1. Responsive Homes + Energy Behaviour Change MIT House_n Research Consortium Review MIT, Cambridge, MA June 3, 2008 Your Information Source for Home & Building Automation Ron Zimmer CABA President & CEO

2. CABA Board of Directors 1.Martin Cullum - Bell Canada - Chairman 2.Leo DelZotto - Tridel Corporation - Vice-Chair 3.Roy Kolasa - Honeywell International - Vice-Chair 4.Lari Anderson, BAE Systems 5.Brian Burch - Hewlett-Packard Company 6.Jonathan Cluts - Microsoft Corporation 7.Robert Frazier – IBM 8.Shalabh Goel - Cisco Systems, Inc. 9.Brad Haeberle - Siemens Building Technologies, Inc. 10.Ron Herbst – CB Richard Ellis

3. 11. Daniel Hogan - Panasonic Corporation of North America 12. Robert Huggard - Direct Energy 13. Jack Merrow, Leviton Manufacturing Co., Inc. 14. Dr. Satyen Mukherjee - Philips 15. Steve Nguyen - Echelon Corporation 16. Carol Priefert - Whirlpool Corporation 17. Gene Shedivy - Trane 18. Andrew Stroede - Panduit Corp. 19. Ron Wilson - Vantage/Legrand 20. Ron Zimmer - Continental Automated Buildings Association (CABA) CABA Board of Directors

4. CABA Vision “The knowledge-based forum for industry leaders who advance the use of technology and integrated systems in the global home and building industry.”

5. Internet Home Alliance Research Council (IHA-RC) Advisory Board Members: Affiliate Members:

6. Going Green Research Project Objectives Define what ‘green’ means to homeowners Identify the outcomes that homeowners want to achieve as they manage the energy resources within their home Identify the constraints that homeowners face when trying to make their homes more energy efficient Identify the outcomes that builders have in understanding and communicating ‘green’ options to home buyers

7. High I spend my money and time to take action to preserve the environment, e.g., own/lease a hybrid car, do business with companies that promote green products, donate time and/or money to local and global environmental causes, etc. Some I consider preserving the environment an important issue but rarely use that has a factor in my purchase decisions, e.g., recycle newspapers and plastic bottles when it’s convenient and/or conserve resources such as water, energy and gasoline but will not spend the extra money on products such as a hybrid car, energy efficient appliances to replace current appliances that run fine or donate money to environmental causes. Little I consider preserving the environment an important issue but do not recycle paper and plastic, use alternative methods of transportation or engage in other environmental programs that are made available Doubtful I consider preserving the environment more of a popular trend and am doubtful that man can have a significant impact on the environment, such as cause or reverse global warming. I am skeptical of most of the information given about the subject AmbivalentI have no thoughts or opinions about environmental issues Going Green Summary of Characteristics

8. Consumers are willing to pay 5-10% premium for green products provided they meet criteria such as: 1) the benefits exceed the product drawbacks 2) the product has low maintenance and is reliable in its operation 3) noticeable improvement in energy cost 4) acceptable operating cost 5) a payback period that aligns with the useful life of the product 6) minimal upfront costs 7) financial incentives Going Green Summary of Characteristics

9. When managing energy in the home, there is substantial opportunity for value creation Consumers see ‘Green’ along many Dimensions in addition to energy

10. Background CABA's Internet Home Alliance Research Council (IHA-RC, formerly operating as the Internet Home Alliance), conducted research studies in 2003 and 2005 to assess the state of the Connected Home Market among U.S. consumers. This ongoing research program is designed to investigate consumer attitudes and behaviors with regard to technology and the connected home within three distinct lifestyle domains, or ‘ecosystems’: Entertainment, Family and Career. Each ecosystem is associated with a set of activities and distinct consumer roles: –The Entertainment ecosystem includes areas such as music, video and gaming; consumers operate within this sphere as participants in leisure activity. –The Family ecosystem includes home systems, family communications, scheduling, health and fitness and community; consumers primarily act within their roles as family members and friends. –The Career ecosystem consists of productivity, communications, scheduling, work skills and work / life balance; consumers act in their capacity as workers, and in some cases, as owners of businesses. IHA-RC members commissioned a new pulse of this study for 2008 to update their understanding of the market in the U.S., and to establish a baseline for Canada. Objectives The 2008 State of the Connected Home Market study is designed to: –Assess North American consumer interest in, and adoption of, consumer technology products and services within the spheres of entertainment, family and career. –Provide strategic direction for future research projects and pilots. –Facilitate member networking and recruitment. –Enhance the organization’s reputation as a thought leader in the connected home market. State of the Connected Home Market Study

