An Another One Bites the Dust! Susan Isenhour Anderson Manager of Energy Relations OSRAM SYLVANIA April 2012
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1 An Another One Bites the Dust! Susan Isenhour Anderson Manager of Energy Relations OSRAM SYLVANIA April 2012
2 Disclaimer for external presentations in the United States: This document constitutes neither an offer to sell nor a solicitation to buy or subscribe for securities. Any such offer will be made solely on the basis of the Securities Prospectus yet to be approved by the German Financial Supervisory Authority (BaFin) and published thereafter. The information legally required to be provided to investors will be contained only in the Securities Prospectus. The information contained herein is not for distribution, directly or indirectly, in or into the United States of America (including its territories and possessions of any State of the United States of America or the District of Columbia) and must not be distributed to U.S. persons (as defined in Regulation S under the U.S. Securities Act of 1933, as amended ("Securities Act")) or publications with a general circulation in the United States of America. This document is not an offer of securities for sale in the United States of America. The securities have not been and will not be registered under the Securities Act and may not be offered or sold in the United States of America absent registration or an exemption from registration under the Securities Act. The Issuer does not intend to register any portion of the offering in the United States of America or to conduct a public offering of the securities in the United States of America. This document is not an offer of securities for sale in the United Kingdom, Canada, Japan or Australia. Page 2
3 New U.S. DOE Fluorescent Ballast Standards
4 2011 DOE Fluorescent Ballast Rulemaking Finalized November 14, 2011 Effective November 14, 2014 Sets standards that replace those originally established by the 2000 DOE Rulemaking that were updated by the EPAct 2005 Legislation Covers fluorescent ballasts that Operate at a nominal input voltages at or between 120V or 277V Operate at input current frequency of 60 Hz (to the ballast) Operate the designated miniature bi-pin, medium bi-pin, single pin and RDC based fluorescent lamp types (see next slide) Requirements Non-residential ballasts: Power factor Page 4
5 2011 DOE Fluorescent Ballast Rulemaking Covers ballasts that operate miniature bi-pin lamps (T5) and medium bi-pin lamps (T8 and T12) as follows: IS and RS Ballasts (not residential) that operate 4ft MBP, 2ft U MBP, 8ft Slimline SP PS Ballasts (not residential) that operate 4ft MBP, 2ft U, 4 ft Mini BP Standard and HO IS and RS Ballasts (not sign) that operate 8 ft High Output PS Ballasts (not sign) that operate 8ft High Output Sign Ballasts that operate 8ft High Output IS and RS residential that operate 4ft MBP, 2ft U MBP, 8ft Slimline SP PS residential that operate 4ft MBP, 2ft U MBP Each category has a different formula based on lamp arc power Based on high frequency operation Adjustment factors are provided for low frequency ballasts (60Hz to the lamps) Page 5
6 2011 DOE Fluorescent Ballast Rulemaking: BLE Minimum Values Page 6
7 2011 DOE Fluorescent Ballast Rulemaking: Frequency Adjustment Factors Page 7
8 2011 DOE Fluorescent Ballast Rulemaking Exempted Ballast Types Ballasts designed for dimming to 50% or less of maximum output Provides separate BLE standards for T12 dimming ballasts Low frequency (60 Hz) T8 ballasts that is Labeled and marketed for use in EMI-sensitive environments and Is shipped in packages of 10 or fewer ballasts Programmed Start ballast that operates 4-ft. medium bi-pin lamps that delivers < 140 ma to each lamp Page 8
9 2011 DOE Fluorescent Ballast Rulemaking OSRAM SYLVANIA is evaluating our ballast offering to determine which ballasts meet the new standards. (We re lookin good!) Product Marketing can provide specific information. For the time being, use the highest efficiency T8 and T5 fluorescent ballasts. NEMA Premium for T8 Pair them with OCTRON 700XP, 800, 800XV, 800XP, 800XP/SS and 800XPS or the PENTRON T5 families lamps and the appropriate controls. Speaking of Lamps, don t forget that new fluorescent lamp standards go into effect July 14, 2012 Page 9
10 Don t Forget 2009 U.S. DOE GSFL & IRL Lamp Rulemaking
11 General Information 2009 DOE Lamp Rule Making Covers basically the same lamp families covered by EPAct 1992 Incandescent (& Halogen) Reflector Lamps (IRL) General Service Fluorescent Lamps (GSFL) Declared that the R20, BR30, ER30, BR40 and ER40 lamps exempted by EISA 2007 continue to be exempt Adds 4-ft. T5 standard and HO fluorescent lamps with miniature bi-pin bases Process started in 2007 Published in the Federal Register on July 14, 2009 Became final on September 14, 2009 Effective date to be in July 14, years after publication in the Federal Register Page 11
