June 7, 2022

Amsterdam, the Netherlands – Royal Philips (NYSE:PHG, AEX: PHIA))) today announced that the exchange ratio for the dividend in shares for the year 2021 has been determined. The exchange ratio is 1 new common share for every 27.3184 existing common shares. This ratio was based on the volume weighted average price on Euronext Amsterdam of June 1, 2 and 3, 2022, of EUR 23.1906 and was calculated in a manner that the gross dividend in shares is approximately equal to the gross dividend in cash.

Shareholders were given the opportunity to make their choice between cash and shares between May 16, 2022 and June 3, 2022. If no choice was made during this election period, the dividend will be paid in cash. Both the dividend in cash and the dividend in shares will be made payable to shareholders from June 8, 2022.

For 44.5% of the currently outstanding shares, an election was made for a share dividend, resulting in the issuance of 14,174,568 new common shares. Upon distribution of the dividend shares, the total issued share capital will amount to EUR 179,614,707.40, representing 898,073,537 common shares.

As communicated earlier, Philips intends to have 19,571,218 shares delivered through the early settlement of forward contracts in the remainder of 2022. These forward contracts were entered into as part of the EUR 1.5 billion share repurchase program for capital reduction purposes, as announced on July 26, 2021. Philips expects to cancel a total of 28,329,673 shares (including 8,758,455 treasury shares already held) before the end of the year, which would result in 869,743,864 issued common shares at year-end 2022 (2021: 883,898,969). More information is available via this link.

For further information, please contact:

Ben Zwirs

Philips Global Press Office

Tel.: +31 6 15213446

E-mail: ben.zwirs@philips.com

Derya Guzel

Philips Investor Relations

Tel.: +31 20 59 77055

E-mail: derya.guzel@philips.com

About Royal Philips

Royal Philips (NYSE:PHG, AEX: PHIA))) is a leading health technology company focused on improving people's health and well-being, and enabling better outcomes across the health continuum – from healthy living and prevention, to diagnosis, treatment and home care. Philips leverages advanced technology and deep clinical and consumer insights to deliver integrated solutions. Headquartered in the Netherlands, the company is a leader in diagnostic imaging, image-guided therapy, patient monitoring and health informatics, as well as in consumer health and home care. Philips generated 2021 sales of EUR 17.2 billion and employs approximately 79,000 employees with sales and services in more than 100 countries. News about Philips can be found at www.philips.com/newscenter.

Forward-looking statements

This release contains 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 the strategy, estimates of sales growth, future EBITA, future developments in Philips' organic business and the completion of acquisitions and divestments. 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.

Philips announces exchange ratio for 2021 dividend