Philips Ledalite VersaForm LED Recessed luminaire family Don Jacklin Good morning, for those of you I haven’t met my name is Don Jacklin. I am the Category Product Manager for Architectural Recessed and Architectural Linear Systems based in Langley. Today we’re proud to unveil an exciting new recessed product family from Philips Ledalite – VersaForm LED. Don Jacklin Office & Industry August , 2014

PRESENTATION OUTLINE Introduction/ Overview Product details Competitive Overview Marketing support materials FAQs First, an overview of today’s presentation. This presentation will consist of 5 parts – introduction/overview; product details; competitive overview; marketing support materials; and FAQ. Even though we’ll be having a dedicated FAQ section at the end I still welcome your questions so feel free to send them in as we go along. Time permitting I’ll address them at the end. If not, I’ll be sure to follow up with you after the presentation.

Product Overview Target Audience Specifiers who value high performance LED technology Specifiers who value versatile options Specifiers who value harmonious style and clean aesthetic End-users who value ease of maintenance and lower Total Cost of Ownership (TCO) Firstly, a word on target audience. Anyone who has walked a lighting industry trade-show such as Lightfair can attest to breadth of offering in the recessed luminaire space. Quite simply, the recessed category makes up the largest single segment in Professional Luminaires and as such there are more competitors in this space than any other. That is why it is imperative with any new launch that we are crystal clear who are target audience is and develop features to suit this audience. For this launch, as is typical for Ledalite, we are targeting the Architect or Lighting Designer who demands high performance LED technology. Not only does every watt matter greatly to these people but so does good lighting design. We also know these designers require a wide range of offering to suit many applications. Designers who value families of products are what we are talking about here. Third, we are appealing to today’s designer who is looking for a clean, harmonious aesthetic. Lastly, we are targeting the end-user who sees past up-front cost and values total cost of ownership. Such an end-user would have an eye on maintenance and life cycle of the product whether it be for a hospital space, institutional owner like a school or large corporate owner.

Contractor Distributor Product Overview Positioning PLS – Lensed recessed LED luminaires Design Build Contractor Distributor Large End User Engineering Firm Lighting Designer Architect HVA DayLine CORE PERFORMANCE STATEMENT Commodity products where price is the most important thing Total cost of ownership products where specification is key Products sold on the basis of design or innovation ArcForm VersaForm SofTrace DuaLED Further to the previous slide, knowing which product in our portfolio is best suited to the application is something that is very important for us and the customer. Recessed products may seem alike to some but in reality there is a world of difference between them. So, getting the positioning right ensures we are delivering the correct solution for the customer’s need and the customer isn’t paying for features they don’t value. It also ensures we are correctly matched against our competition and not having to discount unnecessarily. So, for those of you who may be unfamiliar with the entire PLS lensed recessed LED offering, our portfolio is split into three tiers – Core, Performance and Statement. The easiest way to think about this is to put yourself in the position of your customer. If your customer is a design-build contractor or distributor who values price above all else, then HVA and DayLine are the products you want to position with them. If your customer is a large end-user or Engineer who values total cost of ownership above all else then you’ll want to position Softrace and DuaLED with them. Lastly, if your customer is the Lighting Designer or Architect that values product design or innovation then you’ll want to position ArcForm and VersaForm with them.

Product Overview Design LED design from the ground up Architectural grade performance and versatility to suit a wide range of areas and applications Fully luminous appearance Quiet, clean aesthetic < 3 ½” housing depth Based on positioning and target audience, we set out to build a LED platform from the ground up and not simply a LEDified version of a familiar platform. This is an important note especially when we get to how we are positioned versus our competition. Designing from the ground up allowed us to deliver architectural grade performance to suit a wide range of areas and applications. Furthermore, we could design it to deliver a fully luminous appearance, quiet aesthetic in an architecture that wasn’t predefined by fluorescent. This enabled us to deliver a housing that was shallower than normal – in this case < 3 ½” housing depth to suit a greater array of applications.

