Johnson Controls International Plc · NYSE:JCI
Johnson Controls International — Investor Day (December 2015)
78 slides from Johnson Controls International's investor day presentation, Dec 1, 2015
Slide 1: Johnson Controls Strategic Review and 2016 Outlook
Johnson Controls Strategic Review and 2016 Outlook December 1, 2015 Johnson Controls Strategic Review and 2016 Outlook CEO Section Alex Molinaroli Chairman, President and Chief Executive Officer December 1, 2015 – Public Forward looking statement Statements Johnson Controls, Inc. has made statements
Slide 2: Delivering on our Commitments: 2015 Record Performance
Johnson Controls Strategic Review and 2016 Outlook December 1, 2015 Delivering on our Commitments 2015: Record performance * *Excludes FX and Interiors JV Revenue 3 Johnson Controls, Inc. — PUBLIC Delivering on our Commitments 2015: Record performance FY2015* FY2015* 11.6% 120 bps Segment Margin *Ex
Slide 3: Delivering on our Commitments: Driving Value for Shareholders
Johnson Controls Strategic Review and 2016 Outlook December 1, 2015 Delivering on our Commitments 2015: Record performance * *Diluted earnings per share from continuing operations excluding separation / integration / transaction and other one-time or unusual items. 5 Johnson Controls, Inc. — PUBLIC
Slide 4: Tremendous Progress on Portfolio Transformation
Johnson Controls Strategic Review and 2016 Outlook December 1, 2015 Delivering on our Commitments Tremendous Progress on Portfolio Transformation 7 Johnson Controls, Inc. — PUBLIC Much has changed, but…Johnson Controls Vision and Core Enterprise Plan Remain Constant GROWTH COMPANY OPERATIONALLY EXCE
Slide 5: Our Strengths – Deliberate and Explicit Choices
Johnson Controls Strategic Review and 2016 Outlook December 1, 2015 Vision and Enterprise Plan Our Strengths – Deliberate and Explicit Choices 9 Johnson Controls, Inc. — PUBLIC Vision and Enterprise Plan Our Strengths – Deliberate and Explicit Choices Technical products that enable follow- on and va
Slide 6: Our Strengths – Deliberate and Explicit Choices
Johnson Controls Strategic Review and 2016 Outlook December 1, 2015 Vision and Enterprise Plan Our Strengths – Deliberate and Explicit Choices Continuous and relentless improvement culture 11 Johnson Controls, Inc. — PUBLIC Vision and Enterprise Plan Our Strengths – Deliberate and Explicit Choices B
Slide 7: Our Strengths; Johnson Controls Operating System
Johnson Controls Strategic Review and 2016 Outlook December 1, 2015 Vision and Enterprise Plan Our Strengths – Deliberate and Explicit Choices Strategic customer relationships Expanding channels Superior brands 13 Johnson Controls, Inc. — PUBLIC Vision and Enterprise Plan Johnson Controls Operating
Slide 8: Opportunity: A bright future ahead for two leading companies
Johnson Controls Strategic Review and 2016 Outlook December 1, 2015 Our Path to Multi-Industrial Key Metrics 15 Johnson Controls, Inc. — PUBLIC Opportunity A bright future ahead for two leading companies 16 Johnson Controls, Inc. — PUBLIC #JCIAnalystDay
Slide 9: Opportunity for growth in Asia-Pacific
Johnson Controls Strategic Review and 2016 Outlook December 1, 2015 Opportunity for growth in Asia-Pacific Asia-Pacific China Remains Large Opportunity for Both Companies Significant China Revenue Growth Johnson Controls Requires inorganic $21.0 bn Aligned with Market Trends investment Real GDP pe
Slide 10: China Remains Large Opportunity for Both Companies
Johnson Controls Strategic Review and 2016 Outlook December 1, 2015 Asia-Pacific China Remains Large Opportunity for Both Companies Significant China Revenue Growth Johnson Controls Requires inorganic $21.0 bn Advantaged positioning investment Local-market relevant products, channels, processes, t
Slide 11: Opportunity for growth in Johnson Controls Automotive
