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Growth In Ever Dimension011 Business and Sustainabilit Report 0302

$40.8billion revenue

Letter to

Stakeholders2011 was a year of continued growthand success for Johnson Controls. We

reached a significant milestone for financial

performance, surpassing $40 billion in

revenue. We also achieved record earnings

of $1.7 billion. Notably, Johnson Controls

has produced year-over-year revenue

growth for 64 of the past 65 years, posted

earnings gains in 20 of the past 21 years,

and continued our track record of paying

consecutive dividends since 1887.

In 2011, all three of our businesses

Automotive Experience, Building Efficiency

and Power Solutionsgrew at a double-digit

rate, gained market share and outpaced their

respective industry growth rates. Entering

2012, we have good momentum with a

record $5.1 billion backlog of new business for

Building Efficiency, and a $4.2 billion backlogof new business for Automotive Experience

that will launch over the next three years.

Also in 2011, we continued our leadership position in sustainability, social responsibility

and the environment. Corporate Responsibilitymagazine recognized Johnson Controls as #1

among the 100 Best Corporate Citizens in the United States and Ethispheremagazine named

Johnson Controls one of the Worlds Most Ethical Companies for the fifth consecutive year.

We are recognized on many of the prestigious social investor indices, including the Dow Jones

Sustainability World and North America indices. Our engagement continues with non-govern-

mental organizations and other experts to develop new approaches to improve our performance

and stewardship while assisting our suppliers and customers to advance their positions.

Over the past year, we have grown by 25,000 employees to 162,000 globally with the

majority of that increase coming from organic growth. I am proud of all of our employees

around the world for their commitment and focus on the values that drive and sus tain our

long-term economic, social and environmental success.

Diversification Drives Sustainable, Profitable Growth

Johnson Controls ability to deliver sustainable, profitable growth is driven by our long-

term strategies, ability to execute plans, and our diversification through three businesses that

are market leaders in their respective industries. Each has demonstrated the ability to grow

significantly faster than its industry growth rate.

Our customers range from original equipment manufacturers to aftermarket retailers in the

automotive sector to public- and private-sector customers across multiple vertical markets in

our Building Efficiency business. Our diversification has given us the ability to offset business

and market challenges and successfully drive sustained growth.

We serve customers in more than 150 countries, with a strong presence in growth markets

across Asia, the Middle East and Latin America. Our non-consolidated Automotive Experience

joint ventures in China generate $4 billion in revenue through the supply of automotive interior

products for vehicles sold within the country. We also have aligned our footprint and production

platforms with those of our customers. In the automotive industry, manufacturers increasingly

are designing vehicles for consumers globally. To meet our customers needs, our Automotive

Experience design centers and production facilities are positioned across multiple continents.

Power Solutions operates 50 manufacturing, recycling and distribution facilities throughout the

world to serve automakers and aftermarket retailers. Our Building Efficiency business serves

over one million buildings around the world.

We reached a significant milestonefor financial performance, surpassing$40 billion in revenue. We also achievedrecord earnings of $1.7 billion.

Stephen A. Roell

Chairman, President and

Chief Executive Officer


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Growth In Ever Dimension011 Business and Sustainabilit Report 0504

$1.3billion in capitalinvestments

Financial Strength to Invest in Organic Growth

Our growth is supported by a strong balance sheet allowing us to make strategic investments

in our businesses. This past year, we made record capital investments of $1.3 billion to deliver

long-term growth. Much of that investment was targeted in Power Solutions across three

growth platforms: expansion and vertical integration, which includes recycling, in our traditional

battery business; emerging markets such as China; and advanced battery technology capabilities

and capacity.

We plan to invest $1.7 billion in 2012, nearly three-quarters of which is targeted for growth

and margin-expansion initiatives, such as increasing our capacity in emerging markets, supporting

new business awarded to Automotive Experience, and deploying Absorbent Glass Mat (AGM)

battery technology for Start-Stop vehicles in Power Solutions. We expect to sustain a high level

of capital investment for the foreseeable future and make additional non-capital investments in

innovation, engineering, and sales and service forces.

Central to our growth is our focus on innovation and longstanding commitment to our

customers. We will continue to seek out new ways to enhance and improve quality and develop

innovative products and solutions that will help our customers succeed.

Strategic Acquisitions with Strong Pabacks

In addition to capital investments to drive organic growth, we made $1.4 billion in strategic

acquisitions in 2011, primarily across our automotive business.

Automotive Experience acquired German companies C. Rob. Hammerstein and Keiper/Recaro

Automotive to offer automakers a complete range of metal components and mechanisms. We also

acquired Michel Thierry, a respected France-based supplier of fabrics and trim. These acquisitions

have enhanced our technology capabilities and are expected to yield significant paybacks in 2012.

Power Solutions purchased Safts share of our lithium-ion battery joint venture, reflecting

our commitment to being a leader in the advanced battery space. The acquisition enables us to

expand our capabilities across technology, systems, applications and business models.

Acquisitions will continue to be an important part of our overall business strategy, serving

as platforms for driving future growth.

Leadership Additions to a Strong Team

We are pleased that two leaders joined Johnson Controls during the year. Mark P. Vergnano,

an executive vice president with DuPont, was elected to our Board of Directors in November

2011. Mark has held a variety of leadership positions during his 31-year career with DuPont and

has responsibility for the companys Building Innovations, Protection Technologies, Sustainable

Solutions, and Electronics & Communications businesses, among others. We look forward to his

counsel and depth of experience on our Board.

In addition, Bill Jackson joined our Executive Leadership Team as executive vice president,

operations and innovation and was elected a corporate off icer. Bill brings more than two

decades of automotive industry experience. He will lead our margin expansion activities and

further engage our organization in continuous improvement and innovation.

Growth Outlook for 2012 and Beond

Looking at the macro-economic environment as we enter 2012, we see uncertainty regarding

the pace of the global recovery. Although automotive production in Europe is expected to be

level to down slightly year-over-year, North American production is forecast to grow at a high

single-digit rate. We continue to see growth opportunities in emerging markets, especially

China. The adoption of AGM battery technology for Start-Stop vehicles represents a significant

opportunity for us, with strong demand in Europe and emerging demand in the United States

and China. The building markets in Europe and North America are expected to remain challenged.

Overall, we are forecasting modestly higher global automotive production levels, growth

in emerging geographic markets and market share gains for each of our businesses. With

strong momentum and backlogs in our automotive and buildings businesses and the underlying

strength of the battery market, we expect each of our businesses to deliver sales and earnings

improvements in 2012. Operational improvements are also expected to drive margin gains across

the company. We are confident we will achieve another record year in 2012.

Longer term, our objective is to grow profitably faster than our underlying industries with

year-over-year earnings growth of 10 percent to 15 percent. Our diversification, financial strength,

and commitment to our customers position us for sustainable growth well into this decade.

We appreciate the trust that you place in us as our valued stakeholders.

Sincerely,

Stephen A. Roell

Chairman, President and Chief Executive Officer


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Growth In Ever Dimensionconomic Prosperit 0706

16%

increase in 2011 revenue

$

1.7billion net income EconomicProsperit

Johnson Controls achieved

record financial results in

fiscal 2011 as revenue increased

19 percent to $40.8 billion and

net income increased 22 percent

to $1.7 billion. Our three

global businessesAutomotive

Experience, Building Efficiency

and Power Solutionsgrew at

a double-digit rate and segment

income increased 23 percent.

