23 slides from Johnson Controls International's earnings presentation, Jan 28, 2016
Slide 1: Quarterly update FY 2016 first quarter
Quarterly update FY 2016 first quarter January 28, 2016
Slide 2: No Offer or Solicitation; Additional Information
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 any vote or approval in any jurisdiction, nor shall ther
Slide 3: Participants in the Solicitation; Forward-Looking Statements
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. Information regarding the persons who may, under the rules of
Slide 4: Cautionary Statement Regarding Forward-Looking Statements (cont.)
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 to obtain necessary shareholder approvals or to satisfy
Slide 5: Statement Required by the Irish Takeover Rules
Statement Required by the Irish Takeover Rules The directors of Johnson Controls accept responsibility for the information contained in this communication. To the best of the knowledge and belief of the directors of Johnson Controls (who have taken all reasonable care to ensure that such is the case
Slide 6: Agenda
Agenda Introduction 1 Glen Ponczak, Vice President, Global Investor Relations First quarter highlights, updates and Tyco merger 2 Alex Molinaroli, President, Chairman and Chief Executive Officer Business results and financial review 3 Brian Stief, Executive Vice President and Chief Financial Officer
Slide 7: FY16 Q1 earnings from continuing operations
FY16 Q1 earnings from continuing operations* NET REVENUES DILUTED EPS $9.6 B $8.9 B -7% $0.82 $0.74 +11% +2% excluding FX, FY16 Q1 FY15 Q1 adjusted for Hitachi FY16 Q1 FY15 Q1 and Interiors JVs SEGMENT INCOME $788 M Segment margin $719 M +10% +130 bps +12% excluding FX and FY16 Q1 FY15 Q1 adjusted f
Slide 8: FY2016 first quarter highlights
FY2016 first quarter highlights* Continued track record of y-o-y profitability improvements • Adjusted earnings per share up 11% • Segment income margins up 130 bps • Johnson Controls Operating System delivering increasing benefits Investments in growth paying dividends • Building Efficiency gai
Slide 9: Strategic and Financial Updates
Strategic and Financial Updates Automotive Experience separation on track Tyco merger • Announced January 25th • Milestone transaction in strategic transformation to a global multi-industrial leader • Significant value creation Share repurchase program • Resuming previously announced share rep
Slide 10: Johnson Controls Announces New Automotive Company to be Named Adient
Automotive update Johnson Controls Announces New Automotive Company to be Named Adient Operational Momentum – Announced $850M in new business awards and $750M in replacement business secured within last 6 months Separation – Separation costs tracking in line with previous estimate Timing – For
Slide 11: Johnson Controls and Tyco to Merge
Johnson Controls and Tyco to Merge Creates new global leader uniquely positioned to provide the most comprehensive portfolio of building and energy platforms Highly strategic combination will be the leading full-scale building products and services business, integrating best-in-class product, in
Slide 12: Value Creation for JCI Shareholders
Value Creation for JCI Shareholders JCI Shareholders JCI Shareholders Have Post Merger and Spin Have Today JCI + Tyco Adient 100% ownership of 1 Own ~56% of combined 3 Own 56% of Adient equity Johnson Controls company equity including capitalized value of: + $500M operating synergies + $150M ta
Slide 13: Building Efficiency: Significant growth from Hitachi JV
Building Efficiency* Significant growth from Hitachi JV NET REVENUES Higher revenues in North America (SSNA +4%) and Middle East largely offset by declines in Asia $3.0 B $2.5 B +18% (ex. Hitachi), Latin America and Europe Orders secured +5% (ex. FX and Hitachi JV) +22% NA Region +8% (ex. FX);
Slide 14: Power Solutions: Strong volumes and profitability
Power Solutions Strong volumes and profitability NET REVENUES Excluding FX and lower lead pass throughs, $1.8 B $1.7 B sales +3% Higher volumes in all regions (record 1M -6% battery shipments in December in China) Global shipments of AGM for start-stop +41% +3% excluding FX Solid growth in b
Slide 15: Automotive Experience: Solid global volumes and record Q1 profitability
Automotive Experience* Solid global volumes and record Q1 profitability NET REVENUES FY16 Q1 industry light vehicle production $5.3 B • North America up 2% $4.2 B -20% • Europe up 2% -15% excluding FX • China up 13% China sales at $3.3B at 100% up 58% (+11% ex. FX and Interiors JV) +4% excluding
Slide 16: First Quarter FY2016 Financial Highlights (continuing operations)
Second Quarter 2015 First Quarter FY2016 Financial Highlights (continuing operations) Financial Highlights (continuing operations) % 1 2 2016 2015 (in millions) 2016 2015 Change (reported) (reported) Sales $8,929 $9,624 -7% $8,929 $9,624 Gross profit 1,636 1,609 +2% 1,633 1,609 % of sales 18.3% 16.7
Slide 17: First Quarter FY2016 Financial Highlights (continuing operations)
Second Quarter 2015 First Quarter FY2016 Financial Highlights (continuing operations) Financial Highlights (continuing operations) 1 2 2016 2015 (in millions, except earnings per share) 2016 2015 (reported) (reported) Segment income $788 $719 $687 $706 Financing charges - net 68 71 68 71 Income from
Slide 18: Balance Sheet and Cash Flow Highlights
Second Quarter 2015 Financial Balance Sheet Highlights and Cash (continuing Flow operations) Strong balance sheet Q1 FY16 net debt to capitalization of 39.1% at 12/31/15 vs prior year of 40.5% and 36.7% at 9/30/15 Net debt of $6.7B at 12/31/15 versus $6.0B at 9/30/15 Capex of $0.3B in the qu
Slide 19: FY16 Guidance
Second Quarter 2015 Financial FY16 Guidance Highlights (continuing operations) FY16 Guidance* Q2 FY16 $0.80 - $0.83 Diluted EPS +10% - +14% Analyst Day: FY16 Full Year Financial Guidance Sales Growth Segment Margin % Building Building Efficiency 9-11% Efficiency 9.2-9.4% (ex. Hitachi) (ex. Hitachi)
Slide 20: Appendix
+ so eT Appendix = Sa Johnson Wi | Controls
Slide 21: JCI + Tyco Proforma Share Reconciliation
Second Quarter 2015 Financial JCI + TYCOHighlights Proforma(continuing Share Reconciliation operations) (Approximation) (in millions, except stock split ratio) Tyco diluted shares 430 Reverse stock split x .955 Tyco post-stock split diluted shares 411 A JCI diluted shares 653 Less: expected share re
Slide 22: Building Efficiency Segment Reporting Change
Second Quarter 2015 Financial Building Efficiency HighlightsSegment (continuing Reporting operations) Change Previous Segments Adjustments New Segments NA Systems & Service Systems & Service NA NA Products & Distribution Air Distribution Technologies (ADT) Products North America Unitary Products Gro
Slide 23: johnsoncontrols.com/investors
johnsoncontrols.com/investors @JCI_IR