Houston Methodist Account Plan Last Updated August 2016

Houston Methodist Account Plan Last Updated: August 2016 © Blue Pillar 2016

Table of Contents • Account Plan Summary – Customer Background/Information • Account Plan Summary – Asset Map, Houston Methodist Medical Center • Account Plan Summary – Research / Key Messages • Account Map – Organizational Structure • Account Plan Summary – Key Initiatives & Goals • Account Plan Summary – Functions, Systems & Processes • Account Plan Summary – Internal Process Approvals • What We Have Heard (Discovery) • Blue Pillar SWOT Analysis • Current Opportunity Detail (Open in Salesforce) • MEDDPICC – Houston Methodist, Pearland • MEDDPICC – Houston Methodist, Annex • MEDDPICC – Houston Methodist, Kirby • Past Opportunity Detail (Closed/Won in Salesforce) 2 © Blue Pillar 2016 Return to Table of Contents

Account Plan Summary – Customer Background/Information 3 • Houston Methodist, a not-for-profit healthcare organization, is in charge of 7 hospitals (totaling 1931 operating beds), along with 137 various Houstonarea care centers and emergency sites, and a total of 10 international sites across the globe. • Houston Methodist’s Mission: “Our mission is to provide high quality, costeffective health care that delivers the best value to the people we serve in a spiritual environment of caring in association with internationally recognized teaching and research. ” • Houston Methodist’s Sustainability Program aims to reduce energy consumption and its associated carbon footprint by at least 10% by the end of 2016. • On August 2, 2016, U. S. News & World Report placed Houston Methodist Medical Center on its Honor Roll as one of the nation’s top 20 hospitals, and was also ranked the No. 1 hospital in Texas for the fifth consecutive year. • BP Connected Assets with Houston Methodist (115 total): 81 ATSs, 12 Generators, and 22 Meters © Blue Pillar 2016 Return to Table of Contents

Account Plan Summary – Asset Map, Houston Methodist Medical Center • Houston Methodist – Medical Center 115 assets connected as of 2016: • 12 Generators • • • Detroit (5) Cummins (4) CMM (3) • 81 ATSs • • Zenith (33) ASCO (46) GE (1) N/A (1) • 22 meters • Deployment Timeline: • 2010: Dunn Tower & Main Building • 2012: Neurosensory / Jones Tower & Central Plant • 2013: Fondren / Brown / Alkek • 2014: West Pavilion • 2016: Research Institute, Outpatient Center & North Tower 4 © Blue Pillar 2016 Return to Table of Contents

Account Plan Summary – Research / Key Messages Blue Pillar Customer Timeline • Houston Methodist Hospital opened its doors in 1919 • In 1951, Houston Methodist Hospital moved to the Texas Medical Center Founding & • In 1968, Houston Methodist Hospital successfully completed one of the world's first heart transplants Early Years • Houston Methodist runs 7 hospitals, which includes 1931 operating beds for service, along with 137 various other Houston-area Operation Today care centers and emergency sites, and a total of 10 international sites across the globe • Houston Methodist Medical Center ranked #1 hospital in Texas as of August 2016, for the fifth consecutive year • 10 International Affiliates: Riyadh, Saudi Arabia; Dubai, United Arab Emirates; Lima, Peru; Guayaquil, Ecuador; Guadalajara, Future Expansion 5 Mexico; Centro Medico ABC, Mexico; Guatemala City, Guatemala; Tegucigalpa, Honduras; Managua, Nicaragua; TEC Salud, Monterrey, Mexico • Expand Houston Footprint (ED’s, OPC’s, Specialty Sites, etc. ) as the medical industry trends towards more specialized care sites • Connect new sites as Houston Methodist continues new acquisitions across Texas, the United States, and around the globe © Blue Pillar 2016 Return to Table of Contents

