Johnson Controls International Plc · NYSE:JCI
Johnson Controls International — Deutsche Bank Global Auto Industry Conference 2016
19 slides from Johnson Controls International's conference presentation, Jan 12, 2016
Slide 1: Johnson Controls Automotive
Johnson Controls Automotive January 12, 2016
Slide 2: Forward Looking Statements
Forward Looking Statements Johnson Controls, Inc. has made statements in this document that are forward-looking and, therefore, are subject to risks and uncertainties. All statements in this document other than statements of historical fact are statements that are, or could be, deemed "forward-looki
Slide 3: Our Automotive Business
Our Automotive Business Supports all $16.5 billion 278 22+ million major Seating revenue in 2015 locations seat sets a automakers globally year globally in the + Non-consolidated JVs differentiation - China $6.6 billion of their - Interiors $8.5 billion vehicles
Slide 4: Our Automotive Business
Our Automotive Business Johnson Controls Automotive Seating Yanfeng Automotive Interiors Complete Seat Systems Instrument Panels Seating Components Floor Consoles Metal Structures Mechanisms Door Panels Foam Overhead Consoles Trim & Fabrics Just-In-Time Manufacturing Decorati
Slide 5: Broadest and Most Complete Range of Seating Products
Broadest and Most Complete Range of Seating Products 2015: $16.5B in consolidated global sales [Incl. non-consolidated JVs: $23.7B in global sales] Incl. non- North America (36%) Europe (29%) Asia Pacific (35%) consolidated JVs: 48 locations, 32,900 employees 97 locations, 39,600 employees 91 locati
Slide 6: Established and Trusted Partner for All Global OEMs
Established and Trusted Partner for All Global OEMs 6 Johnson Controls, Inc. — PUBLIC
Slide 7: Market Leader in Complete Seating Systems and Components
Market Leader in Complete Seating Systems and Components Complete Seating Trim: Cut & Sew Trim: Fabric Toyota Toyota Toyota JCI Lear Faurecia Magna JCI Lear Prevent Faurecia JCI Sage Lear Aunde Boshoku Boshoku Boshoku Metals & Mechanisms Large Foam Safety & Comfort Modules Toyota Woodbridge Lear Toy
Slide 8: Well-Positioned in all Global Markets
Well-Positioned in all Global Markets Automotive Seating Market Share by Region Europe 38% China Americas 44% 36% SE Asia, Japan, Korea 13% Total Market Size 2015: $59.8 Billion 8 Johnson Controls, Inc. — PUBLIC
Slide 9: Automotive Seating Winning in China
Automotive Seating Winning in China Approx. 45% seating market share in China, making us the industry leader Daqing Harbin Market expected grow 5-7% Changchun Jilin annually for the next decade Shenyang By leveraging our market Beijing Qingdao Dalian Yancheng Baoding Tianjin position, we will
Slide 10: Automotive Seating - Winning in China: A Track Record of Growth
Automotive Seating - Winning in China A Track Record of Growth, Expected to Continue 11 10 JCI AE Seating China -Sales @ 9 100% ($B) 8 7 6 +25.9% 5 CAGR 4 3 2 1 2000 2005 2010 2015 2020 (est.) 10 Johnson Controls, Inc. — PUBLIC
Slide 11: Introducing Adient – Our New Name and Mission
Introducing Adient – Our New Name and Mission Mission: To be the world class automotive seating supplier “To move through leadership in cost, positively toward a situation or a ADIENT quality, launch execution, and customer satisfaction. stimulus” (ad-ee-ant) We will leverage our capabilities to dri
Slide 12: Introducing Adient – Key Changes Going Forward
Introducing Adient – Key Changes Going Forward Today Future Part of a global multi-industry Focus on automotive seating company – Leaner cost structure Expect 200 bps of margin improvement with double-digit EPS growth over the Improving business performance mid-term Strong cash flow provid
Slide 13: Improving performance Operating System Elements
Improving performance Operating System Elements Automotive leadership Business System Business Systems Leader Led Procurement Leader Led Manufacturing Marketing & Manufacturing Functional Excellence Sales Supply Chain Engineering Functional Excellence Engineering Marketing & Sales Supply Chain
Slide 14: Automotive FY16 Financial Outlook
Automotive FY16 Financial Outlook* Sales decline of 2 - 3% (excluding impact of Key Assumptions* deconsolidation of Interiors)* Automotive Production Prior capital constraints and new business profitability FY16 FY15 hurdles – North America 17.7M 17.4M Strong global production volumes – Europe
Slide 15: Looking Forward: What to Expect
Looking Forward: What to Expect 2016 – 2018 seating backlog: $2.1 billion – Reflects current production and currency assumptions – Backlog mostly in non-consolidated China Selective M&A A return to growth – Booked $850 million in new business since spin- off was announced (Not included in 2016
Slide 16: Preliminary Financial Overview
Preliminary Financial Overview* Key Metrics for Adient Expected Range Debt / EBITDA Leverage 2.0x – 2.5x Cash on Balance Sheet $400M – $600M Debt / Capital Ratio 30% – 35% Tax Rate At or below JCI today Higher to support Capital Expenditures growth initiatives Above average dividend Dividends yield
Slide 17: Initial Framework for Valuing Adient
Initial Framework for Valuing Adient Valuation Approach Comparables EBITDA EBITDA Multiple + Other Global Auto Suppliers Strong Blended Multiple given contribution of equity income Annual cash dividend from JVs enhances cash flow Adient China JVs Equity Income P/E Multiple Equity Income a Key Co
Slide 18: Key Themes For Investors
Key Themes For Investors Adient Global #1 market leader: complete seats and components Distinctly unique position in China through JV structure Best customer mix in each geography Upward trend on profitability, expected to continue – Advantaged by a world-class operating system – Improving R
Slide 19: Today is One Step In Introducing Adient to You
Today is One Step In Introducing Adient to You More to Come as we Move Closer to Separation Process on track for October 1, 2016 legal separation Adient Investor Day Articulation of strategic Investor Meetings story Full strategic operating Comprehensive Form 10 and financial details for prese
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