Johnson Controls International Plc · NYSE:JCI
Johnson Controls International — Investor Day (December 2014)
79 slides from Johnson Controls International's investor day presentation, Dec 2, 2014
Slide 1: Strategic Review and 2015 Financial Outlook
Johnson Controls, Inc. — 1 1/6 2/6 4/6 5/6 1/4 3/4 1/2 Johnson Controls, Inc. — 1 Strategic Review and 2015 Financial Outlook December 2, 2014 Exhibit 99.2
Slide 2: Alex Molinaroli, Chairman and Chief Executive Officer
Johnson Controls, Inc. — 3 1/6 2/6 4/6 5/6 1/4 3/4 1/2 Alex Molinaroli Chairman and Chief Executive Officer
Slide 3: Today's presentations: Highlights
Johnson Controls, Inc. — 4 1/6 2/6 4/6 5/6 1/4 3/4 1/2 Today’s presentations Highlights We are executing on our strategies to be a leading multi industry company Significant progress made in re-shaping the portfolio; near term focus on execution and integration Strategic and operating plans to
Slide 4: Portfolio of strong global businesses
Johnson Controls, Inc. — 5 1/6 2/6 4/6 5/6 1/4 3/4 1/2 Johnson Controls Portfolio of strong global businesses $42.8bn FY2014 Building Efficiency Global Workplace Solutions Automotive Seating Automotive Interiors Power Solutions $10.1bn $4.1bn $17.5bn $4.5bn $6.6bn #JCIAnalystDay
Slide 5: Strong operational momentum: FY 2014 Results
Johnson Controls, Inc. — 6 1/6 2/6 4/6 5/6 1/4 3/4 1/2 Strong operational momentum FY 2014 Results* Executing well Record full year revenue and earnings AE segment income margin, +160bps Y-o-Y PS segment income margin, +60bps Y-o-Y BE segment income margin, +30bps Y-o-Y Cash returned to sh
Slide 6: Review of 2014 Portfolio Changes
Johnson Controls, Inc. — 7 1/6 2/6 4/6 5/6 1/4 3/4 1/2 Review of 2014 Portfolio Changes (completed and in-progress) Profitable Growth Acquisition JVs Divestitures PS AE BE ADT Interiors Hitachi Electronics Global Workplace Solutions Market share, advanced battery success, new manufacturi
Slide 7: Review of 2014: Balanced capital allocation
Johnson Controls, Inc. — 8 1/6 2/6 4/6 5/6 1/4 3/4 1/2 Review of 2014 Balanced capital allocation; enhanced return of capital Deliver on financial commitments Share repurchase Dividend Capital expenditures Guidance Profitability improvement $1.2 billion repurchase in 2014 $600 million repurchase
Slide 8: Enterprise strategy
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Slide 9: Enterprise strategy: Our plan to win
Johnson Controls, Inc. — 10 1/6 2/6 4/6 5/6 1/4 3/4 1/2 Enterprise strategy Our plan to win Playing to our strengths Making deliberate and explicit choices that align with where we excel Our strategies Delivering the most value to our customers and shareholders The Johnson Controls Operating Sys
Slide 10: Playing to our strengths
Johnson Controls, Inc. — 11 1/6 2/6 4/6 5/6 1/4 3/4 1/2 Playing to our strengths We are a manufacturing , engineering and supply chain company We succeed in businesses that scale We invest in and manage strategic customer relationships We distribute our products through superior channels, le
Slide 11: Making portfolio decisions
Johnson Controls, Inc. — 12 1/6 2/6 4/6 5/6 1/4 3/4 1/2 Making portfolio decisions Align with where we excel Which markets Supported by macro trends; growing above GDP Large enough for sustained organic and inorganic growth Where we can lead China and North American applications Where positi
Slide 12: Rebalancing the portfolio
Johnson Controls, Inc. — 13 1/6 2/6 4/6 5/6 1/4 3/4 1/2 Rebalancing the portfolio FY 2013 revenues FY2016 revenues (est.) Power Buildings Automotive Operating margin 6.2% Operating margin 9.1% Interiors – Equity JV Hitachi – Consolidated JV GWS - Divested Going forward Less auto centric More pro
