mix.
Fourth quarter
Nominal sales declined to EUR 661 million, a comparable sales decline of 12.9%. The decline was mainly driven
by lower consumer sales and COVID-related disruptions impacting the Chinese market. In addition, the company
saw lower than expected growth in the OEM channel. The Adjusted EBITA margin decreased by 140 bps to14.1%, as indirect cost savings were more than offset by fixed cost under-absorption due to lower volumes.

Conventional Products
Fourth quarter
2021

2022

219
37
16.9%
37
37

203
26
12.9%
4
4

Twelve months
change in millions of EUR, unless otherwise indicated-11.4%

Comparable sales growth-7.3%-29.3%

Sales
Adjusted EBITA
Adjusted EBITA margin
EBITA
Income from operations (EBIT)-88.4%-88.4%

2021

2022

861
161
18.7%
158
158

793
116
14.6%
60
60

change-12.6%-7.9%-28.2%-61.9%-61.9%

Full year
Nominal sales decreased by 7.9% to EUR 793 million, including a positive currency effect of 4.6%. Comparable
sales declined by 12.6%, as lower volumes were partly offset by price increases. The Adjusted EBITA margindecreased to 14.6%, as an adverse currency impact, lower fixed cost coverage and higher input costs were notfully offset by price increases and indirect cost savings.
Fourth quarter
Nominal sales decreased by 7.3% to EUR 203 million, benefiting from a positive currency effect of 4.2%.
Comparable sales declined by 11.4%. The Adjusted EBITA margin decreased to 12.9%. Price increases
compensated higher input and energy costs, yet indirect cost savings were not able to compensate one-off
effects and an adverse currency impact.

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 -75 million (2021:
EUR -102 million). EBITA was EUR 138 million (2021: EUR -164 million). Restructuring costs and other incidental
items were a net benefit of EUR 213 million (2021: EUR -62 million), largely related to the gain from the disposalof non-strategic real estate assets in Q2.
Fourth quarter
Adjusted EBITA was EUR -25 million (Q4 21: EUR -33 million). EBITA was EUR -16 million (Q4 21: EUR -42 million).
Restructuring costs and other incidental items were a net benefit of EUR 8 million (Q4 21: EUR -9 million) during
the quarter.

Sales by market
Fourth quarter
2021

2022

Change

666
733
457
152
2,008

625
756
438
159
1,978

-6.1%
3.2%
-4.2%
4.3%
-1.5%

Twelve months
CSG in millions of EUR, except percentages
-6.5%
-8.9%
-9.2%
-16.3%-8.8%

EuropeAmericasRest of the world
Global businesses
Total

2021

2022

change

CSG

2,130
2,581
1,606
543
6,860

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

4.7%
15.4%
6.5%
9.9%
9.5%

3.9%
3.2%
-1.5%
-9.2%
1.2%

Rest of the world includes Pierlite since April 29, 2022. Global businesses include Fluence since May 2, 2022.

Full year
Across most markets, the professional segment grew despite a slowdown in the fourth quarter, while demand in
the consumer segment softened. In Europe, comparable sales grew by 3.9%. All European markets grew, except
Eastern Europe, which was impacted by the war in Ukraine, and the United Kingdom. In the Americas,
comparable sales grew by 3.2%, with a solid contribution from Cooper Lighting. In the Rest of the world,comparable sales declined by 1.5%, mainly due to China, the Middle East and South Korea. Global businesses'
comparable sales declined by 9.2%, mainly due to Klite, which was impacted by COVID-related disruptions in
China.
Fourth quarter
In most markets the consumer segment remained weak, while the professional segment softened on the back ofa strong comparison base last year. In Europe, comparable sales declined by 6.5%, as most markets, except
Spain and Italy, declined. In the Americas, comparable sales declined by 8.9%, mainly due to the US and Canada.
In the Rest of the World, comparable sales declined by 9.2%, mainly due to China, which was impacted by
COVID-related disruptions, and the Middle East. Global businesses' comparable sales declined by 16.3%, mainly
due to Klite.

