1. CABA / BSRIA Market Sizing North America Intelligent and Integrated Technologies Kick Off Teleconference Wednesday June 3rd 2009 1

2. Project Scope  Project comprises in-depth studies of the following markets by value of products/systems, value add, services, and vertical markets by building type 1.Environmental (HVAC) Controls 2.Fire Detection and Alarm 3.Security Systems (Access Control, CCTV / Video Surveillance, Intruder Alarm) 4.Lighting 5.IT-Convergence 2

3. Research Methodology Total market sizeBy various segmentation Face to Face InterviewTelephone Interview Quantitative Analysis Qualitative Analysis Trend, Decision making process, Attitude, Customer value, etc. 3

4. Our Study Methodology – “Expert to Expert”  Stage 1 – Establish project structure and base data  Sponsor discussions  Identify interview targets  Secondary (desk) research  Questionnaires developed  Report template finalised  Stage 2 – Data collection, verification and assessment  Field work: Market experts, in-depth face to face and telephone interviews with e.g. Manufacturers / Specialist installers & system integrators / Consultants / End Users  Analysis / interpretation of data collected  Stage 3  Preparation of report  Stage 4  Presentation 4

5. Our Study Methodology – Interview Objectives What we seek during interview with sponsors and participating respondents  Hard data on value and segmentations of sales  Understanding of qualitative aspects / trends / technologies  Iterative process and triangulation to allow for non-respondents to –Check numbers –Check trends –Check market shares Number of interviews  Approx 100-120 - half face to face 5

6. Scope Details This study is about integrated and converged intelligent building control systems that provide for the management of non-domestic buildings such as control and supervision of all forms of environmental control (IBC(e)), fire detection and alarm (IBC(f)), electronic security (IBC(s)), lighting systems (IBC(l)) and IT-Convergence. We shall:  Establish 2008 market sizes by:  Products at first point of distribution prices,  Products at engineered and commissioned prices and therefore total value added of the business by all in the supply chain  Size of the service and maintenance market  Chart the growth in the market, looking back at least 5 years and forecasting 5 years ahead, assessing hardware price erosion so that we can establish "real" growth over the last 5 years. 6

7. Environmental (HVAC) Control (IBC(e)) Scope  Central supervisory computers and software  Freely programmable ddc controllers  Fixed function and dedicated ddc controllers  LCD based display panels  Programmable logic controllers (PLCs)  Communication elements  Sensors  Conventional controllers  Motorised valves, damper actuators, and variable speed drives. 7

8. Fire Detection and Alarm (IBC(f)) Scope  Conventional and Analog Detectors (including early warning products such as aspirating / air sampling systems)  Conventional and Analog Panels (including digital modules)  Network Supervisors (including communication elements, PCs, mimic panels, software)  Sounders/Indicators (including alarm flashers, pre-recorded voice alarm devices, fire location flashing indicators and fire panel location flashing indicators)  Manual Call Points. 8

9. Electronic Security (IBC(s)) Scope CCTV / Video Surveillance – IBC(c)  Cameras (analogue/digital, IP Network, digital still cameras) and Housings / Mounts, Fixed, PTZ (Point/Tilt/Zoom), Analogue to Digital Converters (Encoders)  Video Recording (Digital Video Recorders, Network Video Recorders, Other recording equipment, Video servers)  Network / Communication Elements (Matrix Switching Systems, Video Multiplexers, Routers, Quad processors / splitters, Decoders, Servers, etc.)  Front End equipment (Hardware, Management Software)  Other associated equipment (Illumination etc.)  Video Analytics Access Control Systems – IBC(a)  Readers (Keypads, Magnetic stripe/Barcode, Proximity, Smart cards)  Biometric Identification (Fingerprint, Iris, Other (face, voice, handprint, etc.))  Door Controllers  Network / Communication Elements  Front End Systems / Management Software  Entry phones  Badges / Badge-making equipment.  Intruder Alarm Systems – IBC(i)  Intruder Detectors  Audio-Visual Signallers (Alarm Indication)  Control Panels  Network Controllers/ Communication Elements, Radio Emitters  Front End Systems / Management Software. 9

