Johnson Controls International Plc · NYSE:JCI
Johnson Controls International — Q2 2024 Earnings Presentation
30 slides from Johnson Controls International's earnings presentation, May 1, 2024
Slide 1: Fiscal Q2 2024 Earnings Conference Call
FISCAL Q2 2024 Earnings Conference Call May 1, 2024
Slide 2: Forward-Looking and Cautionary Statements/Non-GAAP Financial Information
FORWARD-LOOKING AND CAUTIONARY STATEMENTS/NON-GAAP FINANCIAL INFORMATION Johnson Controls International plc cautionary statement regarding forward-looking statements Johnson Controls International plc has made statements in this communication that are forward-looking and therefore are subject to ris
Slide 3: Fiscal Q2: CEO Summary
Fiscal Q2: CEO Summary Delivering Results Through Our Transformation Gained momentum with accelerating sales growth and margin expansion Increased order strength in Systems and Service driven by continued demand in data centers Grew backlog to record levels, providing visibility into second half Fur
Slide 4: A Comprehensive Solutions Provider for Commercial Buildings
Portfolio Transformation A Comprehensive Solutions Provider for Commercial Buildings One End-to-End Business Solutions Operating Model 75% Systems Services Solutions Light Commercial HVAC Enabled by Digital 6% SMART BUILDING PLATFORM Fire & Security (Indirect) 9% $27B LED BY DI FY23 Revenue NAB GI E
Slide 5: Capitalizing on Increasing Demand for Cooling Technology Solutions
Data Center Solutions Opportunity Capitalizing on Cooling Technology Solutions Increasing Demand One of the top ten Global organization with Successful AI deployments Long-tenured CUSTOMER colocation data center multiple data center with network and managed partnership with JCI PROFILE companies in
Slide 6: Gaining Momentum Led by Service Strength
Fiscal Q2 Results Gaining Momentum Led by Service Strength JCI Sales - Organic % Growth Balance Sheet and Reported Adjusted Free Cash Flow* ($ in Millions) ($ in Millions) $21 +1% Balance Sheet $76 YoY Organic Growth ▪ 76% fixed rate debt $6,686 ($84) $6,699 ▪ ~$0.8B cash position $45 ▪ 2.4X Net Deb
Slide 7: Sustaining Solid Global Products Performance
Fiscal Q2 Results Sustaining Solid Global Products Performance Global Products Sales ($ in Millions) (1%) ▪ Price +3% / Volume (4%) Organic Sales Decline* ▪ Commercial HVAC1 +LSD $2,468 ($13) $4 ($54) $2,405 ▪ Residential HVAC (LSD) ▪ NA Residential (MSD) ▪ Fire and Security (LSD) ▪ Industrial Refri
Slide 8: Driving Improvement in Building Solutions Performance
Fiscal Q2 Results Driving Improvement in Building Solutions Performance Building Solutions Orders - Organic % Growth Building Solutions Backlog ($ in Billions) 12% Service Install +12% $12.6 +10% 9% YoY Organic Growth $11.7 $12.0 $12.1 $12.1 YoY Organic Growth 8% 8% $2.3 $2.3 $2.4 $2.2 $2.3 Service
Slide 9: Building Solutions Performance by Segment
Fiscal Q2 Results Building Solutions Performance by Segment Adj. Segment Orders Orders / Backlog Sales Sales Adj. Segment EBITA/Margin* Organic % Growth Comments Organic % YoY* Comments EBITA Comments Change YoY +19% ▪ Orders +8% ▪ Service +6% +110bps 19% $2.7B ▪ Growth: ~$60M ̵ Service +6% ▪ System
Slide 10: Introducing Q3 and Maintaining Full Year Guidance
Outlook Summary Introducing Q3 and Maintaining Full Year Guidance Q3’24 FY’24 FY’24 Comments Organic Revenue* Up ~LSD Up ~MSD (unchanged) ▪ Strong backlog conversion ▪ Service up HSD ▪ Global Products performance Adjusted Segment Up ~50 to 75bps ~17.0% sustained through 2H EBITA Margin* (unchanged)
Slide 11: Delivering Results
Fiscal Q2 Highlights Delivering Results Gained momentum Increased order strength Grew record backlog Further strengthened cash flow and balance sheet Advanced our transformation 11
Slide 12: Appendix
City graphic Appendix
Slide 13: Broad-Based Global Reach
Fiscal Q2 Results Broad-Based Global Reach % of Organic Sales Growth* % FY23 North America EMEALA Asia Pac Global Products Consolidated JCI Sales Applied1 40% +high-teens (MSD) (>25%) (MSD)2 +LSD Light Commercial3 6% +mid-teens +mid-teens Commercial HVAC 46% +LSD +LSD NA Residential 3% (MSD) (MSD) R
Slide 14: Disciplined Capital Allocation
Balance Sheet and Adjusted Free Cash Flow Disciplined Capital Allocation Capital Structure ($ billions) Q2 FY23 Q1 FY24 Q2 FY24 Short-term debt and current portion $2.7 $2.7 $3.4 Net Debt / EBITDA* of long-term debt Debt and liquidity ▪ 76% fixed rate debt Long-term debt $7.8 $7.9 $7.3 ▪ 3.6% weight
Slide 15: Consolidated Financial Results (Continuing Operations)
Fiscal Q2 2024 Consolidated Financial Results (Continuing Operations) Q2 FY23 Q2 FY24 Q2 FY23* Q2 FY24* % Change ($ in Millions, except earnings per share) GAAP GAAP NON-GAAP NON-GAAP NON-GAAP Sales $6,686 $6,699 $6,686 $6,699 0% Gross profit $2,241 $2,181 $2,245 $2,214 -1% (% of sales) 33.5% 32.6%
Slide 16: Special Items (Continuing Operations)
Fiscal Q2 2024 Special Items (Continuing Operations) ($ in Millions, except EPS) Three Months Ended March 31 Net income (Expense) EPS impact 2023 2024 2023 2024 Mark-to-market adjustments $(4) $15 $(0.01) $0.02 Restructuring and impairment costs $(418) $(254) $(0.61) $(0.37) NCI impact of restructur
Slide 17: IR Contacts
IR Contacts Jim Lucas Vice President, Investor Relations jim.lucas@jci.com Michael Gates Senior Director, Investor Relations michael.j.gates@jci.com www.johnsoncontrols.com © 2023 Johnson Controls. All rights reserved.
