Johnson Controls International plc · NYSE:JCI
Johnson Controls International — Tyco International — Q2 2012 Earnings Presentation
22 slides from Johnson Controls International's earnings presentation, Apr 26, 2012
Slide 1: Q2 2012 Earnings Call, April 26, 2012
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Slide 2: Forward-Looking Statements / Safe Harbor
Forward-Looking Statements / Safe Harbor This presentation contains a number of forward-looking statements. Words and variations of words such as “outlook”, “expect”, “intend”, “will”, “anticipate”, “believe”, “propose”, “potential”, “continue”, “opportunity”, “estimate”, “project” and similar expre
Slide 3: Other Important Information
Other Important Information In connection with the proposed separation transactions; a definitive proxy statement for the stockholders of Tyco will be filed with the Securities and Exchange Commission (the "SEC"). Tyco will mail the final proxy statement to its stockholders. BEFORE MAKING ANY VOTING
Slide 4: Q2 2012 Results – Financial Overview
Q2 2012 Results – Financial Overview (EPS amounts are attributable to Tyco common shareholders) ($ in millions, except per-share amounts) Q2FY12 Q2FY11 Change Revenue $4,354 $3,992 9% Operating Income before special items* $547 $475 15% Operating Margin before special items* 12.6% 11.9% 70bps Tax Ra
Slide 5: Q2 Highlights
Q2 Highlights Revenue of $4.4 billion with organic revenue* growth of 7% Year over year operating margin* improvement of 70 bps to 12.6% – Increased volume leverage led by Fire and Security product businesses – Continued growth of recurring and service revenue – Continued benefits of cost contai
Slide 6: Order Trends Remained Strong
Order Trends Remained Strong Year-Over-Year Order Growth* 15% 13% 12% 9% 8% 7% 7% 7% 6% 6% 3% 3% 3% 0% -3% -3% -6% -9% -12% -11% **Q4 FY11 Q1 FY10 Q2 FY10 Q3 FY10 Q4 FY10 Q1 FY11 Q2 FY11 Q3 FY11 Q1 FY12 Q2 FY12 * Excludes the impact of foreign currency 6 ** Excludes the impact of an additional week
Slide 7: Second Quarter – Fire and Security
Second Quarter – Fire and Security ($ in millions) Q2FY12 Q2FY11 Change Organic revenue* grew 3.5% Revenue $2,551 $2,420 5% – Service revenue grew Operating Income* $309 $277 12% 3% organically* – Systems Installation Operating Margin* 12.1% 11.4% 70bps revenue declined 1% organically* Backlog i
Slide 8: Second Quarter – ADT North America Residential
Second Quarter – ADT North America Residential ($ in millions) Q2FY12 Q2FY11 Change Organic recurring revenue* Revenue $807 $768 5% grew 5% – Average revenue per user Operating Income* $199 $193 3% increased 3.5% year over year to $37.98 Operating Margin* 24.7% 25.1% (40bps) – Customer account gro
Slide 9: Second Quarter – Flow Control
Second Quarter – Flow Control ($ in millions) Organic revenue* grew 21% Q2FY12 Q2FY11 Change Revenue $996 $804 24% – Valves up 18%* – Water up 21%* Operating Income* $114 $91 25% – Thermal up 32%* Operating Margin* 11.4% 11.3% 10bps Operating margin impacted by estimated $10 million Orders inc
Slide 10: Other Items
Other Items Free cash flow* of $326 million in Q2 included $76 million of cash paid for special items. Adjusted free cash flow* was $402 million – Year to date adjusted free cash flow* of $415 increased 21% year over year Corporate expense before special items was $75 million in the quarter – Ou
Slide 11: Q2 FY '12 Segment Realignment
Q2 FY ‘12 Segment Realignment Prior Current Segment Structure Segment Structure ADT North America NA Residential & Small Business Residential Security Solutions NA Commercial Security International Security Operations Security Products Commercial Fire and Fire Protection Security ADT North A
Slide 12: Appendix
Slide 13: Consolidated Statements of Operations
TYCO INTERNATIONAL LTD. CONSOLIDATED STATEMENTS OF OPERATIONS (in millions, except per share data) (UNAUDITED) For the For the Quarters Ended Six Months Ended March 30, March 25, March 30, March 25, 2012 2011 2012 2011 Revenue from product sales $2,406 $2,118 $4,700 $4,625 Service revenue 1,948 1,87
Slide 14: Segment Net Revenue and Operating Income
(in millions) (Unaudited) Quarters Ended Six Months Ended March 30, March 25, March 30, March 25, 2012 2011 2012 2011 NET REVENUE Commercial Fire and Security $ 2,551 $ 2,420 $ 5,042 $ 4,861 ADT North American Residential 807 768 1,600 1,532 Flow Control 996 804 1,919 1,630 Corporate and Other - - -
Slide 15: Consolidated Balance Sheets
TYCO INTERNATIONAL LTD. CONSOLIDATED BALANCE SHEETS (in millions) (Unaudited) March 30, September 30, 2012 2011 Assets Cash and cash equivalents $1,086 $1,390 Accounts receivable, net 2,441 2,400 Inventories 1,543 1,343 Prepaid expenses and other current assets 992 896 Deferred income taxes 401 402
Slide 16: Consolidated Statements of Cash Flows
TYCO INTERNATIONAL LTD. CONSOLIDATED STATEMENTS OF CASH FLOWS (in millions) (Unaudited) For the Quarters Ended For the Six Months Ended March 30, March 25, March 30, March 25, 2012 2011 2012 2011 Cash Flows From Operating Activities: Net income attributable to Tyco common shareholders $327 $315 $660
Slide 17: Organic Growth Reconciliation - Revenue
Tyco International Ltd. Organic Growth Reconciliation - Revenue (in millions) (Unaudited) Quarter Ended March 30, 2012 Base Year Adjustments Adjusted Net Revenue for the Quarter Net Revenue for the Quarter 2012 Base Ended Ended March 25, 2011 (Divestitures) Revenue Foreign Currency Acquisitions Orga
Slide 18: Earnings Per Share Summary
Earnings Per Share Summary (Unaudited) Quarter Ended Quarter Ended March 30, 2012 March 25, 2011 Diluted EPS from Continuing Operations Attributable to Tyco Shareholders (GAAP) $0.71 $0.67 expense / (benefit) Restructuring, net 0.03 0.02 Acquisition / integration costs 0.01 0.01 (Gains) / losses on
Slide 19: Reconciliation for Quarter Ended March 30, 2012
Tyco International Ltd. For the Quarter Ended March 30, 2012 (Unaudited) ADT expense / (benefit) North Commercial American Flow Fire and Corporate Residential Control Security and Other Revenue As Reported Revenue (GAAP) $807 $996 $2,551 - $4,354 Income Diluted from EPS from Operating Income Continu
Slide 20: Reconciliation for Quarter Ended March 25, 2011
Tyco International Ltd. For the Quarter Ended March 25, 2011 (in millions, except per share data) (Unaudited) ADT expense / (benefit) North Commercial American Flow Fire and Corporate Residential Control Security and Other Revenue Previously Reported Revenue (GAAP) $768 $804 $2,420 $0 $3,992 Discont
Slide 21: 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, operating margin and corporate expense, in each case “before special items,” are non-GAAP measures and should not be consid
Slide 22: Non-GAAP Measures Continued
Non-GAAP Measures Continued Capital expenditures and dealer generated and bulk accounts purchased by ADT are subtracted because they represent long-term commitments. Cash paid for purchase accounting and holdback liabilities is subtracted because these cash outflows are not available for general cor