15 slides from Johnson Controls International's earnings presentation, Oct 29, 2013
Slide 1: Quarterly update FY 2013 fourth quarter
October 29, 2013 Quarterly update FY 2013 fourth quarter Exhibit 99.2
Slide 2: Agenda and Forward-Looking Statements
Agenda Introduction Glen Ponczak, Vice President, Global Investor Relations Overview Alex Molinaroli, Chief Executive Officer Business results and financial review Bruce McDonald, Executive Vice President and Chief Financial Officer Q&A . 2 FORWARD-LOOKING STATEMENTS Johnson Controls, Inc. has
Slide 3: Record FY 2013 results despite a mixed macro environment
3 Record FY 2013 results despite a mixed macro environment - (+) North America automotive recovery and continued strong production growth in China - (+) European automotive production levels stabilizing with growth in some countries - (+) U.S. residential HVAC demand - (-) Weak Building Efficiency
Slide 4: 2013 fourth quarter highlights
Sales: $11.0 billion (+6%) vs. $10.4 billion in Q4 2012 Record segment income*: $920 million (+27%) vs. $725 million in Q4 2012 Net income*: $657 million (+25%) vs. $526 million in Q4 2012 EPS*: $0.95 per diluted share (+23%) vs. $0.77 in Q4 2012 4 2013 fourth quarter highlights* All busines
Slide 5: Expectations entering 2014
Good momentum Stabilizing markets Operational execution improvements Benefits of cost discipline and pricing initiatives Continued margin expansion across the businesses expected Lower levels of capital expenditures generating stronger cash flows Significant restructuring activities unde
Slide 6: Thank you, Steve Roell
31 years of service CEO 2007 – 2013 – Sales 2007: $34.6 billion – Sales 2013: $42.7 billion 6 Thank you, Steve Roell
Slide 7: 2013 fourth quarter Power Solutions
2013 fourth quarter Power Solutions 2013 2012 Net sales $1.7B $1.6B +9% Global unit shipments higher, with continued soft aftermarket demand in North America – Americas up 1% – Europe and Asia up 11% - 12% – New customer wins – Note: AGM volumes up 33% Improved pricing Segment income $330M $239M
Slide 8: 2013 fourth quarter Building Efficiency
2013 fourth quarter Building Efficiency 2013 2012 Net sales $3.9B $3.8B +2% Strong sales in North America Service, Asia and UPG, with lower revenue in Europe and the Middle East Global Workplace Solutions sales down 3% Segment income $357M $327M +9% Significantly higher segment income on prici
Slide 9: 2013 fourth quarter Automotive Experience
2013 fourth quarter Automotive Experience 2013 2012 Net sales $5.5B $5.0B +9% Seating up 9%; Interiors up 8% and Electronics up 13% China sales (mostly non-consolidated) up 20% to $1.6B Higher revenue in North America and Europe partially offset by lower sales in Japan (largely F/X) Segment in
Slide 10: Fourth quarter 2013 Financial highlights
Fourth quarter 2013 Financial highlights 10 Gross profit – Improved margins in all businesses SG&A – Increased employee-related and litigation costs Equity income – Joint ventures higher profitability in Automotive Asia (in millions) 2013 (excluding items1) 2012 (excluding items1) % change 201
Slide 11: Fourth quarter 2013 Financial highlights
Fourth quarter 2013 Financial highlights Financing charges - net – lower average borrowing levels Income tax provision – 20% effective tax rate, consistent with guidance (in millions, except earnings per share) 2013 (excluding items1) 2012 (excluding items 1) 2013 (reported) 2012 (reported) Segm
Slide 12: Balance sheet / cash flow
Balance sheet / cash flow Achieved our fourth quarter cash flow targets – Cash provided by operating activities $1.0 billion – Net debt reduction of approximately $1.2 billion, including divestiture proceeds Full year free cash flow of $1.3 billion, exceeding our guidance Trade Working Capital
Slide 13: Expectations looking forward
Expectations looking forward Strong momentum, with confidence in Q1 outlook – Expect continued sequential profitability improvements in Automotive Experience – In Building Efficiency, our pipeline supports further improvement in our orders; Q1 revenue growth anticipated with further margin expansi
Slide 14: Appendix
Appendix Johnson Y) Controls
Slide 15: Q4 non-recurring / unusual items
Pre-tax Tax After-tax Income (Expense) (Expense) Benefit Income (Expense) EPS Impact Gain (Loss) on Sale of Businesses 454$ (219)$ 235$ 0.34$ Restructuring and Impairment Costs (758) 64 (694) (1.00) Pension / OPEB Mark-to-market gain 405 (169) 236 0.34 Pension settlement gain 69 (27) 42 0.06 Income