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ISS - Signify reports first quarter sales of EUR 1.4 billion, operational profitability of 8.0% and a free cash flow of EUR 40 million

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# Press Release

April 25, 2025

### **Signify reports first quarter sales of EUR 1.4 billion, operational profitability of 8.0% and a free cash flow of EUR 40 million**

### **First quarter 2025<sup>1</sup>**

- Signify's installed base of connected light points increased to 153 million in Q1 25
- Signify is the only lighting company to feature on the 2025 Corporate Knights Global 100 Most Sustainable Corporations, ranking 15th overall
- Sales of EUR 1,448 million; nominal sales decline of -1.3% and CSG of -2.8%
- Adj. EBITA margin of 8.0% (Q1 24: 8.3%)
- Net income of EUR 67 million (Q1 24: EUR 44 million)
- Free cash flow of EUR 40 million (Q1 24: EUR 80 million)
- Signify completed 2025 share repurchases to cover share-based remuneration; continues with the share repurchases for capital reduction

**Eindhoven, the Netherlands** – Signify (Euronext: LIGHT), the world leader in lighting, today announced the company's first quarter 2025 results.

"Our performance in the first quarter landed in line with expectations, showing sequential improvements across most of our businesses, with a strong contribution from our connected offerings. The Consumer business grew in all regions, improving both top and bottom-line performance. The Professional business maintained a resilient profit margin as improvements in other markets compensated for continued headwinds in Europe. In China, we saw a faster-than-expected return to growth in both professional and consumer segments. 

We are now focused on executing our plan to mitigate the short-term impact of tariffs in Q2, while implementing more structural measures to address the second half of the year. Based on our visibility of the market and the measures we are taking across the business, we confirm our guidance for the year. 

Our connected and specialty lighting offerings now represent more than a third of our business. We are pleased to see these continue to perform and gain market share, despite the current market volatility. Our strategy to further strengthen these businesses will ensure we are well positioned to capture share as the market develops." said Eric Rondolat, CEO of Signify. 

1 This press release contains certain non-IFRS financial measures and ratios, which are not recognized measures of financial performance or liquidity under IFRS. For further details, refer to "Non-IFRS Financial Measures" in "Important information" of this press release.

## Brighter Lives, Better World 2025

The first quarter 2025 marked the start of Signify's fifth and the final year of its Brighter Lives, Better World 2025 sustainability program commitments that contribute to doubling its positive impact on the environment and society.

### **Double the pace of the Paris Agreement**

Signify is tracking ahead of its 2025 target to reduce emissions across the entire value chain by 40% against the 2019 baseline - double the pace required to achieve the Paris Agreement's climate ambitions. 

### **Double Circular revenues**

Circular revenues increased to 36%, up 1% versus the previous quarter and surpassing the 2025 target of 32%. The main contribution was from serviceable luminaires in the professional business, with a strong performance from horticulture lighting. 

### **Double Brighter lives revenues**

Brighter lives revenues remained at 33%, ahead of the 2025 target of 32%. This includes a strong contribution from both consumer and professional products with EyeComfort that support health and well-being. 

### **Double the percentage of women in leadership**

The percentage of women in leadership positions decreased by 1% to 27%, which is not in line with our 2025 ambitions. Signify continues its actions to increase representation through focused hiring practices for diversity across all levels, and through retention and engagement actions to reduce attrition. 

In the first quarter, Signify received several external recognitions for its leadership in Sustainability. Signify has been named in the Global 100 most sustainable corporations by Corporate Knight and is recognized in the Clean200, a list of companies putting sustainable investments at the heart of their strategy. 

## Outlook

Signify is focused on executing its plan to mitigate the short-term impact of tariffs in Q2, while implementing structural measures to address the second half of the year. Based on the current visibility of the market and the measures being taken across the business, Signify confirms the guidance for the year.

Signify continues to expect sales momentum to build throughout the year, leading to low single digit comparable sales growth excluding Conventional. Signify also expects a stable Adjusted EBITA margin vs. 2024 with the Professional, Consumer and OEM combined compensating the drag of the Conventional business. Signify targets a free cash flow generation of 7-8% of sales.

## Financial review

|                                        | First	quarter |        |        |
|----------------------------------------|---------------|--------|--------|
| in	millions	of	EUR,	except	percentages | 2024          | 2025   | change |
| Comparable	sales	growth                |               |        | -2.8%  |
| Currency	effects                       |               |        | 1.4%   |
| Consolidation	effects                  |               |        | —%     |
| Sales                                  | 1,468         | 1,448  | -1.3%  |
| Adjusted	gross	margin                  | 605           | 591    | -2.3%  |
| Adj.	gross	margin	(as	%	of	sales)      | 41.2	%        | 40.8	% |        |
| Adj.	SG&A	expenses                     | -431          | -427   |        |
| Adj.	R&D	expenses                      | -70           | -64    |        |
| Adj.	indirect	costs                    | -501          | -491   | -2.0	% |
| Adj.	indirect	costs	(as	%	of	sales)    | 34.1	%        | 33.9	% |        |
| Adjusted	EBITA                         | 122           | 116    | -4.9%  |
| Adjusted	EBITA	margin                  | 8.3%          | 8.0%   |        |
| Adjusted	items                         | -40           | -16    |        |
| EBITA                                  | 82            | 100    | 22.9%  |
| Income	from	operations	(EBIT)          | 64            | 85     | 31.9%  |
| Net	financial	income/expense           | -16           | -13    |        |
| Income	tax	expense                     | -4            | -4     |        |
| Net	income                             | 44            | 67     | 53.5%  |
| Free	cash	flow                         | 80            | 40     |        |
| Basic	EPS	(€)                          | 0.35          | 0.53   |        |
| Employees	(FTE)                        | 31,339        | 29,697 |        |