We continue to invest in the

long-term growth of our

business, making $2.7 billion

in acquisitions and capital

investments during the year.

Building Efficiency

2011 Performance

Our Building Efficiency business achieved a 16 percent increase in revenue and a 12 percent

increase in segment income due to higher sales volumes across all business segments and strong

emerging market growth. Building Efficiency accounted for 37 percent of Johnson Controls net

consolidated revenue in 2011.

Investing in Future Growth

During the year, Building Efficiency acquired EnergyConnect Group, a leading provider of

smart grid demand response services and technologies. The acquisition enables Johnson Controls

to help building owners and operators manage how much energy their buildings consume andwhen the energy is consumeda critical feature of connecting smart buildings to the smart grid.

EnergyConnects demand response technology and service platform provides customers real-

time energy information and access to energy markets, enabling them to manage energy usage.


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Growth In Ever Dimensionconomic Prosperit 0908

Sales by Region

28% Europe

48% North America

14% Asia

10% Rest of World

Sales by Region

37% North America

51% Europe

12% Asia*

Sales by Region

26% Europe

69% Americas

5% Asia

a u t o m o t i v e e x p e r i e n c e

Johnson Controls Atomotive Eperience is aglobal leader in atomotive seating, overheadsystems, door and instrment panels, and interiorelectronics. We spport all major atomakers inthe differentiation of their vehicles throgh orprodcts, technologies and advanced manfac-tring capabilities. With more than 200 plantsworldwide, we are where or cstomers need sto be. Consmers have enjoyed the comfort and

style of or prodcts, from single components tocomplete interiors. With or global capability wespply more than 30 million cars per year.

B u i l d i n g e f f i c i e n c y

Johnson Controls Bilding Efficiency deliversprodcts, services and soltions that increaseenergy efficiency and lower operating costs inbildings for more than one million cstomers.Operating from 500 branch offices in morethan 150 contries, we are a leading providerof eqipment, controls and services for heating,ventilating, air-conditioning, refrigeration andsecrity systems. We have been involved in morethan 500 renewable energy projects incldingsolar, wind and geothermal technologies. Orsoltions have redced carbon dioide emissionsby 16 million metric tons and generated savingsof $19 billion since 2000. Many of the worldslargest companies rely on s to manage 1.5 billionsqare feet of their commercial real estate.

p o w e r s o l u t i o n s

Johnson Controls Power Soltions is the globalleader in lead-acid atomotive batteries andadvanced batteries for Start-Stop, hybrid and elec-tric vehicles. Or 50 manfactring, recycling anddistribtion centers spply more than one-thirdof the worlds lead-acid batteries to major ato-makers and aftermarket retailers. Throgh orinnovations we are bilding the advanced batteryindstry for hybrid and electric vehicles. We werethe first company in the world to prodce lithim-ion batteries for mass-prodction hybrid vehicles.Or commitment to sstainability is evidenced byor world-class technology, manfactring andrecycling capabilities.

p & s

> Energy ef ficiency and sstainability soltions

> Facilities and real estate management

> Bilding management systems

> Secrity and fire safety soltions

> Commercial and residential heating, ventilatingand air-conditioning (HVAC) systems

> Technical bilding services inclding a frontlineteam of 15,000 service providers

> Commercial and indstrial refrigeration

w a H

> Carbon Trst Standard Award

> Eropean Spply Chain Distinction Awards,Best Vale Chain Soltions Provider

> Workplace Safety and Health Concil,BizSAFE Partner

> Construction WeekMagazine,Top 25 Innovators

mj B

> Metasys

> York

> Sabroe

> Frick

> Panopti

p & s

> Complete seat systems

> Seat components inclding seat strctresand mechanisms, foam, fabric and trim

> Cockpits, instrment panels and floor consoles

> Door panels

> Overhead systems inclding headliners, snvisors and overhead consoles

> Components and systems for driver information,infotainment and body electronics

w a H

> Nissan Global Innovation Award

> Toyota Spplier AwardsVale Improvementand Technology and Development

> Toyota Spplier AwardsSpplier Diversity& Qality

> Automotive News Europe, Erostar Awardfor Spplier Division Head

> J.D. Power and Associates Highest Qality

Seat Spplier

mj B

> RECARO

> BleConnect

> HomeLink

> KEIPER Tamel 3000Recliners

> KEIPER Lever 3000

p & s

> Lead-acid starter batteries for passenger cars,light trcks and tility vehicles

> Absorbent Glass Mat batteries for Start-Stopvehicles and other deep-cycling applications

> Lithim-ion atomotive batteries for hybrid andelectric passenger cars and commercial trcks

> Specialty batteries for marine applications,motorcycles, lawn mowers and golf carts

> PowerFrame grid technology

> ecosteps sed battery collection program

w a H

> Edison Best New Prodct Award

> General Motors Spplier of the Year Award

> Volkswagen Grop Award

> Interstate Battery Systems of AmericaService Ecellence Award

> YiQi Toyota, Safety and Qality Award

> AtoZone of Meico, What it Takes todo the Job Right Award

mj B

> VARTA

> OPTIMA

> LTH

> Heliar

O u R B u S I N E S S E S A T A G L A N C E

*Ecldes non-consolidated joint ventres in China.


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8/30

Growth In Ever Dimensionconomic Prosperit 12 13

$134million inenerg savings

Serving Customers on All Seven Continents

Building Efficiency now has customers on all seven continents. A multi-national team is

helping to equip a new research center in Antarctica with a Metasys building management

system. The system will be installed at the Bharati research station, a new base for Indias

National Centre for Antarctic and Ocean Research (NCAOR). It will be used for studies in polar,

oceanic and atmospheric sciences.

Guaranteeing $134 Million in Energ Savings

Aberdeen Proving Ground in Maryland is a 94-year-old U.S. Army installation with an executive

order to cut energy use by 30 percent by 2015. To meet this challenge, the U.S. Army is partnering with

Johnson Controls to upgrade buildings across its 72,500-acre testing, research and training installation.

Our Building Efficiency business is making laboratories, work spaces and living environmentsmore energy efficient. This includes advanced utility metering, high-efficiency lighting and the

installation of Metasys to monitor and control building systems. The installation is expected to

reap $134 million in energy savings over the next 20 years. Expected greenhouse gas emission

reductions will be 26,500 tons annuallythe equivalent of taking more than 4,700 vehicles off

the road. Through performance contracts, Johnson Controls is guaranteeing the energy savings,

which offset the expense of the projects.

Making Sports Venues More Efficient

Were fans of making sports facilities more efficient and safe. Major League Baseballs Miami

Marlins and Miami-Dade County selected our Building Efficiency group to operate and maintain

the teams new eco-conscious ballpark. Were also working with the Brazilian Ministry of Sports to

design and install advanced, integrated security systems for 12 major soccer stadiums throughout

the country, including two stadiums that will be venues for the 2014 FIFA World Cup. The project

will include the design and implementation of access control systems for a large number of fans,

video surveillance and ticket systems for the stadiums.

