SECURITIES AND EXCHANGE COMMISSION

Washington, D.C. 20549

FORM 6-K

REPORT OF FOREIGN ISSUER

Pursuant to Rule 13a-16 or 15d-16 of the

Securities Exchange Act of 1934

April 25, 2016

KONINKLIJKE PHILIPS N.V.

(Exact name of registrant as specified in its charter)

Royal Philips

(Translation of registrant’s name into English)

The Netherlands

(Jurisdiction of incorporation or organization)

Breitner Center, Amstelplein 2, 1096 BC Amsterdam, The Netherlands

(Address of principal executive offices)

Indicate by check mark whether the registrant files or will file annual reports under cover Form 20-F or Form 40-F.

Form 20-F  x            Form 40-F  ¨

Indicate by check mark if the registrant is submitting the Form 6-K in paper as permitted by Regulation S-T Rule101(b)(1):  ¨

Indicate by check mark if the registrant is submitting the Form 6-K in paper as permitted by Regulation S-T Rule101(b)(7):  ¨

Indicate by check mark whether the registrant by furnishing the information contained in this Form is also thereby furnishing the information to the Commission pursuant to Rule 12g3-2(b) under the Securities Exchange Act of 1934.

Yes  ¨            No   x

Name and address of person authorized to receive notices

and communications from the Securities and Exchange Commission:

M.J. van Ginneken

Koninklijke Philips N.V.

Amstelplein 2

1096 BC Amsterdam – The Netherlands

This report comprises a copy of the following press release:

“Philips’ First Quarter Results 2016”, dated April 25, 2016.

Pursuant to the requirements of the Securities Exchange Act of 1934, the registrant has duly caused this report to be signed on its behalf, by the undersigned, thereunto duly authorized at Amsterdam, on the 25^th of April, 2016.

KONINKLIJKE PHILIPS N.V.

/s/ M.J. van Ginneken

(General Secretary)

Philips reports Q1 comparable sales growth of 3% to EUR 5.5 billion and a 14% improvement in Adjusted EBITA to EUR 374 million

Amsterdam, April 25, 2016

First-quarter highlights

• Comparable sales growth driven by 5% growth in HealthTech portfolio

• Adjusted EBITA amounted to EUR 374 million, or 6.8% of sales, compared to 6.1% of sales in Q1 2015

• EBITA totaled EUR 290 million, or 5.3% of sales, compared to 4.3% of sales in Q1 2015

• Net income amounted to EUR 37 million, compared to EUR 100 million in Q1 2015, mainly impacted by tax charges related to the separation

• Free cash outflow of EUR 177 million, compared to an outflow of EUR 443 million in Q1 2015

• Philips Lighting separation process well on track

Frans van Houten, CEO:

“Philips’ first-quarter 2016 results reflect solid comparable sales growth across our HealthTech businesses and our LED Lighting business, bolstered by the successful launch of several new products. We also delivered continued operational improvements throughout the company, driven by higher volume and improved product mix. Our overall performance strengthened, supported by the ongoing benefits of our multi-year Accelerate! transformation program, despite challenging macro-economic conditions in several markets.

Our outlook for 2016 remains unchanged, as we continue to expect earnings improvements in the year to be back-end loaded, taking into account ongoing macro-economic headwinds and the phasing of costs and sales.”

HealthTech

“Our HealthTech portfolio delivered another strong quarter, with 5% comparable sales growth overall, despite anticipated lower royalty income. We also achieved significant operational improvements, which were partly offset by ongoing investments in high-growth businesses, such as wearable patient monitoring solutions, digital pathology and health informatics. Equipment-order intake in the quarter declined by 3% on a comparable basis, after a quarter with double-digit order growth, largely reflecting the unevenness of our order intake dynamics.”

In Personal Health, comparable sales growth was 6%, with the Adjusted EBITA margin improving by 130 basis points. Diagnosis & Treatment showed 5% comparable growth, and the Adjusted EBITA margin improved by 80 basis points. Connected Care & Health Informatics grew 9%, while the Adjusted EBITA margin improved by 310 basis points.

• Philips’ new integrated Dream Family solution, which is designed to improve the sleep therapy experience for people with obstructive sleep apnea, is showing strong traction in Europe and the US, with more than 200,000 Dream Family users since its introduction in 2015, and is now being launched in Japan.

• Building on the synergies of the Volcano acquisition, the Image-Guided Therapy business posted a strong first quarter across its markets, supported by the expansion of its Phoenix Atherectomy catheter product range and the strong synergies between its smart catheter and systems sales forces.

• In line with our strategy of building multi-year strategic partnerships, Philips signed a 15-year, USD 90 million agreement with San Francisco Bay-based Marin General Hospital that includes a managed services agreement for imaging systems, patient monitoring and clinical informatics solutions.

• Strengthening its Health Informatics portfolio, Philips partnered with Hitachi Data Systems to introduce a next-generation Vendor Neutral Archive system, supporting rapid access to medical imaging and digital health records across the enterprise. Philips also teamed up with Amazon Web Services to deliver a new cloud-based, enterprise-wide rapid and secure data recovery solution.

• Philips’ Oral Healthcare business continued its growth trajectory, with a strong performance in Greater China where the Philips Sonicare Essence+ was recently launched, providing consumers with a high-quality brushing experience at affordable price points.

