18 slides from Johnson Controls International's earnings presentation, Apr 25, 2011
Slide 1: FY 2011 second quarter
April 25, 2011 FY 2011 second quarter Exhibit 99.2
Slide 2: Agenda and forward-looking statement
Agenda Introduction Glen Ponczak, Vice President, Investor Relations Overview Steve Roell, Chairman and Chief Executive Officer Business results and financial review Bruce McDonald, Executive Vice President and Chief Financial Officer Q&A (conclude at noon Eastern time) FORWARD-LOOKING STATEMENT Joh
Slide 3: Three diversified world-class growth businesses
Three diversified world-class growth businesses First half of fiscal 2011 Double-digit top and bottom line performance by all three business segments Automotive Experience Sales: +19% Segment inc. +37%* Building Efficiency Sales +15% Segment inc. +30% Power Solutions Sales +20% Segment inc. +25% Del
Slide 4: Automotive Experience
4 Automotive Experience $800 million in new business awarded Seats, interior systems, electronics All geographic regions Investments to support future growth Three major acquisitions ($1.2 billion) Increased metals capabilities World-class technology Response to changes in OE sourcing First half of
Slide 5: Building Efficiency
5 Building Efficiency Record backlogs and order rates Emerging markets up 30+% Investing in additional sales force and service providers to support future growth Investments in new product enhancements and innovation EnergyConnect acquisition Creates Johnson Controls leadership position in fast-grow
Slide 6: Power Solutions
6 Power Solutions AGM battery capacity investments (higher revenues, margins than traditional lead-acid batteries) More than $420 million in capacity expansion investments approved Increased investments for AGM capacity in Europe Initial investments for AGM capacity in North America Vertical integra
Slide 7: Record sales and earnings
2011 second quarter Record sales and earnings Sales: $10.1 billion vs. $8.3 billion in Q2 2010 (+22%) Segment income*: $557 million vs. $427 million in Q2 2010 (+30%) Net income*: $383 million vs. $292 million in Q2 2010 (+31%) EPS*: $0.56 per diluted share vs. $0.43 in Q2 2010 Record sales and earn
Slide 8: Second half of fiscal 2011
Second half of fiscal 2011 Expecting continued strong performance from Power Solutions and Building Efficiency Building Efficiency: executing on record backlog Power Solutions: market share gains, good demand growth Uncertainties surrounding the automotive supply chain (Japan) Impact of disruptions
Slide 9: Business results
2011 second quarter Business results 9
Slide 10: Automotive Experience
2011 second quarter Automotive Experience 2011 2010 Net sales $5.2B $4.2B 25% North America +22% Europe +26% Asia +37% Includes two-week loss of production in Japan China sales (primarily non-consolidated) +31% to $979 million Segment income $247M* $189M 31% Higher volume, benefits of cost reduction
Slide 11: Building Efficiency
2011 second quarter Building Efficiency 2011 2010 Net sales $3.5B $3.0B 18% Higher revenues in all segments North America +7% Global Workplace Solutions +27% Asia +31% Other (primarily Europe commercial buildings and U.S. residential HVAC) +18% Global chiller shipments up double digits Segment incom
Slide 12: Power Solutions
2011 second quarter Power Solutions 2011 2010 Net sales $1.4B $1.2B 19% Global unit volumes +18% Aftermarket unit volume +18% OE unit volume +16% Impact of lead price changes not material Segment income $178M $134M 33% Higher volume Improved product mix Margin contribution from new Mexican lead recy
Slide 13: Financial review
2011 second quarter Financial review 13
Slide 14: Second quarter 2011 Financial highlights
Second quarter 2011 Financial highlights 14 14 FX - Euro to U.S. dollar average exchange rate at $1.37 in Q2 2011 vs. $1.39 in 2010Sales - Excluding FX, sales +21%Gross profit - Higher volumes offset by commodities and product mix SG&A - Investments in innovation, emerging markets and growth opportu
Slide 15: Second quarter 2011 Financial highlights
Second quarter 2011 Financial highlights Income tax provision - Underlying 2011 tax rate of 19% vs. 18% in 2010Non-controlling interests - Improved profitability in consolidated Automotive and Power Solutions JVs 15 15 * Excludes acquisition related costs in 2011; excludes non-recurring tax charges
Slide 16: Japan earthquake/tsunami update
Japan earthquake/tsunami update Background All employees have been accounted for and facilities sustained minimal damage JCI automotive sales in Japan total $900 million Worldwide sales to Japanese OEMs approximate $4 billion (including non-consolidated) Current Situation Situation remains dynamic S
Slide 17: Japan earthquake/tsunami update: estimated earnings impact
17 Japan earthquake/tsunami update Estimated Earnings Impact Estimated Earnings Impact FY2011 EPS Q2 ($0.02) Q3 ($0.16 - $0.18) Q4 Neutral FY2012 EPS Q1/Q2 $0.18 - $0.20 Financial Impact Lost production in Q3 expected to be recovered in the first half of 2012 Current Q4 production schedules remain s
Slide 18: Revised fiscal 2011 outlook
Revised fiscal 2011 outlook Consolidated net sales Up $1 billion to $39.5 billion Timing of automotive acquisitions Stronger Euro Building Efficiency sales growth +15% Q3 Japan impact ($0.5 billion) EPS - Full Year $2.40 - $2.45 Excluding non-recurring acquisition related costs Japan impact of ($0.1