Energy Efficiency for the American Baking Association

June 16, 2009

The Cleanest and Greenest Energy Is Energy Not Used

• Energy efficiency is the quickest, safest, most cost-effective way to immediately reduce the emission of greenhouse gases

– Immediate

– Verifiable

– Economical

Lime: Less Is More Efficient

Who Are We?

• Leading provider of energy efficiency and renewable energy design/build solutions with:

– National footprint

• 370 employees in 14 offices throughout the U.S.

– Broad array of services

• energy engineering, lighting, HVAC, water, weatherization, renewable energy

– Blue-chip customer base

• Over 75 years combined experience in energy conservation and efficiency

What Do We Do?

• Design, engineer, and install proven best-of-breed technologies in existing facilities. These measures:

– Reduce direct operating expenses

– Provide immediate financial results with high ROIs

– Improve work space and employee productivity

– Enhance the value of the facility

– Reduce environmental footprint

Who Do We Do It For?

• Commercial and Industrial Businesses– Corporations, Manufacturers, Property Owners, Property

Managers, Utilities

• Energy Service Companies (“ESCOs")– Federal, State and Municipal Government Agencies

• US Post Office, Schools K-12, Private and Public Universities, Public Housing, Correction Facilities, Military Facilities

5

Opportunity

LightingHVAC/

Mechanical

Lime is focused on delivering high ROI energy efficiency solutions that target some of the largest energy expense line items on its customers’ P&L.

Electrical

Services

Energy Savings

Water WeatherizationRenewable

Energy

Delivery Process

• Opportunity Assessment

Performance Period

ImplementationDevelopmentOrigination

• Site Survey

• Conceptual Design

• Final Cost & Scope

• Execute scope of work

• Demonstrate ROI

• Handle documentation for rebates and incentives

Multi-Site Baking Experience

Progress to Date (Starting early 2008)• Completed lighting retrofits at 11 sites• Completed an engineering study for solar energy• Scheduled a detailed walk through for other measures

such as compressed air, motors, heat recovery

Out of the 11 sites completed, the client is projected to save $500,000 per year. Retrofit costs have been $1.2 million, so overall a 42% ROI.

The retrofits are projected to save 5.2 million kilowatt-hours each year, which is the equivalent of taking 811 cars permanently off the road, or eliminating 9.4 million pounds of greenhouse gas carbon dioxide per year.

Lime Energy and Baking Facilities

Overhead cost savings go right to the bottom line• Lighting alone is projected to save $500,000 per year

on utilities and maintenance at 11 plants. These savings go right to the bottom line, so think of this as the same as selling $18 million of new product sales at a 2.75 % overall net profit margin (average of all public companies in food processing).

Other Steps Beyond Lighting

Solar energy has a long payback

Other sustainability activities mentioned by customers

Bakery System Size (kW)Initial Project

Cost Annual SavingsIncentives Over

Project LifeROI with Federal

Tax Credit

ROI without Federal Tax

Credit

Fresno 536 $3,432,336 $134,852 $1,928,405 0.7% -0.8%

San Luis Obispo 258 $1,677,000 $66,154 $919,192 0.6% -0.8%

Stockton 518 $3,315,995 $125,315 $1,812,546 0.4% -1.1%

Sacramento 716 $4,585,025 $138,030 $2,961,359 0.2% -1.5%

Phoenix 213 $1,352,550 $29,050 $1,217,295 -0.1% -1.9%

Oakland 662 $4,303,098 $151,627 $2,267,929 -0.2% -1.5%

Vernon 597 $3,789,707 $88,233 $1,136,912 less than -2% less than -2%

Arlington 274 $1,778,400 $35,586 $533,520 less than -2% less than -2%

Albuquerque 445 $2,844,875 $45,424 $853,462 less than -2% less than -2%

Dallas 223 $1,450,816 $26,102 $435,245 less than -2% less than -2%

Salt Lake City 761 $4,753,515 $84,811 $1,426,055 less than -2% less than -2%

Paris 801 $5,206,500 $83,701 $1,561,950 less than -2% less than -2%

Denver 543 $3,472,969 $38,683 $1,241,891 less than -2% less than -2%

Case Study (New Jersey) 699 $4,400,000 $100,000+ $2,923,000 N/A N/A

• Install oven gas meters and regularly review the data

• NOx controls on gas burners

• NIOSH dust control measures

• Metal detector upgrades

Why Lime Energy

Why we win…

• Intellectual capital and experience to identify and analyze opportunities

• Systems and processes in place to deliver efficiently & cost-effectively

• Strong, referenceable relationships

• Ability to develop on a national scale but implement locally

Our Challenge as an Industry

• Promote energy efficiency as available now – no need to wait for promising new technology.

