Solid State Lighting (LED’s)

Peter van StrijpExecutive Vice President & CEO BU Solid State Lighting

November 23, 2004

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Evolution of LED Technology

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Systems /Luminaires

Source, optics,driver and controls

Single Packageor

Chip-on-submount

DieEnd-userEnd-user

LumiLeds (JV Philips - Agilent)

Philips

The in-organic Solid State Lighting value chainLumiLeds: focus on die and packaging Philips: focus on modules and systems

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LumiLeds leadership in high power LEDs

• Joint venture with AgilentTechnologies established in 1999

• Headquarter in San Jose, California

• Industry leadership in high power die and packaging (LUXEON platform)

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6,000

5,000

4,000

3,000

2,000

1,000

02003 ‘04 ‘05 ‘06 ‘07 2008

Other

Source: Strategies Unlimited; PennWell

Market Forecast – packaged LEDsRevenues in $ million

Illumination Signals Automotive Signs/displays Mobile Appliances

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LumiLeds Luxeon in Sony LCD-TV

Sony high definition LCD TVModel: KDX-46Q005 LUMILEDS - LUXEON

LED backlight

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-50

300

'02 '03 '04

USD mln 2004

Sales 280Average Annual Growth 43%

Net Income 62As % of sales 22%

Fiscal year Nov/Oct

Sales Net Income

LumiLeds performance

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Philips target applications in the professional market are decorative outdoor and shop lighting…

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..creating new lighting possibilities …..

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…bringing dynamic colour …..

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……….and light everywhere……

Dynamic Road marking

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...based upon innovative product concepts ....

Surface

Recessed

Flood

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Philips Lighting2004 - 2005 Product range

Equinox Ledline2

OrigamiLEDFlood

Minicolour

LEDAmazon

iParm

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Philips Solid State Lighting modules ….……enabling OEM luminaires concepts

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…….resulting in“increased number of light points”

Exploiting Solid State features and benefits…..

Light experiences & effects• Dynamic colors

Embedded • Robust & long life

Total Cost of Ownership reduction• Low energy & maintenance

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Atmosphere demo Philips Lighting application centre Eindhoven

Winter Spring

User interface

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Controlling “increasing number of light points” requires “intelligent lighting modules”

• Control Light quality

• Color mixing

• Dynamic over time

• Store preferred settings in memory

• With an easy (intuitive) user interface

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Philips Solid State Lighting ….leveraging Philips Electronics technical capabilities

• Philips Research for advanced technology development

• Philips Semiconductors for packaging of modules & systems

• Philips Design for intuitive user interfaces

• Philips Software Development for control-intelligence

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…….as well as leveraging Philips Electronics market positions

• Philips Consumer Electronics for viewing experiences

• Philips Medical for creating caring environments

• Philips Lighting for light application and product know how

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Consumer Electronics: Viewing experience

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Medical: Ambient Experience / RSNA , Chicago

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Lighting: Growth in professional …..

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………… and consumer applications

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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