Signify Nv · EURONEXT:LIGHT
Signify Nv — Shareholder Meeting (May 2023)
46 slides from Signify Nv's shareholder meeting presentation, May 16, 2023
Slide 1: Annual General Meeting of Shareholders 2023
Slide 2: Presentation by CEO Eric Rondolat
|. Presentation by CEO Eric Rondolat ®ignify
Slide 3: Full year 2022
Full year 2022 Building our agility in an increasingly volatile external environment * Sales, profit, and cash for the digital divisions represent >85% (FY 21: 80%) * Connected light points rose to 114m (FY 21: 96m) * Connected lighting business & growth platforms grew to almost EUR 2 billion * Comp
Slide 4: Brighter Lives, Better World 2025 - 2022 results
Brighter Lives, Better World 2025 - 2922 results Doubling our positive impact on the environment and society 2019 2022 2025 Baseline Result Target = 132m . c Climate action Q Carbon reduction over value 0 394 MT s chain against Paris Agreement . oO Bp & Circular economy Circular revenues 16% 2% 32%
Slide 5: Signify's Frontiers strategy
Signify’s 5 Frontiers strategy
Slide 6: Build a customer-centric organization
Signify’s 5 Frontiers strategy Build a customer-centric organization Strong customer Net Promoter Score of 44 globally
Slide 7: Deliver differentiated lighting offers
Signify’s 5 Frontiers strategy Deliver differentiated lighting offers Expanded our Ultra Efficient LED portfolio and extended it into the professional sector
Slide 8: Drive growth for sustainability
Signify’s 5 Frontiers strategy Drive growth for sustainability >100 million loT-connected devices WiZ and Philips Hue lamps first to support the Matter standard Connected lighting and growth platform sales grew to almost EUR 2 billion Growth platform revenues grew to almost EUR 400 million
Slide 9: Digitalize and transform for the future
Signify’s 5 Frontiers strategy Digitalize and transform for the future Direct online sales made up 12.5% of revenues Launched new digital channels, improved online presence and platforms
Slide 10: Be a great place to work
10 Signify’s 5 Frontiers strategy Be a great place to work Employee Net Promoter Score of 36 Nearly 80% of senior management and leadership roles were filled internally
Slide 11: Signify is the world leader in lighting
Signify is the world leader in lighting We provide high-quality energy efficient lighting products, systems and services Light sources Luminaires Systems and Services Conventional, LED people in 74 countries and Connected
Slide 12: Transitioned successfully to an LED-based company
Transitioned successfully to an LED-based company Transition from conventional to LED-based sales (in % of total sales) Conventional LED Eh) §=Connected LED 2012 2022 12
Slide 13: First quarter 2023
First quarter 2023 * Sales of EUR 1.7 billion * Comparable sales of -9.1% * Operational profitability was 8.9% * Connected light points rose to 117 million « LED-based sales represented 82% of total sales @®ignify
Slide 14: Outlook 2023
14 Outlook 2023 Signify guidance for 2023 is: « Adjusted EBITA margin in the range of 10.5-11.5% e Free cash flow between 6-8% of sales TE a
Slide 15: Connected Lighting Systems & Growth platforms
15 Gonnected Lighting Systems & Growth platforms ®ignify
Slide 16: Health & well-being and Safety & security
16 Connected Lighting Systems & Growth platforms Health & well-being and Safety & security 86 of our offices have installed Signify’s Interact loT platform, NatureConnect, UV-C disinfection lighting, and Trulifi lighting ®ignify
Slide 17: Climate Action and Circular Economy
17 Connected Lighting Systems & Growth platforms Climate Action and Circular Economy Elevating the training experience at Everlast gyms, UK ®ignify
Slide 18: Climate action and Safety & security
18 Connected Lighting Systems & Growth platforms Climate action and Safety & security Energy efficient LED battens and solar-powered street lighting for a vocational training center in Tanzania 13 cro ®&} ®ignify
Slide 19: Philips GreenPower LED toplighting
19 Connected Lighting Systems & Growth platforms 30% with Philips GreenPower LED toplighting ®ignify
Slide 20: Health & well-being
20 Connected Lighting Systems & Growth platforms Health & well-being UV-C disinfection devices for schools and public spaces in Bad Durkheim, Germany | a “a \ or Nass (GOOD HEALTH AND WELL-BEING ®ignify
Slide 21: Corporate Social Responsibility through the Foundation
Corporate Social Responsibility through the Foundation Lighting lives 8.3 million lives lit; on track to light 10 million lives by end-2025 Supporting entrepreneurs Over 12,000 local lighting entrepreneurs supported Humanitarian relief EUR 800,000 committed for immediate relief and medium-term suppo
Slide 22: ®ignify
®ignify
Slide 23: 2. Remuneration report 2022
2. Remuneration report 2022 ®ignify
