13 slides from Johnson Controls International's earnings presentation, Oct 23, 2008
Slide 1: Quarterly update FY 2008 fourth quarter
Quarterly update FY 2008 fourth quarter October 23, 2008 Exhibit 99.2
Slide 2: Agenda
3 Agenda Introduction Glen Ponczak - Director, Investor Relations Overview Steve Roell - Chairman and Chief Executive Officer Fourth quarter 2008 business results Keith Wandell - President and Chief Operating Officer Financial review Bruce McDonald - Executive Vice President and Chief Financial Offi
Slide 3: 2008 Record sales and earnings
5 2008 Record sales and earnings* Sales up 10% to $38.1 billion Earnings per share from continuing operations up 11% $2.33 in 2008 vs. $2.10 in 2007 Gained market share through innovation, quality, cost Sales Higher Building Efficiency and Power Solutions revenues $9.3 B +3% Earnings per share* $0.7
Slide 4: 2008 accomplishments
7 2008 accomplishments Building Efficiency Double-digit top line growth Expanded energy efficiency capabilities: alternative energy, advisory services Gridlogix, PWI acquisitions Grew record backlog 12% to $4.7 billion at 9/30/08 Launched new commercial and residential products Power Solutions Incre
Slide 5: Environment
9 Environment Markets Strong global demand for energy efficiency, sustainability North American "institutional" building construction still growing North American auto production declines Rapid European auto production downturn Emerging markets slowing but still strong (JCI: $6.5 billion in sales*)
Slide 6: Managing through the current cycle
11 Johnson Controls Managing through the current cycle Stay close to our customers to more quickly react to changing markets and needs Further align with the global growth mega trends Leverage talent, technology and processes across the company Execute our growth strategies Use our financial strengt
Slide 7: Building Efficiency
13 Fourth quarter 2008 Building Efficiency 2008 2007 Net sales $3.9 B $3.6 B +8% Double-digit increases in Asia and Middle East for systems and services Higher global chiller unit volume Strong solutions growth Softness in discretionary services Global Workplace Solutions (GWS) up 21% New contract w
Slide 8: Power Solutions
15 Fourth quarter 2008 Power Solutions 2008 2007 Net sales $1.34 B $1.25 B +7% Higher unit selling prices Unit shipments slightly lower Lower OE auto production Steady aftermarket demand Segment income $142 M $161 M -12% Lead volatility Temporary lag in recovering non-lead commodity increases Resin,
Slide 9: Automotive Experience
17 Fourth quarter 2008 Automotive Experience 2008 2007 Net sales $4.1 B $4.2 B -2% North America: down 12% Industry production down 17% Incremental revenues from Plastech joint venture Europe: up 4% Down 6% excluding FX China revenues up (non-consolidated) Up 26% for full year 2008 Segment income $1
Slide 10: Financial highlights
19 Fourth quarter 2008 Financial highlights FX - Euro to U.S. Dollar average exchange rate at $1.51 in Q4 2008 vs. $1.37 in 2007 Gross profit - Impact of Plastech joint venture and higher commodity costs (70bps) SG&A - Increase attributable to F/X and addition of Plastech joint venture Equity Income
Slide 11: Financial highlights
21 Fourth quarter 2008 Financial highlights Financing charges-net - Benefits of de-leveraging partially offset by higher interest rates Income tax provision - No change in 21% tax rate Minority interests - Lower profitability; loss at Plastech joint venture (in millions except per share data) 2008 2
Slide 12: 2009 guidance
23 2009 guidance 3% sales decrease Up 2-3% excluding lead and currency Diluted EPS $1.95 - $2.10 Lower net financing charges Comparable effective tax rate $600 - $700 million cash flow After $300 million voluntary pension contribution No change to guidance provided on October 14, 2008 Q1 outlook: Di
Slide 13: Balance sheet
25 Balance sheet Net debt to capitalization ratio approximately 27.5% Working capital neutral despite 10% increase in sales Capital spending in line with full-year guidance $1.9 billion cash from operations, up from 2007 Strong, consistent cash flows Long-standing "A" credit rating Dividends paid si