Slide 13: Enterprise strategy: Our plan to win
Johnson Controls, Inc. — 14 1/6 2/6 4/6 5/6 1/4 3/4 1/2 Enterprise strategy Our plan to win Playing to our strengths Deliberate and explicit choices that align with where we excel Our strategies Delivering the most value to our customers and shareholders The Johnson Controls Operating System I
Slide 14: Multi-industry strategy
Johnson Controls, Inc. — 15 1/6 2/6 4/6 5/6 1/4 3/4 1/2 Multi-industry strategy Leveraging our portfolio of businesses Each of our core businesses contributes to fundamental capabilities which advantage the enterprise Long-time culture of innovation, best practice sharing and enterprise capabili
Slide 15: Executing on our strategies
Johnson Controls, Inc. — 16 1/6 2/6 4/6 5/6 1/4 3/4 1/2 Executing on our strategies Delivering the most value to our customers and shareholders Market-driven innovation and strategies Customer-driven business models Investments in growth platforms Balanced portfolio Optimized capital alloc
Slide 16: Executing on our strategies: China
Johnson Controls, Inc. — 17 1/6 2/6 4/6 5/6 1/4 3/4 1/2 Executing on our strategies China Asia Pacific, led by China, is the most important region for growth for Johnson Controls over the next 2-3 decades Overweighting our investments in China across all three of our businesses #JCIAnalystDay
Slide 17: China: the premier growth market
Johnson Controls, Inc. — 18 1/6 2/6 4/6 5/6 1/4 3/4 1/2 Executing on our strategies China: the premier growth market Mega trends By the beginning of the next decade…. Real GDP per capita to double (2010 vs. 2020) 275 million additional people moving from rural areas to cities >200 cities with
Slide 18: China will continue to be increasingly important
Johnson Controls, Inc. — 19 1/6 2/6 4/6 5/6 1/4 3/4 1/2 Executing on our strategies China will continue to be increasingly important Johnson Controls China revenues* * includes non-consolidated JVs at 100%, including proposed automotive interiors joint venture #JCIAnalystDay
Slide 19: China: investing across our businesses
Johnson Controls, Inc. — 20 1/6 2/6 4/6 5/6 1/4 3/4 1/2 Executing on our strategies China: investing across our businesses Automotive Experience 65% of seating backlog in China Rapid growth in metals Interiors JV: increased market share Power Solutions Site selection for third manufactur
Slide 20: Management changes
Johnson Controls, Inc. — 21 1/6 2/6 4/6 5/6 1/4 3/4 1/2 Executing on our strategies Management changes Collaborative culture and environments Vice Chairman: Bruce McDonald Chief Financial Officer: Brian Stief Building Efficiency President: Bill Jackson Vice Chairman Asia and President, AE:
Slide 21: Enterprise strategy: Our plan to win
Johnson Controls, Inc. — 22 1/6 2/6 4/6 5/6 1/4 3/4 1/2 Enterprise strategy Our plan to win Playing to our strengths Deliberate and explicit choices that align with where we excel Our strategies Delivering the most value to our customers and shareholders The Johnson Controls Operating System I
Slide 22: The Johnson Controls Operating System
Johnson Controls, Inc. — 23 1/6 2/6 4/6 5/6 1/4 3/4 1/2 Operationally excellent The Johnson Controls Operating System The “Johnson Controls Way” Manufacturing Engineering Marketing and sales Procurement Supply chain Functional expertise Business systems Leader development Technical E
Slide 23: Our strategies result in a compelling outlook
Johnson Controls, Inc. — 24 1/6 2/6 4/6 5/6 1/4 3/4 1/2 Our strategies result in a compelling outlook Driving top-line growth Attractive industries, markets and geographies Growing faster than our markets Organic and inorganic opportunities Driving bottom line profitability Focus on producti