12 GSFL Standards Lamp Type 4-Foot (T8-T12) Medium Bi-pin 圵 Correlated Color Temperature Energy Conservation Standard lm/w Page 12
13 Key Impacts on T12 GSFL Industry in General T12 4-ft. & 2-ft U-lamps with medium bi-pin bases Majority of today s F40 and F34T12 lamps and all FB40 and FB34T12 U-lamps fail A very few very high lumen rare earth phosphor lamps will pass Exemption for lamps with CRI 㜸 坃 塄䐯䝓㕎 㕃 㝃 T12 8-ft. Slimline with single pin bases All of today s 75W F96T12 lamps fail All of today s 60W F96T12/ES fail except for a few 700/SP & 800/SPX lamps Exemption for lamps with CRI 㜸 坃 塄䐯䝓㕎 㕃 㝃 T12 8-ft. 800mA HO with RDC bases All of today s 110W F96T12 HO lamps fail; requires 10,120 lumens to pass All of today s 95W F96T12/ES/HO fail; requires 8740 lumens to pass Exemption for lamps with CRI 㜸 坃 塄䐯䝓㕎 㕃 㝃 Exemption for F96T12/CW/HO/CT & D/HO/CT (Cold Temperature) Page 13
14 Key Impacts on T8 & T5 GSFL Industry in General T8 4-ft. & 2-ft. U-lamps with medium bi-pin bases All 4-ft. T8 basic 700 Series 2800 lumens fail All other 4-ft. pass Some 700 Series 2 ft. U-lamps pass (Sylvania s); all 2-ft. 800 Series U-lamps pass T8 8-ft. Slimline with single pin bases All pass except some 700 Series; requires W to pass T8 8-ft. HO with RDC bases All pass except some 700 Series; requires W to pass T5 4-ft with miniature bi-pin bases All pass Intent of T5 standard is to keep lesser performing lamps out of the U.S. market Page 14
15 Be Pro-Active Today These fluorescent lamps meet the 2012 standards and are available today T8 OCTRON : 700XP, 800, 800XP, 800XP/SS, 800XPS and the new 800XV T5 PENTRON : T5 standard and T5 HO Pair them with High efficiency ballasts that meet the new standards Controls that help further reduce energy usage Start saving $$$ today Page 15
16 OCTRON 800 XV ECOLOGIC and OCTRON 800 XV SUPERSAVER ECOLOGIC EXtended Value T8 Fluorescent Lamps Specification quality 4-foot T8 lamps with optimized phosphor blends Realize up to 96% lumens of premium OCTRON T8 lamps 94% lumen maintenance Long lamp life platform reduces lighting maintenance costs 40,000 hour 12 hours/start (instant start) 42,000 hour 12 hours/start (PROStart ) Meet new GSFL standards issued by DOE in effect 7/14/2012 Up to 83 CRI QUICK 60+ System Warranty with QUICKTRONIC electronic ballasts RoHS & TCLP-compliant, lead-free glass and made in USA New full wattage OCTRON XV and new OCTRON SUPERSAVER XV alternatives enhance total cost of ownership with energy savings: Up to 22% with the 25W XV/SS Up to 12.5% with the 28W XV/SS Up to 6.5% with the 30W XV/SS Product Offering Lamp Type Wattage CEE Qualified 1 CCT FO32/25W/800/XV/SS/ECO 25 Yes FO28/800/XV/SS/ECO 28 Yes 3000K,3500K, 4100K, FO30/800/XV/ECO 30 n/a 5000K Page 16 FO32/800/XV/ECO 32 n/a 1. CEE Reduced- Wattage T8 Specification
17 OCTRON 800 XV SUPERSAVER ECOLOGIC 8-Foot T8 Fluorescent Lamps EXtended Value, Energy Saving T8 Fluorescent Lamps Energy saving, optimized phosphor replacements for 700 & 800 Series F96T8 lamps 95% initial and mean lumens of 800XP/SS lamps XV SUPERSAVER energy savings vs. 59W T8 lamps Up to 15% with the 50W XP/SS Up to 7% with the 54W XP/SS Long life 24,000 hour 3 hours/start 36,000 hour 12 hours/start Reduce lighting maintenance costs 83 CRI QUICK 60+ System Warranty with QUICKTRONIC electronic ballasts RoHS & TCLP-compliant, lead-free glass, and made in USA Product Offering Lamp Type Wattage CCT FO96/54W/800/XV/SS/ECO K, 4100K FO96/50W/800/XV/SS/ECO K, 4100K Page 17
18 Delay Effective Date for New GSFL Standards? Because of the rare earth phosphor supply and cost issues, the NEMA Lamp companies asked if the DOE would delay the effective date currently set for July 14, The DOE has determined that they do not have the authority to delay the effective date. The NEMA Lamp Companies continue to pursue other legal options. For now, plan on the new standards going into effect as scheduled. Page 18
19 IRL General Information 2009 DOE Lamp Rule Making Covers Incandescent (& Halogen) Reflector Lamps (IRL) Specifically covers Halogen PAR lamps Declared that the R20, BR30, ER30, BR40 and ER40 lamps exempted by EISA 2007 continue to be exempt Page 19
20 IRL Standards Lamp Wattage Lamp Type Diameter Voltage Minimum LPW; expressed here as a range for 40W through 205W, as LPW is derived from a formula based on lamp watts 40W-205W Standard Spectrum > 2.5 inches (PAR30, PAR38, BR30 & ER30, BR40 & ER40) >2.25 inches & (130V) < 125 (120V) 6.8 X lamp watts to 31.9 LPW 5.9 X lamp watts to 27.6 LPW Page 20