### **First quarter**

Nominal sales decreased by 1.3% to EUR 1,448 million, including a positive currency effect of 1.4%. Comparable sales declined by 2.8%, including a drag effect of 190 bps related to the declining Conventional business. Growth in the Consumer business and a faster than expected recovery in China were offset by weaker OEM sales and continued weakness in the Professional business in Europe.

The Adjusted gross margin decreased by 40 bps to 40.8%, but remained at a solid level, mainly driven by effective COGS management, which largely compensated price pressure in some of Signify's markets. Adjusted indirect costs as a percentage of sales slightly decreased to 33.9%, as benefits from the cost reduction program were offset by lower volumes and adverse segment mix.

Adjusted EBITA decreased to EUR 116 million. The Adjusted EBITA margin decreased by 30 bps to 8.0%, mainly due to the under-absorption of fixed costs as well as the weakness of the high-margin Professional business in Europe causing an adverse segment mix effect.

Restructuring costs were EUR 11 million, acquisition-related charges were EUR 2 million and incidental charges were EUR 3 million.

Net income increased to EUR 67 million, driven by lower restructuring costs and financial expenses. 

The number of employees (FTE) decreased from 31,339 at the end of Q1 24 to 29,697 at the end of Q1 25. The year-on-year decrease is mostly related to the 2023 restructuring program and a reduction of factory personnel due to lower production volumes. In general, the number of FTEs is affected by fluctuations in volume and seasonality.

![](_page_3_Picture_0.jpeg)

## Professional

| in	millions	of	EUR,	unless	otherwise	indicated | First	quarter |        |        |
|------------------------------------------------|---------------|--------|--------|
|                                                | 2024          | 2025   | change |
| Comparable	sales	growth                        | -7.6	%        | -1.8	% |        |
| Sales                                          | 943           | 942    | -0.1%  |
| Adjusted	EBITA                                 | 70            | 67     | -3.6	% |
| Adjusted	EBITA	margin                          | 7.4	%         | 7.1	%  |        |

### **First quarter**

Nominal sales decreased by 0.1% to EUR 942 million, including a positive currency effect of 1.7%. Comparable sales declined by 1.8% as the continued softness in Europe, particularly in trade channel and the public segment, was partly compensated by growth in agriculture lighting. Most other markets continued to show sequential improvements. 

The Adjusted EBITA margin decreased by 30 bps to 7.1%, as the weakness of the high margin Europe business continues to cause an adverse segment mix impact for the business, thereby offsetting the positive effect of indirect cost savings. 

## Consumer

| in	millions	of	EUR,	unless	otherwise	indicated | First	quarter |        |        |
|------------------------------------------------|---------------|--------|--------|
|                                                | 2024          | 2025   | change |
| Comparable	sales	growth                        | -5.7	%        | 3.1	%  |        |
| Sales                                          | 299           | 311    | 4.2	%  |
| Adjusted	EBITA                                 | 31            | 34     | 8.1	%  |
| Adjusted	EBITA	margin                          | 10.4	%        | 10.8	% |        |

### **First quarter**

Nominal sales increased by 4.2% to EUR 311 million, including a positive currency effect of 1.1%. All regions contributed to the comparable sales growth of 3.1%. During the quarter, Signify continued to see strong demand for its connected home offerings. The Adjusted EBITA margin improved by 40 bps to 10.8% driven by topline growth. 

## OEM

| in	millions	of	EUR,	unless	otherwise	indicated | First	quarter |         |         |
|------------------------------------------------|---------------|---------|---------|
|                                                | 2024          | 2025    | change  |
| Comparable	sales	growth                        | -7.4	%        | -10.7	% |         |
| Sales                                          | 103           | 92      | -10.2	% |
| Adjusted	EBITA                                 | 9             | 4       | -56.9	% |
| Adjusted	EBITA	margin                          | 8.8	%         | 4.2	%   |         |

### **First quarter**

Nominal sales decreased by 10.2% to EUR 92 million. The comparable sales decline of 10.7%, is partly attributable to two large customers. In addition, the business experienced intensified price competition in the component business. The Adjusted EBITA margin decreased to 4.2%, as the gross margin was impacted by negative pricing, and an under-absorption of fixed costs. 

