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Allied Air Enterprises Joe Nassab VP, GM

Agenda Background Early impressions Allied Air evolution Market outlook Moving forward

Background Personal: Married 17 years to Colleen Three children: Sam, Caroline, Kate Work experiences – 21 years with General Electric: ‘89 – 93 … Aircraft Engines (finance) ’93 – 95 … Corporate Audit ’95 – 00 … Appliances (program & product mgmt) ’00 – 05 … Healthcare (sales, service, general mgmt) ’05 – 10 … Security (CMO, GM product mgmt)

Core Beliefs People want to excel Great vision without great people is irrelevant Time is scarce … prioritize well Fundamentals win it: disciplined people, thought & action Change is constant … adaptability a must Preparation and attention to detail Outcomes are ours to decide and results matter We win together … with everyone “All-In”

Early Impressions Working well Needs improvement Committed employees Population of loyal customers Operational focus & discipline Product portfolio Dealer visits … Orangeburg TechChoice Needs improvement Market share … across the board Customer intimacy  trust Front end processes & discipline “Mutual” market development Cooling product penetration Transition execution

Allied Air Evolution 1999 - 2005 2006 - 2009 2010+ Coming together Strengthen operation Top line Integration Armstrong & Excel … Allied Air formed Operations assimilation Prepare for new gvt regulation Sale of company owned distributors Capital investment programs: R&D, facilities Mfg footprint reduction Launch of 13 seer & 410A Op excellence focus “Front end” investments Mutual market growth plans Build brand strength Expand geographic footprint Market roller coaster (% change yr over yr) ~ 5% ~ 10 +% ~ (12%)

Commitment Dynamic HVAC market requires focus & strength Consistent record of investing ($ Millions) 49 46 Financially sound Committed to 2 step Reinvest in our company Lead regulatory change Focused on HVAC 44 42 Key Points Strong technology team Robust NPI process Best practice transfer Design for reliability (DFR) Established centers of excellence 300 residential focused engineers

The Economy Uncertain times … Inventory of homes high ... and starts remain depressed Confidence up from 2008 … but relatively weak Favorable prices boost perception & buying conditions Access to credit tight … 25% of consumers w/ score < 599 Unemployment still 9+% … expect slow improvement Economy is growing slowly (positive GDP) Federal government has no appetite for additional spending Requires stronger collaboration & planning than ever before

HVAC Industry Unprecedented change Dynamics 1992 – 10 SEER 2009 – transition to R410A 2013 – Building standards 2015 – Regional standards 201? – Refrigerant change 20?? – More green & efficiency Dynamics Large aged installed base: - 18 million units 10-12 yrs - 50% higher than 10 yrs ago Big mix shift: 19% Efficiency 38% High 81% 62% Std 2006 2009 August YTD shipments: - Residential + 7% - Gas + 16% - Split AC + 1% - HP + 6% Selling skills – drive mix Transition execution Partner selection

My Framework We invest in product development, manufacturing, delivery & support services for distributors … need a loyal & driven partner network to succeed. Critical elements Understand what is important to each other A “true spirit” of teamwork A total team effort Trust & accountability A common goal

Aggressive territory mgmt Making Growth Real! Sources of Growth Existing customers Competition New markets Expand portfolio Increase value add Aggressive territory mgmt Adjacencies Geographies Service offerings Convert Acquire Provide feedback to strengthen collaboration, responsiveness & sales Build growth plans together … review in Nov & Dec Invest in front-end capabilities … new training & programs Implement operating cadence … quarterly share of market reviews Increase share of wallet