Going Green – Opportunities and Challenges

1. Going Green – Opportunities and Challenges Automotive News World Congress – 2008 January 22, 2008 Mary Ann WrightChief Executive Officer Johnson Controls - Saft Advanced Power Solutions LLC Johnson Controls

2. Johnson Controls has been in the Energy Efficiency Business for 122 Years • Power Solutions • World’s largest manufacturer of lead-acid automotive batteries • 97% Lead Recycling Rate • The leading independent supplier of fully integratedbattery systems for hybrid and electric vehicles • Sold 400,000 AGM lead-acid batteries for micro-hybrids in 2007 • Building Efficiency • World’s largest provider of energy efficiency and comfort solutions involving heating, cooling, fire, security, and lighting • Automotive Experience • World’s largest provider of automotive interiors, including seats, door systems, cockpits, overhead systems, and electronics North America 52% Johnson Controls

3. Transportation Sustainability – the Challenges are Well Known Oil to reach $100/barrel by end of '08 Tuesday October 2, 2007 @ 4:29 pm ET By Adam Schreck, AP Business WriterFROM: http://biz.yahoo.com/ap/071002/100_oil_outlook.html?.v=1 Economic Disruption Energy Security Environmental Risk Resource Impact http://www.maf.govt.nz/mafnet/rural-nz/sustainable-resource-use/climate/impact-on-industries/greenhouse.jpg Johnson Controls

4. Globally, the Transportation Sector Accounts for 24% of all CO2 Emissions • A mid-size automobile driven 24,000 km per year will emit approximately 5 metric tons of CO2 annually • Some forecasts project that the current global population of 700 million automobiles could reach 1.2 billion by 2030 • In absence of significant improvementsin powertrain efficiencies, annual CO2 emissions from the transportation sector could exceed 10 billion metric tons by 2030 • The non-OECD countries will account for the majority of this increase, about 60% • Non-OECD Countries • Brazil • China • India • Russia Johnson Controls

5. A Spectrum of Technologies can Reduce Oil Consumption and CO2 Emissions Energy Efficiency is the Lowest Total Cost Strategy for CO2 Abatement Hybrid and electric technologies significantly improve overall vehicle efficiency Johnson Controls

6. There are Multiple Types of Hybrids… Types of Hybrid Electric Vehicle (HEVs) Micro (a.k.a Stop/Start) • Low voltage • Shuts down engine at idle to save fuel • Example: BMW 1,3 mini series – JCI is the world leader in AGM micro hybrid batteries Mild • Low to medium voltage • Includes stop-start, regeneration brakingand acceleration assist • Example: GM Saturn VUE Full hybrids • High voltage • Includes all mild HEV features PLUS electric-only operating range and optionally,multiple axle electric drive • Example: Ford Escape Johnson Controls

7. There are Multiple Types of Hybrids… Plug-In Hybrid (PHEV) • High voltage • Includes all full hybrid features PLUSelectric-only operation for ~20 miles • Ability to recharge batterythrough 120V electrical outlet(in addition to regenerative braking) • Demonstration vehicles: GM Saturn VUE, Dodge Transit, Ford Escape Electric Vehicle • High voltage • No internal combustion engine • Recharge battery through 120V electrical outlet • No models in production Fuel Cells • High Voltage • No internal combustion engine • Full gas hybrid functionality • Demonstration vehicles:Daimler, Ford, Honda, Toyota Johnson Controls

8. Battery Innovation “Fuels” the Drive To Sustainable Transportation Technology Available NOW Pure Electric Vehicle Fleets PHEV Vehicle Fleets Full Hybrid Vehicle Fleets Mild Hybrid Vehicle Fleets 100% Micro Hybrid Vehicle Fleets 60%- 100% Fuel Efficiency & CO2 Reduction Benefit 25-40% 12-20% Commercially Available 5-8% Under Development Phased Technology Roll-out and Commercialization Johnson Controls

9. IncrementalSteps Can Have a Significant Impact Mild hybridization of just 25 percent of the new vehicle fleet over the next 23 years would have the equivalent emissions impact of eliminating 6 percent of the current global automobile fleet Reduced CO2 Emissions of 215 Million Metric Tons 43 Million Automobiles Hybridization achieving a 20% MPG improvement in ¼ of the new vehicles Johnson Controls

10. { 30% Smaller 50% Lighter More Powerful WHY? Faster Recharge More Energy Enhanced Cycle Life 30% Smaller Li-Ion is the Next Battery Technology for Hybrid Vehicles Nickel Metal Hydride is today’s battery technology Li-Ion is the target of every OEM as the obvious next step battery solution Johnson Controls

11. Hybrid Batteries – A Very Complex System Mechanical Subsystem Electrochemistry/Cell Cell Manufacturing Electronics Software JIT System Assembly Electrical Subsystem Thermal Management Subsystem Johnson Controls

12. Critical Challenges to PHEV Commercialization Validation of system level performance: • OEM requirements • Regulatory requirements • Life • Abuse Tolerance Identifying the “Value Proposition” • Petroleum versus electricity costs • Public policy incentives • Involvement by all stakeholders • Cost impact of regulatory requirements • Battery secondary use potential • Comprehensive understanding of V2B/V2G economics/challenges • Regulatory motivation beyond California Understanding energy security versus environmental impact • Broad use of PHEVs will require rationalization of the utilities fuel base • More coal will require CO2 sequestration Innovation is the key, both technically and commercially Johnson Controls

13. Initial Test Results from PHEV Application are Encouraging 120K+ Miles Equivalent Life Testing at Southern California Edison: 78% DOD under 40°C Ambient Temperature Johnson Controls

14. Critical Challenges for the Transportation and Battery Industries • Cost • Economies of scale • Diverse/capable supply base and access to secure supplies of strategic materials • Legislative and policy alignment with technology and market development needs Technology • Technology advancements for PHEVs with demonstrated safety • Advanced manufacturing technologies • Infrastructure • Recycling and Battery recharging infrastructure (plug-ins) • Common engineering standards for HEV powertrains • Transportation regulations for shipment of large battery systems • Technical skill sets - Renewed emphasis on technical education in the United States • Software engineering • Electrochemistry/Materials science • Electrical engineering • Mechanical/Thermal engineering Johnson Controls

15. Energy Bill - Key Transportation Provisions • CAFE increase to 35 mpg fleet average by 2020 vs. current 25 mpg • Promote development and manufacturing of advanced batteries • Expanded R&D • Technology and vehicle demonstration • Federal fleet conservation program • Encourage PHEV and electric drive vehicle fleet at state and local levels • Domestic manufacturing incentives • Secondary applications and recycling • Technical education Johnson Controls

16. Johnson Controls Global Footprint Nersac, France NiMH & Li-Ion Production Line Bordeaux, France Li-Ion Pilot Line & Research Lab Hannover, Germany System Integration Milwaukee, US Li-Ion Lab Pontoise, France BMS NiMH & Li-Ion Shanghai, PRC Development Facility New Milwaukee Test Facility Opened October 2007 Johnson Controls

17. The Future Without Hybrids? Johnson Controls