21 Key Impacts on IRL Products Industry in General All of today s standard PAR halogen lamps will be eliminated. Likely that all 130V PAR halogen lamps will be eliminated. Only a few of today's halogen reflector lamps, e.g. PAR20, PAR30 and PAR38, can meet the standards in the Final Rule. In order to meet the new standards, reflector lamps will need to use new technologies such as advanced infrared (IR) coatings and optimized reflector coatings. IR coatings redirect wasted heat energy emitted by the lamp filament back to the filament, increasing the temperature of the filament, and thus enabling it to produce more light without increasing wattage. Optimized reflector coatings will more efficiently direct light produced by the lamp out of the lamp and into the space being illuminated. Other technology options are also being explored. The few existing lamps that meet the new standards are more expensive than the standard halogen lamps on the market today. While the initial cost of the new higher efficiency reflector lamps will be higher, the consumer should see a payback through reduced electrical bills depending on the amount of time the lamps are "on". Page 21
22 Halogen Post IRL Reflectors Sylvania Halogen CAPSYLITE reflector lamps directly replace the current portfolio with tiered lifetime choices while meeting all legislation requirements Tiered Lifetime Single Life Entry level value product Double Life Balances performance and price Triple Life Professional grade performance Energy Efficient Greater than 20% energy savings over current reflectors Meets all current and upcoming legislation Superior Light Quality Fully dimmable Vivid Color natural, pleasing light No warm-up time Applications Merchandising Accent Track Outdoor Flood Large Selection of Choices Balancing Price and Performance Page 22
23 Halogen PAR30LN Replacement Options - Product Comparison Example of Replacement Options for 75W PAR30LN: Halogen PAR Halogen PAR Double Life Halogen Single Life Halogen Double Life Halogen Triple Life Shape PAR30LN PAR30LN PAR30LN PAR30LN PAR30LN Wattage Lumens Life 2,500 5,000 1,500 3,000 4,500 CCT 2900K 2850K 2900K 2850K 2800K % Energy Savings 0% 0% 20% 20% 33% Technology Krypton + Aluminum Reflector Krypton + Aluminum Reflector Xenon + Silver Reflector Xenon + IR Capsule Xenon + IR Capsule + Silver Reflector Page 23
24 Halogen PAR38 Replacement Options - Product Comparison Example of Replacement Options for 90W PAR38: Halogen PAR Halogen Single Life Halogen Double Life Halogen Triple Life Shape PAR38 PAR38 PAR38 PAR38 Wattage Lumens Life 2,500 1,500 3,000 4,500 CCT 2925K 2925K 2875K 2825K % Energy Savings 0% 22% 22% 33% Technology Krypton + Aluminum Reflector Xenon + Silver Reflector Xenon + IR Capsule Xenon + IR Capsule + Silver Reflector Page 24
25 Just a Reminder
26 EISA 2007: General Service Incandescent Lamps Current Wattage Rated Lumen Ranges Maximum Rated Wattage Minimum Rated Lifetime Effective Date (Manufactured on or after) ,000 hours 1/1/ ,000 hours 1/1/ ,000 hours 1/1/ ,000 hours 1/1/2014 Medium screw base Modified spectrum (Daylight ) lamp lumen ranges are 25% lower Minimum of 80 CRI except for modified spectrum, which have a minimum of 75 CRI New compliant halogen lamps are available today Other options include CFLi and LED retrofit lamps Page 26
27 Energy Independence & Security Act (EISA) Halogen A-Shape General Purpose The Sylvania Halogen A-Shape lamps are an affordable incandescent replacement that meet all legislation, offer superior light quality, and provide tiered lifetime choices Energy Efficient Up to 33% energy savings over standard incandescent lighting Meets all current and upcoming legislation Superior Light Quality Fully dimmable Vivid Color natural, pleasing light No warm-up time Tiered Lifetime Single Life Low cost incandescent replacement Double Life Balances performance and price Triple Life Highest lumens and maximum energy savings Applications Anywhere incandescent are used Healthcare Hospitality Residential Affordable Energy Savings. Superior Light Quality. Page 27
28 Halogen A-Shape General Purpose - Product Comparison Examples of Replacement Options for 100W Incandescent A-Lamp: Incandescent Softwhite HALOGEN Softwhite HALOGEN DoubleLife HALOGEN TripleLife Shape A19 A17 A17 A17 Wattage Lumens * 1600 Life 1,000 1,000 2,000 3,000 CCT 2800K 3000K 2800K 2950K % Energy Savings 0% 28% 28% 30% *Modified Spectrum in the warm direction Page 28
29 HALOGEN SUPERSAVER Existing Indoor Reflector Lamps Product Attributes / Benefits: Energy Savings (22-33%) No mercury Instant on and dimmable High light quality 100CRI Made in the USA! Familiar shapes Meets Federal EISA 2007 requirements NAED Wattage Bulb Shape Replaced Wattage Lumens CRI Life Energy Savings R % BR % BR % * BR % *80W eliminated July, 2012 Page 30
