Johnson Controls International : Third Quarter Fiscal 2022 Earnings Conference Call

Fiscal Q3 2022

Earnings Conference Call

August 4, 2022

Forward Looking & Cautionary Statements /

Non-GAAP Financial Information

Johnson Controls International plc Cautionary Statement Regarding Forward-Looking Statements

Johnson Controls International plc has made statements in this communication that are forward-looking and therefore are subject to risks and uncertainties. All statements in this document other than statements of historical fact are, or could be, "forward-looking statements" within the meaning of the Private Securities Litigation Reform Act of 1995. In this communication, statements regarding Johnson Controls' future financial position, sales, costs, earnings, cash flows, other measures of results of operations, synergies and integration opportunities, capital expenditures, debt levels and market outlook are forward-looking statements. Words such as "may," "will," "expect," "intend," "estimate," "anticipate," "believe," "should," "forecast," "project" or "plan" and terms of similar meaning are also generally intended to identify forward-looking statements. However, the absence of these words does not mean that a statement is not forward-looking. Johnson Controls cautions that these statements are subject to numerous important risks, uncertainties, assumptions and other factors, some of which are beyond its control, that could cause its actual results to differ materially from those expressed or implied by such forward-looking statements, including, among others, risks related to: Johnson Controls ability to manage general economic, business, capital market and geopolitical conditions, including global price inflation, shortages impacting the availability of raw materials and component products and the current conflict between Russia and Ukraine; Johnson Controls ability to manage the impacts of natural disasters, climate change, pandemics and outbreaks of contagious diseases and other adverse public health developments, such as the COVID-19 pandemic; the strength of the U.S. or other economies; changes or uncertainty in laws, regulations, rates, policies or interpretations that impact Johnson Controls business operations or tax status; the ability to develop or acquire new products and technologies that achieve market acceptance and meet applicable regulatory requirements; changes to laws or policies governing foreign trade, including economic sanctions, increased tariffs or trade restrictions; maintaining the capacity, reliability and security of Johnson Controls enterprise information technology infrastructure; the ability to manage the lifecycle cybersecurity risk in the development, deployment and operation of Johnson Controls digital platforms and services; the risk of infringement or expiration of intellectual property rights; any delay or inability of Johnson Controls to realize the expected benefits and synergies of recent portfolio transactions; the outcome of litigation and governmental proceedings; the ability to hire and retain senior management and other key personnel; the tax treatment of recent portfolio transactions; significant transaction costs and/or unknown liabilities associated with such transactions; fluctuations in currency exchange rates; labor shortages, work stoppages, union negotiations, labor disputes and other matters associated with the labor force; and the cancellation of or changes to commercial arrangements. A detailed discussion of risks related to Johnson Controls' business is included in the section entitled "Risk Factors" in Johnson Controls' Annual Report on Form 10-K for the 2021 fiscal year filed with the SEC on November 15, 2021, which is available at www.sec.govand www.johnsoncontrols.comunder the "Investors" tab. The description of certain of these risks is supplemented in Item 1A of Part II of Johnson Controls' subsequently filed Quarterly Reports on Form 10-Q. Shareholders, potential investors and others should consider these factors in evaluating the forward-looking statements and should not place undue reliance on such statements. The forward-looking statements included in this communication are made only as of the date of this document, unless otherwise specified, and, except as required by law, Johnson Controls assumes no obligation, and disclaims any obligation, to update such statements to reflect events or circumstances occurring after the date of this communication.

Non-GAAP Financial Information

This press release contains financial information regarding adjusted earnings per share, which is a non-GAAP performance measure. The adjusting items include restructuring and impairment costs, net mark-to-market adjustments, Silent-Aire other nonrecurring items, Silent-Aireearn-out adjustment, charges associated with the suspension of operations in Russia, transaction / separation costs, Power Solutions divestiture reserve adjustment and discrete tax items. Financial information regarding organic sales growth, adjusted sales, EBIT, EBIT margin, adjusted EBIT, adjusted EBIT margin, organic segment EBITA growth, total segment EBITA, adjusted segment EBITA, adjusted segment EBITA margin, adjusted Corporate expense, free cash flow, free cash flow conversion and adjusted net income from continuing operations are also presented, which are non-GAAP performance measures. Management believes that, when considered together with unadjusted amounts, these non-GAAP measures are useful to investors in understanding period-over-period operating results and business trends of Johnson Controls. Management may also use these metrics as guides in forecasting, budgeting and long-term planning processes and for compensation purposes. These metrics should be considered in addition to, and not as replacements for, the most comparable GAAP measure. For further information on the calculation of the non-GAAP measures and a reconciliation of these non-GAAP measures, refer to the attached footnotes.

