Doing Our Part to Create Responsible Bathrooms Everywhere

Together We Can Make a World of Difference American Standard is an active participant and leader in water conservation and education efforts. Our goal is to educate consumers that conservation can and does begin at home. By developing water-efficient, low-consumption toilets, faucets and showerheads that actually work, we are providing consumers with real choice in creating responsible bathrooms without sacrifice in style or performance. Our objective is to reduce overall water consumption by more than 18 billion gallons in the United States, not just this year, but every year thereafter, through the installation of water-efficient toilets, showers and faucets. This will save end users money on water, reduce water-treatment volumes and costs, and reduce the strain on our environment. Doing our part through : – Education – Products – Programs – Projects – Mobile and Social Media – Alliances

American Standard Brands Founded in 1929 Headquarters – Piscataway, NJ Privately owned by Sun Capital Partners and Bain Capital Multi-category finished plumbing company with approximately 15% share of US finished plumbing products CEO - Don Devine

Water by the Numbers 150 Trillion – Gallons of water used annually in the U.S. –3 Trillion -- Gallons of water can be saved per year, and every year thereafter, if all U.S. homes installed water efficient products –33,000 – Gallons per year can be saved by a family of four by installing water efficient toilets, faucets and showerheads 1 Trillion – Gallons of water is lost each year due to leaks from U.S. homes –10, Gallons of water wasted annually from leaks in the average American home. –300 - Gallons of water can be saved per month by shutting off faucet while shaving. –240 – Gallons of water can be saved per month shutting off faucet while brushing teeth. –EPA WaterSense® program has helped increase industry support and awareness of water efficient products American Standard products will save 18,000,000,000 in 2010 or 27,000 Olympic sized swimming pools The Industry is On-Track to Save Over 100 Billion Gallons of Water in 2010

Bathrooms Account for 75% of Indoor Water Usage It is Estimated that 20-40% of Toilets in Homes and Buildings still have 3.5gpf Toilets

Conservation Benefits Environmental Benefits: Water efficiency helps maintain the health of aquatic environments and protects drinking water resources by reducing the need to withdraw ground or surface water supplies for municipal or industrial demands. –Reduce water use today; maintain resources for future generations. –Maintain the health of aquatic environments. –Protect drinking water resources –Minimize water pollution by decreasing runoff –Saving water also helps prevent water pollution by decreasing the amount of runoff from landscaping and irrigation practices. –Saving water can mitigate the effects of drought. Economic Benefits: –Saving water saves money for homeowners, building owners and anyone who is a taxpayer. –Reduces the need for new water supply and wastewater treatment facilities. –Save energy used to pump, heat, and treat water. –Competitive edge for businesses as water quality regulations become stricter and the cost of water increases. –Reduced demand on waste treatment facilities can reduce the need to build new plants. For Every 1 Billion Gallons of Water Saved, Consumers and Property Owners will Save $ 6 Million* *average water rate is 6.06 per 1,000 gallons

Barriers to Adaption of Water Efficient Products Low consumer awareness of Water Efficient Plumbing Products and their benefits Consumers most often replace plumbing products when they break or when they execute a major remodel, not as part of a normal repair and upgrade cycle Consumer skepticism about performance of green products; industry management of the transition from 3.5 gpf toilets to 1.6 gpf handled poorly, lowering consumers expectations of low flow toilets Products often selected and installed by parties (builders and contractors) other than the consumer/user, without regard to conservation or operating costs Consumers are hesitant to tackle projects themselves, and therefore put off upgrades; thinking hiring a professional will be expensive Trades still skeptical; is there sufficient water to carry waste?

Accelerating the Replacement Cycle Will not increase US manufacturing employment as incremental demand will be largely served by Mexico and China Will often lead to better end user experiences as better engineered low flow products replace poor performing products Will save more water, energy and lower costs Codes have been an effective tool in accelerating the use of water efficient products For each 100 billion in water savings, homeowners will lower their annual operating costs by $600 million

Changing Behavior with Business Incentives New York City Per capita water use declined 39% in last 30 years the city provided $290 million in grants and replaced 1.3 million toilets –Water savings – million/liters/day Population grew at 15% and water use declined 28% between 1979 – 2006 as reported by NYT 10/06 –Leak detection – mgd –Metering of apartments – 200 mgd –Toilet change out – mgd –Homeowner inspections, replacing other fixtures, locking fire hydrants Opportunity exists to further reduce by 20% with WaterSense approved products NYC Environmental Protection NIEHS Superfund Research Program National Institute of Environmental Health Sciences

Water Conservation a Case Study to Increase Consumer Awareness and Confidence The Issue: Atlantas 4 million residents emerged from severe drought in 2009 and long-term water issues remain a critical situation for the region that has experienced rapid growth over last 20 years. Retrofitting bathrooms for water efficiency would save money for Georgia families in two ways: reducing household water bills, and mitigating the need for taxpayer-funded reservoirs and treatment facilities. –The Georgia Environmental Facilities Authority estimated that if just 25 percent of Georgia households replaced existing toilets and faucets with WaterSense- certified fixtures, it could save the state nearly 10B gallons per year. Georgia officials estimate that conservation measures are 27 times cheaper than building new reservoirs Our Goal : Demonstrate low consumption can deliver high satisfaction. The Project: Find volunteers willing to trade out their older water guzzling products for new high efficiency models. The Communities: Serenbe - new community south of Atlanta and Chastains an Atlanta suburb build in late 80s The Retrofit: 71 bathroom - 71 toilets, 96 faucets and 55 showerheads The Results: Independent auditor documented at least 20 percent collective savings in overall water usage at Serenbe and Chastain 25%. – I cant tell any difference with the volume of water in the shower and sinks, which is great…I was afraid I would get a dribble. Serenbe homeowner Tom Reed. – For the first time ever, I can say that I love my toilets. I feel very empowered when I get to make a choice about pushing one button or the other. The suction on the H2Option dual flush is superb. - Serenbe homeowner Sarah Richards. Minimum of 20% Water Savings and High Consumer Satisfaction

Doing Our Part in Product Design Current product offering meet or exceed 20% reduction in water us: –100% of residential bathroom sink faucets converted to water efficient 1.5 gpm flow or 32% savings over 2.2 gpm –50% of showerhead and hand held spray gpm or 40% savings over 2.5 gpm –60% of flush valves.5 or 1.28 or 20-87% savings over 1.6 gpf –60% of current toilet offering at 1.28 gpm flow or lower for 20% savings over 1.6 gpf –Waterless Urinals New Product Development –All new models are engineered to meet or exceed new water efficiency standards Welcome to the Responsible Bathroom

The Responsible Bathroom Tour visited a total of 308 locations within the US & Canada in 2010! Responsible Bathroom Tour Questions?