![](_page_4_Picture_0.jpeg)

## Conventional

| in	millions	of	EUR,	unless	otherwise	indicated | First	quarter |         |         |
|------------------------------------------------|---------------|---------|---------|
|                                                | 2024          | 2025    | change  |
| Comparable	sales	growth                        | -34.1	%       | -23.9	% |         |
| Sales                                          | 119           | 92      | -22.8	% |
| Adjusted	EBITA                                 | 21            | 17      | -19.2	% |
| Adjusted	EBITA	margin                          | 17.6	%        | 18.4	%  |         |

### **First quarter**

Nominal sales decreased by 22.8% to EUR 92 million, including a positive currency effect of 1.1%. Comparable sales declined by 23.9% reflecting the structural decline of the business. The Adjusted EBITA margin improved by 80 bps to 18.4%, mainly driven by gross margin expansion. 

## Other

### **First quarter**

'Other' represents amounts not allocated to the businesses and mainly includes costs related to ventures, exploratory research and audits. Adjusted EBITA was EUR -6 million (Q1 2024: EUR -9 million).

## Working capital

| in	millions	of	EUR,	unless	otherwise	indicated | Mar	31,	2024 | Dec	31,	2024 | Mar	31,	2025 |
|------------------------------------------------|--------------|--------------|--------------|
| Inventories                                    | 1,064        | 1,035        | 1,023        |
| Trade	and	other	receivables1                   | 937          | 1,018        | 914          |
| Trade	and	other	payables                       | -1,486       | -1,588       | -1,448       |
| Other	working	capital	items                    | -42          | -43          | -47          |
| Working	capital                                | 473          | 422          | 442          |
| As	%	of	LTM	sales2                             | 7.3	%        | 6.9	%        | 7.2	%        |

1 As at March 31, 2024, December 31, 2024 and March 31 2025, Trade and other receivables exclude USD 48 million, USD 50 million and USD 51 million, respectively, of insurance receivables for which a legal provision is recognized for the same amount.

 2 LTM: Last Twelve Months

### **First quarter**

Working capital increased from EUR 422 million at the end of December 2024 to EUR 442 million at the end of March 2025. The increase is driven by a reduction in payables, partly offset by lower receivables. As a percentage of last twelve-month sales, working capital increased by 30 bps to 7.2%.

Compared with March 2024, working capital decreased by EUR 31 million. This decrease is explained by lower inventories and lower receivables, partly offset by lower payables. As a percentage of last twelve-month sales, working capital decreased by 10 bps. 

## Cash flow analysis

|                                                  | First	quarter |      |
|--------------------------------------------------|---------------|------|
| in	millions	of	EUR                               | 2024          | 2025 |
| Income	from	operations	(EBIT)                    | 64            | 85   |
| Depreciation	and	amortization                    | 68            | 61   |
| Additions	to	(releases	of)	provisions            | 39            | 31   |
| Utilizations	of	provisions                       | -66           | -42  |
| Changes	in	working	capital                       | 1             | -65  |
| Net	interest	and	financing	costs	received	(paid) | -3            | 1    |
| Income	taxes	paid                                | -18           | -20  |
| Net	capex                                        | -22           | -25  |
| Other                                            | 17            | 13   |
| Free	cash	flow                                   | 80            | 40   |

### **First quarter**

Free cash flow decreased to EUR 40 million, primarily due to higher cash outflow from working capital, partly offset by a lower payout related to restructuring. Free cash flow included a restructuring payout of EUR 13 million (Q1 24: EUR 34 million).

## Net debt and total equity

| in	millions	of	EUR        | Mar	31,	2024 | Dec	31,	2024 | Mar	31,	2025 |
|---------------------------|--------------|--------------|--------------|
| Short-term	debt           | 1,247        | 416          | 420          |
| Long-term	debt            | 1,158        | 1,137        | 1,134        |
| Gross	debt                | 2,406        | 1,553        | 1,554        |
| Cash	and	cash	equivalents | 1,403        | 633          | 644          |
| Net	debt                  | 1,003        | 920          | 910          |
| Total	equity              | 3,090        | 3,267        | 3,172        |

### **First quarter**

Compared with the end of December 2024, the cash position increased by EUR 11 million to EUR 644 million, while gross debt remained broadly stable at EUR 1,554 million. Net debt decreased by EUR 10 million to EUR 910 million. Total equity decreased to EUR 3,172 million (Q4 24: EUR 3,267 million), primarily due to currency translation results offset partly by net income.

Compared with the end of March 2024, the cash position decreased by EUR 759 million, primarily due to the repayment of net debt and dividend payment, partly offset by free cash flow generation. Gross debt decreased by 852 million over the same period. As a result, the net debt decreased by EUR 93 million year on year. At the end of March 2025, the net debt/EBITDA ratio was 1.2x (Q1 24: 1.6x).

![](_page_6_Picture_0.jpeg)

## Other information

Appendix A – Selection of financial statements Appendix B – Reconciliation of non-IFRS financial measures Appendix C – Financial glossary

### **Conference call and audio webcast**

Eric Rondolat (CEO) and Željko Kosanović (CFO) will host a conference call for analysts and institutional investors at 9:00 a.m. CET to discuss the first quarter 2025 results. A live audio webcast of the conference call will be available via the [Investor Relations website](https://www.signify.com/global/our-company/investors).

