Rebuild Hawaii Consortium LED Project Case Study at C S Wo & Sons, Ltd by Ed Nakano, Executive Team Corporate Secretary & Treasurer

C S Wo & Sons Company Background Energy Savings Initiatives LED Case Study

C S Wo & Sons Third generation family owned businessThird generation family owned business in Hawaii for 102 years in Hawaii for 102 years

C S Wo & Sons Largest Furniture Retailer in HawaiiLargest Furniture Retailer in Hawaii - $60M annual sales (2010) - 12 stores in Hawaii & 1 in Costa Mesa - 6 divisions focusing on targeted markets

C S Wo & Sons 240 employees located on Oahu, Maui, Big Island and Costa Mesa, California240 employees located on Oahu, Maui, Big Island and Costa Mesa, California

C S Wo & Sons Ranked number 129 (by sales) of Top 250 Companies in HawaiiRanked number 129 (by sales) of Top 250 Companies in Hawaii Hawaii Business, Aug 2010

C S Wo & Sons Ranked number 79 of Top 100 U S Furniture RetailersRanked number 79 of Top 100 U S Furniture Retailers Furniture Today, May 2010

Energy Savings Initiatives CompletedCompleted - Beginning in 2003, replaced T12 with T8 fluorescents at all retail and office fluorescents at all retail and office locations locations replaced low sodium lights at replaced low sodium lights at 90,000 SF warehouse distribution center 90,000 SF warehouse distribution center with motion activated T8 fluorescent with motion activated T8 fluorescent lights lights

Energy Savings Initiatives Completed: - Installed 2 photovoltaic systems at high - Installed 2 photovoltaic systems at high energy use and company owned locations energy use and company owned locations on Oahu and Maui on Oahu and Maui

Energy Savings Initiatives In ProcessIn Process - LED spot light installations at 9 Oahu retail locations retail locations - Replacement of metal halide parking lot - Replacement of metal halide parking lot lights with T8 fluorescents when cost lights with T8 fluorescents when cost justified justified - Installation of photovoltaic system at 1 - Installation of photovoltaic system at 1 Oahu retail location Oahu retail location

Energy Savings Initiatives Future PlansFuture Plans - Neighbor Island Stores LED spot - Neighbor Island Stores LED spot light installations light installations - Replacement of older air conditioning - Replacement of older air conditioning units with energy efficient systems if units with energy efficient systems if replacement is cost effective. replacement is cost effective.

Retail Lighting Requirements Oahu Retail Stores – 9Oahu Retail Stores – 9 Pre LED spot light conversion - 100% use of Watt natural light halogen spot lightsPre LED spot light conversion - 100% use of Watt natural light halogen spot lights 234,000 SF total retail showroom space, ranging in size from 5,000 – 58,000 SF each showroom234,000 SF total retail showroom space, ranging in size from 5,000 – 58,000 SF each showroom

Retail Lighting Requirements Neighbor Island & Costa Mesa StoresNeighbor Island & Costa Mesa Stores 4 stores, 20% of SF showroom space use with T8 fluorescent lights, 80% SF with 55 Watt halogen spot lights4 stores, 20% of SF showroom space use with T8 fluorescent lights, 80% SF with 55 Watt halogen spot lights 69,000 SF total showroom space, ranging from 3,000 – 20,000 SF each showroom69,000 SF total showroom space, ranging from 3,000 – 20,000 SF each showroom

LED Challenges Experienced In early 2010, few proven natural light In early 2010, few proven natural light LED spots, local vendors and warranty LED spots, local vendors and warranty were available were available

Lessons Learned Define and agree on vendor and customer expectations with vendor(s)Define and agree on vendor and customer expectations with vendor(s) Perform estimated savings and payback analysis with vendor(s)Perform estimated savings and payback analysis with vendor(s) Select vendor and LED bulb based on total value of product and services expected, not only on cost of bulbsSelect vendor and LED bulb based on total value of product and services expected, not only on cost of bulbs

Lessons Learned Start with one test location where energy savings results and failure rate expectations are measurable and manageableStart with one test location where energy savings results and failure rate expectations are measurable and manageable Implement other location installations after achieving proven satisfactory resultsImplement other location installations after achieving proven satisfactory results - 2 test locations installed LEDs in April test locations installed LEDs in April other locations installed in June 2011 after - 7 other locations installed in June 2011 after satisfactory results achieved satisfactory results achieved

Financial & Other Results 6,700 LED spot lights purchased for 9 Oahu stores over 1 year period6,700 LED spot lights purchased for 9 Oahu stores over 1 year period Total cost $350,000, including retrofitting one location for LED bulb fixture compatibilityTotal cost $350,000, including retrofitting one location for LED bulb fixture compatibility Hawaii Energy Rebate - $148,000Hawaii Energy Rebate - $148,000

Financial & Other Results Estimated energy savings at 2 test locations– 1/3 reduction, less than 1 year payback net of rebateEstimated energy savings at 2 test locations– 1/3 reduction, less than 1 year payback net of rebate Noticeable cooler environment at test locations due to the reduction of heat from replacing Watt halogens with 11 Watt LED spotsNoticeable cooler environment at test locations due to the reduction of heat from replacing Watt halogens with 11 Watt LED spots

11 watt LED lights RESULTS

11 watt LED lights LED Lights in action at our showrooms

HomeWorld Honolulu Showroom

SlumberWorld Pearlridge Showroom

Questions

Mahalo