Johnson Controls International plc · NYSE:JCI
Johnson Controls International — Tyco International — Q4 2013 Earnings Presentation
26 slides from Johnson Controls International's earnings presentation, Nov 14, 2013
Slide 1: Fourth Quarter Review
Fourth Quarter Review 14 / November / 2013
Slide 2: Forward-Looking Statements / Safe Harbor
Forward-Looking Statements / Safe Harbor This presentation contains a number of forward-looking statements. In many cases forward-looking statements are identified by words, and variations of words, such as "anticipate," "estimate," "believe," "continue," "could," "intend," "may," "plan," "potential
Slide 3: Reflecting On Year One
Reflecting On Year One Solid first year both strategically and operationally Delivered strong results Significantly improved business fundamentals Strategy focused on disciplined growth and continuous operational improvement Supplemented internal growth with strategic bolt-on acquisitions – strength
Slide 4: Full Year 2013 Results – Financial Overview
Full Year 2013 Results – Financial Overview (EPS amounts are fully diluted and attributable to Tyco common shareholders) ($ in millions, except per-share amounts) ($ in millions) FY13 FY12 Change Revenue $10,647 $10,403 2% Segment Operating Income before special items * $1,411 $1,341 5% Segment Oper
Slide 5: Fiscal 2013 Highlights
Fiscal 2013 Highlights Revenue of $10.6 billion with organic revenue* growth of 1% • Products +6%, Service +3.5% and Installation (4%) Segment operating margin before special items* improved 80 basis points, year over year, on normalized basis** Earnings per share before special items* increased 13%
Slide 6: Q4 2013 Results – Financial Overview
Q4 2013 Results – Financial Overview (EPS amounts are fully diluted and attributable to Tyco common shareholders) ($ in millions, except per-share amounts) ($ in millions) Q4FY13 Q4FY12 Change Revenue $2,761 $2,728 1% Segment Operating Income before special items * $392 $362 8% Segment Operating Mar
Slide 7: Q4 Highlights
Q4 Highlights Revenue of $2.8 billion with organic revenue* growth of 1% • Products +8%, Service +4% and Installation (6%) Segment operating margin before special items* improved 130 basis points, year over year, on normalized basis** Earnings per share before special items* increased 16% over the p
Slide 8: Q4 Highlights, continued
Q4 Highlights, continued Executed disciplined bolt-on acquisitions and divested non-core businesses • Closed previously announced acquisition of Exacq Technologies and Beijing Master Systems Engineering • Earlier this morning, announced acquisition of Westfire, Inc., a leading fire installation and
Slide 9: Fourth Quarter – NA Installation & Services
Fourth Quarter – NA Installation & Services ($ in millions) Organic revenue* declined 2% Q4FY13 Q4FY12 Change year over year Revenue $996 $1,042 (4%) • Service was up 5% • Installation declined 10% Operating Income* $133 $128 4% Operating Margin* 13.4% 12.3% 110bps Operating margin* increased 130 bp
Slide 10: Fourth Quarter – ROW Installation & Services
Fourth Quarter – ROW Installation & Services ($ in millions) Organic revenue* increased 1% Q4FY13 Q4FY12 Change • Service grew 3% Revenue $1,138 $1,128 1% • Installation declined 1.5% Operating Income* $137 $135 1% A two percentage point benefit Operating Margin* 12.0% 12.0% ̶ from acquisitions was
Slide 11: Fourth Quarter – Global Products
Fourth Quarter – Global Products ($ in millions) Organic revenue* increased 8% Q4FY13 Q4FY12 Change with growth across all three Revenue $627 $558 12% platforms Operating Income* $122 $99 23% Acquisitions contributed two and Operating Margin* 19.5% 17.7% 180bps half percentage points of growth Order
Slide 12: Other Items
Other Items Corporate expense before special items was $63 million in the quarter and $236 million for the year • Outlook: Expect fiscal 2014 Corporate expense to be in the range of ~$225 to ~$230 million Tax rate excluding special items was 18.8% for the quarter and 18.3% for the year • Outlook: Ex
Slide 13: Appendix
Appendix
Slide 14: Consolidated Statements of Operations
