1. Building the leading company in
health and well-being
An introduction to Philips
Amsterdam, 14th-15th April 2011
Marcus Evans Conference

2. A well-respected, blue-chip
company for 120 years
Founded in 1891
Headquartered in Amsterdam, the Netherlands
Sales over EUR 25.4 billion in 2010 (USD 33.8 billion)
33% of sales generated in emerging markets
Globally recognized brand (world top 50)
Our brand value doubled to $8.7bln since 2004
119,000 employees
Sales and service outlets in over 100 countries
€1.6 billion investment in R&D, 6% of sales
50,000 patent rights – 36,000 registered trademarks –
63,000 design rights
2

3. Philips defined: we are…
“…a global company of leading businesses
creating value with meaningful innovations that
improve people’s health and well-being.”
Health and well-being Meaningful innovations
A commitment to healthy, fulfilled lives Improving people’s lives
in our communities and societies Going beyond technology
our world Introduced at the right time
3

4. Our focus on Health and Well-being
Our portfolio leverages critical global trends
Aging population
Increased consumer
empowerment and
sustainable lifestyles
Climate change and
sustainable development
Rise of emerging
4 markets
4

5. Our Health and Well-being offer
is powered by 3 businesses
2010
Healthcare
Lighting
Consumer Lifestyle
5

6. Healthcare
Global trends
• Ageing population leading to an increase in chronic conditions
• Urbanization and rise of emerging markets leading to lifestyle
changes, fueling cardiovascular illnesses and respiratory and
sleeping disorders
Business priorities
• Move towards leadership position in Imaging Systems:
• At annual RSNA meeting, Philips unveiled “Imaging 2.0”,
a concept fueled by 8 breakthrough innovations
• Construction of healthcare R&D facility for Cardiovascular
X-ray equipment India
• Grow our Home Healthcare business:
• Increase awareness and treatment of Obstructive Sleep
Apnea (OSA) focused on emerging markets
• Strengthen leadership in Home Healthcare with the
acquisition of medSage Technologies LLC, a leading
provider of patient interaction and management
applications for home care providers
6

7. Healthcare
Philips Healthcare
Businesses1 Sales & services geographies1
Imaging Home Patient Care Customer North America International Emerging
Systems Healthcare and Clinical Services Markets
Solutions Informatics
39% 14% 21% 26% 45% 35% 20%
€8.6 35,000+ 8% 450+
Billion sales People employed of sales invested in R&D Products & services
in 2010 worldwide in 100 countries in 2010 offered in over 100 countries
1 2010 split

8. Consumer Lifestyle
Global trends
• Consumers are increasingly focused on their
Health and Well-being
• The already substantial middle and upper income segments
of Emerging Markets are growing fast
• Back to basics: consumers want simple propositions from
trusted brands
Business priorities
• Accelerate growth in four defined value spaces:
Healthy Life; Personal Care; Home Living; Interactive Living
• Maximize Health & Wellness opportunity
• Invest and prioritize Asia-first innovations for local and
global markets
• Improve market shares in BRIC and key markets
• Take decisive action to bring TV to profitability
8

9. Consumer Lifestyle
Philips Consumer Lifestyle
Businesses1 2 Geographies1
Personal Health & Domestic Television Audio Accessories Mature Emerging
Care Wellness Appliances Video Markets Markets
Multimedia
13% 7% 17% 36% 13% 10% 60% 40%
€8.9 17,000+ 4% €0.3
Billion sales People employed of sales invested Billion negative NOC
in 2010 worldwide in R&D in 2010 for TV end 2010
1 2010 split
2 Other category (4%) is mainly license income and is omitted from this overview

10. Lighting
Global trends
• Ongoing urbanization and globalization
• Increasing need for energy efficient solutions
• Fast growing global illumination market, partly driven by
expanding renovation market
• Rapid adoption of LED-based lighting solutions worldwide
Business priorities
• Launch new professional solutions with specific emphasis on
being a leader in professional outdoor lighting solutions
• Substantially grow home lighting solutions business
for consumers
• Develop and market new forms of versatile and energy
efficient LED innovations
• Maximize the profitability of our conventional lighting business
10

11. Lighting
Philips Lighting
Customer Segments1
Homes Offices Outdoor Industry Retail Hospitality Entertainment Healthcare Automotive
24% 17% 17% 11% 13% 5% 2% 3% 8%
€7.6 53,000+ 5% 80,000+
Billion sales People employed of sales invested Products & services
in 2010 worldwide in 60 countries in R&D in 2010 offered in 2010
1 Indicative split

