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How does it self-fund? <br /> Performance Contracting uses energy, operational savings and avoided capital <br /> expenditures to fund repayment of capital for building/infrastructure needs. <br /> Budget Neutral Approach <br /> 1,1 Energy Annual <br /> Capital Avoidance Savings* Capital <br /> Current Operational Repayment** <br /> • <br /> Operational <br /> Costs New I: Operational <br /> Costs after <br /> Operational Capital <br /> Costs Repayment <br /> *Excess savings are retained by the client. Shortfall in energy savings made up by Johnson Controls. <br /> ** Performance Guarantee ensures that savings will at least be sufficient to repay capital for term. <br /> 8 Johnson Controls, Inc., Confidential& Proprietary Johnson 4 <br /> Controls <br />