Johnson Controls Strategic Review and 2016 Outlook December 1, 2015 Opportunity for growth in Johnson Controls Automotive Automotive Well-Positioned in World’s Largest Growth Markets Johnson Controls Automotive Market Share by Region Total Market Size 2015: $60 Billion 22 Johnson Controls, Inc. — PU
Slide 12: Investment Thesis for SpinCo
Johnson Controls Strategic Review and 2016 Outlook December 1, 2015 Automotive Keys to Our Plan to Win in Auto January 13, 2016: Detroit Auto Show analyst conference • Presentation on post-spin Automotive business 23 Johnson Controls, Inc. — PUBLIC Automotive Investment Thesis for SpinCo Why should
Slide 13: Johnson Controls Will Be A More Focused Global Multi-Industrial
Johnson Controls Strategic Review and 2016 Outlook December 1, 2015 Opportunity for growth in Johnson Controls Johnson Controls Will Be A More Focused Global Multi-Industrial % of Sales Building Automation & Controls 17% Power Solutions SLI 28% ~$7bn FY15 revenue 4% 26% Building Efficiency AGM/EFB*
Slide 14: Will Be A More Focused Global Multi-Industrial
Johnson Controls Strategic Review and 2016 Outlook December 1, 2015 Johnson Controls Will Be A More Focused Global Multi-Industrial Power Solutions Building Efficiency(1) Leadership position in battery energy Diverse product portfolio storage solutions Global leader in complex building Advan
Slide 15: Investment Thesis: Why should I be excited about the New JCI?
Johnson Controls Strategic Review and 2016 Outlook December 1, 2015 Johnson Controls Investment Thesis Why should I be excited about the New JCI? 1 Attractive topline growth opportunities both organic and inorganic 2 Leadership positions in markets aligned with mega trends where we can win 3 JCOS dr
Slide 16: Distributed Energy Storage $19B market by 2020
Johnson Controls Strategic Review and 2016 Outlook December 1, 2015 What’s next for Johnson Controls? New Market Opportunity at the Intersection of our Businesses 31 Johnson Controls, Inc. — PUBLIC What’s next for Johnson Controls? Distributed Energy Storage $19B market by 2020 Investing in product
Slide 17: Further Growth & Transformation Potential
Johnson Controls Strategic Review and 2016 Outlook December 1, 2015 What’s Next for Johnson Controls? Further Growth & Transformation Potential Horizon 3 Horizon 2 Invest in future platforms First objective is Horizon 1 Expand the core always driving Strengthen the core shareholder returns Core
Slide 18: Characteristics of a Multi-Industrial: Leadership to Drive Shareholder Value
Johnson Controls Strategic Review and 2016 Outlook December 1, 2015 Aligned with the Characteristics of a Multi-Industrial Leadership to Drive Increasing Shareholder Value MI Peers Characteristics of Leading Multi-Industrial Businesses RemainCo Businesses in attractive growing markets Strategic
Slide 19: Today's Presentations
Johnson Controls Strategic Review and 2016 Outlook December 1, 2015 Today’s Presentations Kim Metcalf-Kupres Vice President and Mega Trends Chief Marketing Officer William C. Jackson President Building Efficiency Building Efficiency Joseph Walicki President Power Solutions Power Solutions Jeff Willi
Slide 20: Mega Trends
Johnson Controls Strategic Review and 2016 Outlook December 1, 2015 Johnson Controls Strategic Review and 2016 Outlook Mega Trends Kim Metcalf-Kupres Vice President and Chief Marketing Officer December 1, 2015 – Public Forward looking statement Statements Johnson Controls, Inc. has made statements i
Slide 21: Managing across multiple time horizons
Johnson Controls Strategic Review and 2016 Outlook December 1, 2015 Managing across multiple time horizons Long-term vision guides mid-and short-term planning 1-year budget 3-year business plan 5-year strategy horizon 10-year market view 0 1 3 5 10 + 3 Johnson Controls, Inc. — PUBLIC Mega Trends Mos
Slide 22: Four Anchors; Demographics
