Johnson Controls International (JCI) investor relations material

Strategic Priorities and Market Opportunities

• Focused on enabling rapid, energy-efficient deployment of data centers and biologics manufacturing, addressing critical infrastructure needs for AI and advanced manufacturing sectors.

• Strategic pillars include unlocking AI deployment constraints, improving biologics manufacturing yields, and driving global decarbonization by reducing energy intensity.

• Data center CapEx is projected to reach $7 trillion by 2030, with data center revenue expected to grow from 12% to about a third of total revenue within five years.

• Service attach rates and lifecycle opportunities in data centers are significantly higher than in traditional markets, compounding future growth.

• Clear path to high single-digit organic growth, with double-digit growth targeted in data centers and mission-critical verticals.

Technology and Innovation

• Owns and manufactures all key subsystems in HVAC and thermal management, enabling rapid, application-specific innovation and system-level optimization.

• Proprietary subsystem-level innovation delivers high performance and energy efficiency, with up to 50% less energy consumption and 25-30% cost reductions in key components.

• Recent acquisitions and partnerships, such as Alloy and Accelsius, enhance capabilities in advanced cooling technologies for data centers.

• Accelerated development and testing capabilities reduce time-to-market for new products.

• The company is extending its systems approach from chillers to the entire thermal chain, including direct-to-chip cooling and cold plates.

Operational Excellence and Business System Transformation

• Implementing a comprehensive business system focused on simplification, acceleration (lean/continuous improvement), and amplification (AI/digital integration).

• Manufacturing footprint rationalization and integrated supply chain management have quadrupled production capacity and halved inventory and work-in-progress.

• Service and sales teams have doubled customer-facing time, and engineering cycle times have been reduced by up to 70%.

• Demonstrated ability to double innovation capacity and quadruple manufacturing output at select sites without major capital investment.

• The transformation is being scaled from a few pilot sites to the entire enterprise, with frontline engagement and bottom-up adoption as key drivers.