Johnson Controls International Plc · NYSE:JCI

Johnson Controls International — Q4 2015 Earnings Presentation

22 slides from Johnson Controls International's earnings presentation, Oct 29, 2015

1. Slide 1: Quarterly update FY 2015 fourth quarter

   Quarterly update FY 2015 fourth quarter October 29, 2015

2. Slide 2: Forward-Looking Statements

   Forward-Looking Statements Johnson Controls, Inc. has made statements in this document that are forward-looking and, therefore, are subject to risks and uncertainties. All statements in this document other than statements of historical fact are statements that are, or could be, deemed "forward-looki

3. Slide 3: Agenda

   Agenda Introduction 1 Glen Ponczak, Vice President, Global Investor Relations Fourth quarter highlights 2 Alex Molinaroli, Chairman and Chief Executive Officer Business results 3 Bruce McDonald, Vice Chairman and Executive Vice President Financial review 4 Brian Stief, Executive Vice President and C

4. Slide 4: A record of excellence in transformation and execution

   A record of excellence in transformation and execution FY 2015* +120 bps Segment Margin $3.42 ▲ $3.00 Diluted EPS Growth $1.4B Shares Repurchased +18% Quarterly Dividend * Excluding transaction / integration / 4 Johnson Controls, Inc. - October 29, 2015 separation costs and non-recurring items

5. Slide 5: Record FY15 earnings from continuing operations

   Record FY15 earnings from continuing operations* NET REVENUES DILUTED EPS $38.7 B $37.2 B $3.42 $3.00 - 4% +14% +5% excluding FX and Interiors JV FY15 FY14 FY15 FY14 SEGMENT INCOME SEGMENT MARGIN $3.2 B 8.6% $2.9 B 7.4% 6.1% 6.5% +12% +120 bps +16% excluding FX FY15 FY14 FY12 FY13 FY14 FY15 * Exclud

6. Slide 6: FY2015 fourth quarter highlights

   FY2015 fourth quarter highlights*  Executing well during significant portfolio changes  Record fourth quarter earnings from continuing operations  GWS, Interiors JV and Hitachi JV now closed  Johnson Controls Operating System expanding and delivering increasing benefits  Continued focus on cost

7. Slide 7: Record FY15 Q4 earnings from continuing operations

   Record FY15 Q4 earnings from continuing operations* NET REVENUES DILUTED EPS $10.0 B $8.7 B $1.04 -12% $0.97 +7% +3% excluding FX and Interiors JV FY15 Q4 FY14 Q4 FY15 Q4 FY14 Q4 SEGMENT INCOME $939 M $911 M Segment margin +3% +150 bps +8% excluding FX FY15 Q4 FY14 Q4 * Excluding transaction / integ

8. Slide 8: Building Efficiency: Orders and backlog

   Second Quarter Building 2015 Efficiency Financial Highlights (continuing operations) Orders and backlog Q4 orders and backlog (excluding FX)  Increasingly more of a products business vs. a projects/backlog  Orders -4% business  NA branch up 4.4%  NA Federal Gov’t down 37% • Products: shorter lea

9. Slide 9: Investing in Growth – BE and PS

   Investing in Growth – BE and PS  Building Efficiency: supporting product-centric strategies  Launched Champion LX Series packaged units  Launched Hitachi VRF in North America; opened VRF training center  Unveiled P2000 enhanced security management system  Won Innovative Power Technology of the

10. Slide 10: Investing in Growth - AE

    Investing in Growth - AE  Automotive Experience: building global technology leadership  Introduced new personalization options for car seat trim covers  Successful seating system launch for the BMW 7-Series in Czech Republic  Commercialization of core product portfolio mechanism families (T/L 30

11. Slide 11: Expectations entering fiscal 2016

    Expectations entering fiscal 2016 Good momentum  Improving late cycle markets  Continued focus on operational excellence, driving further margin improvements  Ongoing benefits of cost discipline and commercial excellence initiatives  Pipeline of investment opportunities for long-term growth and

