#1Signify Q1 2024 results April 26, 2024 GOOD#2Important information Forward-looking statements This release contains forward-looking statements that reflect the intentions, beliefs or current expectations and projections of Signify, including statements regarding strategy, estimates of sales growth and future operational results. By their nature, these statements involve risks and uncertainties facing the Company and its Group companies, and a number of important factors could cause actual results or outcomes to differ materially from those expressed 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 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 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 to international tax laws. Additional risks currently not known to the Group or that the Group has not considered material as of the date of this document could also prove to be important and may have a material adverse effect on the business, results 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 by applicable law. Market and Industry Information All references to market share, market data, industry statistics and industry forecasts in this document consist of estimates compiled by industry professionals, competitors, organizations or analysts, of publicly available information or of the Group's own assessment of its sales and markets. Rankings are based on sales unless otherwise stated. Non-IFRS Financial Statements Certain parts of this document contain non-IFRS financial measures and ratios, such as comparable sales growth, adjusted gross margin, EBITA, adjusted EBITA, EBITDA, adjusted EBITDA and free cash flow, and other related ratios, which are not recognized measures of financial performance or liquidity under IFRS. The non-IFRS financial measures presented are measures used by management to monitor the underlying performance of the Group's business and operations and, accordingly, they have not been audited or reviewed. Not all companies calculate non-IFRS financial measures in the same manner or on a consistent basis and these measures and ratios may not be comparable to measures used by other companies under the same or similar names. A reconciliation of these non-IFRS financial measures to the most directly comparable IFRS financial measures is contained in this document. For further information on non-IFRS financial measures, see "Chapter 18 Reconciliation of non-IFRS financial measures" in the Annual Report 2023. Presentation All amounts are in millions of euros unless otherwise stated. Due to rounding, amounts may not add up to totals provided. All reported data are unaudited. Unless otherwise indicated, financial information has been prepared in accordance with the accounting policies as stated in the Annual Report 2023. Market Abuse Regulation This presentation contains information within the meaning of Article 7(1) of the EU Market Abuse Regulation. 2 Signify#3Content Business and operational performance - Eric Rondolat Financial performance - Željko Kosanović Outlook and closing remarks - Eric Rondolat Q&A 3 & 6000 000000 1000 0000 LAGA A#4Signify reported Q1 24 sales of EUR 1.5 billion, CSG of -10.1% and an adj. EBITA margin of 8.3% Sales (in EURM) & comparable sales growth (in %) CSG -9.1% -10.1% 1,678 1,468 Q1 23 Q1 24 -8.6% -7.8% -7.7% 1,644 1,649 1,734 Q2 23 Q3 23 Q4 23 Adjusted EBITA (in EURm & as % of sales) % 8.9% 8.3% 8.3% 10.7% 12.1% 149 122 136 177 209 Q1 23 Q1 24 Q2 23 Q3 23 Q4 23 4 • Key observations for Q1 24 126 million connected light points (Q4 23: 124 million) LED-based sales were 87% of total sales Nominal sales decline of 12.5% (including FX impact of -2.6%) to EUR 1,468m Comparable sales decline of 10.1% Adjusted EBITA margin decrease of 60 bps to 8.3% Gross margin improvement Under-absorption of fixed costs Net income of EUR 44m (Q1 23: EUR 28m) Free Cash Flow of EUR 80m (Q1 23: EUR 51m) Signify#5сл The Professional Business reported a CSG of -7.6% Sales (in EURM) & comparable sales growth (in %) Key observations for Q1 24 CSG -6.3% -7.6% 1,046 943 Q1 23 Q1 24 Comparable sales decline of 7.6% • Weak professional sales in Europe Good traction in the Americas Moderate growth in India and emerging markets Signify#6The Consumer Business reported a CSG of -5.7% 6 Sales (in EURM) & comparable sales growth (in %) Key observations for Q1 24 CSG -15.0% -5.7% 328 299 Q1 23 Q1 24 Comparable sales decline of 5.7% Lower LED lamps and luminaires sales • Sales of Hue and Klite stabilized • Inventory levels of retailers have returned to normal levels Signify#7The OEM Business reported a CSG of -7.4% Sales (in EURM) & comparable sales growth (in %) Key observations for Q1 24 CSG -16.7% -7.4% 114 103 Q1 23 Q1 24 Comparable sales decline of 7.4% Inventory levels of the OEM distributors have returned to normal levels in the majority of the business Signify#8The Conventional Business reported a CSG of -34.1% 8 Sales (in EURM) & comparable sales growth (in %) Key observations for Q1 24 CSG -8.5% -34.1% 186 Q123 119 Q1 24 Comparable sales decline of 34.1% • Impact of the fluorescent bans in Europe Q1 23 benefited from a pre-buying effect prior to the bans Signify#9Business highlights Professional Equipping Vienna City Hall in Austria with connected Color Kinetics LED lighting Introducing LumXpert, an