### **Financial calendar 2025**

| April	25,	2025   | Annual	General	Meeting                    |
|------------------|-------------------------------------------|
| April	29,	2025   | Ex-dividend	date                          |
| April	30,	2025   | Dividend	record	date                      |
| May	7,	2025      | Dividend	payment	date                     |
| July	25,	2025    | Second	quarter	and	half-year	results	2025 |
| October	24,	2025 | Third	quarter	results	2025                |

**For further information, please contact: Signify Investor Relations** Thelke Gerdes Tel: +31 6 1801 7131 E-mail: [thelke.gerdes@signify.com](mailto:thelke.gerdes@signify.com)

**Signify Corporate Communications** Tom Lodge Tel: +31 6 5252 5416 E-mail: [tom.lodge@signify.com](mailto:tom.lodge@signify.com)

### **About Signify**

[Signify](https://www.signify.com/) (Euronext: LIGHT) is the world leader in lighting for professionals, consumers and the Internet of Things. We unlock the extraordinary potential of light for brighter lives and a better world. Our advanced products, systems and data-enabled services deliver business value and transform life in homes, buildings and public spaces. In 2024, we had sales of EUR 6.1 billion, approximately 29,000 employees and a presence in over 70 countries. We feature in the [Dow Jones Sustainability World Inde](https://www.spglobal.com/spdji/en/indices/esg/dow-jones-sustainability-world-index/#overview)x and hold the [EcoVadis](https://ecovadis.com/)  Platinum rating, placing in the [top one percent](https://www.signify.com/global/our-company/news/press-releases/2023/20231129-signify-achieves-ecovadis-platinum-rating-for-the-fourth-consecutive-year) of companies assessed. News from Signify can be found in the [Newsroom,](https://www.signify.com/news) on [LinkedIn](https://www.linkedin.com/company/signifycompany/mycompany/), [Instagram](https://www.instagram.com/signifycompany/) and [X](https://twitter.com/SignifyCompany/) . Information for investors is located on the [Investor Relations](https://www.signify.com/investors) page.

Signify global brands include: [Philips,](https://www.lighting.philips.com/) [Philips Hue](https://www.philips-hue.com/nl-nl), [WiZ](https://www.wizconnected.com/nl-nl), [Interact](https://www.interact-lighting.com/nl-nl), [ColorKinetics](https://www.colorkinetics.com/global), [Dynalite](https://dynalite.com/), [Telensa](https://www.telensa.com/), [Signify](https://www.pro.mycreation.signify.com/en-eur)  [myCreation](https://www.pro.mycreation.signify.com/en-eur), [Signify BrightSites,](https://www.signify.com/global/innovation/brightsites) [NatureConnect](https://www.signify.com/global/innovation/natureconnect), [Trulifi.](https://www.signify.com/global/innovation/trulifi)

## Important information

### **Forward-Looking Statements and Risks & Uncertainties**

This document and the related oral presentation contain, and responses to questions following the presentation may contain, forward-looking statements that reflect the intentions, beliefs or current expectations and projections of Signify N.V. (the "Company", and together with its subsidiaries, the "Group"), including statements regarding strategy, estimates of sales growth and future operational results.

By their nature, these statements involve risks and uncertainties facing the Company and its Group companies, and a number of important factors could cause actual results or outcomes to differ materially from those expressed in any forward-looking statement as a result of risks and uncertainties. Such risks, uncertainties and other important factors include but are not limited to: adverse economic and geopolitical developments including the potential impact of trade tariffs, the impact of the increasing conflicts globally volatility in interest rates, inflation and currency fluctuations, changes in international tax laws, economic downturns in key geographies to the company, supply chain disruptions, new technological disruptions, cybersecurity risk, competition in the general lighting market, reputational and adverse effects on business due to activities in Environment, Health & Safety, compliance risks, ability to attract and retain talented personnel, pension liabilities.

Additional risks currently not known to the Group or that the Group has not considered material as of the date of this document could also prove to be important and may have a material adverse effect on the business, results of operations, financial condition and prospects of the Group or could cause the forward-looking events discussed in this document not to occur. The Group undertakes no duty to and will not necessarily update any of the forward-looking statements in light of new information or future events, except to the extent required by applicable law.

### **Market and Industry Information**

All references to market share, market data, industry statistics and industry forecasts in this document consist of estimates compiled by industry professionals, competitors, organizations or analysts, of publicly available information or of the Group's own assessment of its sales and markets. Rankings are based on sales unless otherwise stated.

### **Non-IFRS Financial Measures**

Certain parts of this document contain non-IFRS financial measures and ratios, such as comparable sales growth, adjusted gross margin and indirect costs, EBITA, adjusted EBITA, free cash flow, Net debt, Working capital, Brighter lives revenues, Circular revenues and other related ratios, which are not recognized measures of financial performance or liquidity under IFRS. The non-IFRS financial measures presented are measures used by management to monitor the underlying performance of the Group's business and operations. Not all companies calculate non-IFRS financial measures in the same manner or on a consistent basis and these measures and ratios may not be comparable to measures used by other companies under the same or similar names. A reconciliation of a number of non-IFRS financial measures to the most directly comparable IFRS financial measures is contained in appendix B, Reconciliation of non-IFRS financial measures, of this document. For further information on non-IFRS financial measures, see "Chapter 18 Reconciliation of non-IFRS measures" in the Annual Report 2024.