Slide 18: Consolidated Statements of Income
JOHNSON CONTROLS INTERNATIONAL PLC CONSOLIDATED STATEMENTS OF INCOME (in millions, except per share data; unaudited) Three Months Ended Six Months Ended March 31, March 31, 2024 2023 2024 2023 Net sales Products and systems $ 4,985 $ 5,083 $ 9,474 $ 9,639 Services 1,714 1,603 3,319 3,115 6,699 6,686
Slide 19: Condensed Consolidated Statements of Financial Position
JOHNSON CONTROLS INTERNATIONAL PLC CONDENSED CONSOLIDATED STATEMENTS OF FINANCIAL POSITION (in millions; unaudited) March 31, 2024 September 30, 2023 Assets Cash and cash equivalents $ 843 $ 835 Accounts receivable - net 6,688 6,006 Inventories 2,991 2,776 Other current assets 1,355 1,120 Current as
Slide 20: Consolidated Statements of Cash Flows
JOHNSON CONTROLS INTERNATIONAL PLC CONSOLIDATED STATEMENTS OF CASH FLOWS (in millions; unaudited) Three Months Ended Six Months Ended March 31, March 31, 2024 2023 2024 2023 Operating Activities Net income (loss) attributable to Johnson Controls $ (277) $ 133 $ 97 $ 251 Income attributable to noncon
Slide 21: Footnotes
FOOTNOTES 1. Financial Summary The Company evaluates the performance of its business units primarily on segment earnings before interest, taxes and amortization (EBITA), which represents income before income taxes and noncontrolling interests, excluding general corporate expenses, intangible asset a
Slide 22: Segment EBITA Reconciliation
The following is the three months ended March 31, 2024 and 2023 reconciliation of segment EBITA as reported to adjusted segment EBITA (unaudited): Building Solutions Building Solutions Building Solutions (in millions) North America EMEA/LA Asia Pacific Global Products 2024 2023 2024 2023 2024 2023 2
Slide 23: Net Income and Diluted EPS Reconciliations
2. Net Income and Diluted Earnings Per Share Reconciliations The Company's press release contains financial information regarding adjusted earnings per share and adjusted net income (loss) attributable to JCI, which are non-GAAP performance measures. The adjusting items shown in the table below are
Slide 24: Six Months EPS Reconciliation
A reconciliation of diluted earnings per share as reported to adjusted diluted earnings per share and net income (loss) attributable to JCI to adjusted net income (loss) attributable to JCI for the six months ended March 31, 2024 and 2023 is shown below (unaudited): Six Months Ended March 31, Net in
Slide 25: Organic Growth Reconciliation
3. Organic Growth Reconciliation The components of the change in net sales for the three months ended March 31, 2024 versus the three months ended March 31, 2023, including organic growth, are shown below (unaudited): Building Solutions North Asia Global Total JCI (in millions) America EMEA/LA Pacif
Slide 26: Service Revenue Organic Growth Components
The components of the change in total service revenue for the three months ended March 31, 2024 versus the three months ended March 31, 2023, including organic growth, is shown below (unaudited): Building Solutions North Asia Global Total JCI (in millions) America EMEA/LA Pacific Total Products plc
Slide 27: Systems/Install Revenue Organic Growth Components
The components of the change in total systems/install revenue for the three months ended March 31, 2024 versus the three months ended March 31, 2023, including organic growth, is shown below (unaudited): Building Solutions North Asia Global Total JCI (in millions) America EMEA/LA Pacific Total Produ
Slide 28: Adjusted Free Cash Flow Conversion
4. Adjusted Free Cash Flow Conversion The Company's press release contains financial information regarding adjusted cash flows from operating activities, adjusted free cash flow and adjusted free cash flow conversion, which are non-GAAP performance measures. We also present below free cash flow conv
Slide 29: Adjusted Free Cash Flow Calculation
The following is the three and six months ended March 31, 2024 and 2023 calculation of adjusted free cash flow and adjusted free cash flow conversion (unaudited): Three Months Ended Six Months Ended (in millions) March 31, 2024 March 31, 2023 March 31, 2024 March 31, 2023 Free cash flow $ (336) $ 19
Slide 30: Adjusted EBIT and EBITDA Reconciliation
The following is the twelve months ended March 31, 2024, December 31, 2023, and March 31, 2023 reconciliation of income from continuing operations to adjusted EBIT and adjusted EBITDA, which are non- GAAP performance measures (unaudited): Last Twelve Months Last Twelve Months Last Twelve Months Ende
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