Johnson Controls International Plc · NYSE:JCI
Johnson Controls International — Tyco International — Q3 2013 Earnings Presentation
21 slides from Johnson Controls International's earnings presentation, Jul 26, 2013
Slide 1: Third Quarter Review
Third Quarter Review 26 / July / 2013
Slide 2: Forward-Looking Statements / Safe Harbor
Forward-Looking Statements / Safe Harbor This presentation contains a number of forward-looking statements. Words and variations of words such as “outlook”, “expect”, “intend”, “will”, “anticipate”, “believe”, “propose”, “potential”, “continue”, “opportunity”, “estimate”, “project” and similar expre
Slide 3: Key Priorities
Key Priorities Accelerating organic growth • Service revenue, including recurring revenue, represents about 45% of revenue and grew 3% organically • Growth in Global Products continues to outpace the market Executing disciplined bolt-on acquisitions • Closed previously announced acquisition of Natio
Slide 4: Q3 2013 Results – Financial Overview
Q3 2013 Results – Financial Overview (EPS amounts are attributable to Tyco common shareholders) ($ in millions, except per-share amounts) ($ in millions) Q3FY13 Q3FY12 Change Revenue $2,678 $2,655 1% Segment Operating Income before special items * $375 $369 2% Segment Operating Margin before special
Slide 5: Q3 Highlights
Q3 Highlights Revenue of $2.7 billion with organic revenue* growth of 1% • Products +5%, Service +3% and Installation (4%) Record-high segment operating margin before special items* of 14.0% - 170bps improvement sequentially; 40bps improvement, year over year, on normalized basis** • Higher mix of s
Slide 6: Third Quarter – NA Installation & Services
Third Quarter – NA Installation & Services ($ in millions) Q3FY13 Q3FY12 Change Organic revenue* declined 3% year over year Revenue $966 $1,005 (4%) • Service was up 2% Operating Income* $117 $123 (5%) • Installation declined 8% Operating Margin* 12.1% 12.2% (10bps) Operating margin increased 120bps
Slide 7: Third Quarter – ROW Installation & Services
Third Quarter – ROW Installation & Services ($ in millions) Q3FY13 Q3FY12 Change Organic revenue* increased 2% • Service grew 4% Revenue $1,112 $1,087 2% • Installation declined 1% Operating Income* $139 $133 5% Operating Margin* 12.5% 12.2% 30bps 2% benefit from acquisitions mostly offset by charge
Slide 8: Third Quarter – Global Products
Third Quarter – Global Products Organic revenue* grew 5% ($ in millions) Q3FY13 Q3FY12 Change with growth across all three product platforms Revenue $600 $563 7% Operating Income* $119 $113 5% Operating margin better than expected due to productivity Operating Margin* 19.8% 20.1% (30bps) gains Opera
Slide 9: Other Items
Other Items Corporate expense before special items was $62 million in the quarter • Outlook: Expect Corporate expense for Q4 to be ~$65 million Tax rate excluding special items was 18.4% for the quarter • Outlook: Expect Q4 tax rate to be ~20% Repurchased 3.1 million shares for $100 million; YTD rep
Slide 10: Appendix
Appendix
Slide 11: Consolidated Statements of Operations
TYCO INTERNATIONAL LTD. CONSOLIDATED STATEMENTS OF OPERATIONS (in millions, except per share data) (Unaudited) Quarters Ended Nine Months Ended June 28, June 29, June 28, June 29, 2013 2012 2013 2012 Revenue from product sales $ 1,508 $ 1,512 $ 4,388 $ 4,288 Service revenue 1,170 1,143 3,498 3,387 N
Slide 12: Results of Segments
TYCO INTERNATIONAL LTD. RESULTS OF SEGMENTS (in millions) (Unaudited) Quarters Ended Nine Months Ended June 28, June 29, June 28, June 29, 2013 2012 2013 2012 Net Revenue NA Installation & Services $ 966 $ 1,005 $ 2,895 $ 2,920 ROW Installation & Services 1,112 1,087 3,279 3,213 Global Products 600
Slide 13: Consolidated Balance Sheets
TYCO INTERNATIONAL LTD. CONSOLIDATED BALANCE SHEETS (in millions) (Unaudited) June 28, September 28, 2013 2012 Assets Cash and cash equivalents $ 455 $ 844 Accounts receivable, net 1,678 1,696 Inventories 685 634 Prepaid expenses and other current assets 854 884 Deferred income taxes 295 295 Total c
Slide 14: Consolidated Statements of Cash Flows
TYCO INTERNATIONAL LTD. CONSOLIDATED STATEMENTS OF CASH FLOWS (in millions) (Unaudited) For the Quarters Ended For the Nine Months Ended June 28, June 29, June 28, June 29, 2013 2012 2013 2012 Cash Flows From Operating Activities: Net income attributable to Tyco common shareholders $ 135 $ 246 $ 370
Slide 15: Organic Growth Reconciliation - Revenue
Tyco International Ltd. Organic Growth Reconciliation - Revenue (in millions) Quarter Ended June 28, 2013 Base Year Adjustments Net Revenue for Adjusted Net Revenue for the Quarter Ended Divestitures / 2012 Base the Quarter Ended June 29, 2012 Other (3) Revenue Foreign Currency Acquisitions Other (2
Slide 16: Earnings Per Share Summary
Earnings Per Share Summary (Unaudited) June 28, 2013 June 29, 2012 Diluted EPS from Continuing Operations Attributable to Tyco Shareholders (GAAP) $0.28 $0.14 expense / (benefit) Restructuring and repositioning activities 0.10 0.03 Separation costs included in SG&A 0.04 - (Gains) / losses on divesti
Slide 17: Tyco International Ltd. Quarter Ended June 28, 2013
Tyco International Ltd. For the Quarter Ended June 28, 2013 (in millions, except per share data) (Unaudited) expense / (benefit) Segments NA Installation ROW Installation Global Segment Corporate Total & Service & Service Products Revenue and Other Revenue Revenue (GAAP) $966 $1,112 $600 $2,678 - $2
Slide 18: Tyco International Ltd. Quarter Ended June 29, 2012
Tyco International Ltd. For the Quarter Ended June 29, 2012 (in millions, except per share data) (Unaudited) expense / (benefit) Segments NA Installation ROW Installation Global Segment Corporate Total & Service & Service Products Revenue and Other Revenue Revenue (GAAP) $1,005 $1,087 $563 $2,655 -
Slide 19: Non-GAAP Measures
Non-GAAP Measures Organic revenue, free cash flow (outflow) (FCF), and income from continuing operations, earnings per share (EPS) from continuing operations, operating income and segment operating income, and normalized EPS, in each case “before special items,” are non-GAAP measures and should not
Slide 20: Non-GAAP Measures Continued
Non-GAAP Measures Continued The limitation associated with using these cash flow metrics is that they adjust for cash items that are ultimately within management's and the Board of Directors' discretion to direct and therefore may imply that there is less or more cash that is available for the compa
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