Ingersoll Rand: High Performance Buildings & Realizing Energy Savings Larry G. Wash President – Global Services Climate Solutions – Ingersoll Rand September 2011 My Background • Responsible for the profit and loss of the service, controls, contracting and parts business of Climate Solutions sector – Aftermarket service and parts – Building control systems – Turnkey and controls contracting – Performance-based energy services for commercial buildings and transportation • Executive responsibility for strategic direction, operating performance and marketplace differentiation – architect of Trane High Performance Buildings • Extensive service industry expertise – Previously served as vice president of service and contracting for Trane within North and South America and in various services leadership roles with Xerox and Eastman Kodak • Worldwide speaker and author on growing a profitable global services business; making the business case for energy and operational efficiencies 2 About Ingersoll Rand & Climate Solutions Our Agenda • Overview of Ingersoll Rand • Overview of Climate Solutions sector of Ingersoll Rand – Summary of key initiatives and strategies – Deep dive on Trane High Performance Buildings • Answering Your Questions 3 About Ingersoll Rand & Climate Solutions Ingersoll Rand: Who We Are • A $14 billion diversified industrial company • More than 58,000 employees worldwide • About 83 manufacturing facilities worldwide • Operations in every major geographic region • Strategic brands are #1 or #2 in their markets 4 About Ingersoll Rand & Climate Solutions Ingersoll Rand: Market-leading Brands Comfort and Climate Control Brands Worldwide transport refrigeration Worldwide Commercial and Residential HVAC Equipment Industrial Brands Manufacturer of golf cars and utility vehicles Air compressors, air and power tools 5 About Ingersoll Rand & Climate Solutions Our Brand Promise: We inspire progress by unleashing the potential of people and technologies. Our people, products, systems and services make everyday living healthier, safer, more energy efficient, productive and comfortable—enabling our customers to achieve real progress and create a positive impact in their world. Security Brand Lock and door hardware, security solutions Ingersoll Rand: Inspiring Progress • Diversified Businesses • Balanced Across the Cycle • Customer Focused • Outpacing Market Growth • Change Culture • Innovative, Visionary • Leveraged Enterprise 6 About Ingersoll Rand & Climate Solutions Ingersoll Rand in China: Who We Are • Entered China market in 1922 • Restarted business in China in 1987 through a joint venture with Shanghai Compressor (later changed to “SIRC”) • 1 investment entity, 36 branches, 3 trading companies and 7 major manufacturing facilities • One of global R&D centers located in Taicang, China • About 7,000 on staff • US400 Million in total investment Trane (Taicang) Wujiang Campus Nanjing Compressor Changzhou Tool Guilin Tools Trane (Zhongshan) Climate Solutions Industrial Technologies Security Technologies Cross Sectors – Integrated manufacturing campus Committed to China 7 About Ingersoll Rand & Climate Solutions Shanghai Compressor Airtec Shanghai Fuhsing Ingersoll Rand in China: Our Manufacturing • Taicang: -- Space: 35,500 m2 -- Headcount: 656 -- Revenue: USD227M • Zhongshan: -- Space: 6,300 m2 -- Headcount: 197 -- Revenue: USD45M • Bangkok: -- Space: 7,600 m2 -- Headcount: 301 -- Revenue: USD51M • Penang: -- Space: 6,600 m2 -- Headcount: 211 -- Revenue: USD23M • Wujiang: -- Space: 62,000* m2 -- Headcount: 641 -- Revenue: USD182M Five Manufacturing Facilities in China 8 About Ingersoll Rand & Climate Solutions Climate Solutions: Two Powerful Brands Broad and Global Portfolio of HVAC Systems and Services HVAC SYSTEMS SERVICES / CONTROLS TRANSPORT REFRIGERATION Our Vision: To make building owner and transport customers more profitable and efficient for life through innovative HVACR systems and services 9 About Ingersoll Rand & Climate Solutions Climate Solutions: Two Powerful Brands • 1 out of every 2 