Philips to offer its Domestic Appliances business to worldwide financial commitment agency Hillhouse Money

Philips Airfryer XXL

Philips SpeedPro Max

March 25, 2021

• Transaction values Domestic Appliances at an company value of around EUR 3.7 billion

• Philips expects to get dollars proceeds right after tax and transaction-linked costs of approximately EUR 3 billion in the third quarter

• Additional 15-yr manufacturer license agreement with annual payments that symbolize an approximated net existing value of around EUR .7 billion, ensuing in a whole offer price of roughly EUR 4.4 billion

• Transaction is predicted to be accomplished in the third quarter of 2021 subject matter to customary closing problems

• Domestic Appliances will be introduced as a discontinued operation in Philips’ monetary statements as of the very first quarter of 2021

Amsterdam, the Netherlands – Royal Philips (NYSE: PHG AEX: PHIA), a world leader in health and fitness technology, these days declared that it has signed an agreement to offer its Domestic Appliances organization, a world wide leader with EUR 2.2 billion sales in 2020 in kitchen, coffee, garment care and home treatment appliances, to Hillhouse Cash, a global expense firm focused on assisting businesses realize lengthy-time period sustainable expansion via digital innovation and enablement. The transaction is anticipated to be done in the 3rd quarter of 2021, subject to customary closing conditions, which include the relevant regulatory approvals.

The transaction values the Domestic Appliances company at an company value of around EUR 3.7 billion. Upon completion of the transaction, Philips expects to acquire hard cash proceeds just after tax and transaction-associated costs of around EUR 3 billion. On top of that, Philips and Domestic Appliances will enter into an exclusive brand name license arrangement to use the Philips manufacturer and selected of Philips’ other domestic appliances models for production, profits, and internet marketing of Domestic Appliances goods globally for a time period of 15 many years, which is renewable issue to the terms of the brand license arrangement. The yearly payments over this period of time represent an approximated web present worth of approximately EUR .7 billion, resulting in a overall offer value of approximately EUR 4.4 billion. Following today’s agreement, the Domestic Appliances business will be introduced as a discontinued procedure in Philips’ fiscal statements as of the 1st quarter of 2021.

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“I am pleased that in Hillhouse Cash we have uncovered a new property for the Domestic Appliances enterprise to further grow on its market place leadership, robust brand name and pipeline of new improvements,” reported Frans van Houten, CEO of Royal Philips. “This transaction concludes our major divestments. Going forward, our concentration is on extending our management in overall health engineering and continuing our transformation into a alternatives business supporting professional health care buyers accomplish the Quadruple Purpose and consumers with their private wellbeing.”

Philips is a main supplier of integrated solutions to enhance people’s health and nicely-becoming and improve care service provider productiveness throughout the health and fitness continuum from balanced living and prevention, to analysis, remedy, and property care. Philips’ EUR 3.2 billion Personal Overall health businesses enjoy an significant function in the company’s built-in well being continuum approach via buyer-pushed item and alternatives innovation in areas this sort of as oral health care, individual treatment, and mother & kid treatment.

Hillhouse Money
Hillhouse Funds invests globally with the intention of performing with business people and management groups to construct high high quality organizations that accomplish sustainable prolonged-term progress. Hillhouse has deep expertise in integrating technological innovation and knowledge-pushed architectures to drive electronic innovation and business enterprise enlargement. The agency has labored properly with many world consumer and retail enterprises to deepen client engagement and introduce revolutionary immediate-to-customer versions, growing new client segments and marketplaces.

“We look ahead to joining forces with Philips to broaden into new markets and seize more expansion chances globally,” reported Lei Zhang, Founder and CEO of Hillhouse Cash. “We are aligned with Philips’ mission to deliver substantial good quality merchandise to support wholesome and fulfilling lifestyles for individuals across the world.”

Domestic Appliances
The Domestic Appliances organization, which will continue to be headquartered in the Netherlands, is active in additional than 100 nations, and has a world innovation, producing, and commercial footprint. Its prosperous items consist of the Airfryer, Absolutely Automatic Espresso Machine with LatteGo, Great Care Elite steam generator, Air Purifier and SpeedPro Max vacuum cleaner. The enterprise employs close to 7,000 workers globally.

“I am confident that jointly with Hillhouse Capital’s deep e-commerce, offer chain and digital abilities, we will be in a great situation to go on bringing meaningful innovations to the consumer’s residences,” explained Henk de Jong, CEO of Philips Domestic Appliances. “Based on our industry primary products portfolio, wide customer and consumer base and R&D capabilities, we are eager to retain supporting people and folks to guide more healthy and happier lives. We glimpse forward to performing with Hillhouse to capture more growth options.”

For further more details, you should get hold of:

Ben Zwirs
Philips Global Press Place of work
Tel.: +31 6 15213446
E-mail: [email protected]

Derya Guzel
Philips Investor Relations
Tel.: +31 20 59 77055
E-mail: [email protected]

About Royal Philips
Royal Philips (NYSE: PHG, AEX: PHIA) is a primary health and fitness technology business targeted on strengthening people’s well being and nicely-remaining, and enabling much better results throughout the overall health continuum – from nutritious residing and prevention, to diagnosis, treatment method and house treatment. Philips leverages sophisticated engineering and deep medical and client insights to deliver integrated methods. Headquartered in the Netherlands, the firm is a leader in diagnostic imaging, graphic-guided treatment, affected individual checking and health informatics, as nicely as in client well being and property treatment. Philips created 2020 profits of EUR 19.5 billion and employs around 82,000 employees with sales and products and services in extra than 100 countries. News about Philips can be found at www.philips.com/newscenter.

Forward-seeking statements
This launch is made up of particular forward-wanting statements with regard to the fiscal ailment, success of functions and enterprise of Philips and specified of the plans and targets of Philips with regard to these merchandise. Examples of ahead-seeking statements include things like statements created about the system, estimates of revenue growth, long run EBITA, upcoming developments in Philips’ organic and natural organization and the completion of acquisitions and divestments. By their mother nature, these statements contain hazard and uncertainty for the reason that they relate to foreseeable future occasions and instances and there are numerous components that could lead to real final results and developments to vary materially from people expressed or implied by these statements.

This push release contains inside of information and facts within the which means of Article 7(1) of the EU Sector Abuse Regulation

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