Johnson Controls Strategic Review and 2016 Outlook December 1, 2015 Four Anchors Interact with Key Enablers and Disruptors for Johnson Controls, we believe there are four there are also four key Enablers primary theme anchors … and Disruptors to consider … • Capacity • Consumer • Consumption • Suppl
Slide 23: Urbanization and Energy
Johnson Controls Strategic Review and 2016 Outlook December 1, 2015 Urbanization Rates and challenges create opportunities where we can help Urbanization in developing world - 100K people/day By 2025 emerging market cities ~75% of global GDP Cities are centers of global GDP growth – creating c
Slide 24: Energy and Technology
Johnson Controls Strategic Review and 2016 Outlook December 1, 2015 Energy Increasing energy demand means new opportunities Emerging consumers drive increased energy demand Renewables dominate power capacity additions Wind and solar in developing countries $1.1T market by 2023 As solar & win
Slide 25: Digitalization; Mega Trends Implications
Johnson Controls Strategic Review and 2016 Outlook December 1, 2015 Digitalization Transforming business models and customer-centricity End to end supply chain integration – Up to $2T in process optimization by 2025 Digital & Social media – +2B people globally, $900B-1.3T value E-Commerce – 27
Slide 26: Growth Platforms
Johnson Controls Strategic Review and 2016 Outlook December 1, 2015 Growth Platforms Mega Trends inform our platforms and investments for growth $400 billion of opportunity for strategic growth across current platforms 13 Johnson Controls, Inc. — PUBLIC Growth Platforms Mega Trends inform our areas
Slide 27: Technology and Strategic Capabilities
Johnson Controls Strategic Review and 2016 Outlook December 1, 2015 Technology Mega Trends inform our technology priorities Smart Connectivity / IoT Accelerated product development cycles Advanced Materials Smart buildings, campuses and cities Advanced Manufacturing Advanced battery tech
Slide 28: Summary
Johnson Controls Strategic Review and 2016 Outlook December 1, 2015 Summary Multiple time horizons with mid to long-term vision guiding planning Global macro trends are generally favorable for Johnson Controls Business plans address most attractive near and mid-term opportunities Significant
Slide 29: Johnson Controls Operating System
Johnson Controls Strategic Review and 2016 Outlook December 1, 2015 Johnson Controls Strategic Review and 2016 Outlook Johnson Controls Operating System Jeff Williams Vice President, Enterprise Operations and Engineering December 1, 2015 – Public Forward looking statement Statements Johnson Controls
Slide 30: JCOS Vision and Overview
Johnson Controls Strategic Review and 2016 Outlook December 1, 2015 Johnson Controls Operating System Our vision Most operationally capable Standardize enterprise approach Span all areas of business Establish and leverage best practices Consistent, repeatable processes Increase speed and
Slide 31: Where are we on our journey? Enterprise Value
Johnson Controls Strategic Review and 2016 Outlook December 1, 2015 Johnson Controls Operating System Where are we on our journey? Each Element of JCOS at Different Level of Maturity 0 1 2 3 4 5 Leader Led Manufacturing Engineering Procurement Supply Chain Marketing & Sales Business Systems Function
Slide 32: Engineering $400M opportunity
Johnson Controls Strategic Review and 2016 Outlook December 1, 2015 Engineering $400M opportunity 0 1 2 3 4 5 $400M Engineering Efficiencies Speed Value Enterprise product Virtual engineering capability Product standardization & development process Reduce physical testing reuse Product kno
Slide 33: Procurement $450M opportunity
Johnson Controls Strategic Review and 2016 Outlook December 1, 2015 Procurement $450M opportunity 0 1 2 3 4 5 $450M Procurement Direct Indirect Infrastructure e-Auctions Leverage enterprise spend Strategic investments Material best APAC capital & tooling business practices Catalog manage
Slide 34: Manufacturing $600M opportunity
