Johnson Controls International plc · NYSE:JCI
Johnson Controls International — Investor Presentation (December 2011)
35 slides from Johnson Controls International's investor presentation, December 2011
Slide 1: Johnson Controls December 2011
Johnson Y) Controls December 2011 Johnson Y) ( Controls
Slide 2: Forward-looking statement
Forward-looking statement Johnson Controls, Inc. has made forward-looking statements in this document pertaining to its financial results for fiscal 2011 and beyond that are based on preliminary data and are subject to risks and uncertainties. All statements, other than statements of historical fact
Slide 3: Three world-class growth businesses
Johnson Controls Three world-class growth businesses Johnson Controls FY2011 $40.8 B Automotive Power Solutions Building Efficiency Experience $5.9 B $14.9 B $20.1 B Leading global provider Providing the highest Providing HVAC equipment, quality, lowest cost control systems and of systems and automo
Slide 4: Johnson Controls profile
Johnson Controls profile Aligned with global growth megatrends 2011 revenue by geography (including non-consolidated) – Energy efficiency – Sustainability / GHG reduction – Emerging markets North ROW America Positioned to grow faster than our underlying markets Europe – Organic growth – Acquisit
Slide 5: Growth outpacing our underlying markets
Johnson Controls Growth outpacing our underlying markets Mid-term Annual Growth drivers Growth (est.). Emerging markets, especially China Strong and expanding backlogs Market share gains Building Efficiency 10 – 15% Increased demand for energy Automotive Experience 2 – 3%* efficiency / green
Slide 6: Sustainable, profitable growth: long-term objectives
Sustainable, profitable growth Long-term objectives Organic growth greater than Disciplined, sustained investment the rate of our underlying industry / We are substantially increasing our market growth investments to drive organic growth Continued margin expansion We will consistently genera
Slide 7: Automotive Experience: Competitive advantages
Automotive Experience Competitive advantages 2011 Sales Leading global provider of systems $20.1B* and components for seats, overhead Asia systems, doors, cockpits and electronics Global reach 12% Vertically integrated North America 51% Europe 37% Complete interior capability Investing in te
Slide 8: Automotive Experience: Gaining share
Automotive Experience Gaining share Incremental Sales Backlog* 5% incremental sales backlog increase Improved geographic balance $4.2B $4.0B +5% Continued growth in China Further strengthened diversified customer portfolio 2011-13 2012-14 Increased vertical integration content 2012-2014 back
Slide 9: Automotive Experience: Increasing investments in growth initiatives
Automotive Experience Increasing investments in value-creating growth initiatives Johnson Controls is well positioned to outpace the market recovery over the long term Cost leadership Vertical integration Technology and advanced development Emerging markets with focus on China 9 Johnson Cont
Slide 10: Automotive Experience: Growth in China
Automotive Experience Growth in China Position in China JCI Manufacturing in China 2011 China revenues: $4.0 billion (mostly unconsolidated) vs. $3.1 in 2010 Market leader in seating (44% market share) Smaller niche player in interiors and electronics 50 manufacturing locations with 28 JVs
Slide 11: Investments to support future growth: 2011 acquisitions
Automotive Experience Investments to support future growth 2011 acquisitions Three major acquisitions ($1.2 billion) in 2011 – Increased metals capabilities – World-class technology – Response to changes in OE sourcing 2014 Financial Impact (est.) Sales: More than $3 billion EPS: Approx. $0.50 / s
Slide 12: Building Efficiency
Johnson Controls Building Efficiency Johnson Controls makes buildings in 125 2011 Sales countries more comfortable, productive $14.9 B and safe Key offerings: Energy solutions, broad Non- Residential range of services, HVAC equipment, Residential 90% controls systems Our offerings are necessary
