Sustainable Cities with Efficient Lighting

Michelle DeMoor, Sr. Director, International Policy

Paul Simonetti, Director, Corporate Stakeholder Relations

John Pouland, Director, Government Solutions

March 5, 2012

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A strong diversified industrial group leading in

health and well-being

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Improving

people’s lives

through

meaningful

innovation.

Founded in 1891

Headquartered in Amsterdam,

The Netherlands

Sales of €22.6 billion in 20111

Growth Markets

33% of sales generated in

growth geographies

Globally recognized brand

(world top 50)

Our brand value doubled to

$8.7bn since 20042

122,000 employees

Sales and service outlets in over

100 countries

€1.6 billion investment in R&D,

7% of sales

Who we are Our businesses Our mission

2011

Healthcare

Lighting

Consumer Lifestyle

2Source: Interbrand1Note - All figures exclude discontinued operations

26%

40%

34%

Mature

67%

Operating in the right marketsAddressing key societal issues

Demand for

affordable healthcare

Need for energy

efficient solutions

Desire for increased

personal well-being

Sustainability as a driver for growth

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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

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Outdoor Lighting

Outdoor lighting facts:

Lighting accounts for ~20% of global electricity use.

75% of global energy consumption is consumed by cities.

Outdoor lighting is 20-30% of a city’s electric bill.

March 2012

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Lighting represents 20% of all electricity used globally

With new lighting technology we can potentially

save 50% of electricity used today for lighting

This equates to:

• Global savings of EUR 106 billion in energy

costs per year

• 555 million tons of CO2 per year

• 1.5 billion barrels of oil per year

• Annual output of 530 medium sized power

stations @ 2TW h /yr

The Green revolution

81%

19%

March 2012

How can industry play a part

• Introduce new concepts / innovations

• Education - telling what efficient lighting is AND what it is not

• Increase transparency by developing & sharing standards / best practices/ white

papers, etc.

• Partner with cities / development agencies for infrastructure development

• Create demo projects / installations

• Adopt / introduce new financing models & tools to overcome initial cost

Possible Government actions to encourage the

switch

Major unlocked abatement

potential

Running well with growing

global momentum

Roadway Lighting

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Apodaca (2010-2011)

28,000

light sources will

be replaced

kilowatts will be

saved

43%

energy savings

will be reached

6,500

CO2 tons will be

reduced

3,000

Mr. Benito Caballero

Apodaca’s Major

Nuevo Leon, México

“By choosing Cosmopolis, we have

selected a state of the art lighting

technology for Apodaca. Our streets

will be lit with the same light quality

as the most beautiful cities in the

world”.

Online remote control for lighting A meaningful solution: Connected city

In the city of Prague, Philips introduced

the first worldwide project with

CityTouch, the perfect ICT-enabled

solution for controlling the light output

and energy consumption of a lighting

installation from a distance.

CityTouch is an online remote control

for the lighting in an entire city.

The integral CityTouch service allows

the operator to easily control and

manage the level of any light point

from a computer, resulting in enormous

energy savings and lower maintenance

costs.

San Ildefonso Cathedral

Location: Mérida Yucatán

Lighting Designer: GPE Group

Project Type.- City Beautification

Luminaries: Several Color Kinetics LED Lighting

Outdoor Illumination and Interior lighting of the Cathedral

to enhance the greatness of the monument.

The shapes and textures of the first Cathedral in the

Americas, provided the perfect scenario to enhance it’s

beauty.

LED Lighting energy saving potential

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An average energy savings of 40%!

LED savings potential per region

OUTDOOR

OFFICE