Johnson Controls Strategic Review and 2016 Outlook December 1, 2015 Manufacturing $600M opportunity 0 1 2 3 4 5 $600M Manufacturing 851 Developed Johnson Controls Manufacturing System 522 ~ 300 plants 433 LEVEL deployed 343 5 Strengthening 276 LEVEL capabilities 3 Accelerating value 0 May ’1
Slide 35: Manufacturing Supply Chain
Johnson Controls Strategic Review and 2016 Outlook December 1, 2015 Manufacturing Supply Chain 0 1 2 3 4 5 $600M Supply Chain Recognized Value of Supply Chain Excellence Efficiencies Shorter system lead times Improvement in Lower inventory Inventory Levels New Product Launch Forecast Accuracy
Slide 36: Marketing and Sales $400M opportunity
Johnson Controls Strategic Review and 2016 Outlook December 1, 2015 Marketing and Sales $400M opportunity 0 1 2 3 4 5 $400M Marketing & Sales Product Management Innovation Commercial Excellence Product and lifecycle strategy New growth platforms and Customer experience Market insights pipeli
Slide 37: Functional Excellence $150M opportunity
Johnson Controls Strategic Review and 2016 Outlook December 1, 2015 Functional Excellence $150M opportunity 0 1 2 3 4 5 $150M Functional Excellence Finance HR Operating model choices Transformational change IT Standardize tools and processes Legal Empowered structure Risk Management Strategic I
Slide 38: Our success is yielding; Foundation of Strategic Growth
Johnson Controls Strategic Review and 2016 Outlook December 1, 2015 Johnson Controls Operating System Our success is yielding Reduced time to market Increased customer loyalty Improved quality and productivity Expanding margins Stronger product portfolio Faster integration Growing mark
Slide 39: Building Efficiency
Johnson Controls Strategic Review and 2016 Outlook December 1, 2015 Johnson Controls Strategic Review and 2016 Outlook Building Efficiency Bill Jackson President, Building Efficiency December 1, 2015 – Public Forward looking statement Statements Johnson Controls, Inc. has made statements in this doc
Slide 40: Johnson Controls Building Efficiency
Johnson Controls Strategic Review and 2016 Outlook December 1, 2015 Johnson Controls Building Efficiency Our Mission is to drive shareholder value by winning in HVAC/IR and Building Automation and Controls across the globe $13.5B 80+ 1M+ 650 revenue with manufacturing customers branches globally Hit
Slide 41: Global leader in non-residential HVAC and IR
Johnson Controls Strategic Review and 2016 Outlook December 1, 2015 Building Efficiency Today, we are the global leader in non-residential HVAC and IR HVAC Equipment Revenues and Mix Johnson Controls makes buildings all around the world more comfortable, efficient and safe: Residential Commercial Fo
Slide 42: Building on and playing to Our Strengths
Johnson Controls Strategic Review and 2016 Outlook December 1, 2015 Building Efficiency We are building on and playing to Our Strengths New model built around product and channels New Business Model Leaner organization (spans and layers) Lowered G&A by 15 percent Developing and launching new
Slide 43: We reach and serve our customers locally
Johnson Controls Strategic Review and 2016 Outlook December 1, 2015 Building Efficiency We reach and serve our customers locally in a number of ways Branch Networks & Third Party Distribution Equipment Sales: branches, and third party reps and distributors Service: controls, chillers, other mech
Slide 44: Self-reinforcing products and channels
Johnson Controls Strategic Review and 2016 Outlook December 1, 2015 …An interaction that is self-reinforcing Building Efficiency Leading channels has the industry’s that deliver best and most products and diverse equipment services to market portfolio Self-reinforcing benefits Leading products at
Slide 45: ADT channels; Hitachi JV VRF leader