Lighting

“Philips Lighting’s first-quarter performance improvement signals its great future as a focused, stand-alone company. Lighting posted its sixth consecutive quarter of year-on-year operational improvements, underpinning the strong potential of our LED business and the transformation from individual products to connected lighting systems and services. As a result of our market success in LED and its growing share of the overall business, Philips Lighting is expected to return to positive comparable sales growth in the course of 2016.”

LED lighting sales grew strongly by 27% and now account for 50% of overall Lighting sales. Conventional lamps sales continued their anticipated decline, contracting 15% year-on-year. The Home business delivered double-digit growth for the second consecutive quarter, while Professional in North America returned to positive growth in the quarter. The Adjusted EBITA margin at Philips Lighting increased by 60 basis points, driven by cost productivity and product mix.

• Philips Lighting introduced great innovations at Light + Building, a leading industry trade show, showcasing its connected LED lighting growth platforms for smart cities, smart retailing, smart offices and smart homes.

• Philips Lighting has partnered with Vodafone to help increase adoption of connected LED street lighting for smart cities. Currently, of the over 300 million street lights globally, less than 12% are LED and less than 2% are connected. Philips Lighting introduced DigiStreet, its new range of LED street lighting luminaires which can wirelessly connect to CityTouch, enabling the street lights to be monitored, controlled and managed remotely for additional savings on energy and maintenance.

• To further fuel its LED growth, Philips Lighting continues to innovate with the introduction of three new LED lamp families: the Philips classic LED spot range to replace the popular halogen spotlight, the Philips SceneSwitch LED lamp range with its unique three light settings in one light bulb, and the Philips classic LED with DimTone.

• Underlining its market leadership in dynamic connected LED lighting to transform building facades and monuments, Philips Lighting lit up two iconic landmarks in Spain: the CEPSA Tower, one of Spain’s tallest buildings, and Baño de la Cava, a World Heritage site in Toledo.

Separation Update

As previously communicated, Philips continues to simultaneously prepare for an initial public offering (IPO) or a private sale of Philips Lighting. With equity markets’ sentiment improving compared to the first couple of months of the year, an IPO increasingly appears a more likely outcome, subject to further market developments and other relevant circumstances. However, the company has not yet concluded on all proposals in the private sale process and continues to assess the attractiveness of this route compared to the IPO, both in terms of value and conditions, while taking into account the best interests of Philips and its stakeholders. As such, Philips expects to update the market on conclusions and next steps shortly.

Costs related to the separation amounted to EUR 52 million in the first quarter of 2016. For 2016, Philips now expects separation costs to be in the range of EUR 200 - 225 million.

Cost Savings

Overhead cost savings amounted to EUR 19 million in the first quarter. The Design for Excellence (DfX) program generated EUR 67 million of incremental procurement savings in the quarter. The End2End improvement program achieved EUR 41 million in productivity gains.

Miscellaneous

As of March 31, 2016, Philips had completed 82% of the 3-year EUR 1.5 billion share buy-back program.

This first-quarter 2016 results publication is based on Philips’ new segment reporting structure. The related historical key figures for 2014 and 2015 have been published on the Investor Relations website.

Conference call and audio webcast

Frans van Houten, CEO, and Abhijit Bhattacharya, CFO, will host a conference call for investors and analysts at 10:00 am CET to discuss the results. A live audio webcast of the conference call will be available on the Philips Investor Relations website.

Philips Q1 2016 Earnings call

Philips

Key data in millions of EUR unless otherwise stated
	Q1 2015			Q1 2016
Sales		5,339			5,517
Nominal sales growth		14	%		3	%
Comparable sales growth		2	%		3	%
Adjusted EBITA		327			374
as a % of sales		6.1	%		6.8	%
EBITA		230			290
as a % of sales		4.3	%		5.3	%
EBIT		139			199
as a % of sales		2.6	%		3.6	%
Financial expenses, net		(67	)		(114	)
Income taxes		(31	)		(75	)
Results investments in associates		23			3
Net income from continuing operations		64			13
Discontinued operations		36			24
Net income		100			37
Net income attributable to shareholders per common share (in EUR) - diluted		0.11			0.03

• Currency-comparable order intake declined by a low single digit, due to a low-single-digit decline in Connected Care & Health Informatics and a mid-single-digit decline in Diagnosis & Treatment. North America and other mature geographies were in line with Q1 2015, while growth geographies showed a low-single-digit decline, mainly due to China. Western Europe posted a high-single-digit decline.

• Comparable sales growth was driven by 5% growth in the HealthTech portfolio, partly offset by a 2% decline in Lighting.

• Adjusted EBITA improved by EUR 47 million, or 0.7% of sales, year-on-year. The improvement was mainly attributable to higher volume, product mix and cost productivity, partly offset by currency impacts.

• Restructuring and acquisition-related charges amounted to EUR 32 million, compared to EUR 58 million in Q1 2015. EBITA also included EUR 52 million of charges related to the separation of the Lighting business, compared to EUR 11 million in Q1 2015. EBITA in Q1 2015 also included a EUR 28 million charge related to the currency revaluation of the provision for the Masimo litigation.

• Net financial expenses increased by EUR 47 million year-on-year, mainly due to a market fair value adjustment of Philips’ stake in Corindus Vascular Robotics.

