Johnson Controls International Plc · NYSE:JCI
Johnson Controls International — Q2 2012 Earnings Presentation
13 slides from Johnson Controls International's earnings presentation, Apr 20, 2012
Slide 1: Quarterly update FY 2012 second quarter
Quarterly update FY 2012 second quarter April 20, 2012
Slide 2: Agenda
Agenda Introduction Glen Ponczak, Vice President, Global Investor Relations Overview Steve Roell, Chairman and Chief Executive Officer Business results and financial review Bruce McDonald, Executive Vice President and Chief Financial Officer Q&A FORWARD-LOOKING STATEMENT Johnson Controls, Inc.
Slide 3: Macro environment: automotive production and battery demand
2012 second quarter Macro environment Mixed automotive industry production – Higher production (17%) in North America – Lower production (- 4%) in Europe but with some strength in luxury segments – Slightly higher production (2%) in China Unseasonably warm winter temperatures in North America –
Slide 4: Macro environment: non-residential buildings markets
2012 second quarter Macro environment Mixed non-residential buildings markets – Expansion continues in China (Tier 2 and 3 cities), Middle East expansion – Some recovery in North America, though institutional market likely slightly lower in 2H 2012 – Architectural Billings Index—five months of exp
Slide 5: 2012 second quarter results
2012 second quarter* Sales: $10.6 billion vs. $10.1 billion in Q2 2011 Segment income: $558 million vs. $557 million in Q2 2011 Net income: $363 million vs. $383 million in Q2 2011* EPS: $0.53 per diluted share vs. $0.56 in Q2 2011* Results are consistent with January 19, 2012 financial guid
Slide 6: FY 2012 second half vs. first half
FY 2012 Second half vs. first half Factors why 2012 second half results are expected to be better than the first half Power Solutions – Pricing actions – Benefits of vertical integration – Reduction in battery imports to serve Chinese customers Automotive Experience – Higher North American produ
Slide 7: Our mid- to long-term strategies and outlook are intact
Our mid- to long-term strategies and outlook are intact Strong market position in SLI batteries; ability to drive higher margins through vertical integration Investments in AGM battery technology to support customer demand for start- stop vehicles Emerging market leadership in all three busine
Slide 8: Automotive Experience
2012 second quarter Automotive Experience 2012 2011 Return on sales by Net sales $5.6B $5.2B 7% geography* Total sales up 4%, excluding acquisitions and currency N. America: 5% 12% increase in North America vs. 17% higher production Europe: 1% Europe up 8% (excluding currency) vs. lower in
Slide 9: Building Efficiency
2012 second quarter Building Efficiency 2012 2011 Commercial backlog Net sales $3.6B $3.5B 1% (at March 31, 2012) Higher revenues in Asia, North America Systems, GWS Record $5.3B, up 3% – Asia up 10% – North America Systems and Global Workplace Solutions up 6% North America Service down 4% due
Slide 10: Power Solutions
2012 second quarter Power Solutions 2012 2011 Net sales $1.4B $1.4B 1% Shipments: OE up 6%; aftermarket down 1% Favorable product mix Changxing, China Facility Segment income* $195M $178M 10% Increased vertical integration Improved product mix Cost of importing batteries to China Hybrid
Slide 11: Second quarter 2012 financial highlights
Second quarter 2012 Financial highlights % 2012* 2011* 2012 2011 (in millions) (excluding items) (excluding items) change (reported) (reported) Sales $10,565 $10,144 4% $10,565 $10,144 Gross profit 1,549 1,474 5% 1,549 1,474 % of sales 14.7% 14.5% 14.7% 14.5% SG&A expenses 1,070 978 9% 1,069 1,014 E
Slide 12: Second quarter 2012 financial highlights
Second quarter 2012 Financial highlights 2012* 2011* (excluding (excluding 2012 2011 (in millions, except earnings per share) items) items) (reported) (reported) Segment income $558 $557 $559 $521 Financing charges - net 63 46 63 46 Income before taxes 495 511 496 475 Income tax provision 94 97 94 9
Slide 13: Balance sheet and 2012 outlook
2012 second quarter Balance sheet Cash provided by operations increased $207 million from Q2 2011 Increased capital spending to $448 million, $173 million higher than Q2 2011 Continue to focus on improvements in trade working capital Net debt / total capitalization 34% 2012 outlook Comfort