1. GSRS Support team Philips Supply Management March 29, 2006 GSRS 2.1 Training Module S.1.3 5 elements explained General

2. Philips Supply Management, GSRS Support team, March 29, 2006 Global Supplier Rating System 2 What are the 5 Supplier Rating Criteria used in GSRS? Objective Rating Criteria: 1.Quality  Sub-criteria: CMP; PPM; PPM Absolute; CNQ; LAR 2.Delivery  Sub-criteria: CLIP; CVP; RLIP; OLIP Subjective Rating Criteria: 3.Costs  Sub-criteria: Pre-defined statements 4.Responsiveness/Support  Sub-criteria: Pre-defined statements 5.Innovation  Sub-criteria: Pre-defined statements

3. Philips Supply Management, GSRS Support team, March 29, 2006 Global Supplier Rating System 3 Result calculation and data sourcing scheme Quality  weekly calculation and rating per material, weekly data upload Delivery  weekly calculation and rating per material, daily data upload Costs  monthly evaluation and rating per supplier / component group Responsiveness  monthly evaluation and rating Supportper supplier / component group Innovation  monthly evaluation and rating per supplier/ component group

4. Philips Supply Management, GSRS Support team, March 29, 2006 Global Supplier Rating System 4 How are the scores distributed between the 5 elements in GSRS? The maximum score obtainable is 100. This is divided between the 5 elements as shown in the table below. The weighting is set in advance by the Product Division. The total score of each element is an aggregation of the sub-element scores. The weighting of the sub-elements is determined and set-up per business. An example of this aggregation is provided in the proceeding slide. Each business decides which sub-criteria will be rated upon in the GSRS system. Where a sub-criteria is not used the scores are simply redistributed proportionally to the sub-criteria which are being used.

5. Philips Supply Management, GSRS Support team, March 29, 2006 Global Supplier Rating System 5 How are the results aggregated further? (an example)