Johnson Controls
May 12, 2011
Johnson Controls A global diversified company in the building and automotive industries
Johnson Controls is a globally diversified company in the building and automotive industries
Automotive Experience
Power Solutions
Building Efficiency
A global leader in automotive seating, overhead systems, door and instrument panels, and interior electronics.
The global leader in lead-acid starter batteries, advanced lead-acid batteries for StartStop vehicles and Lithium-ion batteries for hybrid and electric vehicles.
A leading provider of equipment, controls and services for heating, ventilating, air-conditioning , refrigeration, and security systems for buildings.
2
Johnson Controls
Our success is enabled by the commitment and dedication of our 142,000 employees serving customers in more than 150 countries
3
Johnson Controls
We are committed to delivering value to shareholders
Three Months Ended December 30
Incorporated in 1885 Consecutive dividends paid since 1887
NYSE: JCI No. 83 on U.S. Fortune 500 No. 280 on Global Fortune 500
Headquarters– Milwaukee, WI, United States 2010 Revenue - $34.3 Billion
4
Johnson Controls
(in millions, except per share data) Net Sales Net income* Diluted Earnings per Share*
Year Ended September 30
2010
2009
2010
2009
$9,537
$8,408
$34,305
$28,497
$375
$288
$1,356
$311
$0.55
$0.43
$1.99
$0.52
*Excludes restructuring charges and non-recurring items
Our Vision and Values are the foundation of our success
Vision A more comfortable, safe and sustainable world.
Values Integrity Honesty, fairness, respect and safety are of the utmost importance.
Customer Satisfaction Our future depends on us helping to make our customers successful. We are proactive and easy to do business with. We offer expert knowledge and practical solutions, and we deliver on our promises.
Employee Engagement We foster a culture that promotes excellent performance, teamwork, inclusion, leadership and growth.
Innovation We believe there is always a better way. We encourage change and seek the opportunity it brings.
Sustainability Through our products, services, operations and community involvement, we promote the efficient use of resources to benefit all people and the world.
5
Johnson Controls
Johnson Controls operates business with a zero-tolerance standard for ethical violations We cultivate a culture where our people recognize it is the strength of personal relationships across businesses and functions that help us continually succeed Our ethics policy provides guidance regarding acceptable and appropriate practices for our employees A 24 hour anonymous ethics hotline is available to anyone inside or outside the company who suspects unethical behavior Global and available in all major languages 41,000 employees take part in annual ethics training Voted one of the Worlds Most Ethical Companies by Ethisphere Institute in 2007, 2008, 2009 and 2010 “There is no such thing as business ethics, there is only ethics. You conduct your business affairs the same way you conduct your personal life. If you’re about to make a decision that you would not want to tell your family…don’t do it.” Fred Brengel CEO (1967 to 1988)
6
Johnson Controls
Our Environmental Leadership
7
We focus on our own environmental performance with the same discipline that we apply with our customers 2002 – Started reporting sustainability data 2003 – Published first Sustainability Report via the Global Reporting Initiative (GRI) guidelines, the most widely accepted global standard for reporting corporate responsibility 2009 – Introduced an environmental scorecard addressing resource efficiency, environmental management and sustainable product design 2010 – Glendale, U.S., headquarters office buildings awarded LEED™ Platinum certification by the U.S. Green Building Council. The largest concentration of LEED Platinum buildings ever on one site Our sustainability performance is recognized by numerous, respected corporate social responsibility and sustainability indices
8
Johnson Controls
LEEDTM Platinum Campus– The Johnson Controls Corporate and Power Solutions headquarters campus, Glendale, Wisconsin Johnson Controls has been awarded LEEDTM Platinum certification by the U.S. Green Building Council, for its efforts to make the Glendale campus a model of energy efficiency and sustainability This represents the largest concentration of LEED Platinum buildings – four – on one site ever awarded Photovoltaic solar Thermal solar Geothermal wells Rainwater management Green roofs Material re-use Integrated building management technology
9
Johnson Controls
Our environmental scorecard addresses resource efficiency, environmental management and sustainable product design The scorecard uses 2008 data as a baseline. As a result of reduced revenues due to the 2008 recession, our intensity metrics, which are calculated as a ratio of our revenues, remain above baseline. These charts show intensity-based metrics. The best available data is substituted for previously estimated data, which results in slight changes for reported amounts.
10
Our Corporate Energy Program
11
Commitment to Energy Management Our Energy Team Mission – We will manage energy globally across all Business Units in order to minimize our total energy cost and maximize the use of synergies.
Our Energy Team Vision – To create a competitive advantage for JCI by implementing unique and effective energy management strategies in support of our corporate vision. “A more comfortable, safe and sustainable world.” Energy Management Policy – BOS document # 13-18.100.BEHQ sponsored by the Global Purchasing Council and the Global Energy and Sustainability Council
12
Johnson Controls Energy Portfolio
Energy Spend - $253M AE 37%
PS 54%
Electricity – 2,330,000 MWh PS 56%
BE 9%
Notes •Figures do not include new acquisitions •Largest gas consumption is melting lead •Largest electricity consumption is formation
AE 35% BE 9%
Natural Gas – 4.6M Dth PS 62%
AE 30%
BE 8%
13
Johnson Controls
Strategies for FY11 1. Utilize BBP Sustainability Scorecard data to reduce manufacturing utility costs per equivalent unit and improve forecasted usage creating tighter procurement tolerance levels avoiding high priced energy 2. Lower total procurement cost through aggregating facilities and suppliers in countries and responding quickly to favorable changes in the energy markets 3. Continue to develop programs in support of the Continuous Improvement organization to reduce greenhouse gas emissions 4. Attract, develop and retain best in class people to implement best in class energy management processes globally
14
Johnson Controls A global diversified company in the building and automotive industries
Johnson Controls is a globally diversified company in the building and automotive industries
Automotive Experience
Power Solutions
Building Efficiency
A global leader in automotive seating, overhead systems, door and instrument panels, and interior electronics.
