Amsterdam, the Netherlands – Koninklijke Philips N.V. (“Royal Philips” or the “Company”) today announced that it will deliver a notice of redemption to the holders of the outstanding 3.750% Notes due 2022 (with CUSIP Number 500472AF2) (the “Notes”) in the aggregate principal amount of USD 1,000,000,000. The redemption of the Notes is part of Philips’ efforts to further drive balance sheet efficiency.

In accordance with the terms of the Notes, the Company may redeem the Notes at the Company’s option, at any time at a redemption price that will be determined as described below. This provision is known as the “Make-Whole Option”. The full redemption of the Notes by the Company pursuant to the Make-Whole Option is not subject to the election of holders of the Notes.

The Notes will be redeemed on April 26, 2018, at a price equal to par plus a make-whole premium calculated in accordance with the terms of the Notes and accrued and unpaid interest to, but not including, the redemption date.

Holders of the Notes should contact the bank or broker through which they hold a beneficial interest in the Notes for information about obtaining the redemption payment for the Notes in which they have a beneficial interest.

This is not an offer to sell or a solicitation of an offer to buy any securities.

Anticipated Cash Flow and Income Consequences
The redemption is expected to result in a cash outflow at the redemption date of approximately USD 1,032 million (approximately EUR 840 million). The redemption will be reflected in the profit and loss account on the financial income and expenses line in the first quarter of 2018, resulting in a reduction of income before taxes by approximately USD 36 million (approximately EUR 29 million). The final consequences for cash outflow and for income before taxes will be recognized in the second quarter of 2018 (following price determination on the third business day preceding the redemption date). In each case, these amounts do not include accrued interest or fees and expenses related to the redemption. The redemption will result in a reduction in yearly interest expenses going forward.