Technical Marketing Manager, October, 2011, John Gorse 1 Sustainable Lighting Solutions for Office and Industry BIU Renewable Energy Event 27 October 2011 John L Gorse Technical Marketing Manager Philips Lighting

Technical Marketing Manager, October, 2011, John Gorse 2 Sustainability Common trends Sustainability is rising to top of the Management agenda Rising costs are encouraging organisations to do more with less (financial cost of carbon) Empowered consumers having more influence over their lifestyle choices e.g. Fairtrade and Carbon Labelling Legislation is driving change, e.g. Carbon Reduction Commitment Energy Efficiency Scheme, Energy Bill affecting Landlords in 2018 Corporate Social Responsibility helping organisations give social returns on investments

Technical Marketing Manager, October, 2011, John Gorse 3 Sustainability The Case for Landlords of Office and Industry From April 2016, occupiers of buildings rated an F or G on an EPC can request the landlord to make improvements to the energy performance of the building From April 2018, buildings with an EPC less than an E cannot be rented out If a landlord has a direct relationship with the energy supplier, then they will be responsible for the Carbon Reduction Commitment, irrelevant of submetering Companies want a building / workplace that reflects their brand, attracts and retains staff.

Technical Marketing Manager, October, 2011, John Gorse 4 How Lighting can contribute to meeting environmental targets and reducing energy costs and emissions

Technical Marketing Manager, October, 2011, John Gorse 5 Leveraging Sustainability in Lighting A Holistic Approach

Technical Marketing Manager, October, 2011, John Gorse 6 What to consider when investing in a sustainable lighting solution? Does this business case make sense? Have I considered the opportunity costs? Should / can I calculate how much money I will save from CRC allowances? Will I be incentivized in future to reduce my demand for energy during peak times? Can lighting help with this? Energy prices are rising….have I included this increase in my payback calculations? If I delay this decision – how much will it cost me each day? What is the cost of delay? How much energy will this initiative save me on my utility bill this month? Will spending more money on the capital investment save me money over time on my operational budget?

Technical Marketing Manager, October, 2011, John Gorse 7 Will this solution impact on my carbon dioxide emissions? Will this solution help me meet my environmental promises and targets? LEDs last longer – have I considered how this will positively impact on my waste strategy? Lighting is a relatively quick payback compared to other energy initiatives – can I use the savings from lighting to pay for other investments in my estate? Will this solution help me to comply with environmental legislation? What to consider when investing in a sustainable lighting solution? Is this solution using less scarce resources to achieve more benefits than the existing technology?

Technical Marketing Manager, October, 2011, John Gorse 8 Have I considered how the quality of light that this solution provides impacts on the health, wellbeing and productivity of my fellow employees? Can I ‘shout’ about the energy savings I have made in my corporate social responsibility reports? I need to provide a safe and attractive environment – how will the white light from LED impact positively on this in my indoor and outdoor environment? How can I use my commitment to energy efficiency to empower my staff and consumers? What to consider when investing in a sustainable lighting solution? How can I use lighting to provide an environment that reflects our positive brand and corporate identity messages?

Technical Marketing Manager, October, 2011, John Gorse 9 Economic SocialEnvironmental Business case must make sense Financial implication of Carbon Emissions Opportunity costs considered e.g. investing in new products to improve revenue Corporate Social Responsibility Reputation Benefits to society e.g. if using the world’s resources to profit – give something back Use less resources to achieve more Reduce emissions and pollution Reduce hazardous waste Summary of any sustainable initiative! A holistic approach

Technical Marketing Manager, October, 2011, John Gorse 10 Economic Social Environmental Financial benefit associated with energy savings Security of energy supply Rising energy costs – savings worth more in future Effective reduction in CO 2 emissions Financial cost of Carbon LEDs limit waste to landfill Quality of light impacts staff wellbeing, productivity and comfort Energy savings can be used in corporate social responsibility reports & campaigns Provides safe, attractive environment Comply with environmental legislation Summary of Sustainability with Lighting Benefits all round Reduce hazardous materials e.g. mercury

Technical Marketing Manager, October, 2011, John Gorse 11 Traditional lighting LED lighting *Market estimate based on internal Philips study 7% 93% 2020 <25% >75% 2008 The LED revolution LED lighting is transforming the entire landscape*

Technical Marketing Manager, October, 2011, John Gorse 12 Historically LED’s used for transforming spaces into inspirational environments… EDs were initially focused on creating emotion Outdoor Architectural Hospitality ShopsEntertainment Avenue of the Arts Philadelphia Grand Melia Tenerife, Spain Lacoste, multiple US locations Star Trek, the Tour Long Beach, California Creating new application using coloured, dynamic lighting…

Technical Marketing Manager, October, 2011, John Gorse 13 Street & Road General lighting ArchitecturalAccent lighting Generali building Paris Ties, Andrew’s Lima, Peru Romanshorn, Switzerland Custom House, Boston Technology advancements now allow entry into mainstream applications LED is accelerating efficient white … making it suitable for general Office lighting!

Technical Marketing Manager, October, 2011, John Gorse 14 LED Lighting Options for Offices

Technical Marketing Manager, October, 2011, John Gorse 15

Technical Marketing Manager, October, 2011, John Gorse 16 LuxSpace “High efficiency downlight solutions” Fluorescent Up to 60%* energy savings Key benefits: Highly efficient, LED remote phosphor downlight Depending the application payback < 3 years Wide range of options (size, lm output, form factor and accessories) Quality of light (3000K, 4000K, top efficacy) Minimal maintenance(50K hours service lifetime) *Compared to fluorescent based downlights

Technical Marketing Manager, October, 2011, John Gorse 17 Easy to install Up to 60% energy saving compared to CFL Downlights Dimmable for further energy savings Options in range are office compliant (glare) May support claims for ECA Will contribute to Part L compliance LuxSpace

Technical Marketing Manager, October, 2011, John Gorse 18 DayZone “Innovative design meets sustainability” Inspiring design & light effect High visual comfort (UGR: 19) Energy saving (55 lm/W; through 300/500 LX concept) Additional energy saving up to 50% in combination with controls May support claims for ECA Will contribute to Part L compliance

Technical Marketing Manager, October, 2011, John Gorse 19 PowerBalance 25% energy saving compared to 4x14W (T5) Office compliant Additional energy saving up to 50% in combination with controls “Bringing an Office LED luminaire to the market, delivering best possible payback compared to fluorescent solutions, while being more energy efficient and maintaining good enough quality lighting (complying with office norms)

Technical Marketing Manager, October, 2011, John Gorse 20 Fluorescent PowerBalance Sustainable Performance Key benefits: Significant operational cost savings 25% more energy efficient compared to 4x14W (~45W vs 63W) / 2x28W (~45W vs 62W) May support claims for ECA Will contribute to Part L compliance 25% energy savings possible* * Comparing to Smartform 4x14W 63W

Technical Marketing Manager, October, 2011, John Gorse 21 LED Lighting Options for Industry

Technical Marketing Manager, October, 2011, John Gorse 22 LED Highbay 1 on 1 replacement of 400W and 250W HID highbays 35% lower energy consumption than HID Dimmable (DALI) for even more energy savings Instant light

Technical Marketing Manager, October, 2011, John Gorse 23 Thank you for your interest Any questions?