Market Sizing North America Intelligent & Integrated Technologies

1. Market Sizing North AmericaIntelligent & Integrated Technologies

2. Market Sizing North AmericaIntelligent & Integrated TechnologiesExecutive Summary Presentation Jeremy Towler Jan. 13, 2010 52669

3. Agenda

4. World Class Sponsors Level 2 sponsors Level 1 sponsors

5. Project Team Andrew Giles, MAGeneral ManagerBSRIA - World Market Intelligence (WMI) Jeremy Towler, BBA, HTEC, dipl. Oek. Senior ManagerIntelligent Building Technology Lone HansenSenior ManagerI.T. Cabling and Associated Technologies Gambi Chiang, MSc, BEng, MCIM, Charter MarketerSenior Manager Special Projects Sukant Rout, BEng(Telecom), MBASenior Market Research Consultant: Intelligent Building Controls / IT Cabling & Associated Technologies Ianire Cobeaga, MBAMarket Research Consultant Intelligent Building Technology Allan McHale, CEng, MIMechE, MIst Energy, MBIM. Independent Consultant

6. Market Sizing North AmericaIntelligent & Integrated Technologies Purpose To provide a detailed assessment of the current and future markets around intelligence in non-domestic buildings in North America Quantitative assessment of the market, supported by qualitative description and explanation where required Size the principle markets by application and evaluate the size of the market for integrated and IT-converged solutions Scope IT Convergence Environmental Controls Lighting Controls Security Systems Fire Detection Systems

7. Project Timetable Project start – June 4th 2009 Project planning - July Desk research and Set-up interviews - August Field Research – September through November Report Writing - October through November Delivery – End November Presentations – Dec. 9th 2009 / Jan. 13th 2010

8. Structure of Reports • Introduction • Market Structure and Form • Market model • Growth • Product segmentation • System segmentation • Supplier Analysis • Trading Practices and Procedures • Industry Dynamics and Growth Prospects • Forecast • Integration • By application • Integration by vertical market • Construction Overview

9. Key Findings Each of these markets offers real growth opportunity Each exhibits its own dynamic Fragmented market, particularly for converged solutions High end integration in the hands of a few multi-nationals 56% Stand-alone systems 44% Integrated and Converged Nearly all integrated solutions are also converged - at least at management level - many also at control level Convergence - bringing together autonomous systems onto a common communication platform within the business enterprise to create a single unified solution Integration - adding value by joining or linking different building services products

10. Key Findings Environmental (HVAC) Building Controls The market will compete in applying BAS to tackle climate change issues Companies need to acquire both controls and IT knowledge Lighting Controls Huge potential, consolidation of Lighting Controls business with Acuity/ Philips/ Cooper Controls acquiring companies to provide total lighting solutions and more integration Although LED lighting is a growing market, controls still required for better efficiency Security Systems CCTV / Video surveillance continues to set the pace Strong movement towards IP systems and the integration of security systems Fire Detection and Alarm Robust, growing market, driven (and constrained) by codes & regulations Demand for better evacuation solutions will drive integration of nascent mass notification / voice evacuation market

11. $20 Billion Systems* Market 2009 • Systems = Product + Value Add (Engineering, Commissioning, Installation) excluding maintenance

12. $8.5 Billion Market for Products* (incl. cable & cabinets) 2009 • Products = Hardware, Software, Cable and Cabinetsat first point of distribution prices

13. VM Segmentation 2008/9

14. Project Type Segmentation 2008/9

15. Building Sector Segmentation 2008/9

16. Open Standards Enabling Convergence Management level (Mostly IP) Automation / Control layer(Open Standards and proprietary) Intruder Alarm Field layer (Controls / sensors / actuators) Security Environmental (HVAC) Controls

17. Recession has slowed market USA Canada * Intelligent Building Controls Source: Economist/ US Census Bureau However, IBC* markets have outperformed Depressed economy, lack of credit, increasing building vacancies Fall in new construction, delayed refurbishment and retrofit

18. IBC Markets will Rebound USA US$ Bn. Source: Economist/ US Census Bureau Canada Source: StatCan * Intelligent Building Controls Economic stimulus will help boost demand – particularly public sector IBC* markets expected to return to growth late 2010/early 2011

19. Integration / Convergence Drivers • Two Primary drivers: • Energy (energy usage and building performance) • Security (security / safety of people and assets) • Secondary drivers • Political • The economy • Construction output (new / refurbishment) • Retrofit / replacement

20. The future • In recent years several new master SIs have emerged • Partnerships between best-in-class suppliers • IT companies augmenting their offering to include new applications. • e.g. CISCO: Facility management with Mediator, EnergyWise and a security offering • IBM have Maximo and Tivoli • are cooperating with the BMS co.s • and operate as a master SI • There will be more solution providers

21. The Main Systems Integrators CISCO IBM HP Oracle Others, Accenture, Plexus, Wipro etc.

22. Key conclusions & strategic recommendations More retrofit now, more new build in future Communicate ROI to end user Train the channel on IT as well as FM Raise awareness within the construction industry