12 slides from Johnson Controls International's earnings presentation, Jul 19, 2007
Slide 1: Quarterly Update FY 2007 Third Quarter
Quarterly Update FY 2007 Third Quarter July 18, 2007 Johnson Controls, Inc. ("the Company") has made forward-looking statements in this document pertaining to its financial results for fiscal 2007 that are based on preliminary data and are subject to risks and uncertainties. All statements other tha
Slide 2: Agenda
Welcome Denise Zutz - Vice President, Strategy, Investor Relations and Communication Overview John Barth - Chairman and CEO Q3 Business Results Steve Roell - Vice Chairman and Executive Vice President Financial Review Bruce McDonald - Executive Vice President and CFO Q&A (conclude at noon Eastern ti
Slide 3: Record Results: Third Quarter 2007
Record Results Sales up 6% to record $8.9 billion Building efficiency: double-digit increases in NA systems and services, rest of world and global workplace solutions Higher power solutions revenues due primarily to lead price increases Automotive experience level with 2006 Segment income up 14% to
Slide 4: News and Highlights
News and Highlights Leadership Recognition "Supplier of the Year" - -JC Penney "Top Supporters of Historically Black Colleges and Universities" - -Black Engineering magazine "Supplier of the Year" - -General Motors "40 Best Companies for Diversity" - -Black Enterprise magazine "World's Most Ethical
Slide 5: Johnson Controls
Johnson Controls Profitable growth: our first priority to increase shareholder return Significant growth opportunities in each of our businesses: improving comfort, safety and sustainability Energy efficiency/environment Hybrid vehicles Automotive electronics Emerging markets Investing in innovation
Slide 6: Q3 2007 Building Efficiency
Q3 2007 Building Efficiency Non-residential industry Global markets remain strong North America: 7% growth in education and healthcare construction / retrofit spending in 2007; moderating slightly in 2008 Double-digit new construction growth in key emerging markets Energy efficiency / green increasi
Slide 7: Q3 2007 Power Solutions
Q3 2007 Power Solutions Industry North America: lower demand due to decrease in vehicle production levels and flat aftermarket Unprecedented increases in lead prices LME Year-over-year up 278% ($995/ton to $2,546/ton) Q2 end to Q3 end up 37% Closing price 7/17: $3,169/ton Johnson Controls Optima: ex
Slide 8: Q3 2007 Automotive Experience
Q3 2007 Automotive Experience Vehicle production North America Down 2% overall Domestic OEs down 7% Mix: Light trucks flat, cars down Europe Estimated up 1% Chinese market remains strong 2007 2006 Sales $4.6B $4.7B -1% North America: down 2% Positives: Ford 250/350, GM Lambda, Honda Pilot, Toyota Tu
Slide 9: Q3 2007 Financial Highlights
(in millions) Q3 2007 Financial Highlights FX - Euro at $1.35 vs $1.25 Sales - Double-digit sales growth from building efficiency (+15%) and power solutions (+16%) partially offset by 1% reduction in automotive experience SG&A - Investments in growth initiatives at building efficiency; prior year $3
Slide 10: Q3 2007 Financial Highlights
(in millions, except per share data) Q3 2007 Financial Highlights Financing charges-net - Benefit of de-leveraging partially offset by impact of higher European short-term interest rates Provision for income taxes - Prior year income tax provision affected by non-recurring tax adjustment and tax ben
Slide 11: Q3 2007 Balance Sheet / Cash Flow Highlights
Q3 2007 Balance Sheet / Cash Flow Highlights Total Debt to Total Capitalization Ratio Target Range Q4:05 Q1:06 Q2:06 Q3:06 Q4:06 Q1:07 Q2:07 Q3:07 0.279 0.464 0.449 0.42 0.392 0.392 0.372 0.358 Third quarter working capital performance below expectations Debt to capitalization ratio of 36% Capital s
Slide 12: 2007 Outlook
2007 Outlook Full Year: Confirming earnings guidance Debt to total capitalization of approximately 30% No change 12 Double-digit earnings growth for the fifth consecutive year 2007 Full Year Segment Margin Guidance Building 6.7 - 6.9% Automotive 2.9 - 3.1% Power* 11.5 - 11.9% Sales +7% to approximat