industry-first application for professional installers Expanding the collaboration between Philips Hue and Samsung Consumer Achieving two test victories for Philips Hue and WiZ in the Stiftung Warentest 9 PHILIPS PHLIPS Hearto PHIUPS Нат Wiz Together with Ing. Emmerich Csernohorszky GmbH and podpod Design, Signify completely renovated the festive lighting More than 1,100 Color Kinetics luminaires were installed Lower operating and maintenance costs Energy savings of up to 50% The app simplifies and accelerates lighting projects for professional installers In-app design tool enables project management and professional lighting calculations Buy all Signify brands directly from our distributors with competitive delivery times Expanded the collaboration with Samsung SmartThings to optimize the interaction between the Philips Hue Sync TV app, Samsung TVs, and the SmartThings ecosystem The Philips Hue Sync TV app will be made available as a monthly subscription plan in addition to the one-time purchase option Ten smart lamps with and without a base station were tested by Stiftung Warentest in Germany The Philips Hue White & Color Ambiance lamp with Hue Bridge was the overall test winner The WiZ Tunable White & Color E27 (60W) lamp won in the category without a base station Signify#10Brighter Lives, Better World 2025 - Q1 2024 results Doubling our positive impact on the environment and society Brighter Lives Better World Climate action 2019 Baseline Q1 2024 Result 2025 Target 13 CLIMATE ACTION 7 AFFORDABLE AND CLEAN ENERGY Carbon reduction over value chain against Paris Agreement 0 On track 324 MT Circular economy RESPONSIBLE 12 CONSUMPTION AND PRODUCTION Food availability Safety & security Health & well-being Great place to work Circular revenues 11 AND COMMUNITIES 3 GOOD HEALTH AND WELL-BEING Brighter lives revenues 16% 34% 32% 16% 31% 32% DECENT WORK AND ECONOMIC GROWTH Women in leadership positions 17% 28% 34% M 10 10 TM A list for climate and CDP supply chain leader Member of Dow Jones On track PLATINUM Top 1% Sustainability Indices DJSI World Index 2023 ecovadis EcoVadis Platinum Medal and top 1% Sustainability Rating Powered by the S&P Global CSA Off track#11Content Business and operational performance - Eric Rondolat Financial performance - Željko Kosanović Outlook and closing remarks - Eric Rondolat Q&A 11 & 6000 000000 1000 0000 LAGA A#12Adjusted EBITA margin decreased to 8.3%, as gross margin expansion was offset by under-absorption of fixed costs As % of sales 12 8.9% -2.7% +80 bps 2.0% -1.2% -60 bps -0.2% 0.7% 0.8% 8.3% Q1 23 Volume Price/Mix COGS Indirect Costs Currency Other Q1 24 Signify#13Working capital decreased to 7.3%, driven by lower inventories and receivables, partly offset by lower payables In EURm / as % of sales 8.3% 13 617 -273 -100 bps 224 -95 7.3% 0 473 Q1 23 Inventories Trade & other receivables Trade & other payables Other working Q1 24 capital items Signify#14Content Business and operational performance - Eric Rondolat Financial performance - Željko Kosanović Outlook and closing remarks - Eric Rondolat Q&A 14 & 6000 000000 1000 0000 LAGA A#15Outlook 15 % For 2024, Signify continues to expect: An Adjusted EBITA margin improvement of up to 50 bps, including first benefits from the announced restructuring program Free cash flow generation of 6-7% of sales, including an incremental and non-recurring negative impact around EUR 150m related to the restructuring program and a reduction of US pension liabilities Signify#16Q&A กศ HAKAKAHAR#17Currency movements had a negative impact on sales and a positive impact on the Adjusted EBITA margin Q1 24 Sales FX Footprint (% of total) 17 Other Currencies, 29% CNY, 6% Key observations Overall currency impact of -2.6% on sales, mainly from USD and CNY depreciation. EUR, 26% • Impact of +0.7% on the Adjusted EBITA margin. USD, 39% EUR USD CNY Other Currencies Signify#18Net income increased to EUR 44m, mainly due to lower financial expenses and higher EBIT From Adjusted EBITA to net income (in EURm) Q1 23 Q1 24 1 Adjusted EBITA 149 122 - Restructuring -47 -22 - Acquisition-related charges -3 -3 1 - Other incidental items -16 -15 EBITA 83 82 Amortization -22 -17 EBIT 61 64 Net financial income / expenses -30 -16 Income tax expense -3 -4 Results from investments in associates 0 0 Net income 28 44 18 Key observations Non-recurring items by nature and relate to: A one-day FX loss from the devaluation of the Egyptian pound by the Egyptian government (EUR 10m) Environmental provisions for inactive sites and the discounting effect of long-term provisions (EUR 4m) Other items with an effect of EUR 1 million loss Signify#19Free cash flow increased to EUR 80m, mainly due to a stabilization of working capital following last year's improvements Free cash flow (in EURM) Q1 23 Q1 24 Income from operations 61 64 Depreciation and amortization 71 68 Additions to (releases of) provisions 77 39 • Utilizations of provisions -52 -66 Change in working capital -53 1 Net interest and financing costs -4 -3 received (paid) Income taxes paid -23 -18 Net capex -30 -22 Other 4 17 Free cash flow 51 80 As % of sales 3.1% 5.5% Key observations Free cash flow of EUR 80m Stabilization of working capital following last year's improvements Restructuring payout of EUR 34m (Q1 23: EUR 21m) 19 Signify#20Signify