Intelligent Lighting for Smart and Livable

Head of Global Public & Government Affairs – Philips Lighting2013MIECF – Macao, March 21 2013

Intelligent Lighting for Smart and Livable Cities

- The economical, ecological and social benefits of energy efficient lighting solutions in urban environments -

Harry Verhaar

Lighting for Smart & Livable CitiesThe only constant is change

Growing connectivity There are huge new opportunities to improve urban life through intelligent, highly efficient solutions enabled by ICT.

Cities want to establish identityInter-city competition for people and business is on the rise.

Surging demandfor energy and resources There are rising concerns over price, availability and environmental impact.

UrbanizationNew challenges are arising as our cities grow at an unprecedented speed.

Urbanization

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Urbanization

The world is going through a period of unprecedented urbanization.

Now already more than half of us call cities our home, a figure that is projected to rise to 70% in 2050.

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is projected to rise to 70% in 2050. This means some 3 billion extra city dwellers who will all want to live, work and enjoy their free time in safe, secure, vibrant and attractive places.

This presents cities with huge economic, social and environmental challenges.

Surging demand for energy and resources

Global energy consumption is projected to grow by some 35% by 2035. The demand for natural resources and raw materials is also rising sharply.

Surging demand for energy and resources

There are growing concerns over environmental degradation, price levels and the depletion of natural resources.

Governments are enacting legislation to cut energy consumption, increase resource efficiency and reduce environmental impact.

Cities want to establish identity

Toledo, Spain

There is an increasing need for cities and towns to create an attractive identity for themselves in order to be able to attract citizens, business and visitors.

Cities want to establish identity

Branding a city as a vibrant, inviting and safe place fosters a sense of ‘community spirit’ and will help it to successfully compete for investments, business and tourism. And that means more money flowing through the local economy.

Growing connectivity

Growing connectivity

In recent decades information and communication technologies have become an increasingly important part of people’s lives and of society as a whole.

ICT generates huge opportunities for the creation of new intelligent, connected solutions that enable lighting systems to be controlled and managed remotely, thus saving energy and reducing maintenance costs. Connected lighting solutions will play an important role in the smart grids and enables new businessmodels.

However, municipalities face many challenges when it comes to outdoor lighting

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Inefficient maintenance

practices

Increasing the feeling of safety

and security

Urgent need for intelligent

infrastructures(i.e. smart

grids)

Low budgets for investment

Philips IntelligentCity can bring these possibilities to life

Inefficient Increasing the Urgent need for Low budgets for

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Partner in Technology & Innovation

Partner in Services and Solutions

maintenance practices

feeling of safety and security

intelligent infrastructures

(i.e. smart grids)

investment

Controls

Hardware Financial Services

Philips IntelligentCity is a complete solution, tailored to your needs

Software

Business PropositionsAdvisory Services Lifecycle Services

Project Services

The Philips Lighting difference

Partner in Technology & InnovationWe have the latest technology, We have the latest technology, making sustainable outdoor lighting possible

• LED technology

• Communications/Connectivity and Controls

• Internet based / Cloud computing SaaS platform

I need to plan ahead I need to economize I need to performI need to renovate I need to make a smart purchase

We have the right lighting solutions…

CITY FURNITUREArchitectural lighting

Luminaires Mast & Brackets

…the best control systems for different needs…

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LIGHTPOINT CONTROL

… To locally set he right amount of light at the right

place at the right time

… To fully control the amount of light at the right place at the

right time and provide monitoring of every individual

light point

… To provide cabinetmonitoring & control over a

group of light points

GROUPMANAGEMENT

LIGHTPOINT MANAGEMENT

… the first truly integrated management platform for outdoor lighting.

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The Philips Lighting difference

Partner in Services and SolutionsWe understand the new financial and cooperation models enabling and cooperation models enabling private and public parties to achieve their objectives

•Energy Performance Contracts (EPC)

•ESCO models

•PPP/PFI

•Long term outsourcing contracts with high service levels

Adding value Aiding healing Fostering security Enhancing learningSupporting productivity Creating identity Ensuring safety

Services and SolutionsSome Philips Lighting Services are available separately. All of them can be combined into a tailor-made turnkey package that delivers completely coordinated solution design, project execution and lifecycle support - from start to finish.

Advisory Services

Energy Audit• Assessment of current lighting system• Business case development for energy savings

Our Advisory Services give clear insight into your current lighting system, how it can be improved, and what benefits you would gain from improved or newly developed systems.

Solution Design• Lighting application• Technical design• Business models

Project Services

Our knowledge and competencies at your disposal to implement any type and size of lighting solution on your behalf.You determine the scope of our involvement, from simply overseeing product installation, to taking on complete responsibility for a turnkey project.