U.S. commercial buildings has Trane systems • Thermo King products are sold on every continent around the world • We do business through 400 locations around the world • • We have 25,000 Trane associates in 60 countries We have more than 865 dealers worldwide sell and service our products • • We have 24 innovation, engineering and manufacturing locations around the world We operate nine manufacturing facilities and three R&D Centers of Excellence Industry-leading, Global HVAC Systems and Service Brands 10 About Ingersoll Rand & Climate Solutions Climate Solutions: Manufacturing Footprint in Asia Pacific 4 x Trane plants (total 56,000 m2) • Taicang (35,500 m2) • Zhongshan (6,300 m2) • Bangkok (7,600 m2) • Penang (6,600 m2) Wujiang campus (62,000* m2) • Thermo King (Marine, Genset) • Hussmann (Retail) * includes operations for ITS (20,000 m2) 1 x Hussmann workshops •Tauranga (2,700 m2) Total Mfg footprint: 118,500m2 (incl 20,000m2 for ITS) Two Powerful Brands with Manufacturing Throughout Asia Pacific 11 About Ingersoll Rand & Climate Solutions Total Mfg HC: 1,123 (Trane) + 538 High Performance Buildings Achieving Energy Savings 12 About Ingersoll Rand & Climate Solutions Trane: What is a High Performance Building? Safety Comfort Efficiency “The best sustainable designs are not just environmentally responsible. They produce buildings where employees can thrive and productivity can soar. We call these high performance green buildings.” - U.S. Green Building Council High Performance Buildings: cost effective, safe, secure, sustainable 13 About Ingersoll Rand & Climate Solutions High Performance Buildings: Goal is to Enhance Operational Effectiveness High performance buildings enhance company effectiveness • • • • • Safer, healthier, comfortable environment Reliable operation – fast recovery, minimized unscheduled downtime Increasing business and employee performance Increasing value of the building / asset Enhancing luster of a company’s brand High Performance Buildings are essential to compete in today’s marketplace 14 About Ingersoll Rand & Climate Solutions High Performance Buildings A Whole Building, Whole Lifecycle Approach • • Buildings have occupied lives of 50-75 years • Performance standards are created, measured and validated: Operating costs are 60-85% of building lifecycle costs – 5-10% for design and construction costs – Energy and water consumption – System reliability – Environmental compliance – Occupant health, safety and comfort High Performance Buildings reduce costs so companies can reinvest in other priorities 15 About Ingersoll Rand & Climate Solutions Trane: We Create High Performance Buildings for Life Trane helps building owners connect the physical environment of their buildings to business mission and objectives, making their buildings assets instead of expenses Trane uses a unique knowledge and technology-enabled methodology to create, measure and validate High Performance Buildings – combining financial, operating and energy analysis with specialized service offers, building systems and available financing The outcomes are safe, comfortable and efficient buildings with reduced lifecycle costs so organizations can invest in other priorities and make buildings assets instead of expenses Your Mission … Realized 16 About Ingersoll Rand & Climate Solutions Trane High Performance Buildings: Our Approach Proven methodology for achieving performance 1. Understanding customer’s mission 2. Conducting a critical systems audit and 3. 4. 5. 6. 