CORPORATES

CREDIT OPINION29 April 2019

Update

RATINGS

Royal Philips N.V.Domicile Amsterdam,

Netherlands

Long Term Rating Baa1

Type LT Issuer Rating

Outlook Stable

Please see the ratings section at the end of this reportfor more information. The ratings and outlook shownreflect information as of the publication date.

Contacts

Stephan Wulf +49.69.70730.856VP-Senior Analyststephan.wulf@moodys.com

Svitlana Ukrayinets +49.69.70730.920Associate Analystsvitlana.ukrayinets@moodys.com

Christian Hendker,CFA

+49.69.70730.735

Associate Managing Directorchristian.hendker@moodys.com

CLIENT SERVICES

Americas 1-212-553-1653

Asia Pacific 852-3551-3077

Japan 81-3-5408-4100

EMEA 44-20-7772-5454

Royal Philips N.V.Update to credit analysis

SummaryRoyal Philips N.V.'s (Philips) Baa1 rating is comfortably positioned, reflecting its improvedgross leverage. However, this is somewhat counterbalanced by its large shareholder payoutand acquisitive strategy.

Philips' Baa1 long-term and senior unsecured rating is supported by its (1) large scaleand market-leading positions in most of the health spaces in which it operates; (2) high-margin Personal Health business, which provides a degree of diversification and stability;(3) improved credit metrics after continuous deleveraging, with debt/EBITDA at 2.3x asof year-end 2018; (4) strong liquidity following the disposal of its majority stakes in non-core businesses Bright Bidco B.V. (formerly Lumileds, B1 stable) and Signify (formerly PhilipsLighting).

However, the rating also takes into account (1) the increasing competitive pressure in themedical devices industry, which leads to price declines, partially offset by the company'sprudent cost focus and working capital management; (2) its low profit margin relativeto industry peers and a history of operational and legal issues and (3) its appetite foracquisitions (bolt-ons and the €1.9 billion Spectranetics deal in 2017) and capital allocationfor dividends and share buybacks constraining credit metrics.

Exhibit 1

Adjusted gross leverage improved to 2.3x as of year-end 2018, positioning the companycomfortably in the Baa1 rating category

0.5x

1.0x

1.5x

2.0x

2.5x

3.0x

3.5x

4.0x

2013 2014 2015 2016* 2017 2018 2019p

Adjusted Debt / EBITDA What could change the rating - upWhat could change the rating - down

*2016 metrics have been restated with 2017 audited accounts; 2019p - Moody's expectation, which does not incorporatesignificant acquisitions and divestures.The metrics incorporate Moody's standard adjustments. The blue columns represent Royal Philips before the deconsolidation ofSignify. The green columns represent Royal Philips going forward.Source: Moody's Investors Service

MOODY'S INVESTORS SERVICE CORPORATES

Credit strengths

» Large scale and market-leading positions in most of the health spaces in which it operates

» The high-margin (16.8% company-adjusted EBITA margin in 2018) Personal Health business, which provides a degree ofdiversification and stability

» Improved credit metrics after continuous deleveraging, with adjusted debt/EBITDA at around 2.5x as of year-end 2017 versus 3.3x in2014

» Strong liquidity following the sale of non-core businesses; monetization options with regard to the remaining 16.5% (as of 31December 2018) in Signify and 19.9% in Lumileds

Credit challenges

» Increasing competitive pressure in the medical devices industry, leading to price declines, partially offset by prudent cost focus andworking capital management

» Low profit margins relative to industry peers and a history of operational and legal issues

» Appetite for acquisitions (bolt-ons and the €1.9 billion Spectranetics deal in 2017) and capital allocation for dividends and sharebuybacks, which constrain credit metrics

Rating outlookThe stable outlook assumes that despite potential bolt-ons, Philips remains committed to a financial discipline that secures adequateleverage, with Moody's-adjusted debt/EBITDA of 2.5x-3.0x. Furthermore, FCF generation should move toward the company's target ofabove €1.5 billion (company's definition) by 2020, which would lead to FCF/debt levels of about 15% (10.4% in 2018). Additionally, wewill monitor the use of proceeds from the disposal of Philips' stake in Signify (16.5% as of 31 December 2018) to assess if these will bespent on more shareholder-friendly actions or if spending will continue to match shareholder and creditor interests.