Slide 24: Today's presentations
Johnson Controls, Inc. — 25 1/6 2/6 4/6 5/6 1/4 3/4 1/2 Today’s presentations Bruce McDonald Johnson Controls Operating System New enterprise functions Ongoing portfolio initiatives Kim Metcalf - Kupres Business strategies Commercial excellence Brian Stief Market assumptions 2015 finan
Slide 25: The foundation of our success
Johnson Controls, Inc. — 26 1/6 2/6 4/6 5/6 1/4 3/4 1/2 The foundation of our success The best way to define how we will become a leading global multi-industrial: When we have a growth-oriented company that is operationally excellent built on an existing foundation of truly engaged employees and lea
Slide 26: Bruce McDonald, Executive Vice President and Vice Chairman
Johnson Controls, Inc. — 27 1/6 2/6 4/6 5/6 1/4 3/4 1/2 Bruce McDonald Executive Vice President and Vice Chairman
Slide 27: Vice Chairman: Broadening management bandwidth
Johnson Controls, Inc. — 28 1/6 2/6 4/6 5/6 1/4 3/4 1/2 Vice Chairman Broadening management bandwidth My new role Working with the business unit presidents to drive operational and financial performance Directing specific enterprise functions and strategic initiatives as part of the Johnson Cont
Slide 28: Johnson Controls Operating System
Johnson Controls, Inc. — 29 1/6 2/6 4/6 5/6 1/4 3/4 1/2 Johnson Controls Operating System Leveraging our strengths to improve the enterprise Each business has unique strengths from which we can extract greater shareholder value Building Efficiency – project management, commercial excellence and
Slide 29: The Johnson Controls Operating System
Johnson Controls, Inc. — 30 1/6 2/6 4/6 5/6 1/4 3/4 1/2 The Johnson Controls Operating System.21 What is it? Why is it different? What will it mean? Central to how we run the company Leverage and build upon in-house best practices Organizational changes Supported by full-time resources Joh
Slide 30: Global Manufacturing Vision
Johnson Controls, Inc. — 31 1/6 2/6 4/6 5/6 1/4 3/4 1/2 Manufacturing System Quality Policy Safety System Plant “look/feel/brand” Plant leadership competency model Johnson Controls Operating System Global Manufacturing Vision ...To become the most operationally capable company in the world
Slide 31: Global Engineering
Johnson Controls, Inc. — 32 1/6 2/6 4/6 5/6 1/4 3/4 1/2 Creating the optimum balance of quality, cost and delivery Identify internal best practices and the path to “industry best” Leverage and standardize internal lean engineering expertise Drive engineering footprint optimization Develop cl
Slide 32: Global procurement
Johnson Controls, Inc. — 33 1/6 2/6 4/6 5/6 1/4 3/4 1/2 Johnson Controls Operating System Global procurement Johnson Controls annual supplier spend Appointment of Mike Bartschat as Chief Procurement Officer Deliver increased savings Direct: Global commodity teams Indirect: Centralized global
Slide 33: Corporate Development
Johnson Controls, Inc. — 34 1/6 2/6 4/6 5/6 1/4 3/4 1/2 Corporate Development In-house transformation team supporting enterprise financial goals and industry leadership plans Increase ability to deliver on business transformation, margin improvement objectives and growth plans Capability to chan
Slide 34: 2015 Corporate Development priorities
Johnson Controls, Inc. — 35 1/6 2/6 4/6 5/6 1/4 3/4 1/2 2015 Corporate Development priorities Complete Interiors transaction Complete Hitachi JV Complete GWS divestiture Deploy pipeline process Identify and prioritize inorganic opportunities #JCIAnalystDay
Slide 35: Automotive Interiors Joint Venture with Yanfeng
