12 slides from Johnson Controls International's earnings presentation, Jul 18, 2014
Slide 1: Quarterly update FY 2014 third quarter
July 18, 2014 Quarterly update FY 2014 third 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 third quarter Macro environment
2014 third quarter Macro environment Higher global automotive industry production – North America 4% – Europe 1% – China 11% Mixed battery demand – Higher Original Equipment globally – Aftermarket demand stronger in North America and Asia, lower in Europe – European customer aftermarket inventor
Slide 4: Buildings markets
2014 third quarter Buildings markets Institutional buildings (more than half our N.A. business) Institutional sector of the nonresidential construction market continues decline ─ Construction starts down 45% vs. 2008 peak ─ Government building starts down 69% from the 2008 peak Q3 decline in NA
Slide 5: Third quarter results (continuing operations)
2014 third quarter (continuing operations)* Net revenues: $10.8 billion, up 3% vs. $10.5 billion in Q3 2013 Segment income: $794 million, up 15% vs. $690 million in Q3 2013 EPS: $0.84 per diluted share, up 17% vs. $0.72 in Q3 2013 5 *Excluding non-recurring items Thank you to our employees: De
Slide 6: Winning in the marketplace
Winning in the marketplace 2014 third quarter Automotive Experience Awarded $3 billion in new metals programs BMW Brilliance Automotive - new complete seat program for luxury sedan in China, launch in 2017. Expected annual revenues $325+ million Significant level of new interiors business wins
Slide 7: Power Solutions
2014 third quarter Power Solutions 2014 2013 Net sales $1.5B $1.4B +6% Excluding lead, sales were up 8% Improved aftermarket volumes in North America and Asia along with strong OE sales globally – Americas up 6% – Asia up 18% – Europe down 3% AGM volumes up 17% Segment income $193M $135M +43%
Slide 8: Building Efficiency
2014 third quarter Building Efficiency* 2014 2013 Net sales $3.6B $3.7B -4% BE sales down 1% excluding GWS and divestitures – Asia flat – North America down 4% – Europe up 6%** – Middle East down 15%; Latin America down 27% Global Workplace Solutions revenues down 4% Segment income $306M $314M -
Slide 9: Automotive Experience
2014 third quarter Automotive Experience* 2014 2013 Net sales $5.7B $5.4B +7% Higher volumes globally China sales (mostly non-consolidated) up 28% to $1.8B Segment income $295M $241M +22% Profitability improvements attributable to higher volumes and improved operational performance – Seating m
Slide 10: Third quarter 2014 Financial highlights (continuing operations)
(in millions) 2014 (excluding items1) 2013 (excluding items) % change 2014 (reported) 2013 (reported) Sales $10,812 $10,499 3% $10,812 $10,499 Gross profit % of sales 1,669 15.4% 1,564 14.9% 7% 1,663 15.4% 1,564 14.9% SG&A expenses 963 948 2% 1,097 948 Equity income 88 74 19% 88 74 Segment income $7
Slide 11: Third quarter 2014 Financial highlights (continuing operations)
Third quarter 2014 Financial highlights (continuing operations) 11 (in millions, except earnings per share) 2014 (excluding items1) 2013 (excluding items 2) 2014 (reported) 2013 (reported) Segment income $794 $690 $654 $690 Restructuring costs ----- ----- 162 143 Financing charges - net 67 67 67 67
Slide 12: Balance sheet / cash flow / Q4 guidance
Balance sheet / cash flow / Q4 guidance Q3 cash provided by operating activities of $714 million Q3 net debt $7.3B – Q3 net debt reduction ($0.4B) – New debt to finance ADT $1.7B Trade Working Capital 7.4% of sales; up 10bps year over year ADT acquisition balance sheet impact – Goodwill & in