Product Details Performance Up-to 115 lm/W Batwing distribution from nadir to 35 degrees Wide row spacing Improved work plane uniformity Ultra low energy densities And, by designing it from the ground up instead of simply replacing the fluorescent lamps with LED boards we were able to design the optical characteristics to deliver industry leading efficacy, spacing criteria and thus energy density. As noted, VersaForm delivers up-to 115lm/W with a distribution that is specifically designed to throw the light farther out to the sides (in this case 35 degrees from vertical as opposed to straight down) resulting in wider row spacing, improved work-plane uniformity and ultra-low energy densities. We’ll look at a specific example to illustrate this point in a few slides.

Product Details Technology – Optics Light is coupled and transmitted thru panel via TIR Graduated, engineered surface structures homogenize and extract the light Smooth, homogenous aesthetic Wide batwing distribution In VersaForm, we’re using Light Guide technology to achieve our superior performance and aesthetics. Here’s how it works… As the illustration shows, LEDs are side mounted along two channels that run the length of the housing. Light from the LEDs is then coupled and transmitted through the Light Guide panel via Total Internal Reflection, or TIR. This is the same technology that is used in fiber optic cable and, as such, is good for transmitting light a great distance without drop off. Light continues along inside the panel until it hits a surface structure at which point it is extracted from the panel. In VersaForm, we are using graduated, engineered surface structures to homogenize and extract the light in the precise pattern we want. By graduated we mean the structures are smaller and less dense nearest the LED and more concentrated and bigger the farther we get away from the LED. This ensures a smooth, homogenous aesthetic. Finally, the engineered surface structure pattern ensures we get more light out to the sides versus directly below hence we improve our spacing uniformity and lower our max:min ratios in the space. We’ll look at this again in a few slides.

Product Details Maintenance Light engine separate from housing Driver access from below the ceiling Ease of maintenance or upgrade without expensive rewiring or total fixture replacement Another by-product of our design was that we could easily design in driver access from below the luminaire. This was something we got specific feedback on during the design – for our audience driver access from below was seen as a must. For this we designed the light engine separate from the housing. Think of this like a downlight where the housing and trim are separate. To gain access to the driver you simply push up and in at the marked corners. The light engine then hinges open allowing you to disengage the low voltage wiring and access the driver cavity from below the ceiling. Now, the other thing that this allows us to do now is offer the possibility of upgrade without the need for total fixture replacement. Starting with the philosophy that it’s much better to sell an existing customer than to find a new one, in a few years time when LED technology is far superior than it is today we will have the possibility to go back to these existing clients and offer a simple upgrade to their existing system. A perfect example of that is tunable white. Having the ability to tune the color temperature from warm to cool is something that is just on the cusp of market introduction. In a few year’s time this may be the norm and the LED platforms we’re using in VersaForm are the same LED platforms we’re looking at for tunable white. This is just one of the many possibilities LED lighting will offer in the very near future. The good news from your customer’s perspective is they now don’t have to choose when to enter the market. They can convert to LED now and in a few year’s time if new technology comes along they don’t have to worry about an expensive upgrade.

Product Details Technology – Integrated Controls VersaForm also comes with the option of integrated Response Daylight sensors and Philips Actilume Occupancy sensors. Response, for those of you unfamiliar with this offering from Ledalite, is the option of integrated Daylight sensors. The way Response work is the oculus, pictured here on the left, essentially “reads” brightness below the luminaire. And, if the amount of light below the luminaire from all sources is above the sensor threshold then the luminaire starts to dim to compensate. However, those of you with familiarity with Response can attest that the other main selling feature is that these sensors are pre-installed and pre-calibrated at the factory. They are designed to work right out of the box with no additional wiring or calibration in the field. This removes the need for a tremendous amount of calibration and coordination in the field that would otherwise be required. In addition to Response, we are also offering pre-installed Philips Actilume Occupancy sensors as an option. These too are pre-installed and calibrated at the factory. Wired directly to the driver, this sensor dims the fixture to approximately 20% of total output when no presence is detected. Delay time can be set from 1-30 min. The factory default time delay will be set at 15min. A further option would be to wire the sensor to switchbox which will then switch the fixture off when no presence is detected. This option, however, is not the factory default and must be ordered as an ETO (engineered to order) modification. Finally, included with the Philips Actilume Occupancy sensor is a field enabled daylight sensor. For those customers who want the dual functionality of dimming for daylight and dimming for occupancy, the daylight sensor can be field enabled with a simple press and hold of the center button.

