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Conflict Minerals Introduction

Johnson Controls, Inc. — PUBLIC

Table of Contents  Background  Dodd-Frank Act  Conflict Minerals

 Conflict Minerals Regulation  Reporting Timeline

 Company Status’  SEC Filing Requirements

 Power Solutions’ Approach  Supplier Expectations  Reporting Format & iPCMP  Conflict Minerals – Summary  Conflict Minerals Resources

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Johnson Controls, Inc. — PUBLIC

Background – Dodd-Frank Act

Dodd-Frank Wall Street Reform and Consumer Protection Act – Section 1502

“Conflict minerals are minerals mined in conditions of armed conflict and human rights abuses…”

Johnson Controls is an SEC registrant!

Link to Johnson Controls’ Conflict Mineral Policy

 The Dodd-Frank Act includes reporting requirements for SEC registrants about the source of conflict minerals  Companies must make a reasonable determination whether products involve specified materials from the region  The Act’s intent is to reduce violence in the region funded through exploitation of mining and trade activities 3

Johnson Controls, Inc. — PUBLIC

Conflict Minerals – 3TG

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Casserite Tin

Coltan Tantalum

Wolframite Tungsten

Gold

Johnson Controls, Inc. — PUBLIC

The Democratic Republic of the Congo and all surrounding countries

Reporting Timeline & Possible Status’

When? May 31, 2014 First report filed

Possible status for a company: DRC Conflict Undeterminable Sources of 3TG either: • Unknown or • From DRC but not yet determined to be conflict free

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Johnson Controls, Inc. — PUBLIC

DRC Conflict Free All sources of 3TG are: • Known and • Determined to be conflict free (including those within DRC)

Not DRC Conflict Free At least one source of 3TG: • From DRC and • Determined not to be “DRC Conflict Free“

Conflict Minerals – Examples of Usage Metal (3TG)

Industries using the metal

Common applications

% worldsupply from DRC

Tin Cassiteritte

• Electronics • Automotive • Industrial equipment

• Solders for joining pipes and circuits • Tin plating of steel • Alloys

5%

Tantalum Coltan

• Electronics • Industrial tools and equipment

• Capacitors • Carbide tools

15%

Tungsten Wolframite

• Electronics • Lighting • Industrial machinery

• Metal wires and electrodes • Heating and welding

3%

Gold

• Electronics

• Electric plating and wiring

2%

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Johnson Controls, Inc. — PUBLIC

Power Solutions’ Annual Approach March Determine commodities with potential for 3TG

Product Engineering

June – July Identify the suppliers of such commodities

Procurement

August Survey our suppliers using iPCMP

Supplier Sustainability

September – December Validate the responses from suppliers

Supplier Sustainability

February Submit SEC Conflict Mineral Report

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Johnson Controls, Inc. — PUBLIC

Corporate Finance

Supplier Engagement Process  Aligned with AIAG (Automotive Industry Action Group) and our customers’ approach  Utilize CMRT (Conflict Mineral Reporting Template) and Conflict Free Smelter Program  Utilize iPCMP platform for data collection

 Evaluate supplier responses for completion and accuracy in accordance with AIAG Due Diligence Decision Tree  Escalate non-responsiveness and potential conflicts through Procurement leadership

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Johnson Controls, Inc. — PUBLIC

Conflict Minerals – Reporting Format  The Conflict Free Sourcing Initiative reporting format

Conflict Minerals Reporting Template (CMRT) Select Language Preference Here: 请选择你的语言: 사용할 언어를 선택하시오 : 表示言語をここから選択してください: Sélectionner la langue préférée ici: Selecione Preferência de idioma Aqui: Wählen sie hier die Sprache: Seleccione el lenguaje de preferencia aqui: Selezionare la lingua di preferenza qui:

English

Revision 3.00 April 9, 2014

The purpose of this document is to collect sourcing information on tin, tantalum, tungsten and gold used in products

Link to Terms & Conditions

Mandatory fields are noted with an asterisk (*). The information collected in this template should be updated annually. Any changes within the annual cycle should be provided to your customers Company Information

 Link: www.conflictfreesourcing.org/  The officially endorsed reporting format by AIAG

Company Name (*): Declaration Scope or Class (*): Description of Scope: Company Unique ID: Company Unique ID Authority: Address: Contact Name (*): Email – Contact (*): Phone – Contact (*): Authorizer (*): Title - Authorizer: Email - Authorizer (*): Phone - Authorizer (*): Effective Date (*): Answer the following questions 1 - 7 based on the declaration scope indicated above

1) Is the conflict metal intentionally added to your product? (*)

Answer

Comments

Answer

Comments

Answer

Comments

Answer

Comments

Answer

Comments

Answer

Comments

Answer

Comments

Tantalum (*) Tin (*) Gold (*)

 The template is available in 9 languages

Tungsten (*) 2) Is the conflict metal necessary to the production of your company's products and contained in the finished product that your company manufactures or contracts to manufacture? (*) Tantalum (*) Tin (*) Gold (*)

