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NualightOctober 2010

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Meeting the challenge of low energy lighting by 2020

Artificial light sourcesNualight

history, business model, customersLighting, energy saving, carbonSome macroeconomic considerations

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Sunlight versus the bulb

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Artificial sources of light

Main mechanismsIncandescence (hot)Luminescence (cold)

electro-, chemo-, fluoro-, ......Source types

Bulbsincandescent, fluorescent, halogen, halide, HID, ....

Solid stateLED, OLED

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Incandescent Bulb1. Glass  bulb  2. Low  pressure  inert  gas  (argon,  

neon,  nitrogen)  3. Tungsten  filament  4. Contact  wire  (goes  out  of  stem)  5. Contact  wire  (goes  into  stem)  6. Support  wires  7. Stem  (glass  mount)  8. Contact  wire  (goes  out  of  stem)  9. Cap  (sleeve)  10.Insulation11.Electrical  contact  

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Typical bulbs used in retail

Halogen light bulbInefficient (~20 lm/w)Radiates high levels of heatShort lifetime typically ~3000 hoursHigh level of infant mortality

Fluorescent TubeRadiates UVHot TerminalsShort lifetimeRapid agingBroadcasts Light Fragile

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Source efficienciesType Overall  luminous  efficiency Overall  luminous  efficacy  (lm/W)

40  W  tungsten  incandescent 1.9% 12.6

60  W  tungsten  incandescent 2.1% 14.5

100  W  tungsten  incandescent 2.6% 17.5

glass  halogen 2.3% 16

quartz  halogen 3.5% 24

high-­‐temperature  incandescent 5.1% 35

ideal  black-­‐body  radiator  at  4000 K 7.0% 47.5

ideal  black-­‐body  radiator  at  7000 K 14% 95

ideal  555 nm  (green)  source 100% 683

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Historical usage (Tsao et al.)

1850 1900 1950 2000 2050 10-2

10-1

100

101

102

103

White Light

Power C

onversion

ZnSe

AlGaInN+AlGaInP?

5%

25%

50%

FilteredIncande-scence

TungstenFilament

CarbonFilament

Kerosene

Gas Mantle

Oil

Gas

AlGaInN+Phosphor

AlGaInN

GaAsP:N

AlGaInN

SiC

AlGaInP

DH AlGaAs

AlGaAsGaAsP:N

GaP:Zn,O

Solid-StateLighting

Fluorescence/HID

Incandescence

Lum

inou

s Ef

ficac

y (lm

/W)

Year

Fire

GaAsP

100%

Compiled by JY Tsao (Sandia Labs) using data from:A Bergh, et al, Physics Today 54, 42-47 (DEC 2001);JY Tsao, Ed., Light Emitting Diodes (LEDs) for General Illumination Update 2002 (OIDA, Sep 2002);N Nakayama, et al, Optical Review 2, 167-170 (1995); JA Edmond, et al, Physica B185, 453 (1993);R Haitz, et al, The Case for a National Research Program on Semiconductor Lighting (OIDA, Oct 1999);WD Nordhaus, in The Economics of New Goods, TF Breshnahan and RJ Gordon, Eds. (U of Chicago Press, 1997), pp. 29-70

0.25%

999

Nualight

Performance-Enhancing LED Lighting Systems for Food Retailers

Focus on Food Retail

Top 100 Retailers

Key OEMs display case mfrs

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save energy for supermarkets

reduce their carbon footprint

save operating expenses

improve product presentation

increase sales

what do we do?

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why is this important?

Food retailers use significantly more electricity than other industry sectors

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Refrigerated displays are 60% of grocers energy bill

Fluorescent lighting is15% - 25% of the energy used in refrigerated food displays

Waste heat from fluorescents increases refrigerator load and cost

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how can LED help?

LED saves lighting (and refrigeration) costs by 60% to 70% in refrigerated/frozen display cases

LED lighting increases product sales

LED installations can be part funded by utility rebates

LED retrofits give payback of 2-4 years

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Prodega, Switzerland

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Tesco Europe

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Nualight Market SnapshotRefrigerated Food Retail Displays

oAccount for 60% of retailer energy billsoTraditionally lit by inefficient fluorescent tubesoCan reduce cost of illuminating these by 60%oCan achieve 2 3 year payback in refrigerated environments

Top 15 Eu Food Retailers have 83,000 StoresMajor Competitors

oUSA: GE Europe: Philips

NualightoUSP: product, focus, service, flexibilityoApprovals: Tesco, Migros, Coop, Tenglemann, Rewe, Edeka, Starbucks, .oOEM design wins: KW, Carrier, EPTA, Carter, Schott Termofrost, ...oMajor Private Label Deals: Germany, USA

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LED lighting has made great strides in brightness and cost

0

20

40

60

80

100

120

140

0

0.005

0.01

0.015

0.02

0.025

0.03

2007 2008 2009 2010 2011 2012 2013 2014 2015

Cost of LED per lumen and LED efficacy

Cos

tin

/ Lum

en

Year

Actual - based on average of LED cost and performance Estimated

LED

effi

cacy

in L

umen

/ W

att

Lumen / Watt

/ Lumen

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Market adoption is accelerating

