Philips Lighting Simply enhancing life with light

Our Mission
Improving peoples lives through meaningful innovation .

Our Vision
At Philips, we strive to make the world healthier and more sustainable through innovation. Our goal is to improve the lives of 3 billion people a year by 2025. We will be the best place to work for people who share our passion. Together, we will deliver superior value for our customers and shareholders.

Enabling health and well-being

Where we live, work and play

Philips Healthcare

Philips Lighting
Philips Consumer Lifestyle
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Our focus
Organized around the people we serve

Philips Lighting Customer Segments1

Homes Offices Outdoor Industry Retail Hospitality Entertainment Healthcare Automotive

23%

17%

15%

9%

15%

5%

3%

4%

9%

7.6
Billion sales in 2011
1

53,000+
People employed worldwide in 60 countries

5%
of sales invested in R&D in 2011

80,000+
Products & services offered in 2011
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Indicative split

Our focus
Capitalizing on market opportunities

Philips Lighting

Customer Segments
Homes Offices Outdoor Industry Retail Hospitality Entertainment Healthcare Automotive

Potential market by 2015*

33-34B
* Approximate

10-11B

9-10B

7-8B

8-9B

5-6B

1-2B

2-3B

2-3B

Our focus
The Philips Lighting spectrum

Philips Lighting

Our Lighting Spectrum

Lamps / lighting systems & controls Packaged LEDs Professional luminaires Consumer luminaires Automotive

Sales Revenue 2011

54%
* Approximate

5%

27%

6%

8%

Depth and reach of Philips Lighting

Creating value around the globe

Philips Lighting

Geographies
EMEA North America Latin America Asia-Pacific

Growth Geographies
Mature Geographies Q4 2011 Growth Geographies Q4 2011

Distribution percentage 2011*

36%
* Approximate

27%

4%

33%

59%

41%

The LED revolution

Digital lighting is transforming the entire landscape*

Traditional lighting LED lighting

*Source: Philips Lighting global market study 2009, updated for 2010

Oliveira Bridge, Sao Paulo, Brazil

Our leadership
Why we are the leading brand in lighting

Philips Lighting

Date
Global scale
Positioned to serve global customers in over 180 countries with local expertise

Go-to-market
Strength with endusers, trade, specifiers and installers Dedicated Key Account Management with strong track record

Innovation
Deep application knowledge, strong IP and technical competence. Vertical integration in LED and global LED platforms

Design
With lighting design experts , we work closely to create optimum use of light for multiple purposes

Sustainability
Striving to improve the health and well-being of individuals and the communities they livein

Our leadership
Solidifying our presence across customer segments over time

Teletrol (2009) TIR (2007) Amplex (2010)

ColorKinetics (2007) Lumileds (1999)

PLI (2006) Ilti Luce (2009) Luceplan (2010) NCW (2010)

Genlyte (2008)

Optimum (2011) Bodine (2006)

Indal (2011)

Burton (2010)

Dynalite (2009) LTI (2008) LTI (2008)

Selecon (2009)

Acquisitions in professional segment Acquisitions in the consumer segment

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Our leadership
A strategy to maintain leadership in conventional lighting and win in LEDs and applications
Global General Illumination1 market
EUR billion 90-100

1
Win golden tail in conventional lamp and drivers

Create flexibility to anticipate slower or faster phase out

3
2
Leverage growth opportunity in LED lamps and modules

1
2011
LED luminaires and controls Conventional luminaires

2
3
2015 2020
LED lamps and modules Conventional lamps and drivers

Invest in LED luminaires and controls to secure future leadership

Excluding Automotive Lighting and LED components market Source: Philips Lighting global market study 2010, updated for 2011

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Our leadership
Unparalleled expertise, depth and reach

The Lighting value chain

LED components Modules/bulbs Luminaires Controls / solutions

Philips Lighting
Electronics / LED chip players LED bulbs / modules players LED luminaires players Lighting / building control players

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We are the leading LED lighting company

Strong positions in LED lighting LED licensing program with over 140 licensees is clear testimony of our LED innovation leadership

Robust growth across our LED portfolio Last 12 months sales, EUR billion

One of the leading lighting packaged LEDs players worldwide LED lamps market share exceeds our share in conventional lamps Largest LED luminaires company

CAGR +49%

1.2

1.0

0.6

Q4 09

Q4 10

Q4 11
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The world needs meaningful innovations to respond to todays global changes

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The only constant is change

And it impacts the way we think, act and react

Environmental awareness
Energy-efficient lighting can realistically deliver savings of 40%+ globally.

