1. Market Data ASHRAE May, 7 2009 Keith Stippich

2. Global Energy Consumption Global Energy Consumption 2005-2010 (+10.9% overall increase) 400 350 50 0 300 250 200 150 100 US and CanadaWesternRussiaOther Europe Midddle EastAfricaLatin AmericaChinaIndiaJapan/KoreaOtherTotal EuropeAsia/Australia 2005 2010 Source: US Department of Energy – Buildings Data Energy Handbook

3. US Energy Consumption US Building Energy Consumption Cost 2010 Total US Energy Consumption 2010Direct Site Only (-50% of Total) (-20% of GDP)Total: $415B Transportation 28% Industry 32% Residential Buildings 22% Commercial Buildings 18% Non-Identifiable $1 02. 1B 25% Other Identifiable $1 35.5B 33% HVAC Identifiable $177.4B 42% Source: US Department of Energy – Buildings Data Energy Handbook

4. Construction Data US-Non Residential Construction 2006-10 Value put-in-place - Annualized Monthly Census data Jan Apr Jul Oct Jan Apr Jul Oct Jan Apr Jul Oct Jan Apr Jul Oct Jan USD(M)YOY Growth 25% 20% 15% 10% 5% 0% -5% -10% -15% -20% -25% 500 450 400 350 300 250 200 150 100 50 0 Source: US Census Bureau

5. US Construction Stimulus? -10% -20% -30% -40% 20% 30% 10% Source: US Census Bureau 0% Jan Apr Jul Oct Jan Apr Jul Oct Jan Apr Jul Oct Jan Apr Jul Oct Jan Public vs Private Annualized Commercial Construction Growth 2006-10 (Put-in-Place) Public: 38% of Total (Dec2009)Private: 61% of Total (Dec2009)

6. Stimulus Infrastructure Spending Only $20B paid out in first year, which includes non building projects (highways, trains, levees)

7. US Non-Residential Construction Awards US Non-Residential Contruction Awards - Total 40% 200420052006200720082009 2010201120122013 30% 20% 10% 0% -10% -20% -30% -40% Values Surface 2009/2010 forecasts are down ~20% from Feb 2009, but stable since Nov 2009 Sour e: McGr w-Hill Feb 0 Source: McGraw-Hill, Feb 2010 -50%

8. US Non-Residential Construction Awards US Non Residential Construction Awards 2008, 2009, 2010 70 60 50 40 30 20 10 - CommercialOfficesLodgingOtherSchoolsHealthcareRecreationGovernmentReligiousDormitories Manufacturing Warehousing Total award growth rates: 1.5% (2008), -30.4% (2009), -1.2% (2010) Source: McGraw-Hill, Feb 10

9. Construction Data Forecast vs. Completions Institutional Construction Awards vs Completed Correlation 15% 10% 5% 0% 2004 2005 2006 2007 2008 2009 2010 2011 2012 2013 -5% -10% Completed Construction (CB)Two Year Award Avg (Current/Prior) Sources: US Census Bureau, McGraw-Hill

10. Construction Data Forecast vs. Completions Commercial Construction Awards vs Completed Correlation 2004 2005 2006 2007 2008 2009 2010 2011 2012 2013 40% 30% 20% 10% 0% -10% -20% -30% -40% Completed Construction (CB)Two Year Award Avg (Current/Prior) Sources: US Census Bureau, McGraw-Hill

11. US Non-Residential Construction 1985-2006 100% 80% Improvements/Repair 60% 40% New Construction 20% 0% 19851990199520002006 Source: DOE - Building Energy Data Book, October 2009

12. Thank You

13. Major Change is in the Air

14. Modeling Existing Buildings

16. Energy Pro Design and DOE -2 Output Report page 3 &4 The VRF Central Equipment Module(s) are selected from the Energy Pro data base and adjusted to meet loads from the zones. The zones are also selected from the data base to meet the zone heating & cooling loads

17. Energy Pro Design and DOE -2 Output Report page 5 & DOE-2 energy reports ECON-1 Energy use and cost summary

18. Energy Pro Design and DOE -2 Output Report pages 6 thru 8 HVAC System Heating & Cooling load summary

19. Energy Pro Design and DOE -2 Output Report page DOE-2 Performance Reports DOE-2 VRF System Performance The VRF Central Equipment Module(s) are selected from the Energy Pro data base and adjusted to meet loads from the zones. The auxiliary heat shown here and on Econ-1 is due to setback in January and setback should be reduced in the cold winter months

22. The End