Johnson Controls International plc · NYSE:JCI
Johnson Controls International — Q1 2015 Earnings Presentation
15 slides from Johnson Controls International's earnings presentation, Jan 22, 2015
Slide 1: Quarterly update FY 2015 first quarter
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Slide 2: Agenda and forward-looking statements
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 Stief, Executive Vice President and Chief Financial Of
Slide 3: Record 2015 First Quarter
Record 2015 First Quarter* Net revenues: $10.7 billion, up 1% Improved profitability (up 5%, excluding currency) vs. $10.6 billion in Q1 2014 7.2 percent segment income margin Segment income: $768 million, up 18% 110 basis point increase year-over- year vs. $650 million in Q1 2014 EPS: $0.
Slide 4: 2015 First Quarter Macro Environment
2015 First Quarter Macro Environment Higher global automotive industry production North America +5% Europe –2% (Eastern Europe down / Western Europe up) China +6% Aftermarket battery demand returning to normal Channel inventories stabilized Volumes up 4% in Q1 Strengthening US dollar
Slide 5: 2015 First Quarter Highlights
2015 First Quarter Highlights Substantial progress on portfolio initiatives HVAC Market Leadership Signed definitive agreement with Depth and leadership in all of the Hitachi on January 21, 2015 for HVAC main segments of the global joint venture commercial HVAC market Announced 18% increase in
Slide 6: Joint Venture with Hitachi
Joint Venture with Hitachi Definitive agreement announced Johnson Controls / Hitachi Joint Venture yesterday Expected 2016 revenues approx. $3.0 billion Johnson Controls, with the Hitachi JCI investment approx. $525 million joint venture, becomes the world’s largest commercial air conditioning
Slide 7: Joint Venture with Hitachi Overview
Joint Venture with Hitachi Overview Top 3 global market share for Variable Refrigerant Flow (VRF) products #2 position in fast-growing China market Expanded manufacturing capabilities 24 Hitachi manufacturing plants, including JVs Scroll compressor technology Johnson Controls Building Effi
Slide 8: Market Leadership Complementary Commercial Products
Market Leadership Complementary Commercial Products Hitachi Johnson Controls VRF & PAC* Rooftop Air Handling Building Management • Top 3 market • Top 3 market share • Top 3 market share System share globally in NA globally • Top 2 market share globally • Top efficiency • Full range from light • Full
Slide 9: 2015 First Quarter Automotive Experience
2015 First Quarter Automotive Experience* 2015 2014 Fiscal Q1 production Net sales $5.3B $5.4B -3% North America up 5% Segment income $249M $197M +26% Europe down 2% Segment income margin 4.7% 3.6% +110 bps China up 6% Revenue decline due to foreign exchange. Adjusted for currency, revenue i
Slide 10: 2015 First Quarter Building Efficiency
2015 First Quarter Building Efficiency* 2015 2014 Commercial backlog Net sales $3.5B $3.4B +5% and orders (at December 31, 2014) Segment income $201M $146M +38% Backlog $4.6B, down 4% Segment income margin 5.7% 4.3% +140 bps adjusted for FX Orders level, adjusted BE sales (ex GWS) up 1% adjust
Slide 11: 2015 First Quarter Power Solutions
2015 First Quarter Power Solutions 2015 2014 Net sales $1.8B $1.8B +4% Segment income $318M $307M +4% Segment income margin 17.2% 17.3% -10 bps Excluding lead and foreign exchange, sales up 8% AGM Improved aftermarket and OE volumes globally Americas up 2% Asia up 9% Europe up 7% AGM vol
Slide 12: Update on Portfolio Initiatives
Update on Portfolio Initiatives Automotive Interiors joint venture Regulatory approval received in most major geographies Chinese approvals expected in March with formal joint venture signing expected in April On track for July 1, 2015 closing Global Workplace Solutions divestiture Dives
Slide 13: First Quarter 2015 Financial Highlights (continuing operations)
First Quarter 2015 Financial Highlights (continuing operations) % 1 2015 2014 (in millions) 2015 2014 change (reported) (reported) Sales $10,666 $10,574 +1% $10,666 $10,574 Gross profit 1,680 1,576 +7% 1,680 1,576 % of sales 15.8% 14.9% 15.8% 14.9% SG&A expenses 1,014 1,038 -2% 1,034 1,038 Equity in
Slide 14: First Quarter 2015 Financial Highlights (continuing operations)
First Quarter 2015 Financial Highlights (continuing operations) 1 2015 2014 (in millions, except earnings per share) 2015 2014 (reported) (reported) Operating income $768 $650 $748 $650 Financing charges - net 71 55 71 55 Income from continuing ops. before taxes 697 595 677 595 Income tax provision
Slide 15: Balance Sheet / Cash Flow / Financial Guidance
Balance Sheet / Cash Flow / Financial Guidance Q1 free cash flow improved $0.2 billion from Q1 FY14 Year-over-year improvement in trade working capital as a percentage of sales, adjusted for businesses held for sale Capital spending in line with company expectations Share repurchases of $0.6