Slides
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Roy Jakobs, Chief Executive Officer Charlotte Hanneman, Chief Financial Officer November 3, 2026 Third quarter 2026 results
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© 2026 Koninklijke Philips N.V. All rights reserved. Important information * Non-IFRS financial measure. Refer to reconciliation of non-IFRS information2 Forward-looking statements and other important information This document and the related oral presentation, including responses to questions following the presentation, contain certain forward-looking statements with respect to the financial condition, results of operations and business of Philips and certain of the plans and objectives of Philips with respect to these items. Examples of forward-looking statements include statements made about our strategy, estimates of sales growth, future Adjusted EBITA*, future restructuring and acquisition-related charges and other costs, future developments in Philips’ organic business and the completion of acquisitions and divestments. Forward-looking statements can be identified generally as those containing words such as “anticipates”, “assumes”, “believes”, “estimates”, “expects”, “should”, “will”, “will likely result”, “forecast”, “outlook”, “projects”, “may” or similar expressions. By their nature, these statements involve risk and uncertainty because they relate to future events and circumstances and there are many factors that could cause actual results and developments to differ materially from those expressed or implied by these statements. These factors include, but are not limited to, macro-economic and geopolitical changes – including the war in Ukraine and ongoing tensions in the Middle East – as well as measures such as enacted and proposed tariffs and trade actions introduced in response to rising global tensions; Philips’ ability to keep pace with the changing health technology environment; Philips’ ability to gain leadership in artificial intelligence and health informatics in response to developments in the health technology industry; integration of acquisitions and their delivery on business plans and value creation expectations; ability to meet expectations with respect to ESG-related matters; securing and maintaining Philips’ intellectual property rights, and unauthorized use of third-party intellectual property rights; failure of products and services to meet quality or security standards, adversely affecting patient safety and customer operations; the resilience of our supply chain; challenges in simplifying our organization and our ways of working; attracting and retaining personnel; breach of cybersecurity; challenges in driving operational excellence and speed in bringing innovations to market; treasury and financing risks; tax risks; reliability of internal controls; compliance with regulations and standards involving quality, product safety, (cyber) security and artificial intelligence; and compliance with business conduct rules and regulations including privacy, existing and upcoming ESG disclosure and due diligence requirements. As a result, Philips’ actual future results may differ materially from the plans, goals and expectations set forth in such forward-looking statements. For a discussion of factors that could cause future results to differ from such forward-looking statements, see also the Further information chapter included in the Annual Report 2025. Third-party market share data Statements regarding market share contained in this document, including those regarding Philips’ competitive position, are based on outside sources such as specialized research institutes, as well as industry and dealer panels, in combination with management estimates. Where information is not yet available to Philips, market share statements may also be based on estimates and projections prepared by management and/or based on outside sources of information. Management’s estimates of rankings are based on order intake or sales, depending on the business. Market Abuse Regulation This press release contains inside information within the meaning of Article 7(1) of the EU Market Abuse Regulation. Use of non-IFRS Information In presenting and discussing the Philips Group’s financial position, operating results and cash flows, management uses certain non-IFRS financial measures. These non-IFRS financial measures should not be viewed in isolation as alternatives to the equivalent IFRS measure and should be used in conjunction with the most directly comparable IFRS measures. Non-IFRS financial measures do not have standardized meaning under IFRS and therefore may not be comparable to similar measures presented by other issuers. A reconciliation of these non-IFRS measures to the most directly comparable IFRS measures is contained in this document. Further information on non-IFRS measures can be found in the Annual Report 2025. Presentation All amounts are in millions of euros unless otherwise stated. Due to rounding, amounts may not add up precisely to totals provided. All reported data is unaudited. Financial reporting is in accordance with the accounting policies as stated in the Annual Report 2025. Certain prior-year balances have been reclassified to conform to the current period presentation.