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, 2021 Sep 30, 2022 Dec 31, 2022
1,410
1,183
-2,334
-8
250
3.6%

1,696
1,265
-2,054
-87
820
10.9%

1,361
1,102
-1,859
-41
564
7.5%

6,275

6

Fourth quarter
Working capital decreased from EUR 820 million at the end of September 2022 to EUR 564 million at the end of
December 2022. The lower working capital is the net result of a strong reduction of inventories, a notablereduction of receivables and a favorable impact from currency, only partly offset by lower payables and otherworking capital items. As a percentage of last twelve-month sales, working capital decreased by 340 bps to 7.5%.
Including last twelve-month sales pro forma for Fluence and Pierlite, working capital declined by 330 bps to
7.4%.
Compared with December 2021, working capital increased by EUR 314 million. This increase was mostly driven
by lower payables, as payments for the 2021 inventory build-up were settled. Lower payables were partly offset
by lower receivables and lower inventories. As a percentage of last twelve-month sales, working capitalincreased by 390 bps to 7.5%. Including last twelve-month sales pro forma for Fluence and Pierlite, working
capital increased by 380 bps to 7.4%.

Cash flow analysis
Fourth quarter
2021
2022
205
137
77
30
-65
37
1
-14
-29
16
257

86
41
-56
247
-5
-36
-36
-14
364

in millions of EUR

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

Twelve months
2021
2022
514
718
312
151
-221
-2
-27
-59
-91
36
614

318
120
-199
-248
-39
-99
69
-197
445

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 was EUR 445 million, mainly impacted by higher working capital, partly offset by cash proceedsfrom the disposal of non-strategic real estate assets. Free cash flow included a restructuring payout of EUR 54
million (2021: EUR 86 million).
Twelve months
In millions of EUR

2021

2022

Digital Solutions

364

321

Digital Products

383

170

Conventional Products

136

56

Other*-270-101

Signify free cash flow

614

445

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

In 2022, Digital Solutions and Digital Products continued to increase their combined share of Signify's free cash
flow excluding 'Other' to 90% (2021: 85%). As a result, Signify continues to become less reliant on Conventional
Products' free cash flow generation. 'Other' free cash flow includes the Q2 22 proceeds from the disposal of
non-strategic real estate assets.

7

Fourth quarter
Free cash flow increased to EUR 364 million, mainly driven by a strong improvement of working capital whichmore than compensated a lower income from operations. Free cash flow included a restructuring payout of EUR
11 million (Q4 21: EUR 26 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

Dec 31, 2021 Sep 30, 2022 Dec 31, 2022
77

176

83

1,931
2,007
851
1,156
2,597

1,978
2,154
469
1,685
3,302

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

Fourth quarter
Compared with the end of September 2022, the cash position increased by EUR 208 million to EUR 677 million,
mainly driven by the positive free cash flow. Gross debt decreased by EUR 121 million to EUR 2,033 million,
mostly due to the repayment of short-term debt. As a result of the lower gross debt and higher cash position,
net debt decreased by EUR 329 million to EUR 1,356 million. Total equity decreased to EUR 3,065 million at theend of December 2022 (Q3 22: EUR 3,302 million), primarily due to currency translation, partly offset by net
income.
Compared with the end of December 2021, the cash position decreased by EUR 174 million. This decrease wasmainly driven by the acquisitions of Fluence and Pierlite, and the dividend payment, partly offset by free cash
flow, which included cash proceeds from the disposal of non-strategic real estate assets. Gross debt remained
relatively stable year on year. As a result, the net debt increased by EUR 200 million year on year. At the end of
December 2022, the net debt/EBITDA ratio was 1.3x (Q4 21: 1.4x). Excluding the acquisitions of Fluence andPierlite, Signify reached its goal of reducing its net debt/EBITDA ratio to 1.0x at the end of 2022, from 2.7x after
the acquisition of Cooper Lighting in March 2020.

