24 slides from Johnson Controls International's earnings presentation, Jul 21, 2016
Slide 1: Quarterly update FY 2016 third quarter
1/6 2/6 4/6 5/6 1/4 3/4 1/2 Quarterly update FY 2016 third quarter July 21, 2016 Exhibit 99.2
Slide 2: No Offer or Solicitation; Additional Information
Johnson Controls, Inc. — 2 1/6 2/6 4/6 5/6 1/4 3/4 1/2 NO OFFER OR SOLICITATION This communication is not intended to and does not constitute an offer to sell or the solicitation of an offer to subscribe for or buy or an invitation to purchase or subscribe for any securities or the solicitation of a
Slide 3: Participants in the Solicitation; Forward-Looking Statements
Johnson Controls, Inc. — 3 1/6 2/6 4/6 5/6 1/4 3/4 1/2 PARTICIPANTS IN THE SOLICITATION Johnson Controls, Tyco and certain of their respective directors, executive officers and employees may be considered participants in the solicitation of proxies in connection with the proposed transaction. Inform
Slide 4: Cautionary Statement Regarding Forward-Looking Statements (cont.)
Johnson Controls, Inc. — 4 1/6 2/6 4/6 5/6 1/4 3/4 1/2 Johnson Controls Cautionary Statement Regarding Forward-Looking Statements (cont.) materially from those expressed or implied by such forward-looking statements, including, among others, risks related to: Johnson Controls’ and/or Tyco’s ability
Slide 5: Statement Required by the Irish Takeover Rules (cont.)
Johnson Controls, Inc. — 5 1/6 2/6 4/6 5/6 1/4 3/4 1/2 Statement Required by the Irish Takeover Rules (cont.) Centerview Partners LLC is a broker dealer registered with the United States Securities and Exchange Commission and is acting as financial advisor to Johnson Controls and no one else in conn
Slide 6: Agenda
Johnson Controls, Inc. — 6 1/6 2/6 4/6 5/6 1/4 3/4 1/2 Agenda Third quarter highlights and merger updates Alex Molinaroli, President, Chairman and Chief Executive Officer Introduction Kathryn Campbell, Director, Global Investor Relations Business results and financial review Brian Stief, Executive V
Slide 7: FY2016 third quarter highlights
1/6 2/6 4/6 5/6 1/4 3/4 1/2 FY2016 third quarter highlights* 7 Johnson Controls, Inc. -- * Excluding transaction / integration / separation costs and non-recurring items Solid organic growth Building Efficiency revenue up 4% (ex. JCH and FX) Power Solutions revenue up 5% (ex. Lead and FX) Co
Slide 8: Third quarter revenue, segment income and EPS
Johnson Controls, Inc. — 8 1/6 2/6 4/6 5/6 1/4 3/4 1/2 Segment margin FY16 Q3 earnings from continuing operations* excluding FX -1% Level +1% FY16 Q3 FY15 Q3 $9.5 B $9.6 B NET REVENUES FY16 Q3 FY15 Q3 $1,003 M $848 M SEGMENT INCOME +18% +170 bps +18% DILUTED EPS FY16 Q3 FY15 Q3 $1.07 $0.91 * Excludi
Slide 9: Johnson Controls/Tyco Merger: Executing Against Our Day 1 Plan
June 27, 2016 JCI Record Date Johnson Controls/Tyco Merger* Executing Against Our Day 1 Plan March April May June July August September October August 17, 2016 JCI and Tyco shareholder meetings to vote on merger September 2, 2016 JCI/Tyco expected Day 1 legal merger April 4, 2016 Tyco S-4 initial fi
Slide 10: Adient Separation on Track
Adient Separation on Track* March April May June July August September October November July 1, 2016 Adient’s Operational Day 1 October 31, 2016 Adient’s expected Legal Day 1 as an independent company April 26, 2016 Adient Form 10 filed with SEC Internal operational day 1 on July 1 as planned Se
Slide 11: Adient Key Investment Thesis
1/6 2/6 4/6 5/6 1/4 3/4 1/2 Adient Key Investment Thesis Market Position Broadest range of seating products Unparalleled customer diversity– market leadership in North America, Europe and China (unique and longstanding position in China through JV structure); support all major automakers (190+
Slide 12: Building Efficiency