Factors that could lead to an upgrade

» Debt/EBITDA below 2.5x on a sustained basis

» FCF/debt approaching 20%

» Ongoing operating margin improvements

Factors that could lead to a downgrade

» Debt/EBITDA above 3.0x

» FCF/debt below 10% on a sustained basis

This publication does not announce a credit rating action. For any credit ratings referenced in this publication, please see the ratings tab on the issuer/entity page onwww.moodys.com for the most updated credit rating action information and rating history.

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Key indicators

Exhibit 2

Royal Philips N.V. [1]

12/31/2014 12/31/2015 12/31/2016 12/31/2017 12/31/2018

12-18 months forward

view [3]

Revenue (USD Billion) $28.4 $26.9 $19.3 $20.1 $21.4 $22 - $23

Return on Sales (NPATBUI / Sales) 3.1% 3.8% 5.7% 5.0% 7.3% 7% - 10%

Debt / EBITDA 3.3x 3.0x 3.4x 2.5x 2.3x 2.0x -2.5x

CFO / Debt 28.0% 23.6% 29.3% 36.7% 28.2% 30% - 40%

FCF / Debt 12.8% 9.6% 18.0% 19.6% 10.4% 10% - 15%

EBITA / Interest 4.3x 5.5x 5.6x 7.8x 9.5x 10x - 12x

[1] All ratios are based on 'Adjusted' financial data and incorporate Moody's Global Standard Adjustments for Non-Financial Corporations.[2] 2016 metrics have been restated with 2017 audited accounts; 2016, 2017 cash flow metrics include operating cash flow from discontinued operations.[3] This represents Moody's forward view, not the view of the issuer, and does not incorporate significant acquisitions and divestitures.Source: Moody's Financial Metrics™

ProfileRoyal Philips N.V. (Philips) is a global market leader in healthtech (such as diagnosis and treatment, patient care and monitoringsolutions), as well as personal health products such as personal care (for example, male grooming), domestic appliances (for example,kitchen appliances, coffee machines), and health and wellness products (for example, mother and child care, oral healthcare).Headquartered in the Netherlands, the group employs approximately 77,000 people (continuing operations) and its sales and servicesoperations cover more than 100 countries worldwide. The company recorded consolidated revenue of €18.1 billion in 2018.

Exhibit 3

A well-diversified portfolio of productsRevenue split by product category

Diagnostic Imaging19%

Image-Guided Therapy13%

Ultrasound8%

Healthcare Informatics3%

Monitoring & Analytics10%

Therapeutic Care3%

Sleep & Respiratory Care10%

Population Health Management1%

Health & Wellness8%

Personal Care10%

Domestic Appliances12%

Other3%

Following the realignment of reporting segments effective as of January 1, 2019. Diagnosis & Treatment = green; Connected Care = orange/red; Personal Health = Blue; Classificationreflects Moody's analysis.Sources: Royal Philips 2018 Annual Report, Moody's Investors Service

Detailed credit considerationsLarge scale and market-leading positions in most of the therapeutic areas in which it operatesPhilips' activities are well diversified across healthcare and consumer products (Personal Health). In addition, more than 60% of its saleshave leadership (number one and two positions) in their addressable markets: diagnostic imaging, image guided therapy (in systemsand smart devices), ultrasound, patient monitoring, non-evasive ventilation and automated external defibrillator (AED), cardiologyinformatics and radiology (US business).

