Johnson Controls (JCI) Offers FY17 Outlook; Provides Expectations for 2020

In connection with its investor and analyst meeting being held today in New York City, Johnson Controls International, plc (NYSE: JCI) announces fiscal 2017 EPS before special items guidance of $2.60 to $2.75 per share, a 13 percent to 19 percent year-over-year increase, compared to the pro forma fiscal 2016 base of $2.31 per share. Guidance includes an organic revenue growth range of 2.5 percent to 4.5 percent and EBIT margin expansion before special items of 80 to 110 basis points.

*** The Street sees FY17 EPS of $2.70.

"Fiscal 2016 was a year of significant transformation," said Chairman and Chief Executive Officer Alex Molinaroli. "As we transition to fiscal 2017, we are instilling our new Company's vision, mission and values throughout the organization to drive a strong performance and growth-oriented culture," said Molinaroli.

"We are well positioned as a market leader to accelerate growth in our core buildings and energy businesses. We will maintain a consistent focus on investing for profitable growth, improving free cash flow conversion, driving the Johnson Controls Operating System and creating long-term value for our shareholders and customers. We expect fiscal 2017 to be another year of strong earnings performance for Johnson Controls based on both solid operational execution and merger related cost synergies."

In addition, the board of directors approved a quarterly cash dividend payment of $0.25 per share payable on Jan. 6, 2017, to shareholders of record as of the close of business on Dec. 14, 2016. Johnson Controls has paid a consecutive dividend since 1887.

The Company is introducing mid-term financial targets covering the fiscal years through 2020:

Fiscal 2020 Financial Targets

• +12 to 15 percent EPS before special items CAGR
• +3 to 4 percent organic revenue CAGR including $500 million in run-rate sales synergies
• +40 to 55 percent EBIT growth before special items with +300 to 380 basis points of margin expansion
• ~$1 billion of productivity/merger cost savings plus $150 million of tax synergies
• FCF conversion target of 90 percent+ before special items

Molinaroli continued, "Looking forward to our mid-term outlook, we have a significant amount of earnings growth within our control. We have developed financial targets which we believe are attainable through dedicated and consistent execution across the portfolio. Within our planning horizon, we will look to supplement core financial performance with disciplined capital deployment. We are enthusiastic about the sales synergy opportunities in front of us and expect to reach a run rate of at least $500 million by fiscal 2020."

A live video webcast of today's meeting will begin at 8:00am EST and conclude at approximately 12:30pm EST. The event and presentation materials can be accessed through the Investor Relations section of the Company's website: http://investors.johnsoncontrols.com. A replay of the webcast will be made available after the conclusion of the presentation.

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