7. facility assessment Providing and implementing performance improvement recommendations Upgrading control systems with intelligent technology Providing periodic energy audits and identifying improvements Providing continuous systems monitoring, periodic audits and ongoing assessment Delivering measurement and evaluation Centered on a performance-based Trane High Performance Building Agreement 17 About Ingersoll Rand & Climate Solutions Trane High Performance Buildings Delivered Through Maintenance Technology and knowledge approach is integral • Embracing predictive building maintenance strategies • Establishing and maintaining sound operating metrics • Adopting performance-based service concepts A poorly designed building operated and maintained effectively outperforms a well-designed building with poor operating and maintenance practices 18 About Ingersoll Rand & Climate Solutions Trane High Performance Buildings: Delivered By Restoring Systems “Re-commissioning” has become a mainstream concept • Even new buildings fail to deliver on performance standards of designers • Perform less efficiently • Equipment wear and tear • Controls deviation A disciplined re-commissioning project typically yields 10-20% energy savings 19 About Ingersoll Rand & Climate Solutions Trane High Performance Buildings: Delivered Through Integrated Systems Better Energy and Operating Performance with Integrated Systems • Leading, high efficiency HVAC equipment • Tracer Building Controls • Trane applications expertise • Deliver higher overall energy efficiency and lower emissions with sustainable, documented performance Low-flow, low emissions systems enable High Performance Buildings 20 About Ingersoll Rand & Climate Solutions Trane High Performance Buildings: Delivered Through Integrated Systems Systems Leadership Enabled by Building Controls • Web enabled • Open standard protocol support • Modular / scalable platform • Wireless sensors and communications • HVAC system applications Controls systems provide data needed to make better business decisions 21 About Ingersoll Rand & Climate Solutions Trane High Performance Buildings: Delivered Through Innovation – Everyday Trane Intelligent Services Trane Intelligent Services provides customers off-site monitoring services through our Trane Intelligent Services Center (ISC). When coupled with proactive diagnostic and corrective analysis, the Building Performance Package helps reduce emergency and redundant services calls and improve technician opportunity. Sophisticated Controls Tracer ES™ software management tool and Tracer™ SC web-based system controller support open standard protocols and help reduce energy costs, installation costs and improve tenant comfort. Trane eView ™ Web-based energy management solution collects and processes energy consumption data to provide visibility, analysis and compliance tracking and reporting for customers. This software application offers insight into energy use, cost and environmental performance at the organizational, portfolio, campus and individual building levels. Variable Water Flow System This system is a newly designed, digital air-cooled water system that uses water as heat transfer media – meaning there’s no refrigeration in the occupied space. It delivers superior indoor comfort, excellent energy efficiency and flexible and easy installation. All done with the clean power of water. Geothermal System At the heart of this unique heating and cooling system is the RTWD chiller, which can control to precise heating or cooling system needs. This system also uses an innovative, patent-pending piping configuration and control strategy developed by Trane, which is key to enabling the system's premium energy performance. Advanced Building Systems Innovation 22 About Ingersoll Rand & Climate Solutions Trane High Performance Buildings What We Bring to the Table We create and maintain High Performance Buildings for life Help organizations achieve financial, sustainability and productivity goals Four performance pillars: • Energy, water and operations • Operational sustainability • Occupant health and welfare • System reliability and uptime Your Mission … Realized 23 About Ingersoll Rand & Climate Solutions Trane High Performance Buildings: Financial & Environmental Impact of HVAC in Tropics HVAC alone saves significant dollars and emissions 24 About Ingersoll Rand & Climate Solutions Trane High Performance Buildings: Proven Energy Savings in Asia High Performance Building concepts are real in Asia 25 About Ingersoll Rand & Climate Solutions 节能改造的流程 现场勘查 Site Survey 现场勘查 1. 2. 3. 4. 5. 6. 