Account Map – Organizational Structure Hospital Officers Sid Sanders SVP, Campus Master Planning, Capital Construction, Facility Council, and Real Estate John Cook Director of Facilities, Houston Medical Center James Law Systems Director Mike Durham Lead Electrician, BP Super User John White Electrician Doris Alford IT Coordinator Richard Steele CUP Manager Henry Maniego Director of Facilities, West Hospital Tomas De. Campo Manager of Facilities 6 © Blue Pillar 2016 Return to Table of Contents Bruce Flaniken Manager of Engineering, Community Hospitals Kevin Edwards Blue Pillar Project Manager, Design & Construction The Woodlands Hospital Willowbrook Hospital Houston Methodist Hospital St. John Hospital San Jacinto Sugarland Hospital

Account Plan Summary – Key Initiatives & Goals • DNV GL Compliance efforts – – • ISO 9001 Designation – – • – 1 -100 ENERGY STAR scoring system ranks the survey hospital’s energy usage and management against the national average The scoring system is being adopted by nearly 5, 000 hospitals and medical organizations across the U. S. as of January, 2015 CUP Optimization with Utility – 7 Specifies requirements for a quality management system within any organization The standards are based on various principles such as a strong customer focus, motivation and implication of top management, a process approach and continual improvement Energy Star Score Requirements – • DNV GL has integrated CMS Conditions of Participation with the ISO 9001 Quality Management Program in order to more efficiently and fully accredit hospitals and medical organizations Survey teams return annually to hospitals, rather than the previous three-year rotation industry norm, to make reviews and visits less stressful and more routine © Blue Pillar 2016 Center Point Return to Table of Contents

Account Plan Summary – Functions, Systems & Processes Current IT Systems Overview • Houston Methodist runs two separate main servers for the Aurora Software: an application server called HHVAPPBLPP 01 and a separate SQL database server called HHVDBSQLP 08 • Any type of IT assistance begins with an email to the Methodist Help Desk to initiate a ticket • Any type of server assistance or software upgrade runs through Doris Alford, an analyst who coordinates a response or schedules time with the appropriate group in order to access their SQL server • Doris Alford IT Application Analyst 1 832 -667 -5528 dalford@houstonmethodist. org • Houston Methodist was chosen as a beta site and first place to see the new UI release of Avise 4. X back in March 2015 • John White has provided feedback on the software and suggestions for improvements in the future 8 © Blue Pillar 2016 Return to Table of Contents

Account Plan Summary – Internal Process Approvals Facility Management Services Users Requesters Mike Durham Lead Electrician & BP Super User Facility Management Services John White Electrician James Law Systems Director Richard Steele CUP Manager Directors Filters & Submitters John Cook Director of Facilities, Houston Medical Center Bruce Flaniken Manager of Engineering June – September October – November Finance Committee Financial Approval Finance Review Submitted Budgets Approve Budgets November – December Sid Sanders - SVP Final Approval Executive Signs Off on All Blue Pillar Proposals Facility Management Services/Finance Design & Construction 9 © Blue Pillar 2016 decisions November – December Manages all HM Facilities and Real Estate Directors/Finance Committee Prioritization of Proposals John Cook Director of Facilities, Houston Medical Center Bruce Flaniken Manager of Engineering Kevin Edwards - BP Project Manager Execution Orders Created Return to Table of Contents Deployment Timelines Created December – January Q 1 – Q 3

What We Have Heard (Discovery) • August 3, 2016: – “Community hospital directors are ‘partly’ excited about Blue Pillar, and definitely have taken the lead over Schneider with Ener. NOC still nosing around but not really a factor. ” – Bruce Flaniken, Manager of Engineering – “Still trying to hire an energy manager, but the process is ongoing. ” – Bruce Flaniken, Manager of Engineering – “Bruce does not have a budget he controls. He may have influence within HM, but does not seem to be exerting any. We (Blue Pillar) may be better off going around or above Bruce in the future. ” – Paul Schuler, VP of Customer Management, Blue Pillar – In reference to Memorial Herrmann energy award recognition, “We see what they win awards for, and we are doing a lot of the same things and even better, but we have nothing to measure our success and achievements… we need Blue Pillar!” – Mike Durham, Lead Electrician; Henry Maniego, Director of Facilities, West Hospital; Tomas De. Ocampo, Manager of Facilities, West Hospital • August 4, 2016: – “NRG and Houston Methodist had a surprise visit from the EPA regarding generator usage for DR. Found out that the EPA fine is $2000/minute for overage or disallowed generator participation in DR. ” – John Frank, Bus Dev, NRG 10 © Blue Pillar 2016 Return to Table of Contents

