High Performance Buildings: Achieving Superior Performance for Life

1. High Performance Buildings:Achieving Superior Performance for Life Michel van Roozendaal Vice President Service, Controls, Turnkey and Aftermarket Ingersoll Rand Climate Solutions – Europe, Middle East, India and Africa

2. My Background • Leader for the Ingersoll Rand Climate Solutions services business in Europe, Middle East, Africa and India • Responsible for managing the after-market service and parts, turnkey and controls contracting, and performance-based energy services businesses for commercial buildings and transportation • Extensive controls and service industry expertise in HVAC, fire and security, building controls and industrial automation • Previous leadership roles at UTC and Danaher • Engineering degree from Delft University, MBA from INSEAD • Based in Brussels

3. What Impacted Me

4. Our Agenda • Today’s European and UK operating realities • What is a high performance building? • Adopting a high performance buildings approach • Trane High Performance Buildings offering • Case studies • Your questions

5. Most companies were affected by the long, severe recession Recovery is underway in some sectors; uncertainty remains Organizations are focused on productivity and cost reduction Access to cash and credit remains challenging No appetite for capital investments without clear payback Energy, operating costs rising faster than most other costs Energy equals ~40% of a commercial building’s operating costs* Commercial and residential buildings account for ~40% of EU energy consumption* All buildings are responsible for 36% of EU CO2 emissions* There is an increase in public policy activity aimed at: Reducing energy consumption and protecting the environment Stimulating the economy and creating jobs Increasing inspection/certification requirements Renovating 3% of European buildings (above 250 m2) per year Expanding use of Energy Performance Contracting Today’s European Operating Realities Unprecedented challenges in our energy and operating environments * European Commission Energy

6. Growing emphasis on the UK Climate Roadmap Electricity market reform The “Green Deal” to improve UK building efficiency Carbon Reduction Commitment scheme UK and EU renewable energy plan 25% of UK power stations will close over the next decade Replacement cost = £110 Billion Demand for electricity expected to double within 40 years 1.8 million nondomestic buildings are responsible for 18% of UK CO2 emissions Other Factors Affecting the UK Picture UK has ambitious carbon-emission reduction and renewable power goals * European Commission Energy

7. “Green building has risen rapidly up the agenda in recent years, but that hasn’t translated into mainstream delivery. Good practice is the exception, not the norm. Now is the time for action.”  - UK Green Building Council “Now is the Time for Action” - UKGBC Comfort Safety UK sees potential in high performance green building approach

8. Biggest opportunity is with existing buildings 1 billion square meters of commercial space across Europe Large cost saving potential for energy improvements Retrofit enables 20-50% energy and operating cost savings Potential job creation Up to 3 million new “green” jobs can be created (EuroAce.org) Ability to reduce environmental impact Retrofit can reduce European greenhouse gas emissions by ~ 12% (EuroAce.org) Proven technology, low risk retrofit approaches and financing are available to public and private entities What this Means for Furthering Energy Efficiency Improving existing building performance is key to achieving EU objectives of reducing energy consumption and greenhouse gas emissions 20% by 2020

9. High performance buildings: Are safe, comfortable and efficient Help owners and occupants achieve business missions Use a unique methodology – combining financial, operating and energy analysis with specialized services and available financing Performance standards are created, measured and continually validated to deliver established outcomes Complement LEED, BREEAM, ASHRAE and other widely accepted standards and guidelines Meet specific standards for energy and water use, system reliability and uptime, environmental compliance, occupant comfort and safety and other success factors High Performance Buildings Defined High performance buildings deliver optimal efficiency, reliability, value and comfort

10. Goal is to Enhance Operational Effectiveness High performance buildings are designed, constructed, operated and maintained to enhance organization and occupant effectiveness • Providing a safer, healthier, more comfortable environment • Operating reliably with minimum unscheduled downtime and fast recovery • Maintaining performance within acceptable tolerances throughout their lifespan • Enhancing organization and occupant performance, retaining/increasing value and adding luster to the organization’s brand and reputation