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 2022 results. A live audio webcast of theconference call will be available via the Investor Relations website.
Financial calendar
February 28, 2023
May 3, 2023
May 16, 2023
May 18, 2023
May 19, 2023
June 5, 2023
July 28, 2023
October 27, 2023

Annual Report 2022
First quarter results 2023
Annual General Meeting
Ex-dividend date
Dividend record date
Dividend payment date
Second quarter and half-year results 2023
Third quarter results 2023

For further information, please contact:
Signify Investor Relations
Thelke Gerdes
Tel: +31 6 1801 7131
E-mail: thelke.gerdes@signify.com
Signify Corporate Communications
Leanne Carmody
Tel: +31 6 3928 0201
E-mail: leanne.carmody@signify.com
Abigail Levene
Tel: +31 6 2939 3895
E-mail: abigail.levene@signify.com
About Signify
Signify (Euronext: LIGHT) is the world leader in lighting for professionals and consumers and lighting for theInternet of Things. Our Philips products, Interact connected lighting systems and data-enabled services, deliver
business value and transform life in homes, buildings and public spaces. In 2022, we had sales of EUR 7.5 billion,
approximately 35,000 employees and a presence in over 70 countries. We unlock the extraordinary potential oflight for brighter lives and a better world. We achieved carbon neutrality in 2020, have been in the Dow Jones
Sustainability World Index since our IPO for six consecutive years and were named Industry Leader in 2017, 2018and 2019. News from Signify is located at the Newsroom, Twitter, LinkedIn and Instagram. Information forinvestors can be found 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 energy crisis in Europe, the impacts of COVID-19,
supply chain constraints, component shortages, cost inflation, rapid technological change, competition in thegeneral 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 to international tax laws.
Additional risks currently not known to the Group or that the Group has not considered material as of the dateof this document could also prove to be important and may have a material adverse effect on the business,
results of operations, financial condition and prospects of the Group or could cause the forward-looking events
discussed in this document not to occur. The Group undertakes no duty to and will not necessarily update any of
the forward-looking statements in light of new information or future events, except to the extent required byapplicable law.
Market and Industry Information
All references to market share, market data, industry statistics and industry forecasts in this document consist of
estimates compiled by industry professionals, competitors, organizations or analysts, of publicly available
information or of the Group’s own assessment of its sales and markets. Rankings are based on sales unlessotherwise stated.
Non-IFRS Financial Measures
Certain parts of this document contain non-IFRS financial measures and ratios, such as comparable sales growth,
adjusted gross margin, EBITA, adjusted EBITA, and free cash flow, and other related ratios, which are notrecognized measures of financial performance or liquidity under IFRS. The non-IFRS financial measurespresented are measures used by management to monitor the underlying performance of the Group’s businessand operations and, accordingly, they have not been audited nor reviewed. Not all companies calculate non-IFRS
financial measures in the same manner or on a consistent basis and these measures and ratios may not becomparable to measures used by other companies under the same or similar names. A reconciliation of these
non-IFRS financial measures to the most directly comparable IFRS financial measures is contained in thisdocument. For further information on non-IFRS financial measures, see “Chapter 18 Reconciliation of non-IFRS
measures” in the Annual Report 2021.
Presentation
All amounts are in millions of euros unless otherwise stated. Due to rounding, amounts may not add up to totals
provided. All reported data are unaudited. Unless otherwise indicated, financial information has been preparedin accordance with the accounting policies as stated in the Annual Report 2021 and the Semi-Annual Report2022.
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
2021
2022
2,008
1,978
(1,215)(1,271)
793
707
(510)
(501)
(75)
(76)
–
–
–
12
(3)
(5)
205
137
10
6
(14)
(34)
–
–
202
108
(31)
(22)
170
86

January to December
2021
2022
6,860
7,514
(4,189)(4,781)
2,671
2,732(1,882)(1,927)
(286)
(295)
–
–
19
227
(8)
(19)
514
718
33
47
(57)
(88)
–
–
490
678
(83)
(145)
407
532

167
3

84
2

397
9

523
9

124,896
128,554

125,233
127,221

124,967
128,646

125,004
127,597

1.34
1.30

0.67
0.66

3.18
3.09

4.18
4.10

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
2021
2022
170
86

January to December
2021
2022
407
532

20
(4)
16

21
(5)
16

20
(4)
16

15
(5)
11

114
–

(381)
–

291
–

159
–

(6)
–

–
–

(22)
–

(10)
–

(4)
1
106

42
(10)
(349)

(26)
6
249

(24)
6
132

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

121
292

(333)
(247)

265
671

143
675

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

284
8

(238)
(10)

650
22

663
12

Amounts may not add up due to rounding.

