Energy Efficient Lighting Solutions LED s get started

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Sr. Director Energy & Climate Change – Philips Lighting

NordLED 2010 – Copenhagen, November 11 2010

Energy Efficient Lighting Solutions – LED‟s

get started

A Triple Win for Endusers, Environment and Economy

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Enabling health and well-being

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Global trends and relevance

Governments are tightening regulation

Population rise & Urbanization

Environmental awareness

Cities want to establish identity

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Energy Efficiency through Lighting

• Rising Energy prices • Climate Change

• Security of Energy Supply • Economic Growth

Energy Efficient

Lighting Solutions

Four drivers for action

Our value proposition

19%

81%

Lighting Other electricity use

• Global: 19% of all electricity

9 Potential savings 40%

Europe Global Electricity cost/yr (Bio €) ₂₈ ₁₂₈ CO₂emissions/yr (Mio tons) ₉₈ ₆₇₀ Power plants (at 2TWh/yr) ₁₄₁ ₆₄₂ Cars (Mio at 10k mile/yr) ₃₈ ₂₆₀

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Shaping the Lighting (R)Evolution

Lighting is evolving beyond offering products

Energy Infrastructure in Buildings & Cities Energy Efficient Solutions Phasing-out of in-efficient products Leading EE lighting Solutions Offering Lighting Products

Integrating in Resource Efficient Eco-systems

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What might it cost?

EE Lighting one of the most attractive ways to cut cost & save energy

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• End-users:

lower costs,

better quality light

• Environment:

lower energy usage,

lower emissions

• Economy:

lower costs,

greater competitiveness,

green jobs

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Legislation global phase-out incandescent lamps

[Approved CAN] 2012-2014

[ApprovedUSA] 2012-2014 [Approved California &

Nevada] 2011-2013 [Approved AUS] 2008-2010 [Announced Russia] 2011-2014 [Approved CU] 2005 [Approved CO] 2011 [Approved AR] 2011 [Announced Br] 2013 [Approved NZ] 2009-2011 [Announced TUR] 2009-2012 [Announced JP] 2012 [Announced TW] 2008 - 2012 [Announced Phi] 2010 - 2012 [Announced Sri L] 2008 - 2010

Residential lighting represents 25% of lighting electricity consumption

[Approved EU27] 2009-2012

[Announced KO] 2013

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MASTER LED 7-50W GU10

dimmable

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Philips extensive LED lamps portfolio

MASTER LED PAR 30 PAR 38 11-75W 16-80W

spots /

reflectors

bulbs

candle & lustre

€10

€20

€30

€40

AccentColo r AccentWhite AccentColor Novallure Lustre 2-10W MR16 4-20W

Econic Perfect Fit GU10 3-35W MASTER LED

Perfect Fit GU10 3-35W MASTER GLOW 8-40W dimmable MASTER LED 7-35W GU10 dimmable MASTER LED NR 63 7-50W

dimmable _{MASTER LED} 6-25W dimmable

performance

decorative

Econic bulb 5-25W MASTER LED spot

PAR 20 7-50W MR16 7-35W MR16 10-50W* MR11 3W MASTER GLOW 12-60W dimmable Novallure Candle 2-10W Novallure Lustre 3-15W dimmable Novallure Candle 3-15W dimmable AccentWhit e MASTER LED

Perfect Fit GU10 3-35W

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Philips award winning product designs

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Philips is leading in Innovation

Time magazine - The 50 Best Inventions of 2009

• 10W LED (25,000 hours)

replacement for 60W light bulbs => 50% of domestic incandescent

market

• Electricity savings enough to light 17.4 million Households

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Cities are responsible for 75% of global total energy consumption

Public and commercial buildings represent 60% of lighting electricity consumption Street lighting 15% of lighting electricity consumption

Cities and buildings

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Renovation is vital!

Energy efficient lighting in

new buildings is not enough

• 80% of lighting in buildings

is old technology

• Only 1% uses lighting controls:

presence detection,

daylight controls

99% of opportunities

are in existing buildings

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Philips supports renovation

Assessment tools &

methodologies

• Energy assessment by Philips staff • Certified ESCO audit

Products & system solutions

• Lighting design • Product portfolio

• Installation; maintenance

Financial packages

• Financing

• Utility rebate assessment • Tax documentation

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Education - Lighting for learning

“At first, I was skeptical, but now I can

teach my classes more successfully. The students are much

more focused and less distracted.”