12. Our global reach
Focused portfolio through strategic acquisitions*
Interactive Medical Developments (2008)
Genlyte (2008) Tomcat (2008)
Traxtal (2009) MedSage (2011) Street Controls(2010)
Burton (2010) Raytel (2007) Somnolyzer (2010)
Saeco (2009)
CDP Medical Ltd. (2010)
Teletrol (2009) Shenzhen Goldway (2008)
Lighting Technologies (2007)
Optimum (2011)
Discus (2010) NSW (2010)
Ilti Luce (2009)
Luceplan (2010)
InnerCool Therapies (2009) Medel (2008) Apex (2010)
Visicu (2008)
Alpha X-Ray (2008)
Respironics (2008) Meditronics (2008)
Dynalite (2009)
Wheb Sistemas (2010) Preethi (2011)
Emergin (2007) VMI-Sistemas Medico (2007) Selecon (2009)
Tecso Informatica (2010) Dixtal Biomedica e Technologia (2008)
Healthcare Lighting Consumer lifestyle Emerging Markets
* Strategic acquisitions since mid-September 2007 until January 2011

13. Unique leadership positions in many markets
Current NPS leadership positions1
Healthcare
Regional Global Regional Regional Global Regional
Cardio Patient Cardiac Radiation Ultrasound Home
vascular Monitoring resuscitation Oncology Systems Healthcare
Consumer
Lifestyle
Regional Global Regional Global Global Regional Global
Male electric Mother and Child Power Female Steam irons Blenders Juicers
shaving & grooming Care Toothbrushes depilation
Lighting
Regional Global Global Regional Global Global
Consumer Professional Lamps Automotive High Power Lighting
Luminaires Luminaires Lighting LEDs Electronics
1 (Co)Leadership is defined as outperforming (>5%) or on par with best competitor, globally or regionally 13

14. Vision 2015
Our ambition
Philips wants to be a global leader in
health and well-being,
becoming the preferred brand
in the majority of our chosen markets.
We believe Philips is uniquely positioned for
growth through its ability to simply make a
difference to people’s lives with meaningful,
sustainable innovations.

15. Looking forward
• Building on our legacy: Philips in its 120th year
• Targeting growth with Vision 2015 strategic
plan
• Responding to fast-changing market
conditions
• Continuing people-focus:
• Highly engaged Philips people
• Seamless transition to new management
• Strong relationships with customers
• Continued creation of meaningful innovations
15

16. Leveraging Digital Marketing
and Social Media
Session:
The Measurement Talk
Amsterdam, 14th-15th April 2011
Marcus Evans Conference

17. 17

18. Survey, let’s have a show of hands
Key Questions in Social Media?
• Is your company ready for Social Media?
• Is your Consumer Care department ready for Social Media?
• Is your Consumer Care Social Media Operation effective?
18

19. Social Media actively used to create brand
preference for Philips
Waking up an arctic
town
19

20. Promotional material of campaign in The Netherlands
Radio Print OOH Special OOH In Store
Online Advertorials
Online Facebook
Banners
Blogs
Websites
YouTube
20

21. In the Netherlands, only small increase in
consideration, but significant increase in brand
preference.
94 94 Pre-wave
82
70 75 Post -wave
66
41 45
21 25 26
15 15 18
Awareness Familiarity Consideration Preference Purchase Ownership Retention
Intent
(unpriced)
Sig Diff @ 95% or above
Base: Pre-wave (150); Post-wave (650)
21

22. A traditional purchase funnel no longer accurately
represents the way consumers interact with
brands.
Source: http://www.mckinseyquarterly.com/Strategy/Strategic_Thinking/The_consumer_decision_journey_2373 22

23. Consumers are moving outside the purchasing funnel -
changing the way they research and buy your
products. Change in approach is a necessity.
The consumer decision
journey Ratings Facebook
2
1
4
3
WoM
&
Syndi-
Reviews
cated
.com Content
After purchasing a search
Mobile
The consumer
product or
Consumers the or
considers an the
Ultimately,add
service, initial
set of brands, based
consumer selects a
subtract brands as
consumer builds
on brand the moment
brand evaluatebased
expectations what
they at perceptions
onof exposure to
and purchase. to
they want.
experience
recent touch points.
inform the next Ongoing
CRM
Registrat
ion
Ratings
decision journey Commun
ities
Care
&
Reviews
23

24. Consumer Care is dealing in a complex environment
dealing with high volumes of consumer interactions
Global Consumer Care Consumer Care Online
 >50 countries
 >30 languages
 >30 million web visitors
 >150 million page views
 >15 million software downloads
 >250 thousand surveys
 60.000 products supported online
worldwide
 7 business product groups
 >30 product categories
 Millions of interactions via repairs &
exchanges
24

25. A change to our traditional strategy was needed to
adopt to new channels
Social Social
Web Owned
Consumers approaching Philips
with a request or problem
Guidance in CC funnel
Share knowledge
Consumer Care, March 24, 2011 25

26. Become organised to support our social media
strategy
CENTRAL SETUP Social
Media
Consumer
Digital
Care
Taskforce
Marketing PR Manager
Social Media
Manager
Manager
MBRM
Flagship
in planning
Community
Manager
DEDICATED LOCAL X-FUNCTIONAL TEAMS
Country Consumer
Internet PR agent Experience
7 BUSINESS Manager Manager
PRODUCT
GROUPS
In-house Local
WebCare
resource & Community
Team
Manager
Agencies
In-house
resource &
vendors 26