12C. Condensed consolidated statement of financial position
In millions of EUR
2021

2022

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

724
2,464
730
12
58
481
67
4,536

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

Current assets
Inventories
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

1,410
192
58
24
1,183
851
3
3,720
8,256

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

EquityShareholders’ equity
Non-controlling interests
Total equity

2,459
138
2,597

2,920
145
3,065

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

1,931
363
215
27
118
182
2,835

1,950
327
283
25
111
160
2,855

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

77
44
16
2,334
140
213
–
2,824
8,256

83
42
21
1,859
168
194
–
2,367
8,286

Amounts may not add up due to rounding.

13

D. Condensed consolidated statement of cash flows
In millions of EUR
Fourth quarter
2021
2022
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• Net gain on sale of assets• Net interest expense on debt, borrowings and other liabilities• Income tax expense• Additions to (releases of) provisions• Additions to (releases of) post-employment benefits• Other items
Decrease (increase) in working capital:• Decrease (increase) in trade and other receivables• Decrease (increase) in inventories• Increase (decrease) in trade and other payables• Increase (decrease) in other current assets and liabilities
Increase (decrease) 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
2021
2022

170

86

407

532

148

175

580

451

77

86

312

318

–
–
6
31
25
5
4
37
(99)
(79)
209
6
9
(57)
(9)
1
(14)
286

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

–
(13)
26
83
133
18
21
(2)
1
(458)
479
(24)
26
(187)
(34)
(27)
(59)
704

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

(29)
(12)
(22)
5

(36)
(21)
(19)
4

(91)
(34)
(84)
27

69
(62)
(70)
201

8
(6)
–
(28)

(7)
–
–
(43)

29
(30)
–
(91)

(29)
(297)
–
(256)

(2)
283
(654)
–
(372)
(114)

–
1
(104)
–
(103)
254

(354)
633
(1,064)
(92)
(876)
(263)

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

35

(46)

80

3

926

467

1,030

847

847

676

847

676

For Q4 2022 and Q4 2021, included bank overdrafts of EUR 2 million and EUR 1 million, respectively. For January to December of 2022 and 2021, included bank overdrafts of EUR 4
million and EUR 3 million, respectively.
Included bank overdrafts of EUR 1 million and EUR 4 million as at December 31, 2022 and 2021, 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
Consolidation andCurrency effects
other changes

Nominal growth2022 vs 2021
Digital Solutions

(5.8)

6.2

5.3

5.8

Digital Products(12.9)

2.6–(10.3)

Conventional Products(11.4)

4.2

–

(7.3)

Total

(8.8)

4.7

2.6

(1.5)

January to December
Consolidation andCurrency effects
other changes

Nominal growth

Comparable
growth2022 vs 2021
Digital Solutions

7.8

7.3

5.0

20.1

Digital Products

(3.8)

4.4

–

0.7

Conventional Products(12.6)

4.6

–

(7.9)

1.2

6.0

2.4

9.5

Fourth quarter
Consolidation andCurrency effects
other changes

Nominal growth

Total

Sales growth composition per market in %Comparable
growth2022 vs 2021
Europe

(6.5)

–

0.4

(6.1)

Americas

(8.9)

12.2

(0.1)

3.2

Rest of the world

(9.2)

0.6

4.4

(4.2)

Global businesses(16.3)

2.7

18.0

4.3

Total

(8.8)

4.7

2.6

(1.5)

January to December
Consolidation andCurrency effects
other changes

Nominal growth

Comparable
growth2022 vs 2021
Europe

3.9

0.4

0.4

4.7

Americas

3.2

Rest of the world

(1.5)

12.2

–

15.4

4.1

3.9

6.5

Global businesses

(9.2)

4.5

14.6

9.9

Total

1.2

6.0

2.4

9.5

Amounts may not add up due to rounding.