### **Presentation**

All amounts are in millions of euros unless otherwise stated. Due to rounding, amounts may not add up to totals provided. All reported information is unaudited. Unless otherwise indicated, financial information has been prepared in accordance with the accounting policies as stated in the Annual Report 2024.

### **Market Abuse Regulation**

This press release contains information within the meaning of Article 7(1) of the EU Market Abuse Regulation.

## Appendix A – Financial statement information

## A. Condensed consolidated statement of income

*In millions of EUR unless otherwise stated*

|                                                                | First	quarter |       |
|----------------------------------------------------------------|---------------|-------|
|                                                                | 2024          | 2025  |
| Sales                                                          | 1,468         | 1,448 |
| Cost	of	sales                                                  | (886)         | (862) |
| Gross	margin                                                   | 582           | 586   |
| Selling,	general	and	administrative	expenses                   | (447)         | (435) |
| Research	and	development	expenses                              | (71)          | (66)  |
| Other	business	income                                          | —             | 1     |
| Other	business	expenses                                        | —             | (1)   |
| Income	from	operations                                         | 64            | 85    |
| Financial	income                                               | 15            | 8     |
| Financial	expenses                                             | (31)          | (22)  |
| Results	relating	to	investments	in	associates                  | —             | —     |
| Income	before	taxes                                            | 48            | 71    |
| Income	tax	expense                                             | (4)           | (4)   |
| Net	income                                                     | 44            | 67    |
| Attribution	of	net	income	for	the	period:                      |               |       |
| Net	income	(loss)	attributable	to	shareholders	of	Signify	N.V. | 44            | 67    |
| Net	income	(loss)	attributable	to	non-controlling	interests    | (1)           | —     |

## B. Condensed consolidated statement of comprehensive income

|                                                                  | First	quarter |       |
|------------------------------------------------------------------|---------------|-------|
|                                                                  | 2024          | 2025  |
| Net	income	(loss)                                                | 44            | 67    |
| Pensions	and	other	post-employment	plans:                        |               |       |
| Remeasurements                                                   | 4             | —     |
| Income	tax	effect	on	remeasurements                              | (1)           | —     |
| Total	of	items	that	will	not	be	reclassified	to	profit	or	loss   | 3             | —     |
| Currency	translation	differences:                                |               |       |
| Net	current	period	change,	before	tax                            | 83            | (136) |
| Income	tax	effect                                                | —             | —     |
| Net	investment	hedge                                             |               |       |
| Net	current	period	change,	before	tax                            | —             | —     |
| Income	tax	effect                                                | —             | —     |
| Cash	flow	hedges:                                                |               |       |
| Net	current	period	change,	before	tax                            | 2             | (7)   |
| Income	tax	effect                                                | (1)           | 2     |
| Total	of	items	that	are	or	may	be	reclassified	to	profit	or	loss | 85            | (141) |
|                                                                  |               |       |
| Other	comprehensive	income	(loss)                                | 88            | (141) |
| Total	comprehensive	income	(loss)                                | 131           | (74)  |
|                                                                  |               |       |
| Total	comprehensive	income	(loss)	attributable	to:               |               |       |
| Shareholders	of	Signify	N.V.                                     | 130           | (71)  |
| Non-controlling	interests                                        | 1             | (3)   |

## C. Condensed consolidated statement of financial position

*In millions of EUR*

|                                                     | December	31,	2024 | March	31,	2025 |
|-----------------------------------------------------|-------------------|----------------|
| Non-current	assets                                  |                   |                |
| Property,	plant	and	equipment                       | 568               | 541            |
| Goodwill                                            | 2,903             | 2,810          |
| Intangible	assets,	other	than	goodwill              | 608               | 580            |
| Investments	in	associates                           | 7                 | 6              |
| Financial	assets                                    | 38                | 33             |
| Deferred	tax	assets                                 | 391               | 380            |
| Other	assets                                        | 26                | 26             |
| Total	non-current	assets                            | 4,541             | 4,377          |
|                                                     |                   |                |
| Current	assets                                      |                   |                |
| Inventories                                         | 1,035             | 1,023          |
| Financial	assets                                    | —                 | 3              |
| Other	assets                                        | 147               | 151            |
| Derivative	financial	assets                         | 17                | 6              |
| Income	tax	receivable                               | 52                | 61             |
| Trade	and	other	receivables                         | 1,066             | 961            |
| Cash	and	cash	equivalents                           | 633               | 644            |
| Assets	classified	as	held	for	sale                  | 13                | 21             |
| Total	current	assets                                | 2,964             | 2,869          |
| Total	assets                                        | 7,505             | 7,246          |
|                                                     |                   |                |
| Equity                                              |                   |                |
| Shareholders'	equity                                | 3,162             | 3,072          |
| Non-controlling	interests                           | 105               | 100            |
| Total	equity                                        | 3,267             | 3,172          |
|                                                     |                   |                |
| Non-current	liabilities                             |                   |                |
| Debt                                                | 1,137             | 1,134          |
| Post-employment	benefits                            | 255               | 243            |
| Provisions                                          | 192               | 174            |
| Deferred	tax	liabilities                            | 17                | 17             |
| Income	tax	payable                                  | 68                | 56             |
| Other	liabilities                                   | 145               | 161            |
| Total	non-current	liabilities                       | 1,815             | 1,786          |
|                                                     |                   |                |
| Current	liabilities                                 |                   |                |
| Debt,	including	bank	overdrafts                     | 416               | 420            |
| Derivative	financial	liabilities                    | 11                | 14             |
| Income	tax	payable                                  | 19                | 17             |
| Trade	and	other	payables                            | 1,588             | 1,448          |
| Provisions                                          | 192               | 195            |
| Other	liabilities                                   | 196               | 190            |
| Liabilities	from	assets	classified	as	held	for	sale | —                 | 5              |
| Total	current	liabilities                           | 2,423             | 2,289          |
| Total	liabilities	and	total	equity                  | 7,505             | 7,246          |

