13 slides from Johnson Controls International's earnings presentation, Jul 21, 2009
Slide 1: Quarterly update FY 2009 third quarter
Quarterly update FY 2009 third quarter July 20, 2009
Slide 2: Agenda and Forward-Looking Statement
2 2 Agenda Introduction Glen Ponczak - Director, Investor Relations Overview and Economic Environment / Outlook Steve Roell - Chairman and Chief Executive Officer Business Results and Financial Review Bruce McDonald - Executive Vice President and Chief Financial Officer Q&A FORWARD-LOOKING STATEMENT
Slide 3: 2009 third quarter: a return to solid profitability
3 2009 third quarter A return to solid profitability, despite continued depressed market conditions Sales: $7.0 billion vs. $9.9 billion in 2008 Segment income: $282 million Building Efficiency and Power Solutions profitable; Automotive Experience profitable in Asia and Europe, much smaller sequenti
Slide 4: 2009 Q3 highlights
2009 Q3 highlights Awarded immediate takeover seating and interiors business Bidding on 2,700 ARRA-funded (stimulus) projects worth $800 million; meaningful to revenue in late 2010 Introduced enhanced Energy and Emissions Management System; analyzes energy trends, calculates greenhouse gas levels; h
Slide 5: Economic environment and outlook: automotive markets
5 5 2009 third quarter Economic environment and outlook Automotive markets appear to be stabilizing North America Q3 production down 48% vs. last year Chrysler/GM extended production shutdowns "Cash for Clunkers" legislation passed in U.S.; could pull forward sales of 250k vehicles, particularly sma
Slide 6: Economic environment and outlook: building markets
2009 third quarter Economic environment and outlook American Institute of Architects July 13, 2009 Construction Forecast "...beginning to see some moderation in the trends in design billings at architecture firms, so we hopefully are nearing the bottom of this cycle." Education construction decrease
Slide 7: Automotive Experience
7 7 2009 third quarter Automotive Experience 2009 2008 Net sales $3.0 B $4.8 B - 38% Sales down 31%, adjusted for currency Declines across all geographies (except China), customers and product segments North America: down 41% Europe: down 37% (down 25% excluding currency) China sales (unconsolidated
Slide 8: Building Efficiency
8 8 2009 third quarter Building Efficiency 2009 2008 Net sales $3.2 B $3.7 B - 14% Adjusted for currency, sales down 7% Lower revenues across all segments and geographies Asia, E. Europe, Latin America down 10% - 15% (excluding currency) Technical services down low double-digits Discretionary servic
Slide 9: Power Solutions
9 9 2009 third quarter Power Solutions 2009 2008 Net sales $856 M $1.4 B - 39% Lead and currency impact ($520 M) Unit volumes down 12% OE unit volume down 34% in Americas; 29% in Europe Aftermarket unit volume down mid-single digits in N.A. and Europe Segment income $106 M $145 M - 27% Lower unit vo
Slide 10: Financial highlights
10 10 2009 third quarter Financial highlights (in millions) 2009 2008 %change Sales $6,979 $9,865 - 29% Gross profit % of sales 1,039 14.9% 1,485 15.1% - 30% SG&A expenses 787 877 - 10% Equity income 30 37 - 19% Segment income $282 $645 -56% FX - Euro to U.S. Dollar average exchange rate at $1.36 in
Slide 11: Financial highlights
11 11 2009 third quarter Financial highlights Net financing charges - Includes impact of high coupon convertible debt offerings Income tax provision - Net non-recurring $9m benefit; underlying Q3 rate of 27% Minority interests - Losses at AE NA subsidiaries Diluted earnings per share - Share count 6
Slide 12: Balance sheet
12 2009 third quarter Balance sheet Strong liquidity position Revolver matures in December 2011 Liquidity cushion $2.2 billion Cash flow positive $343 million from operations and investing Reduction in net debt $245 million Net debt to capitalization ratio approximately 33.8% vs. 36.2% at end of Q2
Slide 13: 2009 Q4 expectations
13 2009 Q4 expectations Sequential improvement in profitability Accelerating benefit of restructuring initiatives Seasonality in Building Efficiency Automotive Experience expected to be profitable Power Solutions segment income comparable with 2008 level Improved Building Efficiency results Seasonal