Blue Pillar SWOT Analysis Strengths Weakness • Incumbent customer • Not a strong, centralized management approach • 7 -year history • Relationship with Sid Sanders • Referenceable • Medium pace of expansion • High-profile, internationally recognized facility • HM as a local healthcare system • In a recession-proof industry • BP status is important but not essential currently Opportunities Threats • • Expansion to 137 specialty facilities and 10 international sites New energy manager coming onboard • Competition from Schneider and Ener. Noc • Centralized energy management approach being • Break-fix diversion of capital adopted • John Cook retiring in two years Interesting case and use studies to aid marketing with future customers © Blue Pillar 2016 threat to the industry • • 11 Healthcare reimbursement and legislation as a Return to Table of Contents

Current Opportunity Detail (Open in Salesforce) Link to Houston Methodist Opportunities Page in Salesforce Opportunity Name Owner Stage Amount Close Date HM 2016 ATS Replacement Paul Schuler 3 – Proposal $37, 386. 00 10/21/2016 Houston Methodist – Houston, TX – Pearland Paul Schuler 4 – Conversion $49, 670. 00 10/14/2016 Houston Methodist – Houston, TX – Annex Paul Schuler 4 – Conversion $27, 974. 00 10/14/2016 Houston Methodist – Houston, TX – Kirby Paul Schuler 4 – Conversion $49, 670. 00 10/14/2016 Houston Methodist – North Tower Expansion Paul Schuler 5 – Close $186, 802. 00 10/14/2016 Houston Methodist – ASCO – Houston, TX – OPC Building Paul Schuler 5 – Close $164, 291. 00 8/26/2016 Houston Methodist Neurosensory FP Paul Schuler 5 – Close $8, 300. 00 8/26/2016 Houston Methodist – Houston, TX – OPC Building – Meter Add Paul Schuler 3 – Proposal $5, 000. 00 8/26/2016 Houston Methodist – Houston, TX – Research Building (RIB) – Meter Add Paul Schuler 3 – Proposal $5, 000. 00 8/26/2016 Houston Methodist – ASCO – Houston, TX – Research Building (RIB) Paul Schuler 5 – Close $106, 397. 00 8/26/2016 Houston Methodist System Metering Mark Lundborg 5 – Close $200, 000. 00 8/25/2016 12 © Blue Pillar 2016 Return to Table of Contents

MEDDPICC – Houston Methodist, Pearland Opportunity Metrics Economic Buyer Decision Process Decision Criteria Paper Process Identify Pain Champion Competition 13 © Blue Pillar 2016 Houston Methodist – Houston, TX – Pearland • Bring emergency power system and utility data from remote location into their Blue Pillar system currently utilized at the Medical Center campus • John Cook • Proposal requested by users on site at the Medical Center. Approval gained by director and finance committee. Allocation of budget funds expected upon delivery of revised proposal • Expansion of current Blue Pillar system of which they are very satisfied customers • A revised proposal has been requested to include utility meters, once delivered it will be forwarded to legal where professional service agreement will be drafted. Expected timeframe, 3 weeks (from 8/19/2016) • No visibility into critical assets of a remote site and generator testing as a manual process • John White (lead electrician) • • • Schneider Ener. Noc ASCO Return to Table of Contents

MEDDPICC – Houston Methodist, Annex Opportunity Metrics Economic Buyer Decision Process Decision Criteria Paper Process Identify Pain Champion Competition 14 © Blue Pillar 2016 Houston Methodist – Houston, TX – Annex • Bring emergency power system and utility data from remote location into their Blue Pillar system currently utilized at the Medical Center campus • John Cook • Proposal requested by users on site at the Medical Center. Approval gained by director and finance committee. Allocation of budget funds expected upon delivery of revised proposal • Expansion of current Blue Pillar system of which they are very satisfied customers • A revised proposal has been requested to include utility meters, once delivered it will be forwarded to legal where professional service agreement will be drafted. Expected timeframe, 3 weeks (from 8/19/2016) • No visibility into critical assets of a remote site and generator testing as a manual process • John White (lead electrician) • • • Schneider Ener. Noc ASCO Return to Table of Contents