Johnson Controls, Inc. — 36 1/6 2/6 4/6 5/6 1/4 3/4 1/2 Corporate Development - portfolio update Automotive Interiors Joint Venture with Yanfeng Transaction details Creates world’s largest automotive interiors supplier 2015 revenues of approximately $7.5 billion, expected growth of 6-8% annually
Slide 36: Building Efficiency – Hitachi joint venture
Johnson Controls, Inc. — 37 1/6 2/6 4/6 5/6 1/4 3/4 1/2 Strategic partnership with technology leader Complementary technologies and products to drive growth in Asia Variable refrigerant flow (VRF) Absorption chiller Access to expanded distribution Corporate Development - portfolio update B
Slide 37: Global Workplace Solutions divestiture
Johnson Controls, Inc. — 38 1/6 2/6 4/6 5/6 1/4 3/4 1/2 Robust process underway JCI improved operating performance; business prepared for sale Strong interest from strategic and financial buyers Management presentations completed; due diligence currently underway Corporate Development - portfo
Slide 38: Enterprise Plan framework for assessing new market opportunities
Johnson Controls, Inc. — 39 1/6 2/6 4/6 5/6 1/4 3/4 1/2 The Enterprise Plan provides a framework through our Natural Business Units to assess new market opportunities Enterprise Plan Investment criteria defined … Market (attractiveness) Position (Advantaged) Fit (with existing capabilities and te
Slide 39: Inorganic drivers of growth
Johnson Controls, Inc. — 40 1/6 2/6 4/6 5/6 1/4 3/4 1/2 Inorganic drivers of growth A d jace n c ie s Ne w pla tfor m s B o lt -o n s Adjacent markets to existing JCI portfolio NBUs Vertical integration opportunities Value creation driver: leverage existing capabilities and core technologies Gro
Slide 40: Kim Metcalf-Kupres, Chief Marketing Officer
Johnson Controls, Inc. — 41 1/6 2/6 4/6 5/6 1/4 3/4 1/2 Kim Metcalf-Kupres Vice President and Chief Marketing Officer
Slide 41: Chief Marketing Officer
Johnson Controls, Inc. — 42 1/6 2/6 4/6 5/6 1/4 3/4 1/2 Chief Marketing Officer My role Profitable growth New ways to bring value to customers Johnson Controls brand Responsibilities: Marketing & Sales capabilities Strategy and business transformation Innovation Product management Br
Slide 42: Automotive Seating
Johnson Controls, Inc. — 43 1/6 2/6 4/6 5/6 1/4 3/4 1/2 Automotive Seating Leading global provider Global presence Diversified customer and product portfolios Established leader in growing Chinese market Vertical integration through complete seats and components Investing in technology and adva
Slide 43: Automotive Seating: Stronger growth than peers
Johnson Controls, Inc. — 44 1/6 2/6 4/6 5/6 1/4 3/4 1/2 Automotive Seating Stronger growth than our peers, competitors and markets #JCIAnalystDay Leading position in China Sustain share in mature markets Vertical integration creates content opportunities across programs Global footprint supp
Slide 44: China: Leveraging our advantages in the world's largest market
Johnson Controls, Inc. — 45 1/6 2/6 4/6 5/6 1/4 3/4 1/2 China Leveraging our advantages in the world’s largest market Strong partnerships with global and local OEs Established technical capabilities Increasing vertical integration in metals Improving margins through best business practices,
Slide 45: Automotive Seating: Operational Excellence
Johnson Controls, Inc. — 46 1/6 2/6 4/6 5/6 1/4 3/4 1/2 Automotive Seating Operational Excellence Improving profitability through better quality, cost, productivity, speed Driving sustainable improvement in our global Metals business Improvements in South America following commercial and restruc
Slide 46: Building Efficiency
Johnson Controls, Inc. — 47 1/6 2/6 4/6 5/6 1/4 3/4 1/2 Building Efficiency Johnson Controls makes buildings all around the world more comfortable, efficient and safe HVAC equipment, building controls and technologies with a broad range of value-added services Market leader in nonresidential bui
