Introduction to Sustainable Solutions

1
Be a leader. Use less energy. Use smart energy.
Introduction to Sustainable Solutions
Johnson Controls, Inc.
2
Our Vision
A more comfortable, safe,
and sustainable world.
3
Our business approach We start by listening
we want to know what concerns you
4
Whats on your mind?Energy prices, global
economy, water, emissions, green public pressure
high energy costs alone can be a competititve
disadvantage in todays high-price environment
and sufficient motivation to focus senior
management attention on energy efficiency. McKin
sey Global Institute
How do you address these concerns and
opportunities?

• the brand value from being green is
  increasingly valuable among environmentally
  conscious consumers -McKinsey Global Institute

5
Perfect Storm
Your Concerns
Energy Prices Increasing Water Rates
Increasing Demand for Green Increasing
Our Value Proposition
Energy Efficiency
Water Efficiency
Renewable Energy
Asset Renewal
SAVE Money SAVE Resources Sustainable, Green
Environment
Your Benefits
6
Start with sustainability
Sustainability doesnt require sacrifice it
requires a new frame of mind
7
Sustainability and green are competitive drivers
Recent global survey of CEOs on the topic of
sustainability

• 75 said sustainability is either an important
  part of corporate strategy or expect it to be
  important in the future

• Why have a sustainability strategy?
• To have a competitive advantage
• To be seen as leaders
• Public interest in the environment

Source Vandiver Group and Pinnacle Worldwide,
2008
8
We provide SOLUTIONS to help you on the path to
sustainability

• asset renewal
• energy and water efficiency
• community engagement

9
Path to Sustainability
Economic Benefits
Environmental Impacts
Social Responsibility

• Social Responsibility
• Job creation
• Local MBE participation
• Economic development
• Community education and public awareness

• Environmental Stewardship
• Greenhouse Gas reduction
• Lower water and fossil fuel consumption

• Economic Benefits
• Energy savings
• Water savings
• Operations Maintenance (OM) savings
• Improved occupant productivity

10
Efficiency Now its never been more important!
Water Solutions
Government
11
Efficiency Now Its never been more important

• THE PROBLEM
• People who own and manage buildings are under
  intense pressure to
• Manage higher energy and operating costs
• Reduce the environmental impact of their building
  and operations
• Improve comfort and productivity of their
  occupants
• THE SOLUTION
• We believe improving efficiency in buildings is
  the first and more important step to relieve the
  pressure.
• Weve invested in the people and technologies to
  maximize efficiency.
• We deliver efficiency with ingenuity and
  integrity.

12
A lot of companies can help you be green What
makes Johnson Controls unique?

• Leadership and Experience
• Leading Technology
• Renewable energy
• Wireless environments and tools
• Modular central utility plants
• Carbon and water footprinting
• Proprietary tools to do an in-depth analysis of
  your facilities
• Huge database of water and energy improvement
  options for your environment
• Custom modeling tools
• Industry Experience
• Over 4.6 billion in energy and water efficiency
  savings guarantees
• We have helped our customers save 10 million
  metric tons of carbon dioxide since 2000
• Largest performance contractor in North America
• 2/3 of our project development teams have
  Masters degrees or higher
• 2/3 of our project development teams are
  Certified Energy Managers (CEM)
• Extending the Savings
• Well help you extend your savings by educating
  employees and other occupants

Technology
Tools
Experience
End users
13
Behind every one of our employees are significant
resources
Water Conservation
Green Buildings
Service and Maintenance
Energy Efficiency
Municipal Utility Solutions
Renewable Energy
Wastewater
Energy Plants
Wireless Applications
Facilities Management
14
In a nutshell, we can help you
CREATE a healthy environment SAVE ENERGY AND
WATER (through environment retrofits and other
strategic tools) USE SMART energy
(through renewable energy)
15
Markets and Services
Learn More About Johnson Controls

• Markets We Serve
  Services We Provide

Energy Performance Contracting
K-12 Education
Local Government
Renewable Energy Solutions
Higher Education
State Government
Water Solutions
Health Care
Green Buildings
Public Housing
Innovation Services
Summary
16
Energy Performance Contracting
Energy efficiency is the greatest form of new
energy we have. Fortune magazine, 2008
17
Energy Performance Contracting

• Reduce energy usage
• Reduce water usage
• Reduce operating and maintenance costs
• Reduce emissions
• Reduce waste

In short, Performance Contracting is a
procurement tool that allows you to leverage the
savings you get from making building improvements
in order to pay for the improvements. How does
it work?
18
Customer Discussion to Identify Goals energy
efficiency, emissions reduction, operational
savings, water savings, etc.
Preliminary audit/Site visit
Customer commitment
Detailed audit Sophisticated analysis tools used
to gather data and develop customized solution
Energy Performance Contract with Savings
Guarantee
Lighting, water, HVAC, renewable energy, building
upgrades, wireless, meters/controls
Lower Water Use
Reduce Ops Budget
Lower Utility Use
Reduce Waste
Reduce Emissions
Reduce Maintenance
Meet Customer Goals
19
How do we reduce energy and water use?

• We use a host of products and services
• Lighting upgrades
• Building management systems
• Water conservation measures
• Temperature controls
• Chiller and boiler upgrades
• Facility repairs and upgrades
• Renewable energy (solar PV electricity, solar
  thermal heating, geothermal, etc.)
• Green building solutions
• Wireless infrastructure
• Others

20
How are your costs impacted with Performance
Contracting?
21
Performance Contracting your costs today

• Your Utility Bill

Before
Note this is for illustrative purposes
22
Performance Contracting during the term of the
contract
Immediately begin to enjoy the savings
Your Utility Bill Payment for Efficiency
Upgrades Your Savings
Before
During
Note this is for illustrative purposes
23
Performance Contracting enjoying the full
savings
Enjoy the full savings
Your Utility Bill Payment for Efficiency
Upgrades Your Savings
Before
During
After
Note this is for illustrative purposes
24
Energy Performance Contracting Things to Know
Things to Know

• Energy and water savings are largely guaranteed
  by us our engineers can determine the impact
  the building improvements will have on your
  utility bills so we guarantee those elements of
  our work
• We are experts in energy and water efficiency and
  the solutions required to maintain your
  facilitys peak performance
• We can include renewable energy in the collection
  of environment enhancements we perform
• Your operating costs can be reduced without
  capital expenditures
• Your environment is healthier and more productive

Johnson Controls is the largest supplier of
performance contracting guarantees in the U.S.