• Income tax expense increased by EUR 44 million compared to Q1 2015, mainly due to additional tax charges resulting from activities related to the separation of the Lighting business.

• Results from investments in associates showed a year-on-year decrease of EUR 20 million due to a gain from the sale of Assembléon Technologies B.V. in Q1 2015.

• Net income decreased by EUR 63 million compared to Q1 2015. Improved performance in the HealthTech portfolio and in Lighting was more than offset by higher financial charges as well as tax charges resulting from activities related to the separation of the Lighting business.

Sales per geographic cluster in millions of EUR unless otherwise stated
					% change
	Q1 2015		Q1 2016		nominal			comparable
Western Europe		1,334		1,334		0	%		0	%
North America		1,753		1,937		10	%		5	%
Other mature geographies		443		459		4	%		(1	)%
Total mature geographies		3,530		3,730		6	%		3	%
Growth geographies		1,809		1,787		(1	)%		3	%
Philips		5,339		5,517		3	%		3	%

• Comparable sales growth in mature geographies was largely driven by mid-single-digit growth in North America. Western Europe was in line with Q1 2015. Double-digit growth in Benelux was offset by a mid-single-digit decline in Germany, Austria & Switzerland and a high-single-digit decline in Iberia.

• Comparable sales growth in growth geographies was driven by low-single-digit growth in China and high-single-digit growth in India.

Quarterly report Q1 2016        3

Cash balance in millions of EUR
	Q1 2015			Q1 2016
Beginning cash balance		1,873			1,766
Free cash flow		(443	)		(177	)
Net cash flow from operating activities		(256	)		10
Net capital expenditures		(187	)		(187	)
Acquisitions and divestments of businesses		(1,066	)		(31	)
Other cash flow from investing activities		(17	)		(66	)
Treasury shares transactions		(108	)		(157	)
Changes in debt		1,190			75
Other cash flow items		174			(40	)
Net cash flow discontinued operations		64			15
Ending cash balance		1,667			1,385

• In Q1 2016 the cash balance decreased to EUR 1,385 million, with a free cash outflow of EUR 177 million, which included an outflow of EUR 172 million related to pension liability de-risking in the United States.

• The cash balance decreased during Q1 2015 to EUR 1,667 million, with a free cash outflow of EUR 443 million, which included an outflow of EUR 171 million related to settlements for pension de-risking and an outflow of EUR 309 million related to the settlement of CRT antitrust litigation.

• As of March 31, 2016, Philips had completed 82% of the 3-year EUR 1.5 billion share buy-back program.

4        Quarterly report Q1 2016

Performance per segment

Personal Health

Key data in millions of EUR unless otherwise stated
	Q1 2015			Q1 2016
Sales		1,522			1,610
Sales growth
Nominal sales growth		17	%		6	%
Comparable sales growth		9	%		6	%
Adjusted EBITA		195			227
as a % of sales		12.8	%		14.1	%
EBITA		194			225
as a % of sales		12.7	%		14.0	%

• Comparable sales growth was driven by double-digit growth in Health & Wellness, high-single-digit growth in Personal Care, mid-single-digit growth in Sleep & Respiratory Care and low-single-digit growth in Domestic Appliances.

• Comparable sales in growth geographies showed high-single-digit growth, driven by double-digit growth in Middle East & Turkey and Central & Eastern Europe and low-single-digit growth in China. Mature geographies recorded mid-single-digit growth, with mid-single-digit growth in North America, low-single-digit growth in Western Europe and double-digit growth in other mature geographies.

• Adjusted EBITA increased by EUR 32 million, or 1.3% of sales, compared to Q1 2015. The increase was attributable to higher volumes and product mix.

• Restructuring and acquisition-related charges were EUR 2 million, compared to EUR 1 million in Q1 2015.

• Restructuring and acquisition-related charges are expected to total approximately EUR 5 million in Q2 2016.

Diagnosis & Treatment

Key data in millions of EUR unless otherwise stated
	Q1 2015			Q1 2016
Sales		1,304			1,419
Sales growth
Nominal sales growth		20	%		9	%
Comparable sales growth		5	%		5	%
Adjusted EBITA		19			32
as a % of sales		1.5	%		2.3	%
EBITA		(13	)		23
as a % of sales		(1.0	)%		1.6	%

• Comparable sales growth was driven by double-digit growth in Image-Guided Therapy, mid-single-digit growth in Ultrasound and low-single-digit growth in Diagnostic Imaging.

• Comparable sales in growth geographies showed double-digit growth, largely driven by China and India. Mature geographies recorded low-single-digit growth, with mid-single-digit growth in Western Europe and low-single-digit growth in North America, partly offset by a low-single-digit decline in other mature geographies.

• Adjusted EBITA improved by EUR 13 million, or 0.8% of sales, year-on-year. The improvement was due to higher volumes and cost productivity, partly offset by currency impacts.

• Restructuring and acquisition-related charges were EUR 9 million, compared to EUR 32 million in Q1 2015.

• Restructuring and acquisition-related charges are expected to total approximately EUR 20 million in Q2 2016.