Expansion of the Hol Mosque

Our Building Efficiency business signed a contract for the expansion of the Holy Mosque

in Makkah, Saudi Arabia. The contract will provide an integrated building management systemincluding state-of-the-art heating, ventilation and air-conditioning (HVAC) for the expansion of the

Holy Mosque. The contract includes the installation of 27 York chillers to produce one of the most

efficient and sustainable facilities of its kind in the world. Built in the 7th century, the Holy Mosque

has been modified, rebuilt and expanded to accommodate more than one million worshippers.

The U.S. Army is partnering with Johnson Controls to upgrade buildings across its Aberdeen

Proving Ground, a 72,500-acre testing, research and training installation in Maryland.

Our Building Efficiency business is overseeing operations and maintenance of the

new eco-conscious ballpark of Major League Baseballs Miami Marlins.


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21%growth in 2011 revenue

Automotive Experience

2011 Performance

Our Automotive Experience business produced strong results, as revenue and segment income

increased 21 percent and 36 percent, respectively, mainly due to higher automobile production

volumes globally and the impact from several acquisitions made during the year. Automotive

Experience accounted for 49 percent of Johnson Controls net consolidated revenue in 2011.


In 2011, we completed three acquisitions that are expected to bring improved technologies

to our global customers and drive the accelerated growth and profitability of our Automotive

Experience business.

We completed the acquisitions of German companies Keiper/Recaro Automotive and C. Rob.

Hammerstein (CRH), elevating Johnson Controls to a leading position globally in the metal and

mechanisms market.

Keiper is a leader in recliner system technology with engineering and manufacturing

expertise in metals and mechanisms for automobile seats. The acquisition strengthens our

competitive position in key seating components with expanded opportunities to develop new

products and technologies.

CRH is a leading global supplier of high-quality metal seat structures, components and

mechanisms. CRHs strong product portfolio and customer base in the premium segment

complements our existing product portfolio, which is primarily comprised of vehicle segments

with high production volumes.

Our Automotive Experience business also provides seat trim covers. In 2011, we acquired

Michel Thierry, a highly respected supplier of fabrics and lamination based in France. This will

help Johnson Controls become a leader in textiles and trim for our automotive customers.

We completed three acquisitionsthat are expected to bring improvedtechnologies to our global customers

An employee prepares a headliner for overhead system assembly.


10/30


Technolog and Innovation are Ke Differentiators

Technology and innovation are increasingly important in differentiating our productsfrom competitors and driving profitable growth for our business. We have increased the

breadth of our technology competencies through acquisitions and the expansion of our global

Technology and Advanced Development Group, which has developed a number of innovative

products and concepts.

In September 2011, Automotive Experience introduced a modular front seat structure,

believed to be the lowest-weight structure of its kind on the market. Lightweight seats help

improve vehicle fuel consumption and reduce CO2 emissions. The seat structure represents our

first product under the combined expertise of Johnson Controls, CRH and Keiper. More than 30

versions of the product will be made for the European Daimler AG vehicle platform.

Our Automotive Experience team also has created an Open Innovation website to allow out-

side inventors to more easily share their technology ideas with us. We believe that by partnering

with external technology providers, we can accelerate product development and innovation.

Growth through Innovation:3 d vh: B v s cIn 2011, we introdced or ie:3 demonstrator vehicle at ato shows in Detroit, Shanghaiand Frankfrt. The ie:3 is a small, flly electric prototype vehicle that showcases orlatest capabilities and technologies, inclding interior and battery soltions that improvefleibility, spaciosness and sstainability.

The ie:3 featres a net-generation, low-profile lithim-ion battery pack, enabling a target

100-mile range per charge. The new prismatic format cell achieves greater packagingefficiency and ses less space in the vehicle. The improved spaciosness enables a flatfloor for additional featres, sch as stadim seating that offers enogh space to stowa sitcase and a center console spacios enogh to accommodate a large handbag.

In terms of sstainability, the ie:3 seats five passengers, offers seat pads made fromnatral fibers that are easier to recycle, and featres a lightweight alternative sondsystem and headliner with integrated adio. For driver safety, the vehicle incldes acomprehensive driver information system featring a 6.5-inch transflective clsterdisplay, which improves visibility even with the glare of snlight, and a transparent,integrated heads-p display.

The ie:3 is different from most other concept cars in that many of the componentsalready are available for model-year 2015 and beyond.

s c wh d sWe are working to create an in-vehicle connectivity soltion that allows consmersto intitively connect to their information and entertainment preferences with a safedriving environment.

In 2011 we nveiled or Connected Center Stack, which helps consmers connect theirelectronic prodcts and applications to their vehicle. The prodct featres: natral langagespeech recognition; hands-free phone sage, inclding voice dialing, phone book down-loads, phone book image transfer and tet/e-mail messaging sing tet to speech; msic

playback for MP3 players, fla sh devices or mobile phones; and access to poplar phoneapplications. It also provides connectivity to Johnson Controls-developed phone applica-tions, enabling consmers to access vehicle information and pdate vehicle software.

50 m r lk Hlk vFor more than 15 years, or HomeLink Wireless Control System has helped 50 millionconsmers eperience convenience, comfort and peace of mind. HomeLink is a vehicle-based control system that allows drivers to remotely activate garage door openers, entrydoor locks, home lighting, secrity systems, entry gates and other prodcts.

In 2011, we introdced HomeLink V, or net-generation prodct. HomeLink V featresthe ability to not only transmit, bt also to receive information. This allows the system toprovide feedback on previos commands, sch as when a garage door was last openedor confirm whether it has been closed. It also is easier to program sing a featre thatprovides instrctions on an in-vehicle display. HomeLink V is lighter in weight and morecompact in size than previos generations. It is available for 2013 model-year vehiclesand has already been adopted by two atomakers.

A u T O M O T I V E E x P E R I E N C E

The ie:3 fully electric prototype vehicle demonstrates our latest capabilities

and technologies, including solutions that improve sustainability.


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5-12%reductionin fuel use

20%

increase in 2011 revenue

Power Solutions

2011 Performance

Our Power Solutions business delivered a record year in 2011 with a 20 percent increase in

revenue, primarily due to greater demand and higher unit prices. Power Solutions accounted for

14 percent of Johnson Controls net consolidated revenue. Power Solutions achieved a 22 percent

gain in segment income for the year.


Power Solutions is making substantial investments around the world to provide battery

applications across the entire spectrum of vehicle powertrains from traditional internal combustion

engine to Start-Stop to hybrid electric and electric vehicles.

Lead-Acid Vehicle Batteries

Our Power Solutions business provides more than one-third of the worlds lead-acid starter

batteries for major automakers and aftermarket retailers.

In 2011, we continued to introduce our patented PowerFrame grid technology across our

lead-acid battery plants globally. The optimized grid design and sturdy outer frame deliver

significantly improved performance and reliability and extend the batterys life cycle. The

PowerFrame manufacturing process utilizes 20 percent less energy, emits 20 percent fewer

greenhouse gases and is virtually waste-free because all excess stamping materials are recycled.

