14 slides from Johnson Controls International's earnings presentation, Apr 23, 2014
Slide 1: Quarterly update FY 2014 second quarter
April 23, 2014 Quarterly update FY 2014 second quarter Exhibit 99.2
Slide 2: Agenda and Forward-Looking Statements
Agenda Introduction Glen Ponczak, Vice President, Global Investor Relations Overview Alex Molinaroli, Chairman and Chief Executive Officer Business results and financial review Bruce McDonald, Executive Vice President and Chief Financial Officer Q&A 2 FORWARD-LOOKING STATEMENTS Johnson Control
Slide 3: 2014 second quarter macro environment
2014 second quarter Macro environment Higher global automotive industry production – North America 5% – Europe 5% – China 9% Mixed aftermarket battery demand – Weather-related improvements in North America due to cold January and February temperatures – Europe aftermarket demand trending lower w
Slide 4: Q2 results consistent with high end of earnings guidance
Net revenues: $10.5 billion, up 4% vs. $10.1 billion in Q2 2013 Segment income: $629 million, up 36% vs. $461 million in Q2 2013 EPS: $0.64 per diluted share, up 52% vs. $0.42 in Q2 2013 4 Q2 results are consistent with high end of earnings guidance *Excluding non-recurring items 2014 second q
Slide 5: Taking action to become a leading multi-industry company
Completed HomeLink® sale, remaining Electronics business sale to be completed this fiscal year Signed Memorandum of Understanding for HVAC joint venture with Hitachi Expanded share repurchase authorization to $3.65 billion; completed $1.2 billion repurchase in Q1 2014 Exploring strategic alt
Slide 6: Power Solutions
2014 second quarter Power Solutions 2014 2013 Net sales $1.6B $1.6B Level Excluding lead, sales were up 4% Improved aftermarket volumes in North America and Asia along with strong OE sales globally – Americas up 10% – Asia up 7% – Europe down 15% AGM volumes up 24% Segment income $236M $248M -
Slide 7: Building Efficiency
2014 second quarter Building Efficiency 2014 2013 Net sales $3.3B $3.5B - 5% BE sales down 2% excluding GWS and divestitures – Asia up 5% – North America down 4% – Middle East down 31%; Europe down 3% Global Workplace Solutions sales down 8% Segment income $152M $139M +9% Strong operating perf
Slide 8: Automotive Experience
2014 second quarter Automotive Experience* (Electronics reported as a discontinued operation) 2014 2013 Net sales $5.6B $5.1B +11% Higher revenue in North America, Europe and Asia China sales (mostly non-consolidated) up 25% to $1.6B Segment income* $241M $74M +226% Significantly improved prof
Slide 9: Second quarter 2014 financial highlights (continuing operations)
(in millions) 2014 (excluding items1) 2013 (excluding items2) % change 2014 (reported) 2013 (reported) Sales $10,463 $10,102 4% $10,463 $10,102 Gross profit % of sales 1,546 14.8% 1,440 14.3% 7% 1,546 14.8% 1,440 14.3% SG&A expenses 990 1,044 -5% 990 1,044 Equity income 73 65 12% 73 147 Segment inco
Slide 10: Second quarter 2014 financial highlights (continuing operations)
Second quarter 2014 Financial highlights (continuing operations) 10 (in millions, except earnings per share) 2014 (excluding items1) 2013 (excluding items 2) 2014 (reported) 2013 (reported) Segment income $629 $461 $629 $543 Restructuring costs ----- ----- ---- 84 Financing charges - net 56 66 56 66
Slide 11: Balance sheet / cash flow
Balance sheet / cash flow Q2 cash provided by operating activities of $730 million vs. $217 million in 2013 – Net debt reduction of $383 million – Net debt to capitalization 34.1% Improved working capital performance – Trade Working Capital 6.9% of sales, 80 bps year-over-year improvement Year
Slide 12: Revised Guidance
Revised Guidance 12 Note: Updated guidance assumes Air Distribution Technologies underlying earnings (excluding transaction-related costs) are neutral in 2014 Full-year 2014 guidance provided in December 2013 $3.15 - $3.30 / share inclusive of Electronics Business ─ Electronics $0.10 - $0.12 / sha
Slide 13: EPS from Continuing Ops Reconciliation
13 * Certain items don’t sum due to rounding EPS Q1 Q2 Q3 Q4 Full Year Q1 Diluted Shares 686.7 689.4 690.1 690.7 689.2 682.2 As Reported 0.52$ 0.24$ 0.80$ 0.15$ 1.71$ 0.69$ Electronics Disc Ops (0.02) (0.02) (0.03) (0.07) (0.15) (0.03) Continuing Ops 0.50$ 0.22$ 0.77$ 0.08$ 1.56$ 0.66$ Restructuring
Slide 14: Discontinued Ops Reconciliation
14 *Excluding non-recurring items * Sales Q1 Q2 Q3 Q4 Full Year Q1 JCI Consolidated Sales 10,422$ 10,430$ 10,831$ 11,047$ 42,730$ 10,908$ Exclude: Discontinued Ops 313 328 332 347 1,320 334 Adjusted Sales 10,109 10,102 10,499 10,700 41,410 10,574 SINC Q1 Q2 Q3 Q4 Full Year Q1 JCI Consolidated SINC 5