Signify before Philips Lighting

Signify (till 2018 Philips Lighting) – the developer of lighting engineering and the integrated lighting systems and also rendering a range of services in the field of lighting. The company is the global leader of sales of energy efficient LED solutions as in consumer, and professional segments. Thanks to integration into Internet of Things of Signify turned light into the tool capable to change houses, buildings and city spaces.

Performance Indicators

In 2017 sales volume was 7 billion euros. In the company 32,000 employees more than in 70 countries work.

In 2016 sales volume was 7.1 billion euros. In the company 34,000 employees more than in 70 countries work.

2020

Acquisition of assets of Germicidal Lamps & Applications (GLA)

On July 7, 2020 it became known that the Signify company purchased assets of Germicidal Lamps & Applications (GLA) – the Netherlands company with experience in UV-C of disinfection. The transaction covers all solutions GLA for disinfecting of air in an upper part of the premises and also knowledge of their application. Read more here.

The plan of failure from plastic in packaging of consumer products

On June 10, 2020 it became known that Signify will refuse plastic in packaging of consumer products since 2021

Annually 8 million tons of plastic which destroys 1 million sea birds and threatens disappearances of 700 types of representatives of sea fauna get to the World Ocean. Plastic pollution became one of the most topical problems of the environment, and consumers treat more and more attentively what the goods are packed into.

Signify (Euronext: LIGHT), the company in the field of lighting, aims at decrease in impact of the products on ecology. For June, 2020 80% of packaging of lamps and lamps of Philips are made of the processed paper, and in 2021 the company will start the large-scale program for transition from plastic packaging to paper. So Signify will be possible to avoid use of 2.5 thousand tons of plastic a year. For comparison, 125 million PET-bottles of 0.5 l have the same weight. If to lay out them in a row, the line more than 8,000 km long – almost like a distance from Moscow to Vladivostok will turn out.

Besides, at production of packaging less materials will be used thanks to what it will become easier. Only in Europe it will help to reduce quantity of CO2 selected by transport by 6 thousand tons per year. Are as much capable to absorb 270 thousand adult trees.

For June, 2020 packaging of products of Signify more than for 80% consists of the processed paper, and primary materials undertake from the certified renewable sources. The company already began failure from plastic: in packagings of single lamps of Philips Hue there are no more plastic inserts which are used everywhere. Replacement of the blister packagings by paper boxes will be made for all product line in all regions of presence of the company. In the third quarter 2020 packaging of LED lamps in the European market will be updated, and eco-friendly boxes of paper will come to Russia in 2021.

Buyers say that packaging became more attractive and eco-friendly, – Eric Rondola, CEO Signify comments. – We urge other companies to join our initiative and we will be glad to share experience.

Failure from plastic in packaging is the next step in achievement of goals of sustainable development of the company and an important milestone of the program Brighter Lives, Better World. Signify surely moves to a zero balance of emissions of carbon which was already reached in 15 of 19 regions of presence.

2018: Renaming into Signify

In March, 2018 Philips Lighting announced change of the name with Signify. The new name emphasizes new opportunities of lighting. Light became smart today, it can integrate in systems, collect and transfer data and change ideas of light opportunities.

According to conditions of the License agreement with Royal Philips, the company will continue to turn out products under a brand of Philips – brands which enjoy the greatest confidence in the lighting world.

"We are glad to announce change of the company name – a step which will become a new stage on the way of our development, – the CEO of Philips Lighting, Eric Rondola commented. – The new name precisely reflects our strategic concept and gives the tremendous chance to provide the updated and unique corporate style which will integrate further our 32,000 employees. At the same time we are proud that we will continue to turn out products under a brand of Philips".

Change of the name Philips Lighting meets conditions of the License agreement with Royal Philips about a trade name according to which the company should replace a name if Royal Philips does not hold a controlling stake any more. In connection with change of the company name, the offer on introduction of amendments to the charter of Philips Lighting will be submitted at annual shareholder meeting which will pass on May 15, 2018. The exchange ticker of Philips Lighting remains invariable (Euronext: LIGHT).

2016

Selection in separate company and the IPO on the Euronext exchange

At the end of May, 2016 Philips brought to the exchange the division Lighting specializing in production of LED, halogen and fluorescent lamps and electronic components. The company separated from itself this business to focus on medical.

37.5 million shares Philips Lighting at the price of 20 euros apiece were placed on Euronext stock exchange that approximately corresponds to the middle of target range in 18.5-22.5 euros. Market capitalization of this company was estimated more than at 3 billion euros.

Philips carried out the IPO of light business for support of medical

Within the IPO the Philips company sold 25% of shares of division on release of lighting products, having retained the remained 75 percent share. However Philips intends to get rid of these securities within two years.

