Johnson Controls International Plc · NYSE:JCI

Johnson Controls International — Q2 2016 Earnings Presentation

21 slides from Johnson Controls International's earnings presentation, Apr 21, 2016

  1. Slide 1: Quarterly update FY 2016 second quarter

    Quarterly update FY 2016 second quarter April 21, 2016

  2. 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

  3. 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

  4. Slide 4: Cautionary Statement Regarding Forward-Looking Statements (cont.)

    Johnson Controls Cautionary Statement Regarding Forward-Looking Statements (cont.) or the combined company’s actual results to differ 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 o

  5. Slide 5: Statement Required by the Irish Takeover Rules (cont.)

    Statement Required by the Irish Takeover Rules (cont.) Centerview Partners LLC is a broker dealer registered with the United States Securities and Exchange Commission and is acting as financial advisor to Johnson Controls and no one else in connection with the proposed transaction. In connection wit

  6. Slide 6: Agenda

    Agenda Introduction 1 Kathryn Campbell, Director, Global Investor Relations Second quarter highlights and portfolio updates 2 Alex Molinaroli, President, Chairman and Chief Executive Officer Business results and financial review 3 Brian Stief, Executive Vice President and Chief Financial Officer 4 Q

  7. Slide 7: FY2016 second quarter highlights

    FY2016 second quarter highlights*  Organic growth in all businesses  Systems and Service North America revenues up 9% (ex. FX), orders up 7% (ex. FX)  Record China volumes in Power Solutions  Continued y-o-y profitability improvements  Segment margins up 160 bps  Adjusted earnings per share up

  8. Slide 8: FY16 Q2 earnings from continuing operations

    FY16 Q2 earnings from continuing operations* NET REVENUES DILUTED EPS -2% $9.2 B $9.0 B Level $0.86 excluding FX $0.73 +18% +3% excluding FX, FY16 Q2 FY15 Q2 adjusted for JCH** FY16 Q2 FY15 Q2 and Interiors JV SEGMENT INCOME $833 M +19% Segment margin $698 M +160 bps +22% excluding FX FY16 Q2 FY15 Q

  9. Slide 9: Johnson Controls/Tyco Merger: Executing Against Our Day 1 Plan

    Johnson Controls/Tyco Merger* Executing Against Our Day 1 Plan April 4, 2016 October 1, 2016 Tyco S-4 initial filing JCI/Tyco Day 1 with SEC legal merger March April May June July August September October November S-4 Amendments July/August 2016 October 2016 JCI and Tyco Shareholder BOD meeting to v

  10. Slide 10: Adient Separation on Track

    Adient Separation on Track* April 2016 July 1, 2016 October 31, 2016 Adient Form 10 Adient’s Operational Day 1 Adient’s Legal Day 1 filing with SEC as an independent company March April May June July August September October November Form 10 Amendments  Executive Officers in place; Board of Directo

  11. Slide 11: Building Efficiency: Improved profitability and organic growth

    Building Efficiency* Improved profitability and organic growth NET REVENUES  Third party revenues $3.2 B • Systems and Service NA +8% (+9% ex. FX) $2.4 B +33% • Asia down 1% ex. JCH (+3% ex. FX and JCH) • Weakness in Europe and Latin America +34% excluding FX  Orders secured +5% ex. FX and JCH  S

  12. Slide 12: Power Solutions: Higher volumes and record China shipments

    Power Solutions Higher volumes and record China shipments NET REVENUES  Higher volumes in Asia and the Americas, $1.6 B $1.6 B partially offset by lower European volumes  Global shipments of AGM for start-stop +18% Level  Growth in OE (+3%) and aftermarket (+3%) +5% shipments excluding FX and lea

  13. Slide 13: Automotive Experience: Strong global volumes and record profitability

    Automotive Experience* Strong global volumes and record profitability NET REVENUES  FY16 Q2 industry light vehicle production $5.2 B • North America +5% $4.3 B -18% • Europe +3% • China +4% -16% excluding FX  China sales (mostly non-consolidated) +51%,(+9% excluding Interiors JV and FX) +2% exclud

  14. Slide 14: Second Quarter FY2016 Financial Highlights (continuing operations)

    Second Quarter 2015 Second Quarter FY2016 Financial Highlights (continuing operations) Financial Highlights (continuing operations) % 1 2 2016 2015 (in millions) 2016 2015 Change (reported) (reported) Sales $9,031 $9,198 -2% $9,031 $9,198 Gross profit 1,729 1,573 +10% 1,729 1,573 % of sales 19.1% 17

  15. Slide 15: Second Quarter FY2016 Financial Highlights (continuing operations)

    Second Quarter 2015 Second 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 $833 $698 $702 $680 Restructuring and impairment costs - - 229 - F

  16. Slide 16: Balance Sheet and Cash Flow

    Second Quarter 2015 Financial Balance Sheet Highlights and Cash (continuing Flow operations)  Strong balance sheet  Net debt to capitalization of 40.0% at 3/31/16 vs prior year of 41.2% and 39.1% at 12/31/15  Net debt of $6.7B at both 3/31/16 and 12/31/15  Capex of $0.3B in the quarter; in line

  17. Slide 17: FY16 Guidance

    Second Quarter 2015 FY16 Guidance Financial Highlights (continuing operations) FY16 Guidance* Q3 FY16 $1.01 - $1.04 Diluted EPS +11% - +14% Prior FY16 Full Year NEW FY16 Full FY16 Guidance* Guidance Year Guidance $3.70 - $3.90 $3.85 - $4.00 Diluted EPS +8% - +14% +13% - +17% *Excludes transaction /

  18. Slide 18: Appendix

    + so eT Appendix = Sa Johnson Wi | Controls

  19. Slide 19: Q2 Non-Recurring Items (Continuing Operations)

    Second Quarter 2015 Financial Q2 Non-Recurring HighlightsItems (continuing (Continuing operations) Operations) In millions, except EPS impact numbers Pre-tax Tax NCI After-tax 2016 Income (Expense) (Expense) Benefit (Expense) Benefit Income (Expense) EPS Impact Transaction, Integration & Separation

  20. Slide 20: 2016 Q2 Restructuring and Impairment Costs

    Second Quarter 2015 Financial 2016 Q2 Restructuring Highlights (continuing and Impairment operations) Costs In millions Corporate $ 2 Automotive Experience 160 Building Efficiency 38 Severance and Other Costs 200 Asset Impairment (Non-Cash) 29 Total Pre-Tax Restructuring Costs $ 229 Restructuring an

  21. Slide 21: johnsoncontrols.com/investors

    johnsoncontrols.com/investors @JCI_IR

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