Retrofit Workshop Mark Weaver Agenda Introduction Market Drivers and Knowledge Sharing in S-G Accredited Training and Quality Framework Support Retrofit Trials and Integrated Solutions Retrofit Propositions and Future Habitat Opportunities

Roadmapping workshops Retrofit Roadmapping workshops held since 2010 Wide brand involvement from Innovative Materials, Construction Products and Building Distribution S-Plans delivered high-level strategic priorities T-Plans delivered more detailed project objectives Outputs fed into business units strategic plans

DRIVERS SHORT TERM (LRP Y1/2 2014/15) MEDIUM TERM (LRP Y ) LONG TERM (>LRP 2019+) GOVT CO 2 TARGETS INNOVATION LEGISLATION RETROFIT FINANCING ‘BIG 6’ E/E OBLIGATIONS RMI MARKET DEMAND ENERGY COST AND SECURITY BUILDING STOCK PERFORMANCE STANDARDS SUSTAINABLE RETROFIT VISION: Saint-Gobain lead the retrofit sector for residential and non-residential markets through fabric energy efficiency and sustainable solutions for all types of existing buildings MEASURE EXISTING S-G SYSTEMS PERFORMANCE IN-USE V CLAIMED PERFORMANCE EVIDENCE PORTFOLIO OF SYSTEMS RESEARCH MKT NEEDS FOR INTEGRATED SOLNS IDENTIFY KEY FABRIC GAPS IN S-G PORTFOLIO EXISTING CASE STUDIES ECO EXPERTISE S-G TARGETED OFFER FOR ECO AND GREEN DEAL ECO 2 ADVOCACY MARKET-LEADING TRAINING PROVISION SITE AUDITING OF INSTALLERS TO MINIMISE RISK AND COMPLAINTS SYSTEMS TO OUTPERFORM NEW MIN. ENERGY PERF. STDS S-G MIN. TESTING STANDARDS NPD OR COLLABORATIVE DEVT OF INTERFACE SOLNS (WALLS/WINDOWS, WALLS/ROOFS, WALLS/FLOORS, …) RADICAL INNOVATION AND OFF-SITE TECHNOLOGIES STRATEGIC BUSINESS MODEL FOR ECO – FUNDING PROVIDER POSITIONING STRATEGIC PARTNERSHIPS CROSS-SELLING TRAINING SCHEMES S-G COMPETENCY STANDARDS SYSTEMS SOLUTIONS FOR WHOLE-HOUSE, ZERO CARBON PERFORMANCE (S-G RETROFIT MULTI-COMFORT HOUSE) SKILLS Retrofit Roadmap and Saint-Gobain strategic priorities

Industry IssuesSG CampaignsSG Key MessagesProposed Campaigns Design vs. As-Fitted Performance –In-Use Factors S-G EST Solid Wall Trials – Case Studies and Performance Data Salford Energy House Comms ‘Very fabric of retrofit’ Comms development S-G Retrofit Solutions – Comms launches (Aug 2014) Fabric Firs t Retrofit Approach Invest in building fabric before renewables S-G best practice and installer networks (1)Reduce energy waste (2) Improve thermal comfort (3) Fight fuel poverty (4) Manage energy security (5) Deliver above Reg performance S-G Managed Whole House Retrofits – Integrated Solutions (installations Q3/4) Zero Carbon and Multi Comfort Ability to achieve carbon neutral and improved building ‘health’ in retrofit design and install Demonstrates S-G building physics expertise and support (technical and training) (1) Low energy needs (2) Scaleable potential (3) Integrates with other technologies in Smart IT Salford Energy House Installation and Data Analysis (with Leeds Met) EST Solid Wall Trials (six installs from 2010) S-G Existing House Monitoring Phase (with S-G R&D) (4-6 sample types) Retrofit Strategy, Projects, Campaigns & Messages Statement of Intent (Nov Feb 2014) Whole House Performance (Feb – June 2014) S-G Int Solns Mkt Research Brand Communications (from June 2014) Cost, speed and monopoly of certification

Industry IssuesSG CampaignsSG Key MessagesProposed Campaigns Transition and effectiveness of Energy Supplier Obligated schemes Market mechanism – Green Deal – not performing Advocacy in supporting GD and ECO approach and EEPB Existing Homes Hub S-G continued promotion of active involvement in developing ‘fixes’ towards ECO 1.2 (ongoing – next ECO period Mar 2015) S-G support the Green Deal / ECO approach but … Consumer Awareness and Incentives are insufficient Requirement for Industry Working Group Confidence required to provide stable planning and encourage investment Energy Mkt knowledge devt (Phase 1 Q3-4) Increasing responsibilities upon manufacturers – surveillance and guarantees Campaign tools on GD/ECO ECO proposition July 2014 Importance of high quality Operative and Surveyor training schemes Drive for NVQ qualifications Promotion of accredited training providers and facilities (SGTAs) Resist light touch, shortcut approaches S-G Retrofit Guarantees and Warranties scoping G’build Expo Ecobuild 2014 Energy Mkt Proposition Devt (Phase 2 Q1) New GD/ECO Proposition Devt(Q2/3) S-G Internal ECO training (Nov-Jan) SWIGA compliance for GD/ECO S-G Training Propositions for PAS2030 NVQ and carding S-G CITB Accredited Course development (tba) Green Deal/ECO Strategic Options (Phase 3 Q4) Retrofit Strategy, Projects, Campaigns & Messages S-G GDHIF training (May/June) Operatives/Surveyors Skills and Competencies S-G collaboration in Communities based schemes (training/qualifications and social responsibility))