1/6 2/6 4/6 5/6 1/4 3/4 1/2 Building Efficiency* Improved profitability and organic growth +33% +34% +4% FY16 Q3 FY15 Q3 $3.6 B $2.7 B NET REVENUES excluding FX +46% FY16 Q3 FY15 Q3 $397 M $272 M SEGMENT INCOME +48% excluding FX 12 Johnson Controls, Inc. - excluding FX and adjusted for JCH * Excludi
Slide 13: Power Solutions
1/6 2/6 4/6 5/6 1/4 3/4 1/2 Power Solutions Higher volumes and significant margin expansion Segment margins Higher volumes Pricing discipline and product mix +3% +5% FY16 Q3 FY15 Q3 $1.5 B $1.5 B NET REVENUES excluding FX and lead impact +12% FY16 Q3 FY15 Q3 $262 M $234 M SEGMENT INCOME +13% e
Slide 14: Automotive Experience
1/6 2/6 4/6 5/6 1/4 3/4 1/2 Automotive Experience* Significant business wins and record profitability -19% -19% -1% FY16 Q3 FY15 Q3 $4.4 B $5.4 B NET REVENUES excluding FX +1% FY16 Q3 FY15 Q3 $344 M $342 M SEGMENT INCOME +1% excluding FX 14 Johnson Controls, Inc. - excluding FX and adjusted for Inte
Slide 15: Third Quarter FY2016 Financial Highlights
Johnson Controls, Inc. — 15 1/6 2/6 4/6 5/6 1/4 3/4 1/2 Second Quarter 2015 Financial Highlights (continuing operations) Third Quarter FY2016 Financial Highlights (continuing operations) 1 Excluding Q3 2016 items: $167 million transaction / integration / separation costs (in millions) 2016 1 2015 2
Slide 16: Third Quarter FY2016 Financial Highlights (income statement)
Johnson Controls, Inc. — 16 1/6 2/6 4/6 5/6 1/4 3/4 1/2 (in millions, except earnings per share) 2016 1 2015 2 2016 (reported) 2015 (reported) Segment income $1,003 $848 $836 $822 Restructuring and impairment costs - - 102 - Financing charges - net 69 75 69 75 Income from continuing ops. before taxe
Slide 17: Balance Sheet and Cash Flow
Johnson Controls, Inc. — 17 1/6 2/6 4/6 5/6 1/4 3/4 1/2 Second Quarter 2015 Financial Highlights (continuing operations) Balance Sheet and Cash Flow Strong balance sheet Net debt to capitalization of 44.0% at 6/30/16 vs. prior year of 40.7% and 40.0% at 3/31/16 Net debt of $7.5B at 6/30/16 vs.
Slide 18: Matters of Interest
Johnson Controls, Inc. — 18 1/6 2/6 4/6 5/6 1/4 3/4 1/2 Second Quarter 2015 Financial Highlights (continuing operations) Matters of Interest Expected September 2 JCI/Tyco merger closing Q4 will include one month of Tyco FY16 operating results Preliminary purchase accounting New Tyco debt of
Slide 19: FY16 Guidance
Johnson Controls, Inc. — 19 1/6 2/6 4/6 5/6 1/4 3/4 1/2 Second Quarter 2015 Financial Highlights (continuing operations) FY16 Guidance *Above guidance excludes impact of the Tyco merger as well as transaction / integration / separation costs, year-end pension/postretirement mark-to-market adjustment
Slide 20: Appendix
1/6 2/6 4/6 5/6 1/4 3/4 1/2 Appendix
Slide 21: Q3 Non-Recurring Items (Continuing Operations)
Johnson Controls, Inc. — 21 1/6 2/6 4/6 5/6 1/4 3/4 1/2 Second Quarter 2015 Financial Highlights (continuing operations) Q3 Non-Recurring Items (Continuing Operations) Pre-tax Tax NCI After-tax Income (Expense) (Expense) Benefit (Expense) Benefit Income (Expense) EPS Impact Transaction, Integration
Slide 22: Free Cash Flow
Johnson Controls, Inc. — 22 1/6 2/6 4/6 5/6 1/4 3/4 1/2 Second Quarter 2015 Financial Highlights (continuing operations) Free Cash Flow July 21, 2016 Note: May not sum due to rounding Current Prior Current Prior Current Prior Cash provided by operating activities 0.6$ 0.2$ 0.1$ 0.7$ 0.7$ 0.9$ Capita
Slide 23: 2016 Q3 Restructuring and Impairment Costs
Johnson Controls, Inc. — 23 1/6 2/6 4/6 5/6 1/4 3/4 1/2 Second Quarter 2015 Financial Highlights (continuing operations) 2016 Q3 Restructuring and Impairment Costs Restructuring and non-cash impairment charges primarily related to workforce reductions, plant closures and asset impairments July 21, 2
Slide 24: johnsoncontrols.com/investors
1/6 2/6 4/6 5/6 1/4 3/4 1/2 johnsoncontrols.com/investors @JCI_IR