At initial public offering of business of Lighting which history began more than a century ago Philips was succeeded to attract 750 million euros.

According to specialists of the Dutch brokerage firm SNS Securities, Philips sold the share with rather big discount in comparison with other producers of the light equipment, like Osram Licht.

In general a certain discount makes sense as Philips wants that the offer was successful, and the company still has a majority share — noted in SNS Securities.

The output of Philips Lighting to the exchange became a part of the restructuring announced in 2014 within which the Dutch vendor integrated the divisions which are responsible for the medical equipment and consumer electronics. Then it became known of selection of the business connected with light solutions in separate legal structure. Its destiny was going to be decided in 2015, but it did not occur.

Only in April, 2016 Philips announced that it inclines to the IPO of the division of Philips Lighting, but not to its sale in parts.

Having got rid of this business, the company is going to concentrate on development the most profitable directions, such as Philips Healthcare.^[1]

Series of partnership agreements

Philips "Light Solutions" announced in March, 2016 the beginning of global partnership with Vodafone company on implementation of the wireless systems of street lighting. 530 projects based on management systems for city lighting of Philips CityTouch are already implemented in 33 countries of the world. They provide high quality of lighting, save the electric power to 70%, reduce operating costs and are a digital basis for creation of the "smart" cities, say in the company. Also at this time Philips "Light Solutions" provided a future infrastructure facility – Philips DigiStreet, the first street LED lamp equipped with slots for sensors and wireless communication.

Smart shops

The intelligent Indoor Positioning LED system with function of navigation in the enclosed space opens new opportunities for retail business for increase in sales and a customer loyalty. Philips "Light Solutions" announced in the spring of 2016 partnership with the American company Aisle411, the leader in the field of creation of interactive maps of shops, search of goods and drawing up consumer analytics. Cooperation will allow to implement an implementation project, the first in the Middle East, of the integrated Indoor Positioning lighting system for Aswaaq supermarket in the UAE.

Smart offices

Philips "Light Solutions" together with Cisco company presented in the spring of 2016 the solution for offices based on the integrated lighting systems of Philips and network systems of Cisco. Thanks to Power over Ethernet technology a system will be able to be connected to IT infrastructure and other engineering networks – ventilating and heating. The solution will allow employees to regulate lighting and temperature at office via the smartphone on the discretion. Use of advantages of the concept of Internet of Things will create more comfortable operating conditions and will bring an economic benefit to owners of buildings and heads of the enterprises.

Release of the innovation LED lamps

In 2016 the company released revolutionary lamps which will allow to look in a new way at halogen and classical glow lamps and also LEDs with function of a dimmirovaniye:

• Philips classic LED spot is the first glass LED the lamp capable to replace halogen lamps of accent lighting: they have usual appearance, but save 90% more electric power. Emergence of this product matches production reduction in Europe of GU10 halogen lamps in September, 2016.
• The new lamp of Philips SceneSwitch LED is unique the fact that it combines three modes of lighting and allows to select the necessary light one switching of the switch.
• Filamentny LED lamps of Philips classic LED are externally similar to classical and have the DimTone function which allows to muffle light and to configure warm lighting.

2011: 55 thousand employees in 60 countries

Лого компании

For 2011 Philips Light solutions is engaged in production:

• lamps — 44%
• LED components and modules — 5%
• lamps for the house — 6%
• the prof. of lamps — 17%
• automobile and special purposes of lamps — 14%
• light electronics — 14%

In Philips Lighting 55,000 employees worldwide in more than 60 countries work.

Philips Lighting proposes solutions for different scopes:

• shops
• offices
• hospitals
• industry
• outside lighting
• sporting venues

The technology of background illumination Ambilight was patented by Philips company (Royal Philips Electronics) and received several modifications.

So, technologies of background two-channel (Ambilight 2), three-channel (Ambilight Surround) and complete illumination (Ambilight Full Surround) create a scattered light which supplements colors and light intensity of the image.

Ambilight Spectra is the next step in development of Ambilight technology allowing to create the "volume" image. 126 LEDs create a light range which expands visually the image on the periphery of sight.

The Ambisound technology is developed by Philips company and allows to provide volume sounding at the smaller number of loudspeakers which is reached at the expense of the combined effect of vector processing, exact positioning of loudspeakers and a psychoacoustic phenomenon.

Moving Surround Sound This technology strengthens impressions of listening of audio or watching video using adding of "visual" parameter: upper loudspeakers with metal heads are equipped with the electric drive. The combination of moving loudspeakers creates effect of the sound directed to the listener and expands a sounding zone.

2007: Revenue of 6.1 billion euros

Philips Lighting turnover in 2007 made 6.1 billion euros which 4.9% are invested in research and development.

Notes