BUSINESS SEGMENTS

Personal Health – Domestic appliances, Health and wellness producs and personal care products

Health Systems – Medical electronic equipments

Innovation Services – Development of embedded software and Philips Design

Future ownership of Domestic Appliances business
On June 25 2020, the Board of Directors of the Company have agreed to a proposed plan to separate the Domestic
Appliances (DA) business and dispose off the investment in a subsidiary which is operating in the same segment in line with
the global restructuring exercise announced by Koninklijke Philips N.V (KPNV) Ultimate Holding Company. The Scheme of
Arrangement (hereinafter ‘Scheme’) for demerger of Domestic appliances Business (Demerged Undertaking) was approved
by Board of Directors of the Company on 11 September 2020 and by the shareholders on 19 February 2021.
On March 25, 2021, KPNV announced that it had reached an agreement to transfer its Domestic Appliances business to
Hillhouse Capital. The said business transfer is expected to be completed during the third quarter of 2021, subject to
customary closing conditions, including the relevant regulatory approvals. In order to support this business selling transaction
of KPNV, the Company in India will transfer the domestic appliance business to Philips Domestic Appliances India Limited.
This process is expected to be completed in the third quarter of 2021.Complete separation of the two entities is expected
to be completed during 2021.
In pursuance of the proposal stated above, a Composite Scheme of Arrangement for Demerger (“Scheme”) under Section
230 to 232 and other relevant provisions of the Companies Act, 1956 and Companies Act, 2013, between “Philips India
Limited” (Demerged Company) and “Philips Domestic Appliances India Limited” (Resulting Company) and Preethi Kitchen
Appliances Private Limited (Amalgamating Company) and their respective shareholders was approved by (a) The Hon’ble
National Company Law Tribunal, Mumbai Bench, Court – 5 vide order dated 13 May 2021 and (b) The Hon’ble National
Company Law Tribunal, Kolkata Bench, Kolkata vide order dated 14 June 2021. In accordance with the Scheme, the assets and
liabilities pertaining to Domestic Appliance business will stand transferred to and vested with Philips Domestic Appliances
India Limited with effect from the appointed date i.e. 01 July 2021 and shareholders of the Company will be allotted 1 fully
paid equity share of Philips Domestic Appliances India Limited for each fully paid equity share held by them in the Company
on or before the Effective date and the transfer of the Demerged Undertaking shall be on a going concern basis. The Scheme
shall be effective from the Appointed Date but shall be operative from the Effective Date.