These positions are underpinned by Philips' strong R&D spending of nearly €1.8 billion per year (10% of sales). In addition, the Philipsbrand is globally well recognized, which is reflected in the company's market-leading positions in the male grooming, oral healthcare,sleep and respiratory care, as well as mother and child care segments.

3 29 April 2019 Royal Philips N.V.: Update to credit analysis

MOODY'S INVESTORS SERVICE CORPORATES

Philips employs more than 10,000 people in R&D (almost one in seven) and its total intellectual property (IP) portfolio consisted of65,000 patent rights, 39,400 trademarks and 61,300 design rights at the end of 2018. In 2018, Philips generated about €272 million inIP EBITA, which we view as a strong and recurring cash flow source.

High-margin Personal Health business with good growth prospects, which provides a degree of diversification and stabilityWithin its Personal Health business, Philips is a global leader (number one or two market positions) in oral healthcare, and mother andchild care, grooming and beauty, healthy breathing and nutrition. These markets are growing above GDP rates, and Philips' PersonalHealth business managed to achieve more than 5% comparable sales growth in the last several years. Such high levels of growth areunderpinned by digitalization of products and the currently low, but increasing, penetration of these products, especially in emergingmarkets. Philips attributes the increased importance to the online channel where the share of sales has increased to more than 30% oftotal Personal Health sales. The company managed to improve its profitability substantially because of a growing top line and focus onthe cost base. The 2020 target of 4%-6% annual sales growth and adjusted EBITA margin (Philips' definition) of around 16%-18% (newtarget range, following the realignment of reporting segments, effective from 1 January 2019) can be achieved leveraging Philips' strongbrand and pricing power on the market. In Q1-2019 Personal Health business had a comparable sales growth of 5% YoY, reflectingdouble-digit growth in Oral Healthcare and low-single digit growth in Personal Care and Domestic Appliances.

Exhibit 4

Personal Health business has a significant exposure to high-growthmarkets

Exhibit 5

Personal Health exhibited above-market growth rates and stableimproving profitability

Western Europe25%

North America26%Other mature

9%

Growth40%

Source: Royal Philips 2018 Annual Report

12.7%

14.3%

15.6% 16.7% 16.8%

0.0%

2.5%

5.0%

7.5%

10.0%

12.5%

15.0%

17.5%

20.0%

-

1,000

2,000

3,000

4,000

5,000

6,000

7,000

8,000

2014 2015 2016 2017 2018

Adjusted EBITA Sales

Target margin range Adj. EBITA margin

Target margin range of 17%-19% for Personal Health announced during Capital MarketsDay 2018 was restated to 16%-18% in Q1 2019 following the realignment of reportingsegments, effective from 1 January 2019.Sources: Royal Philips accounts, Capital Markets Day 2018

Competitive pressure in the medical devices industry is highAlthough barriers to entry into more complex healthcare solutions are high, the degree of competition nevertheless is high, leading tothe need for constant product innovation. More innovative and competitive products exert pricing pressure on existing products andrequire R&D spent to innovate.

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Exhibit 6

Productivity initiatives to contribute to margin improvement until 2020Adjusted EBITA bridge for 2019-20, % of sales

Source: Company Q4 2018 results presentation

Philips' management targets a 100-basis-point (bp) improvement in adjusted EBITA margin (company definition) each year throughcumulative cost savings of more than €1.8 billion by 2020. Philips was able to improve its adjusted EBITA margin (company definition)by 100 bps to 13.1% in 2018. The main areas of focus are procurement savings and manufacturing productivity improvements, andstandardization of back offices with global business services and IT landscape simplification. In Q1-2019 adjusted EBITA margin(company definition) improved by 10bps. Diagnosis & Treatment business showed 120bps margin improvement YoY, while ConnectedCare margin has declined by 400bps mainly due to negative growth in Q1-19 (as strong orders from Q4-18 will take longer tomaterialize), adverse currency impacts and tariffs.

