Johnson Controls International Plc · NYSE:JCI

Johnson Controls International — Q1 2005 Earnings Presentation

16 slides from Johnson Controls International's earnings presentation, Jan 19, 2005

1. Slide 1: 1st Quarter 2005 Financial Results

   1st Quarter 2005 Financial Results January 18, 2005 Johnson Controls has made forward-looking statements in this document pertaining to its financial results for fiscal 2005 that are based on preliminary data and are subject to risks and uncertainties. Forward-looking statements include information

2. Slide 2: Agenda

   Q1 Financial Review Steve Roell - Executive VP and CFO Q1 Business Results Denise Zutz - VP Strategy, Investor Relations and Communication 2005 Outlook Steve Roell Q&A Agenda

3. Slide 3: First-Quarter 2005 Overview

   First-Quarter 2005 Overview Record sales Growth of 11% - excluding foreign exchange, up 7% Operating income down 3% Diluted EPS $0.87 vs. $0.86 Capital expenditures down 28% Announced agreement to sell engine electronics business

4. Slide 4: Performance vs. Prior Guidance

   First-Quarter Performance Prior Guidance Sales Operating income slightly lower Net income lower - -Automotive build - -Flow of automotive incremental backlog - -Modest controls growth - -Euro assumption was at $1.20 - -Growth rates - -Timing of automotive price reductions vs. cost reductions - -Raw

5. Slide 5: Engine Electronics Divestiture

   Engine Electronics Divestiture Part of 2001 Sagem automotive electronics acquisition FY2004 sales: 350m Euro (excluding intra-company sales) Engine management systems, engine control units, electric motor drives and engine components and sensors Transaction Details Buyer: Valeo Price: 330m Euro Targ

6. Slide 6: Financial Highlights

   First-Quarter 2005 Financial Highlights (in millions) Equity income: Weaker Chinese vehicle production Miscellaneous - net: Lower foreign currency losses Tax rate: Base rate of 26.5% (including discontinued operations) and one-time tax benefits of $11.5m in 2005 and $17m in 2004 Minority interest: I

7. Slide 7: Diluted Earnings Per Share First Quarter

   2005 2004 EPS from continuing ops before one-time tax benefits $.77 $.74 One-time tax benefits $.06 $.09 Continuing operations $.83 $.83 Discontinued operations $.04 $.03 Diluted earnings per share $.87 $.86 Diluted Earnings Per Share First Quarter

8. Slide 8: Cash Flow

   First-Quarter 2005 Cash Flow ($ in millions) Income from continuing operations $160 Depreciation/amortization $166 Capital expenditures $144 Change in working capital ($96) Total debt to total capitalization 33.3% December 31, 2004 (36.9% at Dec. 31, 2003)

9. Slide 9: Automotive Group Sales

   First-Quarter 2005 Automotive Group Sales North America Interiors sales down 1% Industry production down 2.4% Benefited from exposure to Chrysler, Toyota, Nissan Most negatively exposed at Ford Lowest backlog flow level of 2005 Some volume deconsolidated Battery sales up 30% Most of increase due to

10. Slide 10: Key Platforms

    First-Quarter: Key Platforms North America GM LaCrosse, Colorado/Canyon, TrailBlazer Ford Econoline DCX 300/Magnum, Grand Cherokee Toyota Corolla/Matrix/Vibe, Camry, Lexus RX330, Tacoma Nissan Pathfinder, Altima, Titan, Infiniti QX56 Europe Opel Astra Ford Land Rover Discovery; Volvo S40/V50, S60/V7

11. Slide 11: Automotive Group Operating Income

    First-Quarter 2005 Automotive Group Operating Income 2005 2004 Change $202.6 $199.2 2% North America Interiors margin decrease Pricing resolutions Raw materials Positive mix Lower engineering and launch costs Battery slight margin increase Consolidation of joint venture Europe Interiors margin incre

12. Slide 12: Controls Group Sales

    First-Quarter 2005 Controls Group Sales 2005 2004 Change Change ex FX $1,532 $1,407 +9% +6% (in millions) North America Sales up 8% -Construction up 15-20% -Technical services up 10-15% -Facility management up 5-10% -Systems renovation down slightly Europe Sales up 13% (5% ex FX) Increase in systems

13. Slide 13: Controls Group Operating Income

    First-Quarter 2005 Controls Group Operating Income 2005 2004 Change $42.8 $54.6 -22% North America Lower margin Workforce reduction (severance) in support of increasing competitiveness of systems business Competitive pricing in construction market Mix of growth among lines of business Europe Lower m

14. Slide 14: Controls Group Backlog

    Controls Group Backlog (at December 31) 2005 2004 Change $1.93B $1.75B 10% Orders North America orders up 15% Strength in healthcare, airport, office sectors for construction Pick-up in systems renovation in state/local government Growth in technical services Europe orders up 30% Renovation contract

15. Slide 15: 2005 Full-Year Estimates

    2005 Full-Year Estimates Sales +8 - 10% Operating margin Unchanged Automotive +8 - 10% Controls +8 - 10% Operating Income Up 10 - 12% Net Income Up more than operating income Automotive Slight improvement Controls Moderate decline Key Factors Automotive Vehicle production/mix Commercial discussions

16. Slide 16: 2005 Positioned to achieve our objectives

    2005 Positioned to achieve our objectives Strong customer relationships Adding value Innovation System integration Cost and quality improvements World-class execution Strengthened financial position 123,000 employees dedicated to exceeding customer expectations

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