Andrew DeGuire

Vice President, Strategy & Acquisitions

Building Efficiency

Energy Efficiency Now! 27th July, 2010 @ Cleantech Focus Chicago

Local branch network

500+ worldwide locations

Installed base of customers unmatched in industry

Branch and site managers with personal relationships

Service depth

16,000 HVAC technicians and front-liners

14,000 global workplace solutions service

delivery personnel

Wide range of capabilities to service customer needs

HVAC systems depth

Broad equipment and controls offering

Market leading integration capabilities

4,000+ sales people

Leadership in energy management capability

Johnson Controls - Building Efficiency

Overview

Market Leadership

150 countries with 1 million+ customers

$4.6B in energy savings guarantees

Over 1 billion square feet of customers'

facilities under management

#1 market share for:

- Complex HVAC controls

- Large chillers

Let’s consider a typical building…

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2000 W 20 Bulbs X

100 W / Bulbs

=2000 W

Now, what if we decided to fulfill that demand by making

cleaner energy through solar panels…

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10 Panels X

200 W / Panel

= 2000 W

20 Bulbs X

100 W / Bulbs

= 2000 W

Or, what if we decided to change the lights to LEDs?

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2 Panels X

200 W / Panel

= 400 W

20 LED Bulbs X

15 W / Bulb

= 300 W

And then add a lighting management system that reduced

energy need by 50%...

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1 Panel X

200 W / Panel

= 200 W

20 LED Bulbs X

15 W / Bulb

+ Lighting Controls

(50% reduction)

= 150 W

And then add a lighting management system that reduced

energy need by 50%...

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1 Panel X

200 W / Panel

= 200 W

What is a better investment?

20 LED Bulbs X

15 W / Bulb

+ Lighting Controls

(50% reduction)

= 150 W

And then add a lighting management system that reduced

energy need by 50%...

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What is a better investment? What is a better investment?

Making better energy or Using energy better?

1 Panel X

200 W / Panel

= 200 W

20 LED Bulbs X

15 W / Bulb

+ Lighting Controls

(50% reduction)

= 150 W

The largest opportunity for GHG abatement is energy efficiency

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Efficiency begins at home

Johnson Controls’ Glendale Headquarters

Incremental Cost of Energy $11.3 M

Efficiency Measures

Annual Rent Savings $1.53 M

Electricity Savings with -$67 K

doubling space (2008 vs 2010)

Greenhouse Gas Equivalent 872.7

Emission Reduction (tons/year)

Payback ~7 years

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Solar Heaters

Green Roof

Personal Environment

Monitors

Re-circulated water

Floor Vents

Skylight

Electrical shades

Insulation

Energy Efficiency can be achieved across sectors, geographies

and types & sizes of projects

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Lakehead University

Ontario, Canada

Solutions

Service agreement, facility

upgrades

2-phase performance contract to

install efficient boilers, chillers

and lighting system

Results

Guaranteed savings of $850,000

Web-based Metasys® building

management system allowed

control over any equipment, all

from a laptop or handheld

Oranienstein Army

Campus

Beiz, Germany Solutions

Performance contract with

guaranteed savings

Biomass boiler and gas-fired CHP

plant

Lighting upgrades

Results

Energy cost reduced by 69%

annually

Carbon emissions reduced by

76% annually

City of Compton,

California

Solutions

Performance contract for new

lighting for city streets, city

facilities and parks plus citywide

leak detection study

Results

Energy and operational savings

of more than $4.4 million

Improved worker productivity and

public safety

Water loss identification and

reduced waste

0

5

10

15

20

25

FY06 FY07 FY08 FY09 CY10

KWhs/SF/Yr

0

5

10

15

20

25

30

FY06FY07FY08FY09CY10

KWhs/SF/Yr

•

Lewis and Clark

Year Built: 2005

Size: 122,000 sq ft

Occupants: 400

Harry S. Truman

Year Built: 1983

Size: 753,138 sq ft

Occupants: 2800

Wainwright

Year Built: 1891

Size: 234,599 sq. ft.

