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September 25, 2008

CanaccordAdams Virtual Roundtable:

A Perspective on
Energy Efficiency
Marc Andraca, Director, Building Efficiency
Glen Ponczak, Director, Investor Relations
Three world-class growth businesses



Building Efficiency                     2007 Sales: $34.6B
    Creating quality indoor                   Power
                                                12%
    environments that are energy                        Building
                                                         37%
    efficient, comfortable and safe       Automotive
                                             51%
Power Solutions
    Providing dependable starting
    power for cars today and the
                                       2007 Earnings: $1.3 B
    energy efficient hybrid vehicles
    of tomorrow
                                             Power
Automotive Experience                          27%
                                                        Building
                                                         45%
    Delivering world-class                 Automotive
                                              28%
    technologies that improve the
    driving experience and are
    environmentally friendly



2
Automotive Experience
Creating more comfortable, safe and sustainable vehicle interiors

                                                                    2007 sales:
    Global provider of seating, overhead
                                                                    $17.6 Billion
    systems, door and cockpit systems,
    integrated electronics
                                                                             Asia
    Balanced business structure
                                                                              8%
    โ€“ Product portfolio, customer, geography

                                                                Europe          North
    Supplying over 30 million cars per year
                                                                 50%           America
    250 locations in 30 countries                                               42%
    โ€“ 1/3 of all manufacturing in low-cost
      countries

Delivering interior systems that




                                                                                 ics
provide the best...




                                                                                   n
                                                                               ctro
                                                                            Ele
    Craftsmanship
                                                                Interiors
    Innovation
                                                                             Seating
    Value
    Vehicle differentiation and brand
    reinforcement


3
Power Solutions
Providing dependable starting power for cars today and the energy efficient hybrid vehicles of tomorrow


                                                                                   2007 sales:
     Largest global provider of lead acid batteries
                                                                                   $4.3 Billion
     โ€“ Approximately 1/3 of all batteries produced globally

     World-class customer base in stable aftermarket
                                                                                                 22%
                                                                                            Original
     Original Equipment (OE) batteries sold to every major                                  Equipment
     automaker in the world
     Leading independent provider of hybrid automotive                            Aftermarket
                                                                                  78%
     battery systems


    Johnson Controls
    produced 121 million                                                        33%
    lead acid batteries                                                         Europe

    globally in 2007                                                                            Americas
                                                                                                   64%
                                                                                3%
                                                                         Asia




4
Building Efficiency
Creating quality indoor environments that are energy efficient, comfortable and safe

                                                                          2007 Sales:
Non-residential buildings                                                $12.7 Billion
    Control systems, HVAC equipment,
    services, solutions
    Improved comfort                                                        Non- Residential
                                                                         residential
    โ€“ Temperatures, humidity, air quality, safety
                                                                            92%
    Reduced costs
    โ€“ Energy, operations, maintenance,
      equipment life
                                                                              Asia
                                                                              17%
                                                                                       North
                                                                                       America
Residential buildings                                                     Europe
                                                                                       54%
                                                                          29%
    Home air conditioning and
    heating




5
Annual analyst day: October 14, 2008



Hudson Theater, New York
8 a.m. โ€“ 1 p.m.
     Review of strategies
     Market outlook
     2009 guidance


RSVP to Lynn.M.Kussrow@jci.com
or
414-524-2672




6
Presยทsure (presh-er)

noun
    a condition of distress; oppression; affliction
    a compelling influence; constraining force
    demands requiring immediate attention; urgency




7
Pressure: Our Clientโ€™s View

                 co
                co m m




                                                                  h
                  st od




                                                               nc
                    s u it y




                                                             u
                                                          cr
                       rg
                         e




                                                          it
                                                        ed
                                                     cr
                                     People who
                                    design, build,
                                                                 globalization
    demand for clean,
                                      own and                    anxiety
    secure, reliable energy
                                       operate
                                      buildings
                                      e            ge
                                    at
                                   m tion        tu ner
                                li                 r n at
                             r c ru p                 ov ion
                           fo s                         er  al
                          n di
                        r
                      ce e &
                     ng
                   co an
                     ch



8
Where to start?
    Strategic Energy Planning โ€“ How do I put together an overall strategic plan for energy usage in my facilities?

                     Program Management โ€“ How do I manage all the aspects of my energy program?

