1. Johnson Controls1 Going Green – Opportunities and Challenges Automotive News World Congress – 2008 January 22, 2008 Mary Ann Wright Chief Executive Officer Johnson Controls - Saft Advanced Power Solutions LLC

2. Johnson Controls2 Johnson Controls has been in the Energy Efficiency Business for 122 Years North America 52% Power Solutions World’s largest manufacturer of lead-acid automotive batteries 97% Lead Recycling Rate The leading independent supplier of fully integrated battery 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

3. Johnson Controls3 Transportation Sustainability – the Challenges are Well Known Economic Disruption Oil to reach $100/barrel by end of '08 Tuesday October 2, 2007 @ 4:29 pm ET By Adam Schreck, AP Business Writer FROM: http://biz.yahoo.com/ap/071002/100_oil_outlook.html?.v=1 Energy Security Environmental Risk http://www.maf.govt.nz/mafnet/rural- nz/sustainable-resource- use/climate/impact-on- industries/greenhouse.jpg Resource Impact

4. Johnson Controls4 Globally, the Transportation Sector Accounts for 24% of all CO 2 Emissions A mid-size automobile driven 24,000 km per year will emit approximately 5 metric tons of CO 2 annually Some forecasts project that the current global population of 700 million automobiles could reach 1.2 billion by 2030 In absence of significant improvements in powertrain efficiencies, annual CO 2 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

5. Johnson Controls5 A Spectrum of Technologies can Reduce Oil Consumption and CO 2 Emissions Hybrid and electric technologies significantly improve overall vehicle efficiency Energy Efficiency is the Lowest Total Cost Strategy for CO 2 Abatement

6. Johnson Controls6 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 braking and 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 There are Multiple Types of Hybrids…

7. Johnson Controls7 There are Multiple Types of Hybrids… Plug-In Hybrid (PHEV) High voltage Includes all full hybrid features PLUS electric-only operation for ~20 miles Ability to recharge battery through 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

8. Johnson Controls8 Micro Hybrid Vehicle Fleets Mild Hybrid Vehicle Fleets Full Hybrid Vehicle Fleets PHEV Vehicle Fleets Battery Innovation “Fuels” the Drive To Sustainable Transportation Technology Phased Technology Roll-out and Commercialization Fuel Efficiency & CO 2 Reduction Benefit Pure Electric Vehicle Fleets 5-8% 12-20% 25-40% 60%- 100% 100% Commercially Available Under Development Available NOW

9. Johnson Controls9 Incremental Steps 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 43 Million Automobiles Hybridization achieving a 20% MPG improvement in ¼ of the new vehicles Reduced CO 2 Emissions of 215 Million Metric Tons

10. Johnson Controls10 Nickel Metal Hydride is today’s battery technology Li-Ion is the target of every OEM as the obvious next step battery solution WHY? { 30% Smaller 50% Lighter 30% Smaller More Energy More Powerful Faster Recharge Enhanced Cycle Life Li-Ion is the Next Battery Technology for Hybrid Vehicles

11. Johnson Controls11 Hybrid Batteries – A Very Complex System Mechanical SubsystemElectrochemistry/Cell ElectronicsSoftware Electrical SubsystemThermal Management Subsystem Cell Manufacturing JIT System Assembly

12. Johnson Controls12 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 CO 2 sequestration Innovation is the key, both technically and commercially Critical Challenges to PHEV Commercialization

13. Johnson Controls13 Life Testing at Southern California Edison: 78% DOD under 40°C Ambient Temperature Initial Test Results from PHEV Application are Encouraging 120K+ Miles Equivalent

14. Johnson Controls14 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 Critical Challenges for the Transportation and Battery Industries

15. Johnson Controls15 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

16. Johnson Controls16 Johnson Controls Global Footprint Bordeaux, France Li-Ion Pilot Line & Research Lab Milwaukee, US Li-Ion Lab Hannover, Germany System Integration Nersac, France NiMH & Li-Ion Production Line Pontoise, France BMS NiMH & Li- Ion Shanghai, PRC Development Facility New Milwaukee Test Facility Opened October 2007

17. Johnson Controls17 The Future Without Hybrids?