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If you can read this Clickon the icon to choose apicture orReset the slide.To Reset: Right click on the slidethumbnail and select ‘reset slide’ orchoose the ‘Reset’ button on the‘Home’ ribbon(next to the font choice box)Fiscal Q2 2022Earnings Conference CallMay 4, 2022
Forward Looking & Cautionary Statements /Non-GAAP Financial InformationJohnson Controls International plc Cautionary Statement Regarding Forward-Looking StatementsJohnson Controls International plc has made statements in this communication that are forward-looking and therefore are subject to risks and uncertainties. All statements in this document other thanstatements of historical fact are, or could be, “forward-looking statements” within the meaning of the Private Securities Litigation Reform Act of 1995. In this communication, statements regarding JohnsonControls’ future financial position, sales, costs, earnings, cash flows, other measures of results of operations, synergies and integration opportunities, capital expenditures, debt levels and market outlookare forward-looking statements. Words such as “may,” “will,” “expect,” “intend,” “estimate,” “anticipate,” “believe,” “should,” “forecast,” “project” or “plan” and terms of similar meaning are also generallyintended to identify forward-looking statements. However, the absence of these words does not mean that a statement is not forward-looking. Johnson Controls cautions that these statements are subjectto numerous important risks, uncertainties, assumptions and other factors, some of which are beyond its control, that could cause its actual results to differ materially from those expressed or implied bysuch forward-looking statements, including, among others, risks related to: Johnson Controls ability to manage general economic, business, capital market and geopolitical conditions, including globalprice inflation, shortages impacting the availability of raw materials and component products and the current conflict between Russia and Ukraine; Johnson Controls ability to manage the impacts ofnatural disasters, climate change, pandemics and outbreaks of contagious diseases and other adverse public health developments, such as the COVID-19 pandemic; the strength of the U.S. or othereconomies; changes or uncertainty in laws, regulations, rates, policies or interpretations that impact Johnson Controls business operations or tax status; the ability to develop or acquire new products andtechnologies that achieve market acceptance and meet applicable regulatory requirements; changes to laws or policies governing foreign trade, including economic sanctions, increased tariffs or traderestrictions; maintaining the capacity, reliability and security of Johnson Controls enterprise information technology infrastructure; the ability to manage the lifecycle cybersecurity risk in the development,deployment and operation of Johnson Controls digital platforms and services; the risk of infringement or expiration of intellectual property rights; any delay or inability of Johnson Controls to realize theexpected benefits and synergies of recent portfolio transactions; the outcome of litigation and governmental proceedings; the ability to hire and retain senior management and other key personnel; the taxtreatment of recent portfolio transactions; significant transaction costs and/or unknown liabilities associated with such transactions; fluctuations in currency exchange rates; labor shortages, workstoppages, union negotiations, labor disputes and other matters associated with the labor force; and the cancellation of or changes to commercial arrangements. A detailed discussion of risks related toJohnson Controls’ business is included in the section entitled “Risk Factors” in Johnson Controls’ Annual Report on Form 10-K for the 2021 fiscal year filed with the SEC on November 15, 2021, which isavailable at www.sec.gov and www.johnsoncontrols.com under the “Investors” tab. The description of certain of these risks is supplemented in Item 1A of Part II of Johnson Controls’ subsequently filedQuarterly Reports