1. 2012 AEM Annual Conference © BARLOW 2012

2. Overview Industry Impact How Sustainability Affects The Entire Supply Chain Reversing The Low-Bid-Wins Paradigm Finding Success In This Profitable Market Segment

6. 1/3 of all nonresidential construction is sustainable today 120 road construction projects tested by Greenroads 2 Billion ft 2 of commercial projects USGBC LEED ® certified $280 Billion expected worth of green building by 2020 U.S. Green Building Stats 45% 45% of construction projects will be sustainable by 2014 120,000+ 120,000+ LEED Accredited Professionals in the U.S.

7. Canadian Green Building Stats 1 st North American city to enforce green roofs technology: Toronto 3,985 Canadian projects LEED registered $268,000 cost savings using recycled materials for City of Saskatoon $268,000 cost savings using recycled materials for City of Saskatoon road project 10,000 LEED Accredited Professionals in Canada 2 Billion ft 2 certified under Canadian Building Environmental Standards ft 2 certified under Canadian Building Environmental Standards

11. Capitalizing On It Requires Understanding How It Affects The Global Supply Chain Sustainability Will Pay Big Dividends To Those Who Embrace It Now

12. Demands transparency & value from all supply levels to achieve sustainability goals Current customer relationships throughout supply chain are redefined Ohio wind farm concrete base example

19. Sales Channels/Dealers

21. Changing The Low-Bid-Wins Paradigm Sustainable Value Often Supersedes Price Efficiency & cost savings to construct Reused/recycled materials Newer, energy-efficient equipment Newer, more efficient technologies & products Lower operation costs upon completion Value increase in commercial, institutional & residential Proven ROI Human factor Shifting more immediate perspective to longer range value

23. You must provide legitimate sustainable value for your customers to win sustainable work

24. Provide Transparency Share sustainable values of: Products Services Technologies Share their: Carbon footprints Life cycle assessments Embodied energy Other calculations Share how you contribute to customers sustainable goals & how it relates to their customers Copyright © 2009 Taiga Company

25. W.S. Tyler LEED Credit Statement

26. Educate Your Sales Channels Share your companys commitment to sustainability Encourage the same level of sustainability Create education & training programs for your sales force Provide customer-oriented sales tools

27. Honda Power Equipment New program supports dealer participation in Hondas global sustainability initiatives Eco-Guide illustrates specific practices dealers can undertake that dovetail with Hondas environmental strategies Guide provides a comprehensive list of recycling, energy savings & heating, cooling, water & community conservation initiatives, along with ways for dealerships to implement these activities

28. ISO 14001 Certification The benefits of using ISO 14001 include: Reduced waste management costs Consumption of energy & materials savings Lower distribution costs Improved corporate image among regulators, customers & the public Certification assures company management & employees, as well as external stakeholders, that environmental impact is being measured & improved

29. Komatsu 18 Manufacturing facilities ISO 14001 Certified worldwide Developed low-VOC paint to meet British environmental regulations Amount of volatile organic solvents released into the air reduced by 66% Works with suppliers & their customers who are committed to environmental conservation

31. First quarry in the world to operate 100% under solar power 3,444 solar panels generate more than 1,120,000 kilowatt hours of renewable energy/year Reduction of 15,000+ tons of CO 2 emissions from 2010 to 2020 Monetary savings leading to greater profitability & depreciation tax liability BoDean Mark West Quarry Santa Rosa, California

32. City of Saskatoon, Saskatchewan Used recycled rubble materials on 540 m stretch of road Cost savings of $268,000 Reduction of hauling distances Reduced virgin material quantities Elimination of landfill fees Energy Savings of 127,560 Megajoules

34. Achieving Your Sustainable Value Evaluate How sustainability fits within your current business model Trends affecting your primary markets Research Relevant sustainability programs & rating systems Sustainability initiatives in your targeted regions Sales channels to reach customers who value sustainability

35. Develop Sales programs focusing on the sustainable value of your equipment Education & training programs for your sales force Customer-oriented education & sales tools Execute Marketing strategies for incorporating sustainability into overall branding A sales/marketing approach stressing the positive impact on your customers & theirs Achieving Your Sustainable Value

36. Support Strategies & tactical approaches with the right mix of marketing materials that dovetail with your existing efforts Expand On all of the above with customization related to the environmental standards of each new global geographic region

37. Questions

38. Brian Barlow President/CEO 2012 AEM Annual Conference © BARLOW 2012