1. A Business Case for Sustainable Products Smog-Eating Roof Tile Development John Renowden Vice President Product Development, August 3, 2011

2. Contents of Today’s Presentation…  Tile Roofing in the US Market  Environmental Impacts, Life Cycle and Sustainability  Innovation 2 Florida, USA

3. What is the significance of a roof? Sustainability from a product lifecycle perspective Long Lifecycle - Through using products with durable material, sustaining the life of the structure Save Energy - Through innovation and conservation Reduce Waste - Through recycling and waste diversion Reduce Pollutants, Toxins, Carbon Emissions - By encouraging or requiring responsible manufacturing practices - Use of products with little environmental impact Utilize Local Resources - Minimize need for long distance transportation of products 3

4. What is the significance of a roof? Thinking about roofs is more than just about leaks 4 The U.S. is unusual in comparison to other developed countries in the use of “Oil based” roofing materials

5. The US Pitched Roof Market… Asphalt shingle dominates the market with 69% market share 5 Source: Principia Report Residential Roofing 2010

6. Contents of Today’s Presentation…  Tile Roofing in the US Market  Environmental Impacts, Life Cycle and Sustainability  Innovation 6 Florida, USA

7. This is a 2000 year old section of the roof of the Roman Bath House in Bath England where the hollow bricks were used to retain the natural heat from the hot spring Durability of roofing materials The Romans knew a few things about sustainability and energy efficiency

8. Durability of roofing materials Reroof jobs account for 69% of national demand 8 Source: The Freedonia Group, Inc.

9. Few States have provisions for recycling asphalt shingle… Unfortunately, most of the waste ends up in landfills Source: Shinglerecycling.org Allow manufacturer’s RAS only Allow RAS (including tear-offs)

10. A huge waste...asphalt shingle disposal 11 million tons of asphalt shingles are generated in the US per year Reroofing jobs account for 10 million tons of asphalt shingle, with another 1 million from manufacturing scrap. Compared to 140 million tons of concrete that are recycled annually in the United States alone. 10 Source: Shinglerecycling.org, CMRA (Construction Materials Recycling Association) “The average home contains about 3-4 tons of roofing shingles which is over 6 barrels of oil…”

11. The life of roofing material…how the air is affected The BEES® Lifecycle Assessment quantifies the environmental smog impact from different roofing materials 11 Source: BEES® 2011 (Building for Environmental and Economic Sustainability) Lifecycle Analysis for Building Products, Smog Analysis The primary pollutant from the Asphalt Shingle LCA is Nitrogen Oxide.

12. Contents of Today’s Presentation…  Tile Roofing in the US Market  Environmental Impacts, Life Cycle and Sustainability  Innovation – Going beyond sustainability 12 Florida, USA

13. Can a roof improve air quality……….. The highest concentrations of ozone in the US are found in California, Texas, Nevada, North Carolina and South Carolina The American Lung Association “State of the Air 2011 report” shows the 10 regions with the highest concentration of ozone: 13 Phoenix, AZ Source: American Lung Association, http://www.lungusa.org/

14. We need to care for the people at greatest risk, such as:  Children who grow up in areas of high smog pollution may never develop their full lung capacity as adults  People who work or exercise outdoors  People with lung disease, especially chronic lung diseases such as asthma and COPD  Senior citizens Why do we care… Smog irritates and inflames the lungs like a “sunburn” 14 Source: http://www.lungusa.org/healthy-air/outdoor/resources/ozone.html There are two possible parallel paths for the improvement in air quality: the continuing reduction of pollutants at source and air purification

15. BoralPure™ Smog Eating Concrete Tile Collection The Formation of Smog… During exposure to sunlight, smog is formed when Nitrogen Oxides (NOx) in the atmosphere combine with Volatile Organic Compounds (VOCs).  NO x : Carbon-containing compounds released by the evaporation of petroleum products, or carcinogenic compounds like benzene and butadiene.  VOCs: During exposure to sunlight, smog is formed when Nitrogen Oxides (NOx) in the atmosphere combine with Volatile Organic Compounds (VOCs). 15 “Air pollutants generated from motor vehicle traffic contribute to the formation of ozone that is known to be harmful to human health…”

16. BoralPure™ Smog Eating Concrete Tile Collection Learning from Italy - Milan

17. 17 BoralPure™ Smog Eating Concrete Tile Collection Learning from Italy - Rome

18. BoralPure™ Smog Eating Concrete Tile Collection Technology not magic… 18 `

19. BoralPure™ Smog Eating Concrete Tile Collection How Does it Work? Smog Eating Tile oxidizes harmful, disease-causing NOx, helping clean the air so that it is safer to breathe.  This revolutionary roof tile includes a coating with the key ingredient Titanium Dioxide, a photocatalyst. The photocatalyst is activated by the UV content in daylight. The active surface interacts with harmful Nitrogen Oxides in the air and helps convert them into Calcium Nitrates.  Naturally occurring and safe for humans, Titanium Dioxide (TiO2) is commonly found in toothpaste, cosmetics, household paint, and many other items we interact with daily. 19 Source: PICADA: Photocatalytic Innovative Coverings Applications for De-pollution Assessment, Europe, 2004  Titanium Dioxide’s de-polluting and de- soiling capabilities are proven. The notable European Union PICADA Project study demonstrates the capabilities of TiO2 as a key ingredient in coatings.

20. BoralPure™ Smog Eating Concrete Tile Collection A Proven De-Pollutant. How do we know it works?  Over one year, a 2,000 square foot BoralPure™ Smog Eating Tile roof can oxidize the same amount of Nitrogen Oxide as a car produces from being driven up to 10,800 miles. 20 U. S. Environmental Protection Agency Vehicle Program Tier 2 Standard; Daylight hours based on Los Angeles, California; Laboratory air-purification performance testing per ISO 22197-1: 2007; results may vary depending on geographic location, weather and other factors “The real impact is that it takes that car off the road.” KB Home Southern California President Steve Ruffner

21. 21 Source: PICADA: Photocatalytic Innovative Coverings Applications for De-pollution Assessment, Europe, 2004 BoralPure™ Smog Eating Concrete Tile Collection Measurable Results…Reduce Your “Smog” Footprint INTERNATIONAL STANDARD ISO 22197-1 Fine ceramics (advanced ceramics, advanced technical ceramics) — Test method for air-purification performance of semiconducting photocatalytic materials — Part 1: Removal of nitric oxide

22.  In addition to providing nutrition for plants, calcium nitrate has a restorative effect on soil. The calcium nitrate residue, which reaches the ground as rainwater runoff over the course of time is in small concentrations which are less than the concentrations found in normal lawn and plant fertilizer used over that same time period. Source: The calcium nitrate concentrations may vary depending on weather conditions including the frequency and intensity of rainfall, geographic location and other factors, including but not limited to the concentration of nitrogen oxide in the air. http://soil.gsfc.nasa.gov/soilfert/npk.htm 22 BoralPure™ Smog Eating Concrete Tile Collection Water Run Off that Helps Your Garden Grow…

23.  Greater awareness  More extensive use of air improvement building materials  Offsets in Masterplan Communities  Federal and local incentives 23 BoralPure™ Smog Eating Concrete Tile Collection What of the future? Boral Roofing Energy Efficient Roof System Martha Stuart - Zero Net Energy LEED ® Platinum KB Home IBS Show Orlando 2010