Project ServicesProject Services• Project Management• Installation• Integration & Programming

Lifecycle Services

Support• Replacement parts free of charge• Helpdesk support• Technical diagnostic support• Training

Lifecycle Services offers customers and channel partners a variety of project after-care contracts that cover all aspects necessary to guarantee long-lasting, hassle-free, cost-effective performance

Maintenance• Replacement parts free of charge• Helpdesk support• Corrective Maintenance• Preventive Maintenance• Software updates• Remote support on networked controls

Performance• Guarantee on Energy reduction• Guarantee on light functionality beyond product lifetime• Expedited service response time

Philips Lighting Capital

Philips Lighting Capital links financing to the returns that a new lighting solution will deliver.

This enables you to acquire a state-of-the-art, business-enhancing solution immediately. –with little to no upfront capital investment required – and keeps your cash flow as positive as possible from day one! Financing

Outdoor LightingLarge energy saving potential

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250W SON 106W LED

Improved uniformity & visibility for

drivers and pedestrians

67%Energysaving

Increasing the feeling of safety and securityA meaningful solution: Light on Demand

The City of Tilburg is the first city in Europe to use ‘Light on Demand’ in an entire neighborhood. The result: pedestrians feel safe and energy consumption and light pollution are reduced substantially.

Tilburg, The Netherlands

are reduced substantially.

Communication- and sensor-enabled LED luminaires fully light up the surroundings as pedestrians approach and then dim as they walk away.

World’s first highway lit entirely by LEDsA meaningful solution: Sustainability

Philips has installed state-of-the-art LED lighting along a 7 km stretch of the A44 highway near Amsterdam.

SpeedStar is a highly energy-efficient lighting solution emitting a bright, lighting solution emitting a bright, white focused light that can be dimmed dynamically. The level of light is adjusted to the appropriate, safe level depending on the volume of traffic.

The LED solution generates energy savings of up to 40% a year, while ensuring a high level of road safety and cutting maintenance costs.

Highway A44, Amsterdam, The Netherlands

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. 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 any light point from a computer, resulting in enormous energy savings and lower maintenance costs.

A total Philips IntelligentCity solutionA meaningful solution: IntelligentCity

In the city of Salobre, Philips worked closely together with GasNaturalfenosa and completed a succesfullESCO project. The new lighting installation is paid by the maintenance & energysaving starting from day one. & energysaving starting from day one.

In this ESCO project the City realized 72% energy saving and a cost reduction of 20%, while improving safety and livability. The city has a new futureproof LED installation, opperatedby CityTouch to improve maintenace, optimize lighting levels and control/ meassure the energy usage

A total Philips IntelligentCity solutionA meaningful solution: IntelligentCity

In the Italian city Catania we realized an energy performance contract in a partnership between GEMMO and Philips. Gemmo is the coming 9 years responsible for the overall management of public lighting installations, including the supply of energy. More than 20.000 luminaires are replaced by energy efficient and controllable LED luminaires. Besides the deliveries of products Philips assists with advisory and lifecycle services and arranged the complete financing. Resulting in a new energy saving lighting installation with a payback of less than 5 years, while improving the livability and safety for the citizens.

A total Philips IntelligentCity solutionA meaningful solution: IntelligentCity

a unique ten-year street lighting energy performance agreement to the city of Vienna, Austria. The latest LED technology allows a reduction of some 70% in electricity consumption - this means an annual energy saving of 370,000 kWh and 136 tonnes less CO2 emissions per year.

The new LEDs also make a valuable contribution to reducing light pollution.The customer was guaranteed eight years pay-back, based on electricity savings. As a result, the entire project could be financed through amortization contracting, financed or refinanced by the contractor.

TotalTunnel® Lighting ProgramBuilding blocks from Philips

•Tunnel Luminaires

•Tunnel Controls

•Tunnel Services

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Total Tunnel Lighting Some Projects

First fully lit LED tunnel in Europe, Dutch authority adopted use of LED technology for Vlake, Heinenoord and Zeeburger tunnels

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Vlake Tunnel - 2010 Heinenoord Tunnel - 2011 Zeeburger Tunnel - 2012

Total Tunnel LightingIndustry Awards & Press Coverage

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Our solution conceptsThe basis for customized solutions

Road Lighting Solutions

City Lighting Solutions

Arena SolutionsRetail Lighting

SolutionsHotel Lighting

Solutions

• IntelligentCity • IntelligentCity• LumiMotion

• ArenaExperience • GreenEvolution• FridgeWin• ChainDirector

• GreenEvolution

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• ChainDirector

Office Lighting Solutions

Industry Lighting Solutions

Healthcare Lighting Solutions

EducationLighting Solutions

• SchoolVision• HealWell• GreenEvolution• GreenEvolution

Next steps: No need to wait!

• Technology exists: no need to delay adoption• Financing Mechanisms now available• Intelligent City service & solution contract now possible

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Confidential