                                                                                           Energy           Regulatory
                                                                  Utility Bill
     Supply Side        Energy Demand
                                               Products:                                Analytics &       Compliance &
                                                                 Management:
      Advisory:          Management:
                                                                                        Optimization       Sustainability
                                                                                                          How do I track
                                                                                        How do I
    What is the best     How can I be        Which products     How can I ensure
                                                                                                          compliance with
                                                                                        monitor and
    price I can get      sure that I am      will be best for   that my utility bills
                                                                                                          regulatory
                                                                                        optimize energy
    for energy?          running my          my facility        are correct and                           requirements?
                                                                                        usage in my
                         facilities in the   needs?             paid on time?
    How can I make                                                                      facilities?       How do I design
                         most energy                                                                      my buildings to
    sure I get the                           Can I use          How can I recover
                         efficient manner                                                                 meet energy-
    most favorable                           alternative        incorrect energy
                                                                                                          related
                         possible?
    contracts with                           energy sources?    bill charges and                          certifications?
    utility              How do I build                         eliminate late fees?
                                                                                                          How can I
    companies?           employee
                                                                                                          measure my
                                                                How can I
                         awareness                                                                        carbon footprint?
    Do renewable                                                benchmark my
                         around energy
    technologies                                                                                          How can I
                                                                energy costs
                         usage?                                                                           monetize my
    make sense for                                              against my
                                                                                                          carbon credits?
    my business?         What is the best                       competitors?
                         way to finance
                         new assets?




9
The Solution: A JCI View

    Improving
energy efficiency                co
                                co mm




                                                                                h
                                  st od




                                                                             nc
                                    su ity




                                                                            ru
                                      rg




                                                                          tc
   in buildings                         e




                                                                     di
                                                                      e
                                                                   cr
                                                   People who
       is the                                     design, build,
                                                                                 globalization
                    demand for clean,
                                                    own and                      anxiety
                    secure, reliable energy
                                                     operate
 first and most                                     buildings
                                                    e            ge
                                                  at n         tu ner
                                               lim ptio          rn a t

 important way                               rc u                  ov ion
                                           fo isr                    er  al
                                          nd
                                        er &
                                     nc ge
                                   co an
                                     ch

  to relieve the
     pressure.
10
Implications for Our Business
       Energy Costs
+      Energy Independence
+      Green Movement                                          Invent New
+      Climate Change                                            Markets
+      Legislation, Regulation & Incentives          3

INCREASED MARKET DEMAND FOR:                                    Capture
                                                           Incremental Share
                                                         in Traditional Markets
Building Products                                    2
                                                              & Penetrate
    that use less energy and are
                                                               New Space
    commercially available today

Advanced Technologies
                                                              Ride the
    to manage energy within and across a portfolio   1
    of buildings                                              Energy &
                                                            Sustainability
Advisory Services                                              Driven
    to develop energy management &                          Expansion in
    sustainability strategies for
                                                             Traditional
    new and existing buildings
                                                              Markets
Technical Services & Solutions
    that raise energy performance in                       โ€˜Baselineโ€™ BE Growth
    existing buildings
11
An Example: Technical Solutions


     โ€ข ~1,900 energy efficiency
       projects in US
     โ€ข 800 active performance
       contracts today
     โ€ข $4 billion in guarantees
     โ€ข In FY2008 issuing less than
       $3M in shortfall payments
       across our entire portfolio
     โ€ข Now also focusing on
       Clinton Climate Initiative    http://www.johnsoncontrols.com/publish/us/en/sustainability
       Projects                      /environmental_stewardship.html




12
Dallas Convention Center (the strategies)

     Recommission and replace
     chillers and cooling towers
     Use free cooling
     Retrofit lights
     Upgrade building control and
     automation systems
     Conserve water
     Optimize HVAC system
     Correct power factor
     Add Solar water heating




13
Dallas Convention Center (the financials)


     Project Cost
       $16 Million

     Guaranteed Annual Savings
       Over $2 Million in Utility costs
          83% in electricity
          16.5% in gas
          0.5% in water

     Project Term
       10 year Performance Period
          October 1, 2008
          To September 30, 2018




14
Our Energy Efficiency Capabilities
TECHNOLOGY                                                                    PROJECTS
                           ENERGY EFFICIENT    ENERGY EFFICIENCY
                              EQUIPMENT           RETROFITS
                                                                    ON-SITE
                BUILDING
                                                                  RENEWABLE
               AUTOMATION
                                                                    ENERGY
                SYSTEMS

          ENERGY &                                                   DISTRIBUTED
          GHG DATA                                                  HEAT & POWER
         MANAGEMENT                                                  GENERATION


         SUSTAINABILITY                                               FACILITY
           PLANNING                                                 MANAGEMENT