0%

10%

20%

30%

40%

50%

60%

70%

80%

90%

100%

0.0

50.0

100.0

150.0

200.0

250.0

2009 2010 2011 2012 2013 2014

pene

trat

ion

of n

ew c

ase

ship

men

ts

(LED

) m

arke

t siz

e m

p.a

.Refrigerated display lighting market in major supermarkets

North America & Western Europe

new cases NA

retrofit NA

new cases EU

retrofit EU

frozen

chilled

Source: CCC/company estimates based on industry sources

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we partner with industry majors

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products must be flexible -form factor, brightness, colour, cost

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key customer winsTesco (international)

6m Retrofit & New StoresChilled Canopy & Undershelf productsStores in USA, and now rolling in 5 countriesin EuropeDecision factors Performance & ResponseBeat all major US competitors incl. GE

Migros Switzerland1.5m Retrofit & New Stores

Freezer & Chiller Door productsStores in SwitzerlandDecision factors Quality & PerformanceBeat Incumbent Supplier Philips & Zumtobel

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major clients

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our business model

Retrofit / Joint SpecificationRetailer

Factory Fit / Co- design new casesOEM

License differentiated designs e.g. jewellery sectorPrivate Label

Europe:Nualight Cork Capacity 240,000 (In-House) 2010CEM Cork Capacity 240,000 (Out-source) 2010 CEM Hungary Capacity 320,000 (Out-source) / 2011/12

North America:USA Capacity 450,000 (Out-source) 2010Mexico Capacity 500,000 (Out-source) 2012

Multiple Market Channels

Flexible manufacturing base - outsourced and in-house

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Financial performance - steady acceleration over the past six quarters- grew revenues by 2x in 2009, by 3x in 2010- currently shipping 3000 fixtures per week

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further growth targeted from expansion in core market and new, adjacent sectors

Supermarket Food RetailOngoing growth in frozen, refrigerated lighting (frozen, dairy)New adoption in non-refrigerated lighting (fruit & veg, meat)New adoption in non-food (cosmetics, etc) New markets Eastern Europe, Australia

Food ServicePetrol station food displayCatering (Starbucks, etc)Convenience stores

Other RetailFurther growth in existing jewellery lighting lineWill explore other niches e.g. shoes, clothing

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supported by ongoing innovation in new products

Thin Line (12 mm) light,integrated into shelf

Fruit & vegetable lighting

Spotlight for jewellery, fashion

Lightstick Product Family for jewellery, fashion

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Case Study: Freezer LED

Fluorescents replaced by LED.110 supermarkets in RoI.6600 freezer doorsE-Tender:-Competitive Pricing.LED evaluation in Switzerland.Capital Cost 980,000.Saving 285,000 p.a..Saving 1.9M KWhrs p.a..Payback 3.18 YearsCO2 Saving 1085 Tonnes/Year7 Month Roll Out.

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Carbon potential in round numbers, savings per annum

100 food stores, freezers only, 1000 tonnes100 food stores, all displays, 3000 tonnesTop 15 food retailers in Europe have 83,000 stores, 2.5 million tonnes250,000 food retailers in Europe and USA, 7.5 million tonnes

Nualight currently shipping 3000 fixtures per week, - 10,000 tonnes of CO2 saved p.a. by customers

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per capita Consumption of Light:(Mlmh/[per-yr])

Earth at Night (courtesy of NASA)

MillsWRLD-NONGRID 1999: 0.043

IEAWRLD-GRID 2005: 32.9

Fouquet & PearsonUK2000 Inc+Flu+HID: 46.41950 Inc: 5.01900 Gas+Ker: 0.271850 Gas+Can: 0.0131800 Can+Oil: 0.00271750 Can: 0.00061700 Can: 0.00058

IEAAU+NZ 2005: 63.4

IEAFSU 2000: 38.7IEA

OECD-EU 2005: 45.9

IEAJP+KR 2005: 71.9

CNLi 2006: 16.4IEA 2005: 13.4Mills 1993: 2.7Navigant

US 2001: 136

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= ·(gdp/CoL) after Tsao et al.

1.E-05

1.E-02

1.E+01

1.E+04

1.E-05 1.E-02 1.E+01 1.E+04

phi (PPP model) Mlmh/(per-yr)

phi (

data

) Mlm

h/(p

er-y

r)

10-5 10-2 101 104

·gdp/CoL [Mlmh/(per-yr)]

[Mlm

h/(p

er-y

r)] 104

101

10-2

10-5

CN 1993

WRLD-UNDEV 1999

WRLD-DEV 2005

UK 1800 UK 1850

UK 1750UK 1700

UK 1900

UK 1950

UK 2000

AU+NZ 2005

FSU 2000

OECD-EU 2005

JP+KR 2005

CN 2005CN 2006

US 2001

105.4

0.0072

R2 = 0.986

Candles

GasKerosene

HIDFluorescentIncandescent

SSL

Consistent with having unit elasticity with respect to gdp and CoLOver empirical data spanning many orders of magnitude

5.4 in 4.3 in CoL1.4 in gdp3 centuries6 continents5 technologies

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If the future is like the pastWe will not use the better efficacy to best effect.Increased efficacy will result in more energy production and higher gdpMust increase COE enough to maintain gdp and reduce energy production

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In Summary

New technology is providing substantially more efficient sources of artificial light.This can significantly reduce energy consumption for lightingLighting is essentially a productivity enhancerRegulation will determine whether the net result will be higher productivity or reduced demand for energy.

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Questions