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
Johnson Controls, Inc. — 2 1/6 2/6 4/6 5/6 1/4 3/4 1/2 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
Slide 3: Record 2015 First Quarter
Johnson Controls, Inc. — 3 1/6 2/6 4/6 5/6 1/4 3/4 1/2 Record 2015 First Quarter* Net revenues: $10.7 billion, up 1% (up 5%, excluding currency) vs. $10.6 billion in Q1 2014 Segment income: $768 million, up 18% vs. $650 million in Q1 2014 EPS: $0.79 per diluted share, up 20% vs. $0.66 in Q1 20
Slide 4: 2015 First Quarter Macro Environment
Johnson Controls, Inc. — 4 1/6 2/6 4/6 5/6 1/4 3/4 1/2 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 sta
Slide 5: 2015 First Quarter Highlights: HVAC Market Leadership
Johnson Controls, Inc. — 5 1/6 2/6 4/6 5/6 1/4 3/4 1/2 HVAC Market Leadership Substantial progress on portfolio initiatives Signed definitive agreement with Hitachi on January 21, 2015 for HVAC joint venture Announced 18% increase in quarterly dividend Completed $600 million in share repurch
Slide 6: Joint Venture with Hitachi
Johnson Controls, Inc. — 6 1/6 2/6 4/6 5/6 1/4 3/4 1/2 Definitive agreement announced yesterday Johnson Controls, with the Hitachi joint venture, becomes the world’s largest commercial air conditioning company Strategic partnership with technology leader Complementary technologies and products
Slide 7: Joint Venture with Hitachi Overview
Johnson Controls, Inc. — 7 1/6 2/6 4/6 5/6 1/4 3/4 1/2 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 Scro
Slide 8: The broadest range of products in the industry
Johnson Controls, Inc. — 8 1/6 2/6 4/6 5/6 1/4 3/4 1/2 VRF & PAC* Rooftop Air Handling Building Management System Air Cooled Chiller Water Cooled Chiller Centrifugal Chiller Absorption Chiller • Top 3 market share globally • Top efficiency rating in Japan • Top 3 market share in NA • Full range from
Slide 9: 2015 First Quarter Automotive Experience
Johnson Controls, Inc. — 9 1/6 2/6 4/6 5/6 1/4 3/4 1/2 2015 First Quarter Automotive Experience* Fiscal Q1 production North America up 5% Europe down 2% China up 6% 2015 2014 Net sales $5.3B $5.4B -3% Segment income $249M $197M +26% Segment income margin 4.7% 3.6% +110 bps Revenue decline du
Slide 10: 2015 First Quarter Building Efficiency
Johnson Controls, Inc. — 10 1/6 2/6 4/6 5/6 1/4 3/4 1/2 2015 First Quarter Building Efficiency* Commercial backlog and orders (at December 31, 2014) Backlog $4.6B, down 4% adjusted for FX Orders level, adjusted for FX ─ Hawaii DOT order in prior year of $150M 2015 2014 Net sales $3.5B $3.4B +5%
Slide 11: 2015 First Quarter Power Solutions
Johnson Controls, Inc. — 11 1/6 2/6 4/6 5/6 1/4 3/4 1/2 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% Improved aftermarket and OE volumes globally Americas up 2% Asia up 9% Europ
Slide 12: Update on Portfolio Initiatives
Johnson Controls, Inc. — 12 1/6 2/6 4/6 5/6 1/4 3/4 1/2 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 Solut
Slide 13: First Quarter 2015 Financial Highlights
Johnson Controls, Inc. — 13 1/6 2/6 4/6 5/6 1/4 3/4 1/2 First Quarter 2015 Financial Highlights (continuing operations) (in millions) 2015 1 2014 % change 2015 (reported) 2014 (reported) Sales $10,666 $10,574 +1% $10,666 $10,574 Gross profit % of sales 1,680 15.8% 1,576 14.9% +7% 1,680 15.8% 1,576 1
Slide 14: First Quarter 2015 Financial Highlights (continuing operations)
Johnson Controls, Inc. — 14 1/6 2/6 4/6 5/6 1/4 3/4 1/2 First Quarter 2015 Financial Highlights (continuing operations) (in millions, except earnings per share) 2015 1 2014 2015 (reported) 2014 (reported) Operating income $768 $650 $748 $650 Financing charges - net 71 55 71 55 Income from continuing
Slide 15: Balance Sheet / Cash Flow / Financial Guidance
Johnson Controls, Inc. — 15 1/6 2/6 4/6 5/6 1/4 3/4 1/2 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 li