Slide 13: Building Efficiency: Global platform
Building Efficiency Global platform N.A. Branches: 258 Branches: 226 Europe 2011 $7.4B Mfng: 13 Mfng: 5 $4.2B $15B Asia $2.2B Branches: 161 Middle East Mfng: 5 $0.6B Branches: 21 Mfng: 3 Latin America $0.7B Branches: 28 Mfng: 5 With over 650 locations worldwide we have the platform to drive growth g
Slide 14: Energy efficiency in buildings: hyper growth in emerging markets
Energy efficiency in buildings Hyper growth in emerging markets China: 50% of new building construction globally through 2020* ―Some 350 million Chinese—more than today's entire U.S. population—will move to China's cities in the next decade and half, according to McKinsey, and government measures to
Slide 15: Sustainable, profitable growth: Building Efficiency
Sustainable, profitable growth Building Efficiency Record backlogs Emerging markets up 30+% Investing in additional sales force and service providers to support future growth New Doha International Investments in new product Airport – Qatar ($150 million) enhancements and innovation Energy
Slide 16: Power Solutions: Business overview
Power Solutions Business overview ‘ The world‘s largest provider of battery power 2011 Sales solutions for the vehicle original equipment $5.9 B and aftermarket Europe Americas 36% global market share for SLI batteries 26% World-class customer base in the automotive aftermarket 5% 69% Asia Ori
Slide 17: Power Solutions: A growth business
Power Solutions A growth business Power Solutions has been a good business in a slow growth industry – Good margins – Steady demand due to stable aftermarket – Annual market growth of 0-2% Today, double-digit growth business with margin improvement potential – Global growth in distribution and b
Slide 18: Power Solutions: Start-Stop vehicles
Power Solutions Start-Stop vehicles Improve fuel economy and lower emissions with minimum change to vehicle system Allow engine to shut off instead of idling while Start-Stop the vehicle is stopped Vehicles with Provides fuel efficiency gains and CO2 Advanced reductions of 5 to 12% Lead-Acid N
Slide 19: Accelerating demand for Start-Stop batteries
Power Solutions Accelerating demand for Start-Stop batteries We expect aggressive growth in Start-Stop battery demand Accelerating transition by OEMs – particularly in Europe – 35 million unit global demand by 2015 Rapid increase driven by higher than expected consumer acceptance Aftermarket i
Slide 20: Start-stop market leadership
Power Solutions Start-stop market leadership Expanding global manufacturing network to support OEM partners – Europe: Exceed 11M unit capacity by 2013 – N.A.: 6.8M unit capacity by 2014 – China: 2.0M unit capacity by 2014 Preparing for significant aftermarket opportunity Exploring technology a
Slide 21: Investing for sustainable, profitable growth: Power Solutions
Investing for sustainable, profitable growth Power Solutions AGM battery capacity investments (higher revenues, margins than traditional lead-acid batteries) – More than $420 million in capacity expansion investments approved – Increased investments for AGM capacity in Europe – Initial investments
Slide 22: Sustainable, profitable growth: Investing for growth
Sustainable, profitable growth Investing for growth Higher level of capital investment 2012 Capital expenditures $1.7 billion (est.) Increasing battery manufacturing capacity – SLI, AGM Other key areas for investment Capacity and footprint expansion in emerging markets Engineering Supporting
Slide 23: Committed to best-in-class total returns to shareholders
Sustainable, profitable growth Committed to providing best-in-class total returns to shareholders Sustainable organic sales and earnings An exciting new period of sustained, growth above average sales and earnings growth for Johnson Controls Market share gains Strategic acquistions Increasin