Retrofit Market Drivers and S-G Knowledge Sharing

Retrofit Market Drivers Strong underlying market demand but recent uncertainty around changing Government policies c.£35bn p.a. RMI market in domestic and commercial sectors New housing activity will generate RMI interest and growth Green Deal has been extremely slow to start but new incentives in place to stimulate insulation and heating measures for domestic sectors ECO cuts mid-period has halted energy company spending, especially in higher cost measures

Retrofit Funding Streams – an evolving landscape Recent legislation has created a number of complementary, and competing, funding routes ECO – Energy Company Obligation Original CERO £760m p.a. cut by 33% CSCO and HHCRO funding retained at c.£540m p.a. ECO extended to 2017

Educating our brands – ECO/Green Deal training modules through ESKD Project Group Webex-based modules explaining elements of Green Deal and ECO schemes – delivered by ESKD team members ESKD team from BG, Weber, Celotex, Isover, Glassolutions, and now Greenworks Content specifically designed to meet brand requirements Levels of knowledge from ‘An Introduction to’ to more technical elements, eg Carbon Scoring Has benefitted Commercial, Customer Service and Marketing teams Next modules now available to roll-out – new Green Deal Home Improvement Funds

Accredited Training and Quality Framework Support

Supporting our customer base – training and routes to competence Supplementing existing product training portfolio with accredited training to Green Deal / ECO standards Installers require PAS2030 compliance to install energy efficiency measures attracting funding support S-G Habitat and Training teams quickly understood and mobilised to deliver accredited training courses System-specific training and site accreditation of operatives underpins guarantee schemes Represents a key element of customer and client retrofit proposition

Saint-Gobain Technical Academies and Greenworks training network A market-leading network of facilities dedicated to delivering practical training Saint-Gobain Technical Academies, alongside Greenworks, offers unrivalled network of practical facilities Courses offered to meet PAS2030 requirements and can lead to NVQ qualifications in solid wall insulation A close relationship with CITB is resulting in S-G leading the market in developing recognised training leading to VQs Opportunity to draw down central funding for accredited courses Academies Greenworks Colleges

Additional customer support Completing the requirements for Green Deal and ECO compliance Habitat, Technical and Training teams worked to ensure: Installer operatives are assessed on site and can receive a system designer card Systems have full BBA certification ensuring compliance to Green Deal and Ofgem ECO requirements British Gypsum, Weber, Celotex and Isover solid wall insulation systems are members of the Solid Wall Insulation Guarantee Agency, providing 25 year guarantees for installed systems

Retrofit Trials and Integrated Solutions

In-situ performance and Integrating Saint-Gobain solutions Trials to demonstrate how our systems perform Energy Saving Trust solid wall insulation field trials Six installations of internal and external wall insulation systems Some very good results and valuable learning for future trial projects Salford Energy House whole- house retrofit project Installation of Saint-Gobain retrofit fabric energy efficiency measures to solid wall e.o.t. in controlled environment Included BG IWI, Weber EWI, Isover loft and floor insulation and Glassolutions Planitherm Carried out with University of Salford, Leeds Metropolitan University and S-G Recherche

Full Retrofit Full Retrofit without Floor Insulation Solid Wall Insulation Performance Glazing Loft Insulation Reference Acoustic Test Salford Energy House Test Program

Salford Energy House – results summary

Integrated Solutions – NPD opportunities New Habitat project identifying retrofit opportunities through Best practice recommendations NPD solutions for interfaces between systems (with S-G/Habitat R&D) New system technologies (R&D) Collaborative relationships in retrofit sector (eg TSB competition initiatives)

Retrofit Propositions and Future Habitat Opportunities

S-G Retrofit Proposition – unrivalled breadth of retrofit systems and support Brands working together within Habitat strategy to identify and meet stakeholder requirements in evolving retrofit sector

Construction Products and Innovative Materials opportunities in Habitat retrofit sector Habitat retrofit sector will continue to identify market drivers, support S-G brands and develop propositions to meet key stakeholder needs through collaborative working Educating brands through retrofit funding training modules (next round of training mid-May – GDHIF cashback scheme and devolved Govt incentives) Stakeholder engagement in Green Deal and Communities schemes through Saint-Gobain approach Development of CITB-approved accredited training modules delivered through SGTA/Greenworks network (and sourcing central funding) Further systems testing to determine S-G whole-house retrofit performance (continuation of Salford Energy House approach) Identify NPD opportunities for improved retrofit solutions

Building Distribution opportunities in Habitat retrofit sector Habitat retrofit sector will develop collaborative working with SGBD brands to exploit new retrofit opportunities as retrofit incentives shift towards private sector Seeking buy-in of SGBD brands in Habitat collaborative approach to identifying and mobilising for retrofit opportunities Supporting Greenworks in rolling-out Green Deal/ECO Webex training modules to SGBD brands Support workshops for SGBD installers seeking GDI accreditation (a requirement for cashback incentives) Support the development of retrofit proposition for SGBD customers – accredited training and routes to competency, compliant guarantees, approved systems, marketing support, local stakeholder engagement support

Retrofit Workshop Thank you for your attention Questions and feedback?