30 What s Next?
31 112 th Congress ( ) S 398, The Implementation of National Consensus Appliance Agreement Act of 2011 Introduced by Senators Bingaman and Murkowski Section 19: Outdoor Lighting General purpose mercury vapor lamps shall not be manufactured (or imported) on or after 1/1/2016 Double Ended quartz halogen lamps >300W- 1500W manufactured (or imported) on or after 1/1/2016 shall comply with new LPW standards that require IR technology There are currently no provisions covering outdoor luminaires as in previous bills Page 33
32 DOE Rulemakings Metal Halide Luminaire Rulemaking Began in January 2010 Really a ballast efficiency rulemaking May expand range of wattages covered beyond w covered today Expected to be finalized in late 2012 and effective in 2015 HID Lamp Rulemaking Initial notice published April 27, 2010 with comments due May 27, 2010 Announcement discusses eliminating probe-start lamps Public hearing on test and measurement procedures held on January 19, 2012 Public Meeting on Framework scheduled for March 29, 2012 Projected to be finalized in July 2014 and effective in July 2017 BR-ER Lamp Rulemaking Covers lamp types exempted by EISA 2007 and 2009 DOE Lamp Rulemaking Expected to be effective in????? Page 34
33 DOE Rulemakings Announced new IRL and GSFL Rulemaking on August 31, 2011 IRL = Incandescent Reflector Lamp GSFL = General Service Fluorescent Framework document published August 31, 2011 Considering adding additional lamp families Pin-Based compact fluorescent Non-linear fluorescent lamps (e.g. Circline) Fluorescent lamps with alternate lengths (e.g. 2, 3 and 5-foot lamps) Initial workshop on October 4, 2011 Preliminary Analysis scheduled for September 2012 NOPR (Notice of Proposed Rule Making) scheduled for August 2013 Final Rule expected April 2014 Expected effective date: April 2017 Page 35
34 DOE Rulemakings Battery Chargers and External Power Supplies Announced March 27, 2012 Will cover SSL power supplies Effective July 1, 2013 LED Lamp Test Procedures Notice published in the Federal Register on April 9, 2012 Starting at the Notice of Proposed Rulemaking (NOPR) with testing proposals Public Meeting on May 3, 2012 Establishing a test procedure means a product performance standard is not far behind Page 36
35 Some Energy & Labeling Related Lighting Legislation, Regulations, and Specifications Color Coding Input into Rulemaking Rule Issued, Adjust Products Effective Date Energy & Labeling IRL Rules, DOE GSFL Rules, DOE Lamp Labeling Rule, FTC HID Lamp Rules, DOE Fluor. Ballast Rules, DOE MH Luminaire Rules, DOE GS Incan. Leg., US Energy Star, CFL screw base Energy Star, LED screw base Energy Star, Tech, Neutral ER.BR Exemptions End Buildings, ASHRAE 90.1 Buildings, CA Title 24 Applications, savings, CA Tier 1 (LPW) Tier 1 (LPW) Tier 2 (all technologies)) Tier 2 (LPW) GS Lamps Probe Start MH lamps targeted Tier 1 (LPW) T12, T8, T5 (Ballast Efficiency) MH Ballast Efficiency Tier 1 (100W out) 75 out 60, 40 out (45 LPW, all techs) v4.0 v1.1 v1.0 v2.0 v3.0 v4.0 LPW Energy reduction targets for Commercial Interior, Residential, and Outdoor; work with CEC Page 37
36 Thank you
2011 DOE Fluorescent Ballast Rulemaking. Susan Isenhour Anderson Manager of Energy Relations OSRAM SYLVANIA July 2012
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