a global company of leading businesses creating value sustainable

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Indranil Goswami Director – Lighting Application Services Sustainable lighting solutions Indranil Goswami: Lighting Application Services – Philips Lighting A global company of leading businesses creating value with meaningful innovations that improve people’s health and well-being Indranil Goswami: Lighting Application Services – Philips Lighting Enabling health and well-being Where we live, work and play Indranil Goswami: Lighting Application Services – Philips Lighting EcoVision5 A holistic approach to Sustainability to seed mid- and long-term value creation (2015) Ecological footprint (Green Innovation) Health & well-being (Social Innovation) Strategic Focus: Sustainable health & well- being space 2 2 Lead by Healthcare 1 3 Lead by Consumer Lifestyle 3 3 2 Lead by Lighting 1 1 • Philips will bring care to more than 500 million people • Philips will improve the energy efficiency of its overall portfolio by 50% • Philips will double the global collection and recycling amounts of our products, as well as double the amount of recycled materials in our products

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Indranil Goswami

Director – Lighting Application Services

Sustainable lighting solutions

Indranil Goswami: Lighting Application Services – Philips Lighting

A global company of leading

businesses creating value

with meaningful innovations

that improve people’s health

and well-being

Indranil Goswami: Lighting Application Services – Philips Lighting

Enabling health and well-beingWhere we live, work and play

Indranil Goswami: Lighting Application Services – Philips Lighting

EcoVision5 A holistic approach to Sustainability to seed mid- and long-term value creation (2015)

Ecological footprint

(Green Innovation)

Health & well-being (Social Innovation)

Strategic Focus:

Sustainable

health & well-

being space

2 2

Lead by Healthcare1 3 Lead by Consumer Lifestyle

3

3

2 Lead by Lighting

1

1 • Philips will bring care to more than 500 million

people

• Philips will improve the energy efficiency of its

overall portfolio by 50%

• Philips will double the global collection and

recycling amounts of our products, as well as

double the amount of recycled materials in our

products

Indranil Goswami: Lighting Application Services – Philips Lighting

Sustainability in lightingLighting 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 Energy

Eco-systems

Indranil Goswami: Lighting Application Services – Philips Lighting

Energy Efficiency in Lighting

• Rising energy prices

• Security of Supply

• Economic Growth

• Climate change / Kyoto / Copenhagen

Energy Efficient

Lighting Solutions

Four drivers for action

19%

81%

Lighting Other electricity use

• Global: 19% of all electricity

Potential savings 40%

APR Global

Electricity cost/yr (Bio €) 33 120

CO2 emissions/yr (Mio tons) 216 630

Barrels of oil eq/year (Mio) 486 1800

Power plants (at 2TWh/yr) 162 600

Indranil Goswami: Lighting Application Services – Philips Lighting

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 BuildingsThe opportunity

Indranil Goswami: Lighting Application Services – Philips Lighting

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

Indranil Goswami: Lighting Application Services – Philips Lighting

The power of a solutions approach

60-70% savings feasible on lighting

consumption in offices, schools,

hospitals, ….

