Worldwide Applied Systems Group 1 Comprehensive Comfort Solutions Trane’s Global ESCO Strategy Don Anderson Global Process Owner

Worldwide Applied Systems Group 2 The Trane Company An American Standard Company World’s Largest Manufacturer Of Commercial Air Conditioning Products, Systems and HVAC Services Reputation for Quality and Industry Leadership Single-Source for Design, Service, Equipment, Installation, Financing, Operations and Maintenance of HVAC Comfort Solutions

Worldwide Applied Systems Group 3 Our Vision... The Premier “Comfort Systems and Solutions Provider” For the World.

Worldwide Applied Systems Group 4 Middle East/Africa/India (MAIR) Asia/Pacific (APZ) Latin America (LAR) Europe (EUR) USA/Canada (WASG / UPG) 210 Customer Solutions Centers 2000 Selling Associates 3800 Service Technicians

Worldwide Applied Systems Group 5 Market Changes The world is changing so fast that there are days when the person who says it can’t be done is interrupted by the person who is doing it.” - Anonymous

Worldwide Applied Systems Group 6 What is a Comprehensive Solution? Prime contract directly with owner to provide:  Broad Range of Facility Solutions  Often Focused on Energy Conservation  Typically Sold as a Financial Solution Many different types of contracts possible:  Turnkey/Design Build/GMP  Guaranteed Projects  Central Plant Agreements

Worldwide Applied Systems Group 7 COMMERCIALINSTITUTIONALINDUSTRIAL FACILITIES/BUILDINGS CENTRAL UTILITIES Offices, Corporate Headquarters, Manufacturing, Distribution Centers/Warehouses, Data Centers Steam, Hot Water, Chilled Water, Thermal Energy Storage, Compressed Air, Co-generation Combustion Inlet Cooling Universities/Colleges Healthcare Facilities Public and Private Hospitality/Recreational Manufacturing Distribution Design-Build- Own-Operate Design-Build-Finance Bringing Solutions to the Buildings Marketplace

Worldwide Applied Systems Group 8 Controls and Equipment Supplier Contract Operations and Technical Services Turn Key Projects PACT SM Projects Outsourcing Design & Manufacture Custom Equipment Trane Solutions

Worldwide Applied Systems Group 9  Equipment/system upgrades  Financial options  Regulation adherence  Single source responsibility  Outsource project management Controls and Equipment Supplier Contract Operations and Technical Services Turn Key Projects PACT SM Projects Outsourcing Design & Manufacture Custom Equipment Customer Benefits Turnkey

Worldwide Applied Systems Group 10 Trane Comprehensive Comfort Solution Trane Comprehensive Comfort Solution Trane Solutions Process Time and Cost Savings Traditional Design-Bid-Build Traditional Design-Bid-Build Pre-Construction Services Initial Design Basic Design Initial Design Detail Design Bid Construction Time & Dollars Saved GMP Established Final Cost Determined If project over budget-- Redesign and Re-bid Construction Detail Design

Worldwide Applied Systems Group 11 Some of the potential sub projects: Chiller Plant Optimization HVAC Energy Efficient Design Exhaust Fans and Pumping Systems Hot Water Heat Reclaim Systems Electrical Power Improvements Energy Efficient Lighting Building Automation and Controls. Gas Fired Boilers Building Envelope Service and Maintenance Optimization Code and Regulation Compliance (Energy Conservation Measures) Your Solution! Total System View of your Building

Worldwide Applied Systems Group 12 Turnkey benefits plus:  Financial options  Energy and operational savings  Defined cash flow  Flexibility  Guaranteed results Controls and Equipment Supplier Contract Operations and Technical Services Turn Key Projects PACT SM Projects Outsourcing Design & Manufacture Custom Equipment Customer Benefits: PACT SM Projects

Worldwide Applied Systems Group 13 Typical Scope of CCS Projects Mechanical Systems Retrofit/Optimization Electrical Systems Retrofit/Optimization Lighting Systems Retrofit/Optimization Building Envelope Improvements Energy Management Systems Operating Cost Optimization Code and Regulation Compliance Energy Purchase Options Trane Leverages Strategic Partnerships in “Non-Core” Competencies

Worldwide Applied Systems Group 14  Eliminates capital outlays  Reduce/eliminate operating costs; no operators required, no maintenance expense, no repair expense  Maintain regulatory compliance  Can include operation and maintenance of entire HVAC system Controls and Equipment Supplier Contract Operations and Technical Services Turn Key Projects PACT SM Projects Outsourcing Design & Manufacture Custom Equipment Customer Benefits: Outsourcing

Worldwide Applied Systems Group 15 Central Plant Solutions Central Plant Design Central Plant Construction Equipment Installation Ownership Of Central Plant Equipment Central Plant Operations, Maintenance & Repair

Worldwide Applied Systems Group 16 Fulfillment Alternatives Contract For Purchase Of Central Plant Services Trane Can Assume: –Utility Negotiations –Design/Build Project Delivery System –Off Balance Sheet Financing –Operations, Maintenance and Repairs –Integrated Approach

Worldwide Applied Systems Group 17 Turbine Inlet Cooling By The Trane Company Superior Performance Through Innovative Solutions

Worldwide Applied Systems Group 18 Turbine Inlet Cooling By The The Trane Company Installation Of A Turbine Inlet Air Pre-cooling System Increases System Performance 15 to 25% …by delivering consistent Inlet Air temperatures and by optimizing generator performance Turbine Inlet Cooling Can Contribute to Your Success By:  Reducing Operating Costs Per kWh  Increasing Generator Capacity  Improving System Competitiveness  Lowering System Emissions Per kWh  Delivering Consistent Service And Support

Worldwide Applied Systems Group 19 The Challenge: Increasing Generator Performance Aging Generating Equipment Deteriorating System Performance Squeezed Margins Rising Costs ä Labor Costs ä Escalating Fuel Rates Tightening Codes, Standards and Regulations

Worldwide Applied Systems Group 20 Critical Factors For Success Optimize Generator Performance Reduced Setup Times Effective Management Of Internal Resources Reliability-Centered Maintenance Programs Outsourcing Of Non Value-Added Activities Performance Based Financing Guaranteed Results

Worldwide Applied Systems Group 21 Letter Of Commitment Preliminary Study Introduction to CCS (PACT, Turnkey, Outsourcing) Detailed Study Final Proposal and Authorization Project Fulfillment CCS Project Acquisition Process SM

CCS Project Fulfillment Process

Worldwide Applied Systems Group 23 Our Commitment Act like a partner, not a vendor A partner that solves your problems rather than pushes our products A way to simplify managing your infrastructure Help reduce your time to market Someone who will not disappear once they install Solutions that will not become obsolete when your company grows A company that will grow with you in the global marketplace