Johnson Controls International Plc · NYSE:JCI

Johnson Controls International — Merger or Acquisition (November 2018)

13 slides from Johnson Controls International's merger presentation, Nov 13, 2018

  1. Slide 1: Power Solutions Strategic Review

    Power Solutions If you can read this Click on the icon to choose a If you can read this Click on the icon to choose a Strategic Review picture or Reset the slide. picture or Reset the slide. To Reset: Right click on the slide To Reset: Right click on the slide thumbnail and select ‘reset slide’ or t

  2. Slide 2: Forward Looking/Cautionary Statements & Non-GAAP Financial Information

    Forward Looking/Cautionary Statements & Non-GAAP Financial Information Johnson Controls International plc Cautionary Statement Regarding Forward-Looking Statements Johnson Controls International plc has made statements in this communication that are forward-looking and therefore are subject to risks

  3. Slide 3: Strategic Review Of Power Solutions

    Strategic Review Of Power Solutions  Two leading platforms within the portfolio (Buildings & Power Solutions) - Each business is a leader within its industry - Different strategic and financial profiles as well as changing industry dynamics  Evaluated strategic alternatives for the portfolio - Tho

  4. Slide 4: Agreement To Sell Power Solutions Business

    Agreement To Sell Power Solutions Business  Attractive valuation of $13.2B, net proceeds of $11.4B  Proceeds to execute shareholder-centric capital allocation strategy  ~$3.0 to $3.5B debt pay down; remain investment grade  ~$7.9 to $8.4B available to return to shareholders  Pure-play building

  5. Slide 5: Power Solutions Transaction Details

    Power Solutions Transaction Details Transaction • $13.2B transaction value Terms • 7.9X trailing 12-month EBITDA • FY18 sales ~$8.0B • FY18 EBITDA ~$1.68B Financial • Estimated tax ($1.1B) Impact • Net cash proceeds of $11.4B • Reduce corporate costs ~$50M • Power Solutions will be reported as disco

  6. Slide 6: Illustrative Proforma FY19 EPS As If Transaction Occurred 10/1/18

    Illustrative Proforma FY19 EPS As If Transaction Occurred 10/1/18 FY19 PROFORMA WALK $2.90 to $3.05 $0.75 $2.40 to $2.50 $1.65 to $1.75 ($1.28) $7.9 to $8.4B share repurchase $3.0 to $3.5B debt pay down Reduce corporate costs FY19 POWER SOLUTIONS FY19 USE OF FY19 GUIDANCE DISC OPS CONTINUING OPS PRO

  7. Slide 7: Buildings Overview

    Buildings Overview Business Profile* Sales Segment EBITA $23.4B 13.2% FY18 Sales FY18 Segment EBITA Global North Global North Products America Products America 36% 37% • More focused, streamlined portfolio 37% 41% • Leadership positions in products and channel • Advantaged position in “Connected Bui

  8. Slide 8: Appendix: Supplemental Information

    Appendix: Supplemental Information If you can read this Click If you can read this Click on the icon to choose a on the icon to choose a picture or picture or Reset the slide. Reset the slide. To Reset: Right click on the slide To Reset: Right click on the slide thumbnail and select ‘reset slide’ or

  9. Slide 9: Strong Product Portfolio with Unmatched Direct Sales Footprint

    Strong Product Portfolio with Unmatched Direct Sales Footprint Building Management Systems HVAC Equipment Fire Suppression Controls Security Fire Detection  Chillers – water-cooler, air-  HVAC controls  Intrusion - sensors  Sensors, call-points  Water (sprinklers, valves) cooled, mini-chillers,

  10. Slide 10: Leadership Positions Across Our Businesses

    Leadership Positions Across Our Businesses  Technology leader with global scale in compressor bearing equipment HVAC Equipment  Regional leader in airside equipment  Comprehensive portfolio across complex, mid-market and residential  Leading portfolio across key building domains – controls, secu

  11. Slide 11: Recasted Financial Information

    Recasted Financial Information* Q1FY18 Organic Q2FY18 Organic Q3FY18 Organic Q4FY18 Organic FY18 Organic FY17 BT&S - North America 2,012 3.1% 2,097 0.6% 2,246 4.8% 2,324 7.7% 8,679 4.1% 8,316 BT&S - EMEA/LA 915 4.0% 907 -3.3% 926 0.4% 948 5.7% 3,696 1.8% 3,579 BT&S - APAC 597 2.5% 586 -1.6% 681 4.5%

  12. Slide 12: Non-GAAP Reconciliations

    Non-GAAP Reconciliations Power Solutions 2018 Segment earnings before interest, taxes and amortization (EBITA), as reported $ 1,417 Adjusting items: Transaction costs 8 Restructuring costs and discontinued operations losses in equity income 7 Adjusted segment EBITA $ 1,432 Depreciation 248 Segment e

  13. Slide 13: johnsoncontrols.com/investors @JCI_IR

    johnsoncontrols.com/investors @JCI_IR If you can read this Click If you can read this Click on the icon to choose a on the icon to choose a picture or picture or Reset the slide. Reset the slide. To Reset: Right click on the slide To Reset: Right click on the slide thumbnail and select ‘reset slide’

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