15

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

DigitalSolutions

Digital Conventional
Products
Products

Adjusted EBITA

202

107

93

26

(25)

Restructuring

(47)

(10)

(10)

(25)

(2)

Acquisition-related charges

(4)

(4)

–

–

–

Incidental items

15

5

(3)

4

10

EBITA

166

98

80

4

(16)

(29)
137

(28)
70

(2)
78

–
4

–
(16)

Adjusted EBITA

265

147

114

37

(33)

Restructuring

(11)

(3)

–

(2)

(5)

Acquisition-related charges

(13)

(13)

–

–

–

Other

Fourth quarter 2022

1

Amortization
Income from operations (or EBIT)
Fourth quarter 2021

Incidental items

1

(5)

(2)

(2)

2

(4)

EBITA

237

130

112

37

(42)

Amortization 1

(32)

(29)

(2)

–

–

Income from operations (or EBIT)

205

100

110

37

(43)

Signify

DigitalSolutions

Digital Conventional
Products
Products

Other

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

EBITA

844

374

272

60

138

(126)

(118)

(7)

–

(1)

718

256

265

60

137

Adjusted EBITA

795

397

339

161

(102)

Restructuring

(86)

(19)

(4)

(5)

(58)

Acquisition-related charges

(50)

(49)

(1)

–

–

Incidental items

(22)

(11)

(10)

2

(4)

Amortization and impairments of acquisition related intangible assets and goodwill.

January to December 2022

Amortization

1

Income from operations (or EBIT)
January to December 2021

1

EBITA

636

318

323

158

(164)

Amortization 1

(122)

(114)

(7)

–

(1)

Income from operations (or EBIT)

514

205

316

158

(165)

Amortization and impairments of acquisition related intangible assets and goodwill.

Amounts may not add up due to rounding.

16Fourth quarter 2022 Income from operations to Adjusted EBITA in millions of EUR

Reported

Restructuring 2

Acquisitionrelated
charges

Incidental
items 1

Adjusted

Fourth quarter 2022
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

Sales

2,008

–

–

–

2,008

Cost of sales(1,215)2

2(3)(1,214)Gross margin

793

2

2

(3)

794

Selling, general and administrative expenses

(510)

7

10

7

(485)

Research and development expenses

(75)

1

–

–

(74)

Indirect costs

(585)

9

10

7

(559)

–

–

–

–

–

Other business income

–

–

–

–

–

Other business expenses

(3)

–

–

2

(1)

Income from operations

205

11

13

5

234

Amortization
Income from operations excluding
amortization (EBITA)

(32)

–

–

–

(32)

237

11

13

5

265

Fourth quarter 2021

Impairment of goodwill

1
2

Incidental items are non-recurring by nature and relate to impairment and other non-cash charges related to operations in Russia and Ukraine, separation, transformation, net realestate gains, legal cases, environmental provision for inactive sites, and discounting effect of long-term provisions.
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 2022 Income from operations to Adjusted EBITA in millions of EUR

Reported

Restructuring 2

Acquisitionrelated
charges

Incidental
items 1

Adjusted

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

Sales

6,860

–

–

–

6,860

Cost of sales(4,189)19

8

4(4,157)Gross margin

2,671

19

8

4

2,702

Selling, general and administrative expenses(1,882)

66

43

25

(1,748)

(286)

1

–

–

(284)

(2,168)

67

44

25

(2,032)

Impairment of goodwill

–

–

–

–

–

Other business income

19

–

(2)

(11)

7

Other business expenses

(8)

–

–

4

(5)

Income from operations

514

86

50

22

673

Amortization
Income from operations excluding
amortization (EBITA)

(122)

–

–

–

(122)

636

86

50

22

795

January to December 2022

Research and development expenses
Indirect costs

January to December 2021

Research and development expenses
Indirect costs

1
2

Incidental items are non-recurring by nature and relate to impairment and other non-cash charges related to operations in Russia and Ukraine, separation, transformation, net realestate gains, legal cases, environmental provision for inactive sites and discounting effect of long-term provisions.
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).
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