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Q3 highlights • Comparable order intake increased by 8%, driven by very strong Diagnosis & Treatment • Comparable sales grew 3%, led by Personal Health and Connected Care, with Diagnosis & Treatment flat; 3.5% growth YTD 2026 • Adj. EBITA margin increased 70 bps to 13.0%; 30 bps expansion YTD 2026 despite cost inflation and tariffs, excluding the US tariff refund • Disciplined cost management and productivity initiatives delivered EUR 170 million in net savings; EUR 427 million YTD 2026 • Respironics reached an agreement in principle with the U.S. DOJ and recorded a provision of EUR 288 million1 2026 Outlook reiterated: • Comparable sales growth: 3% - 4.5% • Adj. EBITA margin: 13.5% - 14.0%, including a US tariff refund benefit of ~1% • Free cash flow: EUR 1.5 - 1.7 billion, including a net US tariff refund benefit of ~EUR 200 million 3 Key takeaways © 2026 Koninklijke Philips N.V. All rights reserved. Note: within the context of an uncertain macro-environment, Philips' 2026 outlook includes currently known tariffs and assumes payment of the US DOJ settlement in the first quarter of 2027. The outlook excludes other ongoing Philips Respironics-related proceedings, including the investigation by the US State Attorneys General. 1. The settlement is subject to finalization of the relevant documentation.
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© 2026 Koninklijke Philips N.V. All rights reserved. 4 1. Mainly composed of equipment orders in Diagnosis & Treatment and Connected Care businesses Comparable equipment order intake growth1 Indexed equipment order book1 development 8% 7% 6% -1% 8% 5% Q3 2025 Q4 2025 Q1 2026 Q2 2026 Q3 2026 In the quarter Rolling last twelve months • Order book higher sequentially and year-on-year, with inherent quarterly unevenness • Growing share of multi-year Monitoring- and Software-as-a- Service agreements, driving recurring revenue growth • Order book accounts for ~40% of revenue • Growth approached 20% in Diagnosis & Treatment; broad-based strength and double-digit growth in both Image-Guided Therapy and Precision Diagnosis • Connected Care declined mid-single digits, against over 20% growth in the prior-year and reflecting the timing of large orders Commercial momentum and a strong order book support delivery of our 2026 outlook and beyond Q3 2025 Q4 2025 Q1 2026 Q2 2026 Q3 2026 0%
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© 2026 Koninklijke Philips N.V. All rights reserved. 5 AI-enabled innovations and strategic partnerships driving strong commercial momentum Diagnosis & Treatment Connected Care Personal Health EPIQ CVxBlueSeal MR 5300 Spectral Verida CT 5300 Building durable growth through long-term as-a-service agreements Partnerships with Avera Health and Ontario Health expand our reach across monitoring and enterprise imaging informatics Supporting standardized patient monitoring across multiple hospitals and province-wide imaging modernization Driving category growth for our top retail partners Market share gains and strong sell- out, driven by category leadership, innovation and premiumization— winning more shelf space with key retailers IPL Avent series Avent series Shaver 9000 OneBlade Winning vendor-of-choice positions at major US health systems One open integrated interventional platform creating opportunities for growth and installed base expansion Azurion 7 Innovations contributing to order momentum Spectral CT portfolio order book grew double digits YoY CT 5300 order book nearly doubling YoY BlueSeal MR ~75% of our MR systems shipped year- to-date were helium-free
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© 2026 Koninklijke Philips N.V. All rights reserved. 6 Our platforms, clinical differentiation and AI capabilities extend leadership and create new growth opportunities across the portfolio 1. Advanced Research Projects Agency for Health, an agency within the U.S. Department of Health and Human Services (HHS) Autonomous Interventions and Robotics (AIR) program | 2. Based on at home IPL devices in market Philips selected for ARPA-H1 Advancing AI-enabled robotic stroke care through Azurion with Johns Hopkins University and Boston University, developing remote-assisted and increasingly automated interventions Philips and Imricor introduced First commercially available cardiac interventional MR lab solution enabling radiation-free, MR-guided cardiac interventions First at-home IPL hair removal device Lumea 9900 Pro with real-time audio feedback and motion guidance that talks to you2 Image-Guided Therapy Magnetic Resonance Personal Health
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© 2026 Koninklijke Philips N.V. All rights reserved. 8 Disciplined execution across evolving demand and geopolitical dynamics North America Strong Rest of world Solid with pockets of strong growth Europe Strong Greater China Centralized procurement expansion Diagnosis & Treatment and Connected Care Personal Health Measured Strong Subdued Strong Key drivers • Productivity • Patient volume • Health system financial improvement Productivity and digitalization • Localization • Impact of anti-corruption act, centralized procurement and stimulus Infrastructure investments and digitalization Global hospital demand and consumer sentiment
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© 2026 Koninklijke Philips N.V. All rights reserved. 9 Diagnosis & Treatment Image-Guided Therapy Azurion • Mid-single-digit growth in Image-Guided Therapy; mid-single- digit decline in Precision Diagnosis, due to Ultrasound and China • Ultrasound impacted by shipment delays related to manufacturing process improvements; production ramping since late Q3 • Adj. EBITA margin increased 50 bps to 12.3%, driven by higher gross margin from innovation and productivity measures, partly offset by cost inflation Financial performance In millions of EUR unless otherwise stated Q3 2026 Q3 2025 Sales 2,085 2,080 Comparable sales growth 0% 1% Adj. EBITA margin 12.3% 11.8% Income from operations 219 200 Q3 2026 highlights © 2026 Koninklijke Philips N.V. All rights reserved.