Johnson Controls Strategic Review and 2016 Outlook December 1, 2015 …and channels Basis of Relationships Complementary distribution Residential Light Commercial Mid Market Complex from ADT Technical expertise Solve problems Buildings are by nature local Serving customers requires local Manage ri
Slide 46: We are strengthening our products
Johnson Controls Strategic Review and 2016 Outlook December 1, 2015 Building Efficiency We are strengthening our products Building Filling in the gaps in our product line Automation Developing new controls platforms & Controls Updating Metasys – continuing its world-class position Cost reduc
Slide 47: China remains a priority for Building Efficiency
Johnson Controls Strategic Review and 2016 Outlook December 1, 2015 China remains a priority for Building Efficiency, both in product… New Chillers oriented to better cost – Budget positioning New Building Automation, Devices and Controls for the China market Direct Expansion (DX) – Continue t
Slide 48: Two central priorities for Building Efficiency
Johnson Controls Strategic Review and 2016 Outlook December 1, 2015 Two central priorities for Building Efficiency Quality top line revenue growth… Continue ATD integration Grow JCI-Hitachi joint venture Investments in products to grow leadership positions and expand line card – New chiller pl
Slide 49: Building Efficiency has an unmatched opportunity
Johnson Controls Strategic Review and 2016 Outlook December 1, 2015 Johnson Controls Building Efficiency has an unmatched opportunity Broadest, most advanced portfolio for commercial and institutional applications – HVAC equipment – Building automation & controls Leading positions in attractive,
Slide 50: Power Solutions
Johnson Controls Strategic Review and 2016 Outlook December 1, 2015 Johnson Controls Strategic Review and 2016 Outlook Power Solutions Joe Walicki President, Power Solutions December 1, 2015 – Public Forward looking statement Statements Johnson Controls, Inc. has made statements in this document tha
Slide 51: Johnson Controls Power Solutions
Johnson Controls Strategic Review and 2016 Outlook December 1, 2015 Johnson Controls Power Solutions FY2015 Our full range of Lead-acid and Lithium-ion battery technology powers nearly every type of vehicle for our customers- including conventional, Start-Stop, Advanced Start-Stop, Micro Hybrid, hyb
Slide 52: Largely an aftermarket business
Johnson Controls Strategic Review and 2016 Outlook December 1, 2015 Power Solutions Largely an aftermarket business Sales by Market Top Customers 26% Aftermarket OE Top 5 customers are all aftermarket 74% and represent 36% of global unit sales Americas Europe APAC* 22% 32% 34% 68% 66% 78% *Includes
Slide 53: A global leader in environmental performance
Johnson Controls Strategic Review and 2016 Outlook December 1, 2015 Power Solutions A global leader in environmental performance Our vision is where 100% of automotive batteries are responsibly recycled We have achieved 98% improvement in per unit environmental emissions since 1989 99% of our
Slide 54: Strategy to continue to drive growth
Johnson Controls Strategic Review and 2016 Outlook December 1, 2015 Power Solutions Strategy to continue to drive growth OPERATIONALLY EXCELLENT GROWTH COMPANY OUR STRATEGIES JOHNSON CONTROLS DELIVERING OPERATING SYSTEM Product & Technology RESULTS 2020 Commercial Midterm outlook Mature Markets Exce
Slide 55: Automakers can meet fuel economy requirements
Johnson Controls Strategic Review and 2016 Outlook December 1, 2015 Product & Automakers can meet fuel economy and emissions Technology requirements without major investment in xEVs Vehicle Efficiency Trade-Off Model (VETOM); (Includes Diesel adoption) Technology Alternatives Engine improvements (
Slide 56: Investing across the technology spectrum
Johnson Controls Strategic Review and 2016 Outlook December 1, 2015 Product & Power Solutions is investing across the Technology technology spectrum Flooded AGM AGM/12v Li-Ion 48v Li-Ion Li ion cell Core technologies and motive batteries Motive position and approach Non-motive/stationary Grid Growth
