A presentation held on Finpro Market Opportunity Day on 22.10.2013

1. Business from Innovative Use of Light:
Market Opportunities for Lighting
Industry in Western Europe
Time to grasp the business
opportunity
Risto Huhta-Koivisto
Senior Consultant
Pekka Tolonen
VP, West Europe & Africa

2. Examples of successful Finnish businesses
10/25/2013
2
© Finpro

3. Drivers of the Market Opportunity
• Rising electricity prices in
Western Europe is a continuous
trend: Need to cut costs in
energy consumption.
• Energy efficiency directives by
EU create demand for new type
of energy efficient solutions and
expertise in lighting.
• Green city-type projects in most
EU countries.
Did you know: 8 billion light bulbs
will be changed to LEDs by the year
2020.
• State and municipal incentives to
improve the energy efficiency.
25/10/2013
© Finpro
3

4. New Customers: Western Europe is a Booming
Lighting Market
• Development way ahead
compared to Finland.
• Demand for new lighting
technology and solutions in
innovative LED lighting e.g. in
architectural sights, hospitality
business and lighting regulating
human, animal and plant
biorhythms.
– Greenhouse business using
increasingly LED lights.
25/10/2013
© Finpro
4

5. Opportunities in Greenhouse Business
Greenhouse sector growth continues. Ongoing trend of energy efficiency,
sustainability and productivity opens up markets.
•
Greenhouses offer a market not only for LED lighting but also for other
solutions in irrigation systems, cooling, ventilation and fertilization.
•
Dutch sector, leader in Europe, is a forerunner: Growers are concerned about
continuous improvement and government is subsidizing business to promote
competitiveness and sustainability.
– Old greenhouses are replaced and updated: new technologies, business
process improvement e.g. supply chain integration and marketing is
needed.

6. The Dutch Greenhouse Market
•
Horticultural market represents 4% of the Dutch economy, providing 24% of world supply.
In added value Dutch sector outperforms global average by 50%.
•
Greenhouses cover 0,5% ( around 10 500 ha) of arable land and produce 22% of
agricultural output.
•
Greenhouse growers, most SME’s, can control the factors affecting yields and quality.
Growing essentially 12 months/year.
•
Dutch are excellence driven by technology and infrastructure.
– Grower’s associations
– Logistical Hubs
– Automated and systemic technologies
•
High concentration of specialized Dutch companies throughout the supply chain.
– The supply sector is capturing increasing share of value vs. the primary production
sector (the growers). By 2020, supply sector estimated to surpass.

7. Why first to Europe?
25/10/2013
© Finpro
7

8. Why first to Europe?
• Forecast: by 2020 LED
lighting market will amount
up to 60 % of the global
lighting market.
• Europe, a market likely to
lead going forward in LED
penetration.
Source:
25/10/2013
© Finpro
8

9. The Largest Lighting Sectors
General
lighting
Backlighting
• A complex market
with multiple
applications
• 75 % of the total
lighting market
25/10/2013
Automotive
lighting
• Sector continues
to grow, driven
mainly by
conversion of
automotive
headlamps to LED
technology
• Market will decline
due to a
decreasing
number of LEDs
required for
example per TV
© Finpro
9

10. General Lighting Applications
Residential lighting
• Around 40 % of the total general lighting market.
Architectural lighting
• LED covering 85 % of the market.
Hospitality, shop and outdoor
• LED applications are expected to see fast growth in market
share up to 70 % or more by 2020.
Office and industrial applications
• Slower market development due to the high penetration of
cost-competitive linear fluorescent lamps.
25/10/2013
© Finpro
10

11. Forecast of LED Adoption by Sectors
10/25/2013
Greentech Media
© Finpro
11

12. Snapshots from Germany
Düsseldorf
Hannover
Kissing
• 60.000 street lights, of
which 43.000 electric,
17.000 gas powered
• 60.000 lights
•Among first municipalities
in Germany planning an
entire switch to LED
technology in street lighting
• expected CO² reduction
by year 2015: 8.000 t
• change into LED lights
started already in 2007
• As there were no proper
LED street light on the
market at that time, city
Düsseldorf developed
together with university a
own product
10/25/2013
• Aim to gain experience of
luminance, light
distribution, quality, and
maintenance
• Pilot project to learn more
about service need and
durability
• first LED lights 2009
• Better control over the
light distribution and
avoiding light pollution also
considered as key factors
• Wanted manufacturer
with good image and
references
• First feedback : adequate
lighting with a 46 %
reduction in light energy
© Finpro
12