on Form 10-Q. Shareholders, potential investors and others should consider these factors in evaluating the forward-looking statements and should not place undue reliance on suchstatements. The forward-looking statements included in this communication are made only as of the date of this document, unless otherwise specified, and, except as required by law, Johnson Controlsassumes no obligation, and disclaims any obligation, to update such statements to reflect events or circumstances occurring after the date of this communication.Non-GAAP Financial InformationThis presentation contains financial information regarding adjusted earnings per share, which is a non-GAAP performance measure. The adjusting items include restructuring and impairment costs, netmark-to-market adjustments, Silent-Aire transaction costs and other nonrecurring items, Silent-Aire earn-out adjustment, charges associated with the suspension of operations in Russia, Power Solutionsdivestiture reserve adjustment and discrete tax items. Financial information regarding organic sales, adjusted sales, EBIT, EBIT margin, total segment EBITA, adjusted segment EBITA, adjusted segmentEBITA margin, adjusted Corporate expense, free cash flow, free cash flow conversion, net debt and net debt/EBITDA are also presented, which are non-GAAP performance measures. Managementbelieves that, when considered together with unadjusted amounts, these non-GAAP measures are useful to investors in understanding period-over-period operating results and business trends ofJohnson Controls. Management may also use these metrics as guides in forecasting, budgeting and long-term planning processes and for compensation purposes. These metrics should be considered inaddition to, and not as replacements for, the most comparable GAAP measure. For further information on the calculation of the non-GAAP measures and a reconciliation of these non-GAAP measures,refer to the attached footnotes.2Johnson Controls, plc. — May 4, 2022
Capitalizing on our Vectors of Growth in aChallenging Environment Our value proposition is resonating with customers, translating intorobust demand and a record backlog with strong margins Continued outperformance in our shorter cycle Global Productssegment Digitization at the center of our strategy making good progress Traction on key vectors of growth: decarbonization, smart buildingsand healthy buildings On track to deliver 230M in productivity savings in FY22 Effective capital allocation Addressing near-term supply chain disruptions impacting our ability toconvert demand in our longer-cycle North America solutions business3Johnson Controls, plc. — May 4, 2022
NORTH AMERICA SOLUTIONSTemporary Challenges Impacting Backlog ConversionOur value proposition is resonatingwith our NA customers-Order growth 13%(2-year stack 18%)-Backlog growth 14%-Service Order growth 7%-Sustainability InfrastructureOrders 16%(2-year stack 60%)-Component shortages impacting our ability to achieve full margin potentialin Service and Install:1 Supply Chain Disruptions2 Cost Absorption Impact Reduced volume resulting in lowerabsorption of cost base Order growth ( 13%) outpacing revenuegrowth ( 6%) Higher selling expense as a % of sales Install: component shortages impactingability to complete projects, includingmargin rich later phasesService: component shortages impactingconversion of L&M service activityLabor inefficiencies due to project delaysand multiple site visitsHealthy Buildings/IAQ Orders 85%Total profit impact of 40M in the quarterSupply chain challenges expected to improve in H2; Well positioned for FY234Johnson Controls, plc. — May 4, 2022
