Michael C. Parker Vice President Marketing & Strategic Planning
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1 Michael C. Parker Vice President Marketing & Strategic Planning A. O. Smith Water Products Company
2 A.O. Smith Corporation Water Heaters and Electric Motors 2009 Sales: $2.1B Water Products Division 2009 Sales: $1.4B Water Heater Market Leader in U.S. & Canada Residential & Commercial Plumbing Wholesale & Retail Strong Position in China $150M Since 1996 Small operation in Europe Entering India
3 A. O. Smith is a Global Company Renton, Washington Juarez, Mexico Fergus, Ontario Stratford, Ontario Milwaukee, Wisconsin Charlotte, North Carolina McBee, South Carolina Florence, Kentucky Ashland City, Tennessee Johnson City, Tennessee Franklin and Cookeville, Tennessee Veldhoven, The Netherlands India Nanjing, China
4 Global Innovation China Balcony Mounted Solar Water Heater Green Product of the Year Wall Hung Heat Pump India
5 High Efficiency Commercial Industry Leading Efficiency 96% Thermal Efficiency Full line offering Advanced controls
6 A. O. Smith Vertex Two Models: Vertex 75 & Vertex % & 96% Thermal Efficiency Condensing Superior performance Continuous hot water Simultaneous showers Residential & Light Commercial Based on Cyclone core competencies Developed with the Department of Energy
7 Water Heater Efficiency Ratings The Energy Policy and Conservation Act Product Classes for Residential Water Heater Type Gas-Fired Storage Type Nominal input of 75,000 Btu/h or less; rated storage volume from 20 to 100 gallons Electric Storage Type Nominal input of 12 kw (40,956 Btu/h) or less; rated storage volume from 20 to 120 gallons Gas-Fired Instantaneous Nominal input of over 50, Btu/h up to 200, Btu/h; rated storage volume of 2 gallons or less
8 Energy Star 2) ENERGY STAR Residential Water Heater Product Classes Storage, Gas-fired A nominal input of 75,000 BTU/hour or less and a rated storage volume from 20 to 100 gallons. Heat Pump (Electric) A maximum current rating of 24 amperes, voltage no greater than 250 volts, and a transfer of thermal energy from one temperature to a higher temperature level for the purpose of heating water. Unit must have integrated or drop-in configuration. Tankless, Gas-fired A nominal input of over 50,000 BTU/hour up to 200,000 BTU/hour and a rated storage volume of 2 gallons or less. Solar, Gas or Electric OG-300 rating from the SRCC.
9 Energy Star
10
11 Join the HIGH EFFICIENCY REVOLUTION
12 The Best Selection of HIGH EFFICIENCY Voltex TM Hybrid Electric Effex TM High NEXT Heat Pump Efficiency Gas Hybrid TM Gas Cirrex TM Solar
13 Effex TM High Efficiency Gas Water Heater
14 Effex TM High Efficiency Gas: Features High Efficiency.70 EF: the most efficient and advanced standard vent gas water heater available Base-tier gas products are.58 EF, so Effex can generate significant savings on operation ENERGY STAR qualified The first standard vent product on the market that will exceed the more stringent second phase of ENERGY STAR (.67 EF criteria) Installs with the same gas, water and venting connections as a standard atmospheric model Easy installation; the best option for energy efficiency and savings without the installation challenges of other high efficiency options
15 Effex TM High Efficiency Gas: Features Advanced technology includes a patented air intake system and LCD user interface control The intake system turbo-charges the combustion process to produce the highest efficiency possible in a standard atmospheric model With temperature adjustment and diagnostics, the advanced controls make system operation easy Electronic ignition No standing pilot removes many nuisance issues associated with standard vent products
16 Effex TM High Efficiency: How It Works The high efficiency performance is possible thanks to its patented air intake system. Air is pushed into the combustion chamber, creating a pressurized environment. Due to this turbo charge effect, tighter baffling is incorporated in the flue design to slow down the hot gas as it travels through the water heater. The result, more heat transferred to the water and less energy wasted. Key features include: 1 Advanced electronic control and easy-to-read LCD screen 2 3 Tighter baffling Patented air intake
17 Effex TM High Efficiency: Target Audience The Effex is designed for the homeowner who is looking for energy efficiency upgrades and savings, but without the major replacement expense associated with options such as tankless or condensing models. Save money, gain efficiency and take advantage of the latest technology
18 Effex TM High Efficiency Gas: Savings With high efficiency comes big savings The Effex can translate into significant savings for the homeowner with its.70 EF. Compared to an average.53 EF of a ten year old product, the Effex can generate savings of up to 25% of annual operating cost. Easy and cheaper installation with the same gas and water connections while using the existing vent.