                                                                    EQUIPMENT
            WORKSPACE &
                                                                   MAINTENANCE
             PORTFOLIO
                                                                     & REPAIR
            OPTIMIZATION
                                               BUILDING SYSTEMS
                            GREEN BUILDING
                                                 INSTALLATION
                           DESIGN ASSISTANCE
                                                & INTEGRATION
                            & CERTIFICATION
      ADVICE                                                                  SERVICES


 15
Walking the Talk




     Johnson Controls will reduce its U.S.
     greenhouse gas emissions per dollar of revenue
     by 30 percent from 2002 to 2012




16
Our Footprint In Context

                                                                   Average Home
                                                                     Footprint




                                         507 Footprint
                                                                                     Average Car
                                                                  11.3 metric tons    Footprint
     1,657,000 metric tons




                                       8,900 metric tons                             5 metric tons

       Source: http://www.epa.gov/cleanenergy/energy-resources/refs.html
17
A Different View


     Our Milwaukee
     Headquarters
     (and the CO2 it
     puts out in a
     year)




18
Our Actions

                $5M capex invested in 2008
            to reduce carbon intensity in US ops
Projects:
     Lighting retrofits
     HVAC optimization
     Power conditioning
     Manufacturing process improvements
     โ€œBranch of the Futureโ€ space redesign




19
Efficiency Now?

     Do you know your organizationโ€™s energy and
     carbon footprint?
     Would you rather find out on your terms,
     or on someone elseโ€™s?
     What other actions can you take that relieve
     pressure and are fast, cheap, proven, and easy
     on the planet?
     Can we help?

20

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johnson controls CanaccordAdams Virtual Roundtable: A Perspective on Energy Efficiency