DIGITALIZING THE PORTFOLIOOpenBlue is at the Center of Our Enterprise StrategyMAJOR LAUNCHES (FQ2/FQ3)Integrated platform enables agile software development & continuous deployments: Modern, containerized architecture Multi-cloud and on-prem deployment Intelligent edge with AI and zero-trust security AI-infused digital solutions supporting fault detection, sustainability, and healthy buildings5Johnson Controls, plc. — May 4, 2022OpenBlueGatewayCommunication device that connects JCIand non-JCI devices at the edge. Abilityto connect OT devices with Foghorn EdgeAI and Zero Trust securityOpenBlueConnected ChillersLeverages the Gateway to collect datafrom both JCI and non-JCI chillers todetect alerts leading to proactivemaintenance, optimization settings andaverting unplanned shutdownsOpenBlueChiller Vibrational AnalysisReal-time chiller vibrational analysisat the edge leveraging Foghorn AI todetect anomalies and send alerts toavert catastrophic failureOpenBlueNetZero AdvisorJCI’s first digital offering allowingcompanies to manage their Scope 1and Scope 2 emissions as part of theNetZero-as-a-Service offeringOpenBlueConnected ControlsJCI’s first offering fully integrating Metasyswith OpenBlue; a disruptive offering thatincreases the intelligence of buildingautomation systems by infusing AIComing Soon
ACCELERATING DIGITAL SERVICE TRANSFORMATIONService Growth Flywheel Accelerated by Digital1Johnson ControlsWell Positioned 160B2Global Service Market1 Highly fragmented 1,000s of players Secular trends drivingthe need for outcomebased solutions(NetZero, IAQ, etc.)The JCI Digital Advantage Vendor-agnostic connectivityMulti-tenant cloud environmentDigital twin data modelsIntelligent connected edgeZero trust cybersecurity Digital technologyenables outcomes &competitive advantage500bps/year Our installed base, directfootprint, and technologyadvantage give usunparalleled leveragefor digital growth3-4XIncreasedAttach RateSources: 1) Dodge, Navigant, CBRE, JCI Analysis6Johnson Controls, plc. — May 4, 2022StartOutcomes as aConnected ServicesService(e.g., chillers) Net Zero Uptime 50% Indoor Air Quality Repair costs 20% Energy savings 5% Space Mgmt Cooling &HeatingTailored solutionsfor target verticals Healthcare Government Education CREQ2 SERVICEORDERS 10%Q2 SERVICEREVENUE 8% 130bpsincrease in / Customer3X5-600 bpsincrease inconnectivityIncreasedConnectivityDelivering ResultsQ2 ATTACH RATEincrease inAttach Ratereduction inAttrition3Q2 DIGITALSERVICES 7%(e.g., connected chillers)DigitalServices & AppsLowerAttrition 2BREVENUE OPPORTUNITYBY 2024
VECTORS OF GROWTH: DECARBONIZATIONLeading in Sustainability – Providing a Path to Net Zero1 240B Global Decarbonization MarketOpportunity (through 2035)1Energy price pressures including inflationaryenvironment2 are fueling sustainability action Renewed focus on efficiency & grid resiliency Heightened concerns regarding fuel/energy sources2Johnson ControlsWell Positioned Paybacks more attractiveTraining and scaling systems, tools, processes forconsistent global energy efficiency delivery.Johnson Controls as-a-serviceofferings remove barriers tosustainability actionYTD ORDERS 450MTop sustainability and renewables leaders,sellers, engineers and installers from targetglobal markets choosing JCI because of ourstrategy and ability to deliver.Consistent global deliveryUnited Nations: Finance gapsare slowing recovery andsustainable development3Delivering ResultsGame-changing top talent Prioritizing energy securityIEA and the European Commission have proposedseparate plans/actions to reduce dependency onRussian fossil fuels (REPowerEU)3Design. Digitalize. Deploy.Finalizing ESG Advisory go-to-marketpartnerships – expected to be announced Q3.Full commercialization of net zero capabilitiesDelivering holistic approach or the next best step forcustomer and JCI facilities along the 8-step journey toachieve sustainability targets.UNFACTOREDPIPELINE 7.1B COMMERCIAL, INDUSTRIAL,HEALTHCARE8 47%YoY Increase inAvg Deal Size 32%YoY Number ofOpportunitiesSources: 1) Energy Information Administration, Guidehouse, Urban Green Council, Rocky Mountain Institute, JCI analysis Represents incremental opportunity; majority of total opportunity is retrofit.Remainder is onsite renewables and advisory services 2) Marquette Associates. Russia and Ukraine: All Eyes on Energy. February 15, 2022. 3) United Nations Inter-agency Task Force on Financingfor Development. Bridging the Finance Divide: Financing for Sustainable Development Report 2022. April 4, 2022.7Johnson Controls, plc. — May 4, 2022Multi-nationalcustomer selections
