1. Add Page Title Here

2. Allied Air Enterprises
Joe Nassab
VP, GM

3. Agenda Background Early impressions Allied Air evolution
Market outlook
Moving forward

4. Background Personal: Married 17 years to Colleen
Three children: Sam, Caroline, Kate
Work experiences – 21 years with General Electric:
‘89 – 93 … Aircraft Engines (finance)
’93 – 95 … Corporate Audit
’95 – 00 … Appliances (program & product mgmt)
’00 – 05 … Healthcare (sales, service, general mgmt)
’05 – 10 … Security (CMO, GM product mgmt)

5. Core Beliefs People want to excel
Great vision without great people is irrelevant
Time is scarce … prioritize well
Fundamentals win it: disciplined people, thought & action
Change is constant … adaptability a must
Preparation and attention to detail
Outcomes are ours to decide and results matter
We win together … with everyone “All-In”

6. Early Impressions Working well Needs improvement Committed employees
Population of loyal customers
Operational focus & discipline
Product portfolio
Dealer visits … Orangeburg
TechChoice
Needs improvement
Market share … across the board
Customer intimacy  trust
Front end processes & discipline
“Mutual” market development
Cooling product penetration
Transition execution

7. Allied Air Evolution 1999 - 2005 2006 - 2009 2010+
Coming together
Strengthen operation
Top line
Integration Armstrong & Excel … Allied Air formed
Operations assimilation
Prepare for new gvt regulation
Sale of company owned distributors
Capital investment programs:
R&D, facilities
Mfg footprint reduction
Launch of 13 seer & 410A
Op excellence focus
“Front end” investments
Mutual market growth plans
Build brand strength
Expand geographic footprint
Market roller coaster
(% change yr over yr)
~ 5%
~ 10 +%
~ (12%)

8. Commitment Dynamic HVAC market requires focus & strength
Consistent record of investing
($ Millions) 49 46
Financially sound
Committed to 2 step
Reinvest in our company
Lead regulatory change
Focused on HVAC 44 42
Key
Points
Strong technology team
Robust NPI process
Best practice transfer
Design for reliability (DFR)
Established centers of excellence
300 residential focused engineers

9. The Economy Uncertain times …
Inventory of homes high ... and starts remain depressed
Confidence up from 2008 … but relatively weak
Favorable prices boost perception & buying conditions
Access to credit tight … 25% of consumers w/ score < 599
Unemployment still 9+% … expect slow improvement
Economy is growing slowly (positive GDP)
Federal government has no appetite for additional spending
Requires stronger collaboration & planning than ever before

10. HVAC Industry Unprecedented change Dynamics 1992 – 10 SEER
2009 – transition to R410A
2013 – Building standards
2015 – Regional standards
201? – Refrigerant change
20?? – More green & efficiency
Dynamics
Large aged installed base:
- 18 million units yrs
- 50% higher than 10 yrs ago
Big mix shift:
19%
Efficiency
38%
High
81%
62%
Std
2006
2009
August YTD shipments:
- Residential + 7%
- Gas + 16%
- Split AC + 1%
- HP + 6%
Selling skills – drive mix
Transition execution
Partner selection

11. My Framework
We invest in product development, manufacturing, delivery &
support services for distributors … need a loyal & driven partner
network to succeed.
Critical elements
Understand what is important to each other
A “true spirit” of teamwork
A total team effort
Trust & accountability
A common goal

12. Aggressive territory mgmt
Making Growth Real!
Sources of
Growth
Existing customers
Competition
New markets
Expand portfolio
Increase value add
Aggressive territory mgmt
Adjacencies
Geographies
Service offerings
Convert
Acquire
Provide feedback to strengthen collaboration, responsiveness & sales
Build growth plans together … review in Nov & Dec
Invest in front-end capabilities … new training & programs
Implement operating cadence … quarterly share of market reviews
Increase share of wallet