15 slides from Johnson Controls International's earnings presentation, Jul 20, 2011
Slide 1: Quarterly update FY 2011 third quarter
Quarterly update FY 2011 third quarter July 20, 2011 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: Outperforming our industries in a mixed macro environment
2011 third quarter Outperforming our industries in a mixed macro environment Johnson Controls Record revenues - double-digit organic revenue increases in all three businesses 7th consecutive quarter of double-digit growth Organic growth 16% Share gains in the global battery aftermarket Significant n
Slide 4: Outperforming our industries in a mixed macro environment: macro environment
2011 third quarter Outperforming our industries in a mixed macro environment Macro environment Auto production levels stable / growing Strong growth in emerging markets Higher-than-normal battery inventory levels at Power Solutions aftermarket customers early in quarter Significant Japanese OE produ
Slide 5: Third quarter sales, segment income, net income and EPS
2011 third quarter* Sales: $10.4 billion vs. $8.5 billion in 2010 (+21%) Segment income: $541 million vs. $496 million in Q3 2010 (+9%) Net income: $383 million vs. $367 million (+4%) EPS: $0.56 per diluted share vs. $0.54 in Q3 2010 5 *Excluding $0.04/share non-recurring acquisition and related cha
Slide 6: Working capital
2011 third quarter Working capital Factors impacting working capital levels Acquired companies ($100m opportunity) Seasonal pattern Voluntary pension contribution of $175 million Additional addressable factors.... Two-day deterioration in accounts receivable DSO Approx. $150m One day deterioration i
Slide 7: Investing in profitable growth
2011 third quarter Investing in profitable growth Power Solutions Vertical integration (lead recycling) AGM batteries for Start/Stop vehicles Geographic expansion Lithium-ion batteries Automotive Experience China expansion Component excellence Building Efficiency Technical services - delivery effici
Slide 8: Business results
Business results 8 2011 third quarter
Slide 9: Automotive Experience
2011 third quarter Automotive Experience 2011 2010 Net sales $5.1B $4.2B 21% North America up 2% Europe up 38% Asia up 24% China sales (including unconsolidated) up 20% to $936 million Segment income* $171M $171M ----- Higher volumes Containment costs in Europe Inefficiencies in North America and As
Slide 10: Building Efficiency
2011 third quarter Building Efficiency 2011 2010 Net sales $3.9B $3.2B 21% Double-digit increases in all five segments Asia up 43% N.A. Systems and Services up 14% Global Workplace Solutions up 33% Segment income $207M $190M 9% 40bps margin improvement in Asia Net charges of $20 million S. America i
Slide 11: Power Solutions
2011 third quarter Power Solutions 2011 2010 Net sales $1.4B $1.1B 22% Unit volumes up 9% Aftermarket unit volume up 10% OE unit volume up 8% Asia unit volume significantly higher due primarily to Korean JV consolidation Segment income $163M $135M 21% Higher volumes Positive impact of new recycling
Slide 12: Financial review
2011 third quarter Financial review 12
Slide 13: Third quarter 2011 Financial highlights
Third quarter 2011 Financial highlights 13 (in millions) 2011* (excluding items) 2010 (reported) % change 2011 (reported) Sales $10,364 $8,540 21% $10,364 Gross profit % of sales 1,550 15.0% 1,339 15.7% 16% 1,550 15.0% SG&A expenses 1,065 895 19% 1,094 Equity income 56 52 8% 56 Segment income $541 $
Slide 14: Third quarter 2011 Financial highlights
Third quarter 2011 Financial highlights Income tax provision - Underlying 2011 tax rate of 19% vs. 18% in 2010 Non-controlling interests - Improved profitability in consolidated Automotive JVs 14 (in millions, except earnings per share) 2011* (excluding items) 2010* (excluding items) 2011 (reported)
Slide 15: Outlook
2011 Outlook Near-term expectations Automotive Experience Continued improvements in Q4 automotive production Acquisitions increasingly accretive Improved European operational efficiencies Building Efficiency Strong broad-based growth; stable margins Improving backlog, higher orders Emerging market s