Johnson Controls International plc · NYSE:JCI
Johnson Controls International — Q4 2014 Earnings Presentation
17 slides from Johnson Controls International's earnings presentation, Oct 30, 2014
Slide 1: Quarterly update FY 2014 fourth quarter
If you can read this If you can read this Click on the icon Click on the icon to choose a to choose a picture or picture or Reset the slide. Reset the slide. To Reset: Right click on the To Reset: Right click on the slide thumbnail and select slide thumbnail and select ‘reset slide’ or choose the ‘r
Slide 2: Agenda
Agenda Introduction Glen Ponczak, Vice President, Global Investor Relations Overview Alex Molinaroli, Chairman and Chief Executive Officer Business results Bruce McDonald, Vice Chairman and Executive Vice President Financial review Brian Stief, Executive Vice President and Chief Financial Of
Slide 3: 2014 full year results: Record sales and earnings
2014 full year results* Record sales and earnings Record FY 2014 results despite a 2014 full year* mixed macro environment Record revenues: $42.8 billion Segment income margins for the year improved by 90 basis points Record earnings from continuing operations: Automotive Experience +160 bps $
Slide 4: Fiscal 2014 Actions intended to improve long-term shareholder value
Fiscal 2014 Actions intended to improve long-term shareholder value $3.65 billion share repurchase program; $1.2 billion completed in Q1 2014 16 percent increase in the quarterly dividend Implementing the Johnson Controls Operating System to leverage scale, technology and expertise across the
Slide 5: Fiscal 2014 Management changes
Fiscal 2014 Management changes Vice Chairman: Bruce McDonald CFO: Brian Stief BE President: Bill Jackson Vice Chairman Asia and President, AE: Beda Bolzenius 5 Johnson Controls, Inc. —
Slide 6: Record 2014 fourth quarter (continuing operations)
Record 2014 fourth quarter (continuing operations)* Net revenues: $11.0 billion, up 3% Thank you to our employees vs. $10.7 billion in Q4 2013 Delivering on commitments Segment income: $983 million, up 11% during a period of significant organizational change vs. $889 million in Q4 2013 EPS: $1
Slide 7: 2014 fourth quarter Buildings markets
2014 fourth quarter Buildings markets Applied HVAC equipment sales AIA Monthly Architectural Billings JCI sales up 22% compared with Index (ABI) --Institutional Q4 2013 60 10% industry growth over the same 55 period 50 Reflects share gains Signs of North America non-residential 45 constructi
Slide 8: Expectations entering fiscal 2015
Expectations entering fiscal 2015 Good momentum Improved late cycle markets Focus on operational excellence, driving further improvements Benefits of cost discipline and pricing initiatives Continuing to invest for long-term growth and margin expansion Stronger cash flows Geographic and
Slide 9: 2014 fourth quarter Automotive Experience
2014 fourth quarter Automotive Experience* 2014 2013 Fiscal Q4 production Net sales $5.3B $5.1B +3% North America up 8% Segment income $261M $205M +27% Europe down 1% Segment income margin 5.0% 4.0% +100 bps China up 8% China sales (mostly non-consolidated) up 17% to $1.8B Profitability im
Slide 10: 2014 fourth quarter Building Efficiency
2014 fourth quarter Building Efficiency* 2014 2013 Commercial backlog Net sales $3.9B $3.9B +1% and orders Segment income $393M $355M +11% (at September 30, 2014) Segment income margin 10.0% 9.1% +90 bps Backlog $4.8B, up 1% ─ Adjusted for BE sales down 3% adjusted for FX and M&A divestitures an
Slide 11: 2014 fourth quarter Power Solutions
2014 fourth quarter Power Solutions* 2014 2013 Net sales $1.8B $1.7B +5% Segment income $329M $329M level Segment income margin 18.4% 19.4% -100 bps Improved aftermarket volumes in North America AGM and Asia along with strong OE sales globally Americas up 6% Asia up 10% Europe down 3% AGM
Slide 12: Fourth quarter 2014 Financial highlights (continuing operations)
Fourth quarter 2014 Financial highlights (continuing operations) % 2014 2013 2014 2013 (in millions) (excluding items1) (excluding items2) change (reported) (reported) Sales $10,979 $10,700 +3% $10,979 $10,700 Gross profit 1,885 1,841 +2% 1,842 2,025 % of sales 17.2% 17.2% 16.8% 18.9% SG&A expenses
Slide 13: Fourth quarter 2014 Financial highlights (continuing operations)
Fourth quarter 2014 Financial highlights (continuing operations) 2014 2013 2014 2013 (in millions, except earnings per share) (excluding items1) (excluding items 2) (reported) (reported) Operating income $983 $889 $670 $1,341 Restructuring costs ----- ----- 162 730 Financing charges - net 66 54 66 5
Slide 14: Balance sheet / cash flow
Balance sheet / cash flow Q4 cash provided by operating activities of $1.2 billion Q4 net debt $6.3B Q4 net debt reduction ($1.1B) Trade working capital 6.1% of sales; down 30bps year-over- year Capital spending in line with company expectations 2014 free cash flow of $1.5 billion, inclu
Slide 15: Expectations
Expectations Strong momentum, with confidence in Q1 2015 Q1 2015 guidance outlook $0.74 - $0.77 / share; up Expect continued strong volumes in 12% to 17% year over year Automotive Experience Guidance continues to In Building Efficiency, our pipeline supports exclude transaction / continued
Slide 16: Appendix
Appendix 16 Johnson Controls, Inc. —
Slide 17: Q4 non-recurring / unusual items and transaction / integration costs
Q4 non-recurring / unusual items and transaction / integration costs 2014 Pre-tax Tax After-tax Income (Expense) (Expense) Benefit Income (Expense) EPS Impact Restructuring and Impairment Costs ($162) $27 ($135) ($0.20) Pension / OPEB (290) 72 (218) (0.32) Transaction / Integration Costs (23) 5 (18)