Indranil Goswami: Lighting Application Services – Philips Lighting

Living energy efficient buildingsProofpoints

HSBC Center

Hong Kong

The Venetian

Macao, China

- 52 %energy

- 85 %energy

Bullring Center

Birmingham

- 85 %energy

Rundbau Gerling Konzern

Cologne

- 70 %energy

Indranil Goswami: Lighting Application Services – Philips Lighting

Lamp efficacy = 96 lm/W

Ballast loss = 4W/lamp

ULOR = 0

DLOR = 0.820

TLOR = 0.820

Ceiling reflectance = 0.5

Wall reflectance = 0.3

Floor reflectance = 0.1

Lamp efficacy = 96 lm/W

Ballast loss = 4W/lamp

ULOR = 0.322

DLOR = 0.548

TLOR = 0.870

Ceiling reflectance = 0.5

Wall reflectance = 0.3

Floor reflectance = 0.1

Lamp efficacy = 96 lm/W

Ballast loss = 4W/lamp

ULOR = 0.540

DLOR = 0

TLOR = 0.540

Ceiling reflectance = 0.5

Wall reflectance = 0.3

Floor reflectance = 0.1

Lamp efficacy = 96 lm/W

Ballast loss = 4W/lamp

ULOR = 0.322

DLOR = 0.548

TLOR = 0.870

DLORTASK = 0.891

Ceiling reflectance = 0.5Wall reflectance = 0.3

Floor reflectance = 0.1

The power of a solutions approachOpportunity with efficient lighting design

0.57

LPD

1.54

LPD

0.61

LPD

0.48

LPD

1

2

3

4

Indranil Goswami: Lighting Application Services – Philips LightingN

No. of fixtures 42

Load per fixture 64W

Total Load 2.7kW

The power of a solutions approachOpportunity with lighting controls

08-12 12-16 16-20 20-22 22-00 00-04 04-08

TIME

Indranil Goswami: Lighting Application Services – Philips LightingN

08-12 12-16 16-20 20-22 22-00 00-04 04-08

TIME

No. of fixtures 42

Load per fixture 64W

Total Load 2.7kW

43

kWhUsage in this

period

The power of a solutions approachOpportunity with lighting controls

Indranil Goswami: Lighting Application Services – Philips LightingN

08-12 12-16 16-20 20-22 22-00 00-04 04-08

TIME

No. of fixtures 42

Load per fixture 64W

Total Load 2.7kW

10.2

kWhUsage in this

period

The power of a solutions approachOpportunity with lighting controls

Indranil Goswami: Lighting Application Services – Philips LightingN

8.4

kWhUsage in this

period

08-12 12-16 16-20 20-22 22-00 00-04 04-08

TIME

-Dimming

-Presence detection

-Daylight saving

The power of a solutions approachOpportunity with lighting controls

Indranil Goswami: Lighting Application Services – Philips LightingN

8.1

kWhUsage in this

period

08-12 12-16 16-20 20-22 22-00 00-04 04-08

TIME

-Dimming

-Presence detection

-Daylight saving

The power of a solutions approachOpportunity with lighting controls

Indranil Goswami: Lighting Application Services – Philips LightingN

10.7

kWhUsage in this

period

08-12 12-16 16-20 20-22 22-00 00-04 04-08

TIME

-Dimming

-Presence detection

-Daylight saving

The power of a solutions approachOpportunity with lighting controls

Indranil Goswami: Lighting Application Services – Philips LightingN

4.0

kWhUsage in this

period

08-12 12-16 16-20 20-22 22-00 00-04 04-08

TIME

-Dimming

-Presence detection

-Daylight saving

The power of a solutions approachOpportunity with lighting controls

Indranil Goswami: Lighting Application Services – Philips LightingN

2.7

kWhUsage in this

period

08-12 12-16 16-20 20-22 22-00 00-04 04-08

TIME

-Dimming

-Presence detection

-Daylight saving

The power of a solutions approachOpportunity with lighting controls

Indranil Goswami: Lighting Application Services – Philips LightingN

2.6

kWhUsage in this

period

08-12 12-16 16-20 20-22 22-00 00-04 04-08

TIME

-Dimming

-Presence detection

-Daylight saving

The power of a solutions approachOpportunity with lighting controls

Indranil Goswami: Lighting Application Services – Philips LightingN

0.3

kWhUsage in this

period

08-12 12-16 16-20 20-22 22-00 00-04 04-08

TIME

-Dimming

-Presence detection

-Daylight saving

The power of a solutions approachOpportunity with lighting controls

Indranil Goswami: Lighting Application Services – Philips Lighting

08-12 12-16 16-20 20-22 22-00 00-04 04-08

TIME

08-12 12-16 16-20 20-22 22-00 00-04 04-08

TIME

08-12 12-16 16-20 20-22 22-00 00-04 04-08

TIME

08-12 12-16 16-20 20-22 22-00 00-04 04-08

TIME

08-12 12-16 16-20 20-22 22-00 00-04 04-08

TIME

08-12 12-16 16-20 20-22 22-00 00-04 04-08

TIME

08-12 12-16 16-20 20-22 22-00 00-04 04-08

TIME

08-12 12-16 16-20 20-22 22-00 00-04 04-08

TIME

08-12 12-16 16-20 20-22 22-00 00-04 04-08

TIME

53.2

kWh

36.8

kWh

31%

Energy saving

The power of a solutions approachOpportunity with lighting controls

Indranil Goswami: Lighting Application Services – Philips Lighting

Total life cycle impact of lightingUp to 95% during the user phase

Indranil Goswami: Lighting Application Services – Philips Lighting

EcoDesign

Life Cycle approach

Philips Green Focal Areas

Benchmarking

Indranil Goswami: Lighting Application Services – Philips Lighting

EcoDesign

Life Cycle approach

Philips Green Focal Areas

Benchmarking

� Compared to commercially competing

products in the market with same

functionality.