12. Slide 12: Building Efficiency: Improved profitability and margin expansion

    Building Efficiency* Improved profitability and margin expansion NET REVENUES  Sales level $2.9 B $2.9 B • North America up 5% (up 6% ex. FX) • Asia down 7% (level ex. FX) Level • Middle East strength offset by weakness in Europe +5% excluding FX FY15 Q4 FY14 Q4 SEGMENT INCOME $351 M  Segment marg

13. Slide 13: Power Solutions: Strong operational performance and profitability

    Power Solutions* Strong operational performance and profitability NET REVENUES $1.7 B $1.8 B  Higher volumes in all regions  Global shipments of start-stop AGM +44%  -6%  Aftermarket shipments +1% OE shipments +2% +3% excluding FX FY15 Q4 FY14 Q4 SEGMENT INCOME  Segment margins +200 bps $340 M

14. Slide 14: Automotive Experience: Strong global volumes and profitability

    Automotive Experience* Strong global volumes and profitability NET REVENUES  Q4 industry production $5.3 B • North America up 5% $4.2 B • Europe up 5% -21% • China down 5%  China sales (mostly non-consolidated) up 27%; down 3% +3% excluding FX excluding Interiors JV and Interiors JV  Interiors JV

15. Slide 15: Fourth quarter financial highlights (continuing operations)

    Second Fourth quarter QuarterFY2015 2015 Financial Highlights highlights (continuing operations) % 1 1 2015 2014 (in millions) 2015 2014 Change (reported) (revised) Sales $8,749 $9,952 -12% $8,749 $9,952 Gross profit 1,715 1,790 -4% 1,559 1,747 % of sales 19.6% 18.0% 17.8% 17.6% SG&A expenses 881 1,

16. Slide 16: Fourth quarter financial highlights: income and EPS

    Second Fourth quarter QuarterFY2015 2015 Financial Highlights highlights (continuing operations) 1 1 2015 2014 (in millions, except earnings per share) 2015 2014 (reported) (revised) Operating income $939 $911 $628 $640 Restructuring and impairment - - 397 162 Financing charges - net 73 66 73 66 Inc

17. Slide 17: Balance Sheet, Cash Flow and Guidance

    Second Quarter 2015 Financial Balance Sheet, Highlights Cash(continuing Flow and Guidance operations)  FY15 share repurchases of $1.4B; dividends of $0.7B  GWS divestiture proceeds of $1.4B on 9/1/15  Discretionary tax audit settlements and pension contributions of $0.8B  Strong balance sheet; n

18. Slide 18: Appendix

    a OS Johnson Wi | Controls

19. Slide 19: Q4 Non-Recurring Items – Continuing Operations

    Second Quarter 2015 Financial Q4 Non-Recurring HighlightsItems – Continuing (continuing operations) Operations (in millions, except earnings per share) Tax After-tax 2015 Income (Expense) Income EPS (Expense) Benefit (Expense) Impact Transaction, Integration & Separation Costs ($34) $6 ($28) ($0.04)

20. Slide 20: 2015 Q4 Restructuring and Impairment Costs

    Second Quarter 2015 Financial 2015 Q4 Restructuring Highlights (continuing and Impairment operations) Costs $M’s Severance and Other Cash Costs Corporate $28 Automotive Experience 154 Building Efficiency 21 Power Solutions 11 Total Severance and Other Cash Costs 214 Asset Impairment (Non-Cash) 183 T

21. Slide 21: 2015 free cash flow

    Second Quarter 2015 Financial 2015 freeHighlights cash flow (continuing operations) Actual free cash flow as reported $ 0.5 B Tax audit settlements 0.4 Pension contributions 0.4 Net unfavorable impact of Interiors JV 0.1 Transaction/integration/separation costs 0.1 Transaction related tax payments 0

22. Slide 22: johnsoncontrols.com/investors

    johnsoncontrols.com/investors @JCI_IR

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