Intelligent and Integrated Building Technologies Ken Gallinger, Marketing Director Continental Automated Buildings Association (CABA) Market Size in North America 2010 **

1.Bell Canada – Chairman Martin Cullum 2.Tridel Corporation – Vice-Chair Leo DelZotto 3.Honeywell International – Vice-Chair Roy Kolasa 4.Alcatel-Lucent - Lindsay Ellis 5.BAE Systems - Steve Teubner 6.Convia, A Herman Miller Company – Randy Storch 7.Direct Energy LP - David Dollihite 8.Hydro One Networks Inc. - Tom Semler 9.Ingersoll Rand - Randy Amborn 10.Institute for Research in Construction, NRC - Morad Atif CABA Board of Directors

11.Intel Corporation – Shahram Mehraban 12.Microsoft Corporation - Jonathan Cluts 13.Monster Cable Products Inc. - Noel Lee 14.Philips - Dr. Satyen Mukherjee 15.Procter & Gamble - Orly Cocco 16.Siemens Building Technologies, Inc. – Brad Haeberle 17.Vantage/Legrand - Andrew Wale 18.Whirlpool Corporation – Joseph Lui 19.CABA - President & CEO – Ron Zimmer CABA Board of Directors

“The knowledge-based forum for industry leaders who advance the use of technology and integrated systems in the global home and building industry.” CABA Vision

To view video:CLICK HERE ( ) Intelligent and Integrated Building Technologies Market Size in North America 2010 Research completed by Sponsors

High Speed Internet / Wireless Voice Communications Facilities Management Interactive media Visitor management Audio – Video Conf Ambient Music / TV Better Tenant and Common Area Experience Digital signage Services and Technologies Copyright ® 2007 The Fourth Utility, LLC All Rights Reserved.

HVAC 24/7 MonitorVideo surveillance Elevator Lighting Fire Access Energy Reducing Building Cost Services and Technologies Copyright ® 2007 The Fourth Utility, LLC All Rights Reserved.

High Speed Internet / Wireless IP Telephony Future Applications Interactive media Visitor management Audio – Video Conf Ambient Music / TV Smarter Building / Property Digital signage HVAC 24/7 MonitorVideo surveillance Elevator Lighting Fire Access Energy Copyright ® 2007 The Fourth Utility, LLC All Rights Reserved.

Commercial Buildings Energy Use Source: 2008 Department of Energy Buildings Energy Databook

Typical Building Cost Over A 40 Year Life Cycle

$20 Billion Systems* Market 2009 * Systems = Product + Value Add (Engineering, Commissioning, Installation) excluding maintenance * Products = Hardware, Software, Cable and Cabinets at first point of distribution prices $8.5 Billion Market for Products* (incl. cable & cabinets) 2009

Definition of Convergence Convergence is to bring together autonomous systems onto a common communication platform within the business enterprise and create a single unified solution Network = Ethernet Cat 5/5e/6 and/or fiber BMS structure IT network/ backbone

Two Main Drivers of Convergence Energy and building performance  Energy savings and efficiency  Improve building performance (better decisions)  Reduce maintenance costs  Increase the value of the building/rental revenues Security  Higher level of security (physical and IT security converged)  Efficient data sharing  Remote access  Improving storage  Access cards a requirement  Link data sharing between departments 1 2

Who Is Driving Convergence? Security - Large projects 90%-100% converged at management level (Ethernet) - IT convergence not perceived a benefit by many BMS suppliers - IT suppliers keen to drive IT convergence: - Cisco: Mediator and hardware - IBM: software, consultancy and Master SI - Oracle, HP, Plexus, etc. offer software/advice - Integrated in BMS offering - Driven by IT (hardware, cabling suppliers/channel) - Security SI/installers high end drive it IT BMS

Who Is Driving Convergence? Energy rating schemes Political/ economic factors End-users - Most converged buildings are in US - LEED silver/gold/platinum -International pressure to reduce CO2 -Government funded projects -Buildings consume 70% of electricity and 40% of primary energy - Pressure from society and clients to have a green profile - Reduce energy costs - Improve building performance and management A driver for convergence, but not necessarily IT convergence

Definition of Integration Integration is to add value by joining or linking different building services products However nearly all integrated solutions are also converged at least at management level - many also at control level Service layer (IP provider) Management level (Mostly IP) Automation/control layer (IP/BACnet/LON/proprietary) Automation/control layer (IP/BACnet/LON/proprietary)

Development of Integrated Building Management Systems (IBMS) Integrate with sub-systems Integrate with other BAS Integrate with other systems Integrate with other enterprises systems Open Standards Enabling Convergence

How Quickly Will Integration Grow? Number of Projects Time Hurdles: Too much customization Lack of standard applications Ability to demonstrate and convince the clients on ROI

Total System Market $20 Billion 56% = stand-alone 44% = integrated and/or converged 34% integrated and converged 8% converged (IT) only 2% integrated only BMSIT 21% on a separate BMS infrastructure 13% on the IT network/backbone

Stand-Alone vs. Integration/Convergence by Product Area, US$ Million, 2009 Stand alone is high for lighting, intrusion and fire (~90%) IT convergence only – 25% for CCTV, 6% access Integration and convergence high for BMS (54%) and access (45%)

Forecast 2009 – 2013 % Split by Stand-Alone vs. Integrated and Converged

Key Market Drivers and Trends Energy saving applications Open system Integration and IT convergence Increase in energy retrofit Consolidation will continue Compete in the knowledge in buildings and BAS applications Controls contractors migrate to system integrators

Key Market Drivers and Trends Current drivers: 1.Energy management –More function to reduce energy consumption –Data visualization software and enterprise dashboards –Integrate smart meters –Energy monitoring, reporting and analysis service 2.LEED and Energy Star Label 3.Energy Legislation and codes 4.Government stimulus Long term driver: 5.Smart grid development –Monitor consumption and track min. and peaks –Automatic demand response and demand modeling

Smart Grid - Definition An intelligent electricity system that connects all supply grid (utilities) and demand elements (end-users) through an intelligent communication system

IBC Markets Will Rebound Source: StatCan US$ Bn. Source: Economist/ US Census Bureau Depressed economy, lack of credit, increasing building vacancies Fall in new construction, delayed refurbishment and retrofit However, IBC* markets have outperformed Economic stimulus will help boost demand – particularly public sector IBC* markets expected to return to growth late 2010/early 2011 USA Canada * Intelligent Building Controls

Key Findings Environmental (HVAC) Building Controls The market will compete in applying BAS to tackle climate change issues Companies need to obtain and disseminate both controls and IT knowledge Lighting Controls Huge savings and market potential Consolidation to provide total lighting solutions and more integration LED lighting is a growing market but controls required for better efficiency Security Systems CCTV / Video surveillance setting the pace, followed by access control Strong movement towards IP systems and integration of security systems Fire Detection and Alarm Robust, growing market, driven (and constrained) by codes and regulations Demand for better evacuation solutions will drive integration of nascent mass notification / voice evacuation market

End-User Sectors  Top vertical markets: - Education - Offices - Central / Local Government - Health 13% 12% 11% 9%

Intelligent Buildings

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