CEC Workshop Perspectives from Johnson Controls

1. Mexico City, October 2012 CEC Workshop Perspectives from Johnson Controls

2. About Johnson ControlsThe Company & Our Sustainability Commitment

3. Power SolutionsProfile Today 2011 sales ~$6 B The world‘s largest provider of battery power solutions for the vehicle original equipment and aftermarket • World-class customer base in the automotive aftermarket • Original equipment (OE) batteries for the top automakers worldwide • Leader in advanced battery technologies • AGM batteries for Start-Stop vehicles • First-to-market provider of Li-Ion batteries for hybrid applications • 30 manufacturing facilities • Over 13,000 employees Europe Americas Asia

4. Market LandscapePower Solutions View Closed Loop Battery Maker Distributor Retailer Warehouse Recycler “Open” Loops Consumer Scrap Dealer Miner/Smelter Traders

5. Making the Market WorkContinuous Improvement and Progress Technologies & Operations Regulatory Targets Enforcement Protocols &Processes

6. Power Solutions Closed Loop ManagementResponsible Handling Through End-to-End Core Control Domestic Management • Domestic Handling through a reverse logistics distribution network with Master Distributors to collect 1-1 – • SLAB fee is charged through the distribution network of new batteries to motivate the return of cores. • JCI developed in 2007 a Hazardous Waste Management Plan, in collaboration with SEMARNAT. ( First company to do it) • Approved and registered by authority and aligned with the Law For Prevention, and Integral Management of Waste. • Customers must be registered by SEMARNAT, warehouses must meet several requirements to keep the SLABS under safe conditions. • Our Distributors and JCI must keep a record of ALL core loads and collections and send reports to SEMARNAT once per year • Spent batteries must be packed according to a specific procedure

7. Red de Distribución Recycling ProcessStorage – Summary of Requirements MasterDistributors Used batteries are packed on pallets and identified Identification Area Hazardous waste warning Fire Extinguisher Trained personnel with security equipment • Environmental Permit & Insurance Contingencyequipment (Neutralizer, etc.) RetentionContainer Floor with epoxy resin Acid retainer canal

8. Power Solutions Closed Loop ManagementResponsible Handling Through End-to-End Core Control Import Management • US JCI DC’s hold Acknowledgment of Consent, issued by US EPA , for exporting SLABs to JCI recycling centers in Mexico. • Reports to EPA are submitted on an annual basis about what is exported • Border facilities have appropriate registration from EPA, City Environmental and DOT authorities. • Recycling facilities holds permits for cores importation from JCI locations in US, issued by SEMARNAT • PROFEPA checks all loads documents and randomly inspects inside the trailer. • Only approved carriers are used, these carriers must have environmental insurance and driver must be qualified for haz-mat transportation • We leverage information technologies for inventory management, security and pallet traceability capability

9. Power Solutions RecyclingEnvironmental Control Technology • Enclosed operations under negative pressure • Wastewater and storm water treatment systems • Sulfur removal before lead recovery • Fugitive Emissions Management • Process Emissions Management • Monitoring Systems • Employee Exposure Protocols • Innovation and Continuous Improvement – Across the Board Technologies & Operations Recycler

10. Thank youGracias Merci