Philips to acquire Lumileds



Theo van Deursen              Submitted by..
CEO Philips Lighting
15 August 2005                Sanjeev choudhary
Industry       Electronics

 Founded        15 May 1891 (Eindhoven)

 Headquarters   Amsterdam, Netherlands

 Area served    Worldwide

                Frans van Houten (CEO),
 Key people     Jeroen van der Veer
                (Chairman of the supervisory board)
                Consumer electronics,
 Products       domestic appliances, lighting,
                medical systems, medical technology

 Revenue        € 25.42 billion (2010)

 Employees      114,500 (2011)

 Website        www.philips.com

Lighting                                              2
Philips’ acquisition of Agilent’s shares in
     Lumileds

     • Philips acquires all shares of Agilent (47%)
     • Philips stake increases to 96.5%
     • Transaction approximately US$ 950 (Euro 765)


     • An important step to expand the PD Lighting business
       and ensures a leading position in the emerging, high
       growth LED market



Lighting                                                      3
Operations
     • Philips Intellectual Property and Standards[20] is the
       company's division dealing with licensing, trademark
       protection and patenting.
     • Philips currently holds about 55,000 patent rights, 33,000
       trademark registrations, and 49,000 design registrations.




Lighting                                                            4
Lumileds’ leadership in high power LEDs


     • Industry leader in
       high power LED’s
       (LUXEON platform)

     • JV established in 1999
     • Approx 1760 employees




Lighting                                       5
Lumileds facilities




Headquarters, San Jose, California

                                     Penang, Malaysia




Lighting                                                6
Lumileds performance


                           August 04 / July 05
       Sales:              US$ 324 million
       EBIT:               US$ 83 million

       Annual Growth:      28%
       Operating margin:   25.6%
       Employees:          1760




Lighting                                         7
The Solid State Lighting value chain


                 Lumileds                                  Philips

           Die         Single Package    Source, optics,      Systems /
                                                                           End-
                             or            driver and         Luminaires
                                                                           user
                      Chip-on-submount      controls




Lighting                                                                          8
The strategic relevance


     Philips ensures its leading position in the emerging,
     high growth LED market

     • Building on Lumileds proven expertise and leadership
     • Involvement in all stages of the LED business value chain
     • Leveraging Philips technology, manufacturing and
       commercial capabilities
     • Reaping cost synergies and additional revenues




Lighting                                                           9
LED product features


     • small size
     • long life & robust
     • low voltage
     • efficient (rapid improvements)
     • colors: saturation + dynamics
     • easily dimmable
     • quick response / instant start
     • environmental friendly: no mercury




Lighting                                    10
High brightness packaged LEDs
     Revenues in $ million, ww CAGR 25%



           6,000

           5,000

           4,000

           3,000

           2,000

           1,000

                0
                           2003                 ‘04            ‘05          ‘06           ‘07         2008
              Other          Illumination            Signals   Automotive    Signs/displays     Mobile Appliances


Lighting    Source: Strategies Unlimited; PennWell                                                                  11
LumiLeds is well positioned to continue it’s past
 (above market average) growth
 “Focus on / active in the high growth market segments”
                               Mobile displays

                                Automotive interior
                              Signs
                             Automotive exterior




                      Mobile Flash
                 LCD Backlighting                      = LumiLeds key player
            Illumination + automotive front lighting
Lighting                                                                   12
Philips Lighting
     2004 - 2005 LED Product range
           Equinox   Ledline2   LEDFlood
                                           Origami




                                           Minicolour




                                           LEDAmazon




                                           iParm




Lighting                                             13
Exploiting Solid State features and benefits…..


      Light experiences & effects
      • Dynamic colors

      Embedded
      • Robust & long life

      Total Cost of Ownership
      reduction
      • Low energy & maintenance

     …….resulting in
     “increased number of light points and new applications”
Lighting                                                       14
Target applications in the professional market are
     decorative outdoor and shop lighting…




Lighting                                              15
..creating new lighting possibilities …..




Lighting                                         16
…bringing dynamic colour …..




Lighting                            17
…..creating atmosphere in shops….