## D. Condensed consolidated statement of cash flows

*In millions of EUR*

|                                                                                      | First	quarter |       |
|--------------------------------------------------------------------------------------|---------------|-------|
|                                                                                      | 2024          | 2025  |
| Cash	flows	from	operating	activities                                                 |               |       |
| Net	income	(loss)                                                                    | 44            | 67    |
| Adjustments	to	reconcile	net	income	(loss)	to	net	cash	provided	by	operating         |               |       |
| activities:                                                                          | 141           | 111   |
| •		Depreciation,	amortization	and	impairment	of	non-financial	assets                 | 68            | 61    |
| •		Result	on	sale	of	assets                                                          | —             | —     |
| •		Net	interest	expense	on	debt,	borrowings	and	other	liabilities                    | 7             | 9     |
| •		Income	tax	expense                                                                | 4             | 4     |
| •		Additions	to	(releases	of)	provisions                                             | 39            | 26    |
| •		Additions	to	(releases	of)	post-employment	benefits                               | —             | 5     |
| •		Other	items                                                                       | 23            | 6     |
| Changes	in	working	capital:                                                          | 1             | (65)  |
| •		Changes	in	trade	and	other	receivables                                            | 84            | 83    |
| •		Changes	in	inventories                                                            | (5)           | (19)  |
| •		Changes	in	trade	and	other	payables                                               | (70)          | (113) |
| •		Changes	in	other	current	assets	and	liabilities                                   | (9)           | (17)  |
| Changes	in	other	non-current	assets	and	liabilities                                  | 4             | 12    |
| Utilizations	of	provisions                                                           | (56)          | (34)  |
| Utilizations	of	post-employment	benefits                                             | (11)          | (7)   |
| Net	interest	and	financing	costs	received	(paid)                                     | (3)           | 1     |
| Income	taxes	paid                                                                    | (18)          | (20)  |
| Net	cash	provided	by	(used	for)	operating	activities                                 | 103           | 65    |
|                                                                                      |               |       |
| Cash	flows	from	investing	activities                                                 |               |       |
| Net	capital	expenditures:                                                            | (22)          | (25)  |
| •		Additions	of	intangible	assets                                                    | (12)          | (15)  |
| •		Capital	expenditures	on	property,	plant	and	equipment                             | (12)          | (12)  |
| •		Proceeds	from	disposal	of	property,	plant	and	equipment                           | 2             | 2     |
| Net	proceeds	from	(cash	used	for)	derivatives	and	other	financial	assets             | 5             | (1)   |
| Purchases	of	businesses,	net	of	cash	acquired                                        | —             | —     |
| Proceeds	from	disposition	of	businesses	and	investments	in	associates                | —             | 5     |
| Net	cash	provided	by	(used	for)	investing	activities                                 | (17)          | (21)  |
| Cash	flows	from	financing	activities                                                 |               |       |
| Dividend	paid                                                                        | —             | (1)   |
| Proceeds	from	issuance	of	debt                                                       | 179           | 12    |
| Repayment	of	debt                                                                    | (20)          | (21)  |
| Purchase	of	treasury	shares                                                          | —             | (23)  |
| Net	cash	provided	by	(used	for)	financing	activities                                 | 159           | (33)  |
| Net	cash	flows                                                                       | 244           | 11    |
| Effect	of	changes	in	exchange	rates	on	cash	and	cash	equivalents	and	bank	overdrafts | —             | —     |
| Cash	and	cash	equivalents	and	bank	overdrafts	at	the	beginning	of	the	period	1       | 1,158         | 633   |
| Cash	and	cash	equivalents	and	bank	overdrafts	at	the	end	of	the	period	2             | 1,402         | 644   |

*1 For Q1 2025 and Q1 2024, included bank overdrafts of EUR 1 million and EUR 0 million, respectively.*

