Aftermarket Europe"Why" PhilipsAugust 01, 2007

The n°1 worldwide in Automotive Lighting

CONFIDENTIAL 2Aftermarket Europe, August 01, 2007, Pascal Rolland

The Leader in Innovation – From The Beginning

• Since 2000 Philips has a history of continuous aftermarket innovation:

– Vision Plus in 2000: the first upgrade on the market with +50% more light on the road and a beam up to 20 meters longer than a standard lamp

CONFIDENTIAL 3Aftermarket Europe, August 01, 2007, Pascal Rolland

The Leader in Innovation – From The Beginning

– Nightguide Double Life in 2006: the first upgrade with the 3-color safety technology + the 50% more light and a beam up to 20 meters longer

• 1: Security Zone• 2: Information zone• 3: Comfort zone

– X-treme Power in 2006: The first upgrade with 80% more light on the road and a beam up to 25 meters longer + the longest life time for a high performance bulb

CONFIDENTIAL 4Aftermarket Europe, August 01, 2007, Pascal Rolland

The Leader in Innovation – From The Beginning

• This leadership is what has made Philips n° 1 in the market and the preferred choice of the world’s biggest carmakers

CONFIDENTIAL 5Aftermarket Europe, August 01, 2007, Pascal Rolland

Uncompromising Performance

• Philips products are developed to Uncompromising standards of Performance & Technology:

– Philips achieves the highest combination of light output and lifetime thanks to:

• Quartz technology uses to protect your sight from shocks, water and even harmful UV rays• + Superior filament technology & positioning for optimal lighting• + New gas composition

• Other (even the so-called “performance”) lamps make compromises:

– They can only provide more light briefly at the expense of lifetime– They use ordinary glass to “protect” your bulbs– They do not innovate, they imitate and therefore are always behind

Only Philips provides: the Highest combination of Light output and Lifetime

at the Highest Standard of Quality

CONFIDENTIAL 6Aftermarket Europe, August 01, 2007, Pascal Rolland

A comprehensive range aimed at the needs of consumersOriginal Quality

• Original Quality lamps are aimed at consumers who have a functional relationship with their cars. They seek simplicity and will choose replacement parts based on price, reliability and practicality. The Philips Original Quality range provides a simple solution: superior everyday products at a great value

– Premium– LongerLife

Safety Vision

• The Safety Vision range is for drivers who look for a safe and stress-free driving experience. The lamps in our Safety Vision range increase comfort and reduce stress by providing a comforting cocoon of safety. Our NightGuide headlamp is specially engineered to make night-time driving easier and more comfortable

– Vision Plus– NightGuide DoubleLife

Performance & Style

• For consumers who are passionate about their cars. Consumers looking for the most advanced or the most stylish products for their cars - from stunning Xenon effect lamps to the highest performance headlamp on the market today - will find their every wish fulfilled in our Performance & Style range

– Power2night– Blue Vision– X-treme Power

CONFIDENTIAL 7Aftermarket Europe, August 01, 2007, Pascal Rolland

The Performance & Style Audience

• Who are they? – People who are passionate about their cars!– They are the trend setters and the early adopters of the market

• What are they looking for?– They are looking for powerful bulbs with a stylish effect

• What is the size of this segment?– The Performance & Style consumers represent more than 30% of

the market

• What are their spending habits?– They are the ones who spend the most money on their car– They represent the highest profit and growth potential in the

category

CONFIDENTIAL 8Aftermarket Europe, August 01, 2007, Pascal Rolland

Safety Vision: NightGuide

• A success!

CONFIDENTIAL 9Aftermarket Europe, August 01, 2007, Pascal Rolland

Safety Vision: NightGuide DoubleLife

• Advanced: – Through technological expertise we achieved

• Improved geometrical filament design • New gas composition and adapted pressure • Optical finishing of glass tubes

Provides improved bulb performance that provides more lifetimeWithout losing any performance !

• Designed around you: – Based on in-depth consumer research in our key European markets, the unique

proposition of NightGuide was refined to a simple, consumer preferred explanation:

From 3-in-1 Safety TechnologyTo 3-Color Safety

• Easy to experience:– Consumer benefits are instantly identifiable and can be experienced longer...

CONFIDENTIAL 10Aftermarket Europe, August 01, 2007, Pascal Rolland

• The right NightGuide Double Life For Every Vehicle:

– H7r, H7s: new coating for more color effect

– H4 and H1

Safety Vision: NightGuide DoubleLife

H7s for Projectors

H7r for Reflectors

CONFIDENTIAL 11Aftermarket Europe, August 01, 2007, Pascal Rolland

The Philips Marketing Advantage

• Philips is the winner in store with its Marketing Advantage:

– Innovative high performance products– Consumer preferred packaging & merchandising design– A comprehensive range for all consumers’ needs:

• Original-Quality, Safety-Vision and Performance-Style– Category Management

Maximum Performance is far more than just a little extra brightness!