R.W. Baird Conference

November 12, 2008

Steve RoellChairman andChief Executive Officer

Johnson Controls, Inc. (“the Company”) has made forward-looking statements in this presentation pertaining t it fi i l lt f fi l 2009 d b d th t b d li i d t d bj t t i kto its financial results for fiscal 2009 and beyond that are based on preliminary data and are subject to risks and uncertainties. All statements other than statements of historical fact are statements that are or could be deemed forward-looking statements and include terms such as “outlook,” “expectations,” “estimates,” or “forecasts.” For those statements, the Company cautions that numerous important factors, such as automotive vehicle production levels, mix and schedules, financial distress of key customers, energy prices,

f S fthe strength of the U.S. or other economies, currency exchange rates, cancellation of or changes to commercial contracts, liquidity, the ability to execute on restructuring actions according to anticipated timelines and costs as well as other factors discussed in Item 1A of Part II of the Company’s most recent Form 10-Q filing (filed August 8, 2008) could affect the Company’s actual results and could cause its actual consolidated results to differ materially from those expressed in any forward-looking statement made by, or on behalf of, the Company.

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Johnson ControlsJohnson Controls

Three world-class growth businesses

Building efficiency

Creating quality indoor environments that are

Power solutionsProviding the highest quality, lowest cost

Interior experience

Delivering world-class technologies thatenvironments that are

energy efficient, comfortable and safe

automotive batteries to help customers grow their market shares and to power the vehicles of

technologies that differentiate vehicle interiors and increase consumer demand

tomorrow

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Johnson Controls Inc.2008 financial results

Sales$

Earnings$

Power

$38.1 B $1.4 B

Buildings37%

o e15%

Buildings46%

Power26%

Automotive48% Automotive

28%

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Profitable growth

Well-positioned to take advantage of global mega-trends– Energy efficiency

Sustainability– Sustainability

– Emerging markets

Proven ability to create new value for customers

Market insight and customer relationships to adapt and lead industry change

Financial strength to invest in growth and take advantage of new opportunities

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Our growth objectives

Sales Growth* > 10%

Earnings Growth* 10 – 15%

ROIC 15 - 16%

* Compounded annual growth rate Compounded annual growth rate

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2009: Unprecedented uncertainties

Global economyDepth and duration of U.S. economic slowdown Softening European economiesSoftening European economiesEmerging markets slowing but still strong

– Johnson Controls: $6.5 billion in sales*

Impact of global liquidity tightness on businesses dand consumers

Our marketsStrong global demand for energy efficiencyStrong global demand for energy efficiency, sustainability

Continued recessionary conditions in North American auto and residential marketsAmerican auto and residential markets

Rapid European auto production downturn

Financial health of automotive OEs and suppliers

*Annual sales, including unconsolidated7

Johnson Controls strengths

Record backlogs

Geographic diversityF t i t ti i ti

Key targets for BBP savings

Low cyclicality of some of our businesses

Strong customer relationships

Footprint optimization: manufacturing, engineering, shared services

Logistics/transportation Access to capital / credit ratings

Actions to improve cost structureSharing best practices

g p

Safety

Standardized global product and process architectures

– Sharing best practices– Identifying roadmaps for improvement– Leveraging worldwide capabilities

Supply chain management and global sourcing

Working capital

2009Nearly $3 billion identified cost savings BBP gapE t ti l 1/3 fExpectation: close 1/3 of gap

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Automotive Experience

Delivering world-class innovative technologies that differentiate vehicle interiors through improved comfort safetyinteriors through improved comfort, safety and sustainability

Leading global provider: systems and components for seats, overheads, doors, cockpits and electronics

– Supplying over 30 million cars per year from 250 locations in 30 countries (1/3 in low-cost countries)

– Over 60% of revenues generated outside of North gAmerica

*Excludes $1.5B unconsolidated revenue in China

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Automotive Experience

Our competitive advantages......Robust and disciplined innovation and new

d t

…leading to 2009 strengthsRecord backlog

product processes

Systems knowledge in major interior zones (seating, overhead, cockpit, door) and total interior integration

Winning new business, increasing market share

Expanding leading market position in China and Eastern Europe

Diversified customer and product portfolio

Culture focused on continuous cost-reduction and quality

China and Eastern Europe

Extending technology leadership

Global capability

Strategic relationships with the largest global automakers and the flexibility to respond to multiple customer strategiesmultiple customer strategies

Financial strength

– Strong partner in a weak supply base

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Automotive ExperienceVisibility of future performance

Three-year backlog visibility

Updated annually in October

Record profitable backlog

Represents incremental new business

– Net of discontinued programs

– Includes unconsolidatedIncludes unconsolidated

2009 – 2011 backlog

– 85% outside North America

– Reflects increasing market share in Europe, Asia

– Primarily cars, CUVs

Opel Zafira FAW-VW-Audi Q5

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Power Solutions

Dependable starting for today cars and powering tomorrow’s electric

hi lvehicles

Largest global provider of automotive batteries

Leader in lead acid batteries

– Largest and growing share of aftermarkets in North America, Europe and South America