Slide 57: Investing for leadership in China
Johnson Controls Strategic Review and 2016 Outlook December 1, 2015 Emerging Markets Investing for leadership in China Power Solutions Footprint Growing aftermarket position through 250+ wholesale distributors JCI North Plant 2017 Aggressive investments for strong regional (6 M units,100% AGM) p
Slide 58: Runway into attractive adjacencies
Johnson Controls Strategic Review and 2016 Outlook December 1, 2015 Adjacent Significant runway into attractive adjacencies Markets and high growth emerging segments Our Core Business Near Adjacent Emerging Spaces CARS MOTO HEAVY STATIONARY MOTIVE CARS GRIDS (ICE) DUTY (xEVs) 2014 Cumulative Market
Slide 59: Entering grid storage
Johnson Controls Strategic Review and 2016 Outlook December 1, 2015 Adjacent Entering grid storage – Stationary Energy Storage Markets business Leveraging existing capabilities 80% Johnson Controls content PS Li-ion product and capacity PS battery management BE controls, HVAC and container
Slide 60: Financial Outlook and Auto Spin-off Update
Johnson Controls Strategic Review and 2016 Outlook December 1, 2015 Johnson Controls Strategic Review and 2016 Outlook Financial Outlook and Auto Spin-off Update Brian Stief Executive Vice President and Chief Financial Officer December 1, 2015 – Public Forward looking statement Statements Johnson Co
Slide 61: Topics for Today's Discussion; Themes for FY16
Johnson Controls Strategic Review and 2016 Outlook December 1, 2015 Topics for Today’s Discussion 1 Consistent Johnson Controls Financial Model Free Cash Flow Overview 2 FY16 and Mid-Term Outlook 3 4 Auto Spin-off Update 3 Johnson Controls, Inc. — PUBLIC Themes for FY16 Financial Outlook Transitio
Slide 62: Consistent Johnson Controls Financial Model
Johnson Controls Strategic Review and 2016 Outlook December 1, 2015 Consistent Johnson Controls Financial Model Consistent Johnson Controls Financial Model Clear portfolio choices with focus on where we can win and making the required investments Support business and operating model changes Si
Slide 63: Clear Portfolio Choices; Margin Expansion
Johnson Controls Strategic Review and 2016 Outlook December 1, 2015 Clear Portfolio Choices Significant Progress on Portfolio Transformation/Operating Model Key Strategic FY13 Revenues Actions FY17 Revenues + ADT (FY14) PS BE + Hitachi JV (FY16) Operating margin: >10% Operating margin: ~6% – GWS (FY
Slide 64: JCOS Benefits; Balanced Capital Allocation Framework
Johnson Controls Strategic Review and 2016 Outlook December 1, 2015 Margin Expansion Johnson Controls Operating System Delivering Benefits (In Millions) FY16 FY20 Manufacturing $125 $600 Engineering 50 400 Procurement 100 450 Marketing & Sales 75 400 Functional 50 150 Excellence Gross SINC 400 $2000
Slide 65: FY16 Transition Year; Shareholder Returns
Johnson Controls Strategic Review and 2016 Outlook December 1, 2015 Balanced Capital Allocation Framework FY16 Transition Year Consistent Philosophy 2016 Transition Year Post Auto Spin-off Significant Auto Maintain or improve credit separation costs rating Pause on share Auto spin-off procee
Slide 66: Share Repurchase Program
Johnson Controls Strategic Review and 2016 Outlook December 1, 2015 Shareholder Returns Share Repurchase Program Announced share repurchase program in FY14; total of $3.65 billion – $1.25 billion completed in FY14 Total cash returned to – $1.36 billion completed in FY15 shareholders (share – FY16
Slide 67: Free Cash Flow: Significant Items Impacting FY16
Johnson Controls Strategic Review and 2016 Outlook December 1, 2015 Free Cash Flow Significant Items Impacting FY16 Auto separation costs Divestiture of GWS Additional restructuring likely, cash outflows tapering in FY17-FY18 Transaction tax payments and Mexico tax law changes No Year 1 di