10. Lighting Systems - IBC(l) Scope  Intelligent Luminaires  Bus-based Systems  Stand Alone Systems  Window Shade Systems 10

11. IT-Convergence Scope  What is IT-convergence & why is it important?  Technology – appreciation  Demand drivers & value propositions  Roadblocks & how to overcome them  Market potential for IT-convergence  Identifying priority markets  Organising for IT-convergence  The need for partnerships  Major players to this market  Incidence of integration between technical infrastructures such as building controls, lighting, security and fire detection  Analysis of integration demand by 16 different vertical markets (building types)  Assessment of the impact of "open systems" and the identification of those manufacturing approved devices to BACnet, EIB and LonWorks or other standards for all types of IBC services will be analysed, including measuring the penetration of each of these open standards versus the penetration of proprietary communication standards. 11

12. Segmentation Sales of installed systems will be broken down by:  Geography: North East USA, Mid West USA, West USA, South USA, Canada.  New construction, refurbishment, retrofit  Public, commercial, industrial  Single, multiple or multi-site projects  Size of building/contract value  Vertical market end-user building categories by  Banking/finance/insurance, offices, retail, hotels/catering, entertainment/leisure, transport, other commercial buildings, health care, education, government, other public buildings, high tech including electronics, life science, computers and communication, assembly, warehouses and other industrial buildings. 12

13. Distribution  Assess the proportion of sales passing through different channels of distribution:  e.g. For IBC(e) 1. Direct to end users/building owners 2. Mechanical Contractors 3. Specialist value added resellers (VARs) such as system integrators / controls contractors 4. Resellers (Wholesalers/Distributors) 5. OEMs 6. Energy Service/Facilities management contractors  e.g. For IBC(f) & (s) 1. Direct to end users/building owners 2. Electrical Contractors 3. Specialist value added resellers (VARs) such as system integrators 4. Resellers (Wholesalers/Distributors) 5. Facilities management contractors  We will also report in qualitative terms on the part that third party suppliers play in the IBC business 13

14. Industry Dynamics, Drivers, Penetration, Growth Prospects, Forecast  We shall review the industry dynamics and the importance of the demand drivers so that we can assess the prospects for growth and give a growth forecast by products and by installed systems for the next 5 years  Compare penetration of sales per capita with other major developed markets of the world where we have carried out similar research.  The two (2) measures for this analysis will be System sales per capita charted against :  Construction output per capita  GDP per capita. 14

15. Deliverables Section 1 - Executive Summary  This will provide a summary of the key findings of the research including size and structure, supplier shares, trading patterns/procedures and comparison with other developed markets in the world where BSRIA Proplan have carried out similar research  For IBC(e), Technology, compatibility issues, technical standards and codes of practice will be analysed with particular emphasis on the progress made since our 2005 IBC(e) study  The role of all those involved in the supply chain and any changes that are taking place because of technology, consolidation or downsizing will be analysed and their implications discussed 15

16. Deliverables (continued) Section 2 – Report and Analysis  Market Analysis – 2008 Size, Structure and Form - Will provide a performance review sizing the market for IBC(e) in seven (7) different product segmentations, total direct and indirect product sales, total value added by manufacturers and by third parties, total installed system sales, total maintenance and total business  Market Analysis - Building Type: Commercial, Public, Industrial and 18 vertical markets by building type and will assess future prospects in new construction activity and through existing building stock including the refurbishment and retrofit opportunities:  Market Analysis – Suppliers  Supplier Share - all significant suppliers to the market will be listed together with their market share band for both product and system.  Supplier Profile - all significant suppliers to the market will be profiled including facts about their size, activities product scope and web site details.  Market Analysis - Third Party Suppliers –System Integrators –Energy Management Service Companies –OEMs of HVAC hardware  Trading Practices and Procedures  Industry Dynamics and Growth Prospects  Market growth: 2003 to 2008 and Forecast to 2013 16

17. Timetable  1 st Steering Committee Meeting (Teleconference) June 4 th, 12pm EDT  Target Completion November 2009 ActivityAnticipated Date(s) Project ApprovalWeeks 1 - 2 Primary ResearchWeeks 3 - 12 Data AnalysisWeeks 12 - 20 Final Project DueWeeks 20 - 22 17