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© 2026 Koninklijke Philips N.V. All rights reserved. 10 Connected Care © Koninklijke Philips N.V. Monitoring Visual Patient Avatar Financial performance In millions of EUR unless otherwise stated Q3 2026 Q3 2025 Sales 1,176 1,200 Comparable sales growth 5% 5% Adj. EBITA margin 13.3% 11.4% Income from operations -1951 12 © 2026 Koninklijke Philips N.V. All rights reserved. Q3 2026 highlights • Mid-single-digit growth in Monitoring and Sleep & Respiratory Care; high-single-digit growth in Enterprise Informatics, partly benefiting from the timing of larger implementations • Broad-based growth across all regions • Adj. EBITA margin increased 190 bps to 13.3%, driven by higher sales, higher gross margin, favorable mix effects, and productivity measures, partly offset by cost inflation 1. Including a EUR 288 million Respironics DOJ settlement provision
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© 2026 Koninklijke Philips N.V. All rights reserved. 11 Personal Health NOTE FROM ZOW: Option A © Koninklijke Philips N.V. Grooming & Beauty Lumea IPL 9000 Q3 2026 highlights Financial performance In millions of EUR unless otherwise stated Q3 2026 Q3 2025 Sales 953 883 Comparable sales growth 8% 11% Adj. EBITA margin 17.7% 17.1% Income from operations 165 143 • Broad-based growth across all businesses and regions, driven by category leadership, innovation and premiumization • Strong Europe and Growth geographies; North America grew following a double-digit prior-year increase • Adj. EBITA margin expanded 60 bps to 17.7% driven by higher sales and productivity measures, partly offset by advertising & promotion spend to sustain demand for our innovations © 2026 Koninklijke Philips N.V. All rights reserved.
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© 2026 Koninklijke Philips N.V. All rights reserved. Continued momentum and disciplined execution despite an uncertain macro-environment 12 Q3 2026 vs Q3 2025 In millions of EUR unless otherwise stated • Growth led by Personal Health and Connected Care with Diagnosis & Treatment flat • Growth across all regions, led by Europe • Margin expansion across all three segments • Mainly driven by higher sales, higher gross margin, and productivity measures, partly offset by cost inflation • Free cash flow driven by higher cash earnings and lower working capital outflows • Leverage ratio1 improved from 2.2x to 1.7x 1. On a net debt to adjusted EBITDA basis 4,393 Comparable Sales Growth 3% Sales 569 Adjusted EBITA margin 13.0%, +70 bps Adjusted EBITA 384 Year-on-year improvement +212 Free Cash Flow
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© 2026 Koninklijke Philips N.V. All rights reserved. Strong margin expansion driven by sales growth, higher gross margin and productivity measures, more than offsetting inflation 13 12.3% 0.5% 2.2% -1.8% -0.3% 13.0% Adj. EBITA Q3 2025 Volume, business mix, innovation Productivity, pricing Cost inflation and tariffs FX, other Adj. EBITA Q3 2026 Group Adj. EBITA margin1 Q3 2026 1. Excluding restructuring costs, acquisition-related charges and other items
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© 2026 Koninklijke Philips N.V. All rights reserved. Productivity initiatives delivered EUR 427 million year-to-date; on track to deliver our EUR 1.5 billion program 2026-2028 14 Q3 2026 To date Q1 2026 – Q3 2026 Cost competitiveness Project Synchronize • Platform & SKU optimization • Lower costs and unlock R&D capacity • Improve quality & supply chain reliability EUR 170 million EUR 427 million Lean enabling functions Simplify to Perform • Lean central functions, operating at best-in-class cost benchmark levels • AI-enabled efficiencies in Marketing, R&D, Services Tariff mitigation • Currently known tariff impact fully mitigated by end of 2028 • Accelerate targeted regionalization • Supplier and network optimization Productivity initiatives net savings In millions of EUR unless otherwise stated Note: Within the context of an uncertain macro-environment, Philips' 2026 outlook includes currently known tariffs and assumes payment of the US DOJ settlement in the first quarter of 2027. The outlook excludes other ongoing Philips Respironics-related proceedings, including the investigation by the US State Attorneys General
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© Koninklijke Philips N.V. 2026 outlook