Low profit margins relative to industry peers and a history of operational and legal issuesPhilips' core medical device products are well positioned, with most of them being among the top two in their markets. However,profitability margins are below industry averages. Management is addressing the weak profitability, which partially results frommanufacturing issues in its Cleveland, Ohio, manufacturing facility, and high overhead and centralized costs. A sustained improvementin operating profitability levels is one of the drivers for positive rating pressure going forward.

Philips competes with a number of specialized medical device companies, for example, Medtronic (A3 stable) and Stryker Corporation(Baa1 stable), and the healthcare divisions of General Electric (Baa1 stable) and Siemens Aktiengesellschaft (A1 stable), and a numberof other specialized companies. Philips is now focused on securing a larger proportion of recurring solutions revenue. It has signed long-term contracts or partnership agreements (10-15 years) with hospitals and universities, for example, Royal Papworth, Karolinska andBanner Health. Recurring revenue accounted for 40% of sales in diagnosis and treatment in 2018.

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Exhibit 7

Profitability of Royal Philips HealthTech lags significantly behind that of select industry peersAdjusted EBITA margin for the last 12 months

0.0%

5.0%

10.0%

15.0%

20.0%

25.0%

30.0%

35.0%

Siemens Healthineers GE Healthcare MedtronicA3 STA

Royal PhilipsHealthTech

Stryker CorporationBaa1 STA

Baxter Int.Baa1 STA

Abbott LaboratoriesBaa1 POS

The green columns represent Moody's-adjusted EBITA margins, the blue columns represent company-adjusted EBITA margins for Siemens Healthineers — a division of Siemens AG, GEHealthcare — a division of General Electric, and Royal Philips HealthTech, which only includes adjusted margins of diagnosis and treatment, connected care and health informatics (basedreporting segments prior the realignment effective from January 1, 2019).Source: Moody's Investors Service

Philips has had a legacy of manufacturing problems in its healthcare division that have resulted in costly remediation, and have hurtits reputation and resulted in market share losses, predominantly in the US. The cumulative impact on EBITA over 2014-16 was over€0.5 billion. In October 2017, Philips reached an agreement with the authorities. The company expects the full discontinuation of itsCleveland manufacturing operations by mid-2019.

Improved credit metrics after continuous deleveragingSince a trough in 2014, Philips metrics' have been improving considerably. In 2017, the company completed the sale of its 80.1%interest in Lumileds for $1.3 billion, which was used for debt repayment. In addition, Philips reduced its stake in Signify to 16.5% (asof 31 December 2018) for total cumulative proceeds of around €3.3 billion. Philips' remaining stake in Signify is valued around €550million (based on Signify's share price as of 26 April 2019), which represents further source of liquidity.

The company's key credit metrics as of year-end 2018 position it strongly in the Baa1 rating category. If Philips maintains its currentbalance sheet structure on a sustained basis, there could be upward pressure on the rating, provided profitability improves in line withthe company's guidance. However, we expect the company to continue to use its operating cash flow and disposal proceeds for sizableshareholder distributions and acquisitions, both bolt-on and larger ones.

Acquisition appetite, as well as capital allocation for dividends and share buybacks, constrains credit metricsAcquisition multiples in the medical device market tend to be higher than those in the manufacturing or capital goods sectors, whichmakes inorganic expansion quite costly for Philips. The company has been making bolt-on acquisitions and we expect this approachto continue as it allows the company to grow these businesses on its own by leveraging its global sales and service coverage. In 2017,the net cash outflow related to acquisitions amounted to €2.3 billion, which included the acquisition of Spectranetics for €1.9 billion(funded by a mix of debt [€1.0 billion] and cash on hand) and a number of smaller bolt-ons (funded by cash from operations). In 2018,Philips spent €0.6 billion (net) on bolt-on acquisitions, including that of EPD Solutions Ltd. for €0.25 billion. More recently, in March2019, the company announced to acquire the healthcare information systems business of Carestream Health Inc. Our projections for2019 assume a €0.3 billion of bolt-on acquisitions.

