1. Confidential Segment Objectives defined in 2008 1 Insights Well Being & Store Experience Concepts Explored Lighting More Complex  Simplifying Lighting Green Store Sustainability & TCO Bringing Brands to Life Ambience & Expressing Enabling Key Explored Themes Marketing Campaign 2009 Marketing Campaign 2010

2. Confidential Segment Objectives defined in from 2009 onwards 2 Insights Well Being & Store Experience Concepts Explored Lighting More Complex  Simplifying Lighting Green Store Sustainability & TCO Bringing Brands to Life SMART Range (Trade) Key Explored Themes Marketing Campaign 2009 Marketing Campaign 2010 Ambience & Expressing Enabling

3. Confidential Insight Platforms 3 Hyper/Supermarkets (incl Conv Stores) Green Store Shops Bringing Brands to Life Shops SMART Range Focus on Aspirational Upcoming Asian Shops Focus on Mid & High End Shops Focus Hyper and Super Markets

4. Confidential4 Proposition - ‘SMART Range’ Building Platform Philips is the long term reliable partner to support you to grow your business Easy to work with Proposition Benefits Reason to believe -’One stop shop’ :  wide portfolio at competitive price points  wide distribution, easy to access -reliable portfolio (quality  ‘true CCC’ / all certifications in place) -service  after sales / complaint handling -speed to fulfill projects -training  selling skills/ ‘hunting’, application & product knowledge -Basic design support / tips - Philips online is the partner’s online ‘business card' (valid only for China) -100 years brand -trust that you will find Philips in the next years -trust that in case issues your problem will be solved -assured that innovations will continue Lighting is a key factor for shops’ attractiveness. Renovation is very fast in Asia, so the system has to be affordable, attractive and preferably from a partner that can manage the whole deal, including the advice on how to apply it easily Context Interior designers/contractor company and shop owners TA ExpertiseBrand Product SMART HID, SMART Spot & Track, SMART Office, SMART CFLni, SMART CFLi, T5 batten, SMART Modular, SMART Halogen Downlight, Harmony lamps Battens, HID luminaries, Spot and track luminaries, Recessed luminaries, downlights, scrabble Full range of lamps, including LED’s Key Product Categories It is all about helping them to generate more business

5. Confidential 5 Mood Board “We must differentiate. We need options” “Most international brands are too expensive for the regional needs” “ We have no real partner in the region” “We miss regional focus. All concepts here are imported” “I want to Show Off with Green” “Installation costs are a hurtle” “We miss a ‘one stop shop’” “How can we link Light to Emotion?” “We need a reliable brand but it has to be affordable” “We want more form and factor flexibility” “Green is high in my agenda” “It is hard to replace halogen…. its beautiful ‘dramatization’ and sparkling effects” “LED’s change so fast. I can’t keep up with it” “How can we enhance Indian colors?” “Power shortage is an issue to us” “Light can be complex” “If we could we would put a solar panel in the entrance to show that we are working on green” “Diffuse Lighting? Interesting…” “Play with Light? Only when it is very simple to use” “TCO is important but Initial investment also is”

6. Confidential 6 Mood Board “50% of the work is to get people in the store. Light can be engaging” “Value for money is more important in APR. Our purchase power is still lower” “ We change collections every 2 wks” “If light is not tangible, it is difficult to convince the retailer to invest. It has to support the brand” “Green is still a lot about showing off, but it will change soon” “Installation and maintenance are key concerns” “Creative freedom is all what designers look for” “Intelligent lighting would be interesting, so we do not need so many people walking around” “Light is still too complex. Not only the light source itself but the whole process around it (installation, maintenance, ….). Integration is a must” “In India, energy shortage and voltage fluctuation are a major issue usually forgotten by manufacturers” “CAPEX x OPEX : that is all about it” “Design has to come with a story. It is all about the story telling” “Decisions are made in the fitting room, but it is a space usually forgotten” “Wireless lighting??? “Light has to be easy” “Daylight integration is not yet explored in Asia” “Light pollution will become an issue”

7. Confidential Mood Board “The need to escape” “Home as entertainment hub” “Value isn't cheap” “Good health and wellness are centre stage” “The quest for experience, happiness and wellbeing will continue to gain importance” “Green issues will also continue to take centre- stage – and not just in the rich world” “The search for value for money and rational consumption will continue” “Consumers in Asia are going to be the driving force behind global consumption” "Beauty, after all, is evolutionary” “Asian consumers have always suffered for beauty. Consider the ancient practice of foot binding in China, or the stacked, brass coils used to distend the necks of Karen women” “The future is female. Women control over 83% of all consumer purchases” “COMMUNITY : from B2C to C2C : group purchases, internet, preference for local traders, preference for environment responsible companies (reduce, re-use, recycle)” “VALUE : clear communication (what I am getting for my money?), bidding x buying, freetail (retailers earning money via….)” “NEW FORMATS : labs (try before you buy), pop-ups, forth come choice overload, customization” “TECHNOLOGY: self service tools, mobile purchases (anywhere, everywhere), no boundaries”