Koninklijke Philips N.V announced that a proposal will be submitted to the Annual General Meeting of Shareholders to be held on May 1, 2014 to declare a distribution of EUR 0.80 per common share (up to EUR 740 million), in cash or shares at the option of the shareholder, against the net income for 2013. If the above dividend proposal is adopted, the shares will be traded ex-dividend as of May 5, 2014 and the dividend record date will be May 7, 2014. Shareholders will be given the opportunity to make their choice between cash and shares between May 8, 2014 and May 30, 2014.

If no choice is made during this election period the dividend will be paid in shares. Payment of the dividend and delivery of new common shares, with settlement of fractions in cash, if required, will take place from June 4, 2014.