On December 14, 2009, the Alliance to Save Energy and the Renewable Energy and Energy Efficiency Partnership (REEEP) held a side event at the COP15 climate conference in Copenhagen, Denmark, entitled, "Paradox to Paradigm: The Role of Energy Efficiency in Creating Low Carbon Economies."

1. Page December 2009 6,5% Andreas Schierenbeck CEO, Siemens Building Automation Copenhagen / December 14, 2009 Upping the Bottom Line: A Business Perspective on Energy Efficiency for Buildings

2. Megatrends – the world's toughest questions Page December 2009 5% 1% 11 of the 12 years between 1994 and 2005 rank among the 12 warmest since weather observations began Today we face the highest CO 2 concentration in the atmosphere for the past 350,000 years Average life expectancy worldwide will increase to 72 years in 2025 from 46.6 years in 1950 World population will grow from more than 6 billion now to 8 billion by 2025 Today: 280 million people live in megacities (> 10 million residents) 2030: 60 % of the world’s population will live in cities From 1950 to 2004, the volume of global trade has increased 27.5-fold. The number of global players has grown from 17,000 in 1980 to over 70,000 today Climate Change Demographic Change Urbanization Globalization

3. What we know about cities… Page December 2009 Cities cover less than 1% of the earth's surface but are disproportionately responsible for causing climate change Currently, around 50% of the world’s population live in cities. Until 2030, 60% of the world's population growth will occur in cities Cities consume some 75% of the world's energy and are responsible for up to 75% of greenhouse gas emissions and account for 60% of world's water use Megatrends pose urgent challenges to cities Osaka at night

4. Different types of cities have different challenges Page Developed cities Megacities Planned future cities Quality of life Attractive for companies and industry Industrial and urban growth Build-up of infrastructure Industrial and urban growth Build-up of infrastructure Sustainability (emission, energy efficiency) Infrastructure renewal Pollution, congestion provision of resources (water, electricity, swage treatment) Limiting resources (particularly energy and water) Moderate transition Reckless growth Forward looking

5. Page December 2009 What we know about buildings… 40% life cycle cost of a building is consumed in energy 80% Operation / Renovation Life cycle Investment 1–2 50 2–5 20% Design Build Industry 31% Buildings 41% Demolition 0–1 Operation cost 60% Energy cost 40% Transport 28% (direct emissions from primary energy usage) (indirect emissions through power usage) 22 11 13 8 14 18 14 Forestry 14 Agriculture / wast 18 Transport 14 Industry (direct emissions from primary energy usage) Industry (indirect emissions through power usage) Buildings

7. Buildings generate most of CO 2 emission in developed cities Page December 2009 Mix of CO 2 Emissions (Total 47 Mt 2005) Buildings Transport Industry 67 % 26 % 7 % Example London

8. Page December 2009 CO 2 emission reduction is financially profitable Potential for CO 2 reduction in London till 2025 Source: “Sustainable Urban infrasture, London Edition – a view to 2025” CO 2 emission reduction in Buildings is especially attractive

9. Page December 2009 The most attractive and profitable leaverages to reduce CO 2 Quelle: Studie „Kosten und Potenziale der Vermeidung von Treibhausgasemissionen in Deutschland“ von McKinsey & Company, Inc. im Auftrag von „BDI initiativ – Wirtschaft für Klimaschutz“ – AG Gebäude. Tertiären Sektor (Gewerbe, Handel, Dienstleistungen, öffentliche Gebäude, Gebäude in der Landwirtschaft) Drives for pumps Building sector: CO 2 cost reduction – Germany 2020 Drives for AHU‘s Efficient air handling systems Adaptive Illumination Energy monitoring Automatic control design

10. The business potential is substantial ( average pay back time < 5 years) Page December 2009 9% World-wide energy efficiency potential 200 billion $ US billion $ US Energy efficiency potential in commercial buildings in Germany: 18 billion $ US 18 130 52 200 US Total GER RoW Public sector 43 % Healthcare 22 % Offices 12 % Industries 7 % Hotels 4 % Retail 4 % Other 9 %

11. &quot;The battle against climate change will be won or lost in our cities!&quot; Page December 2009 9% … resulting in over USD 2 billion in energy savings and reduction of 1.5 Mt CO 2 per year (energy mix adjusted) World wide Building Automation has carried out 1.500 Energy Efficiency projects and monitoring 30.000 Buildings world wide…

12. Optimum adjustment of building performance to customer needs Page December 2009 No BACS BACS without Energy Monitoring BACS with Energy Monitoring 100% 90% 80% 70% 60% Time Energy consumption BACS with additional Energy efficiency measures Energy consumption in buildings Head office Building Automation, Zug Reduced heating cost by 44% (50.000 $) p.a. without investment Efficient usage requires continual optimization and monitoring

15. Green Buildings are 0 - 5% more expensive to build, but more efficient to operate Page December 2009 Source: Deutsche Energie-Agentur GmbH (dena), GreenBuilding General contractors are not responsible for the energy consumption in the building Architects focus normally on aesthetic and less on energy efficiency Planer have little motivation to develop energy efficiency buildings Investors Do not always have interest in energy efficiency buildings GreenBuilding promotes energy efficiency in commercial buildings Stake Holders

16. Existing buildings modernization and utility costs Page December 2009 Energiepass rates a building according to its overall energy efficiency level Owner / Operator of commercial buildings simply pass the energy costs to the tenants Tenants have little motivation to invest in the improvement of energy efficiency of the building Owners invest, but the tenants benefit Rental premises with lower utility costs cannot command a higher rental rate Stake Holders

18. Summary and outlook Page December 2009 Today’s existing technology (Smart Grid / Smart Buildings) can solve the climate challenges to a large extent – innovative business models enable the fast implementation. Climate challenges need joint efforts from Legislation – create market pull - and Industry – create technology push. The main growth in population will happen in urban areas and cities where buildings represent the biggest lever to reduce the CO 2 emissions – migration of the existing cities will be the main challenge. Legislation and financial incentive systems as well as example setting

19. Page December 2009 Thank you for your attention