International Assignment Services IAS Overview International Assignment Services

Our Mission…How we fit into the big picture International Assignment Services Our Mission…How we fit into the big picture Expatriate program purpose & philosophy Purpose Transfer unique skills & knowledge Address need for managerial expertise Career development for high potentials Philosophy 2-5 years assignment Compensation structured for equity in home country No financial windfall or harm to assignee Shared responsibility for successful assignment Competitive policy which reflects market median Costs managed through use of efficient purchaser COLA index, maximizing tax planning opportunities & minimizing exceptions

International Assignment Services What We Do… We coordinate all aspects of international transfers of employees and their families for all Johnson Controls business units. The IAS team serves as the centralized point of contact for the employee and the service providers. The IAS team: Prepares cost projections for the assignment Provides counsel on the Global Assignment Policy Coordinates relocation of the employee Coordinates immigration assistance for the employee Coordinates tax assistance for the employee Prepares a balance sheet showing compensation for the employee Administers compensation changes and manages monthly pay for the employee Collects Home and Host compensation for the employee’s taxes

IAS life cycle International Assignment Services Life Cycle Host country tax clearance - Deloitte Coordinate repat services - IAS Initiate payroll changes - IAS Process final allowances - IAS Year-end comp and tax return preparations as needed - Deloitte Assignment cost projection – IAS Compensation package development – Home and Host Mgmt, IAS Tax and payroll planning – IAS, Deloitte, Host HR Provide counsel on assignment policy Assignment Planning Assignee Selection Assignment Start Payroll Initiation Pre-Departure Services Year-End Compensation and Tax Preparation/ Consulting Ongoing Assignment Administration Repatriation Post-Assignment Services International Assignment Services Life Cycle Assignment initiation process – Home and Host Mgmt Coordinate selection/assessment of assignee – Home and Host Mgmt Home/host country data collection – IAS Compensation summaries and tax reporting reconciliations - Deloitte Tax return preparation (home/host) - Deloitte Tax equalization calculations, tracking and follow-up – Deloitte, IAS Hypothetical tax calc updates Assignment letter development – IAS, Home and Host HR and Mgmt Coordinate immigration/visa process – IAS Coordinate relocation services – IAS Conduct Assignee and Tax orientations – IAS, Deloitte Process social security waiver application – IAS, Host HR Coordinate benefits admin set-up – IAS Follow-up on orientation/exception issues Home/host payroll coordination – IAS, Host HR Invoice/expense processing – IAS, Host HR Third party vendor management – IAS Policy administration/exception process as needed – IAS, HR VPs Assignee support and communication – IAS, Home and Host Mgmt and HR HR and Tax management reporting (e.g. budget/actual costing, headcount, status, etc.) – IAS, Home and Host Mgmt and HR Initiate payroll process/home and host countries – IAS, Host HR Host country tax orientation – Deloitte Coordinate on-site services as needed – IAS, Host HR

Who We Impact…Who Impacts Us International Assignment Services Who We Impact…Who Impacts Us Our interactions include: Employees going on assignment, their Home and Host H.R. Managers, their Home and Host Work Managers, their Home and Host Vice President’s of H.R. A variety of JCI departments: Corporate & Business Unit Compensation Global Compensation Corporate & Global Business Unit Human Resources Benefits and Payroll Legal Shareholder Services Accounting Treasury IT Outside Suppliers GMAC GRS, Deloitte, Fragomen, Foley & Lardner, CIGNA, ORC, ECA, International SOS, BCBSIL, Caremark, Hewitt