Philips to acquire Lumileds

Theo van Deursen CEO Philips Lighting 15 August 2005

Philips acquisition of Agilents shares in Lumileds

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

Sales: EBIT: Annual Growth: Operating margin: Employees:

August 04 / July 05 US$ 324 million US$ 83 million 28% 25.6% 1760

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The Solid State Lighting value chain

Lumileds
Die Single Package or Chip-on-submount Source, optics, driver and controls

Philips
Systems / Luminaires Enduser

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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 LEDs

Revenues in $ million, ww CAGR 25%

6,000 5,000 4,000 3,000 2,000 1,000 0 2003

Other Illumination

04
Signals

05
Automotive

06

07

2008
Mobile Appliances

Signs/displays

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Source: Strategies Unlimited; PennWell

LumiLeds is well positioned to continue its past (above market average) growth
Focus on / active in the high growth market segments
Mobile displays Automotive interior Signs Automotive exterior

Mobile Flash LCD Backlighting = LumiLeds key player

Illumination + automotive front lighting

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Philips Lighting 2004 - 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 ..

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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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Linkping Universtity Hospital

Medical 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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