Johnson Controls International Plc · NYSE:JCI
Johnson Controls International — Q1 2024 Earnings Presentation
24 slides from Johnson Controls International's earnings presentation, Jan 30, 2024
Slide 1: Fiscal Q1 2024 Earnings Conference Call
FISCAL Q1 2024 Earnings Conference Call January 30, 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 Q1: CEO Summary
Fiscal Q1: CEO Summary Delivering on Our Commitments While Positioning for the Future Delivered solid Q1 results while managing through Cyber disruption Gaining Gainingmomentum momentumasas leading Building leading Solutions Building provider Solutions with growing record backlog provider Favorable
Slide 4: Accelerating Our Strategy
Value Creation Framework Accelerating Our Strategy Positioned to capture Enhanced Products, secular trends across Services, and Driving margin Disciplined sustainable and Solutions through the expansion capital allocation healthy buildings adoption of OpenBlue Built on Our Strong Foundation of Opera
Slide 5: Solid Results While Managing Through Cyber Incident
Fiscal Q1 Results Solid Results While Managing Through Cyber Incident JCI Sales - Organic % Growth JCI Adj. Segment EBITA/Margin* ($ in Millions) ($ in Millions) -1% -90bps ▪ Service +5% 13.7% Adj. EBITA Margin* Decline YoY Organic Decline ▪ Install (4%) 12.8% $6,068 $6,094 ▪ Global Products (1%) ▪
Slide 6: Global Products Performance
Fiscal Q1 Results Global Products Performance Global Products Sales ($ in Millions) ▪ Price +3% / Volume (4%) -1% $20 Organic Sales ▪ Commercial HVAC2 +LSD $2,080 Decline* ▪ Residential HVAC (HSD); NA Residential (>20%) ($10) $2,062 ▪ Fire and Security (LSD) ($28) ▪ Industrial Refrigeration +>35% ▪
Slide 7: Building Solutions Performance
Fiscal Q1 Results Building Solutions Performance Building Solutions Orders - Organic % Growth Building Solutions Backlog ($ in Billions) Service Install +1% $11.7 $12.0 $12.1 +7% 9% YoY Organic Growth $11.3 $12.1 YoY Organic Growth 8% 8% $2.3 $2.4 $2.2 $2.3 $2.3 5% Service +5% Service +0% $9.0 $9.3
Slide 8: Building Solutions Performance by Segment
Fiscal Q1 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 +6% ▪ Orders +4% ▪ Service +4% +20bps 6% 6% ̵ Service +2% $2.5B ▪ Install +4% 11.5% ̵ In
Slide 9: Introducing Q2 and Updating Full Year Guidance
Outlook Summary Introducing Q2 and Updating Full Year Guidance Q2’24 FY’24 FY’24 Comments Organic Revenue* ~Flat Up ~MSD (previous Up ~MSD) ▪ Anticipate continued China weakness ▪ Normalized seasonality ▪ Global Products stabilize 2H Segment EBITA Up ~50 to 75bps ~14.5% Margin* (previous ~25bps+) ▪
Slide 10: Appendix
City graphic Appendix
Slide 11: Broad-Based Global Reach
Fiscal Q1 Results Broad-Based Global Reach % of Organic Sales Growth* % FY23 North America EMEALA Asia Pac Global Products Consolidated JCI Sales Applied1 40% +low-teens +LSD (high-teens) +LSD2 +LSD Light Commercial3 6% +LSD +LSD Commercial HVAC 46% +LSD +LSD NA Residential 3% (>20%) (>20%) ROW Resi
Slide 12: Disciplined Capital Allocation
Balance Sheet and Adjusted Free Cash Flow Disciplined Capital Allocation Capital Structure ($ millions) Q1 FY23 Q4 FY23 Q1 FY24 Short-term debt and current portion $1,963 $1,030 $2,650 Debt and liquidity Net Debt / EBITDA* of long-term debt ▪ 89% fixed rate debt Long-term debt $7,784 $7,818 $7,959 ▪
Slide 13: A Leader in Building Solutions
Company Overview A Leader in Building Solutions ~$400B+ OPPORTUNITY1 Building Solutions HVAC & Controls ENTERPRISE Delivering • Drive Energy Efficiency Customer • Achieve Sustainability Service SOFTWARE Outcomes • Optimize Building Systems & Equipment SOLUTIONS • Direct Channel Improve Real Estate F
