Responsive Homes + Energy Behaviour Change MIT House_n Research Consortium Review MIT, Cambridge, MA June 3, 2008

1. Your Information Source for Home & Building Automation Responsive Homes + Energy Behaviour ChangeMIT House_n Research Consortium ReviewMIT, Cambridge, MAJune 3, 2008 Ron ZimmerCABA President & CEO

2. CABA Board of Directors • Martin Cullum - Bell Canada - Chairman • Leo DelZotto - Tridel Corporation - Vice-Chair • Roy Kolasa - Honeywell International - Vice-Chair • Lari Anderson, BAE Systems • Brian Burch - Hewlett-Packard Company • Jonathan Cluts - Microsoft Corporation • Robert Frazier – IBM • ShalabhGoel - Cisco Systems, Inc. • Brad Haeberle - Siemens Building Technologies, Inc. • Ron Herbst – CB Richard Ellis

3. CABA Board of Directors 11.Daniel Hogan - Panasonic Corporation of North America 12. Robert Huggard - Direct Energy 13. Jack Merrow, Leviton Manufacturing Co., Inc. 14. Dr. SatyenMukherjee - 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)

4. CABA Vision “The knowledge-based forum forindustry 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 ResearchProject 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. Going GreenSummary of Characteristics

8. Going GreenSummary of Characteristics • 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

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

10. State of the Connected Home Market Study 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.

11. Background and Objectives • 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.

12. Canada 14% Executive Summary Key Findings • 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. • 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. U.S. 23% • 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.

13. New CABA Brand

14. Intelligent Buildings

15. Intelligent Buildings Roadmap Steering Committee • Cisco Systems, Inc. • Delta Controls Inc. • Direct Energy • HID Corporation • Honeywell International • InfoComm International® • Johnson Controls Ltd. • Lawrence Berkeley National Laboratory • Lutron Electronics Co. Inc. • Panduit Corp. • Siemens Building Technologies, Inc. • The Watt Stopper/Legrand • TAC • Trane • Tridium

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

17. AND THE SURVEY SAYS?

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

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 • Johnson Controls • Natural Resources Canada • Panduit Corp. • Robinson Solutions • Sloan Monitored Systems • Trane • Tridel Corporation * Research to be completed by Frost & Sullivan