MEDDPICC – Houston Methodist, Kirby Opportunity Metrics Economic Buyer Decision Process Decision Criteria Paper Process Identify Pain Champion Competition 15 © Blue Pillar 2016 Houston Methodist – Houston, TX – Kirby • Bring emergency power system and utility data from remote location into their Blue Pillar system currently utilized at the Medical Center campus • John Cook • Proposal requested by users on site at the Medical Center. Approval gained by director and finance committee. Allocation of budget funds expected upon delivery of revised proposal • Expansion of current Blue Pillar system of which they are very satisfied customers • A revised proposal has been requested to include utility meters, once delivered it will be forwarded to legal where professional service agreement will be drafted. Expected timeframe, 3 weeks (from 8/19/2016) • No visibility into critical assets of a remote site and generator testing as a manual process • John White (lead electrician) • • • Schneider Ener. Noc ASCO Return to Table of Contents

Past Opportunity Detail (Closed/Won in Salesforce) Link to Houston Methodist Opportunities Page in Salesforce 16 Opportunity Name Owner Stage Amount Close Date GE Multinet Replacement Paul Schuler Closed Won $1, 255. 71 8/3/2016 Houston Methodist – Houston, TX – North Tower Meter Add Paul Schuler Closed Project Cancelled $7, 500. 00 4/13/2016 Houston Methodist Dunn Generator Paul Schuler Closed Won $7, 704. 00 11/12/2015 HM ATS C 1 B Paul Schuler Closed Won $3, 995. 00 11/12/2015 Houston Methodist ATS LS 2 Paul Schuler Closed Won $4, 123. 00 11/12/2015 Houston Methodist ATS C 1 A Paul Schuler Closed Won $3, 430. 00 11/6/2015 Houston Methodist ATS C 2 A & C 2 B Paul Schuler Closed Won $9, 498. 00 11/6/2015 Houston Methodist Dunn ATS C 1 B Replacement Paul Schuler Closed Won $3, 995. 00 10/29/2015 Houston Methodist – Fondren 8 – Elevator ATS-EDP Paul Schuler Closed Won $2, 905. 00 10/8/2015 Houston Methodist Main FP 1 Sarah Kaser Closed Not Qualified N/A 7/20/2015 Houston Methodist – Dunn Meter Integration Paul Schuler Closed Won $5, 500. 00 2/22/2015 © Blue Pillar 2016 Return to Table of Contents

Appendix 17 © Blue Pillar 2016 Return to Table of Contents

Account Map – Organizational Structure – Officers of the Board of Directors Marc L. Boom President & CEO Erwing Werlein, Jr. Chair 18 John F. Bookout Senior Chair © Blue Pillar 2016 Gregory V. Nelson Vice Chair Carlton E. Baucum Vice Chair Return to Table of Contents Elizabeth Blanton Secretary Robert K. Moses, Jr. Assistant Secretary Joseph C. “Rusty” Walter III Treasurer Mary A. Daffin Assistant Treasurer BOARD OF DIRECTORS HOUSTON METHODIST BOARD OF DIRECTORS LIFE MEMBERS

Account Map – Organizational Structure –Board of Directors Marc L. Boom President & CEO Emily A. Crosswell 19 Martha S. De. Busk Gary W. Edwards © Blue Pillar 2016 Juliet S. Ellis Ron A. Gentry, MD Mark A. Houser Return to Table of Contents Rev. Kenneth R. Levingston Vidal G. Martinez W. Benjamin Moreland Thomas J. Pace III, DMin Joe Bob Perkins Bishop Janice Riggle Huie C. Richard Stasney, MD President of the Medical Staff Spencer Tillman David M. Underwood, Jr. Todd Trask, MD President. Elect of the Medical Staff Rev. B. T. Williamson

Account Map – Organizational Structure – Houston Methodist Board of Directors Life Members Marc L. Boom President & CEO Ernest H. Cockrell 20 © Blue Pillar 2016 James C. Dishman Return to Table of Contents Charles W. Duncan, Jr. Connie M. Dyer Issac H. Kempner III Sandra Gayle Wright, RN, Ed. D