Occupants: 693

9.0 % Reduction

28.0 % Reduction

23.4 % Reduction

Additionally, savings can be achieved across buildings of all ages

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Procuring energy efficiency & distributed renewables

Bundled approach aligns with integrated nature of building systems

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Source: JCI analysis

Energy efficiency is a vehicle to provide renewable energy solutions to customers

0 10 20 30 40 50

Average Project Payback (Years)

Lighting Upgrades

Controls Improvements

Water

Chiller Retrofit

Building Envelope

Solar PV

Different component improvement

measures provide different

paybacks

Understanding the impact of

improvement measures on other

system components and the

system as a whole is key to

designing a cost and carbon

efficient solution

Integrating improvement

measures with planned capital

replacement cycles enables

shorter paybacks

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A confluence of complementary products, services and

solutions is required for effective efficiency improvements

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Johnson Controls Approach to Energy Efficiency

Taking the right steps in the right order

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Energy Measurement

& GHG Management

Building Systems Audit &

Simulation

Energy Efficiency

Renewable Energy

Education & Involvement

Integrated approach from a company that understands the building lifecycle

ENERGY &

GHG DATA

MANAGEMENT

SUSTAINABILITY

STRATEGY

GREEN BUILDING

DESIGN & RETROFITS

ENERGY PERFORMANCE

CONTRACTING

HVAC EQUIPMENT

RETROFITS

BUILDING

AUTOMATION

SYSTEMS

BUILDING SYSTEM

INTEGRATION

ENERGY EFFICIENT

EQUIPMENT

ON-SITE

RENEWABLE

ENERGY INSTALLATION

SUSTAINABILITY

STRATEGY &

COMMUNICATIONS

Johnson Controls

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APPENDIX

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There are various technology levers that can be utilized

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Software Application Provider

Network Communications

Systems Integration

Building Automation &

Equipment

Lighting – LEDs, Controls Windows and Materials

Serious Materials

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Case Study: State of Missouri

Situation: 32 million sq. ft. and hundreds of State

buildings; $300 million in operation and maintenance costs

Solution: Design and implementation of sustainable design plan to optimize the State’s real estate portfolio

Methodology:

Upgrade facilities, control and information management systems in 1,000 buildings

Facilities assessment program to provide a “first ever” comprehensive look at real estate portfolio

Connect various systems and applications such as building automation systems, work order system, utility bill management system, energy management system, etc.

Guaranteed $9.5 million annual savings through reduced energy usage, process improvements, monitoring and management, and more efficient real estate portfolio management

Results:

Annual savings of over $35 million per year

Expected one year payback

Reduction of over 205 million pounds of carbon dioxide

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Case Study: Lakehead University

Thunder Bay, Ontario, 7600 students

Challenges:

No capital dollars for improvements

$44M deferred maintenance backlog

Outdated central plant; leaking steam lines; 40-year old chillers

Project Improvements:

Service agreement, facility upgrades

2-phase performance contract to install efficient boilers, chillers and lighting system

Results:

Guaranteed savings of $850,000

Reduced energy costs and operational costs which allowed for new entrance and campus expansion

Web-based Metasys® building management system allowed control over any equipment, all from a laptop or handheld

JCI Energy Solutions Business

Case study: Oranienstein German Army Campus, Diez, Germany

Customer need

Reduce energy cost and carbon emissions across 100

buildings

Provide visibility into energy usage of army campus

Results

Energy cost reduced by 69% annually

Carbon emissions reduced by 76% annually

Enabling technology

Performance contract with guaranteed savings

Biomass boiler and gas-fired CHP plant

Lighting upgrades

Optimization of building control system

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Renewable energy

highlights:

850 kW biomass boiler

and biomass combined

heat and power plant

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Case Study: Compton, CA

Driver: Volatile energy costs and outdated infrastructure

Solutions: Performance contract for new lighting for city

streets, city facilities and parks plus citywide leak detection

study

Results:

Energy and operational savings of more than $4.4 million

Improved worker productivity and public safety

Water loss identification and reduced waste

Disaster preparedness education event for city’s first responders