TYCO INTERNATIONAL LTD. CONSOLIDATED STATEMENTS OF OPERATIONS (in millions, except per share data) (Unaudited) Quarters Ended Twelve Months Ended September 27, September 28, September 27, September 28, 2013 2012 2013 2012 Revenue from product sales $ 1,565 $ 1,557 $ 5,953 $ 5,845 Service revenue 1,1
Slide 15: Results of Segments
TYCO INTERNATIONAL LTD. RESULTS OF SEGMENTS (in millions) (Unaudited) Quarters Ended Twelve Months Ended September 27, September 28, September 27, September 28, 2013 2012 2013 2012 Net Revenue NA Installation & Services $ 996 $ 1,042 $ 3,891 $ 3,962 ROW Installation & Services 1,138 1,128 4,417 4,34
Slide 16: Consolidated Balance Sheets
TYCO INTERNATIONAL LTD. CONSOLIDATED BALANCE SHEETS (in millions) (Unaudited) September 27, September 28, 2013 2012 Assets Cash and cash equivalents $ 563 $ 844 Accounts receivable, net 1,738 1,696 Inventories 655 634 Prepaid expenses and other current assets 857 884 Deferred income taxes 254 295 To
Slide 17: Consolidated Statements of Cash Flows
TYCO INTERNATIONAL LTD. CONSOLIDATED STATEMENTS OF CASH FLOWS (in millions) (Unaudited) For the Quarters Ended For the Twelve Months Ended September 27, September 28, September 27, September 28, 2013 2012 2013 2012 Cash Flows From Operating Activities: Net Income (loss) attributable to Tyco common s
Slide 18: Organic Growth Reconciliation - Revenue
Tyco International Ltd. Organic Growth Reconciliation - Revenue (in millions) Quarter Ended September 27, 2013 Base Year Adjustments Net Revenue for the Adjusted Net Revenue for the Quarter Ended Divestitures / 2012 Base Quarter Ended September 28, 2012 Other (3) Revenue Foreign Currency Acquisition
Slide 19: Earnings Per Share Summary
Earnings Per Share Summary (Unaudited) Quarter Ended Year Ended Quarter Ended Year Ended Sept. 27, 2013 Sept. 27, 2013 Sept. 28, 2012 Sept. 28, 2012 Diluted EPS from Continuing Operations Attributable to Tyco Shareholders (GAAP) $0.34 $1.12 ($1.36) ($0.72) expense / (benefit) Restructuring and repos
Slide 20: Reconciliation: Quarter Ended September 27, 2013
Tyco International Ltd. For the Quarter Ended September 27, 2013 (in millions, except per share data) (Unaudited) expense / (benefit) Segments NA Installation ROW Installation Global Segment Corporate Total & Service & Service Products Revenue and Other Revenue Revenue (GAAP) $996 $1,138 $627 $2,761
Slide 21: Reconciliation: Year Ended September 27, 2013
For the Year Ended September 27, 2013 (in millions, except per share data) (Unaudited) expense / (benefit) Segments NA Installation ROW Installation Global Segment Corporate Total & Service & Service Products Revenue and Other Revenue Revenue (GAAP) $3,891 $4,417 $2,339 $10,647 $0 $10,647 Income Dil
Slide 22: Reconciliation: Quarter Ended September 28, 2012
Tyco International Ltd. For the Quarter Ended September 28, 2012 (in millions, except per share data) (Unaudited) expense / (benefit) Segments NA Installation ROW Installation Global Segment Corporate Total & Service & Service Products Revenue and Other Revenue Revenue (GAAP) $1,042 $1,128 $558 $2,7
Slide 23: Reconciliation: Year Ended September 28, 2012
Tyco International Ltd. For the Year Ended September 28, 2012 (in millions, except per share data) (Unaudited) expense / (benefit) Segments NA Installation ROW Installation Global Segment Corporate Total & Service & Service Products Revenue and Other Revenue Revenue (GAAP) $3,962 $4,341 $2,100 $10,4
Slide 24: Non-GAAP Measures
Non-GAAP Measures Organic revenue, free cash flow (outflow) (FCF), and income from continuing operations, earnings per share (EPS) from continuing operations, operating income and segment operating income, and normalized EPS, in each case “before special items,” are non-GAAP measures and should not
Slide 25: Non-GAAP Measures Continued
Non-GAAP Measures Continued The limitation associated with using these cash flow metrics is that they adjust for cash items that are ultimately within management's and the Board of Directors' discretion to direct and therefore may imply that there is less or more cash that is available for the compa
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