Connected Care & Health Informatics

Key data in millions of EUR unless otherwise stated
	Q1 2015			Q1 2016
Sales		625			694
Sales growth
Nominal sales growth		4	%		11	%
Comparable sales growth		(7	)%		9	%
Adjusted EBITA		5			27
as a % of sales		0.8	%		3.9	%
EBITA		(24	)		23
as a % of sales		(3.8	)%		3.3	%

• Comparable sales growth was driven by double-digit growth in Patient Care & Monitoring Solutions and high-single-digit growth in Healthcare Informatics, Solutions & Services, partly offset by a mid-single-digit decline in Population Health Management.

• Comparable sales in growth geographies showed double-digit growth, mainly driven by Middle East & Turkey and India. Mature geographies posted high-single-digit growth. North America achieved double-digit growth, other mature geographies recorded low-single-digit growth, while Western Europe reported a low-single-digit decline.

• Adjusted EBITA improved by EUR 22 million, or 3.1% of sales, year-on-year. The increase was attributable to higher volumes.

Quarterly report Q1 2016        5

• Restructuring and acquisition-related charges were EUR 4 million, compared to EUR 1 million in Q1 2015. EBITA in Q1 2015 included charges of EUR 28 million related to the currency revaluation of the provision for the Masimo litigation.

• Restructuring and acquisition-related charges are expected to total approximately EUR 5 million in Q2 2016.

HealthTech Other

Key data in millions of EUR
	Q1 2015			Q1 2016
Sales		135			103
Adjusted EBITA		20			(9	)
IP Royalties		87			57
Emerging Businesses		(12	)		(20	)
Innovation		(32	)		(24	)
Central costs		(18	)		(21	)
Other		(5	)		(1	)
EBITA		24			(7	)

• Sales reflected lower royalty income due to the expiration of licenses, as anticipated, partly offset by strong double-digit growth in Emerging Businesses.

• The Adjusted EBITA decline was mainly due to lower royalty income and higher investments in Emerging Businesses.

• EBITA included a EUR 2 million net release of restructuring charges, while Q1 2015 included a net release of EUR 4 million.

• Restructuring and acquisition-related charges are expected to total approximately EUR 10 million in Q2 2016.

Lighting

Key data in millions of EUR unless otherwise stated
	Q1 2015			Q1 2016
Sales		1,722			1,691
Sales growth
Nominal sales growth		9	%		(2	)%
Comparable sales growth		(3	)%		(2	)%
Adjusted EBITA		113			121
as a % of sales		6.6	%		7.2	%
EBITA		85			102
as a % of sales		4.9	%		6.0	%

• Comparable sales reflected double-digit growth in LED and Home, which was more than offset by a double-digit decline in Lamps and a low-single-digit decline in Professional.

• Total LED lighting sales grew 27% year-on-year and now represent 50% of total Lighting sales, compared to 39% in Q1 2015. Conventional lighting sales declined 20% year-on-year, in line with the industry trend, and now represent 50% of total Lighting sales, compared to 61% in Q1 2015.

• With the continued growth of LED within the total portfolio, Philips Lighting is expected to return to growth in the course of 2016.

• Mature geographies recorded low-single-digit growth, with mid-single-digit growth in North America and low-single-digit growth in other mature geographies, while Western Europe reported a mid-single-digit decline. Growth geographies recorded a mid-single-digit decline, mainly due to Middle East & Turkey and Latin America.

• Adjusted EBITA improved year-on-year for the sixth consecutive quarter. The increase of EUR 8 million, or 0.6% of sales, was attributable to cost productivity and product mix, partly offset by currency impacts.

• Restructuring and acquisition-related charges were EUR 19 million, compared to EUR 28 million in Q1 2015.

• Restructuring and acquisition-related charges are expected to total approximately EUR 60 million in Q2 2016.

6        Quarterly report Q1 2016

Legacy Items

• ‘Legacy Items’ consists mainly of separation costs, legacy legal items and stranded costs.

• Q1 2016 EBITA largely included EUR 52 million of charges related to the separation of the Lighting business, EUR 12 million of charges related to movements in environmental provisions, and EUR 8 million of stranded costs related to the combined Lumileds and Automotive businesses.

• Charges related to the separation of the Lighting business are expected to total approximately EUR 70 million in Q2 2016.

Quarterly report Q1 2016        7

Additional information on the combined businesses of Lumileds and Automotive

Results of combined Lumileds and Automotive businesses in millions of EUR
	Q1 2015			Q1 2016
EBITA as previously reported in Lighting		33			(1	)
Adjustment of amortization and depreciation following assets held for sale reclassification		42			41
Disentanglement costs		(19	)		(1	)
Former net costs allocated to Lighting		(1	)		—
Former net costs allocated to Legacy Items		23			8
EBIT of discontinued operations		78			47
Financial expenses, net		—			(1	)
Income taxes		(41	)		(14	)
Net income of discontinued operations		37			32

The combined businesses of Lumileds and Automotive are reported as discontinued operations in the Consolidated statements of income and cash flows. As a result, Lumileds and Automotive sales and EBITA are no longer included in the Lighting and Group results of continuing operations. The applicable assets and liabilities of the combined businesses are reported under Assets and Liabilities classified as held for sale in the Condensed consolidated balance sheets as per November 2014.

EBITA decreased by EUR 34 million, mainly due to lower sales impacting gross margins. Net income of discontinued operations attributable to the combined businesses of Lumileds and Automotive decreased by EUR 5 million, mainly due to lower operational performance, partly offset by lower income tax charges.

Philips is actively engaging with other parties that have expressed an interest in the businesses and will continue to report the Lumileds and Automotive businesses as discontinued operations.