11. The 2008 State of the Connected Home Market study focuses on changes that occurred since the market was last examined, in 2005. North American economic and market conditions during the intervening period were expected to affect interest in connected home solutions. These factors include growth in: –Broadband adoption. –Wi-Fi adoption at home, and availability in public places. –Video gaming—including growing numbers of female and adult players. –Mobile entertainment devices and ‘converged’ devices – such as portable multimedia players and phones that play both music and video. –Online social networking. –On-demand content availability, both on the Internet and through traditional cable and satellite TV providers. –High-definition content availability. Another factor potentially driving interest in connected home technology is increased consumer concern about managing energy costs in light of steadily rising fuel prices. Background and Objectives

12. Only a minority continue to find the connected home concept ‘very appealing.’ However, U.S. consumers are more neutral (less negative) about the idea now than they were in the past. When asked about the appeal of the connected home concept (where independent systems are linked and centrally controlled), U.S. consumers are a bit more positive than their Canadian counterparts. Nearly one-fourth of U.S. online households consider the idea ‘definitely appealing,’ while only 14% of Canadians are so inclined. The percentage of U.S. online households that consider the connected home concept to be ‘definitely appealing’ is essentially unchanged since 2005. However, fewer consider it unappealing now than did three years ago. This shift has occurred entirely among mass market consumers; primary market (lead adopter) consumers are unchanged in their enthusiasm for the concept. Entertainment applications continue to garner the most interest, though mass market consumers are less interested now than in 2005. Interest in work productivity is up slightly. While interest in media entertainment for the home continues to outpace other areas, the percentage in the U.S. who are ‘very interested’ has slipped from about two-fifths in 2005 to about one-third in 2008. This is due to a drop in interest among mass market consumers. Primary market consumers remain as interested now as in the past. Less than one-sixth of online households are interested in the general idea of using technology to automate/control home systems or streamline household tasks. Nearly all with such an interest are primary market consumers. In the U.S., about one-sixth are interested in improving remote work productivity, compared to about one-tenth in Canada. Interest in picked up slightly in the U.S. since 2005, driven by a small increase in the number of computer workers among online households. Canada 14% U.S. 23% Executive Summary Key Findings

13. New CABA Brand

14. Intelligent Buildings

15. Intelligent Buildings Roadmap Steering Committee 1.Cisco Systems, Inc. 2.Delta Controls Inc. 3.Direct Energy 4.HID Corporation 5.Honeywell International 6.InfoComm International® 7.Johnson Controls Ltd. 8.Lawrence Berkeley National Laboratory 9.Lutron Electronics Co. Inc. 10.Panduit Corp. 11.Siemens Building Technologies, Inc. 12.The Watt Stopper/Legrand 13.TAC 14.Trane 15.Tridium

16. Intelligent Buildings Roadmap May, 2007 http://www.caba.org/ibrm FREE Executive Summary

17. AND THE SURVEY SAYS?

18. Buildings 39% Industr y 33% Transportation 28% Buildings use 71% of electricity 21% 18% Why Buildings: Huge Opportunities Residential Heating 32% Other 4% Water Heat 13% Computers 1% Coolin g 10% Refrigeration 9% Light s 12% Electronics 5% Wash 5% Cooking 5% Source: 2004 Buildings Energy Databook with SEDS distributed to all end-uses Commercial Other 10% Lights 28% Heating 16% Cooling 13% Water Heat 7% Ventilation 7% Cooking 2% Computers 3% Office Equip 7% Refrigeration 4%

19. CABA RESEARCH CABA’s Intelligent & Integrated Buildings Council Towards Carbon Neutral Industrial Facilities Convergence of Green and Intelligent Buildings

20. Towards Carbon Neutral Industrial Facilities Participating organizations: Alerton AMX Corporation BAE Systems Distech Controls Inc. Eaton Corporation Gridlogix, Inc. RealFoundations RFArrays Sloan Monitored Systems Texas Instruments Trane Zurn Engineered Water Solutions * Research completed by Carnegie Mellon University

22. Convergence of Green and Intelligent Buildings Research Confirmed organizations: BAE Systems Cisco Systems CommScope Delta Controls Encelium Global Environment Fund Herman Miller InfoComm International Ortronics and The Watt Stopper/Legrand * Research to be completed by Frost & Sullivan Johnson Controls Natural Resources Canada Panduit Corp. Robinson Solutions Sloan Monitored Systems Trane Tridel Corporation