The document discusses global energy issues and opportunities for improving energy productivity. Key points include: - Energy costs account for around 13% of global GDP. Prices are at historic highs and volatility is increasing. - The US and EU have very different energy intensities and climate change policies. There is opportunity to share best practices in energy productivity. - Improving energy productivity by 20-30% through efficiency gains could provide major economic and environmental benefits for companies and countries. - Many companies do not view energy as a strategic issue and are missing opportunities to cut costs and emissions through better management. - Case studies show companies achieving major savings through sustained energy productivity programs involving goals, measurement, capital investments and behavior change.

1. Energy Productivity “A Competitive Prerequisite” Peter Garforth Principal - Garforth International llc

2. Global Cost of Energy Approximately 13% of Global GDP What we pay for Gas, Electricity, Petrol.... Energy we use Energy we waste $ 5.0 Trillions

4. Energy Productivity Differences Opportunity for best practice sharing *Various US/EU Sources – 2004 Estimates Energy prices globalizing 261 69 100 Energy / GDP Energy / Capita Energy Total GDP Population Region 13 246 94 1910 RoW 50 65 95 130 EU-15 100 100 100 100 USA

6. China Industrializes Sources: BP Statistical Review of World Energy June 2004 EIA International Energy Outlook 2004 Projection based on IMF 5% GDP Growth Rate EU-15 USA

8. Greenhouse Gas Levels * John Houghton – UK Met Office et al 160,000 yrs* of ice core data Today 2100 BaU Lowest possible 2100 Today??

11. Electricity Chain Growing demand for natural gas! Industry 30% of total Wasted Heat Source: US DoE EIA Coal Gas Nuclear Renewable Conversion Losses

13. Coal in Cold Beer Transmission loss ~ 3 Distribution loss ~ 3 Heat ~ 70 Conversion loss ~ 15 Is there better deal? Coal = 100 Cold Beer = 9

15. Owens Corning's Experience 1999 to 2003 to…..

17. 1999 Declared New Game Energy Mission: Possible 20% Energy Cost Reduction Way energy used in processes Improved Procurement Energy Technology Energy Efficiency $260 Millions

20. Keep Scorecards Simple CEO’s Monthly Energy Report

21. ..and have some fun! Visualizing efficiency in Indian plant

22. “Cool Company” Award Declared energy to be manageable cost

24. Sources of Gains Improved Procurement Low Cost/No Cost Employee Teams Capital Projects (Externally Driven) Capital Projects (Employee Driven) Total $80M The Game Continues….. Average Return ~ 22%

26. Other Experiences

27. BASF - Total Resource View Courtesy of BASF AG

29. Toyota’s View of the Corporation Production Sub-Committee (1 of 3) Courtesy of Toyota Ltd

31. Unilever – Global Management Energy (GJ) /Tonne Carbon-dioxide (kg) /Tonne Total Energy (MGJ) Total Carbon-dioxide (MMT) Unilever is committed to meeting the needs of customers and consumers in an environmentally sound and sustainable manner, through continuous improvements in environmental performance in all our activities.

36. Copyright Clinton International LLC Energy is a manageable cost… not an act of God!

37. Winners manage it effectively!

38. Thank You !

39. Contact Information Peter Garforth Garforth International llc 2121 Boshart Way Toledo, Ohio 43606, USA Tel: +1 419 578 9613 Fax: +1 419 578 6861 Mobile: +1 419 320 0664 Email: garforthp@cs.com