  • 1. September 25, 2008 CanaccordAdams Virtual Roundtable: A Perspective on Energy Efficiency Marc Andraca, Director, Building Efficiency Glen Ponczak, Director, Investor Relations
  • 2. Three world-class growth businesses Building Efficiency 2007 Sales: $34.6B Creating quality indoor Power 12% environments that are energy Building 37% efficient, comfortable and safe Automotive 51% Power Solutions Providing dependable starting power for cars today and the 2007 Earnings: $1.3 B energy efficient hybrid vehicles of tomorrow Power Automotive Experience 27% Building 45% Delivering world-class Automotive 28% technologies that improve the driving experience and are environmentally friendly 2
  • 3. Automotive Experience Creating more comfortable, safe and sustainable vehicle interiors 2007 sales: Global provider of seating, overhead $17.6 Billion systems, door and cockpit systems, integrated electronics Asia Balanced business structure 8% โ€“ Product portfolio, customer, geography Europe North Supplying over 30 million cars per year 50% America 250 locations in 30 countries 42% โ€“ 1/3 of all manufacturing in low-cost countries Delivering interior systems that ics provide the best... n ctro Ele Craftsmanship Interiors Innovation Seating Value Vehicle differentiation and brand reinforcement 3
  • 4. Power Solutions Providing dependable starting power for cars today and the energy efficient hybrid vehicles of tomorrow 2007 sales: Largest global provider of lead acid batteries $4.3 Billion โ€“ Approximately 1/3 of all batteries produced globally World-class customer base in stable aftermarket 22% Original Original Equipment (OE) batteries sold to every major Equipment automaker in the world Leading independent provider of hybrid automotive Aftermarket 78% battery systems Johnson Controls produced 121 million 33% lead acid batteries Europe globally in 2007 Americas 64% 3% Asia 4
  • 5. Building Efficiency Creating quality indoor environments that are energy efficient, comfortable and safe 2007 Sales: Non-residential buildings $12.7 Billion Control systems, HVAC equipment, services, solutions Improved comfort Non- Residential residential โ€“ Temperatures, humidity, air quality, safety 92% Reduced costs โ€“ Energy, operations, maintenance, equipment life Asia 17% North America Residential buildings Europe 54% 29% Home air conditioning and heating 5
  • 6. Annual analyst day: October 14, 2008 Hudson Theater, New York 8 a.m. โ€“ 1 p.m. Review of strategies Market outlook 2009 guidance RSVP to Lynn.M.Kussrow@jci.com or 414-524-2672 6
  • 7. Presยทsure (presh-er) noun a condition of distress; oppression; affliction a compelling influence; constraining force demands requiring immediate attention; urgency 7
  • 8. Pressure: Our Clientโ€™s View co co m m h st od nc s u it y u cr rg e it ed cr People who design, build, globalization demand for clean, own and anxiety secure, reliable energy operate buildings e ge at m tion tu ner li r n at r c ru p ov ion fo s er al n di r ce e & ng co an ch 8
  • 9. Where to start? Strategic Energy Planning โ€“ How do I put together an overall strategic plan for energy usage in my facilities? Program Management โ€“ How do I manage all the aspects of my energy program? Energy Regulatory Utility Bill Supply Side Energy Demand Products: Analytics & Compliance & Management: Advisory: Management: Optimization Sustainability How do I track How do I What is the best How can I be Which products How can I ensure compliance with monitor and price I can get sure that I am will be best for that my utility bills regulatory optimize energy for energy? running my my facility are correct and requirements? usage in my facilities in the needs? paid on time? How can I make facilities? How do I design most energy my buildings to sure I get the Can I use How can I recover efficient manner meet energy- most favorable alternative incorrect energy related possible? contracts with energy sources? bill charges and certifications? utility How do I build eliminate late fees? How can I companies? employee measure my How can I awareness carbon footprint? Do renewable benchmark my around energy technologies How can I energy costs usage? monetize my make sense for against my carbon credits? my business? What is the best competitors? way to finance new assets? 9
  • 10. The Solution: A JCI View Improving energy efficiency co co mm h st od nc su ity ru rg tc in buildings e di e cr People who is the design, build, globalization demand for clean, own and anxiety secure, reliable energy operate first and most buildings e ge at n tu ner lim ptio rn a t important way rc u ov ion fo isr er al nd er & nc ge co an ch to relieve the pressure. 10
  • 11. Implications for Our Business Energy Costs + Energy Independence + Green Movement Invent New + Climate Change Markets + Legislation, Regulation & Incentives 3 INCREASED MARKET DEMAND FOR: Capture Incremental Share in Traditional Markets Building Products 2 & Penetrate that use less energy and are New Space commercially available today Advanced Technologies Ride the to manage energy within and across a portfolio 1 of buildings Energy & Sustainability Advisory Services Driven to develop energy management & Expansion in sustainability strategies for Traditional new and existing buildings Markets Technical Services & Solutions that raise energy performance in โ€˜Baselineโ€™ BE Growth existing buildings 11
  • 12. An Example: Technical Solutions โ€ข ~1,900 energy efficiency projects in US โ€ข 800 active performance contracts today โ€ข $4 billion in guarantees โ€ข In FY2008 issuing less than $3M in shortfall payments across our entire portfolio โ€ข Now also focusing on Clinton Climate Initiative http://www.johnsoncontrols.com/publish/us/en/sustainability Projects /environmental_stewardship.html 12
  • 13. Dallas Convention Center (the strategies) Recommission and replace chillers and cooling towers Use free cooling Retrofit lights Upgrade building control and automation systems Conserve water Optimize HVAC system Correct power factor Add Solar water heating 13
  • 14. Dallas Convention Center (the financials) Project Cost $16 Million Guaranteed Annual Savings Over $2 Million in Utility costs 83% in electricity 16.5% in gas 0.5% in water Project Term 10 year Performance Period October 1, 2008 To September 30, 2018 14
  • 15. Our Energy Efficiency Capabilities TECHNOLOGY PROJECTS ENERGY EFFICIENT ENERGY EFFICIENCY EQUIPMENT RETROFITS ON-SITE BUILDING RENEWABLE AUTOMATION ENERGY SYSTEMS ENERGY & DISTRIBUTED GHG DATA HEAT & POWER MANAGEMENT GENERATION SUSTAINABILITY FACILITY PLANNING MANAGEMENT EQUIPMENT WORKSPACE & MAINTENANCE PORTFOLIO & REPAIR OPTIMIZATION BUILDING SYSTEMS GREEN BUILDING INSTALLATION DESIGN ASSISTANCE & INTEGRATION & CERTIFICATION ADVICE SERVICES 15
  • 16. Walking the Talk Johnson Controls will reduce its U.S. greenhouse gas emissions per dollar of revenue by 30 percent from 2002 to 2012 16
  • 17. Our Footprint In Context Average Home Footprint 507 Footprint Average Car 11.3 metric tons Footprint 1,657,000 metric tons 8,900 metric tons 5 metric tons Source: http://www.epa.gov/cleanenergy/energy-resources/refs.html 17
  • 18. A Different View Our Milwaukee Headquarters (and the CO2 it puts out in a year) 18
  • 19. Our Actions $5M capex invested in 2008 to reduce carbon intensity in US ops Projects: Lighting retrofits HVAC optimization Power conditioning Manufacturing process improvements โ€œBranch of the Futureโ€ space redesign 19
  • 20. Efficiency Now? Do you know your organizationโ€™s energy and carbon footprint? Would you rather find out on your terms, or on someone elseโ€™s? What other actions can you take that relieve pressure and are fast, cheap, proven, and easy on the planet? Can we help? 20