C ECooper EnergyCorporate Sustainability

Agenda

Cooper Industries & Cooper Lighting Cooper Lighting Capabilities The Opportunity Case Study Case Study Benefits of Energy Efficient Lighting Tools & Resources Sales Support and Engagement It is Easy Being Green

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Cooper Industries

Cooper Industries is a worldwide manufacturer of electrical products, tools and hardware

HomeElectrical ProductsToolsStrategic SourcingEmploymentCustomer ServicesCooper ToolsCooper Hand Tools

Operating eight divisions, nearly 100 manufacturing locations, and sourcing centers in China Mexicosourcing centers in China, Mexico, India and Eastern Europe

Distribution Facilities Across United States Canada MexicoStates, Canada, Mexico

Committed to environmental responsibility– Illustrated by eight guiding principles– Acknowledged by Cooper’s

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Environmental Excellence Awards

Cooper Lighting

Cooper Lighting is one of the world’s largest manufacturers of commercial, industrial, i tit ti l d d id ti l l i iinstitutional, roadway and residential luminaires

Committed to energy solutions with energy gy gyefficient lighting systems for existing structure retrofits and new construction

Bank of America, Bryant Park, NYC LEED Certified

Unparalleled lighting expertise, resources, and field support to close specifications and seal bids

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Full Line of Energy Solutions

The Opportunity

DOE states that lighting is the first investment to implement when evaluating facility energy upgrades

– Average 2.5 year payback, 45% ROIg y p y , %– 88% of a lighting systems operating costs are electricity

With advancements in lighting technology virtually any application that has not be retrofitted in the last five years is an opportunity

Lighting offers quick results for facilities looking to respond to increased environmental concern, green initiatives, code requirements and legislative pressures

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Energy Efficient Lighting is a Low-Risk, High-Return

Today’s Challenging Environment

Rising Operating Costs

Bottom-line results are under continuous pressure from internal operating costs and market requirements for greater productivity & sustainability

15,000

GDP Size & Growth Rates

15,000

GDP Size & Growth Rates

Rising Operating Costs– Increasing Electricity & other utility costs– Reduced Maintenance Budgets &

increased outsourcing costsIncreasing Environmental & Safety 5,000

7,000

9,000

11,000

13,000

15,000

GDP Size ($B

)

EU USA

China

5,000

7,000

9,000

11,000

13,000

15,000

GDP Size ($B

)

EU USA

China

– Increasing Environmental & Safety Compliance Costs

Environmental Stewardship– Carbon Footprint Reduction Goals

‐1,000

1,000

3,000

0.0% 2.0% 4.0% 6.0% 8.0% 10.0%

G

GDP Growth Rates

Japan India

‐1,000

1,000

3,000

0.0% 2.0% 4.0% 6.0% 8.0% 10.0%

G

GDP Growth Rates

Japan India

– Waste Stream Reduction Requirements

Globally Competitive Marketplace– Manufacturing shifts to overseas

markets$0 070

$0.080 

$0.090 

$0.100 

Electricity Price Trends

$0 070

$0.080 

$0.090 

$0.100 

Electricity Price Trends

– Need for ever increasing productivity– Every facility function or process needs

to contribute to profitability and ROI– Facility/Store Image Critical to Sales $0.030 

$0.040 

$0.050 

$0.060 

$0.070 

$/kW

h

$0.030 

$0.040 

$0.050 

$0.060 

$0.070 

$/kW

h

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y gSuccess

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Commercial IndustrialCommercial Industrial

Turnkey Lighting Upgrade SolutionsC t d di d t fl ibl t i l ti T k

Needs Assessment

Cooper uses a standardized, yet flexible, process to implementing Turnkey Lighting Upgrade Solutions

– Create Joint Development Team– Identify & Prioritize Needs– Understand Decision Making Process and Return Requirements

Solution Development– Lighting Standards Development– National Facility Opportunity Assessment & Prioritization– Professional-Grade Facility Auditsy– Lighting Design and Analysis– Proposed Solution & Report-Out

Turnkey Implementationy p– Order & Material Management– Project Management & Installation Coordination– Warranty Management– Tax Deduction and Rebate Management

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Tax Deduction and Rebate Management– Disposal & Recycling Services– Savings Verification

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Typical Lighting Solutions

M t li hti d l ti d d i t t hilMost lighting upgrade solutions reduce energy and maintenance costs while improving lighting quality and minimizing environmental impact

• HID Replacements to Fluorescent T5HO or T8 technology Up to 50% energy savings 130% or more increase in rated lamp life 31% increase in color rendering (measure of light quality)

For some applications, Pulse-Start Metal Halide may be preferred over fluorescent technology

• 8’ T12 Replacements/Retrofits to 4’ Super T8 technology Up to 45% energy savings 200% or more increase in rated lamp life 37% increase in color rendering (measure of light quality)

“Tandem” use of 4’ Super T8 lamps, delivers maximum energy and maintenance savings

• Fluorescent Retrofits from T12 to Super T8 technology Up to 60% energy savings Up to 200% increase in rated lamp life 37% increase in color rendering (measure of light quality)