Product Details Options 3 sizes: 2x2, 1x4, 2x4 T-Grid and Slot Grid ceilings Static and Air Return 3000, 3500, 4000K CRI >80, >90 (3500K) 3000, 4000lm (2x2, 1x4) 4000, 5200, 6800lm (2x4) Chicago plenum 120 - 347V Integrated battery packs Response Daylight and Philips Actilume Occupancy sensors No charge dimming (0-10V) So, let’s take a break from talking about technology and focus our attention back to the range of options available with VersaForm. These options include…

Product Details Applications - Classroom Hidden slide

Product Details Applications – Open Office Now, let’s take a look at a few specific examples of VersaForm in action. Here’s a review of an open office installation with fixtures spaced 8’x10’ on center. The fixture we’re using in this example is the 2x2, 4000lm (nominal), 3500K. Average light levels at 2.5’ is 37fc. Workplane uniformity is 1.84 max:min And energy density is 0.52W/sq ft. Well below ASHRAE or Title 24 standards.

Product Details Applications – Health Care Here’s a review of a hospital installation with fixtures spaced 12’ o.c. perpendicular to the corridor. The fixture we are using in this illustration is the 2x4, 5200lm, 4000K. Average light levels at the floor is 29fc. Workplane uniformity, again at the floor, is 1.83. We’ve used average to min here to follow ASHRAE recommendations. Finally, energy density is 0.43W/sq ft. Again, well below ASHRAE guidelines.

Product Overview How to Win Win on Performance: high efficacy + wide spacing criteria = low LPDs Win on Aesthetics: clean, homogenous, fully luminous appearance Win on Versatility – all 3 main sizes (2x2, 1x4, 2x4), multiple lumen packages, color temps, 80 and 90 CRI, all ceiling types Win on a complete Philips system: Philips platform LEDs, Philips platform driver, Philips luminaire and optics, Philips integrated controls options Win on ease of maintenance and upgradability Win on Peace of Mind: Lighting facts, DLC, 3rd party verified photometry and testing Win on $$ and sense: Low LPDs + Ease of maintenance + Integrated controls + Long life = Low TCO Now, before we get into specific competitor analysis here a summary of all the ways to win with VersaForm…

Product Overview Competitive Analysis To help better position our product and in competitive situations we have created the following competitive overview. Rather than going through every point I’ll highlight a few… Fixture sizes: you will notice not every competitor will offer their product in all three main runner sizes: 1x4, 2x2 and 2x4

Product Overview Competitive Analysis - From a distribution, spacing and efficacy standpoint we also lead. In terms of mounting VersaForm comes in both 15/16”, 9/16” and surface mount. In terms of available lumen packages we also lead with the availability of 90CRI and 3000-6800 lumens delivered.

Product Overview Competitive Summary – Performance VersaForm Peak distribution at 35 degrees 36W per luminaire 1.29 max:min No wasted light below luminaire The following illustrates our performance against some of our competitors. Based on 10x10 spacing and a 9’ mounting height you will notice the performance distribution of the luminaire achieves a nice balance throughout the selected area. Directly under the luminaire we are delivering 40fc versus 31fc in the middle of all luminaires for a 1.29 max to min ratio. Again, this is achieved by our strong batwing distribution which distributes more light out to 35degrees vertical versus directly below the luminaire. And, the energy consumption required to deliver this amount of light is 36W per luminaire.

