CanaccordAdams Virtual Roundtable:

A Perspective on Energy Efficiency

September 25, 2008

Marc Andraca, Director, Building EfficiencyGlen Ponczak, Director, Investor Relations

22

Three world-class growth businesses

Building Efficiency

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

Power Solutions

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

Automotive Experience

Delivering world-class technologies that improve the driving experience and are environmentally friendly

2007 Sales: $34.6B

Automotive51%

Building37%

Power12%

Automotive28%

Building45%

Power27%

2007 Earnings: $1.3 B

33

Automotive Experience Creating more comfortable, safe and sustainable vehicle interiors

Global provider of seating, overhead systems, door and cockpit systems, integrated electronics

Balanced business structure

– Product portfolio, customer, geography

Supplying over 30 million cars per year

250 locations in 30 countries

– 1/3 of all manufacturing in low-cost countries

Delivering interior systems that provide the best...

Craftsmanship

Innovation

Value

Vehicle differentiation and brand reinforcement

North America

42%

Europe50%

Asia8%

2007 sales: $17.6 Billion

Seating

Interiors

Elec

troni

cs

44

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

Largest global provider of lead acid batteries

– Approximately 1/3 of all batteries produced globally

World-class customer base in stable aftermarket

Original Equipment (OE) batteries sold to every major automaker in the world

Leading independent provider of hybrid automotive battery systems

22%

78%

2007 sales: $4.3 Billion

Original Equipment

Aftermarket

3%64%

33%

Asia

AmericasEurope

Johnson Controls produced 121 million lead acid batteries globally in 2007

55

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

Non-residential buildings

Control systems, HVAC equipment, services, solutions

Improved comfort

– Temperatures, humidity, air quality, safety

Reduced costs

– Energy, operations, maintenance, equipment life

Residential buildings

Home air conditioning and heating

Non- residential

92%

Residential

2007 Sales: $12.7 Billion

Europe29%

North America54%

Asia17%

6

Annual analyst day: October 14, 2008

Hudson Theater, New York

8 a.m. – 1 p.m.

Review of strategies

Market outlook

2009 guidance

RSVP to Lynn.M.Kussrow@jci.com

or

414-524-2672

7

Pres·sure (presh-er)

noun

a condition of distress; oppression; affliction

a compelling influence; constraining force

demands requiring immediate attention; urgency

8

Pressure: Our Client’s View

commoditycost surge

demand for clean, secure, reliable energy

concern for c

limate

change & disruption generational

turnover

globalizationanxiety

credit c

runch

People whodesign, build,

own and operatebuildings

commoditycost surge

demand for clean, secure, reliable energy

concern for c

limate

change & disruption generational

turnover

globalizationanxiety

credit c

runch

People whodesign, build,

own and operatebuildings

9

Where to start?

Energy Demand Management:

How can I be sure that I am running my facilities in the most energy efficient manner possible?

How do I build employee awareness around energy usage?

What is the best way to finance new assets?

Products:Supply SideAdvisory:

Utility Bill Management:

Energy Analytics &

Optimization

Regulatory Compliance & Sustainability

Strategic Energy Planning – How do I put together an overall strategic plan for energy usage in my facilities?

How can I ensure that my utility bills are correct and paid on time?

How can I recover incorrect energy bill charges and eliminate late fees?

How can I benchmark my energy costs against my competitors?

How do I monitor and optimize energy usage in my facilities?

How do I track compliance with regulatory requirements?How do I design my buildings to meet energy-related certifications?How can I measure my carbon footprint?How can I monetize my carbon credits?

Program Management – How do I manage all the aspects of my energy program?

What is the best price I can get for energy?

How can I make sure I get the most favorable contracts with utility companies?

Do renewable technologies make sense for my business?

Which products will be best for my facility needs?

Can I use alternative energy sources?

10

The Solution: A JCI View

commoditycost surge

demand for clean, secure, reliable energy

concern for c

limate

change & disruption generational

turnover

globalizationanxiety

credit c

runch

People whodesign, build,

own and operatebuildings

Improving energy efficiency

in buildings is the

first and most important way to relieve the

pressure.

11

Implications for Our Business

INCREASED MARKET DEMAND FOR:

Building Products that use less energy and are commercially available today

Advanced Technologies to manage energy within and across a portfolio of buildings

Advisory Services to develop energy management & sustainability strategies for new and existing buildings

Technical Services & Solutions that raise energy performance in existing buildings

Energy Costs + Energy Independence + Green Movement + Climate Change + Legislation, Regulation & Incentives

Ride the Energy &

Sustainability Driven

Expansion in Traditional

Markets

Capture Incremental Share

in Traditional Markets & Penetrate New Space

Invent New Markets

‘Baseline’ BE Growth

1

2

3

12

An Example: Technical Solutions

http://www.johnsoncontrols.com/publish/us/en/sustainability /environmental_stewardship.html

• ~1,900 energy efficiency projects in US

• 800 active performance contracts today

• $4 billion in guarantees • In FY2008 issuing less than

$3M in shortfall payments across our entire portfolio

• Now also focusing on Clinton Climate Initiative Projects

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

14

Dallas Convention Center (the financials)

Project Cost$16 Million

Guaranteed Annual SavingsOver $2 Million in Utility costs

83% in electricity

16.5% in gas

0.5% in water

Project Term10 year Performance Period

October 1, 2008

To September 30, 2018

15

Our Energy Efficiency Capabilities TECHNOLOGY PROJECTS

SERVICES

ENERGY EFFICIENCYRETROFITS

ON-SITERENEWABLE

ENERGY

DISTRIBUTED HEAT & POWER

GENERATION

EQUIPMENTMAINTENANCE

& REPAIR

FACILITYMANAGEMENT

BUILDING SYSTEMS INSTALLATION& INTEGRATION

SUSTAINABILITYPLANNING

GREEN BUILDING DESIGN ASSISTANCE

& CERTIFICATION

WORKSPACE &PORTFOLIO

OPTIMIZATION

ENERGY & GHG DATA

MANAGEMENT

BUILDINGAUTOMATION

SYSTEMS

ENERGY EFFICIENTEQUIPMENT

ADVICE

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

17

Our Footprint In Context

507 Footprint

Average Home Footprint

Average Car Footprint1,657,000 metric tons

5 metric tons8,900 metric tons

Source: http://www.epa.gov/cleanenergy/energy-resources/refs.html

11.3 metric tons

18

A Different View

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

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

“Branch of the Future” space redesign

20

Efficiency Now?

Do you know your organization’s energy and carbon footprint?

Would you rather find out on your terms, or on someone else’s?

What other actions can you take that relieve pressure and are fast, cheap, proven, and easy on the planet?

Can we help?