– Original equipment (OE) batteries for the top automakers worldwide

First-to-market provider of lithium-ion batteries for hybrid applications

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Power SolutionsLead acid batteries

MarketFlat demand for lead acid batteries i t k t

Global market share Lead-acid automotive battery market

2008: 352M unitsin mature markets

– Extended product life and lower OE production

– Aftermarket business not as economically sensitive as OE

Asia market demand growing

New vehicle applications creating higher demand for advanced batteriesdemand for advanced batteries

– Lead acid (AGM) and alternative chemistries

Our competitive advantagesStrong growing market leadership positionStrong, growing market leadership position

Cost and quality leader

Global footprint; geographic expansion

Financial strength

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Hybrid vehicle battery technology

Lithium-ionJoint venture with Saft producing first-to-

k t d ti f lithi i t

Market leadership: program examples

Ford, Southern CA Edison and EPRI to d l d d t t hi l dmarket production of lithium-ion systems

– Production plant in Nersac, France

– 2009 delivery to Daimler, followed by BMW

develop and demonstrate vehicle and utility applications

SAIC for PHEV fuel cell demonstration fleetBMW

Systems integration: cell chemistry, electronics, systems capability and manufacturing

fleet

Daimler for Sprinter PHEV demonstration fleet

B tt t f Ch A t ti ’g

Unmatched automotive knowledge

Manufacturing expertise to drive lower system costs and assure quality

Battery system for Chery Automotive’s (China) first hybrid program

$8.2m USABC award for PHEV system developmentsystem costs and assure quality

Resources to invest in global engineering and manufacturing

development

$500k grant from the State of Wisconsin for R&D and hybrid commercialization activitycommercialization activity

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Building Efficiency

The global leader in creating and managing building solutions to improve energy efficiency comfort and safety

2008 Sales: $14.1 Billionenergy efficiency, comfort and safety

Highly diversified: 1 million customersin 125 countries

A huge installed base leading to repeat businessNon-ResidentialA huge installed base leading to repeat business

Moderate cyclicality due to large service/renovation volume

94% Residential

EuropeNorth America

Asia19%

Europe29%

America53%

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Building Efficiency

A growth industryDemand for energy efficiency and sustainability

ti t d l b llcontinues to expand globally

Increased integration of building, business, security and IT systems continues

Our competitive advantagesOur competitive advantagesIndustry-leading HVAC service business

– 13,000 service providers, twice the size of #2 competitor

Well positioned in growing emerging markets

Unique product and service offerings

Expertise and capability across the entire p p ybuilding lifecycle

Vertical market expertise

Renewable energy participation

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Non-residential buildingsHigh level of visibility and recurring revenues

Visibility of future performance

$4.7 B backlog (+12%) at September 30, 2008Service

Building Efficiencycommercial building sales

Backlog

Updated quarterly

Not included: Workplace Solutions or Unitary (residential) Products businesses

75%Technical services, solutions, retrofits, global workplace solutionsRecurring revenues driven by demand for increased energy efficiency, greenhouse gas Unitary (residential) Products businesses

Converts to revenue in 6-9 months

Historically low backlog cancellation rate

C t t t i ll d d ft N

y, g greductions, occupant comfort

– Contracts typically awarded after financing is in place & work has begun

– Tighter credit could have impact

Pipeline

New Construction

25%Pipeline

Tracks bidding activity

Precursor to backlog. 6-9 months of additional visibility

North America InternationalHigh concentration in "institutional" buildings

5 Yr. Growth rates:China 13%M.E 13%E 4%

yEurope 4%

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Fiscal 2009 key assumptions*

Automotive Build 2008 2009e

North America 13.9m 12.3m

E (W t E d 10%) 22 5 21 2Europe (Western Europe down 10%) 22.5m 21.2m

China +19% +0 to 5%

C t ti S diConstruction Spending

Residential – U.S. -13% 0%

Non-residential – U.S. -2% -5%

– Institutional Sector +4% +3%

Non-residential – International +7% +5%

Euro$1.40 in 2009 vs. $1.50 average in FY08

*as announced October 13, 200818

Fiscal 2009 outlook*

Consolidated net salesApprox $37B (down 3%)U 2 3% l di FX d l d

Earnings per shareApprox $1.95 - $2.10

Up 2-3% excluding FX and lead

Maintaining top-line sales despite contraction in mature markets

– Growth in Building Efficiency

Building Efficiency and Power Solutions improvements offset by weakness in AutomotiveGrowth in Building Efficiency

– Growth in emerging markets Capturing market share in Automotive and Power SolutionsLead and currency negative impact: $1.7 billion

*as announced October 13, 200819

Johnson Controls

We face unprecedented uncertainties, but we will manage through the current cycle and emerge with expanded market leadership

To do so, Johnson Controls will– Take advantage of Global Growth Mega-Trends, especially energy efficiency and

sustainability

– Stay close to our customers to more quickly react to changing markets and needs

– Leverage talent, technology and processes across the company

– Execute our growth strategiesg g

– Use our financial strength to invest in future growth

– Not sacrifice the long-term to chase short-term performance

– Continue to improve our cost structureContinue to improve our cost structure

Our focus remains: deliver long term shareholder value

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