Theo van Deursen, CEO Philips Lighting

Brussels, 7 December 2006

Philips Lighting – Energy Efficiency

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Climate change or global warming…

Source:Climatic Research Unit of the University of East Anglia and the Hadley Centre of the UK Meteorological Office

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...And is now at the top of political agenda...

“Probably, long-term the single most important issue we face as a global community.” Tony Blair, UK Prime Minister ahead of the G8 summit at Gleneagles

October 2006 - New EU Energy action plan 20% Energy saving target by 2020EU Commissioner, Andris Piebalgs in charge of energy

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Agenda

• Energy efficient lighting solutions

• Philips commitment and new initiatives

• Barriers and solutions

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So here is where lighting comes in…

• Lighting uses 19% of all electricity consumption world wide - source IEA

• New lighting technology provides higher quality lighting and saves energy and CO2 emission

19%

81%

Lighting

Otherelectricity use

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Facts and figures – EuropeA realistic 20% energy saving on all lighting currently installed in the EU would save

• 14 billion euros in electricity costs/year(20% saving @ euro 0.1 kw/h)

• 59 million tons of CO2 emissions per year

• Equivalent Output of 67 medium sized power plants

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Office Lighting in Europe

Less than 25% if Europe’s Office Lighting is energy efficient

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Street Lighting: German town VechtaBefore old technology After new Technology

EU Road Lighting - potential savings 3.5 Million tons of CO2

50% energy saving

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Where does Philips Lighting come in?

• Philips’ commitment and solutions– R&D spending– Investments in new companies – Awareness / training campaigns– Partnerships– Product/technology solutions

• Switch: New lighting technology with old • Smart: intelligent, controllable use of lighting

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Philips calls for collective action to replace incandescent light bulbs

• Initiative starts in Europe• Home Lighting

– Dominated by Incandescent light bulbs

– Which Use 4 - 5 x more energy than energy saving light bulbs.

– 95% of the energy used is wasted as heat

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Energy saving opportunities in home lighting

Electricity costs per year: Up to € 15 Average lifetime: 1 year

Electricity costs per year:€ 3Average lifetime: 6 year

Up to 12 euro saving per year or € 72,-during 6 years

20W Energy saving CFL light bulb100W incandescent light bulb

100W light bulb 1000 hours per year 0.15 p/kwh

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Energy Saving halogen – The Edore

• Saving – 50% energy saving vs., incandescent– 3 times longer lifetime vs. incandescent

• Sparkling crisp light and dimmable

• Complete retrofit halogen lighting solution

– no new installations required

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Research - energy saving by switching from old to new lighting technology

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Solutions

• More financial packages, ESCO support

• Environmental performance targets

• Discouraging inefficient technologies

• New legislation

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Summary

New, higher quality, lighting technology available:

This energy saving technology offers a triple win1. Consumers/End Users save costs2. The environment benefits from lower energy use 3. Business improves its position

A triple effort needed1. Switch to new energy saving light bulbs2. Offer more financial packages3. Implement new legislation

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