19 Effex TM High Efficiency Gas: Payback Payback Scenario MSRP $959 SEEARP (State ENERGY STAR Rebate: 25%) -$240 Utility Rebate -$50 Standard 40 gallon gas cost -$365 Upgrade cost delta $304 Annual cost of operation savings $85 Payback 3.6 yrs Total product life savings $1,020 Assumptions: State funding remains for ENERGY STAR products Utility rebates are available Cost of operation vs. 10 year old.53ef gas model Product lifespan of 12 years
20 NEXT Hybrid TM High Efficiency Gas Water Heater
21 NEXT Hybrid TM Gas: Features Performs like a tankless and can also handle high hot water demand periods Built for the way people ACTUALLY live and use hot water Takes the best attributes of tankless and storage technologies and provides the best of fboth worlds 90% thermal efficiency (condensing) Saves money with better efficiency than S y y standard tankless (82%) and conventional storage models (78%)
22 NEXT Hybrid TM Gas: Features Performance enhancements eliminates limitations associated with tankless models, such as: Minimum and maximum flow rates Pressure drop Water waste Sudden interruptions in hot water delivery (cold water sandwiches) New technology answers the need for hot water demand, shower after shower Tax credit eligible Federal Tax Credit of up to $1,500 May also be eligible for state and local utility company incentives
23 NEXT Hybrid TM Gas: Features Similar footprint to conventional models; same water and gas connections Simple installation and cheaper installation cost compared to tankless units Interactive controls with multiple lifestyle modes, plus temperature display, error code notice, and more On/Off Button Error Code When a fault is detected an error code flashes Temperature Display Multiple Lifestyle Modes Energy Saver, Vacation and dboost modes Thermostat User-friendly integrated temperature controller Burner in operation Fault Indicator
24 NEXT Hybrid TM Gas: How It Works Conventional units perform well with simultaneous demands but may run out of hot water during long draws Tankless performs well with long draws at steady flow but struggle with simultaneous demand Combining i the advantages of both technologies, NEXT Hybrid is the best of both worlds 1 The NEXT Hybrid features 1 a patented heat transfer process that utilizes 2 a secondary heat exchanger to capture the heated flue gas from the 3 tankless unit and route it back through 4 a buffer tank to extract additional heat
25 NEXT Hybrid TM Gas: Target Audience NEXT Hybrid is the best choice for consumers looking to upgrade performance and efficiency. It is specifically designed for customers looking to proactively replace their current natural gas water heater. This customer is most likely considering tankless. This appliance will appeal to those interested in new technology as well as those interested in being eco-conscious.
26 NEXT Hybrid TM Gas: Savings Let me introduce you to the future of hot water. Here it is: NEXT Hybrid from A. O. Smith. This water heater is more efficient than tankless and qualifies for Federal Tax Credit of up to $1, Ed Begley, Jr., Actor, Environmentalist and A. O. Smith product owner
27 Voltex TM Hybrid Electric Water Heater
28 Voltex TM Hybrid Electric: Features Hybrid electric design: Integrates heat pump technology Conserves energy; less than half the cost to operate compared dto standard delectric ti model 2.3 EF: Standard electric units are.93 to.95 EF The only type of electric water heater that is ENERGY STAR qualified 80 gallon capacity Extra capacity to store cheap hot water created Extra capacity to store cheap hot water created from the heat pump technology
29 Cirrex TM Solar Water Heating System
30 Cirrex TM Solar: Features Ultimate solar thermal solution High efficiency ratings, long life, and a carbon footprint-reducing design Complete system: tank (80 or 120 gallon), single or double wall, solar collectors (two or three), pump station, and mounting hardware Proudly partnered with Chromagen to provide solar thermal collectors Integrated t control station ti
31 Help needed Promote High Efficiency Water Heaters Including (but not limited to) Energy Star Water Heaters Incentive programs include New Category products A. O. Smith Next Hybrid Gas Water Heater A. O. Smith Vertex Condensing Gas Water Heaters Include A. O. Smith Product Manager or Local Reps in Webinars or Contractor Meetings Tell us how we can help
32 Launch Dates EFFEX High Efficiency Gas Order date June 28* Delivery date July 12* NEXT Hybrid Gas Order date June 28* Delivery date July 12* VOLTEX Hybrid Electric Available now CIRREX Solar Package Available now * Delayed by Nashville Flood
33 Contact Information EFFEX High Efficiency Gas Cliff Deidiker NEXT Hybrid Gas Sandy DeWald VOLTEX Hybrid Electric Bill Hewa CIRREX Solar Package Paul Stewart t t
34 Questions?
COMPANY PR P OFI F LE L
COMPANY PROFILE About A. O. Smith Corp. A. O. Smith Corporation is one of the world's leading manufacturers of residential and commercial water heaters and boilers, offering a comprehensive product line
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