© 2010 AirAdvice, Inc. Presented by AirAdvice Featuring Dave Hewett & Jim Crowder

© 2010 AirAdvice, Inc. Introductions Dave Hewett: –Former Chairman of BOMA International –25 year vet of commercial real estate industry Jim Crowder: –CEO & President of AirAdvice –Provider of BuildingAdvice, industry-leading platform for building service providers to grow sales of service and retrofits by delivering cost savings for their clients.

© 2010 AirAdvice, Inc. Agenda Energy Costs in Commercial Buildings Market Attitudes Toward Energy Myths About Energy Efficiency The Value of Energy Efficiency Selling the Value of Energy Efficiency Open Discussion

© 2010 AirAdvice, Inc. Energy costs in commercial buildings Buildings responsible for: 39% of all energy used in the U.S. 76% of all electricity

© 2010 AirAdvice, Inc. Energy costs in commercial buildings

© 2010 AirAdvice, Inc. Building operating costs Hard Costs Hidden Costs Soft Costs Energy and replacements are highest

© 2010 AirAdvice, Inc. Building operating costs 70% of energy goes to HVAC and lighting

© 2010 AirAdvice, Inc. Market attitudes towards energy Energy Efficiency Indicator - North America 2010 By Johnson Controls

© 2010 AirAdvice, Inc. Market attitudes towards energy

© 2010 AirAdvice, Inc. Market attitudes towards energy

© 2010 AirAdvice, Inc. Market attitudes towards energy

© 2010 AirAdvice, Inc. Market attitudes towards energy

© 2010 AirAdvice, Inc. Market attitudes towards energy

© 2010 AirAdvice, Inc. Market attitudes toward energy “A couple of years ago rent appreciation had a major impact on asset values. Operating costs were not at the top of building owner’s priority list. Today, as rent growth has slowed, reducing operating costs can have a significant impact on the value of a building. Energy efficiency has now become a priority.” - Mark Fitkin, CB Richard Ellis

© 2010 AirAdvice, Inc. If it’s so obvious……..

© 2010 AirAdvice, Inc. Common myths about energy Not a controllable cost Requires capital investment My building’s fine. I’m not wasting much. Savings are always less than promised

© 2010 AirAdvice, Inc. Other concerns of facilities managers Don’t have the time to dedicate to it Lack the required skills Emergencies always get in the way

© 2010 AirAdvice, Inc. Why HVAC? -Your access to underserved market -You know and understand major energy- consuming systems in buildings -You’re in buildings every day

© 2010 AirAdvice, Inc. Where the market is heading All sorts of players coming to building owners with promise of $ savings –Utility bill auditors –Insurance co’s –Financial consultants –Elevator manufacturers (and other OEMs)

© 2010 AirAdvice, Inc. Where the market is heading Need to differentiate and to show value –Benchmark to immediately show your aptitude –Low- and no-cost savings to prove your value –Propose projects using ROI of energy savings –Prove savings with ongoing meter monitoring

© 2010 AirAdvice, Inc. Keys to selling energy services 1.Talk to financial decision-maker 2.Speak their language: ROI 3.Compare their options for them

© 2010 AirAdvice, Inc. Speaking the right language 1.State your benefit - as a solution to problem they’ve indicated they have (i.e. high operating costs) 2.Quantify the benefit (10% of 100k annual energy spend is $10k, this is the minimum we can save you) 3.State this economic benefit in Payback period ROI

© 2010 AirAdvice, Inc. 1.Educate them on their options 2.Lay out the complete value picture so they can assess true costs & benefits How to sell the VALUE of energy

© 2010 AirAdvice, Inc. Compare options: The ROI of Energy Savings Written in 2010 Study of the ROI of energy projects in Commercial Buildings Provided by the IFMA Foundation, a leader in education and research for the commercial real-estate market

© 2010 AirAdvice, Inc. The ROI of Energy Savings Payback comparison : Energy has the shortest payback overall

© 2010 AirAdvice, Inc. The ROI of Energy Savings

© 2010 AirAdvice, Inc. The ROI of Energy Savings Energy has the best ROI overall

© 2010 AirAdvice, Inc. The ROI of Energy Savings

© 2010 AirAdvice, Inc. The ROI of Energy Savings NOI: Energy provides the greatest increase

© 2010 AirAdvice, Inc. The ROI of Energy Savings

© 2010 AirAdvice, Inc. The ROI of Energy Savings

© 2010 AirAdvice, Inc. What do CFO’s Expect?

© 2010 AirAdvice, Inc. Let’s replace myths with reality

© 2010 AirAdvice, Inc. Replace myths with reality Myth: My building is fine, we can’t be wasting that much Replace: Energy Benchmarking to show them exactly how much

© 2010 AirAdvice, Inc. Replace myths with reality Myth: Capital spending required Replace: Propose low- and no-cost energy savings measures

© 2010 AirAdvice, Inc. Replace myths with reality Myth: Savings are always over-promised Replace: Don’t over-promise. SHOW the financial payback info, then prove the ongoing savings

© 2010 AirAdvice, Inc. Key takeaways Be systematic but patient –Don’t swing for the fences every time –Start with a pilot, then take to other buildings –Be proactive, and do in small steps –Then use the savings instead of the capital budget to fund the next step Get paid to prospect Explain a process to your clients & prospects –Don’t just heave promises of energy savings at them. They get enough of this.

© 2010 AirAdvice, Inc. Open for questions ? ?? ??? ???? ?????