13. Snapshots from Italy
Bergamo
Autostrade per l’Italia
Autovie Venetie
• Deep Frame LED
luminaires for foyer lighting
in architectural lighting
renovation
• LED systems already
been tested and installed at
a number of junctions and
toll plazas in order to
optimize lighting and
improve visibility
• Refurbishment on next 4
years (2013) include
installation of the latest
generation of LED lamps.
Upgrading of the lighting of
interchanges of Redipuglia
has just been completed.
Magenta
Torraca
Tunnels
• 3 km of bicycle road as
turnkey project
• 700 LED light points
installed. Commitment to
convert 100% of outdoor
lighting to LED in mid-2007.
Resulted in 75% energy
savings.
• Installed 6,378 lights in
2009 in motorways tunnels.
Further 10,766 LED lights
installed in 2010. Annual
energy saving in tunnels
estimated as 3,992 MWh.
10/25/2013
© Finpro
13

14. Snapshots from the UK
Birmingham
Tesco grocery stores
Bromley
•City Council’s £70 million
rollout of Philips/Indal LEDs
across Birmingham is the
biggest LED deployment in
Europe, expected to bring
energy savings of 50%.
• Opened the first store
2012 to run solely on LED
lighting. All external signage
installed using LED fittings,
as well as the sales floor
and in staff areas.
• An £8.5 million investment
programme of state of the
art LED street lights across
Bromley over next years.
27,000 street lamps will be
replaced .
Transport for London
Salford
Sheffield
• Deep Frame LED
luminaires for foyer lighting
in architectural lighting
renovation
• 2011 pilot retrofit of 2000
LED street lights across
300 streets in Salford.
Council now approved the
roll out of a further 24,000
street lights across the city .
• All 68,000 of Sheffield’s
street lights will be
replaced by LED lights.
10/25/2013
© Finpro
14

15. … and more snapshots from Europe
Paris, France
Eindhoven, Netherlands
Barcelona, Spain
• Switch to LED replace the
250,000 light points in
RATP’s 302 metro stations
and 66 RER stations will
reduce the energy needed
to light up the Paris metro
and suburban RER
stations by more than 50%,
while improving the light
quality at the same time.
• Replaces all orange
street lighting with LED
lighting in 2013 for soft
white light and perfect
colour rendering, improves
social control in the area.
The system is ‘floating’ i.e.
lights are integrated in
cables instead of poles.
• City Council is introducing
LED technology in the
replacement of 13 000
traffic lights in the city, with
an estimated annual
saving of 800,000€.
Barcelona decided in 2010,
after a pilot project with
LED street lighting in six
pilot areas, that the
technology still has to
evolve, but seems to be
available in a short term in
competitive conditions.
10/25/2013
© Finpro
15

16. Our Promise
Finpro helps Finnish companies to grow and
succeed in international markets
We work with you to:
• Plan your internationalization process
• Help you with funding by providing access to the
right contacts
• Put your plans into practice and gain a
successful foothold in target markets
25/10/2013
© Finpro
16

17. Finpro’s Global Network
25/10/2013
© Finpro
17

18. Right tools to Optimize Your Company’s Growth
Preparing
Growth
Planning
Market Entry
Establishing
Presence
Improving
Market Position
International
Growth Plan
Entry Options
Partner Search
Sales Accelerator
Test Drive
Sales Channel
Development
Direct Sales
Market Monitor
Establishing
Company
Acquisition
Candidate Search
Supplier Evaluation
Trend Pulse
Export Partner
Groups
Industrial Services
Right Markets
10/25/2013
© Finpro
18

19. Finpro References in
Energy and Environment Industry
10/25/2013
© Finpro
19

20. The cooperation with Finpro
succeeded very well and we
received relevant market
information. We were able to
acquire the first hand information
straight from customer interface,
which was very valuable for us.
Our experience from Finpro was
all in all very positive. Local
experience and presence in target
markets were remarkable benefits.
Finpro and GreenStream
Network developed a
cooperation model and
GreenStream Network could test
five markets with moderate
investments and had a quick
access to new emerging EUA
markets.
With the contribution from
Finproners we could get a good
understanding of the markets. It
was a very cost-efficient way to
test the markets.
Harri Roto, Executive Vice President,
GreenStream Network Plc

21. GreenStream Network is a leading Nordic developer and
manager of green investment vehicles. The company is
established in 2001 and has its headquarters in Helsinki.
GreenStream Network`s home market is Northern Europe.
China and South-Africa are company`s key areas for growth.
GreenStream Network had positive experiences from Baltic
Countries and in 2008 company wanted to extend their
operations to Eastern Europe. Establishing own offices and
finding own agents was considered to be too expensive and
slow way to proceed. It was also estimated that traditional
market research couldn`t reveal relevant issues from customer
interface.