Slide 68: FCF Conversion by Business Segment
Johnson Controls Strategic Review and 2016 Outlook December 1, 2015 Free Cash Flow FCF Conversion by Business Segment BE PS Remain Co AE FY16 adjusted free cash flow conversion* 66% 61% 63% 47% Hitachi growth capex investments 11% PS China growth capex investments and launch 11% costs PS incremental
Slide 69: FY16 Outlook: Entering The Year
Johnson Controls Strategic Review and 2016 Outlook December 1, 2015 FY16 Outlook Entering The Year Good Momentum Taking Actions Announced portfolio changes Auto spin-off targeted for complete October 3, 2016 Auto separation activities well Execute restructuring and cost underway and progress
Slide 70: FY16 Outlook: Johnson Controls Consolidated
Johnson Controls Strategic Review and 2016 Outlook December 1, 2015 FY16 Outlook Johnson Controls Consolidated net sales Full year Hitachi (+$3B) Approx $38.6B (up 4%) Strong aftermarket volumes in all regions Deconsolidated Interiors business on July 1, 2015 (-$3B) Planned AE capital constr
Slide 71: Building Efficiency Segment Changes and Mid-term Outlook
Johnson Controls Strategic Review and 2016 Outlook December 1, 2015 Building Efficiency FY16 Reportable Segment Changes Current Segments Adjustments Future Segments NA Systems & Service NA Systems & Service NA Products & Distribution Air Distribution Technologies (ADT) NA Products & Distribution Uni
Slide 72: Power Solutions FY16 Financial Outlook
Johnson Controls Strategic Review and 2016 Outlook December 1, 2015 Power Solutions FY16 Financial Outlook Sales growth of 9% - 11% Continued market share gains in all regions with aftermarket and OE volumes up 7% and 5%, respectively AGM volumes up 22% year-over-year China volumes projected t
Slide 73: Power Solutions Mid-term Outlook
Johnson Controls Strategic Review and 2016 Outlook December 1, 2015 Power Solutions Mid-term Outlook (through FY20) Sales growth of 7% - 8% Growth in China and other emerging markets Continued market share gains AGM and advanced battery volume increases Margin expansion to 18.5% - 19.0% Aver
Slide 74: Automotive Experience FY16 Financial Outlook
Johnson Controls Strategic Review and 2016 Outlook December 1, 2015 Automotive Experience (Seating and Interiors JV) FY16 Financial Outlook Sales decline of 2 - 3% (excluding impact of deconsolidation of Interiors) Prior year capital constraints and new business profitability hurdles Strong glob
Slide 75: FY16 Outlook: Equity Income; Commitment
Johnson Controls Strategic Review and 2016 Outlook December 1, 2015 FY16 Outlook Equity Income 600 $547 500 $398 400 $375 300 $276 200 100 - FY15 FY15 - China FY16P FY16P - China Building Efficiency Automotive Experience Power Solutions 31 Johnson Controls, Inc. — PUBLIC Johnson Controls A Commitmen
Slide 76: Auto Spin-off Financial Profile and Capital Structure
Johnson Controls Strategic Review and 2016 Outlook December 1, 2015 Auto Spin-off Update Auto Spin-off Financial Profile and Capital Structure Considerations Financial Profile Capital Structure >$16B consolidated sales; $17B in Targeting high non-investment unconsolidated sales grade credit rati
Slide 77: Auto Spin-off Preliminary Financial Overview and Timeline
Johnson Controls Strategic Review and 2016 Outlook December 1, 2015 Auto Spin-off Preliminary Financial Overview Key Metrics for Auto Spin-off Expected Range Debt / EBITDA Leverage 2.0x – 2.5x Cash on Balance Sheet $400M – $600M Debt / Capital Ratio 30% – 35% Tax Rate 18% – 20% Capital Expenditures
Slide 78: A Bright Future Ahead
Johnson Controls Strategic Review and 2016 Outlook December 1, 2015 Opportunity A Bright Future Ahead Execution – Continue to deliver on strategic and financial commitments Transformation - Significant portfolio progress with Auto spin-off on track Acquisitions – Strong balance sheet to suppor