Relamping standard T8 fixtures with Super T8 lamps also delivers great energy & maintenance savings

• Additions of Occupancy Sensors and/or Lighting Control Systems

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10-75% reduction in operating hours Corresponding reduction in energy consumption Longer lamp life and extended replacement schedules

Energy Savings is Only the Beginning

High Performance Lighting Improves Productivity– Studies Show Improvement Averages 3% (Carnegie

Mellon Study)Mellon Study)

Next Generation Technology Reduces Lighting System Maintenance

&– Lamp & Ballast Technology– Expense Reduction of 50% Possible

Improve Facility Safety, Reduce Quality Incidents Improve Facility Safety, Reduce Quality Incidents– Increased Visual Acuity

Building Values Increased– Building Valuation up to 10X Every Dollar Saved

Environmental Benefits– Carbon foot-print reduction

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Carbon foot print reduction

Saving Energy is ONLY one of the Benefits of a Lighting System Upgrade

National Upgrade Program Case StudyAn international provider of print and related services engaged Cooper to

Customer Needs

An international provider of print and related services, engaged Cooper to manage a North American Lighting Upgrade program

– Save Energy– Reduce Maintenance Costs– Improve Lighting Quality positively

impacting production processes Program Scope

– Program initiated in 2005, continues today– 58 Sites, representing 17.4M Square Feet– $10M+ Capital Projectp j

Turnkey Approach– Needs Assessment– Lighting Audits & Analysis

Solution & Proposal Development– Solution & Proposal Development– Turnkey Implementation– Warranty & Rebate Management

Program Results

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– $5M Annual Energy & Maintenance Savings– 84M kWh & 44K tonnes CO2 Emissions

Saved10

National Upgrade Program Case StudyAn international provider of Gypsum Lumber Plywood and Paper related

Customer Needs

An international provider of Gypsum, Lumber, Plywood and Paper related products, engaged Cooper to manage a North American Lighting Upgrade program Customer Needs

– Energy Efficiency– Reduce Maintenance/HVAC Costs– Improve Lighting Quality

Positive impact on Production/Safety processes– Positive impact on Production/Safety processes Program Scope

– Program initiated in 2006, continues today– 33 Sites, representing 41.7M Square Feet– $14+ Capital Project

Turnkey Approach– Needs Assessment– Lighting Audits & Analysisg g y– Solution & Proposal Development– Turnkey Implementation– Warranty & Rebate Management

Program Results

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Program Results– $12M Annual Energy & Maintenance Savings– 112M kWh & 86K tonnes CO2 Emissions Saved

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Characteristics of an Upgraded Lighting System

A facilities’ lighting system is often overlooked as a resource for generating savings at many levels of your income statement!

Economic Impact

statement!

Reduced Utility Cost

(Electric)

Reduced GHG

Compliance Cost

Improved Sales from Environmental Position

Reduced Labor Costs

(Install &

Purchase)

Reduced Inventory Cost

Increased Worker Productivity

Increased

Floor Sales Calls

Improved Safety

Environment

)

Characteristics of an upgraded lighting system

√ √ √Increased Energy Efficiency of a New √ √ √Efficiency of a New Lighting Technology

√ √ √

Longer Life Products √ √Improved Color Quality & Vi ibilit √ √ √

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Saving Energy is ONLY one of the Benefits of a Lighting System Upgrade

& Visibility √ √ √

The Energy Sales Process

Create Vision

Data Collection

Data AnalysisVision Collection Analysis

• Preliminary discussions •Preliminary audits (1-4) •Compare energy rates• Preliminary discussions• Corporate culture• Existing strategies • Potential energy savings

Preliminary audits (1 4) •Lighting systems•Utility rates/ geography•Operational characteristics

•Compare energy rates with operating hours

•Analyze best practices by task area

•Analyze financial impact• Operating benefits• Competitiveness • Financial hurdles

p•Find opportunities that maximize energy benefits

•OccupancyC l l

•Analyze financial impact from portfolio perspective

•Compare financial findings with corporate

•Control Device Potentiald gs t co po ate

requirements

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The Energy Sales Process

Solution Sourcing MeasurementStrategy

gManagement Verification

•Project commissioning •Measurement & verification

•Design energy conservation measures

•Incorporate “best practices”

•Scope the project•Bid projects •Select contractors/ schedule

•Quality control meetings•Consider existing corporate strategies

•Identify and implement projects that meet financial h dles

Select contractors/ schedule the work

•Conduct pre-project meetings•Conduct pre-measurement

hurdles

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Energy Savings is Only the Beginning

Want to know more about more energy efficient programs?

Cooper can provide the following services: Turn-Key Energy Efficient Programs M i t d ti d id Maintenance reduction and avoidance programs Corporate SKU reduction programs Safety and Productivity enhancement programs E i t l B fit l i Environmental Benefits analysis Legislation and Incentive Programs

C t t C Li hti i l l il tContact your Cooper Lighting energy regional sales manager or email us at:

energysolutionsales@cooperindustries.com

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Take the Next Step!