• No matter how you measure financial merit, energy efficiency probably has the highest return on investment of anything you can do in your business.

Other Reasons Beyond Payback

A warehouse operation in Seattle improved their selection accuracy from 99.4% to 99.9% after the lighting retrofit.

A recent survey of 538 senior business executives and 18 in-depth interviews that “almost three-quarters (73%) of firms polled will make energy efficiency a high or moderate priority over the next two years in a bid to cut costs.”

An office tower will be using their new lighting fixtures to reduce glare and avoid worker complaints – and the new fixtures will be paid for out of energy savings.

A food products factory in Chicago installed the new lights when their primary customer asked them what they are doing to help the environment.

Energy Efficiency Today

Building energy costs run $1.50 to $3.50 per square foot.

What is your energy cost per square foot?

1. Find out and track it.

2. Create a team to investigate options.

3. Act on projects that have a good return on investment

Your Energy Costs

Your energy cost today does not have to be as high as it is.

Make an objective

Manage as if you want to reach that objective

In return, you will receive two significant benefits. High ROI investment

Positive public relations for yourself and your industry

Manage and Report Energy Costs

50 different customizable audits with instant alerts monitors for:

• Changes in use, occupancy or habits

• Equipment or meter malfunction

• Billing errors

• Inefficient building operation

Potential for 3% - 5% Initial Savings Opportunity

Something has changed and may need attention

Utility Trac from Lime Energy

Benchmarking Utility Usage and Costs

Know where to spend time and effort ….and as important, where not to!

Low-hanging fruitLow-hanging fruit

• Quickly identify buildings that need immediate attention

Utility Trac from Lime Energy is complete reporting and analysis tool for tracking, identifying trends, benchmarking, and spotting opportunities

from your utility consumption patterns.

Seven Reasons for Energy Efficiency

Reason number 1

Don’t throw your cash in the trash

Seven Reasons for Energy Efficiency

Reason number 2

Your employees will be happier

“The new lights seem to have energized the workers. I have been here 20 years and I can’t say enough good things about how this went, plus it was very economical with a fast payback,” said Bill Fuson, Facilities Maintenance Manager, Orcon Aerospace Co.

Seven Reasons for Energy Efficiency

Reason number 3

Tax deduction

Seven Reasons for Energy Efficiency

Reason number 4

You get new stuff

Seven Reasons for Energy Efficiency

Reason number 5Your facility is more valuable

“If you look at the impact, you are getting higher rent, lower energy costs and lower vacancy costs,” says [CoStar CEO Andy] Florence. “You have three things working on the income statement to the positive. You are going to have a much higher valuation of the building.”

Higher Building ValuationsHow much higher valuation? The report found that an ENERGY

STAR building sold for an average of $351.60 per square foot in 2006, 30 percent higher than a non-ENERGY STAR building, which sold for an average of $270.15 per square foot. Since 2003, ENERGY STAR buildings also have been appreciating in value faster than non-ENERGY STAR buildings.

Source: CoStar report on Energy Star performed for the US DOE

Reason number 5 (continued)

Net Operating Income and Value Go UPIncome Gross Rents Possible 100,000    Other Income    3,000Potential Gross Income 103,000    Less vacancy Amount    2,000Effective Gross Income 101,000    Less Operating Expenses  31,000Net Operating Income  70,000

Estimated Value =

Seven Reasons for Energy Efficiency

$700,000Net Operating Income

Cap Rate

$70,000

0.10==

Also, a higher NOI helps you on your debt coverage ratio.

Seven Reasons for Energy Efficiency

Reason number 6

Do some publicity

Join the companies that make a point to promote their sustainability agenda to their customers.

Seven Reasons for Energy Efficiency

Reason number 6

Do some publicity

Push your sustainability agenda, because if you don’t others will.

Seven Reasons for Energy Efficiency

Reason number 7

Make it a financial winner

Recent Industry “Green” Initiatives

“Green” Certification Programs in Other Industries

• Furniture Manufacturers Association certification program

• DuPont Innovative Packaging Awards

• International Initiative to “Green” wristwatch manufacturing

• Specialty Sleep Association “Green” initiative for beds

• Chiquita Brands wins Logistics Supply Chain award

• “Certified Green” programs for printing plants, auto repair shops, etc.

• Our industry is hiring while others are firing.

• Our installations have a payback.

• Our product improves the air quality and fights global warming.

• Energy efficiency makes companies more competitive.

• Significant federal money is available to our industry.

• Our installations provide benefits beyond simple payback.

The Future of Energy Efficiency