Product Overview Competitive Summary – Performance Competition Peak distribution at 0 degrees 46W per luminaire 2.26 max:min Wasted light below luminaire 13% less light between luminaires 22% more energy In contrast you will notice how the competitors fixture delivers the majority of light directly below the luminaire. This is illustrated in the candela distribution curve on the right. This is typical of luminaires that have the LED boards down the middle of the optical cavity. In order to achieve higher efficacy they sacrifice performance for distribution and simply shine the LED boards straight at the lens. The result is a lot of unwanted light directly below the luminaire. In this case, they are delivering 58fc below the luminaire as opposed to our 40fc. This is too much light for most applications. However, in contrast to the high levels below the luminaire they aren’t delivering enough light between luminaires. Another way to look at it is they have to over compensate below the luminaire in order to get enough light between luminaires. The result is a much higher max to min ratio, 13% less light between luminaires and 22% higher energy consumption. Yes, when you look at a cut sheet the may look similar, and your competition is going to dress them up as the same, but they’re not. Performance matters for our audience so be confident in our performance. No body will challenge you on this point.

Product Overview Pricing and CSO 2x2 pricing starts at $220 USD All prices DN, for base configurations CSO lead time: 4 weeks shipping from factory from released order Inventory to support all main runner types right away Finally, a few items to finish off. In terms of pricing, our 2x2 offering starts at $220 DN, the 1x4 starts at $250 DN and the 2x4 starts at $290 DN for base configurations. In terms of lead time, VersaForm is available for order now with a standard 4 week lead time. And, we have inventory to support all main runner types right away.

Marketing and Support Materials Literature and others Brochure and technical bulletin: ProLibrary and Hart Hankes www.plliterature.com Spec sheets ies files Revit files Product Images Application images Install instructions Sales presentation www.philips.com/VersaFormLED LightXpress and SAP loaded and ready Other marketing and sales related materials…

Marketing and Support Materials Sales Kits All main sales offices receiving samples On-demand samples available from Ledalite factory Sample kit includes 2x2 3000lm, 3500K Integrated Response DS Cord and plug with dimmer switch Table cloth Display hooks and feet stands Demo instructions A few notes on sales kits…

FAQs ? Why haven’t you used MesoOptics We primarily use MesoOptics when cut-off is most important. In this case, the Light Guide technology we’ve engineered has structures to achieve a slightly wider distribution for wider row spacing. It is for this reasons we chose to use Light Guide technology. ? Why haven’t you used MesoOptics We wanted to achieve a very clean, homogenous aesthetic. We know this is very popular in design today. That is the reason we haven’t used hard rails in the lens frame. We also needed some central element for structural support – especially in a 2x4. We also liked how the vertical wall of the center channel provides just a hint of brightness. ? Why have you chosen to do an aesthetic similar to Vectra Samples are shipping in three Waves. Some offices in Wave 1 should already have samples. Wave 2 and 3 are shipping next week and the week after. ? When will all offices receive their sales samples The IES recently issued a technical memorandum for projecting long term lumen maintenance of LED sources. It essentially said projected lifetime claims beyond 6x measured test data does not have any practical or meaningful value and are therefore removed from the reporting tables. Reported Lumen Maintenance life will be limited to 6x the total test duration. The lumen maintenance as reported according to IES TM-21 is therefore L70 (9K) > 54Kh. ? What is the lumen maintenance claim of the LEDs DLC, Yes. All configurations. Energy Star, No. Energy Star is only applicable to residential luminaires. All of our products are sold through the Professional channel. ? Is VersaForm Energy Star and DLC compliant. Lastly, we created the following FAQs in anticipation of questions you may receive in the field….

For questions, please email Don.Jacklin@philips.com