Power Solutions continued to expand in China in 2011, launching operation of our new

Changxing plant with an annual capacity of 8 million batteries. The business also began

construction of our Chongqing plant, which will have capacity to manufacture 6 million

units annually. We plan to make investments of more than $1 billion in China by 2016.

To support our growth in the United States, we built a new distribution center in Delaware

with an initial annual capacity of 8.5 million units.

Start-Stop Vehicle Batteries

Power Solutions is the worlds leading supplier of batteries for Start-Stop vehicles, producing

more than 3.2 million units per year. Start-Stop is a technology applied to a standard gasoline-

powered vehicle that automatically shuts the engine off during idle and restarts when the driver

engages the clutch or releases the brake pedal, reducing fuel use and emissions by 5 percent to

12 percent.

Market demand for Start-Stop batteries is growing rapidly. This fuel-saving technologyhas been successful in the European market and will be introduced in the United States in 2012.

We anticipate the market for Start-Stop vehicles will grow to 35 million globally by 2015. To

support this rapid growth, we are investing $520 million worldwide over the next four years in

additional production capacity: $280 million in Europe, $140 million in the United States, and

$100 million in China.

Johnson Controls is the leading supplier of Start-Stop batteries in Europe through our VARTA

brand. We are expanding capacity at our plants in Hannover and Zwickau, Germany to produce

more than 11 million Start-Stop batteries annually. We are adding 6.8 million units of capacity in

the United States through conversion and expansion of a plant near Toledo, Ohio that will begin

production in 2012. Power Solutions also has announced plans to build a Start-Stop battery plant

in China that is expected to begin production in 2013.


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130million batteriesproduced annuallb Johnson Controls

Growth through InnovationB th t cWe opened or newly renovated Battery Technology and Test Center at or PowerSoltions headqarters in Glendale, Wisconsin last year. The 9,000-sqare-foot facilityis the largest energy storage research and development center in North America.Engineers at the facility test, validate and ready for prodction the batteries that willgo in the most energy-efficient vehicles that are on the road today.

u rh phIn 2011 we annonced a partnership with the university of Wisconsin system and anendowment for a professorship, research labs and gradate stdies in energy storageat two campses. The partnership will bring together Johnson Controls scientists andgradate stdents for research in energy storage devices and batteries.

Hbrid and Electric Vehicle Batteries

Johnson Controls is a leading global supplier of lithium-ion advanced battery systems for

hybrid and electric vehicles.

Our joint venture with Saft was the first company in the world to manufacture lithium-ion

batteries for mass-produced hybrid vehicles. In 2011, Power Solutions acquired Safts interests

in the joint venture because we had differing views on the future direction of the company. This

move reinforces our commitment to the advanced battery industry and enables us to expand our

full range of capabilities across technology, systems, applications and business models.

In 2011, Power Solutions opened its new advanced battery center in Holland, Michigan. It is

the first facility in the United States to produce complete lithium-ion battery cells and systems

for hybrid and electric vehicles, such as Fords Transit Connect Electric. The facility was financed

in part by an American Recovery and Reinvestment Act (ARRA) matching grant.

P O W E R S O L u T I O N S

In 2011, we began manufacturing lithium-ion battery cells in our new advanced

battery center in Holland, Michigan.

Our Power Solutions business opened a newly renovated, state-of-the-art

Battery Technology and Test Center in Milwaukee in 2011.


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Growth In Ever Dimensionocial Responsibilit 22 23

150,000volunteer hours

P H I L A N T H R O P I C S U P P O R TJohnson Controls philanthropic activities take place through financial support and employee

involvement. In 2011, Johnson Controls provided financial support totaling $15.5 million, bringing

our monetary contributions over the past three years to nearly $40 million. Globally, JohnsonControls employees volunteered more than 150,000 hours of their time to local communities

and organizations last year.

The organizations and causes we align with make a significant difference. We recognize every

dollar we contribute and each hour our employees volunteer are simply a first step in bettering

our world. The intention is for our first actions to have an exponential impacta ripple effect that

ensures our contributions make a measurable difference.

SocialResponsibilitJohnson Controls was

ranked #1 among the 100 Best

Corporate Citizens in 2011

by Corporate Responsibility

magazine. We are proud of

our 162,000 employees around

the world who demonstrate

professionalism and integrity

every day. Our culture

encourages and supports

their efforts to advance our

leadership in philanthropy,

diversity, health and safety,

and ethical behavior.


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2009

126,600

2010

144,000

2011

150,000

Volunteer Hours

Global Giving

in 2011 totaled $15.5 million

34% Education

40% Social Services

10% Arts

5% Health

9% Environment

2% Miscellaneous

Employee InvolvementB sk iBle Sky Involve, or global, employee-driven volnteer program, encorages employees to formvolnteer grops to work with local organizations to spport environmental stewardship and leader-ship development projects. In 2011, 14,700 employees formed 1,100 teams and volnteered 117,000hors. In spport of these efforts, Johnson Controls made $1,000 grants totaling $1.1 million to localnon-profit organizations and schools in 55 contries. Since establishing Ble Sky Involve in 2006, or

employees have contribted more than 554,600 volnteer hors.

c i pOr Commnity Involvement Program, which has been in place more than 30 years, encoragesemployee volnteerism. The program, which was started at Johnson Controls headqarters locationin Milwakee, Wisconsin, became a nationwide program in the united States in 2009. In 2011, itbecame global, encoraging volnteerism with online tools to help employees organize local events.

e i sOr leaders take an active role in lending their insights and eperience to a wide range of non-profit andcommnity organizations. Throgh or Eective Involvement and Steering program, or leaders per-sonal interests and professional eperience are matched with organizations t hat need assistance. Sincethe program was established in 2008, 300 Johnson Controls eectives have been matched with orga-nizations. By serving on boards of director s, chairing fndraising campaigns or sharing epertise withnon-profits, or eectives are making a positive impact in the commnities in which we do bsiness.

Financial SupportJh c fIn 2011, Johnson Controls donated $15.5 million worldwide, incldingmore than $6.4 million throgh the Johnson Controls Fondation tonon-profit and commnity organizations in the areas of performingarts, edcation, environment and health and hman services. In theunited States, donations are made throgh or Fondation.

Organizations spported in 2011 inclded: Cornerstone Schools,Detroit Institte of Arts, Focs HOPE, Georgia Institte of Tech-nology, Hnger Task Force, united Negro College Fnd, unitedPerforming Arts Fnd and united Way. In 2011, or employees

and Fondation contribted a record $5.1 million to united Wayof Greater Milwakee.

The Fondation also provides college scholarships to children ofu.S. employees that demonstrate academic achievement, leader-ship and civic involvement. In addition, the Fondation matchesgifts ranging from $50 to $5,000 to u.S. edcational instittionsand u.S. arts and cltral organizations. The matching gift programis available to employees, retirees and members of the JohnsonControls Board of Directors.

shJohnson Controls sponsors nmeros events and programs ofmany non-profits and commnity organizations, especially thosein the commnities in which the company does bsiness. Orsponsorships spport programs related to the arts, edcation,social services and the environment.

c lh cIn 2006, Johnson Controls lanched the Conservation LeadershipCorps (CLC), a stdent volnteer and smmer yoth employmentprogram that provides hands-on training and work eperiencein environmental conservation, and development of professional

leadership and job skills.

