17 slides from Johnson Controls International's earnings presentation, Oct 30, 2014
Slide 1: Quarterly update: FY 2014 fourth quarter
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Slide 2: Agenda and Forward-Looking Statements
Johnson Controls, Inc. — 2 1/6 2/6 4/6 5/6 1/4 3/4 1/2 Agenda Introduction Glen Ponczak, Vice President, Global Investor Relations Overview Alex Molinaroli, Chairman and Chief Executive Officer Business results Bruce McDonald, Vice Chairman and Executive Vice President Financial review Brian
Slide 3: Record FY 2014 results despite a mixed macro environment
Johnson Controls, Inc. — 3 1/6 2/6 4/6 5/6 1/4 3/4 1/2 Record FY 2014 results despite a mixed macro environment Segment income margins for the year improved by 90 basis points Automotive Experience +160 bps Power Solutions +60 bps Building Efficiency +30 bps 2014 full year results* Record
Slide 4: Fiscal 2014 actions intended to improve long-term shareholder value
Johnson Controls, Inc. — 4 1/6 2/6 4/6 5/6 1/4 3/4 1/2 Acquisition of ADT, increasing BE product breadth and distribution Divestiture of the Automotive Electronics business Memorandum of Understanding to create a joint venture with Hitachi to expand Building Efficiency product offerings Anno
Slide 5: Fiscal 2014 Management changes
Johnson Controls, Inc. — 5 1/6 2/6 4/6 5/6 1/4 3/4 1/2 Fiscal 2014 Management changes Vice Chairman: Bruce McDonald CFO: Brian Stief BE President: Bill Jackson Vice Chairman Asia and President, AE: Beda Bolzenius
Slide 6: Record Q4 results (continuing operations)
Johnson Controls, Inc. — 6 1/6 2/6 4/6 5/6 1/4 3/4 1/2 Record 2014 fourth quarter (continuing operations)* Net revenues: $11.0 billion, up 3% vs. $10.7 billion in Q4 2013 Segment income: $983 million, up 11% vs. $889 million in Q4 2013 EPS: $1.04 per diluted share, up 14% vs. $0.91 in Q4 2013
Slide 7: Buildings markets
Johnson Controls, Inc. — 7 1/6 2/6 4/6 5/6 1/4 3/4 1/2 2014 fourth quarter Buildings markets Applied HVAC equipment sales JCI sales up 22% compared with Q4 2013 10% industry growth over the same period Reflects share gains Signs of North America non-residential construction-starts improvemen
Slide 8: Expectations entering fiscal 2015
Johnson Controls, Inc. — 8 1/6 2/6 4/6 5/6 1/4 3/4 1/2 Focused on operational excellence, embracing change, leading to new levels of success Expectations entering fiscal 2015 Good momentum Improved late cycle markets Focus on operational excellence, driving further improvements Benefits of cos
Slide 9: Automotive Experience
Johnson Controls, Inc. — 9 1/6 2/6 4/6 5/6 1/4 3/4 1/2 2014 fourth quarter Automotive Experience* Fiscal Q4 production North America up 8% Europe down 1% China up 8% 2014 2013 Net sales $5.3B $5.1B +3% Segment income $261M $205M +27% Segment income margin 5.0% 4.0% +100 bps China sales (most
Slide 10: Building Efficiency
Johnson Controls, Inc. — 10 1/6 2/6 4/6 5/6 1/4 3/4 1/2 2014 fourth quarter Building Efficiency* Commercial backlog and orders (at September 30, 2014) Backlog $4.8B, up 1% ─ Adjusted for divestitures and FX Orders up 11%, adjusted for FX ─ Excluding M&A and FX, orders up 2% 2014 2013 Net sales $
Slide 11: Power Solutions
Johnson Controls, Inc. — 11 1/6 2/6 4/6 5/6 1/4 3/4 1/2 2014 2013 Net sales $1.8B $1.7B +5% Segment income $329M $329M level Segment income margin 18.4% 19.4% -100 bps Improved aftermarket volumes in North America and Asia along with strong OE sales globally Americas up 6% Asia up 10% Europe
Slide 12: Fourth quarter 2014 Financial highlights
Johnson Controls, Inc. — 12 1/6 2/6 4/6 5/6 1/4 3/4 1/2 Fourth quarter 2014 Financial highlights (continuing operations) (in millions) 2014 (excluding items1) 2013 (excluding items2) % change 2014 (reported) 2013 (reported) Sales $10,979 $10,700 +3% $10,979 $10,700 Gross profit % of sales 1,885 17.2
Slide 13: Fourth quarter 2014 Financial highlights (continued)
Johnson Controls, Inc. — 13 1/6 2/6 4/6 5/6 1/4 3/4 1/2 1 Q4 2014 items: 1) $290 million pre-tax mark-to-market and pension settlement loss; 2) $23 million pre-tax transaction / integration costs; 3) $162 million pre-tax restructuring and impairment charge; 4) $18 million net tax provision. Refer to
Slide 14: Balance sheet / cash flow
Johnson Controls, Inc. — 14 1/6 2/6 4/6 5/6 1/4 3/4 1/2 Balance sheet / cash flow Q4 cash provided by operating activities of $1.2 billion Q4 net debt $6.3B Q4 net debt reduction ($1.1B) Trade working capital 6.1% of sales; down 30bps year-over- year Capital spending in line with company e
Slide 15: Expectations and Q1 2015 guidance
Johnson Controls, Inc. — 15 1/6 2/6 4/6 5/6 1/4 3/4 1/2 Expectations Strong momentum, with confidence in Q1 2015 outlook Expect continued strong volumes in Automotive Experience In Building Efficiency, our pipeline supports continued improvement in our orders Building Efficiency restructurin
Slide 16: Appendix
Johnson Controls, Inc. — 16 1/6 2/6 4/6 5/6 1/4 3/4 1/2 Appendix
Slide 17: Q4 costs reconciliation 2014 and 2013
Johnson Controls, Inc. — 17 1/6 2/6 4/6 5/6 1/4 3/4 1/2 Pre-tax Tax After-tax Income (Expense) (Expense) Benefit Income (Expense) EPS Impact Restructuring and Impairment Costs ($162) $27 ($135) ($0.20) Pension / OPEB (290) 72 (218) (0.32) Transaction / Integration Costs (23) 5 (18) (0.03) Income Tax