VECTORS OF GROWTH: HEALTHY BUILDINGSLeading Health, Wellness & Productivity in the Built EnvironmentBuildings1 10-15B Healthy1Opportunity2 Johnson ControlsWell PositionedOpenBlue Indoor Air Quality as aService (IAQaaS) released FQ2 30 global opportunities in pipeline White House and EPA announced “Clean Air inBuildings Challenge” on 3/17White House committed 500M to K-12 schooldistricts to deliver healthy, productive learningenvironmentsRising global governmental support forventilation, filtration & UV disinfectioninvestments, including E.U.Sources: 1) CleanTech Research & Markets, Guidehouse, JCI analysis8Johnson Controls, plc. — May 4, 2022 4x typical Healthy Buildings servicecontract valueKey Win: Ecorse Public Schools(Michigan, USA) Federal relief funds leveraged toenhance IAQ & student productivityIsoClean HEPA air purifiersconnected to Metasys BAS tooptimize health & energy consumption3Delivering ResultsHEALTHY BUILDINGSPIPELINE 1B Unfactored 300M FactoredFQ2 HEALTHY BUILDINGSORDERS 150M, 32% YoYYTD HEALTHY BUILDINGSORDERS 265M, 38% YoY
NOTABLE AWARDSHonored to be Recognized as an ESG LeaderTop Score from the Human Rights Campaign Foundation Achieved a score of 100% in the Foundation’s 2022 Corporate Equality Index Designated as one of the Best Places to Work for LGBTQ EqualityCDP Supplier Engagement Leader Earned a position on CDP’s prestigious Supplier Engagement Leader list joiningthe top 8% of companies who disclosed to the full climate questionnaire Highlights our efforts to engage with suppliers to reduce emissions across ourvalue chain, enabling the transition to a sustainable economyS&P Global Sustainability Industry Leader Companies within the top 15% of each industry and achieved thestrongest improvement in their industry, are awarded an Industry MoverSustainability Award.FT Climate Leaders List Recognized as a climate leader in Europe for the second consecutiveyear, being among those companies that have achieved the greatestreduction in emissions intensity Demonstrates our leadership in reducing Scope 1 and 2 emissions, andunderscores our commitment to achieving net zero by 2040Katie McGinty Named Top Woman in Sustainability Sustainability Magazine’s inaugural list of the “Top 100 Women inSustainability”, celebrating the rise of women in the corporate world andthe rising adoption of sustainability9Johnson Controls, plc. — May 4, 2022
FISCAL Q2 FINANCIAL SUMMARY*Continued Growth Navigating a Challenging EnvironmentSalesAdjusted EPS 9%ORGANIC SALES GROWTH 5.6BQ2 FY21 0.52 Field Solutions 7%; Service 8% Favorable below the line items Global Products 14% Lower share countQ2 FY22Q2 FY21Down 10bpsQ2 FY22Free Cash Flow 539M-44% Conversion 12.6%( 193M) Benefit of SG&A & COGS actionsQ2 FY22- Price/Cost & Supply chain/Laborinefficiencies (160bps) HW YoY- Higher Trade Working Capital vs. prior year( 0.2B) Volume leverageQ2 FY21*All figures other than sales are adjusted and/or non-GAAP. Non-GAAP figures exclude special items. See footnotes for reconciliation.10 21% Improved profitability Segment EBITA 8%; 10% organicallyQ2 FY21 Price 6% / Volume 3%Segment EBITA Margin12.7% 0.63 6.1BJohnson Controls, plc. — May 4, 2022Q2 FY22- Higher Capex vs. prior year- Absence of COVID-related tailwinds
FISCAL Q2 EPS BRIDGE* (CONTINUING OPERATIONS)Strong Operational PerformanceOPERATIONS ostSupply ChainDisruptionsUnderlying Incrementals, Excluding Price/Cost & Supply Chain Disruptions 36%*Non-GAAP EPS from continuing operations, excluding special items. See footnotes for reconciliation. Other items may not sum due to rounding11Johnson Controls, plc. — May 4, 2022
ORDER VELOCITYOrder Momentum Continues & Backlog Remains at Record LevelsTrailing 3-mo Field Orders (YoY % Chg)30% Trailing 3-month Field Orders 11% YoY- Service orders 10%- Install orders 11%20%10%Total Field0% 2-year Stack 15% (vs. 5% in -21Jun-21Sep-21Dec-21Mar-22Backlog ( , billions; proforma for prospective service/install shift)4% 1.9123% 2.02% 2.03% 2.04% 2.07% 2.112%10%10% 2.0 2.1 2.1 7.2 7.3 7.3 7.6 7.8 8.1 8.2 8.4 8.9Q220Q320Q420Q121Q221Q321Q421Q122Q222Johnson Controls, plc. — May 4, 2022Total Backlog(Organic YoY %) Field backlog of 10.9B, 12% Service backlog 3%; growth across all segments Install backlog 14%; led by order activity in NA & EMEALA Global Products 3rd party backlog 2.1B, 50% YoYServiceInstall