More than 2,500 high school and niversity stdents haveparticipated in the program over the years. The CLC providesa niqe eperience for yong people to gain backgrond in andlearn abot environmental sstainability throgh hands-on conser-vation projects that have a positive impact on local commnities.The CLC also provides an opportnity for or employees to getinvolved and share their leadership and environmental epertise.

P H I L A N T H R O P I C A C T I V I T I E S

Johnson Controls employees worldwide volunteered more than 150,000 hours

of their time to local communities and organizations last year.

In 2011, Johnson Controlsdonated $15.5 million worldwide.


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$1.13million for Japan disaster relief

E M P L O y E E I N V O LV E M E N T I N 5 5 C O U N T R I E SJohnson Controls employees are generous with the time they donate to non-profit organi-

zations and community causes, contributing more than 420,000 total volunteer hours over the

past three years. Whether through our Blue Sky Involve, Community Involvement Program or

Executive Involvement and Steering program, our employees individual efforts make an impact

in 55 countries around the world.

Under our Blue Sky Involve program, for example, Johnson Controls employees in China

mentored Tibetan students whose family income was less than $125 per year to help them receive

training in computer skills and leadership development. In Milwaukee, employees helped build

several Habitat for Humanity homes as part of our Community Involvement Program. More than

350 of our executives, employees and family members participated in the United Negro College

Fund Walk for Education and raised approximately $55,000, marking the fifth consecutive year our

employees raised the most money and had the greatest volunteer participation in the annual event.

Our employees worked closely with 1,700 students through our Conservation Leadership

Corps program in 24 local communities across seven countries: China, the Czech Republic,

Germany, Mexico, Slovakia, the United Kingdom and the United States. Projects included nursing

desert life in Saltillo, Mexico; planting trees at local schools in Escobedo, Mexico; cultivating

urban gardens for immigrants in Hannover, Germany and enhancing bike trails in Burscheid,

Germany; removing invasive plants in nature reserves in Mikuluv, Czech Republic; training

climate-change ambassadors in China; and restoring parks in Baltimore, Detroit and Milwaukee.

Helping Others After Disaster Strikesi 2011, Jh c b h , h :

J t & ehqkJh c $1.13 h r c J h hqk 2011. Jh c, hh h 2,000 J,

bh hh b h b $500,000 10 80 .

s ab fJh c s ab h Jh. Jh c - z h b , h , h .

H i sf H ob2010, , . m h 170 Jh c H h c pk, - k h . ahhh h h , k h 1,400 h h h , b h , h j .

Our employees have contributed more than 420,000 volunteer hours across

55 countries over the past three years.


16/30


13.8% minorit executive representation

in the United States

D I V E R S I T y

Workforce Diversit

Johnson Controls is committed to attracting, developing and training

the best talent in the world and to being a leader in workforce diversity.

We recognize that excellence comes in many forms and from every region,

and our diversity encompasses the many distinct backgrounds, cultures,

characteristics, skills and experiences of our employees around the world.

We welcome all ideas with openness, in an environment where differences

are valued and each employee has opportunities to reach his or her full poten-

tial. When their perspectives are welcome, employees feel involved, respected

and engaged.

Seventy-two percent of our 162,000 employees worldwide live and work

outside of the United States and Canada. In the past year, female executive

representation grew to 13.7 percent and minority executive representation

increased to 13.8 percent in the United States.

We reinforce our commitment to diversity and inclusion through a formal

mentoring program and continue to conduct Diversity Leadership Summit

meetings designed to help our business leaders develop action plans for

improving diversity and inclusion.

Johnson Controls is committedto attracting, developing andtraining the best talent in theworld and to being a leader inworkforce diversit.


17/30


20+

Affinit Networks

Affinity Network leaders are convened annually at our Affinity Network Leadership Summit

for leadership and development training. More than 150 Affinity Network leaders and executive

sponsors attended in 2011, including leaders from Europe and Asia.

Affinit Networks

Johnson Controls Affinity Networks are groups of employees with similar backgrounds,

experiences or characteristics who share a common interest in improving corporate culture,

business results, and professional development. Although Affinity Networks historically startedin corporations as support networks, they have evolved into organizational groups providing

strategic support to business objectives.

Our Affinity Networks are employee-driven, voluntary and open to all employees. We

currently have more than 20 established groups and five types of networks: Women, African

American, Hispanic, Asia Pacific, and Young Professionals. All Affinity Networks focus on

initiatives in business impact, employee development and community. This helps our network

leaders establish direction and focus their efforts on meeting business objectives.

We have five tpes of AffinitNetworks organized b our emploees:Women, African American, Hispanic,Asia Pacific and young Professionals.

Our Affinity Networks focus on business impact, employee development

and community initiatives.


18/30


d sMillions of dollars

Our use of diverse suppliers is not just about social responsibility; it is also about achieving

economic success. Over the past dozen years, $6 billion of Johnson Controls revenue has come

from customers that have requested the involvement of diverse suppliers.

Supplier diversity initiatives continue to place Johnson Controls among a select group known

as the Billion Dollar Roundtable, comprised of 18 companies worldwide that purchase more than

$1 billion annually from women- and minority-owned suppliers.

In 2011, Johnson Controls was recognized as Corporation of the Year by the South Region

Minority Supplier Development Council, Wisconsin Supplier Development Council, and Michigan

Supplier Development Council. Johnson Controls also received the Ford Motor Company WorldExcellence Award and the Toyota Superior Award for supplier diversity activities and spending

performance on their projects.

Johnson Controls is a member of the Womens Business Enterprise National Council and

the National Minority Supplier Development Council, as well as affiliate councils in the United

Kingdom, China, Canada and South Africa.

Supplier Diversit

Johnson Controls is committed to working collaboratively with diverse suppliers to strengthen

our supply chain and expand our business base.

We work with more than 400 diverse businesses, which provide products and services across

50 procurement categories. Our diverse suppliers come from every U.S. state and some supply

to Johnson Controls operations in Canada, the Czech Republic, Mexico and Brazil. We also have

launched supplier diversity initiatives in the United Kingdom, South Africa and China.

Supplier diversity helps provide jobs for thousands of individuals. 2011 survey data show

that the diverse companies Johnson Controls works with employ more than 111,000 people and

generate more than $2.3 billion in wages and salaries.

In 2011, we worked even more aggressively to increase spending with diverse suppliers and

marketplace awareness of our supplier diversity efforts. Through increased utilization of onlinesourcing tools, dedicated management focus, deployment of existing diverse suppliers on new

projects, and internal training on diverse business participation, we increased our diverse spend-

ing to $1.68 billion, a 47 percent increase over the prior year.

$1.68billion in diversepurchases

At training sessions held around the United States, Sharon Patterson, chief executive officer of the Billion

Dollar Roundtable, shares supplier diversity tips, tools and techniques put into practice by Johnson Controls.


19/30


35%growth in awardnominations

More than 290 leaders have participated in the program, which addresses complex business

issues to give participants global, cross-business experience. Many of these participants have

been promoted and are valuable company leaders. In 2011, 32 high-potential leaders participated

in important programs on supplier management, public policy, technology partnerships and

talent acquisition.