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© 2026 Koninklijke Philips N.V. All rights reserved. Philips reiterates 2026 outlook 17 Comparable sales growth 3%-4.5% • Diagnosis & Treatment: upper end of low-single-digit range; Q4 acceleration supported by Ultrasound shipments phasing from Q3 and order book conversion • Connected Care: within the outlook range of 3%-4.5% • Personal Health: lower end of high-single-digit range • Growth led by North America and International Regions; Greater China expected to be broadly stable • Expansion driven by sales growth, innovation, favorable mix effects and productivity • Annualized tariffs and input cost inflation, with mitigation actions expected to increase during the second half of the year through supply chain optimization, cost discipline, and selective pricing • Includes a US tariff refund benefit of ~1% Adj. EBITA margin 13.5%-14.0% • Higher earnings and lower adjusting items, partly offset by a targeted increase in capital expenditure related to selective localization, multi-modality manufacturing, and tax • Includes a net US tariff refund benefit of ~EUR 200 million • Assumes payment of the US Department of Justice settlement in Q1 2027 Free Cash Flow EUR 1.5-1.7 billion Full-year 2026 Note: Within the context of an uncertain macro-environment, Philips' 2026 outlook includes currently known tariffs and assumes payment of the US DOJ settlement in the first quarter of 2027. The outlook excludes other ongoing Philips Respironics-related proceedings, including the investigation by the US State Attorneys General.
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© 2026 Koninklijke Philips N.V. All rights reserved. Full-year 2026 Restructuring, acquisition-related charges and other items 18 • Mainly related to the Consent Decree, other quality action -related charges, and acquisition-related charges • Includes a EUR 288 million Respironics DOJ settlement provision recorded in Q3 2026 • Cost competitiveness (Project Synchronize) • Lean enabling functions (Simplify to Perform) Restructuring costs ~60 bps Other items ~280 bps ~120 bps excl. DOJ settlement, unchanged vs. prior outlook Restructuring costs, other items • EUR 170 million: Diagnosis & Treatment 30 million, Connected Care 55 million, Personal Health 5 million, segment Other 80 million Q4 2026 Note: Within the context of an uncertain macro-environment, Philips' 2026 outlook includes currently known tariffs and assumes payment of the US DOJ settlement in the first quarter of 2027. The outlook excludes other ongoing Philips Respironics-related proceedings, including the investigation by the US State Attorneys General.
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© 2026 Koninklijke Philips N.V. All rights reserved. Latest FX, below the line items and segment Other outlook 19 Q4 2026 Full year 2026 FX, consolidation and deconsolidation impact on sales1 1.5% -2.5% Diagnosis & Treatment 2.5% -2.0% Connected Care (including divestment of Emergency Care2) -3.0% -8.0% Personal Health 1.5% -2.0% Effective tax rate 24 – 26% Financial income and expense (EUR million) ~ -2303 Segment Other (EUR million) Sales ~185 – 1954 ~ 720 – 7304 Adj. EBITA ~ -10 ~0 EBITA ~ -90 ~ -120 1. Based on September 2026 FX rate. Final impact subject to change based on FX movements and geographic sales mix | 2. Completed in Q4 2025 and represented ~5% of Connected Care sales in 2026 and a low margin profile. The divestment is expected to be slightly accretive to Adjusted EBITA margins, with no expected impact on Comparable Sales Growth | 3. Previous outlook: EUR -240 million to -260 million | 4. Segment Other sales outlook increased from EUR 680–700 million previously to EUR 720–730 million, mainly reflecting divestment-related activities that are excluded from Comparable Sales Growth and contribute only a negligible amount to Adjusted EBITA. Related sales are expected to be approximately EUR 50 million in Q4 2026 and EUR 170 million for the full year 2026. Note: Within the context of an uncertain macro-environment, Philips' 2026 outlook includes currently known tariffs and assumes payment of the US DOJ settlement in the first quarter of 2027. The outlook excludes other ongoing Philips Respironics-related proceedings, including the investigation by the US State Attorneys General.