Overhead and other indirect costs of Philips that were previously allocated to Lumileds and Automotive and were not affected by the transfer to Discontinued operations have been allocated to Lighting and Legacy Items.

8        Quarterly report Q1 2016

Adjusted EBITA and EBITA per segment

Personal Health

Adjusted EBITA in millions of EUR unless otherwise stated

EBITA in millions of EUR unless otherwise stated

Diagnosis & Treatment

Adjusted EBITA in millions of EUR unless otherwise stated

EBITA in millions of EUR unless otherwise stated

Connected Care & Health Informatics

Adjusted EBITA in millions of EUR unless otherwise stated

EBITA in millions of EUR unless otherwise stated

Quarterly report Q1 2016        9

Lighting

Adjusted EBITA in millions of EUR unless otherwise stated

EBITA in millions of EUR unless otherwise stated

10        Quarterly report Q1 2016

Forward-looking statements and other presentation matters

Forward-looking statements

This document and the related oral presentation, including responses to questions following the presentation, contain certain forward-looking statements with respect to the financial condition, results of operations and business of Philips and certain of the plans and objectives of Philips with respect to these items. Examples of forward-looking statements include statements made about the strategy, estimates of sales growth, future EBITA, future developments in Philips’ organic business and the completion of acquisitions and divestments. By their nature, these statements involve risk and uncertainty because they relate to future events and circumstances and there are many factors that could cause actual results and developments to differ materially from those expressed or implied by these statements.

These factors include but are not limited to domestic and global economic and business conditions, developments within the euro zone, the successful implementation of Philips’ strategy and the ability to realize the benefits of this strategy, the ability to develop and market new products, changes in legislation, legal claims, changes in exchange and interest rates, changes in tax rates, pension costs and actuarial assumptions, raw materials and employee costs, the ability to identify and complete successful acquisitions, and to integrate those acquisitions into the business, the ability to successfully exit certain businesses or restructure the operations, the rate of technological changes, political, economic and other developments in countries where Philips operates, industry consolidation and competition and the state of international capital markets as they may affect the timing and nature of the dispositions by Philips of its interests in the Lighting business and the Lumileds and Automotive business. As a result, Philips’ actual future results may differ materially from the plans, goals and expectations set forth in such forward-looking statements. For a discussion of factors that could cause future results to differ from such forward-looking statements, see the Risk management chapter included in the Annual Report 2015.

Third-party market share data

Statements regarding market share, including those regarding Philips’ competitive position, contained in this document are based on outside sources such as research institutes, industry and dealer panels in combination with management estimates. Where information is not yet available to Philips, those statements may also be based on estimates and projections prepared by outside sources or management. Rankings are based on sales unless otherwise stated.

Use of non-GAAP information

In presenting and discussing the Philips Group financial position, operating results and cash flows, management uses certain non-GAAP financial measures. These non-GAAP financial measures should not be viewed in isolation as alternatives to the equivalent IFRS measures and should be used in conjunction with the most directly comparable IFRS measures. Non-GAAP financial measures do not have standardized meaning under IFRS and therefore may not be comparable to similar measures presented by other issuers. A reconciliation of these non-GAAP measures

to the most directly comparable IFRS measures is contained in this document. Further information on non-GAAP measures can be found in the Annual Report 2015.

Use of fair-value measurements

In presenting the Philips Group financial position, fair values are used for the measurement of various items in accordance with the applicable accounting standards. These fair values are based on market prices, where available, and are obtained from sources that are deemed to be reliable. Readers are cautioned that these values are subject to changes over time and are only valid at the balance sheet date. When quoted prices or observable market data are not readily available, fair values are estimated using appropriate valuation models and unobservable inputs. Such fair value estimates require management to make significant assumptions with respect to future developments, which are inherently uncertain and may therefore deviate from actual developments. Critical assumptions used are disclosed in the Annual Report 2015. Independent valuations may have been obtained to support management’s determination of fair values.

Presentation

All amounts are in millions of euros unless otherwise stated. All reported data is unaudited. Financial reporting is in accordance with the accounting policies as stated in the Annual Report 2015, unless otherwise stated.

Quarterly report Q1 2016        11

Condensed consolidated statements of income

Condensed consolidated statements of income in millions of EUR unless otherwise stated
	Q1 2015			Q1 2016
Sales		5,339			5,517
Cost of sales		(3,223	)		(3,251	)
Gross margin		2,116			2,266
Selling expenses		(1,341	)		(1,418	)
General and administrative expenses		(214	)		(189	)
Research and development expenses		(436	)		(470	)
Impairment of goodwill					(2	)
Other business income		22			21
Other business expenses		(8	)		(9	)
Income from operations		139			199
Financial income		31			27
Financial expenses		(98	)		(141	)
Income before taxes		72			85
Income taxes		(31	)		(75	)
Income after taxes		41			10
Results relating to investments in associates		23			3
Net income from continuing operations		64			13
Discontinued operations - net of income tax		36			24
Net income		100			37
Attribution of net income for the period
Net income attributable to Koninklijke Philips N.V. shareholders		99			32
Net income attributable to non-controlling interests		1			5
Earnings per common share attributable to shareholders
Weighted average number of common shares outstanding (after deduction of treasury shares) during the period (in thousands):
- basic		912,086			913,929
- diluted		918,215			924,706
Net income attributable to shareholders per common share in EUR:
- basic		0.11			0.04
- diluted		0.11			0.03