Leadership Edge Program

The Leadership Edge Program is an action-learning program for mid-career managers. In2011, 191 employees took part in the program in China, Mexico, Europe and the United States.

Since its inception in 2007, more than 800 employees have graduated from the program.

Chairmans Award

The Chairmans Award is Johnson Controls highest employee honor. It recognizes both

individual employees and teams for excellence in the following areas: integrity, customer

satisfaction, innovation, quality, sustainability, employee engagement and leader development,

continuous improvement, global growth and shareholder value. Nominations for employee

awards have increased yearly since their inception and grew by 35 percent in 2011.

E N G A G I N G A N D D E V E L O P I N G E M P L O y E E SJohnson Controls actively promotes a culture of leader effectiveness and employee engage-

ment within our diverse, global workforce. At all locations worldwide, managers and employees

work together to ensure that Johnson Controls is a great place to work.

The Employee Engagement Survey, launched in 2007, is a core tool used to measure,

manage and improve employee engagement. In 2011, more than 91 percent of our employees

participated in the survey, reflecting their commitment to providing input, and their enthusiasm

as contributing team members.

Survey results show that we have made significant and consistent improvements during

the past five years, including a 29 percent improvement in our employee engagement score.

In addition, we now rank within the top 25 percent of all companies measured in some key

dimensions, including trust in leadership, future vision, and employee belief in the value of the

survey. Some of our highest ratings have been gained in other crucial areas as well, including

customer orientation, safety, communication, and involvement and belonging.

Since 2007, managers and their teams have developed and implemented more than 80,000

workplace improvements driven by results of the survey.

Leadership Expectations Model

The Leadership Expectations Model (LEM) establishes and defines the behaviors that are

expected of all Johnson Controls employees in support of our vision, values, ethics, integrity

and company strategy. In 2011, we continued to implement the LEM into key business and

people processes. It is used globally to recruit and interview job candidates, enhance employee

development programs and build skills among supervisors.

Emploee Development

Our people are what make our company strong and Johnson Controls believes they become

better employees by doing, taking personal responsibility for their development and using multiple

support services.

We provide a wide range of employee and leadership development programs that focus on

building skills that support our vision, values and business. In 2011, we estimate our employees

took part in more than one million hours of training. More than 64,000 employees have completed

training within our Learning Management System. In 2011, we began using a comprehensive planto develop mid-level managers with more than 16,000 employees targeted.

eXtreme Learning Program

Since 2004, our eXtreme Learning Program has fostered the development of senior-level,

high-potential talent across the company.

In 2011, we estimate that ouremploees took part in more thanone million hours of training. ForbesmzWorlds Most Innovative Companies

2011 Chairmans Award recipients.


20/30


Ethics and Human Rightseh pthh Jh c h, bh h q h eh p b b .o q h h h , , . th h h bh h q- . o eh p h h h h ,

, b .

w eh p h b h hh . i 2011, , 29 .

a h h b h h h bh. th h b 24 h j b h-. w h h b -h h b h b-b i .thh h h b , - , .

Human Rights & Sustainabilit Polic

As an early signatory of the United Nations Global Compact, we are committed to aligning our

operations and strategies with the Compacts Ten Principles, which are universally accepted and

cover human rights, labor, health and safety, the environment and anti-corruption. Our Human

Rights & Sustainability Policy, introduced in 2011, defines how we abide by these principles and

related global standards.

Health Support ProgramsJohnson Controls provides medical services to assist employees in countries where access to

health care may be limited. For example, our medical department in Mexico provides employees

and their families services unavailable at local clinics. Doctors from our facilities make house

calls to employee family residences as needed. We also sponsor educational programs about

prevention and treatment of both common and serious diseases. In South Africa, we operate

a workplace program in conjunction with the Automotive Industry Development Center to help

fight the HIV/AIDS pandemic. The program seeks to reduce infection rates through employee

education and creating an environment of openness, disclosure and acceptance.

EthispheremzJohnson Controls was named one ofthe Worlds Most Ethical Companiesin 2011 (5th consective year)


21/30

Growth In Ever Dimensionnvironmental Leadership 38 39

162,000emploees

88%

of our manufacturingfacilities are ISO 14001compliant or certified

EnvironmentalLeadershipJohnson Controls is

recognized as one of the most

environmentally responsible

companies in the world.

we are always looking for

ways to improve. Our 162,000

employees lead by example and

hold us to high standards for

environmental responsibility.

we serve our customers by

delivering products, services and

solutions to help achieve their

business and environmental

goals, and we actively

encourage our suppliers to

adopt environmental practices.

O U R C O M M I T M E N T T O E N V I R O N M E N T A LS U S T A I N A B I L I T y

We continue to make progress in driving sustainability throughout our company, consistent with

our goal of promoting the efficient use of resources through our products, services, operations and

community involvement. Three key strategies drive our efforts in environmental sustainability:

Reducingtheenvironmentalfootprintofouroperations.

Improvingthesustainabilityofoursupplychain.

Increasingrevenuefromenvironmentallyresponsibleproductsandservices.

Our Global Environmental Sustainability Council (GESC) oversees those strategies and

coordinates cross-business activities related to environmental sustainability. We have publicly

reported sustainability data since 2002. In 2009, we introduced a new environmental scorecard

that measures six metrics: energy intensity, waste intensity, water intensity, greenhouse gas

emissions intensity, ISO 14001 compliance, and design for sustainability. See our 2011 environ-

mental scorecard on the next page.


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$5millionin energ savings

2018 Goal: 3.0

0

50

100

150

200

250

300

350

400

450

500

09 10 1108

2018 Goal: 257.6

0

10

20

30

40

50

60

70

09 10 1108

2018 Goal: 35.5

0

20

40

60

80

100

120

140

160

180

09 10 1108

2018 Goal: 107.1

0.0

0.5

1.0

1.52.0

2.5

3.0

3.5

4.0

4.5

5.0

09 10 1108

Energy Intensity

Gigajoules of electricity, gas, propane, steam

and diesel per million U.S. dollars revenue.

Waste Intensity

Metric tons of waste sent to landfill or for

incineration per million U.S. dollars revenue.

Water Intensity

Cubic meters of water consumed per million

U.S. dollars revenue.

Greenhouse Gas GHG Emissions Intensity

Metric tons of carbon dioxide equivalent

emissions per million U.S. doll ars revenue.

Reducing the Environmental Footprint ofOur Operationsw bh gb e sb c (gesc) h - b. thgesc b , b , hh, . th b b j k; b;

; b . th gesc k h gb ph c (gpc) b h.th gesc gpc e o t.

r o o e uB h h (gHg), k h . eh b b h- b . mj gHg : ; ;- b ; ; h; .

o , e H, h h h 370 j.w h h h h j, $5 .

