Presentation by Mike Simpson, technical & design director, Philips Lighting at the CBI's low-carbon business breakfast. London, 15 April 2010.

1. Giving consumers the Low Carbon Option Mike Simpson Technical & Design Director- Philips Lighting

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4. Company policy requires that all manufacturing sites achieve ISO 14001 certification and introduce environmental management systems to realize this goal.

6. % Growth in Lighting market Value (global, B€) 2009 general illumination market overview1 Total market size: 45-50 B€ 80 Put Marimekko instead 40 Homes Outdoor Office Industry Lamps 2008 2020 Lighting Electronics General Illumination: conventional light sources Healthcare Applications / Luminaires Retail General Illumination: LED Hospitality Entertainment Applications: ~70% and growing CAGR 2010 - 2020: 6 % 62 1 Overview excludes Automotive and Entertainment Source: Philips Lighting

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8. Government Actions to Ban the Bulb

9. 8 Compact Fluorescent Light Emitting Diode Halogen Incandescent

10. 9 Other Incandescent LED Halogen CFL Government ActionsBan the Bulb 20,000 18,000 16,000 14,000 12,000 Electrical Energy (GWh per Year) 10,000 8,000 6,000 4,000 2,000 0 1990 2000 2010 2020 2030 2040 2050 Year Daniel Curtis, Environmental Change Institute, Oxford

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14. Electricity consumption due to lighting Lighting 14% (Europe) Other electricity uses SOURCE: IEA

15. Government ActionsBallast Directive Ballast sales in the Enlarged EU 2500 Electronic 2250 2000 1750 1500 1250 1000 750 500 Copper 250 0 1998 1999 2000 2001 2005 2002 2003 2004 2006 2007

16. Government ActionsBuilding Regulations 2002 2006 2010 2013 2016 2019 -25% ? ? Zero Carbon 28% lower than 2002

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19. 18 For the customer: B2C making energy saving simple B2B making energy saving good business For Philips Redeployment of manufacturing Focus in Research Faster times to market