FISCAL Q2 SEGMENT RESULTS*Capitalizing on Strong DemandSales( M)North AmericaEMEALAOrganic % YoY 2,227 6% 958 8%10.6%(210bps)9.4%Flat 62311.9%Global Products 2,29016.1%Total Segment 6,09812.6%Asia Pac 7% 14% 9%*Non-GAAP excludes special items. See footnotes for reconciliation.13EBITA Margin CommentsChange YoYJohnson Controls, plc. — May 4, 2022(40bps) 170bps(10bps) Service 7% / Install 5% Strong demand for Applied HVAC & Controls equipment and service Significant headwinds from supply chain disruptions, material/labor availability, andoperational inefficiencies Orders 13%; Backlog 6.9B, 14% YoY Service 11% / Install 5%Continued recovery in Fire & Security platformsFavorable volume/mix and positive price/cost offset by supply chain disruptionsOrders 8%; Backlog 2.2B, 9% YoY Service 6% / Install 7%China continues to lead other regions, sales up nearly 20%Margin impacted by negative price/cost and install/service and geographic mixOrders 8%; Backlog 1.8B, 5% YoY Broad-based strength across the portfolio; Includes 10ppts of priceStrong demand for Resi & Commercial HVAC equipmentFavorable volume/mix and higher absorption offset price/cost headwind3rd Party Backlog of 2.1B, 50% YoY Field: Service 8% / Install 6%; Products 14%Order momentum continuing to build; strong growth in serviceOngoing inflation, component availability & labor constraintsField orders 11%; Field backlog 10.9B, 12% YoY
FISCAL Q2 SEGMENT END MARKET PERFORMANCE*Broad Based Growth, Strong Price Realization% ofFY21SalesNorth AmericaEMEALAAsia PACGlobal ProductsConsolidatedJCIApplied133% LDD LSD low-teens mid-teens2 LDDLight Commercial38% high-teens high-teensCommercial HVAC41% high-teens low-teensNA Residential4% 25% 25%ROW Residential9% LDD LDDResidential HVAC13% mid-teens mid-teensFire & Security439% LSD LDD MSDSustainability Infrastructure3% LSDIndustrial Refrigeration4%Organic Sales % ChangeTotal100% LDD(MSD) LSD MSD 6% 8% 7%(LDD) LSD 14% 9%Underlying End Market Demand Continues To ImproveIncludes large commercial applied HVAC equipment, BMS & ControlsRepresents indirect sales of chiller and air handling equipment3 Includes global unitary and VRF equipment4 Includes Retail12*Non-GAAP excludes special items. See footnotes for reconciliation.14Johnson Controls, plc. — May 4, 2022
BALANCE SHEET & FREE CASH FLOW*Disciplined Capital AllocationQ4 FY21Q1 FY22Q2 FY22DEBT & LIQUIDITYShort-term debt andcurrent portion of long-term debt 234 612 2,284 93% fixed rate debtLong-term debt7,5067,4377,366 2.9% weighted avg interest rateTotal debt7,7408,0499,650Less: cash and cashequivalents1,3361,2071,787Net debt* 6,404 6,842 7,863Capital Structure ( millions)Net Debt / EBITDA* 1.8B cash position BBB /Baa2 credit rating(S&P/Moody’s)11.8X1.9XQ4FY21Q1FY222.1X 3B undrawn credit facilities Target Net Debt/EBITDA 2.0-2.5XQ2FY22Free Cash Flow ( millions)Q2FY21Q2FY22H1FY21H1FY22FREE CASH FLOWCash from operating activities 645 (68) 1,160 324Capital expenditures(106)(125)(197)(260) Q2 Cash from Operating Activities down YoY due to temporarytax credit/other COVID tailwinds in FQ2 ’21 and higher workingcapital required to support growth 539 (193) 963 64 Trade Working Capital % of Sales down 50 bps YoY to 8.6%Reported FCF* Capex spend up 18% YoY in Q21 The security ratings set forth above are issued by unaffiliated third-party rating agencies and are not a recommendation to buy, sell orhold securities. The ratings may be subject to revision or withdrawal by the assigning rating organization at any time.*Non-GAAP figures. See footnotes for reconciliation.15Johnson Controls, plc. — May 4, 2022