 It contains seven questions on the use of tin, tantalum, tungsten and gold and the reporting status

Tungsten (*)

3) Does any of the conflict metal originate from the covered countries? (*) Tantalum (*) Tin (*) Gold (*) Tungsten (*)

4) Does 100 percent of the conflict metal (necessary to the functionality or production of your products) originate from recycled or scrap sources? (*) Tantalum (*) Tin (*) Gold (*) Tungsten (*)

5) Have you received conflict metals data/information for each metal from all relevant suppliers of 3TG? (*) Tantalum (*)

 Ten questions are dealing with the overall company policy on Conflict Minerals

Tin (*) Gold (*) Tungsten (*) 6) For each conflict metal, have you identified all of the smelters your company and its suppliers use to supply the products included within the declaration scope indicated above? (*) Tantalum (*) Tin (*) Gold (*) Tungsten (*)

7) Has all applicable smelter information received by your company been reported in this declaration? (*) Tantalum (*) Tin (*) Gold (*) Tungsten (*)

Answer the Following Questions at a Company Level

Question

Answer

A. Do you have a policy in place that addresses conflict minerals sourcing? (*)

B. Is your conflict minerals sourcing policy publicly available on your website? (Note – If yes, the user shall specify the URL in the comment field.) (*)

C. Do you require your direct suppliers to be DRC conflict-free? (*)

D. Do you require your direct suppliers to source from smelters validated by an independent private sector audit firm? (*)

E. Have you implemented due diligence measures for conflict-free sourcing? (*) F. Do you collect conflict minerals due diligence information from your suppliers which is in conformance with the IPC-1755 Conflict Minerals Data Exchange standard [e.g., the CFSI Conflict Minerals Reporting Template]? (*) G. Do you request smelter names from your suppliers? (*) H. Do you review due diligence information received from your suppliers against your company’s expectations? (*) I. Does your review process include corrective action management? (*)

J. Are you subject to the SEC Conflict Minerals rule? (*) © 2014 Conflict-Free Sourcing Initiative. All rights reserved.

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Johnson Controls, Inc. — PUBLIC

Comments

Click here to enter smelter names

About iPCMP Functions of the iPCMP platform:

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Johnson Controls, Inc. — PUBLIC

Supplier Expectations • Review Conflict Minerals information on JCPS’s supplier portal at: http://www.johnsoncontrols.com/content/us/en/suppliers/power_solutions/sustainabilit y/conflict-minerals.html Review • Register for iPoint Conflict Minerals Platform (iPCMP) Register • Link: https://app.conflict-minerals.eu/ConflictMinerals/login/login.jsp

• Collect the relevant sub-supplier smelter information Collect

• Respond to Johnson Controls’ iPCMP survey request to submit information Respond • Contact Johnson Controls Power Solutions for any questions Contact • Email: [email protected]

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Johnson Controls, Inc. — PUBLIC

Conflict Minerals – Summary  Johnson Controls is an SEC registrant, so we must comply with the DoddFrank Act by reporting about the source of conflict minerals  The Act’s intent is to reduce violence in the covered DRC region, which is funded through the exploitation of mining and trade activities  The four conflict minerals (3TG) are Tin, Tantalum, Tungsten, and Gold

 Johnson Controls expects suppliers to review conflict mineral information, register on iPCMP, collect their sub-supplier information, and respond to our survey request with their necessary supplier conflict mineral information  Johnson Controls has SEC filing customers who expect us to do the same

 Conflict mineral reporting is annual process in conjunction with SEC requirements

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Johnson Controls, Inc. — PUBLIC

Conflict Minerals Resources  Conflict Minerals in the Supply Chain – Summary Video (http://www.youtube.com/watch?v=qs-Pm5iKg60)  iPoint Conflict Minerals Platform (http://www.conflict-minerals.com/)  Automotive Industry Action Group AIAG (https://www.aiag.org/)  iPCMP Conflict Minerals Awareness Video (https://www.youtube.com/watch?v=hRt85rot_Fs)  Conflict Free Smelters Tools & Resources (http://www.conflictfreesourcing.org/)  Johnson Controls Policy – Conflict Minerals (http://www.johnsoncontrols.com/content/dam/WWW/jci/corporate/sustainability/2013/co nflict_minerals_policy.pdf)

 Johnson Controls Sustainability Page – Conflict Minerals (http://www.johnsoncontrols.com/content/us/en/suppliers/automotive_experience/sustain ability/conflict-minerals.html)  U.S. Securities and Exchange Commission – Conflict Minerals FAQs (http://www.sec.gov/divisions/corpfin/guidance/conflictminerals-faq.htm)  Conflict Minerals – AIAG FAQs (http://www.johnsoncontrols.com/content/dam/WWW/jci/Suppliers/ae/sustainability/AIAG _Conflict_Minerals_FAQs_11_12_12.pdf) 13

Johnson Controls, Inc. — PUBLIC