� Compared to Philips predecessor

(product or dominant technology)

� Compared to other products in family

Indranil Goswami: Lighting Application Services – Philips Lighting

EcoDesign

Life Cycle approach

Philips Green Focal Areas

Benchmarking

Energy Efficiency

�10% less energy usage

�(e.g. efficacy, LOR or total power consumption)

Packaging

> 10% less packaging in volume or weight

Hazardous Substance

>10% less weight of one of the substances of the

restricted and relevant substance list

>10% radiation dose reduction

Weight

>10 % less product weight (incl. accessories),

measured in Kg.

Recycling and Disposal

>10% higher content of material that can be

recycled;

Product that contains > 30% recycled material

Lifetime Reliability

> 10% life time improvement

One or more of our GFAs must be significantly

better resulting in a lower total environmental

impact.

Indranil Goswami: Lighting Application Services – Philips Lighting

EcoDesign

Life Cycle approach

Philips Green Focal Areas

Benchmarking

• One or more of our GFAs must be

significantly better resulting in a

lower total environmental impact.

• A potential Green product needs to be

evaluated on at least-

• energy,

• hazardous substance

• weight.

• A green product needs to fulfill at

either criterion below-

• 10% better in energy

consumption,

And/or

• 10% better in hazardous

substances

Indranil Goswami: Lighting Application Services – Philips Lighting

GLS T2 Twister EnduraLEDWarm White

Technology Incandescent Compact

Fluorescent

LUXEON rebel

LED

Other commercial

Names

Master LEDbulb

MV (220V)

Wattage [W] 60 14 12

Lumen [lm] 890 800 806

Efficacy [lm/W] 14,8 57,1 67,16

lamp [gram] 24,3 95,0 179,0

box [gram] 14,5 15,8 46,0

Lifetime [hr] 1 000 8 000 25 000

Production Mexico PRC PRC

Life Cycle Analysis of 3 competing technologies

Incandescent

CFL

LED

Indranil Goswami: Lighting Application Services – Philips Lighting

Comparison basisNumber of lamps needed for 25k hr of usage

Twister T2 14W (8k hr)

EnduraLED 12W (25k hr)

Incandescent 60W (1k hr)

Life Cycle Analysis of 3 competing technologies

Indranil Goswami: Lighting Application Services – Philips Lighting

LED is best option on environmentUser phase is the dominant characteristic

60W

14W

12W

• EI = Eco Indicator

• mPt = millipoint, a relative holistic indicator for environmental impact / consumption (an average European uses 1000 mPt per year)

Life Cycle Analysis of 3 competing technologies

Incandescent

CFL

LED

Indranil Goswami: Lighting Application Services – Philips Lighting

Carbon footprint of the LED option is lowest

REMARKS:

Method: IPCC GWP 100a

Reference year = 2009

95,6 113,4 121,1 119,9 314,0 596,5Total

• CO2-equivalent = for how much CO2 emission is this product responsible (for a certain quantity of light over a certain time)

• IPCC = Inter Governmental Panel on Climate Change• GWP = Global warming potential• 100a = assuming that the greenhouse gases stay in the atmosphere on average 100 years

Life Cycle Analysis of 3 competing technologies

CO2

Incandescent

CFL

LED

Indranil Goswami: Lighting Application Services – Philips Lighting

• Market penetration of environment-

friendly products too slow

• High initial costs is the key issue

Cost / benefit over lifetimeLight Financing

Indranil Goswami: Lighting Application Services – Philips Lighting

• Market penetration of environment-

friendly products too slow

• High initial costs is the key issue

• Life cycle impact means benefits over

lifetime

• Translate to payment over time

• Including a payment solution in the

offering

• Enables customers to spread

investment costs over time

time

Cost / benefit over lifetimeLight Financing

Indranil Goswami: Lighting Application Services – Philips Lighting

• Eventually it boils down to the following

proposition:

• New lighting without additional

costsapplies to cases where monthly savings are equal to or

more than project payments

• Buy now and pay in installmentsacquiring the lighting project does not immediately dig a

large hole in the budget

time

Cost / benefit over lifetimeLight Financing

Indranil Goswami: Lighting Application Services – Philips Lighting

• A payment program enables:

• Access to latest technology

• Overcomes budget/ cashflow constraints

• Accelerated retrofitting

• Payments are financed by the savings

time

Cost / benefit over lifetimeLight Financing

Indranil Goswami: Lighting Application Services – Philips Lighting

Philips complete lighting solutions toolkit

Assessment of opportunity

• Energy assessment by Philips staff

• Certified ESCO audit

Products & system solutions

• Lighting design/ application support

• The most comprehensive product portfolio

• Installation

• Maintenance

Financial packages

• Financing

Indranil Goswami: Lighting Application Services – Philips Lighting