O U R S U S T A I N A B I L I T y S C O R E C A R D

In 2009, we introdced a new environmental scorecard to measre or performance against simetrics: energy intensity, greenhose gas emissions intensity, water intensity, waste intensity,ISO 14001 compliance, and design for sstainability. The scorecard reports fiscal year data andses 2008 data as a baseline. In 2011, we saw an improving trend toward each of or goals, withthe eception of a slight increase in waste intensity after achieving or goal the prior year. The bestavailable data at the time of pblication is sbstitted for previosly reported or estimated data,which reslts in changes to reported amonts and goals.

iso 14001

This environmental management system standardhelps bsinesses redce their environmentalfootprint and decrease polltion and waste. By2012, or goal is for 100 percent of manfactringfacilities to be compliant or certified to ISO 14001.At the end of 2011, 88 percent of or global man-factring facilities are compliant or certified.

d b

The program helps s manage and minimizeenvironmental impact across the prodct lifecycle, inclding design, manfactring, se anddisposal. By 2012, we have a 100 percent goalfor major new prodcts to ndergo design-for-sstainability review.


23/30


300,000suppliers around the world

In 2011, we participated in the corporate supply chain program of the Carbon Disclosure

Project (CDP) for the third consecutive year. The program is recognized as the leading initiative

for assessing greenhouse gas emissions in supply chains. Our businesses invited more than 140

suppliers to submit data, which provides an understanding of the emissions associated with each

supplier. Similarly, we submitted data at the request of ten of our customers.

We continue to use the Johnson Controls Supplier Sustainability Rating System, a tool designed

to promote sustainability in our supply chain and help us discover new opportunities. In 2011, we

recognized suppliers with the highest scores at an awards banquet.

We also recognize suppliers for reporting greenhouse gas (GHG) emissions to the CDP and

for implementing various social and environmental initiatives.

Some of the initiatives that we are pursuing to encourage greater supplier participation include:

Broadeningalternativewastedisposalprogramsthroughoutoursupplychaintoreduceand

redirect manufacturing waste (recycling, incineration, etc.).

Enhancingrecycledmaterialsuseindirectandindirectmaterials,particularlypaper,resin

and plastics.

Continuingtopurchasegreenenergy,whilereducingcoststhroughnegotiatedenergy

procurement.

ParticipatingintheU.S.EnvironmentalProtectionAgencysSMARTWAYprogramtofurther

reduce logistics-related GHG emissions.

I M P R O V I N G T H E S U S T A I N A B I L I T y O F O U RS U P P L y C H A I N

Our Global Purchasing Council (GPC) leads efforts to improve sustainability within our supply

chain. Johnson Controls works with more than 300,000 direct and indirect suppliers around the

world and expects them to conduct their operations in a socially and environmentally sustainable

manner. We use a variety of tools to assess suppliers, including background checks, self-assess-

ment surveys, site visits and audits.

Developed in partnership with key customers, socially responsible investment funds and

non-governmental organizations, our company-wide supply chain standards provide guidance to

our procurement teams on the environmental and social performance of suppliers. This guidance

includes details on labor, discrimination, freedom of association, health and safety, the environ-

ment, management systems and ethics.

140+suppliers submitteddata to the CDP

Our compan-wide supplchain standards provide guidanceto our procurement teams onthe environmental and socialperformance of suppliers.


24/30


100%

goal for major new productsto undergo design forsustainabilit review

Automotive Batter Reccling

Our Power Solutions business is the worlds leading supplier of automotive batteries and is

the recognized leader in automotive battery recycling around the world through our closed-loop

distribution processes.

In 2011, Power Solutions broke ground on a fully integrated battery recycling facility in

Florence, South Carolina, the first facility of its kind to receive an air permit in the United States

in nearly 20 years.

We have begun operations in our lead recycling facility in Garcia, Mexico and also announced

plans to invest more than $70 million in our battery recycling center in Cienega, Mexico, which

was acquired in 2004, to install more efficient equipment and technologies.

These investments are part of our overall strategy to grow lead-acid battery recycling capacity

to ensure a reliable source of raw material to support battery production for our customers and

that we have the most environmentally responsible battery recycling operations in the world.

I NCR E AS I NG R E V E NUE F R OM E NV I R ONM E NTAL L yR E S P ONS I BL E P R ODUCTS AND S E R V I CE S

Since Warren Johnson invented the worlds first electric room thermostat in 1883, Johnson

Controls has been focused on energy efficiency. Today, our businesses develop products and

services that help make buildings and automobiles more energy-efficient. By focusing on sus-

tainable products and services, we aim to accelerate revenue growth and contribute to Johnson

Controls profitability through reduced commodity content and waste.

Designing Sustainable Products

Design-for-sustainability continues to gain momentum within our company. Our Automotive

Experience business, for example, continues to develop and implement design processes that

promote sustainable products. We are testing an economic input-output life cycle assessment

tool from Carnegie Mellon University to estimate embedded energy and carbon content within

our products. This tool and other design-for-sustainability resources and practices are being

implemented to reduce energy use and carbon emissions. In addition, our Technology &

Advanced Development group is exploring a port folio of green materials. We also are

broadening our focus to include Life Cycle Assessment (LCA) protocols, with an ultimate goal

of developing processes that reduce the cost, risk and environmental impact of our products.In 2011, Power Solutions broke ground on a fully integrated battery recycling

facility in South Carolina.


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H E L P I N G O U R C U S T O M E R S A C H I E V E G R E E NB U I L D I N G C E R T I F I C A T I O N

Our Building Efficiency business is a global leader in delivering solutions that increase energy

efficiency in buildings. We are also at the forefront of helping facility owners and managers

achieve green building certification. Last year, we achieved a new milestone in the green building

space, by helping customers secure green building certification for more than 15 million square

feet of building space worldwide.

LEED-certified (Leadership in Energy and Environmental Design) projects with major

Johnson Controls involvement span the globe, from Bank of America Plaza (302,340 square feet)

in Columbia, South Carolina, the Durham County Courthouse (483,106 square feet) in Oshawa,

Ontario, and the Energy Complex (2.06 million square feet) in Bangkok, Thailand, to Falabella

Centro Mayor (93,017 square feet) in Bogota, Colombia, and the Colgate Sanxiao facility (2.15

million square feet) in Hangji, China. In addition, our headquarters campus in Glendale, Wisconsin

represents the largest concentration of LEED Platinum buildings (four) on one site in the world.

The 33-acre complex includes more than 306,000 square feet of new or completely renovated

office space, and is a showcase for many of our renewable energy, energy efficiency and clean

technology innovations.

Johnson Controls was a charter member of the U.S. Green Building Council. Our Brengel

Technology Center in Milwaukee was one of the initial pilot projects, receiving a LEED Silver

rating in 2001. The building was later upgraded and achieved a LEED Gold for Existing Buildings

rating in 2004.

Johnson Controls has more than 1,150 LEED-credentialed professionals around the world.

LEED-certified projects optimize and modernize facilities through improvements that lower

energy, operating and capital costs while improving indoor environments and reducing the

impact on outdoor environments.

P R O V I D I N G T H O U G H T L E A D E R S H I PWe continue to look for ways to enhance Johnson Controls reputation as a leader in sustain-

ability and as a thought leader on key issues, such as energy efficiency, vehicle electrification and

battery recycling.For the 22nd consecutive year, our Building Efficiency business co-sponsored the Energy

Efficiency Forum in Washington, D.C. this year with the U.S. Energy Association. The forum

examined how advanced efficiency technologies, energy policies and consumer education can be

integrated to enhance energy security, improve global competitiveness and accelerate economic

growth. Building Efficiency also hosted similar events in Europe and India during the year.