22. Finpro and GreenStream Network developed a cooperation
model, where Finpro sales consultants acted as GreenStream
Network`s representatives in five countries: Bulgaria, Czech
Republic, Hungary, Romania and Slovakia. They contacted
potential customers and arranged meetings. After half a year
presence GreenStream Network discovered the East-European
markets less attractive than estimated and decided to
concentrate in faster growing markets like China.
GreenStream Network could test five markets with moderate
investments and had a quick access to new emerging EUA
markets. Other benefits for GreenStream Network were
systematic and professional market information, client
identification and preparing of deals. At the moment
GreenStream Network continues the cooperation with Finpro to
find new markets in South-East Asia.

23. We're truly impressed by the way
in which Finpro operates. They
were exceptionally successful in
identifying agents for us in the
German market, and the Go
Global program was an efficient
way of benefiting from Finpro's
extensive geographical network
and local knowledge. Our
cooperation has given us
credibility in global markets and is
certain to continue.
Sofi Filtration is a Finnish
company founded in 2011
offering state-of-the-art waterfiltration technology. Cooperation
with Finpro has resulted in the
company finding two good
agents in the German market.
Ville Hakala, Sales Director and
Chairman of the Board, Sofi Filtration
Oy

24. Founded in 2011, Sofi Filtration is a Finnish company offering state-ofthe-art water filtration technology. The company's main product is Sofi
Filter, a high-capacity polishing filtration solution for industrial
processes. Based on an innovation by Pertti Rantala, one of the
founders of Sofi Filtration, Sofi Filter has been commercialized with the
help of funding from Tekes - the Finnish Funding Agency for
Technology and Innovation - and the private sector.
Even though Sofi Filtration is a so-called 'born global' company, it is
small and only recently-established, and does not have the resources
needed to embark on the internationalization process alone. Finpro
helped Sofi Filtration with client segmentation, its value proposition
and the definition of channel models, and with professional agents to
open up international channels.

25. Sofi Filtration participated in the Uusimaa Go Global program, during
which both potential markets and client sectors for the company's
products were defined, as well as all of its sales material and
webpages were renewed. Primary markets were identified in countries
where the mining sector is strong: Australia, Canada, Chile and South
Africa. Together with Finpro, a strategy for achieving an international
technological breakthrough was also drawn up, and Germany was
chosen as the target because the resulting credibility would support
efforts in other markets. The German car manufacturing industry has
expressed interest in Sofi Filter technology.
Through cooperation with Finpro, Sofi Filtration has found two good
agents in the German market. Pilot versions of equipment for testing
are currently being prepared. Discussions with a representative of the
Canadian mining industry are also ongoing and an agent agreement
for Belgium has been signed. The company believes it saved at least
six months by initiating its survey of international markets with Finpro's
help during the final phase of the commercialization process.

26. Rahoitusvaihtoehtoja
Finpron ohjelmia, joissa rahoitusmahdollisuuksia:
Finpro Kasvumarkkinaohjelma
Aasia, Kiina ja Intia, Afrikka ja Lähi-Itä
sekä Pohjois-,Keski- ja EteläAmerikka (TEM/Finpro) arvo n. 20 k€
johon n. 50% tuki
Go Global Plus
(ELY/Finpro) arvo n.17.5 k€,
johon n. 75 % tuki
Julkisia rahoitusmalleja:
Valmistelurahoitus
max. 15 k€/ 70 % tuki
Projektin max. arvo 21400 €
Tekes T&K avustus
n. 20–500 k€ (50 % tuki) ja
T&K laina (50-70%
kustannuksista)
Yrityksen
kehittämisavustus
n. 15–100 k€ / 50 % tuki
Yhteishankintakoulutus
n. 30-130 k€ /70 % tuki
Tekes De minimis avustus
max. 100 k€ / 35-50% tuki
Tekes nuoret innovatiiviset
yritykset
50 k€ + 250 k€ + 750 k€ / 75
% tuki
Finnpartnership
tuki 3v max. 200 k€ / 30–70
% tuki
25/10/2013
Finnvera
lainat, takaukset, vientitakuut
ja pääomasijoitukset
© Finpro
26

27. Follow us on social
media and visit our
website www.finpro.fi