1. Philips to acquire Lumileds
Theo van Deursen
CEO Philips Lighting
15 August 2005

2. Philips’ acquisition of Agilent’s 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

3. Lumileds’ leadership in high power LEDs
Industry leader in
high power LED’s
(LUXEON platform)
JV established in 1999
Approx 1760 employees

4. Lumileds facilities Headquarters, San Jose, California
Penang, Malaysia

5. Lumileds performance August 04 / July 05 Sales: US$ 324 million
EBIT: US$ 83 million
Annual Growth: 28%
Operating margin: 25.6%
Employees: 1760

6. The Solid State Lighting value chain
Lumileds
Philips
Die
Single Package or
Chip-on-submount
Source, optics,
driver and controls
Systems /
Luminaires
End- user

7. 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

8. 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

9. High brightness packaged LEDs Revenues in $ million, ww CAGR 25%
6,000
5,000
4,000
3,000
2,000
1,000
2003
‘04
‘05
‘06
‘07
2008
Other
Illumination
Signals
Automotive
Signs/displays
Mobile Appliances
Source: Strategies Unlimited; PennWell

10. LumiLeds is well positioned to continue it’s past (above market average) growth
“Focus on / active in the high growth market segments”
Illumination + automotive front lighting
LCD Backlighting
Mobile Flash
Automotive exterior
Automotive interior
Mobile displays
Signs
= LumiLeds key player

11. Philips Lighting 2004 - 2005 LED Product range
Equinox
Ledline2
LEDFlood
Origami
Minicolour
LEDAmazon
iParm

12. 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”

13. Target applications in the professional market are decorative outdoor and shop lighting…

14. ..creating new lighting possibilities …..

15. …bringing dynamic colour …..

16. …..creating atmosphere in shops….
Winter
Spring
User interface

17. …..and ambient experiences in hospitals

18. Linköping Universtity Hospital Medical Systems and Lighting
For example: 2 in 1 night light developed for families with childeren, 1 click night sight, 2 click normal light. Unique combination of energy saving CFLi and LED.

19. 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

20. We shape the future in Solid State Lighting
For example: 2 in 1 night light developed for families with childeren, 1 click night sight, 2 click normal light. Unique combination of energy saving CFLi and LED.