11. Typical buildings have occupied lives of 50-75 years or longer Operating costs typically account for 60-85% of building lifecycle costs – compared to 5-10% for design and construction costs High performance buildings reduce lifecycle costs so organizations can invest in other priorities and make buildings “assets” instead of “expenses” Performance standards are created, measured and continually validated to deliver desired outcomes Standards based on desired performance levels and industry benchmarks are typically set for: Energy and water consumption System reliability Environmental compliance Occupant health, safety and comfort A Whole Building, Whole Lifecycle Approach Sizeable opportunities to improve the performance of existing structures

12. Maintenance Innovations Enable Performance Holistic, technology-enabled, knowledge-based approach is integral to establishing and sustaining standards throughout a building’s occupied lifespan • Embracing predictive building maintenance strategies • Establishing and maintaining sound operating metrics • Adopting performance-based service concepts A poorly designed building operated and maintained effectively outperforms a well-designed building with poor operating and maintenance practices

13. Adopting a High Performance Building Approach

14. Determine Driving Factors for Change • Every business, building and project is unique • Modeling begins with understanding: • Organization’s mission • Specific goals and objectives • Appetite for risk Building mission and use determine investment strategy

15. For example: Identify and Quantify Mission-Critical Factors Consider the cost of a building failure on operations and stakeholders

16. Assemble a team Choose a qualified energy services partner with local experience vs. “free” auditing services Define program objectives Reduce operating costs Increase operational performance Improve occupant comfort and safety Enhance employee productivity Achieve environmental certification Conduct a Critical Building Systems Audit Build an energy management team with buy-in from key internal stakeholders, including owners, managers and department heads

17. Gather Relevant Data and Make Comparisons • Determine current level of performance of key building systems: HVAC, lighting, water, electrical, others • Gather 3-5 years of actual energy cost data • Use actual data to estimate annual cost of planned and unplanned maintenance • Compare actual costs against industry averages and best-in-class performance Annual energy cost/sq ft

18. Determine Changes That Make Financial Sense Taking a lifecycle, whole-building approach offers the best long-term ROI

19. Top 25 Energy Conservation Measures • Many, many Energy Conservation Measure (ECM) technologies and applications  need a methodology to assess and rate • Methodology developed using Six Sigma analysis processes and tools • Evaluation process based on 5 key customer and Trane “importance factors” • Savings potential, Practicality, Commercial viability, Risk management, Business differentiation • Score of 0-100% with 100% being the best ranking Use Six Sigma methodology to select energy measures

20. Consider All High Performance Building Benefits • Human performance – Studies show high performance buildings enhance occupant productivity, comfort and morale • Organizational performance – High performance buildings enable organizations to apply their resources to other priorities and improve results • Property values – High performance buildings command premium rents, enjoy higher occupancy rates and sell for more on the open market • Brand and reputation – High performance buildings help organizations attract and retain employees, students, customers and community supporters

21. Trane High Performance Buildings Capabilities:Organizations Achieve Financial, Sustainability and Productivity Goals

22. Total Lifecycle Solutions Design Install Operate Renovate and modernize

23. Trane Offers Across Europe Understanding EU and national regulations and requirements Designing efficient HVAC installations Identifying measures to improve HVAC efficiency, reduce operating costs Developing customer-specific solutions to boost efficiency, productivity and mission effectiveness Providing country-specific inspection services for Energy Performance Buildings Directive compliance Replacing and retrofitting R22 equipment We make the High Performance Buildings concept tangible and real Country-specific offerings for new buildings, major refurbishments and existing installations Growing our high performance building capabilities in UK and across Europe

24. Trane Offers in the United Kingdom Energy modeling to simulate conservation measures, collect data and analyze savings Whole-building, whole-lifecycle system performance assessments Predictive maintenance solutions that tie building performance to mission and operating objectives Turnkey solutions to improve energy efficiency at every phase from design through service More mature High Performance Building offering Incorporating analysis and planning, energy procurement and energy conservation Improvements to existing buildings can achieve major cost savings

