Johnson Controls International Plc · NYSE:JCI
Johnson Controls International — Q3 FY2010 Earnings Presentation
13 slides from Johnson Controls International's earnings presentation, Jul 23, 2010
Slide 1: Quarterly update FY 2010 third quarter
Quarterly update FY 2010 third quarter July 23, 2010 Exhibit 99.2
Slide 2: Agenda and forward-looking statement
Agenda Introduction Glen Ponczak, Vice President, Investor Relations Overview Steve Roell, Chairman and Chief Executive Officer Business results and financial review Bruce McDonald, Executive Vice President and Chief Financial Officer Q&A (conclude at noon Eastern time) FORWARD-LOOKING STATEMENT Joh
Slide 3: 2010 third quarter
2010 third quarter Johnson Controls Capitalized on automotive production recovery in North America and Europe Top line growth for Building Efficiency; first positive revenue comparison since Q2 2009 Q3 2010 orders up 9% vs. 5% in Q2 2010, exceeded expectations Backlog of $4.4 billion, up 1% Emerging
Slide 4: Third quarter consolidated results
2010 third quarter Sales: $8.5 billion vs. $7.0 billion in 2009 (+22%) Segment income: $496 million vs. $282 million in Q3 2009 Net income*: $367 million vs. $154 million EPS*: $0.54 per diluted share vs. $0.25 in Q3 2009 vs. $0.25 in Q3 2009 vs. $0.25 in Q3 2009 vs. $0.25 in Q3 2009 vs. $0.25 in Q3
Slide 5: Investing in profitable growth: Power Solutions
2010 third quarter Investing in profitable growth Power Solutions Vertical integration (lead recycling) Mexico facility nearing completion; production starts in Q1 2011 U.S. facility plans progressing as expected; targeted completion in mid-2012 AGM batteries for Start/Stop vehicles Nearly 70% capac
Slide 6: Investing in profitable growth: Automotive Experience and Building Efficiency
2010 third quarter Investing in profitable growth Automotive Experience China expansion Expect to expand footprint by 10 manufacturing plants in next 12 months Collaboration and customer diversification Equity investment in Tachi-S Building Efficiency Technical services - delivery efficiency and pro
Slide 7: Outlook
2010 Outlook Guidance at high end of range Expect continued strength in Q4 automotive production Proven ability to execute well on the higher volumes Building Efficiency markets slowly improving Improving backlog, higher orders Strong demand for energy efficiency solutions Continued double-digit gro
Slide 8: Automotive Experience
2010 third quarter Automotive Experience 2010 2009 Net sales $4.2B $3.0B 43% North America up 76% Europe up 19% (25% ex-fx) Asia up 68% (61% ex-fx) China sales (including unconsolidated) up 40% to $774 million Segment income $171M ($14M) Higher volumes Benefits from restructuring initiatives Signifi
Slide 9: Building Efficiency
2010 third quarter Building Efficiency 2010 2009 Net sales $3.2B $3.2B 2% Global Workplace Solutions up 11%, ROW up 8%, North America residential HVAC up 7% Strong demand for energy efficiency solutions North America systems and services down low-single digits Late start to summer cooling season Eur
Slide 10: Power Solutions
2010 third quarter Power Solutions 2010 2009 Net sales $1.1B $0.9B 30% (Excluding lead, up 16%) Unit volumes up 15% Improving markets, share gains Aftermarket unit volume up 9% Includes June launch of incremental Wal-Mart volume OE unit volume up 36% Asia (primarily China) unit volume up 20% Segment
Slide 11: Third quarter 2010 Financial highlights
Third quarter 2010 Financial highlights Financial highlights Financial highlights 11 FX - Euro to U.S. dollar average exchange rate at $1.27 in Q3 2010 vs. $1.36 in Q3 2009 Sales - Excluding FX, sales up 23% Gross Profit - Higher volumes and benefits from restructuring initiatives SG&A - 80 bps impr
Slide 12: Third quarter 2010 Financial highlights
Third quarter 2010 Financial highlights Financial highlights Financial highlights 12 Net financing charges - Impact of debt to equity conversion and lower short-term rates Income tax provisions - Underlying 2010 tax rate of 18% *Excludes non-recurring tax benefits of $51 million and $9 million in 20
Slide 13: Fiscal 2010 outlook
Fiscal 2010 outlook Fiscal 2010 outlook 13 *Free cash flow is defined as cash provided by operating activities less capital expenditures