*2 Included bank overdrafts of EUR 0 million and EUR 1 million as at March 31, 2025 and 2024, respectively.*

## Appendix B - Reconciliation of non-IFRS financial measures

**Sales growth composition per business in %**

|              | First	quarter                            |     |                          |                |  |  |
|--------------|------------------------------------------|-----|--------------------------|----------------|--|--|
|              | Comparable<br>Currency	effects<br>growth |     | Consolidation<br>effects | Nominal	growth |  |  |
| 2025	vs	2024 |                                          |     |                          |                |  |  |
| Professional | (1.8)                                    | 1.7 | —                        | (0.1)          |  |  |
| Consumer     | 3.1                                      | 1.1 | —                        | 4.2            |  |  |
| OEM          | (10.7)                                   | 0.5 | —                        | (10.2)         |  |  |
| Conventional | (23.9)                                   | 1.1 | —                        | (22.8)         |  |  |
| Signify      | (2.8)                                    | 1.4 | —                        | (1.3)          |  |  |

|              | First	quarter        |                  |                          |                |
|--------------|----------------------|------------------|--------------------------|----------------|
|              | Comparable<br>growth | Currency	effects | Consolidation<br>effects | Nominal	growth |
| 2024	vs	2023 |                      |                  |                          |                |
| Professional | (7.6)                | (2.5)            | 0.3                      | (9.8)          |
| Consumer     | (5.7)                | (3.1)            | —                        | (8.8)          |
| OEM          | (7.4)                | (3.0)            | —                        | (10.4)         |
| Conventional | (34.1)               | (1.6)            | —                        | (35.7)         |
| Signify      | (10.1)               | (2.6)            | 0.2                      | (12.5)         |

### **Adjusted EBITA to Income from operations (or EBIT) in millions of EUR**

|                                  | Signify | Professional | Consumer | OEM | Conventional | Other |
|----------------------------------|---------|--------------|----------|-----|--------------|-------|
| First	quarter	2025               |         |              |          |     |              |       |
| Adjusted	EBITA                   | 116     | 67           | 34       | 4   | 17           | (6)   |
| Restructuring                    | (11)    |              |          |     |              |       |
| Acquisition-related	charges      | (2)     |              |          |     |              |       |
| Incidental	items                 | (3)     |              |          |     |              |       |
| EBITA                            | 100     |              |          |     |              |       |
| Amortization	1                   | (15)    |              |          |     |              |       |
| Income	from	operations	(or	EBIT) | 85      |              |          |     |              |       |
| First	quarter	2024               |         |              |          |     |              |       |
| Adjusted	EBITA                   | 122     | 70           | 31       | 9   | 21           | (9)   |
| Restructuring                    | (22)    |              |          |     |              |       |
| Acquisition-related	charges      | (3)     |              |          |     |              |       |
| Incidental	items                 | (15)    |              |          |     |              |       |
| EBITA                            | 82      |              |          |     |              |       |
| Amortization	1                   | (17)    |              |          |     |              |       |
| Income	from	operations	(or	EBIT) | 64      |              |          |     |              |       |

*1 Amortization and impairments of acquisition related intangible assets and goodwill.* 

### **Income from operations to Adjusted EBITA in millions of EUR**

|                                     |          |                | Acquisition |            |          |
|-------------------------------------|----------|----------------|-------------|------------|----------|
|                                     |          |                | related     | Incidental |          |
|                                     | Reported | Restructuring2 | charges     | items1     | Adjusted |
| First	quarter	2025                  |          |                |             |            |          |
| Sales                               | 1,448    | —              | —           | —          | 1,448    |
| Cost	of	sales                       | (862)    | 4              | —           | —          | (857)    |
| Gross	margin                        | 586      | 4              | —           | —          | 591      |
| Selling,	general	and	administrative |          |                |             |            |          |
| expenses                            | (435)    | 4              | 1           | 3          | (427)    |
| Research	and	development	expenses   | (66)     | 2              | —           | —          | (64)     |
| Indirect	costs                      | (501)    | 7              | 1           | 3          | (491)    |
| Impairment	of	goodwill              | —        | —              | —           | —          | —        |
| Other	business	income               | 1        | —              | —           | —          | 1        |
| Other	business	expenses             | (1)      | —              | 1           | —          | —        |
| Income	from	operations              | 85       | 11             | 2           | 3          | 101      |
| Amortization                        | (15)     | —              | —           | —          | (15)     |
| Income	from	operations	excluding    |          |                |             |            |          |
| amortization	(EBITA)                | 100      | 11             | 2           | 3          | 116      |
| First	quarter	2024                  |          |                |             |            |          |
| Sales                               | 1,468    | —              | —           | —          | 1,468    |
| Cost	of	sales                       | (886)    | 12             | 1           | 11         | (863)    |
| Gross	margin                        | 582      | 12             | 1           | 11         | 605      |
| Selling,	general	and	administrative |          |                |             |            |          |
| expenses                            | (447)    | 9              | 2           | 4          | (431)    |
| Research	and	development	expenses   | (71)     | 1              | —           | —          | (70)     |
| Indirect	costs                      | (518)    | 11             | 2           | 4          | (501)    |
| Impairment	of	goodwill              | —        | —              | —           | —          | —        |
| Other	business	income               | —        | —              | —           | —          | —        |
| Other	business	expenses             | —        | —              | —           | —          | —        |
| Income	from	operations              | 64       | 22             | 3           | 15         | 105      |
| Amortization                        | (17)     | —              | —           | —          | (17)     |
| Income	from	operations	excluding    |          |                |             |            |          |
| amortization	(EBITA)                | 82       | 22             | 3           | 15         | 122      |