We are increasingly urban and global

50% of the worlds population lives in cities. This is expected to rise to 75% by 2050.

Our lifestyles are changing

People are spending more time relaxing, entertaining and socializing at home.

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The lighting industry is undergoing a remarkable transformation

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The future is brighter than ever

Unleashing new possibilities with LED

Corporativo World Plaza, Mexico City

Lighting design: Luis Lozoya, Light+Form Architect: Michael Edmonds, John Grimshaw

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New innovations are radically transforming the way we consume energy

Guillotire bridge, Lyon, France

Client: City of Lyon

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Unique, fully integrated lighting solutions enable and enhance our lives
Expo Zaragoza, Spain

Lighting design: Antn Amn, ALS Lighting, Architect: Zaha Hadid and Patrik Schumacher

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Identity and expression can be explored in entirely new ways with light

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The future is in lighting solutions

Lighting reaches into new, exciting and uncharted territories

Suzhou Science and Culture Art Center, Suzhou, China

Lighting design: Peipei Jin Architect: East China Architectural Design & Research Institute

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Bringing a unique and powerful approach to working with you

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"Light is yoga (meditation that cleanses the mind). Light is art - the only true passage way to highlight the beauty of the world. Light is beauty - without it the world would be dark and dreary.

Light is holding hands on a first date.

What light means to people

"Light is the truth, security, life and happiness. "Light is the oxygen for our eyes." "Light is the smile on my daughter's face.

"Light is a source of energy and comfort.

"Light is a kiss from the Sun." "Light makes life work.

"Light is sight and color and vibrancy. Light gives us the ability to see, and its brightness adds life to the colors and things we see.

"Light is like a little ray of hope.

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Simply enhancing life with light

The Philips Lighting difference

People focused

Partners in innovation

Meaningful solutions

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The Philips Lighting difference

People focused
We begin by observing and listening to people to ensure that we address their needs and aspirations in life.

I need to be more efficient I want to feel safe I need to feel better I want to create a fully integrated system I want to inspire

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United by our passion

Our 53,000 people share a passion and expertise to lighting and improve Lighting experiences around the world. Its just one way that we are people focused.
EU09.1216, September 18, 2009

Confidential

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The Philips Lighting difference

Partners in innovation
Great partnerships encourage great results. With our collective passion, expertise, depth and reach, we open up new possibilities powered by advanced technology.

I need to plan ahead I need to renovate

I need to economize I need to perform I need to make a smart purchase

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The Philips Lighting difference

Meaningful solutions
Together we create meaningful and valuable solutions that enhance the quality, use and experience of light.

Adding value Aiding healing Fostering security Enhancing learning Supporting productivity Creating identity Ensuring safety
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Outdoor
Enriching the city experience to make it safer and more enjoyable

People focused
People want to feel safe and comfortable on the street; lighting can enhance that experience in urban environments Sports fans want to see all the action on the field; lighting can bring sports to life Animal wildlife habitats need to be protected

Partners in innovation
Co-development of lighting with cities, municipalities and utility companies Global partner of the relevant bodies in professional lighting design, city networks and sports federations

Meaningful solutions
Energy-saving and CO2emission targets are met thanks to our latest innovations Assure operation through measurement and verification of energy consumption 29 More open public spaces are now being created by street lighting without poles
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Office
Beautify and distinguish, while improving productivity and energy efficiency

People focused
Green offices arent just healthier for us and our planet, they make for better business too Radiate positive corporate image to customers and employees When people feel better, they work better; lighting can enhance employee well-being and productivity

Partners in innovation
Provide support to architects, specifiers and lighting designers with codevelopment programs Global partner for multinationals, governments, schools and real estate developers to choose the right light

Meaningful solutions
Energy-saving and CO2emission targets are met thanks to our latest innovations Lighting solutions that reflect the corporate image by design and light effects Systems that create a pleasant and productive work environment
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Retail
Enabling a distinctive shopping experience and increasing store productivity