Slide 24: Appendix: Quarterly update, FY 2011 fourth quarter
Appendix Quarterly update FY 2011 fourth quarter October 27, 2011
Slide 25: 2011 full year results: Record sales and earnings
2011 full year results Record sales and earnings Record FY 2011 results despite a mixed macro environment - (+) Benefitted from global automotive recovery - (-) Weak Building Efficiency markets - (-) Negative impact of Japan earthquake / tsunami Outperformed our underlying markets – FY 2011: Dou
Slide 26: 2011 full year results: Record sales and earnings
2011 full year results Record sales and earnings Sales: $40.8 billion vs. $34.3 billion in 2010 (+19%) Segment income*: $2.4 billion vs. $1.9 billion in 2010 Net income*: $1.7 billion vs. $1.4 billion in 2010 EPS*: $2.40 per diluted share vs. $1.99 in 2010 (+21%) *Excluding non-recurring ite
Slide 27: Entering 2012: Good momentum
Entering 2012 Good momentum Benefits of strategic M&A and capital growth investments Strong backlogs – $2.3 billion in newly booked business leading to Automotive backlog of $4.2 billion (2012 – 14) – Building Efficiency up 8% at end of 2011 Geographic and capacity expansions in emerging marke
Slide 28: 2011 fourth quarter: Record sales and earnings
2011 fourth quarter Record sales and earnings Sales: $10.8 billion vs. $9.0 billion in 2010 (+19%) Segment income*: $725 million vs. $586 million in Q4 2010 Net income*: $514 million vs. $409 million in Q4 2010 EPS*: $0.75 per diluted share vs. $0.60 in Q4 2010 (+25%) Q4 results are consiste
Slide 29: 2011 fourth quarter: Automotive Experience
2011 fourth quarter Automotive Experience 2011 2010 Fiscal Q4 production Net sales $5.1B $4.1B 24% North America up 6% Europe up 45% Europe up 5% – Up 26%, excluding acquisitions China up 8% North America up 7% Asia up 15%; strength in Korea; Japan slightly lower 2012-2014: $4.2B backlog
Slide 30: 2011 fourth quarter: Building Efficiency
2011 fourth quarter Building Efficiency 2011 2010 Commercial backlog Net sales $4.1B $3.6B 14% and orders (at September 30, 2011) Higher revenues in all segments – Global Workplace Solutions up 24% Record $5.1B, up 8% – North America up 7% – Asia up 17% Backlog up in all – Middle East up 51% g
Slide 31: 2011 fourth quarter: Power Solutions
2011 fourth quarter Power Solutions 2011 2010 Q4 average lead prices Net sales $1.6B $1.3B 19% 2011: $2,558 / ton - up 26% Sales up 12%, excluding lead 2010: $2,030 / ton Aftermarket unit volume up 4% OE unit volume up 2% Benefitting from favorable product mix Segment income* $213M $182M 17%
Slide 32: Fourth quarter 2011 financial highlights
Fourth quarter 2011 Financial highlights % 2011* 2010* 2011 2010 (in millions) (excluding items) (excluding items) change (reported) (reported) Sales $10,788 $9,040 19% $10,788 $9,040 Gross profit 1,732 1,502 15% 1,732 1,491 % of sales 16.1% 16.6% 16.1% 16.5% SG&A expenses 1,085 975 11% 1,128 985 Eq
Slide 33: Fourth quarter 2011 financial highlights
Fourth quarter 2011 Financial highlights 2011* 2010* (excluding (excluding 2011 2010 (in millions, except earnings per share) items) items) (reported) (reported) Segment income $725 $586 $719 $604 Financing charges - net 50 53 50 53 Income before taxes 675 533 669 551 Income tax provision 126 96 96
Slide 34: 2011 fourth quarter balance sheet
2011 fourth quarter Balance sheet Cash provided by operations of $587 million Discretionary pension and post-retirement funding – Approximately $175 million in Q4 ($440m in FY11) Improved Q4 working capital performance – Adjusted for discretionary pension / retirement funding, source of $45 mi
Slide 35: 2012 outlook
2012 outlook Near-term outlook Forecast: Fiscal year 2012 Automotive volumes remain stable Revenues: $44.2 billion, up 8% Operational and quality improvements EPS: $2.85 - $3.00, up 19 – 25% Integration of acquisitions No change to the Execution of backlogs October 12, 2011 guidance China
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