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Koninklijke Philips' CEO Discusses Q1 2012 Results - Earnings Call Transcript

As usual, our press release and the accompanying information slide deck were published at 7 AM Central European Time this morning. Both documents are now available for download from our Investor Relations website. We will also make available a full transcript of this conference call on the Investor Relations website by tomorrow at the latest.

With that, let me hand over to Frans to start proceedings for the day.

Frans van Houten

Thanks, Abhijit. Welcome and thank you for joining us today for our first quarter 2012 earnings conference call.

The end of the first quarter marks the completion of my first year as CEO of Philips. And as I reflect on my tenure this far, I am pleased with the progress that we have made over the last year. It remains clear that Philips has a wealth of talent, great assets, a strong brand, a global footprint, we operate in the right markets and have the right portfolio to address key global trends, and a large majority of our businesses have the right fundamentals for profitable growth. Yet, our performance does not match our potential. In order to address this disparity, we designed and launched our change in improvement program Accelerate! which is aimed at reigniting organic growth in Philips, and making us an agile entrepreneurial innovator.

I’m happy to report that we are now seeing solid improvement across all sectors of our business and our growth figures for the first quarter confirm this trend, with Healthcare growing at 9%, Consumer Lifestyle growth businesses above 7%, and Lighting at 2%. Excluding external sales of Lumileds, which saw a double-digit decline in the quarter, due to inventory correction in the channel and an increasing mix of internal sales, our Lighting business actually grew by 4% in the quarter. LED product sales for the quarter grew by 22%, and if we were to exclude Lumileds even by 50%.

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