People focused
Create inspiring shopping experiences that delight shoppers Design solutions to help shoppers find what they want Enable the management of scarce resources efficiently: feel assured

Partners in innovation
Initiate co-development programs with retailer brands and their creative specifiers Founder and driver of the retail industry platform, teaming up with companies that innovate within retail stores Global partnerships with other stakeholders of the retail ecosystem (e.g. HVAC)

Meaningful solutions
Shopper loyalty and consumer productivity increase with our latest innovations, where merchandise is highlighted like a star and retail brands stand out Operational improvement is realized through energy-efficient products and control systems
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Healthcare
Improving patient well-being and staff productivity

People focused
Humanize the healthcare experience to reduce anxiety Create a pleasant healing ambience throughout the facility People-centric lighting design with well-being concepts

Partners in innovation
Leverage capabilities and knowledge from our healthcare sector Work together with hospitals and healing environment specialists Leverage relationships with (creative) specifiers and contractors

Meaningful solutions
Patient-room lighting that supports feeling better and healing faster Dynamic lighting that mimics daylight to improve medical staff performance Ambient lighting in imaging rooms to calm and comfort patients
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Entertainment
Enabling creativity and expression through light and control

People focused
Lighting designers use light to reveal what their audience sees, regardless of the medium a live event, film or television Create tools that allow designers to express themselves easily and dynamically Audiences react to light emotionally as it gives them a sense of time and place

Partners in innovation
Working relationships with lighting designers and cinematographers result in new tools they use each day

Meaningful solutions
The latest in entertainment lighting solutions, using a wide range of light sources including the most advanced LED sources Easy-to-program controls that are energy-efficient and that allow designers to create dynamic spaces in less time with a shorter learning curve
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Automotive
Making vehicles safer, environmentally friendly and more stylish

People focused
Enhance road safety for car drivers Protect the environment and serve consumer interests by reducing fuel consumption, CO2 emissions and environmental waste Contribute to peoples selfexpression by delivering elegant lighting solutions

Partners in innovation
Co-develop programs with set and car makers Partner with the relevant bodies for vehicle lighting, road safety and energy saving on national and supra-national level

Meaningful solutions
Maximum safety for all road users: Philips LED Daytime running light, Xenon inventor Highest fuel saving and reduction of CO2 emissions: Philips EcoVision and Hypervision 34 Elegant car lighting: Philips LED Daytime running light, Philips Blue Vision Ultra
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Hospitality
Promoting guest comfort and building brand differentiation

People focused
Enhance well-being and guest experiences Contribute to a greener environment and serve the customers sustainability objectives

Partners in innovation
Partner with the relevant bodies for green tourism certification and legislation Co-develop with value-added partners (e.g. blinds, energy management) Close cooperation and exchange with creative specifiers

Meaningful solutions
Rising guest expectations with regard to well-being and sustainability are met by dedicated lighting solutions Realize brand differentiation through innovative lighting solutions customized for our clients

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Industry
Reducing environmental impact, increase quality and productivity

People focused
Green factories are healthier for us and our planet The right level of task lighting reduces eye strain Lighting ensures safety for people and processes

Partners in innovation
Provide support to factory engineers, architects and lighting designers with co-development programs Global partner for multinationals, logistics companies and process industry to choose the right light

Meaningful solutions
Energy-saving and CO2emission targets are met thanks to our latest innovations Lighting systems that create a pleasant and productive work environment Solutions that provide a safe place to work
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Homes
Helping people to express who they are and how they want to feel at home

People focused
Offer people the opportunity to create the desired atmosphere easily at home Help people to express their style and who they are Help consumers to find the lighting solution they are looking for Help people to be their best at home, whether cooking, reading, etc

Partners in innovation
Work closely with customers to create the optimal shopper experience, e.g. for Leroy Merlin, a French worldwide home-improvement and gardening retailer Work with retailers in setting up 150 Philips brand stores in Asia

Meaningful solutions
Experiment with light to create the atmosphere consumers want to suit their mood or the occasion: Philips LivingAmbiance Save energy and the environment: Philips Ecomoods, Philips Ledino, LED bulbs Express identity with both beautiful regional and global designs: Hope (Luceplan) Functional lighting that creates the best lighting performance
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We believe light is potential. Light is possibility. And we are bringing those possibilities to life.

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Simply enhancing life with light

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
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