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Michaela Schwindt, Teacher

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Marriott Custom House Tower - Boston, USA

Requirements for lighting:

• Restore night time image of landmark building

• Maximize energy efficiency while minimizing maintenance

Solution:

• 125 LED luminaires Philips Color Kinetics eW Blast Powercore and eW Graze

Powercore

• Metal halide fixtures from Philips Lightolier

Energy savings of 67%

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Lighting requirements:

• Promote the centre‟s public image • Create an entertaining shopping

experience

Solution:

• eW Cover Powercore (White) • iColor Cove QL (RGB)

• LED City Wing

85% reduction in energy consumption

Bullring centre, Birmingham, UK

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• Reduce energy costs

• Good quality lighting positively influencing shoppers‟

buying decisions

• Uniform lighting in line with brand values and company image

Solution:

• Affinium LED Freezer Modules

Energy savings 75%

( >1 ton CO₂ / year / freezer)

Sainsbury‟s Supermarkets - United Kingdom

Freezer lighting in 350 UK stores

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• Improve users‟ well-being • Innovative design

• Reduce operating costs

Solution:

• 422 recessed LED luminaires • Spot LED 1x K2

• Spot LED 3x K2

World’s 1st _{building lit}

entirely by LED

Generali office building, Champs Elysées, Paris

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PEDESTRIAN AREAS

Pedestrians streets, paths, cyclepaths

Residential streets Mixed traffic, commercial streets

in urban areas

Rural roads Motorized traffic roads in urban areas

Motorways, Highways, Express ways, ringroads STREETS ROADS < 45/50 W > 45/50 W <150W < 250 W > 250 W 2009 2010

Outdoor LED application coverage

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Outdoor Lighting

Putting light to work when and where it makes sense

The LED-Inroad in Outdoor goes at a tremendous speed. The crisis year 2009 cleary was the tipping point globally. LED-systems are now being applied on a large scale driven by its innovative character, its energy

saving potential, the political and

legislative pressure and governmental stimulus programs.

The

serviceable LedGine

is

an upgradable light engine combined with the Philips LED Green service program. It offers the best balance between initial investment and energy savings over the lifespan of your

installation.

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Project examples - all LED-based

Projects realized together with cities: •Madrid •Rotterdam •Berlin •Frankfurt •Tilburg •Brussels •Rome •Marseille •Firenze •Lille •Lyon •Copenhagen •Valladolid •Granada •Murcia •London •Grenoble •Bilbao •Zaragoza •Other…

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Including a payment solution in the customer offering

enables the customer to spread the investment costs in time

Eventually, it boils down to the following 2 propositions:

- New lighting without additional costs

this applies to those cases where the monthly energy savings are equal or in excess of the monthly project payments

- Buy now and pay in installments

acquiring the lighting project does not immediately dig a large hole in the budget, but by spreading the payment over a number of years, the budget impact is softened

Available Financing Solutions

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Lighting Financing

Customer benefits

A payment program enables the customer to:

• gain access to new or latest product solutions

• overcome budget

or

cash-flow constraints



no or minimal upfront investment



payments for products & installation is

“financed” by energy savings

• realize one total solution using one single

contact

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Lighting financing

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The Payment Program

Current Lighting Philips Light Lease

50W Halogen MASTER LEDspot 7W

Number of lighting points 100 100

Monthly Energy Savings 90% = € 235

Monthly all-in Payment (in the first two years)

€ 142

Net Monthly Savings

(in the first two years) € 93

Monthly Saving (after year 2) € 235

Lighting financing

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LED Lighting for Buildings and Cities

Better experiences. Better lives.

Dedication to preservation. Doing more.

Helping people use less.

Energy efficiency

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Together we transform

environments, create experiences

and shape identities

With light…

we uplift and inspire

we comfort and heal

we create safety and spectacle

Philips Lighting

Simply enhancing

life with light

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• Lighting (EE / LED) can play a big role in sustainable development

The time to act is now

• Key Success Factors – Communication

• Highlighting the benefits

– Implementation

• From „best practice’ to „common practice’

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