The LED lighting revolution A summary of the global savings potential - May 2012

\\ Global energy-efficient LED lighting saving potential 6 \\ Energy-efficient LED lighting saving potential per segment 8 \\ Potential business enablers 28 \\ Notes on sources and calculations 31

The LED lighting revolution We have reached a tipping point development of high quality light emitting diodes (LEDs). This exciting new technology can now be used for general lighting in almost all applications. This is good news for planet earth and its people’s, because quality LEDs offer solutions to some of the key issues and opportunities we face today - the energy crisis, resource scarcity, climate change, safety in and attractiveness of our cities, productivity in our offices, and an enhanced sense of health and well being to name but a few. Nor should we forget that LED technology, when...

1. What is the opportunity? Lighting consumes a significant part, 19% of all electricity in the world. 4 key issues - Rising energy prices - Climate change - Security of resource supply - Economic growth 1 value proposition Energy efficient lighting solutions help drive global sustainable development Other electricity uses 81% source IEA

LED lighting energy savings potential North America Latin America incl. Mexico Asia Pacific Middle East and Africa Euro billion Number of power stations @ 2TWh/year Car emissions mln cars @ 10k mile/year Saving potential

Euro 128 billion in energy costs Annual output of 642 medium sized power stations @ 2TWh/year

Home Lighting – LED savings potential per region North America Latin America incl. Mexico Asia Pacific Middle East and Africa Euro billion Saving potential Car emissions mln cars @ 10k mile/year Number of power stations @ 2TWh/year

Home Lighting – LED lighting can save up to 80% In 2011 around 11.5 billion incandescent lamps were sold worldwide, of which 75% are used in homes. The global installed base is still 67% incandescent lamps vs. 33% energy savers. P ■ hilips LED bulbs offer high quality light, using 80% less energy and last more than 20 times longer than traditional bulbs. I ■ n 2011, Philips won the predacious US Department of Energy’s Bright Tomorrow Lighting Prize (L-prize). ■ he ‘L-prize bulb’ is the world’s brightest and most energy efficient 60-Watt equivalent T replacement and closely mimic an incandescent...

Home LED Lighting – comparison of pay-back time between lamp types ■ he initial cost price of a LED lamp is higher than a traditional incandescent light T bulb, however, if you consider the usage of it, the payback time is 1,5 years for a product (40W equivalent) which has an expected lifetime of around 20 years. I ■ f we compare the costs involved for the use of a 40W incandescent (price per lamp EUR 1.50) vs a 6W equivalent LED bulb (price per bulb is EUR 9.99), the cost saving for the LED bulb is EUR 5.73 per year. The payback time is 1.5 years. T ■ he calculation is based on: 3 hrs light...

Outdoor Lighting – LED savings potential per region North America Latin America incl. Mexico Asia Pacific Middle East and Africa Euro billion Number of power stations @ 2TWh/year Car emissions mln cars @ 10k mile/year Saving potential

Outdoor Lighting – LED can save up to 75% One third of the world’s roads are still lit by technology dating back to the 1960s. When installing new street lighting solutions, this will save up to €10 billion in energy per year. Future legislation within the EU and US will prohibit the installation of inefficient lighting technologies. T ■ oday’s LED lighting solutions, usage monitoring, dimming tools for conditions-based remote control and application of alternative energy sources can save energy by up to 75%

LED road lighting A44 The Netherlands

Outdoor Lighting With green concerns and tight budgets at the forefront of debate, cities are seeking new ways to manage energy while enabling safety. Controls and dimming products like Philips Starsense and CityTouch provide consumption tracking software, dimming and brightening tools for conditions-based remote lighting control, ensuring safety, visibility and a reduction in light pollution.

Office Lighting – LED savings potential per region North America Latin America incl. Mexico Asia Pacific Middle East and Africa Euro billion Saving potential Car emissions mln cars @ 10k mile/year Number of power stations @ 2TWh/year

Office Lighting – LED can save up to 70% Public and commercial buildings represent 60% of global lighting-based electricity use, while 70% of office lighting uses outdated, inefficient lighting systems. Switching from old to new office lighting can save up to 70% in lighting energy costs per year.

MASTER LEDtube

Retail Lighting – LED savings potential per region North America Latin America incl. Mexico Asia Pacific Middle East and Africa Euro billion Saving potential 20% - 30% of the energy bill in retail is lighting related. A global annual saving up to €16 billion in energy costs can be achieved by switching from old to new lighting in retail. For every application, food or fashion, there is a specific lighting solution, offering best colour quality and energy efficiency Energy savings • Halogen LED

Retail Lighting – LED can save up to 70% Food/Fast Moving Consumer Goods ■ LED Cooler/Freezer lighting for uniform white cool light and 70% energy savings ■ LED provide good light quality and efficiency Fashion ■ The StyliD LED combines flexibility, style and energy saving ■ AmbiScene and its intelligent light control delivers dynamic, efficient and flexible light

Hospitality Lighting – LED savings potential per region North America Latin America incl. Mexico Asia Pacific Middle East and Africa Euro billion Saving potential Hospitality is one of the segments with the largest energy saving potential. 42% of energy usage is lighting, of which 70% is inefficient. Approximately one third use energy-inefficient products which use 4-5 times more energy than energy-efficient alternatives. Energy savings