Realcomm.2011 Title: Opening Remarks Track: Energy Innovation Summit Presented by: Marc Petock Vice President Global Marketing and Communications, Tridium June 15, 2011

What is an Intelligent Building? “A building that uses technology and processes that make a better building – one that uses less energy, has lower operating costs, is safer, contributes to a better environment, provides significant ROI to owners and delivers value to multiple stakeholders.”

What does an Intelligent Building look like? Environmental Systems Security Video Lighting Energy Management Elevators/Escalators Fire/Safety Digital Signage Irrigation Monitoring Mobility Analytics Services Enterprise Apps End-to-End Communications

Open Systems have changed the way we manage, operate and inhabit our buildings Today’s facilities executive want to purchase systems and components from various manufacturers and have them work together as one system. They want “open systems” that deliver value without locking themselves into a single vendor’s proprietary protocol. State of the Union Interoperability

Where are we today? Technology is here and proven Acceleration continues – not fast enough Companies are thinking bigger and longer term about sustainability and energy Leaders are incorporating sustainability and energy visions into their overall corporate missions; more are reporting is Not the domain of just one, but many (IT, Finance, Operations, Facility Management, Marketing, etc) Over 100 million square feet of space in need of being ‘Intelligent’ right now! Represents in excess of $54 billion in annual savings Increase Government Requirements Paybacks: 3-6 months (energy savings) more extensive such as commissioning, equipment performance, etc. 1 year Continuous Evolution

Drivers

Market Forces Open - Break the sole-source lock, enable competitive bidding and allow best-in-breed product selection Energy efficiency and sustainability as top corporate imperatives Move to the C-Suite CIOs – Integrate systems and get data using existing IT infrastructure Thinking of the whole building as a system and the equipment running it as assets

Economics Building owners and managers seeking ways to reduce operating costs and increase the uniqueness of their buildings Energy savings Fewer resources with more to manage

Tenants Want uniqueness in buildings An energy-efficient building that can promise lower energy bills is one method of drawing interest in a property Due their part in corporate social responsibility

Corporate Sustainability & Environmental Stewardship A dramatic rise in company’s adding sustainability goals as part of their business objectives and reporting Environmental stewardship is seen as a way to enhance the company’s brand and overall image

Real Estate Investors TIAA-CREF cut the energy used in its holdings by more than 10% between 2007 and 2010, saving $12.5 million per year Jones Lang LaSalle last year cut its costs by $128 million and is on pace to match or exceed that number this year Pension & Investments Magazine

Value Operational Savings Right Size Operations Running at Optimal Performance Reduce Maintenance Costs Minimize Risk Lower energy usage and costs Maximize Tenant Lifetime – Reduced Turnover Increased rental rates – 3.5% and higher Higher resale values Intelligent Buildings Payoff Today & Tomorrow

O&M7% to 28% Controls7% to 23% Lighting6% to 25% Equipment3% to 15% Behavior3% to 15% Size of the prize

…believe in hard savings of 15% to 60% Even if you don’t believe…

ROI

Savings $3.1 million in operational and energy savings $15 million in reduced operation costs annually 33% reduction in energy costs Over $8 million in reduced operating and energy costs 28% reduction in energy; savings of $283,000

Embracer Cautious Adopter Laggard Who Are You?