Pg 1 1 Introduction to Sustainable Solutions Johnson Controls, Inc. Be a leader. Use less energy. Use smart energy.

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Introduction to Sustainable Solutions

Johnson Controls, Inc.

Be a leader. Use less energy. Use smart energy.

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A more comfortable,

safe,

and sustainable world.

Our Vision:

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Our business approach:

We start by listening…

… we want to know what concerns you

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What’s on your mind?Energy prices, global economy, water, emissions, green public pressure…

“the brand value from being ‘green’ is increasingly valuable among environmentally conscious consumers” -McKinsey Global Institute

“high energy costs alone can

be a competititve disadvantage

in today’s high-price

environment and sufficient

motivation to focus senior

management attention on

energy efficiency.”

‘McKinsey Global Institute

How do you address these concerns and opportunities?

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Energy Prices Increasing

Water Rates Increasing

Demand for “Green” Increasing

Our Value Proposition

Energy Efficiency

Water Efficiency

YourConcerns

“Perfect Storm”

SAVE Money

SAVE Resources

Sustainable, Green Environment

Commodity Prices

Water Contaminants

Challenging Global

Economy

GHG Emissions

Water Scarcity

Climate Change

Your Benefits

Renewable Energy

Asset Renewal

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Start with sustainability

Sustainability doesn’t require sacrifice;it requires a new frame of mind

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Sustainability and green are competitive drivers…

75% said

sustainability is either

an important part of corporate strategy or expect it to be important in the future

Why have a sustainability strategy?

1.To have a competitive advantage

2.To be seen as leaders

3.Public interest in the environment

Recent global survey of CEOs on the topic of sustainability:

Source: Vandiver Group and Pinnacle Worldwide, 2008

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We provide SOLUTIONS to help you on the path to sustainability…

asset renewal

energy and water efficiency

community engagement

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Social Responsibility

• Job creation • Local MBE participation

• Economic development

• Community education and public awareness

Environmental Stewardship

• Greenhouse Gas reduction

• Lower water and fossil fuel consumption

Economic Benefits

• Energy savings• Water savings• Operations &

Maintenance (O&M) savings

• Improved occupant productivity

Path to Sustainability

Economic Benefits + Environmental Impacts + Social Responsibility

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Water Solutions

Green Buildings

Renewable Energy

Water Conservation

and Efficiency

Government

Efficiency Now – it’s never been more important!

Energy Efficiency

Community Engagement

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Efficiency Now – It’s never been more important

THE PROBLEM:

People who own and manage buildings are under intense pressure to:

Manage higher energy and operating costs

Reduce the environmental impact of their building and operations

Improve comfort and productivity of their occupants

THE SOLUTION:

We believe improving efficiency in buildings is the first and more important step to relieve the pressure.

We’ve invested in the people and technologies to maximize efficiency.

We deliver efficiency with ingenuity and integrity.

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A lot of companies can help you be “green”…What makes Johnson Controls unique?

Leadership and Experience

Leading Technology Renewable energy

Wireless environments and tools

Modular central utility plants

Carbon and water footprinting

Proprietary tools to do an in-depth analysis of your facilities Huge database of water and energy improvement options for your environment

Custom modeling tools

Industry Experience Over $4.6 billion in energy and water efficiency savings guarantees

We have helped our customers save 10 million metric tons of carbon dioxide since 2000

Largest performance contractor in North America

2/3 of our project development teams have Master’s degrees or higher

2/3 of our project development teams are Certified Energy Managers (CEM)

Extending the Savings We’ll help you extend your savings by educating employees and other occupants

Technology

Tools

End users

Experience

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Behind every one of our employees are significant resources…

Renewable Energy

Green Buildings

Water Conservation

Service and Maintenance

Wastewater

Municipal Utility Solutions

WirelessApplications

Energy Plants

Facilities Management

Energy Efficiency

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In a nutshell, we can help you…

CREATE a healthy environment

SAVE ENERGY AND WATER

(through environment retrofits and

other strategic tools)

USE SMART energy

(through renewable energy)

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Markets and Services

Markets We Serve Services We Provide

K-12 Education

Health Care

Local Government

PublicHousing

Energy Performance Contracting

Renewable Energy Solutions

Water Solutions

Green Buildings

Innovation Services

Higher Education

Summary

Learn More About Johnson Controls

State Government

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Energy Performance Contracting

“Energy efficiency is the greatest form of new energy

we have.”

Fortune magazine, 2008

Back

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Energy Performance Contracting

In short, Performance Contracting is a procurement tool that allows you to leverage the savings you get from making building improvements in order to pay

for the improvements.

How does it work?

Reduce energy usage

Reduce water usage

Reduce operating and maintenance costs

Reduce emissions

Reduce waste

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Lighting, water, HVAC, renewable energy, building upgrades, wireless, meters/controls

Energy Performance Contract with Savings Guarantee

Detailed audit Sophisticated analysis tools used to gather data and develop

customized solution

Improvements such as:

Customer Discussion to Identify Goals:

energy efficiency, emissions reduction, operational savings, water savings, etc.

Customer commitment

Preliminary audit/Site visit

Reduce Maintenance

Lower Water Use

Reduce Emissions

Reduce Ops

Budget

Lower Utility Use

Reduce Waste

Meet Customer Goals

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How do we reduce energy and water use?

We use a host of products and services:

Lighting upgrades

Building management systems

Water conservation measures

Temperature controls

Chiller and boiler upgrades

Facility repairs and upgrades

Renewable energy (solar PV electricity, solar thermal heating, geothermal, etc.)

Green building solutions

Wireless infrastructure

Others

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How are your costs impacted with Performance Contracting?

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Your Utility BillYour Utility Bill

Before

Performance Contracting – your costs today

Note: this is for illustrative purposes

Your Utility Bill

Payment for Efficiency Upgrades

Your Savings

Your Utility Bill

Payment for Efficiency Upgrades

Your Savings

Before During

Performance Contracting – during the term of the contract

Immediately begin to enjoy the savings

Note: this is for illustrative purposes

Your Utility Bill

Payment for Efficiency Upgrades

Your Savings

Your Utility Bill

Payment for Efficiency Upgrades

Your Savings

Before During After

Performance Contracting – enjoying the full savings

Enjoy the full savings

Note: this is for illustrative purposes

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Energy Performance Contracting – Things to Know

Johnson Controls is the largest supplier of performance contracting guarantees in the U.S.

Energy and water savings are largely guaranteed by us: our engineers can determine the impact the building improvements will have on your utility bills so we guarantee those elements of our work

We are experts in energy and water efficiency and the solutions required to maintain your facility’s peak performance

We can include renewable energy in the collection of environment enhancements we perform

Your operating costs can be reduced without capital expenditures

Your environment is healthier and more productive

Things to Know