12        Quarterly report Q1 2016

Condensed consolidated balance sheets

Condensed consolidated balance sheets in millions of EUR
	March 31, 2015		December 31, 2015		March 31, 2016
Non-current assets:
Property, plant and equipment		2,344		2,322		2,218
Goodwill		8,596		8,523		8,265
Intangible assets excluding goodwill		3,985		3,693		3,526
Non-current receivables		195		191		166
Investments in associates		173		181		205
Other non-current financial assets		512		489		436
Non-current derivative financial assets		63		58		45
Deferred tax assets		2,677		2,758		2,689
Other non-current assets		89		68		70
Total non-current assets		18,634		18,283		17,620
Current assets:
Inventories		3,916		3,463		3,601
Other current financial assets		125		12		12
Other current assets		537		444		523
Current derivative financial assets		288		103		87
Income tax receivable		118		114		120
Receivables		4,917		4,982		4,597
Assets classified as held for sale		1,591		1,809		1,812
Cash and cash equivalents		1,667		1,766		1,385
Total current assets		13,159		12,693		12,137
Total assets		31,793		30,976		29,757
Equity
Shareholders’ equity		11,382		11,662		11,279
Non-controlling interests		114		118		130
Group equity		11,496		11,780		11,409
Non-current liabilities:
Long-term debt		4,118		4,095		3,984
Non-current derivative financial liabilities		798		695		518
Long-term provisions		2,575		2,392		2,341
Deferred tax liabilities		106		164		129
Other non-current liabilities		2,066		1,782		1,533
Total non-current liabilities		9,663		9,128		8,505
Current liabilities:
Short-term debt		1,667		1,665		1,705
Current derivative financial liabilities		590		238		268
Income tax payable		154		116		153
Accounts payable		2,913		2,673		2,434
Accrued liabilities		2,778		2,863		2,695
Short-term provisions		862		833		790
Liabilities directly associated with assets held for sale		335		407		430
Other current liabilities		1,335		1,273		1,368
Total current liabilities		10,634		10,068		9,843
Total liabilities and group equity		31,793		30,976		29,757

Quarterly report Q1 2016        13

Condensed consolidated statements of cash flows

Condensed consolidated statements of cash flows in millions of EUR
	Q1 2015			Q1 2016
Cash flows from operating activities
Net income		100			37
Results of discontinued operations - net of income tax		(36	)		(24	)
Adjustments to reconcile net income to net cash of operating activities:
Depreciation, amortization, and impairments of fixed assets		283			310
Impairment of goodwill and other non-current financial assets		—			23
Net gain on sale of assets		(34	)		(4	)
Interest income		(14	)		(14	)
Interest expense on debt, borrowings and other liabilities		66			72
Income taxes		31			75
Results from investments in associates		(2	)		(2	)
Increase in working capital:		(18	)		(60	)
Decrease in receivables and other current assets		82			323
Increase in inventories		(243	)		(223	)
Increase (decrease) in accounts payable, accrued and other liabilities		143			(160	)
Decrease (increase) in non-current receivables, other assets, other liabilities		42			(312	)
Decrease in provisions		(162	)		(50	)
Other items		(365	)		141
Interest paid		(101	)		(116	)
Interest received		14			14
Income taxes paid		(60	)		(80	)
Net cash provided by (used for) operating activities		(256	)		10
Cash flows from investing activities
Net capital expenditures		(187	)		(187	)
Purchase of intangible assets		(28	)		(32	)
Expenditures on development assets		(72	)		(74	)
Capital expenditures on property, plant and equipment		(92	)		(87	)
Proceeds from sale of property, plant and equipment		5			6
Cash used for derivatives and current financial assets		(37	)		(70	)
Purchase of other non-current financial assets		—			(1	)
Proceeds from other non-current financial assets		20			5
Purchase of businesses, net of cash acquired		(1,103	)		(27	)
Proceeds from (cash used for) sale of interests in businesses, net of cash disposed of		37			(4	)
Net cash used for investing activities		(1,270	)		(284	)
Cash flows from financing activities
Proceeds from issuance of short-term debt		1,192			64
Principal payments on long-term debt		(20	)		(8	)
Proceeds from issuance of long-term debt		18			19
Re-issuance of treasury shares		35			11
Purchase of treasury shares		(143	)		(168	)
Net cash provided by (used for) financing activities		1,082			(82	)
Net cash used for continuing operations		(444	)		(356	)
Cash flows from discontinued operations
Net cash provided by operating activities		64			15
Net cash provided by discontinued operations		64			15
Net cash provided by (used for) continuing and discontinued operations		(380	)		(341	)
Effect of change in exchange rates on cash and cash equivalents		174			(40	)
Cash and cash equivalents at the beginning of the period		1,873			1,766
Cash and cash equivalents at the end of the period		1,667			1,385

For a number of reasons, principally the effects of translation differences, certain items in the statements of cash flows do not correspond to the differences between the balance sheet amounts for the respective items.

