Profiting from Delivered ICS

1. Profiting fromDelivered ICS Presented by Dick Lemke

2. Facilitator Background • Dick Lemke • VariTrac Product Support Manager Global Unitary Systems Systems Products Group located at GCC in St. Paul

3. Business Objective • Understand the concept and the strategy of Delivered ICS • Recognize how Delivered ICS fits in your market • Put together a business plan for implementing the Delivered ICS strategy in your office

4. Agenda • Review the concept of “Delivered ICS” • Discuss specifics of several Delivered ICS systems • Roundtable workshop to share ideas and develop your business plan

5. Result • Add to the order line without straining your valuable installation and service resources • Incremental profitable business for Trane and our contractor customers as partners in the Delivered ICS business

6. Applied vs. Delivered • Applied • products best suited to be designed, specified, sold, installed, and started by the Trane sales and service organization - We retain control of the process vs. • Delivered • products better suited to be sold to mechanical contractors for them to apply, install, start, and service - we transfer control of the process

7. How Big Is the Delivered Market ? • US Census:there are over 650,000 existing commercial properties in the US • 90% of commercial buildings are less than50,000 square feet • Even in the present economy ARI unitary shipments increased 7% over previous year

8. System Cost Line Single zone-packaged rooftops with programmable thermostats Chilled water with built-up AHUs with pressure independent DDC VAV zone control and BAS Delivered Applied

9. System Cost Line Single zone-packaged rooftops with programmable thermostats Chilled water with built-up AHUs with pressure independent DDC VAV zone control and BAS Large tonnage VAV rooftop with pressure independent DDC VAV zone control and BAS Delivered Applied

10. Delivered ICS Definition • A pre-engineered, pre-configured system that combines • HVAC equipment, unit controls and system controls that are simple to install, commission and operate • provides reliable comfort for reasonable operating costs

11. Delivered Comfort Systems • Constant Volume System • Tracker with Voyager, Precedent, & Odyssey • Changeover Bypass VAV • VariTrac with Voyager, Precedent, & Odyssey • Delivered VAV • Voyager Commercial, VariTrane, CCP & Tracker • Water Source Heat Pump System • Tracker WSHP with Tracer Loop Controllerand Axiom heat pumps

12. What Does It All Mean? • The market opportunity is real • Trane has invested in delivered systems that meet the market need • Capitalizing on the sale of delivered systems is a key strategy for Trane • As business leaders we need a plan to make it happen

13. What’s In It For Me? • The Trane Sales Office • increase the installed base of Trane products • customers who find value with Delivered ICS now will also find value with Applied ICS in the future • leveraging our partnership with our contractors customers helps us create incremental business opportunities

14. The contractor more features and functions to sell expanded bill of materials differentiation from competitors complete system, but in budget envelope better closure rates higher profit What’s In It For Me? • we don’t have to compete with everyone else in the $$ per Ton game

15. What’s In It For Me? • The end user • obtains a system that works • receives reliable comfort at an affordable cost (in his budget envelope) • buys into a trusted relationship

16. Delivered Comfort Systems • Constant Volume System • Tracker with Voyager, Precedent, & Odyssey • Changeover Bypass VAV • VariTrac with Voyager, Precedent, & Odyssey • Delivered VAV • Voyager Commercial, VariTrane, CCP & Tracker • Water Source Heat Pump System • Tracker WSHP with Tracer Loop Controllerand Axiom heat pumps

17. VariTrac • VariTrac Changeover Bypass VAV • constant volume rooftop unit • pressure dependent VAV device • simple system controller

18. VariTrac

19. System Cost Line Single zone-packaged rooftops with programmable thermostats Chilled water with built-up AHUs with pressure independent DDC VAV zone control & BAS Small tonnage CV rooftop with Changeover-Bypass-VAV & simple building control Large tonnage VAV rooftop with pressure independent DDC VAV zone control & BAS ~$5 Per Sq. Ft ~$16 Per Sq. Ft ~$11 Per Sq. Ft ~$6.50 Per Sq. Ft Delivered Applied

20. Delivered VAV • Trane Voyager Commercial 27½ to 50 ton VAV rooftop • Up to 32 VariTrane VAV boxes • New VariTrac CCP with Operator Display • Won’t work with any other equipment

21. Delivered VAV

22. Delivered VAV • Delivered VAV is true pressure independent VAV • Delivered VAVis not Changeover Bypass Zoning • no bypass damper • system heat is always CV (i.e.morning warm-up) • unit runs on continuous DA control - not driven by calls from the zones

23. DA Temp Setpoint Reset Fan Pressure Optimization CO2 Demand Ventilation Reset NSB Morning Warm-up Daytime Warm-up Delivered VAV Delivered VAV supports

24. System Cost Line Single zone-packaged rooftops with programmable thermostats Chilled water with built-up AHUs with pressure independent DDC VAV zone control & BAS Small tonnage CV rooftop with Changeover-Bypass-VAV & simple building control Large tonnage VAV rooftop with pressure independent DDC VAV zone control & BAS Delivered VAV ~$5 Per Sq. Ft ~$6.50 Per Sq. Ft ~$7.50 Per Sq. Ft ~$11 Per Sq. Ft ~$16 Per Sq. Ft Delivered Applied

25. Tracker • Two models • 12 SZ Units / 5 CCP / 4 I/O • 24 SZ Units / 10 CCP / 4 I/O • Touch screen user interface • New Windows PC software • Factory modem is standard

26. Tracker • Tracker is the master scheduler and controller for the system and provides • status and setpoint control for each individual zone on VariTrac and Delivered VAV • control for other HVAC systems and loads in the building • advanced clock features • Daylight Savings Time • holiday schedules • no batteries

27. New Tracker V11-WSHP • Centralized control for multiple WSHP’s • Works in tandem with the Tracer loop controller (TLC) • Coordinates max of 100 WSHP’s

28. Tracker V11-WSHP Features • Centralized diagnostic capabilities • Loop optimization • Automatic system configuration • Heat recovery routines

29. System Cost Line Single zone-packaged rooftops with programmable thermostats Chilled water with built-up AHUs with pressure independent DDC VAV zone control & BAS Small tonnage CV rooftop with Changeover-Bypass-VAV & simple building control Large tonnage VAV rooftop with pressure independent DDC VAV zone control & BAS New Tracker v11 with WSHPs Delivered VAV ~$5 Per Sq. Ft ~$6.50 Per Sq. Ft ~$7.50 Per Sq. Ft ~$?.?? Per Sq. Ft ~$11 Per Sq. Ft ~$16 Per Sq. Ft Delivered Applied

30. Delivered ICS • We have the product • We can see the market opportunity • How do we capitalize on the opportunity? • who are our potential customers? • what tools do we need to get the job done? • what obstacles do we need to overcome? • what is our action plan?

31. Break-Out Session • Work with team • Use worksheet • Prepare to share thoughts with group • Develop action plan • Develop a “needs” list - for you/for us

32. Business Planning • Market evaluation - light commercial equipment and controls • Office capabilities / structure • present testimonials from distribution to help tap more of your light commercial market • Resources/training/tools needed • add to the order line w/o straining valuable installation & service resources • Action plan to make it happen

33. Discussion

34. Conclusion • The Delivered ICSopportunity is real • We have the products to fill the need • Together • we know what needs to be done • We know how to do it • lets all profit from delivered ICS • THANK YOU!

35. Workshop Survey