FISCAL Q3 & 2022 GUIDANCE*Outlook Impacted by Temporary Supply Chain ChallengesFY 2022 Commentary Underlying market is continuing to improve Supply chain constraints / highly inflationaryenvironment expected to continue-Price/cost positive on EBITA-Price/cost & supply chain disruptions 150bps YoYheadwind Segment EBITA margin SG&A / COGS net savings of 230M Free cash flow conversion 90% Disciplined capital allocation- 1.4B of share repurchasesM&A pipeline acceleratingFQ3FY22OrganicRevenue HSD 8 to 10%Segment EBITAMargin(80) to (100)bpsAdjusted EPS 0.82 – 0.87Weighted-AverageShares 695MRevising EPS Guidance to 2.95 to 3.0511 to 15% Increase YOY* Non-GAAP excludes special items.16Johnson Controls, plc. — May 4, 2022(unchanged)0 to (30)bps( 50-60bps previously) 2.95 – 3.05( 3.22 – 3.32 previously) 700M( 704M previously)
Appendix
Additional FY 2022 Guidance ItemsFX HeadwindCorporate ExpenseAmortization ExpenseNFCTax RateNCIShares*Non-GAAP excludes special items. See footnotes for reconciliation.18Johnson Controls, plc. — May 4, 2022PriorCurrentRev: ( 300M) / EPS: ( 0.03)Rev: ( 400M) / EPS: ( 0.05) 280 – 290M 280 - 290M 450M 410M 230 – 240M 220 – 230M 13.5% 13.5% 240 – 265M 235 – 245M 704M 700M
FISCAL Q2 2022Consolidated Financial Results (Continuing Operations)( in millions, except earnings per share)Q2 FY21Q2 FY22GAAPNON-GAAPNON-GAAPQ2 FY22*% ChangeNON-GAAPSales 5,594 6,098 5,594 6,0989%Gross &A expenses1,2531,4541,4131,411Restructuring & impairment costs96384--Equity %10.0%Net financing charges4451445116%Income before income taxes60611049355713%Income tax provision20958667514%Net income3975242748213%Income attributable to noncontrolling interests54415441(24%)Net income attributable to JCI 343 11 373 44118%Diluted EPS 0.48 0.02 0.52 0.6321%GAAP% of salesEBIT margin*Non-GAAP excludes special items. See footnotes for reconciliation.19Johnson Controls, plc. — May 4, 2022Q2 FY21*0%
FISCAL Q2 2022Special Items (Continuing Operations) In millions, except EPSPre-tax Income(Expense)Tax (Expense)BenefitNCI (Expense)IncomeAfter-tax/NCIIncome (Expense)EPS ImpactMark-to-market adjustments (89) 21 - (68) (0.10)Restructuring & impairment costs(384)7-(377)(0.54)Acquisition related items(6)1-(5)(0.01)Silent-Aire earn-out 2) (447) 17 - (430) (0.61)Pre-tax Income(Expense)Tax (Expense)BenefitNCI (Expense)IncomeAfter-tax/NCIIncome (Expense)EPS Impact 209 (53) - 156 0.22(96)15-(81)(0.11)-(105)-(105)(0.15) 113 (143) - (30) (0.04)Q2 FY22Charges associated with suspension of operations in RussiaDiscrete income tax itemsTotal*Q2 FY21Mark-to-market adjustmentsRestructuring & impairment costsDiscrete income tax itemsTotal*Totals may not sum due to rounding20Johnson Controls, plc. — May 4, 2022
FY21 Re-casted Segment Results Effective at the start of fiscal2022, our Marine business,which was previously reportedacross Asia Pacific, GlobalProducts and EMEALA, is nowmanaged and reported underour EMEALA segmentThe table has been re-cast forthis changeQ1FY21ActualBT&S - North AmericaBT&S - EMEALABT&S - APACBT&S - Global ProductsBuildingsBT&S - North AmericaBT&S - EMEALABT&S - APACBT&S - Global ProductsSegment EBITANet Financing ChargesIncome before TaxTaxTax RateNon-Controlling InterestNet IncomeEPSShares*Non-GAAP excludes special items. See footnotes for reconciliation.Johnson Controls, plc. — May 4, tization of 12.1%12.0%(104)(67)471 4%12.7%(104)(70)537 .9%21.1%16.2%(109)(70)848 4%18.9%15.9%(108)(83)827 3,39813.9%10.3%13.1%17.1%14.4%(425)(290)2,683 3719.70.88717.02.65721.1
FY21 Proforma Service RevenueIn Q1FY22, the Company began reporting certain retrofit projects in EMEALA and APAC as products and systemsrevenue on a prospective basis as they have evolved to be more aligned with other install offerings. The below tableprovides proforma amounts for FY21 to reflect the exclusion of these retrofit projects for the periods presented.RevenueQ1FY21Q2FY21Q3FY21Q4FY21FY21 1,377(2%) 1,3980% 1,467 11% 1,521 4% 5,763 3%EMEALA Service: ProformaOrganic Growth* 417(1%) 407(2%) 427 13% 433(2%) 1,684 2%APAC Service: ProformaOrganic Growth* 168(1%) 171 1% 183 11% 184 1% 706 3%Total Service: ProformaOrganic Growth**Non-GAAP excludes special items.22Johnson Controls, plc. — May 4, 2022
