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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
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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
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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
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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
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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
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7. Presยทsure (presh-er)
noun
a condition of distress; oppression; affliction
a compelling influence; constraining force
demands requiring immediate attention; urgency
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8. Pressure: Our Clientโs 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
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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?
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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.
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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 โBaselineโ BE Growth
existing buildings
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12. An Example: Technical Solutions
โข ~1,900 energy efficiency
projects in US
โข 800 active performance
contracts today
โข $4 billion in guarantees
โข In FY2008 issuing less than
$3M in shortfall payments
across our entire portfolio
โข Now also focusing on
Clinton Climate Initiative http://www.johnsoncontrols.com/publish/us/en/sustainability
Projects /environmental_stewardship.html
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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
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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
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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
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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
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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
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18. A Different View
Our Milwaukee
Headquarters
(and the CO2 it
puts out in a
year)
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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
โBranch of the Futureโ space redesign
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20. Efficiency Now?
Do you know your organizationโs energy and
carbon footprint?
Would you rather find out on your terms,
or on someone elseโs?
What other actions can you take that relieve
pressure and are fast, cheap, proven, and easy
on the planet?
Can we help?
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