The global leader in lead-acid starter batteries, advanced lead-acid batteries for StartStop vehicles and Lithium-ion batteries for hybrid and electric vehicles.
A leading provider of equipment, controls and services for heating, ventilating, air-conditioning , refrigeration, and security systems for buildings.
2
Johnson Controls
Our success is enabled by the commitment and dedication of our 142,000 employees serving customers in more than 150 countries
3
Johnson Controls
We are committed to delivering value to shareholders
Three Months Ended December 30
Incorporated in 1885 Consecutive dividends paid since 1887
NYSE: JCI No. 83 on U.S. Fortune 500 No. 280 on Global Fortune 500
Headquarters– Milwaukee, WI, United States 2010 Revenue - $34.3 Billion
4
Johnson Controls
(in millions, except per share data) Net Sales Net income* Diluted Earnings per Share*
Year Ended September 30
2010
2009
2010
2009
$9,537
$8,408
$34,305
$28,497
$375
$288
$1,356
$311
$0.55
$0.43
$1.99
$0.52
*Excludes restructuring charges and non-recurring items
Our Vision and Values are the foundation of our success
Vision A more comfortable, safe and sustainable world.
Values Integrity Honesty, fairness, respect and safety are of the utmost importance.
Customer Satisfaction Our future depends on us helping to make our customers successful. We are proactive and easy to do business with. We offer expert knowledge and practical solutions, and we deliver on our promises.
Employee Engagement We foster a culture that promotes excellent performance, teamwork, inclusion, leadership and growth.
Innovation We believe there is always a better way. We encourage change and seek the opportunity it brings.
Sustainability Through our products, services, operations and community involvement, we promote the efficient use of resources to benefit all people and the world.
5
Johnson Controls
Johnson Controls operates business with a zero-tolerance standard for ethical violations We cultivate a culture where our people recognize it is the strength of personal relationships across businesses and functions that help us continually succeed Our ethics policy provides guidance regarding acceptable and appropriate practices for our employees A 24 hour anonymous ethics hotline is available to anyone inside or outside the company who suspects unethical behavior Global and available in all major languages 41,000 employees take part in annual ethics training Voted one of the Worlds Most Ethical Companies by Ethisphere Institute in 2007, 2008, 2009 and 2010 “There is no such thing as business ethics, there is only ethics. You conduct your business affairs the same way you conduct your personal life. If you’re about to make a decision that you would not want to tell your family…don’t do it.” Fred Brengel CEO (1967 to 1988)
6
Johnson Controls
Our Environmental Leadership
7
We focus on our own environmental performance with the same discipline that we apply with our customers 2002 – Started reporting sustainability data 2003 – Published first Sustainability Report via the Global Reporting Initiative (GRI) guidelines, the most widely accepted global standard for reporting corporate responsibility 2009 – Introduced an environmental scorecard addressing resource efficiency, environmental management and sustainable product design 2010 – Glendale, U.S., headquarters office buildings awarded LEED™ Platinum certification by the U.S. Green Building Council. The largest concentration of LEED Platinum buildings ever on one site Our sustainability performance is recognized by numerous, respected corporate social responsibility and sustainability indices
8
Johnson Controls
LEEDTM Platinum Campus– The Johnson Controls Corporate and Power Solutions headquarters campus, Glendale, Wisconsin Johnson Controls has been awarded LEEDTM Platinum certification by the U.S. Green Building Council, for its efforts to make the Glendale campus a model of energy efficiency and sustainability This represents the largest concentration of LEED Platinum buildings – four – on one site ever awarded Photovoltaic solar Thermal solar Geothermal wells Rainwater management Green roofs Material re-use Integrated building management technology
9
Johnson Controls
Our environmental scorecard addresses resource efficiency, environmental management and sustainable product design The scorecard uses 2008 data as a baseline. As a result of reduced revenues due to the 2008 recession, our intensity metrics, which are calculated as a ratio of our revenues, remain above baseline. These charts show intensity-based metrics. The best available data is substituted for previously estimated data, which results in slight changes for reported amounts.
10
Our Corporate Energy Program
11
Commitment to Energy Management Our Energy Team Mission – We will manage energy globally across all Business Units in order to minimize our total energy cost and maximize the use of synergies.
Our Energy Team Vision – To create a competitive advantage for JCI by implementing unique and effective energy management strategies in support of our corporate vision. “A more comfortable, safe and sustainable world.” Energy Management Policy – BOS document # 13-18.100.BEHQ sponsored by the Global Purchasing Council and the Global Energy and Sustainability Council
12
Johnson Controls Energy Portfolio
Energy Spend - $253M AE 37%
PS 54%
Electricity – 2,330,000 MWh PS 56%
BE 9%
Notes •Figures do not include new acquisitions •Largest gas consumption is melting lead •Largest electricity consumption is formation
AE 35% BE 9%
Natural Gas – 4.6M Dth PS 62%
AE 30%
BE 8%
13
Johnson Controls
Strategies for FY11 1. Utilize BBP Sustainability Scorecard data to reduce manufacturing utility costs per equivalent unit and improve forecasted usage creating tighter procurement tolerance levels avoiding high priced energy 2. Lower total procurement cost through aggregating facilities and suppliers in countries and responding quickly to favorable changes in the energy markets 3. Continue to develop programs in support of the Continuous Improvement organization to reduce greenhouse gas emissions 4. Attract, develop and retain best in class people to implement best in class energy management processes globally
14