2 Johnson Controls International, plc. - August 4, 2022

Executing on our Transformative Strategy and Positioned to Capture Robust Demand

• Record order velocity and robust demand continues to grow our backlog
• • Record Field Backlog of $11.1B, increased 13% organically YoY
  • Total Field Orders up 11% organically; +29% 2-year stack
• Disciplined pricing approach driving sequential margin improvement

• • Positive price/cost in Q3
  • Backlog margin up sequentially and YoY
• Accelerating our digital transformation efforts, further strengthening our ability to capitalize on emerging secular trends and transform our service business
• On track to deliver on our productivity plan of ~$230M in savings for FY22, realizing ~$170M in cost savings YTD
• • Additional operational enhancement levers through functionalization, simplification and ERP roll-out to drive our productivity further
• Effective capital allocation of $2.1B YTD, consisting of approximately $1.4B in share repurchases and nearly $700M in cash dividends
• Advancing a step up in supply chain recovery
• Continued to strengthen leadership

3 Johnson Controls International, plc. - August 4, 2022

DIGITALIZING THE PORTFOLIO

Leading in Connectivity with OpenBlue

1	Solving Customer Needs	2	Uniquely Positioned with Expanded	3 Delivering Results
	Dynamic	Customer Vision
		building modes	Workshops	Energy optimization			Capabilities
	Connected					Q3 Capabilities	TOTAL CHILLER	~8,400
							CONNECTIONS
	experiences			Predictive
					OpenBlue Chiller Vibrational Analysis
Higher tenant			maintenance
satisfaction
						YoY GROWTH IN
Increased			Remote			OpenBlue NetZero Advisor	~86%
		diagnostics			CHILLER
productivity
							CONNECTIONS

Optimized			Reduce
processes			operating costs
Clean Air			Risk insight
Improved asset			Touchless
safety
		environments
Active
compliance	Cyber	Advanced	Healthy Buildings
management
Solutions	Security

Launch of OpenBlue Pioneers Award

OpenBlue Refrigeration

Q3 Acquisition of	Leader in Edge
	Security

Q4 Capabilities

+ OpenBlue Chiller Energy Advisory

TOTAL REVENUE
YTD FROM	YoY
CONNECTED	~$3B, 8% Growth
DEVICES

Sample Recipient:

Chase Center

New buildings innovation award, highlights visionary leaders taking the digital leap

Driving the future of smart, healthy and sustainable buildings with AI- enabled OpenBlue technology

+ Multi-Cloud Capabilities

+ + OpenBlue Bridge

Q4 Capability: Remote Monitoring & Connectivity

OpenBlue Bridge enables real-time monitoring of

smart building environment

	OpenBlue
Connected Chillers in	2022 Microsoft US
IoT Partner of the
North America
Year

*Figures represent organic connections and revenue.

4 Johnson Controls International, plc. - August 4, 2022

ACCELERATING DIGITAL SERVICE TRANSFORMATION | $160B Global Service Market Opportunity1

Continuing to Mature the Service Growth Flywheel with Digital Accelerators

1 Service Growth Strategy	Connected Services	Outcomes as a		2	Delivering Results
				(e.g., chillers)			Service
The JCI Digital Advantage			• Uptime 50%			• Net Zero				+7% YoY
	Start	• Repair cost savings	20% • Indoor Air Quality
• Vendor-agnosticconnectivity		Q3 SERVICE ORDERS:
	• Energy savings	5%	• Space Mgmt
• Multi-tenant cloud environment
• Digital twin data models						• Cooling &				+20%
					Heating		2-YEAR GROWTH:
• Intelligent connected edge					Tailored solutions
• Zero trust cybersecurity						for target verticals
							• Healthcare
							• Government				+8% YoY
							• CRE
							• Education		Q3 SERVICE REVENUE:
								2-YEAR GROWTH:	+19%
500 bps/year
Increase in Attach
Rate							3X		IMPROVEMENT:	+70 bps, +270 bps YTD
Increase in
3-4X									Q3 ATTACH RATE
$ / Customer							increase in		Q3 ATTRITION RATE	(120) bps, (195) bps YTD
100 bps/year							IMPROVEMENT:
					connectivity
Decrease in		(e.g., connected chillers)
Attrition	Increased Attach		Increased			Digital		Lower	>$2B	REVENUE OPPORTUNITY
	Rate	Connectivity	Services & Apps		Attrition	BY 2024

*Figures represent organic orders, revenue and growth rates. Sources: 1) Dodge, Navigant, CBRE, JCI Analysis.

5 Johnson Controls International, plc. - August 4, 2022