Johnson Controls International Plc · NYSE:JCI
Johnson Controls International — Q3 2014 Earnings Presentation
12 slides from Johnson Controls International's earnings presentation, Jul 18, 2014
Slide 1: Quarterly update FY 2014 third quarter
Quarterly update FY 2014 third quarter July 18, 2014
Slide 2: Agenda
Agenda Introduction Glen Ponczak, Vice President, Global Investor Relations Overview Alex Molinaroli, Chairman and Chief Executive Officer Business results and financial review Bruce McDonald, Executive Vice President and Chief Financial Officer Q&A FORWARD-LOOKING STATEMENTS Johnson Controls,
Slide 3: Macro environment
2014 third quarter Macro environment Higher global automotive industry production – North America 4% – Europe 1% – China 11% Mixed battery demand – Higher Original Equipment globally – Aftermarket demand stronger in North America and Asia, lower in Europe – European customer aftermarket inventor
Slide 4: Buildings markets
2014 third quarter Buildings markets Institutional buildings (more than half our N.A. business) Institutional sector of the nonresidential construction market continues decline ─ Construction starts down 45% vs. 2008 peak ─ Government building starts down 69% from the 2008 peak Q3 decline in NA
Slide 5: 2014 third quarter (continuing operations)
2014 third quarter (continuing operations)* Net revenues: $10.8 billion, up 3% Portfolio Update Completed in 2014 third quarter vs. $10.5 billion in Q3 2013 Divestiture of Headliner and Visors Segment income: $794 million, up 15% business vs. $690 million in Q3 2013 Divestiture of Automotive
Slide 6: Winning in the marketplace
Winning in the marketplace 2014 third quarter Automotive Experience Awarded $3 billion in new metals programs BMW Brilliance Automotive - new complete seat program for luxury sedan in China, launch in 2017. Expected annual revenues $325+ million Significant level of new interiors business wins
Slide 7: Power Solutions
2014 third quarter Power Solutions 2014 2013 Net sales $1.5B $1.4B +6% Excluding lead, sales were up 8% Improved aftermarket volumes in North America and Asia along with strong OE sales globally AGM – Americas up 6% – Asia up 18% – Europe down 3% AGM volumes up 17% Micro Hybrid Segment income
Slide 8: Building Efficiency
2014 third quarter Building Efficiency* 2014 2013 Commercial backlog Net sales $3.6B $3.7B -4% and orders (at June 30, 2014) BE sales down 1% excluding GWS and divestitures Backlog $4.7B, down 6% – Asia flat ─ Adjusted for divestitures – North America down 4% and foreign exchange – Europe up 6%*
Slide 9: Automotive Experience
2014 third quarter Automotive Experience* 2014 2013 Fiscal Q3 production Net sales $5.7B $5.4B +7% North America up 4% Higher volumes globally Europe up 1% China sales (mostly non-consolidated) up 28% to $1.8B China up 11% Segment income $295M $241M +22% Profitability improvements attrib
Slide 10: Third quarter 2014 Financial highlights (continuing operations)
Third quarter 2014 Financial highlights (continuing operations) % 2014 2013 2014 2013 (in millions) (excluding items1) (excluding items) change (reported) (reported) Sales $10,812 $10,499 3% $10,812 $10,499 Gross profit 1,669 1,564 7% 1,663 1,564 % of sales 15.4% 14.9% 15.4% 14.9% SG&A expenses 963
Slide 11: Third quarter 2014 Financial highlights (continuing operations)
Third quarter 2014 Financial highlights (continuing operations) 2014 2013 2014 2013 (in millions, except earnings per share) (excluding items1) (excluding items 2) (reported) (reported) Segment income $794 $690 $654 $690 Restructuring costs ----- ----- 162 143 Financing charges - net 67 67 67 67 Inc
Slide 12: Balance sheet / cash flow / Q4 guidance
Balance sheet / cash flow / Q4 guidance Q3 cash provided by operating activities Updated continuing operations of $714 million guidance Q3 net debt $7.3B Fourth Quarter $1.00 - $1.02 / share – Q3 net debt reduction ($0.4B) – New debt to finance ADT $1.7B Guidance excludes transaction-related