评估报告 Energy Report 资料及数据分析 Data Analysis 专案执行 Job fulfillment 节能量监测 M&V 资料及数据分析 温度,压力,运行顺序 自控,优化 管路系统 末端情况,低温综合症 电,气,水费,运行能耗 负荷特征 1. 2. 3. 4. 5. 6. 7. 数据汇总 模拟全年负荷特征 建立BASE CASE的运行 根据经验,建立不同的节能方案 将各方案中的设备运行参数输入程序运行 将运行结果输出比对,改善方案后重新输入再运行 找出最佳的方案 以专业水准提供有保证的、节能改造的全过程服务 26 About Ingersoll Rand & Climate Solutions “热门”节能技术 ESM #1: 空调系统整体解决方案 Total HVAC Energy Saving ESM #2: TSC-冷水机房整体节能 Total Saving of Chiller plant ESM #3: 大温差小流量系统应用 EarthWiseTM ESM #4: 一次泵变流量系统应用 VPF-Variable Primary Flow ESM #5: 主机/冷却塔优化控制 Chiller Tower Optimization ESM #6: 综合能耗评估 Comprehensive Energy Audit ESM #7: 更换高效主机(溴化锂主机更换)Chiller/ABS replacement ESM #8: 热泵热水技术 Heat Pump for Hot Water ESM #9: 末端变频改造 Airside VFD ESM #10: 冰蓄冷系统应用 Ice storage ESM #11: 热回收技术 (含锅炉排烟热回收) Heat Recovery ESM #12: 免费取冷技术 Free cooling & Economizer ESM #13: 水地源热泵技术 WSHP/GSHP ESM #14: 能源管理系统再调试 BMS Retuning/Re-commissioning 系统应用项目经验丰富 27 About Ingersoll Rand & Climate Solutions Trane High Performance Buildings: Making Customers’ Buildings Better for Life • • • • • • • • • Educational Government Healthcare Lodging & Entertainment Retail Offices Life Sciences Restaurants Industrial We deliver High Performance Buildings in all key vertical markets 28 About Ingersoll Rand & Climate Solutions Trane High Performance Building Case Study Skyscraper in New York City GOAL: • Save energy, improve reliability, enhance returns and reduce environmental impact METHODOLOGY: • Analyzed building systems, energy use, rate structure and procurement methods • Recommended mission-focused ECMs • Designed and installed building upgrades MEASURE/VALIDATE RESULTS • Estimated $765,000+ annual energy/operations savings • 25% internal rate of ROI on incremental spending • 6.1 million pounds of carbon emission reduction • No sacrifice of rentable space Created an improved facility for the company, employees and tenants 29 About Ingersoll Rand & Climate Solutions Trane High Performance Building Case Study Regional Medical Center GOAL • 373-bed hospital needed to improve building monitoring capabilities without increasing labor costs APPROACH • Custom solution tailored to hospital needs • Installed Trane Intelligent Services – Added 24/7 monitoring and troubleshooting capabilities – Tracer ES™ integrated with existing building automation system RESULTS • Added 24/7 systems monitoring capabilities without adding staff • Reduced workload for existing staff • Automated record keeping for regulatory requirements • Reliability improvements, cost reductions anticipated Intelligent services deliver improved reliability and performance 30 About Ingersoll Rand & Climate Solutions Trane High Performance Building Case Study Global Manufacturing Facility GOALS • Reduce operating costs, improve reliability add asset value, adjust to reduced production volume APPROACH • Comprehensive energy analysis • Energy conservation measures – Building automation system upgrade – Lighting system / fixtures retrofit – HVAC system improvements – boiler, air compressors, etc. – Operations, maintenance and schedule improvements RESULTS • $1.4 million annual energy and ops savings – 2 year payback • Reduced energy consumption by 11.5 million kilowatt hours • Replaced aging systems – some mid-1960s era • Improved environmental performance of building Better comfort, safety and efficiency while right-sizing for reduced volume 31 About Ingersoll Rand & Climate Solutions Bottom-Line Case for High Performance Buildings Energy efficiency makes more sense than ever Link the building to its primary business mission Environmental performance is becoming more critical Determine the funding strategy Organizational performance and employee productivity drive value, ROI Effective service strategy maintains lifecycle performance Understand energy conservation measures and their payback Focus on total cost of ownership over occupied life Conduct the financial analysis – including cash flow High Performance Buildings Make Business Sense 32 About Ingersoll Rand & Climate Solutions Thank You Any Questions? 33 About Ingersoll Rand & Climate Solutions