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© Koninklijke Philips N.V. Financial appendix
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© 2026 Koninklijke Philips N.V. All rights reserved. In millions of EUR unless otherwise stated In millions of EUR unless otherwise stated Working capital and inventories 23 Group working capital1 Group inventories Diagnosis & Treatment Connected Care Personal Health as % of last twelve months sales2 12.7% 9.5% 9.9% 10.8% 11.0% 1,000 1,500 2,000 2,500 Q3 2025 Q4 2025 Q1 2026 Q2 2026 Q3 2026 13.3% 8.7% 10.2% 9.6% 10.7% 0 500 1,000 1,500 Q3 2025 Q4 2025 Q1 2026 Q2 2026 Q3 2026 18.3% 16.1% 17.6% 18.2% 19.2% 1,500 2,500 3,500 Q3 2025 Q4 2025 Q1 2026 Q2 2026 Q3 2026 17.0% 16.2% 14.8% 17.3% 16.7% 12% 14% 16% 18% 500 700 900 Q3 2025 Q4 2025 Q1 2026 Q2 2026 Q3 2026 as % of last twelve months sales2 1. Working capital excluding segment Other | 2. Excluding acquisitions, divestments, and discontinued operations 5.2% 2.1% 2.5% 4.9% 4.6% - 150 300 Q3 2025 Q4 2025 Q1 2026 Q2 2026 Q3 2026
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© 2026 Koninklijke Philips N.V. All rights reserved. 0.0 0.2 0.4 0.6 0.8 1.0 1.2 1.4 1.6 1.8 <12 months 2027 2028 2029 2030 2031 2032 2033 2034 2035 2038 2042 Thousands Debt maturity profile and liability management 24 Long-term debt profile and liability management • Total net debt position of EUR 5.4 billion • Issued EUR 650 million of bonds under the European Green Bond Standard • Maturities up to 2042 • Average tenor of long-term debt is 6.0 years3 • No financial covenants • EUR 1 billion of committed credit facilities 1. Excluding long-term operating leases | 2. Short-term debt includes local credit facilities that are being rolled forward on a continuous basis as well as Commercial Paper | 3. Based on long-term debt only Debt maturity profile as per September 30, 2026 in billions of EUR unless otherwise stated Long-term debt1 Short-term debt2 Un-utilized standby and other committed facilities Forward share repurchases
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© 2026 Koninklijke Philips N.V. All rights reserved. Net capital expenditures, depreciation and amortization 25 In millions of EUR unless otherwise stated Q3 2026 Q3 2025 Net capital expenditures -160 -155 Depreciation -138 -147 Amortization and impairment: -117 -156 of acquired intangible assets -52 -79 of other intangible assets -65 -78 Note: Amounts may not add up due to rounding
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© 2026 Koninklijke Philips N.V. All rights reserved. Restructuring, acquisition-related charges and other items 26 1. Quality actions | 2. Respironics field-action running costs | 3. Respironics consent decree charges | 4. Contract settlement gain | 5. Portfolio realignment charges | 6. Respironics DOJ settlement provision In millions of EUR unless otherwise stated Q1 2026 Q2 2026 Q3 2026 Q1 2025 Q2 2025 Q3 2025 Q4 2025 FY 2025 Restructuring and acquisition- related charges Diagnosis & Treatment (34) 11 11 14 15 6 8 43 Connected Care 23 (101) 5 15 17 33 60 126 Personal Health 2 2 - 3 5 4 4 17 Segment Other 30 3 3 34 8 13 19 74 Philips Group 22 (86) 18 67 46 57 91 260 Other items Diagnosis & Treatment 4 51) 51) - 211) 221) 331) 77 Connected Care 351)2)3) 1011)2)3)5) 3221)2)3)6) 761)2)3) 201)2)3)4) 361)2)3) 561)2)3)4) 188 Personal Health - - - - - - - - Segment Other - - 7 - - 7 (2) 5 Philips Group 39 106 335 76 41 65 88 270 Restructuring, acquisition- related charges & other items Restructuring 61 (32) 14 61 43 52 86 242 Acquisition-related charges (39) (54) 4 6 3 5 5 19 Other items 39 106 335 76 41 65 88 270 Philips Group 61 20 353 143 86 122 179 531