Slide 47: Building Efficiency: Investing for profitable growth
Johnson Controls, Inc. — 48 1/6 2/6 4/6 5/6 1/4 3/4 1/2 Building Efficiency Investing for profitable growth Strategic choices Winning in North America Systems & Service North America branch channel Expanding independent channels Growth platforms in China and rest of Asia Increasing product
Slide 48: Building Efficiency: Refining operating models
Johnson Controls, Inc. — 49 1/6 2/6 4/6 5/6 1/4 3/4 1/2 Building Efficiency Refining our operating models around selected products and local markets Product Businesses Compete on product Technology leadership Application coverage Differentiated features Product cost Ease of installation
Slide 49: Building Efficiency: Presence in China
Johnson Controls, Inc. — 50 1/6 2/6 4/6 5/6 1/4 3/4 1/2 Building Efficiency Strong presence and well-positioned for growth in China 40 Branch office locations Wuxi Factories, R&D Center Guangzhou Factory Shenzhen Beijing Dalian Qingdao Shijiazhuang Xi’an Chengdu Wuhan Xiamen Hangzhou Shanghai Shanto
Slide 50: Air Distribution Technologies
Johnson Controls, Inc. — 51 1/6 2/6 4/6 5/6 1/4 3/4 1/2 Air Distribution Technologies Strategic product focus and broadened distribution Products: Brands: Strong third-party distribution channels: +185 non-residential sales relationships +4,000 residential distributor locations #JCIAnalystDay
Slide 51: Hitachi Joint Venture
Johnson Controls, Inc. — 52 1/6 2/6 4/6 5/6 1/4 3/4 1/2 Hitachi Joint Venture Strategic product focus and broadened distribution Johnson Controls - Hitachi JV MOU Complementary commercial and residential HVAC technologies, especially VRF More solutions for our customers Best in class distribut
Slide 52: Power Solutions
Johnson Controls, Inc. — 53 1/6 2/6 4/6 5/6 1/4 3/4 1/2 Power Solutions Global market leader for vehicle energy storage systems, providing superior customer value at the best delivered cost 35% global market share for SLI batteries Strategic customer relationships and world class aftermarket bus
Slide 53: Power Solutions: Global growth platforms
Johnson Controls, Inc. — 54 1/6 2/6 4/6 5/6 1/4 3/4 1/2 Power Solutions Global growth platforms Mature Markets – North America & Western Europe Leverage core strengths to expand value delivery, reinforce strategic customer relationships and grow Invest for high growth in China Product & Tech
Slide 54: Positioning for aggressive growth in China
Johnson Controls, Inc. — 55 1/6 2/6 4/6 5/6 1/4 3/4 1/2 Investing in manufacturing and distribution Original Equipment Strategic relationships Advanced technology Aftermarket Continue building VARTA brand in China Expand distribution network in all regions Extend product portfolio to m
Slide 55: Power Solutions: Product & technology strategies
Johnson Controls, Inc. — 56 1/6 2/6 4/6 5/6 1/4 3/4 1/2 Power Solutions Product & technology strategies Lead & Optimize Lead & Expand Invest for Growth Selectively Participate Design optimization PowerFrame® Portfolio management Global product catalog Superior brands Maintain AGM leaders
Slide 56: Advanced Start-Stop
Johnson Controls, Inc. — 57 1/6 2/6 4/6 5/6 1/4 3/4 1/2 Advanced Start-Stop – Extending the lead-acid battery capability Dual battery system: 12 volt lead-acid battery + 12 volt Li-Ion battery Advanced Start-Stop Extends Start-Stop functionality to capture energy from vehicle braking and reduce en
Slide 57: Portfolio of strong global businesses
