Fluorescent Lamp Volatility Rare Earth Metals 2012 Audio

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Fluorescent Lamp Volatility & Rare Earth Metals 2012 Audio: 866 -462 -2176 Pin: 877206

Fluorescent Lamp Volatility & Rare Earth Metals 2012 Audio: 866 -462 -2176 Pin: 877206

What are Rare Earth Metals? 17 Elements Abundantly the globe Available across Rarely found

What are Rare Earth Metals? 17 Elements Abundantly the globe Available across Rarely found in pure form – bonded to other elements. Separation Process Costly AND can be Toxic US stated to have 1, 300 yrs of reserve at current rate of usage

Usage for Rare Earth Metals

Usage for Rare Earth Metals

What Happened in 2012? ? ? Let’s Take a Look Back…. Mid-80’s China Dominance

What Happened in 2012? ? ? Let’s Take a Look Back…. Mid-80’s China Dominance ◦ ◦ Cheap labor Abundant supply Lax environment controls Competition Driven out of business by 2002 China’s Domestic Use increases – export decreases New Technologies – ◦ Cell phones, TV’s, EV Batteries, Military & Defense.

What Happened in 2012? ? ? Export Quotas imposed 8 Straight Years ◦ 40%

What Happened in 2012? ? ? Export Quotas imposed 8 Straight Years ◦ 40% Reduction in 2010 ◦ 2011 Equal to 2010 Export Duties/Tariffs Environmental Tax upwards of 30% More Buyers-Less Product ◦ Prices Driven Up

Lamp Industry Effects Rare Earth Phosphors used in: ◦ ALL Fluorescents (Screw-in & Plug-in)

Lamp Industry Effects Rare Earth Phosphors used in: ◦ ALL Fluorescents (Screw-in & Plug-in) ◦ Some Halogen and Incandescent ◦ RGB Phosphor used to Achieve White Light ◦ 85+CRI and 27 K/30 K/35 K use more RE Phosphor DOE 2012 Regulations ◦ Requires Higher CRI ◦ Eliminates T 12 and Standard T 8 ◦ Doubles MFGR Demand for RE Phosphors

Rare Earth Phosphors Pricing

Rare Earth Phosphors Pricing

Lamp Industry Effects PRICE INCREASES ◦ Swift, Drastic, and open duration Round 1 -

Lamp Industry Effects PRICE INCREASES ◦ Swift, Drastic, and open duration Round 1 - On Average 25% Increase ◦ AUG 1 Effective Date GE & SYL, AUG 15 Philips ◦ Lamp use of RE Phosphor dictates % increase Round 2 – On Average 13% Increase ◦ SEPT 1 Effective Date – just announced by SYL ◦ Anticipated release from other 2 Monthly Increases UNTIL Market Stabilizes

Short-Term Realities Non-China Production ◦ Non-China Impact Facilities 12 -24 Mos. out ◦ Since

Short-Term Realities Non-China Production ◦ Non-China Impact Facilities 12 -24 Mos. out ◦ Since ’ 02 Environmental Laws/Views Changed ◦ Governmental Rules/Regs Pricing Volatile During this Period ◦ Demand > Supply and Growing ◦ Month-to-Month Price Increases Pricing Stabilization – Mid 2011 Levels ◦ All indicators AUG 1 levels are the NEW LOW Possible Extension to DOE 2012 ◦ Round 1 Failed, more attempts in progress ◦ Minimize need for more RE Phosphors

Pricing Family High % Low % Avg % Incandescent 12. 5% 1. 8% 8%

Pricing Family High % Low % Avg % Incandescent 12. 5% 1. 8% 8% Inc - Neodium 60% 30% 50% Halogen 5% 3% 4% HID 6% 3. 5% 5% Plug-in CFL 25% 25% Screw-in CFL 25% 25% T 8 Standard 35% 29% 34% T 8 85 CRI+ 35% 29% 34% T 8 Premium 40% 35% 37. 5% T 5 & T 5 HO 38% 30% 35% T 12 Standard 35% 11% 25% T 12 Premium 35% 24% 30%

Plan of Action FSG Representatives as Your Resource Mitigate/Minimize Price Increase ◦ Upgrade/Technology Changes

Plan of Action FSG Representatives as Your Resource Mitigate/Minimize Price Increase ◦ Upgrade/Technology Changes ◦ Does not always imply retrofit ◦ Example- 28 W T 8 - $2. 00 savings/yr per lamp Explore Sustainable Solutions with Lowest Cost of Ownership Portfolio Impact Reporting ◦ Both Now and for 2012 Budgets www. fsgi. com for Latest Information ◦ Lighting Tab, Lighting Toolkit

Q&A Session #6 to Un-mute Line We will answer questions written and verbal Thank

Q&A Session #6 to Un-mute Line We will answer questions written and verbal Thank you for attending our session on this very important subject