Slide 24: Remuneration Board of Management 2022
Remuneration Board of Management 2022 Board of Base Salary Annual (Cash) Incentive Long-term Equity-based Management Jan 1, 2022 (% of Base Salary) Incentive at target (+3%) (% of Base Salary) Min. Target Max. E.H.E. Rondolat € 947,330 0 80 160 100 F.J. van Engelen € 619,855 0 60 120 80 M.L. Mariani
Slide 25: The Annual Incentive 2021 consists of two major components
The Annual Incentive 2021 consists of two major components: • • • 25
Slide 26: Long-term Incentive 2022
Long-term Incentive 2022 Long-term Incentive 2022 performance measures: Se cent PACE to wo, pisitalization ite otto! ttt, i, Circular é s ony economy if \ “ {) Climate action Better World centricity = Relative TSR = = Free Cash Flow = Sustainability m= ROCE 26 @®ignify
Slide 27: Annual Incentive Realization 2022
Annual Incentive Realization 2022 Performance measures Weighting Thesis Realized Realized % ae (Comparable sales growth 30% 3.0% 1.2% -% -% Adjusted EBITA 30% 11.6% 10.1% -% -% Free Cash Flow 20% 8.0% 5.9% -% -% Team and individual performance 20% _ 60% 12.0% measures Multiple achieved 12.0% Realize
Slide 28: 2020 Long-Term Incentive Grant Performance
202@ Long-Term Incentive Grant Performance Achievement and Vesting Levels Achievement Weighting Vesting level TSR 0% 25% 0% Free Cash Flow 110% 25% 27.5% Return on Capital 200% 25% 50% Employed Sustainability 150% 25% 37.5% Total 115.0% 28 @®ignify
Slide 29: Remuneration Supervisory Board 2022
Remuneration Supervisory Board 2022 Supervisory Board Membership Committees cote Total A.P.M. van der Poel € 110,000 € 25,000 € 5,000 € 140,000 G. van der Aast € 85,000 € 28,000 € 5,000 € 118,000 E. Blok? € 28,225 € 9,800 €- € 38,025 P. Knapp € 75,000 € 32,500 € 17,500 € 125,000 R.S. Lane € 75,000 €
Slide 30: Remuneration Board of Management - Outlook 2023
Remuneration Board of Management - Outlook 2023 ©ignity
Slide 31: Overview of Total Direct Compensation for the Board of Management
Overview of Total Direct Gompensation for the Board of Management Outlook 2023 total direct compensation for members of the Board of Management InEUR see Sey incentive" GOMER Tota rac (+496) (% of Base Salary) (x of Base Salary) COmPensation' E.H.E. Rondolat € 985,223 80% 100% € 2,758,624 F.J. van E
Slide 32: 3. Explanation of the policy on additions to reserves and dividends
3. Explanation of the policy on additions to reserves and dividends ®ignify
Slide 33: Proposed 2022 dividend of EUR 1.50 to be paid in cash in 2023
Signify, as part of its overall capital allocation policy, proposes a 2022 dividend of EUR I.5@ to be paid in cash in 2023 Capital allocation policy Dividend per share since IPO (in Eur) * Continue to maintain a robust capital « Proposed dividend of EUR 1.50 per share (EUR structure to support our c
Slide 34: Signify's net leverage reduced to 1.3x
Signify’s net leverage reduced to I.3x, and close to |.Ox excluding Fluence and Pierlite acquisitions Characteristics at the end of 2022 Net debt development in 2022 (in EUR million) Total net debt position of EUR 1,356 million and Net leverage! of 1.3x Total gross debt of EUR 2,033 million Long ter
Slide 35: 4. Financial statements 2022
4. Financial statements 2022 5. Dividend 6. Discharge members of the Board of Management and Supervisory Board ®ignify
Slide 36: Annual General meeting Signify N.V. - Audit annual report 2022
Annual General meeting Signify N.V. Audit annual report 2022 Ernst & Young Accountants LLP May 16, 2023
Slide 37: Audit approach & focus
Audit approach & focus Scope Strategy/Execution Conclusion Statutory and consolidated financial statements Responsibilities Audit procedures ► Key Audit Matters Non-financial information and ESG Teaming ► Estimates ► Core team and component teams Director’s report, including remuneration report ► Si
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Slide 39: 7. Composition of the Board of Management
7. Composition of the Board of Management ®ignify
Slide 40: 8. Composition of the Supervisory Board
8. Composition of the Supervisory Board ®ignify
Slide 41: 9. Re-appointment of the external auditor of the company
4. Re-appointment of the external auditor of the company ®ignify
Slide 42: 10. Authorizations of the Board of Management to issue shares
IQ. Authorizations of the Board of Management to (a) issue shares or grant rights to acquire shares, and (b) restrict or exclude pre-emptive rights ®ignify
Slide 43: 11. Authorization of the Board of Management to acquire shares
Il. Authorization of the Board of Management to acquire shares in the company ®ignify
Slide 44: 12. Cancellation of shares
44 l2. Cancellation of shares ®ignify
Slide 45: 13. Any other business
45 13. Any other business ®ignify
Slide 46: Signify
Sianty