Philips has a history of significant shareholder distributions, mostly through share repurchases, which are not included in our adjustedFCF definition but limit the company's ability to de-lever. Over 2016-18, the company generated on average €0.9 billion of FCF(company definition, before dividends) annually, which compares with on average €1.0 billion of shareholder returns per annum(including cash dividends and share buybacks) over the same period. With the publication of Q4 2018 results, Philips announced tostart a new share buyback program (of up to €1.5 billion) in 2019 for two years, before the current program is finalized by Q2 2019.Taking into account the proposed dividend increase by 6% from a year earlier (assuming the same average cash payout ratio ashistorically), we expect Philips to pay out to shareholders an amount of €1.5 billion-€1.7 billion in 2019. This compares with our base-

6 29 April 2019 Royal Philips N.V.: Update to credit analysis

MOODY'S INVESTORS SERVICE CORPORATES

case expectation of cash from operations (CFO) less capital spending of €1.2 billion-€1.5 billion in the next 12-18 months, which meansthat future share buybacks will limit Philips' ability to make acquisitions or invest in existing businesses without raising additional debt.

Exhibit 8

2019-20 share buyback will reduce Philips' ability to make acquisitions or invest in existing businesses without raising additional debt

-

200

400

600

800

1,000

1,200

1,400

1,600

1,800

2,000

2016* 2017 2018 2019p 2020p

FCF (company definition, before dividends) Shareholder returns (dividends + share repurchases)

Source: Moody's Investors Service

Liquidity analysisStrong liquidity, anchored by monetization of stakes in non-core assetsPhilips' liquidity is solid, supported by €1.4 billion of cash and cash equivalents as of 31 March 2019. In April 2019 the companyextended the maturity of its €1.0 billion revolving credit facility (RCF) by one year to April 2024. The RCF was fully undrawn as ofQ1-2019.

Available sources including cash on balance sheet, the undrawn RCF and funds from operations (projected at €2.2 billion in 2019) aresufficient to cover working cash (€0.6 billion, 3% of sales assumption), working capital (€0.1 billion), dividend (€0.4 billion, assumingcash dividend at historical levels) and capital spending requirements (€0.9 billion) over the next four calendar quarters. Furthermore,with its remaining stake of around 16.5% in Signify, the company could generate an additional financial leeway of around €550 million.

Rating methodology and scorecard factors

The grid-implied rating from our Global Medical Product and Device rating methodology (published in June 2017) is Baa1, based on our12-18-month forward view, in line with the assigned rating.

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Exhibit 9

Rating factorsRoyal Philips N.V.

Medical Product & Device Industry Grid [1][2]

Factor 1 : Scale and Diversification (20%) Measure Score Measure Score

a) Revenue (USD Billion) $21.4 A $22 - $23 A

Factor 2 : Business Profile (20%)

a) Diversity and Market Presence A A A A

b) Product and Market Characteristics Baa Baa Baa Baa

Factor 3 : Profitability (7.5%)

a) Return on Sales (NPATBUI / Sales) 7.3% Ba 7% - 10% Baa

Factor 4 : Leverage and Coverage (32.5%)

a) Debt / EBITDA 2.3x Baa 2x - 2.5x Baa

b) CFO / Debt 28.2% Baa 30% - 40% A

c) FCF / Debt 10.4% Ba 10% - 15% Ba

d) EBITA / Interest 9.5x Baa 10x - 12x A

Factor 5 : Financial Policy (20%)

a) Financial Policy Baa Baa Baa Baa

Rating:

a) Indicated Outcome from Scorecard Baa1 Baa1

b) Actual Rating Assigned Baa1

Current

FY 12/31/2018

Moody's 12-18 Month Forward View

As of 4/15/2019 [3]

[1] All ratios are based on 'Adjusted' financial data and incorporate Moody's Global Standard Adjustments for Non-Financial Corporations.[2] As of 12/31/2018.[3] This represents Moody's forward view, not the view of the issuer, and unless noted in the text, does not incorporate significant acquisitions and divestitures.Source: Moody's Financial Metrics™

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Appendix

Exhibit 10

Select historical Moody's-adjusted financial dataRoyal Philips N.V.

