New Technology, Trends and Market Drivers In …...U.S. Commercial Refrigeration Market Key Facts: • 140,655 Convenience Stores1 • 935,000 Restaurant / Food Service Locations2

Jim Kitchen

New Technology, Trends andgyMarket Drivers In

Commercial RefrigerationAESP Technology Symposium Long Island NY Sept 18th 2007

Commercial Refrigeration

The Name Behind the Brands You Trust www.heatcraftrpd.com

AESP Technology Symposium, Long Island, NY Sept 18th, 2007

© Heatcraft Worldwide Refrigeration | AESP Conference | Sept 17, 2007

Lennox International Core Businesses

Heating & CoolingHeating & Cooling Service ExpertsService Experts RefrigerationRefrigerationResidential | CommercialResidential | Commercial

Service ExpertsService Experts RefrigerationRefrigeration

central a/c, packaged rooftop equipment condensers, ,furnaces, heat

pumps, IAQ equip, fireplaces

p g punits, split systems

q psales, installation,

maintenance, & service

,condensing units,

evaporators, systems

US/C d US/Canada/ US/C d Gl b l

ProductsProducts

US/Canada US/Ca ada/Europe US/Canada Global

$1,419.8 $580.8 $611.7 $444.7

GeographyGeography

2004 Revenue ($USD millions)

2004 Revenue ($USD millions)


U.S. Commercial Refrigeration Market

Key Facts:• 140,655 Convenience Stores1

• 935,000 Restaurant / Food Service Locations2

• 56,742 Supermarket / Grocery / Club Locations3

• 3.21 billon gross cubic feet of Refrigerated Warehouse Capacity4

Sources:1 2006 NACS State of the Industry Annual Report2 National Restaurant Association 2007 Forecast


3 Progressive Grocer’s 73rd Annual Report of the Grocery Industry4 USDA Capacity of Refrigerated Warehouses, 2005 Summary

Typical Refrigeration Applications:C-Stores & Restaurants; Supermarkets

Convenience Stores & Restaurants

Supermarkets & Grocery Stores

Energy Use: 24 Billion kWh / YearFood Service : Highest Energy

C ti R t ft2

Energy Use: 59 Billion kWh / YearRefrigeration 44-62% of Total

S k t E C tiConsumption Rate per ft2 Supermarket Energy Consumption

Total Energy Use: 83 Billion kWh / Year


Sources:2003 Commercial Buildings Energy Consumption SurveyOak Ridge National Laboratory ReportCompany Estimates

Total Energy Consumption by State(Convenience Stores, Restaurants, Supermarkets)

Total kWh / Year


Key Industry Drivers

Energy Efficiency

• CEC Title 20 / 24Operational

• Food SafetyR t M j R llPSC Motors required in 2006

BLDC Motors required in 2008Cold Storage Facilities

D d R

Recent Major RecallsMore Stringent Regulations

• Technology Integration• Demand ResponseDynamic Rate StructuresUtilities able to raise demand

t h t b d t t

Technology IntegrationIncreased Use of New TechnologyMonitoring / Centralized Management

ratchets based on system events• Utility costs are having a

negative impact on restaurant t 1

• Food Service Trend in C-StoresMore Offering Food ServiceRequiring More Refrigeration24% Increase 2004 2006operators1

Quickservice 81%Family Dining 72%Casual Dining 77%

24% Increase 2004 – 2006

• Cost PressuresHigh Fuel Cost / Low Margin


Casual Dining 77%Fine Dining 67%

1 Source: National Restaurant Association 2007 Forecast

High Fuel Cost / Low MarginCredit Card Fees

Energy Solutions®

Objectives:Provide for Current RegulationsI t d N T h l iIntroduce New TechnologiesQuick / Simple / Large Scale

ImpactImpact

Target:Energy Service ProvidersEnergy Service ProvidersUtility ProgramsEducation / Promotion


Energy Solutions Product Portfolio

Condensing UnitsScroll CompressorsPSC Motors

EvaporatorsPSC / EC MotorsR-410A Compatibility

Multiple Compressor Condensing Units

Floating Head Pressure Glycol Unit Cooler Offering

Hot Gas Defrost SystemMatched Condensing Unit & Condensing Units

Scroll Compressors

Fully Self Contained Packaged Electronic Refrigeration Control

gEvaporatorsIncreased Operating Efficiency

Fully Self Contained Packaged Refrigeration Systems

PSC MotorsReduced Refrigerant Charge

Electronic Refrigeration Control System

Smart DefrostTM AlgorithmUp to 75% reduction in defrosts

Smart Defrost KitTM

Ready-to-Install Aftermarket Kit30 40% reduction in defrosts

Air Cooled CondensersVariable Speed EC MotorsFl ti T b C il D i


30 – 40% reduction in defrostsFloating Tube Coil DesignR-410A Compatibility

Bohn Monarch SeriesAir Cooled Condenser

• External Rotor Motor w/ EC Technology• Complete System

EC Motor (75% More Efficient)Integrated VFD and control electronicsSwept motor blade Optimized venturi panel

• Proven Reliability3 year warranty


…Translates to Significant Savings

Annual Power Usage & Electricity Costs at Typical Operating Loads (55% Load)

160 000

126,144

$10,092

120,000

140,000

160,000

mpt

ion

(kW

H)

$8,000

$10,000

$.08

/kW

H

90%Reduction

60,000

80,000

100,000

Elec

trici

ty C

onsu

m

$4 000

$6,000

ctric

ity C

osts

@ $Reduction

2 – 3 Year Payback

29,78413,140

$1,051

$2,383

20,000

40,000

,

Ann

ual E

$

$2,000

$4,000

Ann

ual E

lecy

3, 0-

12 Fan 1140 RPM 14 Fan 540 RPM 12 Fan Bohn EC $-

Annual Electricity Consumption Electricity Cost


Smart Defrost Kit

• Up To 30 – 40% Reduction in Number of Typical DefrostsNumber of Typical Defrosts

• Unnecessary Defrosts are SkippedSkipped

• Decreases Energy Costd• 3rd Party Validation


EC Motor Retrofit Kits for Evaporators

• Specifically Designed for Evaporator ApplicationsEvaporator Applications

• High Efficiency (up to 85%)D i R l t• Drop-in Replacements

• UL RecognizedShaded

PolePSC

(Permanent Split Capacitor)

EC (Electronically Commutated,

Brushless DC)

EC Savings

Watts by Motor Type

Pole SavingsLow Profile Unit Cooler 119 Watts 86 Watts 58 Watts 33-51%

Low Velocity Evaporator 135 Watts 85 Watts 55 Watts 35-60%

Center Mount Evaporator 140 Watts 91 Watts 60 Watts 34-57%


pMedium Profile Unit Cooler N/A 305 Watts 215 Watts 30%

Product Availability: U.S. & Canada

Map LegendHeatcraft Plants & Warehouses ( 5 )Warehouses ( 5 )

Wholesale Distribution Locations ( 2,000+ )

OEM Locations ( 240+ )


Heatcraft Sales Office Locations ( 50+ )

Thank You


Documents

New Technology, Trends and Market Drivers In …...U.S. Commercial Refrigeration Market Key Facts: • 140,655 Convenience Stores1 • 935,000 Restaurant / Food Service Locations2