25. Trane High Performance Building Offering

26. Trane High Performance Buildings for Life

27. Next Steps in Evolution: Trane Intelligent Services Leverages an existing facility’s investments by using technology to access operational data and optimize building performance • Benchmarking current building performance • Using custom analytics to provide performance improvement recommendations • Performing recommended actions to meet business needs • Continuously monitoring and analyzing data against operating benchmarks • Documenting progress toward high performance building status Growing Trane Intelligent Services capabilities in UK and across Europe

28. New Ways to Think About Service Component-based Moment-in-time view Human intelligence – best individual Low tech Reactive, corrective Truck-based, slow response Word of mouth benefits Leveraging technology to create a whole-building, total-lifecycle, knowledge-based approach to establishing and maintaining performance standards Service Today Service Tomorrow • Component & system-based • Continuous (past & present) • Collaborative “brain trust” + human intelligence • Leverage technology • Proactive, preemptive, predictive • Immediate access, automated • Performance scorecard Taking a holistic, technology-enabled approach to high performance

29. Proving the Model: Case Examples of Organizations on the High Performance Building Journey

30. SITUATION Trane Care customer with needs including: environment, efficiency, reliability improvement APPROACH Implemented Trane Care, a unique service package for high performance buildings, including: Refrigerant retrofit Renewal of compressors, heat exchangers and other key HVAC system elements Long-term lifecycle management High Performance Building Case Study Royal London Hospital • RESULTS • Reduced lifecycle operating costs • Improved HVAC system performance and reliabilty • Reduced risk of environmental problems Addressing building owner needs with service innovation

31. SITUATION Customer looking to optimize HVAC performance, reduce costs and environmental emissions METHODOLOGY Worked with consulting partner to evaluate needs in line with operational goals and recommend ECMs: State-of-the-art monitoring and performance optimizing software Two high-performance heat pumps Innovative thermal energy storage system to reduce cooling costs District heating High Performance Building Case Study World Trade Center Amsterdam • MEASURE/VALIDATE RESULTS • Estimated 25% reduction in annual energy costs • Anticipated 33% reduction in carbon emissions Improved comfort level for occupants, resulting in fewer comfort calls

32. SITUATION Trane customer looking to save energy, reduce environmental impact and improve plant productivity METHODOLOGY Analyze building systems, energy use and impact on operational goals Recommend mission-focused ECMs Design and install upgrades More efficient chilled water system State-of-the-art building automation system Long-term service/waranty agreement High Performance Building Case Study Transitions Optical – Tuam, Ireland • MEASURE/VALIDATE RESULTS • Upgrades helped company reduce production costs • Estimated 130,000 Euros in annual energy cost savings Created a more productive, efficient facility for the company and employees

33. SITUATION Trane customer committed to reducing energy use, operating costs and environmental impact METHODOLOGY Analyze energy and environmental performance Recommend mission-focused ECMs Design and install upgrades New chilled water system Centralized control system High Performance Building Case Study P.P. Porty Lotnicze Terminal – Warsaw Chopin Airport • MEASURE/VALIDATE RESULTS • Enough energy savings over 10 years to power a city of 11,000 for a year Created a more comfortable, efficient environment for passengers

34. SITUATION 605-room hotel determined to reduce energy use and environmental footprint while ensuring guest comfort and staff productivity APPROACH Comprehensive energy analysis Energy conservation measures High-efficiency chilled water system Remotely accessible building automation system Ongoing maintenance program High Performance Building Case Study Sofitel London Heathrow • RESULTS • Physical environment linked to hotel mission • Estimated 15% reduction in energy use • Additional benefits are anticipated Linking building performance to guest comfort, employee productivity

35. Bottom-Line Case for High Performance Buildings • High Performance Buildings: • Drive bottom-line results with lifecycle savings and ROI • Link buildings’ performance to their unique missions • Help organizations meet new and emerging environmental requirements and goals • Create better places for people to work, learn, heal and live their lives • Make people and organizations more productive and efficient

36. Contact Information Michel van RoozendaalVice President Ingersoll Rand Climate Solutions Europe, Middle East, India and Africa   +32 2 746 1918 Michel_vanRoozendaal@irco.com