Johnson Controls, Inc. — 58 1/6 2/6 4/6 5/6 1/4 3/4 1/2 Portfolio of strong global businesses, serving attractive end markets Johnson Controls businesses Executing focused strategies for profitable growth Developing new ways to bring value to customers Differentiating core capabilities Attract
Slide 58: Brian J. Stief, Executive Vice President and Chief Financial Officer
Johnson Controls, Inc. — 59 1/6 2/6 4/6 5/6 1/4 3/4 1/2 Brian J. Stief Executive Vice President and Chief Financial Officer
Slide 59: Philosophies and personal background
Johnson Controls, Inc. — 60 1/6 2/6 4/6 5/6 1/4 3/4 1/2 Philosophies and personal background Consistent execution - no surprises Deliver on commitments - accountability Focus on value creation PricewaterhouseCoopers (1979 – 2010); admitted to partnership in 1989 Served primarily global MNC
Slide 60: Johnson Controls financial model
Johnson Controls, Inc. — 61 1/6 2/6 4/6 5/6 1/4 3/4 1/2 Johnson Controls financial model Clear portfolio choices, with a focus on where we can win and making the required investments Support business and operating model changes Significant attention to margin enhancement through cost reduction
Slide 61: Clear portfolio choices
Johnson Controls, Inc. — 62 1/6 2/6 4/6 5/6 1/4 3/4 1/2 Clear portfolio choices Building Efficiency Global Workplace Solutions Automotive Seating Automotive Electronics and Interiors Power Solutions $10.1B 17.5B 4.5B 6.6B Electronics - Sold Interiors – JV (close July FY15) Hitachi JV - $3.0B (late F
Slide 62: Focus on margin enhancement
Johnson Controls, Inc. — 63 1/6 2/6 4/6 5/6 1/4 3/4 1/2 Focus on margin enhancement Restructuring and turnaround initiatives across our businesses, including headcount reductions and global footprint changes Cost reduction, pricing and procurement initiatives Manufacturing, engineering and glo
Slide 63: Balanced capital allocation framework
Johnson Controls, Inc. — 64 1/6 2/6 4/6 5/6 1/4 3/4 1/2 $1.5 $1.9 $2.4 FY15 FY16 FY17 Balanced capital allocation framework Free cash flow Significant Free Cash Flow (est.) Key Objectives Balanced Capital Allocation Goals $5.8 billion cumulative BBB+ minimum rating Target 30 - 35% debt to capita
Slide 64: Balanced capital allocation framework: Capex
Johnson Controls, Inc. — 65 1/6 2/6 4/6 5/6 1/4 3/4 1/2 Balanced capital allocation framework Capex ($billion) $1.3 $1.8 $1.4 $1.2 $1.3 2.0x 2.4x 1.6x 1.4x 1.3x 0 0.5 1 1.5 2 2.5 3 0 0.2 0.4 0.6 0.8 1 1.2 1.4 1.6 1.8 2 FY11 FY12 FY13 FY14 FY15P Building Efficiency Power Solutions Automotive Ex
Slide 65: Shareholder returns: Strong dividend track record
Johnson Controls, Inc. — 66 1/6 2/6 4/6 5/6 1/4 3/4 1/2 $0.64 $0.72 $0.76 $0.88 $1.04 FY11 FY12 FY13 FY14 FY15 Shareholder returns Strong dividend track record continues Dividends Per Share Consecutive dividend payments since 1887 $3.5 billion in cash returned to shareholders via dividends over
Slide 66: Shareholder returns: Share repurchase program
Johnson Controls, Inc. — 67 1/6 2/6 4/6 5/6 1/4 3/4 1/2 Shareholder returns Share repurchase program Announced share repurchase program in FY14; total of $3.65 billion over 3 years $1.25 billion completed in FY14 $1.20 billion planned for FY15; $600 million completed in Q1 $1.20 billion plan
Slide 67: Entering FY15
Johnson Controls, Inc. — 68 1/6 2/6 4/6 5/6 1/4 3/4 1/2 Entering FY15 Good Momentum Improving late-cycle markets Operational improvements continue Expect margin expansion across our businesses Investing for long-term growth and margin expansion Stronger cash flow generation Benefits of c
Slide 68: FY15 underlying key assumptions
Johnson Controls, Inc. — 69 1/6 2/6 4/6 5/6 1/4 3/4 1/2 FY15 underlying key assumptions Automotive Production North America 17.2m up 2% Europe 25.0m up 2% China 24.5m up 10% Construction Spending Non-residential – U.S. +2% Non-residential – Europe +1% Non-residential – Asia +10% Commodit
