The LED Lighting Revolution Greg Merritt Vice President Cree, Inc. January , 2011
Cree – Company Overview
Founded in 1987
Global Reach
•Public since 1993 (Nasdaq: CREE) •Headquartered in Durham, NC •1700+ patents
•11 Major Locations •4,500 Employees •Fiscal 2010 Revenues $867M
Copyright © 2011, Cree, Inc.
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Cree LED Lighting Strategy Market Opportunity LED Lighting
LED Components
LED Chips
Materials
Copyright © 2011, Cree, Inc.
LED Lighting g g • Lead the market & accelerate adoption • Create demand/pull for g g LED lighting LED Components • Drive Revenue • Enable the market with “lighting-class” LEDs LED Chips • Technology Technolog to enable components
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Company Mission
Lead the LED Lighting Revolution and obsolete energy-inefficient lighting
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Leading the LED Lighting Revolution 2002
2008
Introduced 1st XBright® LED power chip
1989
Demonstrated record 161 lumens/Watt from LED component
2006
Commercialized the first blue LED
1987
Cree founded
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Set record of 208 lumens/Watt for a white power LED
First “Lighting-Class” LED components
1995
Blue Bl LEDs LED designed into VW
2010
2009 2004
First XLamp LEDs brought to market
2007
1st commercially-viable i ll i bl LED downlight introduced (LR6)
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Launched LED PAR38 Lamp with unrivaled color and efficacy
Where is LED Lighting Today?
Portable
Architectural
Specialty
Established
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Parking/Street
Down Lights
Task
Landscape
Maturing
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Commercial
Commercial Residential
Ongoing
LEDs for Lighting - Why now ?
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LEDs for Lighting - Why Now ? K R Key Reasons: 1 Rapid improvements in LED technology 1. 2. Continuous LED price declines 3. LEDs are energy efficient 4. Strong government programs 5. Deployment is happening
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Rapid Improvements in LED Technology 260 240
Theoretical maximum for LED
/Watt) Cool White C e (lumens/
220
208 LPW
200
R&D Capability
180
186 LPW 161 LPW
160 140 120 100 80 60 40 20
131 LPW
3 yrs
XM XP-G
XP-E XP E
HID XR-E
Fluorescent
High Volume Production
XR-E
CFL LED Incandescent
0 2003 2004 2005 2006 2007 2008 2009 2010 2011 2012 2013 2014 Copyright © 2011, Cree, Inc.
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Continuous LED Price Declines
Lighting Adoption Zone
Different lighting applications turn on at different LED cost/lumen points Copyright © 2010, Cree, Inc.
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LED Technology Advances have a big impact… Cree LR6
Cree CR6
2007
2010
• 42 LEDs • 650 lm • 12W
• 8 LEDs • 650 lm • $100 Commercial Wholesale Copyright © 2011, Cree, Inc.
40% energy savings 140,000 street lights Payback = 7 years $10M savings per year
Courtesy of BetaLED Copyright © 2011, Cree, Inc.
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Walmart – U.S.
• 650+ store deployment in year one • Replacing p g 70-watt bulbs with 12-watt LED lamps • Eliminates hazardous mercury • Superior color quality
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Raleigh, NC Raleigh Convention Center
49% less energy than HID Payback in just over 3 years Estimated $636k savings over 15 years Courtesy of BetaLED
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University of California - Davis 80% Energy Savings Bi-level Outdoor Lighting g g
Courtesy of BetaLED
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Arezzo, Italy 61% Energy Savings < 3 year Payback
Courtesy of BetaLED Copyright © 2011, Cree, Inc.
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Seminar Hall of Cree Huizhou SSL Co., Ltd.
74% %e energy e gy sa savings gs Copyright © 2011, Cree, Inc.
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Ann Arbor, MI
1,300 1 300 Downtown Fixtures 53% Energy Savings 4.4 yrs. payback
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LED Lighting is Happening www.creeledrevolution.com
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