27. Social Media objectives as extension
on Consumer Care directives
Aim is to have a sense and simple plan on global and local
Social levels to execute on NPS & Cost of non-quality by
• Fast product quality feedback
Media • Web content enhancements (outside-in)
• Interaction & escalation management
Objectives
Four Foundations:
1. Consumer Care Funnel 2. Making & Keeping 3. Listen, Talk & Support 4. Global Guidance &
Promise Local Execution
Consumer Care, March 24, 2011 27

28. Guidance to our contact channels–
Integration of chat on 3rd party platforms
http://www.prisjakt.nu/produkt.php?p=599262 Consumer Care, March 24, 2011 28

29. Clear roles to reinforce the brands with every
consumer interaction
Making promises
Communicate image
Deliver value
by
by
Marketing
Consumer Care
Keeping promises
TV Radio Print Paper Email Web Store Kiosk IVR Call Product
ad ad ad mail site center
Social Media Channels
Consumer Care, March 24, 2011 29

30. Guidance to our contact channels –
Facebook
Consumer Care, March 24, 2011 30

31. First Listen, then engage on Talking with and
Supporting of our consumers
Consumer Care, March 24, 2011 31

32. Driving NPS & GCR by improving web
content from consumer feedback
Social Media
Topics &
Comments
Issues
Create
Consumer Analyse &
FitGap
data Improve
Data Content
Availability
Successfulness 
NPS Feedback &
Call logs
Web
content
NPS 
Manually
GCR 
Consumer Care, March 24, 2011 32

33. Converting heavy negative detraction
into positive sentiment
OHC - US & UK NPS Oral Health Care (3 months rolling)
>600 relevant social comments
and consumer feedback 0%
comments
from >1500 websites/domains
and from >6000 call logs/NPS
Content
free texts converted into 25 new updates
categorized FAQs
Consumer Care, March 24, 2011 33

34. Assisting our consumers through our
support forum by talking and supporting
Consumer Care, March 24, 2011 34

35. >50% of questions solved by consumers
2 Net TV server
outages cause peak
visits
Objective: Some Facts & Figures:
Drive peer to peer resolution to • Language = English;
support our contact strategy and • Net TV & Blu-Ray
enable fast feedback on software • Rolled out to WE & RU;
• >150.000 visits since July 2010;
and services
• > 900 visitors per day;
• 3.5 minute per visitor, visiting 4 pages;
• > 1200 registered users;
• 15% of Net TV connected users in NL have been
on the forum!
• NPS Measurement in place
Consumer Care, March 24, 2011 35

36. ... lead by strong brand promoters
Super promoter “Toengel”
supported 100+ members
Consumer Care, March 24, 2011 36

37. Global guidance and enablement
37
Local empowerment and execution
Consumer Care, March 24, 2011

38. Example: QQLQ #1 in best handling
consumer complaints - The Netherlands
In the period January to November 2010
Best complaint handling
1. Philips (3,4)
2. Tele2 (3,0)
3. Wehkamp (2,8)
Fastest (within 24 hrs)
1. Tele2
2. TNT Post
3. Wehkamp
Most complaints:
1. Ziggo (1.691)
2. TNT Post (1.528)
3. UPC (1.245)
Worst complaint handling
1. Oxxio (1,5)
2. Nederlandse Energie Maatschappij (NEM) (1,6)
3. Neckermann Reizen (1,7)
Consumer Care, March 24, 2011 38

39. Many other local initiatives, supported
through global guidance and global enablers
Using globally deployed tools
• Google Alerts
• Sysomos
and • Oxyme
many
more • Scup
• Tipyo
• Siebel
• Etc.
Consumer Care, March 24, 2011 39

40. Simple KPIs to measure effectiveness of local Social Media
Operations
KPI Explanation of KPI Example Improvement
Digital Sentiment Monitor the digital sentiment, using the
number of positive, neutral and negative Currently being set up, data not yet sharable
Indicator (DSI) comments.
Avg FQF Turnaround Monitor the performance of the Fast Global
Improved from weeks to hours
Improved from weeks to hours
Time Quality Feedback via social media Escalations
Escalations
% of Solved Questions Monitor the power of the community on
Support Forum
Forum >50% of questions answered
questions answered
by Community Social Owned and Social Web
The successful completion of
NPS on interactions conversations/interactions with Currently being set up, data not yet sharable
consumers in NPS per transaction
The successful completion of
Webcare Sentiment >70% negative sentiments
>50% of negative sentiments
conversations/interactions with
Brazil converted into positive or
into neutral
Indicator consumers in sentiment score (per
positive sentiment
sentiment
channel)
Monitor the impact of social media
>35x more traffic from
traffic from
platforms that increase web traffic Facebook
Web Traffic Volume volume in specific channels (i.e., pages
Facebook after improved
after improved
integration
integration
Support, Online Sales)
Consumer Care, March 24, 2011 40

41. Our answers to the questions
• Is your company ready for Social Media?

• Is your Consumer Care department ready
for Social Media?

• Is your Consumer Care Social Media Operation
effective?
Consumer Care, March 24, 2011
 41

42. Special
training
toolkit for
everyone
involved with
consumer
interactions
Consumer Care, March 24, 2011

43. Thanks for your attention
43