14 slides from Johnson Controls International's earnings presentation, Jan 22, 2007
Slide 1: Quarterly Update FY 2007 First Quarter
Quarterly Update FY 2007 First Quarter January 19, 2007 Johnson Controls, Inc. ("the Company") has made forward-looking statements in this document pertaining to its financial results for fiscal year 2007 that are based on preliminary data and are subject to risks and uncertainties. All statements o
Slide 2: Agenda
Welcome Denise Zutz - Vice President, Strategy, Investor Relations and Communication Overview John Barth - Chairman and CEO Q1 Business Results Steve Roell - Vice Chairman and Executive Vice President Financial Review Bruce McDonald - Executive Vice President and Chief Financial Officer Q&A (conclud
Slide 3: First Quarter 2007: Record Results
First Quarter 2007: Record Results 5 Performing in-line with our expectations Sales up 9% to record $8.2 billion Higher building efficiency systems and services revenues worldwide Full quarter of York revenues Increase in power solutions revenues Lower automotive experience sales Segment income up 1
Slide 4: Success Factors: Drivers of long-term profitable growth
Success Factors 7 Drivers of long-term profitable growth for Johnson Controls Innovation / technology More than 25 new technologies introduced at North American auto show Awarded second lithium-ion development contract Major technology upgrade release for Metasys building automation system in 2007 M
Slide 5: Success Factors: Drivers of long-term profitable growth
Success Factors Drivers of long-term profitable growth for Johnson Controls Disciplined cost/quality improvement processes Margin improvement: Building efficiency, power solutions, Europe and Asia automotive experience European building efficiency profitability turnaround Launching Powerframe batter
Slide 6: Confirming Full-Year 2007 Earnings Guidance
Confirming Full-Year 2007 Earnings Guidance Consolidated net sales Building efficiency and power solutions growth Approx. $34B (+6%) EPS from continuing operations Growth and building efficiency margin improvements Approx. $6.00 (+14%) Sales - 61st consecutive year of increases Earnings - 17th conse
Slide 7: Q1 2007 Building Efficiency
Q1 2007 Building Efficiency North America industry construction Non-residential spending +10% Residential construction down 25% North American residential A/C market down 40% 2006 conversion to SEER 13 Decline in new construction starts JCI outperforming markets Commercial backlog $3.9B, +22% (at De
Slide 8: Q1 2007 Power Solutions
Q1 2007 Power Solutions 2007 2006 Sales $1.1B $975M +10% Overall unit sales Down slightly in North America Europe aftermarket up Improved pricing, especially in Europe and Latin America Premium product mix Income $142M $112M +27% Continuing to reduce costs through best business practices, Six Sigma,
Slide 9: Q1 2007 Automotive Experience
Q1 2007 Automotive Experience Q1 industry vehicle production N.A. down 8% Light truck volumes down 14% Europe slightly lower North America inventory correction continuing into Q2 JCI 2007 production outlook North America 15.0M (vs.15.5M in Oct. 2006) Europe 20.7M Commodities stable at high levels 20
Slide 10: Q1 2007 Financial Highlights
(in millions) Q1 2007 Financial Highlights FX impact: euro at $1.29 vs $1.19 Double-digit sales growth from building efficiency (+14% pro forma) and power solutions (+10%) partially offset by 11% reduction in automotive experience SG&A increase due to full quarter of York; underlying SG&A down 1% de
Slide 11: Segment Income
Segment Income Business unit performance measure adjusted from operating income to segment income Segment income defined as income before taxes and minority interests, excluding financing charges Change made to more accurately reflect business performance, including earnings from operations accounte
Slide 12: Q1 2007 Financial Highlights
(in millions, except per share data) Q1 2007 Financial Highlights Net financing charges - Higher cost reflects financing of the York acquisition Income taxes - 23% tax rate in line with guidance; prior period includes a $16 million non-recurring tax benefit Earnings per share - Excluding prior perio
Slide 13: Q1 2007 Balance Sheet / Cash Flow Highlights
Capital spending of $230M Forecasting a decline to approx. 30% by fiscal year-end Financial strength for investment in growth initiatives Q1 2007 Balance Sheet / Cash Flow Highlights Total Debt to Total Capitalization Total Debt to Total Capitalization Seasonal working capital usage improved vs. pri
Slide 14: 2007 Quarterly Outlook
2007 Quarterly Outlook Q2: Earnings approximately $1.05, up 27% Momentum in building efficiency Power Solutions Continued strong performance in Europe and Asia Full Year: No change to guidance Sales growth +6% to $34 billion Earnings growth +14% to approximately $6.00/share Debt to total capitalizat