Slide 69: FY15 outlook
Johnson Controls, Inc. — 70 1/6 2/6 4/6 5/6 1/4 3/4 1/2 FY15 outlook Consolidated net sales Approx $42.3B (down 1%) Full year ADT (+$800M) Continued growth in emerging markets across all businesses, particularly China Strong aftermarket volumes Deconsolidate Interiors business on July 1, 201
Slide 70: Building Efficiency FY15 financial outlook
Johnson Controls, Inc. — 71 1/6 2/6 4/6 5/6 1/4 3/4 1/2 Building Efficiency - excluding Global Workplace Solutions (GWS) FY15 financial outlook Sales growth of 9% to 11% (2% to 4% ex ADT) Modest North America market recovery Growth in China strong, but slowing Strong emerging market growth; Mi
Slide 71: Building Efficiency mid-term outlook (through FY19)
Johnson Controls, Inc. — 72 1/6 2/6 4/6 5/6 1/4 3/4 1/2 Building Efficiency (excluding GWS) Mid-term outlook (through FY19) Sales growth of 6% to 7% Late-cycle market recovery ADT synergies Growth in emerging markets Margin expansion to 11.0% - 12.0% Average annual improvement of 40 to 50 bp
Slide 72: Automotive Experience - Seating FY15 financial outlook
Johnson Controls, Inc. — 73 1/6 2/6 4/6 5/6 1/4 3/4 1/2 Automotive Experience - Seating FY15 financial outlook Sales decline of 5% to 6% Higher volumes in North America and Europe Continued growth in emerging markets, particularly China Planned capital constraints and targeted new business hur
Slide 73: Automotive Experience - Seating mid-term outlook
Johnson Controls, Inc. — 74 1/6 2/6 4/6 5/6 1/4 3/4 1/2 Automotive Experience - Seating Mid-term outlook (through FY19) Sales growth of 2% to 3% Strong global production volumes Impact of lower capital expenditures and targeted new business hurdles Margin expansion to 7.0% - 8.0% Average annua
Slide 74: Power Solutions 2015 financial outlook
Johnson Controls, Inc. — 75 1/6 2/6 4/6 5/6 1/4 3/4 1/2 Power Solutions 2015 financial outlook Sales growth of 8% to 10% (7% to 9% ex lead) Higher volumes across all regions and channels Continued improvement in China Market share growth Increasing production of AGM batteries Margin expansio
Slide 75: Power Solutions mid-term outlook (through FY19)
Johnson Controls, Inc. — 76 1/6 2/6 4/6 5/6 1/4 3/4 1/2 Power Solutions Mid-term outlook (through FY19) Sales growth of 5% to 6% Growth in China and other emerging markets Continued market share gains Advanced Battery volumes Margin expansion to 18.0% - 19.0% Average annual improvement of 50
Slide 76: GWS & Interiors 2015 financial outlook
Johnson Controls, Inc. — 77 1/6 2/6 4/6 5/6 1/4 3/4 1/2 GWS & Interiors 2015 financial outlook GWS Sales flat to decline of 1% Several significant new business and renewal awards Commercial discipline Margin expansion to 3.2% - 3.5% Operating model changes Benefits of restructuring and cost
Slide 77: China sales at 100%
Johnson Controls, Inc. — 78 1/6 2/6 4/6 5/6 1/4 3/4 1/2 China sales at 100% ($billion) 2011 2012 2013 2014 2015 2015 $1.1B Segment Income at 100% $5.1 $5.8 $6.9 $8.5 $10.7 pro-forma $13.7 #JCIAnalystDay
Slide 78: A commitment to profitable, sustainable growth
Johnson Controls, Inc. — 79 1/6 2/6 4/6 5/6 1/4 3/4 1/2 Johnson Controls A commitment to profitable, sustainable growth Focused on execution and delivering against our objectives Confident in our outlook for FY15 Committed to delivering $3.55 - $3.70 / share in FY15 (up 12% - 16% YOY) #JCIAnalys
Slide 79: Driving sustainable growth and returns in attractive global markets
Johnson Controls, Inc. — 80 1/6 2/6 4/6 5/6 1/4 3/4 1/2 Johnson Controls, Inc. — 80 Driving sustainable growth and returns in attractive global markets where we can win