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UTC Climate, Controls & Security President & CEO Geraud Darnis
“Buildings will be ecosystems themselves and rest in balance with the natural environment. They will evolve from a drain on our resources, to a regeneration of our resources."

March 19, 2012

Carrier Global Engineering Conference Remarks of UTC Climate, Controls & Security President & CEO Geraud Darnis as Prepared

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Twenty years ago, we started this conference with a powerful but simple premise: If we gathered the world’s best HVAC engineering and building leaders, could we create a dialogue about the future of our industry and the future of buildings? With more than 6,000 such great people attending 11 Carrier engineering conferences over the past two decades – the answer is clearly: yes, we can.

Today, we are taking this dialogue to a new level with 900 global thought leaders – that’s every one of you gathered in this room – coming from 20 countries and 40 U.S. states – setting a new record for attendance at this event. I want to thank you for joining us this morning. Our conversation this year will challenge us to rethink, restore, regenerate. What does this mean?

Let’s start with rethink. Can the same technologies we have used for decades meet contemporary demands? Our industry was founded, and continues to operate, with essentially the same vapor compression cycle…and with good reason… it has been very effective and affordable for end users. But is there a better way? We must always challenge current paradigms, if for nothing else than to keep ourselves honest until engineering curiosity meets technical reality. Refrigerants offer a good example. Over the past 16 years, we’ve shifted from CFCs, to HCFCs, to HFCs, and now even natural refrigerants - where they make sense. Each time, we’ve challenged ourselves to rethink our approach and to rethink the best, most energy efficient way to safely deliver capacity and cooling.

Next we have restore. In its literal meaning, we must ask if we can find ways to upgrade and restore our existing buildings, which we believe remain the largest opportunity for energy efficiency gains. We’ll hear great speakers share ideas on that.

In the context of people, restore has an equally important meaning – can we avoid fatigue in the green building movement? Can we restore energy in our thinking?

We face growing environmental pressures with climate change and ozone protection. In the last few weeks, Europe dispatched militaries to rescue people from record snow and cold temperatures. At the exact same time, many people in places across North America wondered, in short sleeves, if winter forgot about them. The news media has well documented our weather extremes, and as a result, people talk about it - more and more. This creates impressions and increases the conversation about the human effect on our global climate.

We see relentless regulatory interest in energy efficiency as we manage the largest migration of mankind through urbanization and the development of new economies. I’ll point to one forecast that underscores this impact. Our friends here today from Saudi Arabia will tell us about recent studies that suggest in 2030, Saudi Arabia will internally consume more oil than it will export to the rest of us – this is due to their rapid development with today’s practices. Think about that. If the world becomes more oil-efficient, and Saudi Arabia develops more sustainably, the outcome can be much different.

And amidst all of this, building owners are looking for clarity in what sometimes looks like chaos. Not only must we restore energy in our thinking, we must restore trust in ourselves that we can innovate with new technologies and new value propositions for the marketplace.

Then we come to regenerate. Buildings of the future will leapfrog the zero impact stage to positively contribute to the environment. Instead of consuming power, buildings will supply power. Instead of shedding water, buildings will manage and filter rain water back to the water table. Buildings will be ecosystems themselves and rest in balance with the natural environment. They will evolve from a drain on our resources, to a regeneration of our resources.

We don’t have all the answers today. But we have the brainpower in this room to advance new thinking and to chart our path. It’s not easy to change the world, but Carrier is living proof that it can be done.

110 years ago, a man named Willis Carrier did just that. He changed the world – although that’s not what he set out to do. Instead he innovated to solve a productivity problem caused by humidity. But in so doing, he revolutionized commerce and paved the way for new industries and more innovations – in that sense, perhaps Willis Carrier’s lasting contribution is the regeneration enabled by his invention.

Just imagine a world without air conditioning. For starters, most of us would be out of a job, and we’d be sitting today in the desert instead of this nice climate controlled room. But for society, we would miss the enormous productivity gains brought by Carrier’s invention. Las Vegas could not exist. Singapore could not be Singapore. Dubai could not be Dubai. We would miss clean-room capabilities that make our computers, our iPhones® and our BlackBerrys® possible – and for that matter, the data centers that require cooling to power the internet. We would miss medical miracles every day in hospital clean-air surgical rooms. We would literally watch history fade away as art and historical artifacts could not be preserved. And we would be uncomfortable in our homes.

This is the world avoided because a single man had a new idea and dared to dream big. We must have the same courage.

Today, Carrier is stronger than ever…and we have many exciting developments.

First, we’ve combined the organization, resources and footprint of Carrier and our sister company, UTC Fire & Security, into a single entity called UTC Climate, Controls & Security. This means we can serve you to make buildings more efficient, comfortable, healthy and more safe and secure, all around the world.

Our new company is $19 billion strong in revenues with 66,000 employees. In addition to HVAC and refrigeration that you know us for, we’ve added a leading portfolio of fire and security solutions, such as fire detection and suppression, intrusion detection, building access control and video surveillance – with brands like: Kidde, Chubb, Edwards, Fenwal, Det-Tronics, Interlogix and Marioff.

We’re also increasing our focus on building automation. We started with Automated Logic in 2004. Already we’re at $1 billion in controls revenue, and we’re only just starting outside of the U.S. with the addition of brands like Lenel and Onity.

Wherever you are in the world, know you can turn to us for solutions in air conditioning, building automation controls, fire protection and security.

From a product development standpoint, our pipeline is robust. We are in the midst of a $100 million investment in new commercial products, including a new generation of chillers that provides higher efficiency, more capacity and configured for refrigerants of the future.

To support these products, we’ve taken the best and brightest application engineers and formed our AdvanTE3C Solutions Center. We’re working with customers around the world to apply today’s technology in an innovative fashion to realize even greater energy and environmental gains. The AdvanTE3C Solutions Center can tackle the toughest challenges, whether it be a data center in the Middle East, a river-source geothermal installation in China or a net zero energy building in Europe. You’ll hear more about AdvanTE3C over the next two days.

I hope you see that we have the momentum in our company to match the promise of this conference.

At gatherings like these, I have said that we can change the world, building by building.

Many of you are doing it already. Imagine if all of us did it each day.

Who better to change buildings, and re-shape skylines, than those in this room? We have the expertise. We have the tools.

You will hear from an inspiring line-up of great speakers and experts in their fields on how we can rethink, restore and regenerate. They will put the future in focus for you. We will learn about the role of people in greening the bottom line, new thinking about the instinctive bond between humans and nature, and the lessons from iconic projects such as Tapei 101, one of the world’s tallest buildings -- and much, much more.

I am grateful that you have joined us, and I am confident that the experience will be rewarding for all of us. This moment cannot pass without making a commitment to ourselves – to all 900 strong in this room today.

Together we CAN change the world, building by building…so let’s get going!

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