14        Quarterly report Q1 2016

Condensed consolidated statement of changes in equity

Condensed consolidated statement of changes in equity in millions of EUR
	common shares		capital in excess of par value			retained earnings			revaluation reserve			currency translation differences			available- for-sale financial assets			cash flow hedges			treasury shares at cost			total shareholders’ equity			non-controlling interests		total equity
Balance as of December 31, 2015		186		2,669			8,040			4			1,058			56			12			(363	)		11,662			118		11,780
Total comprehensive income (loss)							36			(2	)		(263	)		(20	)		(4	)					(253	)		5		(248	)
Movement non-controlling interest																												7		7
Purchase of treasury shares																						(174	)		(174	)				(174	)
Re-issuance of treasury shares				(1	)		(8	)														20			11					11
Share call options1)							(77	)														77			—					—
Share-based compensation plans				28																					28					28
Income tax share-based compensation plans				5																					5					5
Total other equity movements				32			(85	)														(77	)		(130	)		7		(123	)
Balance as of March 31, 2016		186		2,701			7,991			2			795			36			8			(440	)		11,279			130		11,409

¹⁾  During the first quarter of 2016 Philips bought call options to hedge a part of the commitments under share based payment plans. The call option premiums paid (EUR 64 million) are deducted from retained earnings and were settled in Philips shares (representing a historical cost of EUR 77 million based on a FIFO method) held by the company. The difference between the option premiums and the historical cost of the Philips shares is recorded in retained earnings.

Quarterly report Q1 2016        15

Segments and main countries

Sales and income (loss) from operations in millions of EUR unless otherwise stated
	Q1 2015								Q1 2016
	sales		income from operations						sales		income from operations
						as a % of sales								as a % of sales
Personal Health		1,522		157			10.3	%		1,610		190			11.8	%
Diagnosis & Treatment		1,304		(24	)		(1.8	)%		1,419		10			0.7	%
Connected Care & Health Informatics		625		(37	)		(5.9	)%		694		11			1.6	%
HealthTech Other		135		21						103		(9	)
Lighting		1,722		59			3.4	%		1,691		73			4.3	%
Legacy Items		31		(37	)					—		(76	)
Philips		5,339		139			2.6	%		5,517		199			3.6	%

Sales and tangible and intangible assets in millions of EUR
	sales				long-lived assets1)
	Q1				March 31,		March 31,
	2015		2016		2015		2016
Netherlands		142		157		950		974
United States		1,627		1,813		9,693		8,893
China		615		649		1,255		1,140
Germany		317		308		147		174
Japan		247		283		425		473
France		186		189		50		47
India		171		174		146		119
Other countries		2,034		1,944		2,259		2,189
Philips		5,339		5,517		14,925		14,009

¹⁾  Includes property, plant and equipment, intangible assets excluding goodwill, and goodwill

16        Quarterly report Q1 2016

Reconciliation of non-GAAP performance measures

Certain non-GAAP financial measures are presented when discussing the Philips Group’s performance. In the following tables, reconciliations to the most directly comparable IFRS measures are presented.

Sales growth composition in %
	Q1
	comparable growth			currency effects			consolidation changes			nominal growth
2016 versus 2015
Personal Health		5.8			0.0			0.0			5.8
Diagnosis & Treatment		5.0			1.0			2.8			8.8
Connected Care & Health Informatics		8.8			2.6			(0.2	)		11.2
HealthTech Other		(23.7	)		0.0			0.0			(23.7	)
Lighting		(1.7	)		(0.1	)		0.0			(1.8	)
Philips		2.8			0.4			0.1			3.3

Adjusted EBITA to Income from operations (or EBIT) in millions of EUR
	Q1
	Adjusted EBITA			Other items			Restructuring and acquisition related charges			EBITA (or Adjusted income from operations)			Amortization of intangibles			Impairment of goodwill			EBIT
2016
Personal Health		227						(2	)		225			(35	)					190
Diagnosis & Treatment		32						(9	)		23			(13	)					10
Connected Care & Health Informatics		27						(4	)		23			(12	)					11
HealthTech Other		(9	)					2			(7	)		(2	)					(9	)
Lighting		121						(19	)		102			(27	)		(2	)		73
Legacy Items		(24	)		(52	)					(76	)								(76	)
Philips		374			(52	)		(32	)		290			(89	)		(2	)		199
2015
Personal Health		195						(1	)		194			(37	)					157
Diagnosis & Treatment		19						(32	)		(13	)		(11	)					(24	)
Connected Care & Health Informatics		5			(28	)		(1	)		(24	)		(13	)					(37	)
HealthTech Other		20						4			24			(3	)					21
Lighting		113						(28	)		85			(26	)					59
Legacy Items		(25	)		(11	)					(36	)		(1	)					(37	)
Philips		327			(39	)		(58	)		230			(91	)					139

Composition of cash flows in millions of EUR
	Q1 2015			Q1 2016
Cash flows provided by (used for) operating activities		(256	)		10
Cash flows used for investing activities		(1,270	)		(284	)
Cash flows before financing activities		(1,526	)		(274	)
Cash flows provided by (used for) operating activities		(256	)		10
Net capital expenditures:		(187	)		(187	)
Purchase of intangible assets		(28	)		(32	)
Expenditures on development assets		(72	)		(74	)
Capital expenditures on property, plant and equipment		(92	)		(87	)
Proceeds from sale of property, plant and equipment		5			6
Free cash flows		(443	)		(177	)

Quarterly report Q1 2016        17

Reconciliation of non-GAAP performance measures (continued)