EUR Millions

FYE

Dec-14

FYE

Dec-15

FYE

Dec-16

FYE

Dec-17

FYE

Dec-18

INCOME STATEMENT

Revenue/Sales 21,391 24,244 17,422 17,780 18,121

EBITDA 2,123 2,847 2,450 2,507 2,751

EBITA 1,398 2,058 1,907 1,947 2,179

EBIT 1,087 1,682 1,642 1,729 1,869

Interest Expense 322 377 338 250 229

BALANCE SHEET

Cash & Cash Equivalents 1,873 1,766 2,334 1,939 1,688

Total Debt 7,012 8,574 8,233 6,293 6,252

CASH FLOW

Funds from Operations (FFO) 1,737 1,895 2,435 2,250 1,933

Cash Flow from Operations (CFO) 1,965 2,020 2,413 2,309 1,766

Capital Expenditures (CAPEX) 778 900 601 688 712

Dividends 292 298 332 386 404

Retained Cash Flow (RCF) 1,445 1,597 2,103 1,864 1,529

RCF / Debt 20.6% 18.6% 25.5% 29.6% 24.5%

Free Cash Flow (FCF) 895 822 1,480 1,235 650

FCF / Debt 12.8% 9.6% 18.0% 19.6% 10.4%

PROFITABILITY

% Change in Sales (YoY) -2.7% 13.3% -28.1% 2.1% 1.9%

EBIT Margin % 5.1% 6.9% 9.4% 9.7% 10.3%

EBITA Margin % 6.5% 8.5% 10.9% 10.9% 12.0%

EBITDA Margin % 9.9% 11.7% 14.1% 14.1% 15.2%

INTEREST COVERAGE

EBIT / Interest Expense 3.4x 4.5x 4.9x 6.9x 8.2x

EBITA / Interest Expense 4.3x 5.5x 5.6x 7.8x 9.5x

EBITDA / Interest Expense 6.6x 7.5x 7.2x 10.0x 12.0x

LEVERAGE

Debt / EBITDA 3.3x 3.0x 3.4x 2.5x 2.3x

Net Debt / EBITDA 2.4x 2.4x 2.4x 1.7x 1.7x

[1] 2016 metrics have been restated with 2017 audited accounts; 2016, 2017 cash flow metrics include operating cash flow from discontinued operations (Signify).Source: Moody's Financial Metrics

Exhibit 11

Philips' Moody's-adjusted debt breakdownPension and operating leases are the largest adjustments to Philips' debt

EUR Millions

FYE

Dec-14

FYE

Dec-15

FYE

Dec-16

FYE

Dec-17

FYE

Dec-18

Total Unadjusted Debt 4,104 5,760 5,606 4,716 4,821

Pension Adjustments 2,012 1,910 1,764 874 747

Operating Lease Adjustments 875 867 835 659 644

Other Standard Adjustments* 21 37 28 44 40

Total Adjusted Debt 7,012 8,574 8,233 6,293 6,252

*Includes guarantees.Source: Moody's Financial Metrics

9 29 April 2019 Royal Philips N.V.: Update to credit analysis

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Exhibit 12

Philips' Moody's-adjusted EBITDA breakdownCapitalized development costs and operating leases are the largest adjustments to Philips' EBITDA

EUR Millions

FYE

Dec-14

FYE

Dec-15

FYE

Dec-16

FYE

Dec-17

FYE

Dec-18

As Reported EBITDA 1,745 2,289 2,308 2,645 2,795

Pension Adjustments (57) 350 (63) (2) (4)