Slide 14: Consolidated Financial Results (Continuing Operations)
Fiscal Q1 2024 Consolidated Financial Results (Continuing Operations) Q1 FY23 Q1 FY24 Q1 FY23* Q1 FY24* % Change ($ in Millions, except earnings per share) GAAP GAAP NON-GAAP NON-GAAP NON-GAAP Sales $6,068 $6,094 $6,068 $6,094 0% Gross profit $2,091 $1,992 $2,092 $1,992 -5% (% of sales) 34.5% 32.7%
Slide 15: Special Items (Continuing Operations)
Fiscal Q1 2024 Special Items (Continuing Operations) ($ in Millions, except EPS) Pre-tax income Tax (Expense) NCI (Expense) After-tax/NCI Q1 FY24 EPS impact (Expense) benefit income income (Expense) Mark-to-market adjustments $22 $(5) - $17 $0.02 Restructuring and impairment costs $(39) $7 $2 $(30)
Slide 16: 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 17: Condensed Consolidated Statements of Income
JOHNSON CONTROLS INTERNATIONAL PLC CONDENSED CONSOLIDATED STATEMENTS OF INCOME (in millions, except per share data; unaudited) Three Months Ended December 31, 2023 2022 Net sales $ 6,094 $ 6,068 Cost of sales 4,102 3,977 Gross profit 1,992 2,091 Selling, general and administrative expenses 1,513 1,5
Slide 18: Condensed Consolidated Statements of Financial Position
JOHNSON CONTROLS INTERNATIONAL PLC CONDENSED CONSOLIDATED STATEMENTS OF FINANCIAL POSITION (in millions; unaudited) December 31, September 30, 2023 2023 ASSETS Cash and cash equivalents $ 1,801 $ 835 Accounts receivable - net 6,045 6,006 Inventories 3,006 2,776 Other current assets 1,202 1,120 Curre
Slide 19: Condensed Consolidated Statements of Cash Flows
JOHNSON CONTROLS INTERNATIONAL PLC CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS (in millions; unaudited) Three Months Ended December 31, 2023 2022 Operating Activities Net income attributable to JCI $ 374 $ 118 Income attributable to noncontrolling interests 30 38 Net income 404 156 Adjustments t
Slide 20: Footnotes: Financial Summary
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 21: Diluted Earnings Per Share Reconciliation
2. Diluted Earnings Per Share Reconciliation The Company's press release contains financial information regarding adjusted earnings per share, which is a non-GAAP performance measure. The adjusting items shown in the table below are excluded because these items are not considered to be directly rela
Slide 22: Organic Growth Reconciliation
3. Organic Growth Reconciliation The components of the change in net sales for the three months ended December 31, 2023 versus the three months ended December 31, 2022, including organic growth, are shown below (unaudited): Adjusted Base Net Net Sales for the Sales for the Net Sales for the Three Mo
Slide 23: Adjusted Free Cash Flow Conversion
4. Adjusted Free Cash Flow Conversion The Company's press release contains financial information regarding adjusted free cash flow and adjusted free cash flow conversion, which are non-GAAP performance measures. We also present below free cash flow conversion from the GAAP measure of net income attr
Slide 24: Debt Ratios
5. Debt Ratios The Company's earnings presentation provides financial information regarding net debt to adjusted EBITDA, which is a non-GAAP performance measure. We also present below net debt to income before income taxes. The Company believes these ratios are useful to understanding the Company's
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