Net operating capital to total assets in millions of EUR
	March 31, 2015		March 31, 2016
Net operating capital (NOC)		10,977		11,118
Exclude liabilities comprised in NOC:
- payables/liabilities		10,634		8,969
- provisions		3,437		3,131
Include assets not comprised in NOC:
- investments in associates		173		205
- other current financial assets		125		12
- other non-current financial assets		512		436
- deferred tax assets		2,677		2,689
- cash and cash equivalents		1,667		1,385
Assets classified as held for sale		1,591		1,812
Total assets		31,793		29,757

Composition of net debt to group equity in millions of EUR unless otherwise stated
	March 31, 2015			March 31, 2016
Long-term debt		4,118			3,984
Short-term debt		1,667			1,705
Total debt		5,785			5,689
Cash and cash equivalents		1,667			1,385
Net debt (total debt less cash and cash equivalents)		4,118			4,304
Shareholders’ equity		11,382			11,279
Non-controlling interests		114			130
Group equity		11,496			11,409
Net debt and group equity		15,614			15,713
Net debt divided by net debt and equity (in %)		26	%		27	%
Equity divided by net debt and equity (in %)		74	%		73	%

18        Quarterly report Q1 2016

Philips statistics

in millions of EUR unless otherwise stated

	2015												2016
	Q1			Q2			Q3			Q4			Q1			Q2	Q3	Q4
Sales		5,339			5,974			5,836			7,095			5,517
comparable sales growth %		2	%		3	%		2	%		2	%		3	%
Gross margin		2,116			2,495			2,422			2,823			2,266
as a % of sales		39.6	%		41.8	%		41.5	%		39.8	%		41.1	%
Selling expenses		(1,341	)		(1,440	)		(1,390	)		(1,644	)		(1,418	)
as a % of sales		(25.1	)%		(24.1	)%		(23.8	)%		(23.2	)%		(25.7	)%
G&A expenses		(214	)		(224	)		(241	)		(530	)		(189	)
as a % of sales		(4.0	)%		(3.7	)%		(4.1	)%		(7.5	)%		(3.4	)%
R&D expenses		(436	)		(483	)		(471	)		(537	)		(470	)
as a % of sales		(8.2	)%		(8.1	)%		(8.1	)%		(7.6	)%		(8.5	)%
EBIT		139			349			342			162			199
as a % of sales		2.6	%		5.8	%		5.9	%		2.3	%		3.6	%
EBITA		230			450			429			263			290
as a % of sales		4.3	%		7.5	%		7.4	%		3.7	%		5.3	%
Net income (loss)		100			274			324			(39	)		37
Net income (loss) attributable to shareholders		99			272			319			(45	)		32
Net income (loss) - shareholders per common share in EUR - diluted		0.11			0.30			0.34			(0.05	)		0.03

	2015												2016
	January-			January-			January-			January-			January-			January-	January-	January-
	March			June			September			December			March			June	September	December
Sales		5,339			11,313			17,149			24,244			5,517
comparable sales growth %		2	%		3	%		2	%		2	%		3	%
Gross margin		2,116			4,611			7,033			9,856			2,266
as a % of sales		39.6	%		40.8	%		41.0	%		40.7	%		41.1	%
Selling expenses		(1,341	)		(2,781	)		(4,171	)		(5,815	)		(1,418	)
as a % of sales		(25.1	)%		(24.6	)%		(24.3	)%		(24.0	)%		(25.7	)%
G&A expenses		(214	)		(438	)		(679	)		(1,209	)		(189	)
as a % of sales		(4.0	)%		(3.9	)%		(4.0	)%		(5.0	)%		(3.4	)%
R&D expenses		(436	)		(919	)		(1,390	)		(1,927	)		(470	)
as a % sales		(8.2	)%		(8.1	)%		(8.1	)%		(7.9	)%		(8.5	)%
EBIT		139			488			830			992			199
as a % of sales		2.6	%		4.3	%		4.8	%		4.1	%		3.6	%
EBITA		230			680			1,109			1,372			290
as a % of sales		4.3	%		6.0	%		6.5	%		5.7	%		5.3	%
Net income		100			374			698			659			37
Net income attributable to shareholders		99			371			690			645			32
Net income - shareholders per common share in EUR - diluted		0.11			0.40			0.75			0.70			0.03
Net income from continuing operations as a % of shareholders’ equity		2.4	%		5.3	%		6.5	%		3.6	%		0.5	%
Number of common shares outstanding (after deduction of treasury shares) at the end of period (in thousands)		910,616			925,277			921,181			917,104			913,011
Shareholders’ equity per common share in EUR		12.50			12.32			12.43			12.72			12.35
Inventories as a % of sales 1,2)		17.3	%		17.0	%		16.8	%		14.2	%		14.7	%
Net debt : equity ratio		26:74			28:72			28:72			25:75			27:73
Net operating capital		10,977			11,397			11,427			11,096			11,118
Total employees		115,970			114,606			114,380			112,959			114,021
of which discontinued operations		8,334			8,689			8,812			8,755			8,913
of which third-party workers		13,930			13,796			13,337			12,188			12,250

¹⁾  Sales is calculated over the preceding 12 months

²⁾ Inventories as a % of sales excludes inventories and sales related to acquisitions, divestments and discontinued operations

Quarterly report Q1 2016        19

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