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Nordic Green Building Councils’
Conference 2013


                           Jussi Lehtonen
Philips: A strong diversified industrial group leading
    in health and well-being

                                                                     Philips

                            Businesses1, 2                                                     Geographies1

       Healthcare                 Consumer               Lighting           Western         North           Other Mature     Growth
                                   Lifestyle                                Europe         America          Geographies    Geographies




         41%                         25%                     34%               27%           31%                8%             34%



    Since 1891 €22.6 Billion 121,000+                                                 $8.7Billion               7% of sales invested
    Headquarters in                  Sales in 2011.           People employed         Brand value in 2011       in R&D in 2011.
    Amsterdam, the                   Portfolio consists of    worldwide in over 100                             54,000 patent rights,
    Netherlands                      ~65% B2B                 countries                                         39,000 trademark rights,
                                     businesses                                                                 70,000 design rights
1Last twelve months June 2012
2Excluding Central sector (IG&S)
Note - All figures exclude discontinued operations
Addressing some of the world’s major trends
                                              Global trends and challenges

                      Ageing population leading
Healthcare




                      Increase in patients managing chronic conditions
                      Growth geographies wealth creating demand
                      Lifestyle changes, fueling cardiovascular illnesses and respiratory and sleeping
                       disorders
Consumer Lifestyle




                      Consumers focus on the health and well-being
                      Rising middle class in growth geographies
                      Back to basics: simple propositions
                      Trusted brands combined with locally relevant portfolio


                      Ongoing urbanization and globalization
                      Increasing need for energy efficient solutions
Lighting




                      Fast growing global illumination market
                      Expanding renovation market
                      Rapid adoption of LED-based lighting solutions
Sustainability as a driver for growth


                              Accelerating sustainable business
                              • Green Products represented 39% of total sales
                                in 2011, up from 30% in 2009
                              • By 2015 Philips aims to invest EUR 2 billion in
                                Green Innovation



                              EcoVision targets for 2010 – 2015
                              • Bringing care to more than 500 million people
                              • Improving the energy efficiency of Philips
                                overall portfolio by 50%
                              • Doubling the global collection and recycling
                                amounts of our products, as well as double the
                                amount of recycled materials in our products




                                                                                 5
The case for energy efficient lighting
The lighting world is changing



                                                         Today lighting

                        represents   19% of the worlds electricity consumption

                                                   70% of all installations are

                                          energy inefficient and based
                                                             on old technology




                                                                             6
Digital revolution
LED will change business environment*


                 93%




       7%
              2008




                                         <20%

                                                       2020
     Traditional lighting

     LED lighting

                                                            >80%




*In Nordic our LED share of luminaire business in 2012 was 48% compared to 30% in 2011

*LED growth is based on internal Philips estimation on development of lighting market
                                                                                         7
Some awards and recognitions


Super Sector Leader Category
Personal and Household                                                      Best score for Supplier
Goods 2011/2012                                                             Sustainability out of five
                                                                            multinational finalists

                                      Eight year in a row, included in 20
                                      most Sustainable Stocks

Significant advancement in LED
lighting by US Department of Energy

                                                                            Best score for Carbon Disclosure
                                                                            Leadership Index and the Carbon
                                                                            Performance Leadership Index 2011




Environment Excellence Award for      Global Top 10 of Newsweek                “Most Responsible Company Award’
Philips Lighting Pakistan             2011 ranking of greenest                 for Philips China
[Nordic GBC Conference 2013] Jussi Lehtonen

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[Nordic GBC Conference 2013] Jussi Lehtonen

  • 1. Nordic Green Building Councils’ Conference 2013 Jussi Lehtonen
  • 2. Philips: A strong diversified industrial group leading in health and well-being Philips Businesses1, 2 Geographies1 Healthcare Consumer Lighting Western North Other Mature Growth Lifestyle Europe America Geographies Geographies 41% 25% 34% 27% 31% 8% 34% Since 1891 €22.6 Billion 121,000+ $8.7Billion 7% of sales invested Headquarters in Sales in 2011. People employed Brand value in 2011 in R&D in 2011. Amsterdam, the Portfolio consists of worldwide in over 100 54,000 patent rights, Netherlands ~65% B2B countries 39,000 trademark rights, businesses 70,000 design rights 1Last twelve months June 2012 2Excluding Central sector (IG&S) Note - All figures exclude discontinued operations
  • 3.
  • 4. Addressing some of the world’s major trends Global trends and challenges  Ageing population leading Healthcare  Increase in patients managing chronic conditions  Growth geographies wealth creating demand  Lifestyle changes, fueling cardiovascular illnesses and respiratory and sleeping disorders Consumer Lifestyle  Consumers focus on the health and well-being  Rising middle class in growth geographies  Back to basics: simple propositions  Trusted brands combined with locally relevant portfolio  Ongoing urbanization and globalization  Increasing need for energy efficient solutions Lighting  Fast growing global illumination market  Expanding renovation market  Rapid adoption of LED-based lighting solutions
  • 5. Sustainability as a driver for growth Accelerating sustainable business • Green Products represented 39% of total sales in 2011, up from 30% in 2009 • By 2015 Philips aims to invest EUR 2 billion in Green Innovation EcoVision targets for 2010 – 2015 • Bringing care to more than 500 million people • Improving the energy efficiency of Philips overall portfolio by 50% • Doubling the global collection and recycling amounts of our products, as well as double the amount of recycled materials in our products 5
  • 6. The case for energy efficient lighting The lighting world is changing Today lighting represents 19% of the worlds electricity consumption 70% of all installations are energy inefficient and based on old technology 6
  • 7. Digital revolution LED will change business environment* 93% 7% 2008 <20% 2020 Traditional lighting LED lighting >80% *In Nordic our LED share of luminaire business in 2012 was 48% compared to 30% in 2011 *LED growth is based on internal Philips estimation on development of lighting market 7
  • 8. Some awards and recognitions Super Sector Leader Category Personal and Household Best score for Supplier Goods 2011/2012 Sustainability out of five multinational finalists Eight year in a row, included in 20 most Sustainable Stocks Significant advancement in LED lighting by US Department of Energy Best score for Carbon Disclosure Leadership Index and the Carbon Performance Leadership Index 2011 Environment Excellence Award for Global Top 10 of Newsweek “Most Responsible Company Award’ Philips Lighting Pakistan 2011 ranking of greenest for Philips China