*<sup>1</sup> Q1 2025: Incidental items are mainly related to environmental provision for inactive sites and the discounting effect of long-term provisions (EUR 3 million mainly in Professional).*

 *Q1 2024: Incidental items are mainly related to a one-day FX loss from the devaluation of the Egyptian Pound by Egyptian government (EUR 10 million, mainly in Professional), environmental provision for inactive sites and the discounting effect of long-term provisions (EUR 4 million mainly in Other) and other items with an effect of EUR 1 million loss.* 

*<sup>2</sup> Q1 2025: Restructuring costs consisted of EUR 8 million of employee termination benefits (mainly in Professional) and EUR 3 million of other costs related to the restructuring programs.* 

*Q1 2024: Restructuring costs consisted of EUR 15 million of employee termination benefits (mainly in Professional) and EUR 7 million of other costs related to the restructuring programs.* 

*Amounts may not add up due to rounding.*

## Appendix C – Financial glossary

### **Acquisition-related charges**

Costs that are directly triggered by the acquisition of a company, such as transaction costs, purchase accounting related costs and integration-related expenses.

### **Adjusted EBITA**

EBITA excluding restructuring costs, acquisitionrelated charges, and other incidental items.

### **Adjusted EBITA margin**

Adjusted EBITA divided by sales to third parties (excluding intersegment). 'Operational profitability' also refers to this metric.

### **Adjusted gross margin**

Gross margin, excluding restructuring costs, acquisition-related charges, and other incidental items attributable to cost of sales.

### **Adjusted indirect costs**

Indirect costs, excluding restructuring costs, acquisition-related charges, and other incidental items attributable to indirect costs.

### **Adjusted R&D expenses**

Research and development expenses, excluding restructuring costs, acquisition-related charges, and other incidental items attributable to research and development expenses.

### **Adjusted SG&A expenses**

Selling, general and administrative expenses, excluding restructuring costs, acquisition-related charges, and other incidental items attributable to selling, general and administrative expenses.

### **Brighter lives revenues**

Percentage of total revenues coming from all products, systems and services contributing to Food availability, Safety & security, or Health & well-being.

### **Circular revenues**

Revenues measured as a percentage of total revenues coming from products, systems and services designed to preserve value and avoid waste categorized as Serviceable luminaires (incl. 3D printing), Circular components, Intelligent systems or Circular services.

### **Comparable sales growth (CSG)**

The period-on-period growth in sales excluding the effects of currency movements and changes in consolidation.

### **EBIT**

Income from operations.

### **EBITA**

Income from operations excluding amortization and impairment of acquisition-related intangible assets and goodwill.

### **EBITDA**

Income from operations excluding depreciation, amortization, and impairment of non-financial assets.

### **Consolidation effects**

In the event a business is acquired (or divested), the impact of the consolidation (or deconsolidation) on the Group's figures is included (or excluded) in the calculation of the comparable sales growth figures.

### **Currency effects**

Calculated by translating the foreign currency financials of the previous period and the current period into euros at the same average exchange rates.

### **Employees**

Employees of Signify at the end of the period, expressed on a full-time equivalent (FTE) basis.

### **Free cash flow**

Net cash provided by operating activities minus net capital expenditures. Free cash flow includes interest paid and income taxes paid**.**

### **Gross margin**

Sales minus cost of sales.

### **Incidental items**

Any item with an income statement impact (loss or gain) that is deemed to be both significant and not part of normal business activity. Other incidental items may extend over several quarters within the same financial year.

### **Indirect costs**

The sum of selling, general and administrative expenses and R&D expenses.

### **Net capital expenditures**

Additions of intangible assets, capital expenditures on property, plant and equipment and proceeds from disposal of property, plant and equipment.

### **Net debt**

Short-term debt, long-term debt minus cash and cash equivalents.

### **Net leverage ratio**

The ratio of consolidated reported net debt to consolidated reported EBITDA for the purpose of calculating the financial covenant.

### **R&D expenses**

Research and development expenses.

### **Restructuring costs**

The estimated costs of initiated reorganizations which have been approved by the company, and generally involve the realignment of certain parts of the organization. Restructuring costs include costs for employee termination benefits for affected employees and other costs directly attributable to the restructuring, such as impairment of assets and inventories.

### **SG&A expenses**

Selling, general and administrative expenses.

### **Working capital**

The sum of inventories, trade and other receivables (excluding insurance receivables for which a legal provision is recognized for the same amount), other current assets, derivative financial assets minus the sum of trade and other payables, derivative financial liabilities and other current liabilities (excluding dividend-related payables).