The Results are In: Decision Drivers for EMS Purchases and Other Key FindingsJune 6, 2013

Presenter: Alison Liaboe, Director of Product Management Facility Optimization, Ecova

The Results are IN

Survey methodology

Decision drivers for EMS vendor selection

How EMS are used

Best practices for delivering value

67%

15%

4%6%

8%

Yes, these systems are currently control-ling both of the above

Yes, these systems are currently control-ling our HVAC setpoints and schedules

Yes, these systems are currently control-ling our lighting schedules

No, we have no systems, but we have considered for 2013 or beyond

No, and we have considered and are not interested

Do You Currently have EMS Installed?

85% of respondents have EMS installed at some or all of their sites, and those systems are controlling any number of systems, HVAC, Lighting, etc.

EMS Coverage in 50% or More of Sites

45%

13%10%

10%

8%5%

3% 3% 3% 3%

Breakdown of Companies that haveEMS Installed in > 50% of sites Retail

GroceryunknownReal EstateFinanceTheatrePublic AdministrationManufacturingHospitalityTelecom(blank)

Sustainability Trends

“The retail industry accounts for the largest energy bills and the second largest amount of greenhouse gas emissions in the entire commercial

sector of the U.S. economy.”

Jean Lupinacci Chief of U.S Environmental Protection Agency’s ENERGY STAR Commercial and Industrial program

THE JOURNEY TO SUSTAINABILITY BEGINS WITH UNDERSTANDING USAGE

Sustainability Trends

• Companies monitoring energy usage at least weekly using on-site measurement systems made 2x as many energy improvements than those that monitored monthly or less (Source: 2010 Energy Efficiency Indicator Survey – Institute for Building Efficiency)

• The financial value of benchmarking for Medium Box Retail:

• Savings of 2.4% has been realized for three consecutive years and is equivalent to the following1:

• For a Retailer with 500 stores this equates to: Cumulative energy savings of $2.5 million = sales increase of 0.89%

• Ecova’s Medium Box Retail clients have had 4 years of 3% savings per year

Benchmarking

(1) Energy Star: Benchmarking and Energy Savings – October 2012

Energy Profile Overview

• Significant variability in annual Energy Use Intensity (EUI) across climate zones• Nearly 70% of these sites fall between 13.8 and 31.5 kWh/Sqft• Median is 22.52

• This variability indicates opportunities for efficiency improvements• $90 million in potential energy inefficiency (nearly 10% of total spend across the segment)

Assessment of Peer Building Benchmarking

8K 9K 10K 11K 12K 13K 14K 15K 16K 17K 18K 19K 20K 21K 22K 23K 24K

Median Sqft

0

5

10

15

20

25

30

35

Median Annual kWh per Sqft

Median : 22.52

Median Annual kWh per Sqft by Client

What Brand of EMS are Installed?

Honeywell, Siemens, Johnson Controls and Trane are dominant in this market.

Honey

well

Siemen

s / S

ite C

ontro

ls

John

son

Contro

ls

Trane

Novar

Carrie

r

Emer

son

Cisco

Grid

Poin

t

TCS Bas

ys

Alerto

nFSG

Andov

er

Echelo

nYor

k0

5

10

15

20

25

30

44%

19%13%

12%

12%

What is the most important consideration whenmaking an EMS purchase decision?

Cost/Price

Ease of Use

Reliability

Capability

Integration

EMS Purchase Considerations

n = 79Price is the overwhelming consideration when making a purchase decision.

Where’s the Value?

Take care of Outliers in timely manner to keep costs down.

Better control over energy usage.

We have found on numerous occasions that equipment is malfunctioning and we can respond quickly before major breakdown.

EMS gauges your energy use, plus or minus savings, gives your company guidelines to adjust energy use for cost savings.

The only way to design and run more energy efficient stores.

Value in terms of preventive maintenanceand savings.

Excellent information about energy consumption - identify outliers, proactively troubleshoot mechanical systems, etc.

Nearly all respondents indicate there is value in EMS data.n = 75

92%

Do you see value in proac-tively collecting and analyz-

ing EMS data?

YESNO

Energy Usage Trends

Annual kWh usage trends for retail has consistently decreased from 2009 - 2012

Cost reduction efforts across all

expense lines

Energy recognized as a

controllable expense

Continued discussion of sustainability

overall

Significant spending by utilities on

energy efficiency programs

EMS monitoring can drive reduction of

energy use to >20% over a 3 year period

Are You Achieving Return on Your Investment?

Over 2/3 of respondents used an ROI analysis as part of the purchase decision, yet over ½ of respondents did not achieve expected ROI or are unsure if they did or not.n = 72

Were you provided an ROI analysis to assist in the selection of your EMS?

Are you achieving expected ROI?0

10

20

30

40

50

60

70

80

Yes

No

Unsure

80% of Respondents Have aMonitoring Solution

49%

31%

19%

Yes, in-house personnelYes, by outsourced vendorNo, we do not have a monitoring solution

n=78

Reasons why ROI not Achieved

System overrides

Standard configurations are not documented or enforced

Sensors are in less than optimal locations

Nuisance alarms

Equipment has not been re-commissioned

Best Practices

All these alarms are driving me crazy!

Monitor and ManageHuman Interaction

Standardize on ProperAlarm Management

Minimize Access to Systems

Document Standard Configurations and Sequences of Operation

Pinpoint Sensor Location for PowerfulTracking Results

Implement Variance/Change Management Program

Back-up Configurationand Program Files

Re-Commission Energy Management Systems

Apply a System Monitoring Program

Reduce occupant complaintsTrim operating costsIncreased energy efficiencyImproved EMS performance

PM vsRun-to-Failure

Summary of Key Findings

• 85% of respondents have EMS installed

• 80% of retail chains that responded have EMS in >50% of sites

• There is no clear market domination among EMS vendors

• Price is the major factor when making an EMS purchase decision

• Nearly all respondents indicate that there is value in EMS data

• Half of respondents collect and analyze 15-minute interval data

• ROI analysis used but not getting return

• 80% of respondents employ a monitoring solution

Upcoming Webinars

INSIDE ENERGY & SUSTAINABILITY Rebate Management Services Educational Webinar –

June 13th Q2 External Market Intelligence Webinar – June 20th

DIAL IN THE SAVINGS SERIES Telecom Budgets Survival Guide – June 19th

Questions, comments, suggestions? webinars@ecova.com

Q&A

Thank you!