Well on Our Way to FY24 TargetsBuilding Long-Term Shareholder ValueMSD SalesGrowth Acceleratedservice growthAbove marketproduct growthSecular trends250 to 300bpsOf MarginExpansion 100% FCFConversionStrong leverageSG&A / COGSprogram Continuedimprovementin WC as %of salesDisciplinedcapex 8B In CapitalDeploymentPotential Organicre-investmentAttractive dividendShare repurchaseM&AFY22 through FY24Targeting 1 To 2 Points of Top-Line Growth From M&ANote: Non-GAAP excludes special items.23Johnson Controls, plc. — May 4, 2022Double DigitAdjusted EPSGrowth Revenue growthAcceleratedmargin expansionCapitaldeployment
Ryan EdelmanVice President, Investor Relationsryan.edelman@jci.comIR ContactsMichael GatesSenior Director, Investor com
JOHNSON CONTROLS INTERNATIONAL PLCCONDENSED CONSOLIDATED STATEMENTS OF INCOME(in millions, except per share data; unaudited)Three Months Ended March 31,20222021Net salesCost of salesGross profit Selling, general and administrative expensesRestructuring and impairment costsNet financing chargesEquity income6,0984,1411,957 (1,454)(384)(51)42Income from continuing operations before income taxes5,5943,6511,943(1,253)(96)(44)56110606Income tax provision58209Income from continuing operations52397--Net income52397Less: Income from continuing operationsattributable to noncontrolling interests4154--Income from discontinued operations, net of taxLess: Income from discontinued operationsattributable to noncontrolling interestsNet income attributable to JCI 11 343Income from continuing operationsIncome from discontinued operations 11- 343-Net income attributable to JCI 11 343Diluted earnings per share from continuing operationsDiluted earnings per share from discontinued operationsDiluted earnings per share 0.020.02 0.480.48Diluted weighted average sharesShares outstanding at period end25 702.7695.7 721.3716.7
JOHNSON CONTROLS INTERNATIONAL PLCCONDENSED CONSOLIDATED STATEMENTS OF INCOME(in millions, except per share data; unaudited)Six Months Ended March 31,20222021Net salesCost of salesGross profit Selling, general and administrative expensesRestructuring and impairment costsNet financing chargesEquity income11,9608,1123,848 3)114Income from continuing operations before income taxes6001,039Income tax provision129270Income from continuing operations471769-1244718937999--Income from discontinued operations, net of taxNet incomeLess: Income from continuing operationsattributable to noncontrolling interestsLess: Income from discontinued operationsattributable to noncontrolling interestsNet income attributable to JCI 392 794Income from continuing operationsIncome from discontinued operations 392- 670124Net income attributable to JCI 392 794Diluted earnings per share from continuing operationsDiluted earnings per share from discontinued operationsDiluted earnings per share 0.560.56 0.930.171.10Diluted weighted average sharesShares outstanding at period end26 706.2695.7 723.9716.7
JOHNSON CONTROLS INTERNATIONAL PLCCONDENSED CONSOLIDATED STATEMENTS OF FINANCIAL POSITION(in millions; unaudited)March 31,2022ASSETSCash and cash equivalentsAccounts receivable - netInventoriesAssets held for saleOther current assetsCurrent assetsProperty, plant and equipment - netGoodwillOther intangible assets - netInvestments in partially-owned affiliatesNoncurrent assets held for saleOther noncurrent assetsTotal assetsLIABILITIES AND EQUITYShort-term debt and current portion of long-term debtAccounts payable and accrued expensesLiabilities held for saleOther current liabilitiesCurrent liabilitiesLong-term debtOther noncurrent liabilitiesNoncurrent liabilities held for saleShareholders' equity attributable to JCINoncontrolling interestsTotal liabilities and equity27 22816,5361,15242,991September 30,2021 890
JOHNSON CONTROLS INTERNATIONAL PLCCONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS(in millions; unaudited)Three Months Ended March 31,20222021Operating ActivitiesNet income from continuing operations attributable to JCIIncome from c
Johnson Controls, plc. — May 4, 2022 VECTORS OF GROWTH: DECARBONIZATION Leading in Sustainability - Providing a Path to Net Zero Energy price pressures including inflationary environment 2 are fueling sustainability action United Nations: Finance gaps are slowing recovery and sustainable development 3. Johnson Controls as-a-service
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