Operating Lease Adjustments 283 289 193 189 193

Capitalized Development Costs (323) (315) (318) (338) (295)

Interest Expense – Discounting (80) (35) - (22) (15)

Unusual 555 269 341 31 75

Other Standard Adjustments* - - (11) 4 2

Moody's-Adjusted EBITDA 2,123 2,847 2,450 2,507 2,751

*Includes equity-accounted income.Source: Moody's Financial Metrics

Exhibit 13

Peer comparison

USD MillionsFYE

Dec-17

FYE

Dec-18

LTM

Dec-18

FYE

Apr-17

FYE

Apr-18

LTM

Jan-19

FYE

Dec-17

FYE

Dec-18

LTM

Dec-18

FYE

Dec-17

FYE

Dec-18

LTM

Dec-18

FYE

Dec-17

FYE

Dec-18

LTM

Dec-18

Revenue $20,089 $21,399 $21,399 $29,710 $29,953 $30,555 $12,444 $13,601 $13,601 $10,561 $11,127 $11,127 $27,390 $30,578 $30,578

EBITDA $2,833 $3,249 $3,249 $9,622 $9,785 $9,968 $3,554 $4,042 $4,042 $2,570 $2,867 $2,867 $7,186 $7,846 $7,846

Total Debt $7,557 $7,147 $7,147 $35,563 $30,213 $29,286 $8,758 $11,412 $11,412 $5,161 $4,998 $4,998 $33,121 $23,208 $23,208

Cash & Cash Equiv. $2,328 $1,930 $1,930 $4,967 $3,669 $3,703 $2,542 $3,616 $3,616 $3,394 $1,832 $1,832 $9,407 $3,844 $3,844

ROS (NPATBUI / Sales) 5.0% 7.3% 7.3% 15.6% 10.3% 9.4% 10.6% 29.3% 29.3% 8.5% 12.6% 12.6% -1.5% 7.6% 7.6%

EBITA / Int. Exp. 7.8x 9.5x 9.5x 7.2x 7.1x 7.9x 11.8x 12.2x 12.2x 11.2x 12.4x 12.4x 6.1x 7.3x 7.3x

Debt / EBITDA 2.5x 2.3x 2.3x 3.7x 3.1x 2.9x 2.5x 2.8x 2.8x 2.0x 1.7x 1.7x 4.6x 3.0x 3.0x

CFO / Debt 36.7% 28.2% 28.2% 20.3% 16.9% 21.7% 25.1% 24.7% 24.7% 40.8% 44.3% 44.3% 18.1% 27.5% 27.5%

FCF / Debt 19.6% 10.4% 10.4% 9.3% 4.1% 8.0% 9.7% 12.5% 12.5% 20.1% 20.9% 20.9% 8.9% 12.6% 12.6%

Royal Philips N.V. Medtronic, Inc. Stryker Corporation Baxter International Inc. Abbott Laboratories

Baa1 Stable A3 Stable Baa1 Stable Baa1 Stable Baa1 Positive

Source: Moody's Financial Metrics

Ratings

Exhibit 14Category Moody's RatingROYAL PHILIPS N.V.

Outlook StableIssuer Rating Baa1Senior Unsecured Baa1Commercial Paper P-2

Source: Moody's Investors Service

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REPORT NUMBER 1171349

11 29 April 2019 Royal Philips N.V.: Update to credit analysis

MOODY'S INVESTORS SERVICE CORPORATES

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Stephan Wulf +49.69.70730.856VP-Senior Analyststephan.wulf@moodys.com

Christian Hendker, CFA +49.69.70730.735Associate ManagingDirectorchristian.hendker@moodys.com

Svitlana Ukrayinets +49.69.70730.920Associate Analystsvitlana.ukrayinets@moodys.com

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12 29 April 2019 Royal Philips N.V.: Update to credit analysis