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Winning on Our Strengths

I am proud to report Johnson Controls achieved $37.2 billion in revenue and $3.42 earnings per share from continuing operations for fiscal 2015. This strong performance is all the more remarkable in a year of the most significant change in our 130-year history. It results directly from the focus and dedication of our 130,000 employees, working smarter and transforming Johnson Controls into a world-class multi-industrial company.

Automotive Experience achieved sales of $20.1 billion and increased income 14 percent over 2014, helped by a strong global auto market. We continue to innovate with new products for our global customers—introducing a portfolio of core seating mechanisms as well as new seating technology that leads the market into the future of autonomous driving.  

Building Efficiency delivered $10.5 billion in sales and grew income 13 percent. New projects in all markets, particularly North America, signal recovery in some of our most important sectors. Our acquisition of Air Distribution Technologies (ADTI) has proceeded as planned and this year provided North America sales of approximately $1 billion. We also completed our joint venture agreement with Hitachi, making Johnson Controls the largest HVAC equipment and control company in the world.

Power Solutions delivered $6.6 billion in sales and increased income 9 percent, fueled by higher volume and rising demand for Absorbent Glass Mat (AGM) batteries. Our advanced battery solutions give automakers a full spectrum of technology to meet increasing fuel efficiency and emission regulations worldwide. In China, the biggest market for automotive batteries, we increased sales to $331 million and announced plans for a third plant, to be built in Shenyang, with capacity to manufacture 6 million battery units by 2018.

Portfolio Changes

We continue to take significant steps to transform our portfolio and reshape Johnson Controls. In July we completed our interiors joint venture with Yanfeng Automotive Trim Systems, the world’s largest automotive interiors supplier. In September we finalized the sale of Global Workplace Solutions (GWS) to CBRE Group for $1.47 billion. As part of our sale to CBRE, a strategic relationship was established to supply CBRE customers with Johnson Controls technologies and services.

In July we announced our intent to spin off our Automotive Experience business into a separate public company. This decision is consistent with our strategic focus and ensures the long-term success of both companies. The new company, led by Chairman and CEO Bruce McDonald and Chief Operating Officer Beda Bolzenius, will be one of the largest and best automotive suppliers in the world.

Johnson Controls will be anchored by Building Efficiency and Power Solutions as our core businesses with two very robust growth platforms focused on buildings and energy.
Alex Molinaroli - Chairman, President and Chief Executive Officer

Opportunity Ahead

Johnson Controls will be anchored by Building Efficiency and Power Solutions as our core businesses with two very robust growth platforms focused on buildings and energy. Global energy demands and urbanization will fuel our growth as we leverage technology and the unmatched expertise of our people to deliver products and solutions that meet customers’ evolving needs. We will invest in our core controls, HVAC and energy storage businesses and also expand into adjacent markets.

While much is changing, our vision and strategy hold steady. Our growth in the buildings and energy storage markets will be driven by our proven ability to help customers succeed through outstanding service, world-class products and leading innovation.  

The Johnson Controls Operating System (JCOS) leverages the company’s enterprise strengths to drive speed, agility, quality and productivity. Standardizing these practices will make us the most operationally capable company in the world. JCOS encompasses all the key capabilities that create value and build competitive advantage. It is also projected to produce bottom line benefits of $2 billion by 2020.

An equally important key to our growth is China. We are well-positioned to serve the growing middle class throughout Asia with proven products relevant to local markets, strategic partnerships and the scale to win. We have announced planned investments of more than $2 billion in Asia through 2020 to increase manufacturing capacity, expand product offerings and build new sales channels.

On October 9, Johnson Controls Chairman and CEO Alex Molinaroli, along with other company executives, celebrated 50 years of the company being listed on the New York Stock Exchange by ringing the Closing Bell®.


Our executive team also continues to evolve. In September, Simon Davis was promoted to vice president, chief human resources officer. Susan Davis continues to provide critical senior leadership for our growing Asia-Pacific management team and its activities, including the construction of our second global headquarters, in Shanghai. Construction is on schedule, with the opening set for 2017. 

Joe Walicki was appointed vice president and president of Power Solutions at the beginning of 2015. He leads Power Solutions as we embrace energy storage technologies critical to support the fast-growing alternative energy market and to enable many emerging technologies. Jeff Williams was elected to the newly created role of vice president, Enterprise Operations and Engineering, leading the company's overall manufacturing operations, procurement and integrated supply chain, advanced manufacturing and engineering functions.

Our board of directors welcomes Juan Pablo del Valle Perochena, chairman of Mexichem S.A.B. de C. V. Juan brings fresh global perspective, having served on the boards of several multi-nationals operating in the United States, as well as real estate development and construction expertise developed while leading real estate operations and investments for his family’s company. I also want to thank retiring board member Eugenio Clariond Reyes-Retana, who has served since 2005. We value and appreciate his contributions to Johnson Controls.

The New Johnson Controls

Johnson Controls is well-positioned for growth in 2016 and beyond, delivering on our strategic and financial commitments even as we separate our Automotive business. Recent and future acquisitions will expand our core HVAC and battery businesses and broaden our participation in buildings and energy growth sectors. The Johnson Controls Operating System is already driving success and contributing to profitability. The decisions we make every day play to our strengths, guiding investment in channels, markets and products that create growth and shareholder value. I am proud of our accomplishments and proud of our employees as they deliver on our promises. Thank you for your continued support.

Alex Molinaroli

Alex Molinaroli
Chairman, President and Chief Executive Officer