Philips to acquire Lumileds

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Philips to acquire Lumileds

• Theo van Deursen
• CEO Philips Lighting
• 15 August 2005

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Philips acquisition of Agilents shares
inLumileds

• 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

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Lumileds leadership in high power LEDs

• Industry leader in
• high power LEDs
• (LUXEON platform)
• JV established in 1999
• Approx 1760 employees

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Lumileds facilities
Headquarters, San Jose, California
Penang, Malaysia
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Lumileds performance
August 04 / July 05 Sales US 324
million EBIT US 83 million Annual
Growth 28 Operating margin 25.6 Employees
1760
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The Solid State Lighting value chain
Lumileds
Philips
Systems / Luminaires
Source, optics, driver and controls
Single Package or Chip-on-submount
Die
End-user
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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

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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

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High brightness packaged LEDsRevenues 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
Source Strategies Unlimited PennWell
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LumiLeds is well positioned to continue its past
(above market average) growth

• Focus on / active in the high growth market
  segments

LumiLeds key player
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Philips Lighting2004 - 2005 LED Product range
Equinox
Ledline2
LEDFlood
Origami
Minicolour
LEDAmazon
iParm
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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
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Target applications in the professional market
are decorative outdoor and shop lighting
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..creating new lighting possibilities ..
15
bringing dynamic colour ..
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..creating atmosphere in shops.
Winter
Spring
User interface
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..and ambient experiences in hospitals
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Linköping Universtity HospitalMedical Systems
and Lighting
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Leading to profitable growth

• Todays 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

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We shape the future in Solid State Lighting
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