This past year we participated in sustainability-related events held at the U.S. House and

Senate; the National Governors Association; the European Parliament and Commission; and the

United Nations.

Johnson Controls is part of a Clinton Global Initiative commitment to reduce energy use, create

jobs and provide significant savings for the commercial real estate sector by boosting the market

for energy-efficient tenant space. Our Building Efficiency business advises on potential efficiency

improvements and helps to develop and implement the measures to track actual energy savings.

1,150+LEED-credentialedprofessionals

U.S. Secretary of the Navy Ray Mabus addresses energy security and how energy

can help save lives at the 2011 Energy Efficiency Forum.


26/30


10earsof reporting sustainabilit data

S U S T A I N A B I L I T y R E P O R T I N GSustainability reporting continues to be a high priority to ensure that we

are effectively communicating our corporate responsibility efforts. In 2002,

we began to publicly report various sustainability data, including safety and

environmental metrics. Since 2003, we have published a Sustainability Report

in accordance with the Global Reporting Initiative (GRI), the most widely

accepted global standard for reporting corporate responsibility. The voluntary

guidelines provide a framework for transparent reporting on environmental,

social and governance performance. In addition to keeping our stakeholders

informed, the GRI reporting serves as a relevant comparison with our peers

and helps us stay focused on continuous improvement. Our GRI Report using

the latest G3 guidelines can be found in the sustainability section of our

companys web site at www.johnsoncontrols.com/sustainability.

S U S T A I N A B I L I T y I N D E X E SOur social and sustainability performance is recognized by numerous

respected corporate social responsibility and sustainability investment indices,

including the following:

DowJonesSustainabilityWorldIndex

DowJonesSustainabilityNorthAmericaIndex

FTSE4GoodIndexSeries

S&P500CarbonDisclosureLeadershipIndex

CalvertSocialIndex

Domini400SocialIndex

KLD:DividendAchieversSocialIndex,GlobalClimate100Index,

Global Sustainability Index, Large Cap Social Index, Large-Mid Cap Social

Index, Broad Market Social Index, North America Sustainability Index,

Catholic Values 400 Index, Select Social Index

MaplecroftClimateInnovationIndexBenchmark

MaplecroftClimateInnovationIndexLeaders

sam (sb a m)Gold Class Sstainability LeaderAto Parts and Tires Sector4th consective year


27/30


Recordable Injury Rate

U.S. Occupational Safety and Health Administration (OSHA)

incidents x 200,000 hours worked.

2005

1.64

2006

1.46

2007

1.36

2008

1.09

2009

0.92

2010

0.79

2011

0.74

Lost Time Injury Rate

U.S. Occupational Safety and Health Administration (OSHA)incidents x 200,000 hours worked.

2005

0.67

2006

0.56

2007

0.49

2008

0.42

2009

0.35

2010

0.32

2011

0.36

H E A L T H A N D S A F E T y

Johnson Controls works towards or zero-incident Health and Safety vision by sharing best bsinesspractices across or company, establishing and applying consistent health and safety standardsworldwide and providing behavior-based tools and training programs for or employees. In 2011,we contined or implementation of SafeStart and other safety awareness programs. Theseprograms raise awareness of how behaviors and states of mindinclding rshing, frstration,fatige and complacencycan case injries. As a reslt of SafeStart and other programs, JohnsonControls contined to make improvements in or Health and Safety performance.


28/30

Growth In Ever Dimension011 Business and Sustainabilit Report 52 53

DirectorsR O W 1

Stephen A. RoellChairman, President and Chief Executive Officer,Johnson Controls, Inc. Director since 2004. (1)

David P. AbneSenior Vice President and Chief Operating Officer,UPS. Director since 2009. (2, 3)

Dennis W. ArcherChairman and CEO, Dennis W. Archer PLLC.Director since 2002. (3, 4)

R O W 2

Robert L. Barnett

Retired Executive Vice President,Motorola, Inc. Director since 1986. (1, 2, 3)

Natalie A. Black

Senior Vice President, General Counsel and Corporate Secretary,Kohler Co. Director since 1998. (3, 5)

Robert A. CornogRetired Chairman, Chief Executive Officer and President,Snap-on, Inc. Director since 1992. (1, 2, 3)

R O W 3

Richard GoodmanRetired Executive Vice President of Global Operations,PepsiCo, Inc. Director since 2008. (2, 5)

Jeffre A. Joerres

Chairman, Chief Executive Officer and President,Manpower, Inc. Director since 2001. (1, 4, 5)

William H. Lac

Retired Chairman and Chief Executive Officer,MGIC Investment Corp. Director since 1997. (1, 4, 5)

R O W 4

Eugenio Clariond Rees-RetanaRetired Chairman and Chief Executive Officer,Grupo IMSA S.A. Director since 2005. (4, 5)

Mark P. VergnanoExecutive Vice President,E.I. du Pont de Nemours and Company. Director since 2011.

C O M M I T T E E S

1) Executive 2) Audit 3) Corporate Governance4) Compensation 5) Finance

ExecutiveOperating TeamR O W 1

Stephen A. Roell

Chairman, President and Chief Executive Officer

Beda Bolzenius

Vice President and President, Automotive Experience

Colin Bod

Vice President, Information Technology andChief Information Officer

R O W 2

Susan F. DavisExecutive Vice President, Human Resources

Charles A. HarveVice President, Diversity and Public Affairs

William C. JacksonExecutive Vice President, Operations and Innovation

R O W 3

R. Bruce McDonald

Executive Vice President and Chief Financial Officer

Alex A. Molinaroli

Vice President and President, Power Solutions

C. David Mers

Vice President and President, Building Efficiency

R O W 4

Jerome D. OkarmaVice President, Secretary and General Counsel

Jacqueline F. StraerVice President, Corporate Communication

Detailed Reports

Further details on t he companys 2011 performance,

as well as historical information, can be downloaded

from www.johnsoncontrols.com

Financial(AnnualReportonForm10-K)

GlobalReportingInitiative(GRI)

Sustainability Report

Executive Offices

Johnson Controls, Inc.

5757 North Green Bay Avenue

Milwaukee, WI 53209-4408, U.S.

(414) 524-1200


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011 Business and Sustainabilit Report 54


30/30

Johnson Controls, Inc.5757 North Green Bay AveneMilwakee, WI 53209-4408, u.S.

(414) 524-1200www.johnsoncontrols.com

FORM-11568 | Janary 2012 2012, Johnson Controls, Inc.All rights reserved. JOHNSON CONTROLS, YORK, FRICK, SABROE, METASYS, HOMELINK, BLuECONNECT,OPTIMA, VARTA, HELIAR, LTH, POWERFRAME, ECOSTEPS, PANOPTIx, KEIPER and C. ROB. HAMMERSTEIN

and the names and marks associated with Johnson Controls prodcts are trademarks of Johnson ControlsTechnology Company or its affiliates and sbsidiaries in the united States and other contries. The registrationsymbol that follows certain trademarks throghot this docment indicates registration of the trademark inJohnson Controls home contry of the united States (as well as other contries, where applicable).

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21093 JC 2011BSR Health Safety Kzh1