               Winter                    Spring




                        User interface




Lighting                                          18
…..and ambient experiences in hospitals




Lighting                                       19
Linköping Universtity Hospital
     Medical Systems and Lighting




Lighting                              20
Leading to profitable growth

     • Today’s installed luminaire base will continue to drive
       conventional lamp replacement

     • Luminaire sales will convert gradually to Solid State

     • Solid State creates new lighting possibilities with more
       initial light points per application




Lighting                                                          21
We shape the future in Solid State Lighting




Lighting                                           22
TH AN K YO U

Philips lighting ppt

  • 1.
    Philips to acquireLumileds Theo van Deursen Submitted by.. CEO Philips Lighting 15 August 2005 Sanjeev choudhary
  • 2.
    Industry Electronics Founded 15 May 1891 (Eindhoven) Headquarters Amsterdam, Netherlands Area served Worldwide Frans van Houten (CEO), Key people Jeroen van der Veer (Chairman of the supervisory board) Consumer electronics, Products domestic appliances, lighting, medical systems, medical technology Revenue € 25.42 billion (2010) Employees 114,500 (2011) Website www.philips.com Lighting 2
  • 3.
    Philips’ acquisition ofAgilent’s shares in Lumileds • Philips acquires all shares of Agilent (47%) • Philips stake increases to 96.5% • Transaction approximately US$ 950 (Euro 765) • An important step to expand the PD Lighting business and ensures a leading position in the emerging, high growth LED market Lighting 3
  • 4.
    Operations • Philips Intellectual Property and Standards[20] is the company's division dealing with licensing, trademark protection and patenting. • Philips currently holds about 55,000 patent rights, 33,000 trademark registrations, and 49,000 design registrations. Lighting 4
  • 5.
    Lumileds’ leadership inhigh power LEDs • Industry leader in high power LED’s (LUXEON platform) • JV established in 1999 • Approx 1760 employees Lighting 5
  • 6.
    Lumileds facilities Headquarters, SanJose, California Penang, Malaysia Lighting 6
  • 7.
    Lumileds performance August 04 / July 05 Sales: US$ 324 million EBIT: US$ 83 million Annual Growth: 28% Operating margin: 25.6% Employees: 1760 Lighting 7
  • 8.
    The Solid StateLighting value chain Lumileds Philips Die Single Package Source, optics, Systems / End- or driver and Luminaires user Chip-on-submount controls Lighting 8
  • 9.
    The strategic relevance Philips ensures its leading position in the emerging, high growth LED market • Building on Lumileds proven expertise and leadership • Involvement in all stages of the LED business value chain • Leveraging Philips technology, manufacturing and commercial capabilities • Reaping cost synergies and additional revenues Lighting 9
  • 10.
    LED product features • small size • long life & robust • low voltage • efficient (rapid improvements) • colors: saturation + dynamics • easily dimmable • quick response / instant start • environmental friendly: no mercury Lighting 10
  • 11.
    High brightness packagedLEDs Revenues in $ million, ww CAGR 25% 6,000 5,000 4,000 3,000 2,000 1,000 0 2003 ‘04 ‘05 ‘06 ‘07 2008 Other Illumination Signals Automotive Signs/displays Mobile Appliances Lighting Source: Strategies Unlimited; PennWell 11
  • 12.
    LumiLeds is wellpositioned to continue it’s past (above market average) growth “Focus on / active in the high growth market segments” Mobile displays Automotive interior Signs Automotive exterior Mobile Flash LCD Backlighting = LumiLeds key player Illumination + automotive front lighting Lighting 12
  • 13.
    Philips Lighting 2004 - 2005 LED Product range Equinox Ledline2 LEDFlood Origami Minicolour LEDAmazon iParm Lighting 13
  • 14.
    Exploiting Solid Statefeatures and benefits….. Light experiences & effects • Dynamic colors Embedded • Robust & long life Total Cost of Ownership reduction • Low energy & maintenance …….resulting in “increased number of light points and new applications” Lighting 14
  • 15.
    Target applications inthe professional market are decorative outdoor and shop lighting… Lighting 15
  • 16.
    ..creating new lightingpossibilities ….. Lighting 16
  • 17.
    …bringing dynamic colour….. Lighting 17
  • 18.
    …..creating atmosphere inshops…. Winter Spring User interface Lighting 18
  • 19.
    …..and ambient experiencesin hospitals Lighting 19
  • 20.
    Linköping Universtity Hospital Medical Systems and Lighting Lighting 20
  • 21.
    Leading to profitablegrowth • Today’s installed luminaire base will continue to drive conventional lamp replacement • Luminaire sales will convert gradually to Solid State • Solid State creates new lighting possibilities with more initial light points per application Lighting 21
  • 22.
    We shape thefuture in Solid State Lighting Lighting 22
  • 23.
    TH AN KYO U

Editor's Notes

  • #3 The Philips Company was founded in 1891 by  Gerard philip  and his father Frederik as a family business.  Philips started the production of carbon-filament lamps and other electro-technical products in 1892.
  • #21 For example: 2 in 1 night light developed for families with childeren, 1 click night sight, 2 click normal light. Unique combination of energy saving CFLi and LED.
  • #23 For example: 2 in 1 night light developed for families with childeren, 1 click night sight, 2 click normal light. Unique combination of energy saving CFLi and LED.