Comprehensive Comfort Solutions

1. Comprehensive Comfort Solutions Trane’s Global ESCO Strategy Don Anderson Global Process Owner

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

3. Our Vision... The Premier “Comfort Systems andSolutions Provider” For the World.

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

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

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

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

8. Trane Solutions Outsourcing PACTSM Projects Turn Key Projects Design & Manufacture Custom Equipment Contract Operations and Technical Services Controls and Equipment Supplier

9. Customer BenefitsTurnkey • Equipment/system upgrades • Financial options • Regulation adherence • Single source responsibility • Outsource project management Outsourcing PACTSM Projects Turn Key Projects Design & Manufacture Custom Equipment Contract Operations and Technical Services Controls and Equipment Supplier

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

11. (Energy Conservation Measures) Total System View of your Building Your Solution! 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

12. Customer Benefits:PACTSM Projects Turnkey benefits plus: • Financial options • Energy and operational savings • Defined cash flow • Flexibility • Guaranteed results Outsourcing PACTSM Projects Turn Key Projects Design & Manufacture Custom Equipment Contract Operations and Technical Services Controls and Equipment Supplier

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

14. Customer Benefits:Outsourcing • 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 Outsourcing PACTSM Projects Turn Key Projects Design & Manufacture Custom Equipment Contract Operations and Technical Services Controls and Equipment Supplier

15. Central Plant Solutions • Central Plant Design • Central Plant Construction • Equipment Installation • Ownership Of Central Plant Equipment • Central Plant Operations, Maintenance & Repair

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

17. Turbine Inlet Cooling By The Trane Company Superior Performance Through Innovative Solutions

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

19. The Challenge: Increasing Generator Performance • Aging Generating Equipment • Deteriorating System Performance • Squeezed Margins • Rising Costs • Labor Costs • Escalating Fuel Rates • Tightening Codes, Standards and Regulations

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

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

22. CCS Project Fulfillment Process

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