Page 2 on Organizational policies in relation to modern slavery and human trafficking"

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"Organizational policies in relation to modern slavery and human trafficking Philips’ respect for human rights is expressed in our Human Rights Policy, supported by our General Business Principles (GBP}, and supported by several other domain-specific policies. In 2018, Philips launched a new program to identify potential and actual human rights impacts throughout our operations and value chain. We have listed our human rights areas of severe impact, based on our understanding of emerging issues, risks that are common in our sector, and experience from other industries. Furthermore, we have engaged our relevant functions and obtained relevant inputs from external stakeholders. Freedom from child-, forced-, and bonded labor were identified as focus areas, while recognizing it might take different forms in different contexts, geographies, and section of our value chain. Therefore, Philips policies and due diligence efforts are tailored accordingly and will be detailed below."

"Our Fair Employment Policy explicitly acknowledges that all work must be voluntary. Employees receive a written document that details terms and conditions of employment. This document is in a language accessible to them and is provided prior to beginning work at Philips. Unless required by local law, Philips employees shall not be required to deposit original government-issued identification, passports or work permits as a condition of employment. Likewise, (prospective) employees will not bear any fees or other unreasonable related costs for their recruitment or employment. If any such fees are found to have been paid by an employee, such fees shall be repaid to the employee."

"We do not make use of forced, bonded and child labor.

We recognize and respect the freedom of our employees to associate with any employee organization of their own choosing under local law without fear of reprisal, intimidation or harassment. Where employees are represented by a legally recognized union, we establish a constructive dialogue and engage in negotiations or consultation as required with their freely chosen representatives.

We aim to maintain a healthy, safe and productive work environment."

"Philips engages in verification activities to identify, assess and manage the risks of modern slavery and human trafficking in its product supply chain in order to focus our efforts where we can have the highest impact. Philips is a member of the Responsible Business Alliance (RBA), a non-profit coalition of electronics companies committed to: (1) supporting the rights and well-being of workers and communities engaged in the global electronics supply chain, and (2) environmental and social responsibility. Philips adopted the RBA Code of Conduct and included the requirements of the code as part of our supplier contracts within the Philips Supplier Sustainability Declaration (Declaration). Philips suppliers must adhere to the Declaration and deploy it to their suppliers. The full version of the Declaration is available here. Philips monitors compliance with the Declaration through its Supplier Sustainability Performance (SSP) program."

"Certification

Philips suppliers certify conformance to the RBA requirements embedded within the Philips Supplier Sustainability Declaration (Declaration), which is part of the Philips supplier contracts. The Declaration is based on the Responsible Business Alliance {RBA) Code of Conduct, in alignment with the UN Guiding Principles on Business and Human Rights and key international human rights standards, including the ILO Declaration on Fundamental Principles and Rights at Work and the UN Universal Declaration of Human Rights, It covers topics such as Labor, Health & Safety, Environment, Ethics, and Management Systems."

"Foreign migrant workers must receive the employment agreement prior to the worker departing from his or her country of origin and there shall be no substitution or change(s} allowed in the employment agreement upon arrival in the receiving country unless these changes are made to meet iocal law and provide equal or better terms."