Johnson Controls International Plc · NYSE:JCI
Johnson Controls International — Tyco International — Q4 2014 Earnings Presentation
27 slides from Johnson Controls International's earnings presentation, Nov 13, 2014
Slide 1: Fourth Quarter Review
Fourth Quarter Review 13 / November / 2014
Slide 2: Forward-Looking Statements / Safe Harbor
Forward-Looking Statements / Safe Harbor This presentation contains a number of forward-looking statements. In many cases forward-looking statements are identified by words, and variations of words, such as "anticipate", "estimate", "believe", “commit”, "continue", "could", "intend", "may", "plan",
Slide 3: Significant Progress On Three Areas Of Strategic Focus
Significant Progress On Three Areas Of Strategic Focus Organic revenue* growth • Growth accelerated to 3% from 1% last year M&A • Focus on portfolio management led to strategic acquisitions and divestitures in-line with business strategy Continuous improvement • Gross savings in excess of $150 milli
Slide 4: Full Year 2014 Results – Financial Overview
Full Year 2014 Results – Financial Overview (EPS amounts are fully diluted and attributable to Tyco common shareholders) ($ in millions, except per-share amounts) FY14 FY13 Change Revenue $10,340 $10,073 3% Segment Operating Income before special items * $1,435 $1,308 10% Segment Operating Margin be
Slide 5: Fiscal 2014 Highlights
Fiscal 2014 Highlights Revenue of $10.3 billion with organic revenue* growth of 3% • Products +6%, Installation +2% and Service +1% Segment operating margin before special items* improved 90 basis points, year over year • Margin expansion across all three segments Earnings per share before special i
Slide 6: Q4 2014 Results – Financial Overview
Q4 2014 Results – Financial Overview (EPS amounts are fully diluted and attributable to Tyco common shareholders) ($ in millions, except per-share amounts) Q4FY14 Q4FY13 Change Revenue $2,704 $2,610 4% Segment Operating Income before special items* $383 $365 5% Segment Operating Margin before specia
Slide 7: Fourth Quarter Highlights
Fourth Quarter Highlights Revenue of $2.7 billion increases 4% year over year • Organic revenue* growth of 3% - Products +8%, Installation +6% and Service (2%) • Acquisition growth of 1% was partially offset by the impact of divestitures Before special items, segment operating income* was $383 milli
Slide 8: Fourth Quarter Highlights Continued
Fourth Quarter Highlights Continued Orders growth of 5% year over year, excluding impact of foreign currency • Products +11%, Installation +8% and Service flat Backlog of $4.9 billion increased 4% year over year and, due to normal seasonality, declined 1% on a quarter sequential basis, excluding imp
Slide 9: Fourth Quarter – NA Installation & Services
Fourth Quarter – NA Installation & Services ($ in millions) Organic revenue* up 2% year Q4FY14 Q4FY13 Change over year Revenue $1,012 $996 2% • Installation grew 6% • Service declined 2% Operating Income* $134 $133 1% Operating Margin* 13.2% 13.4% (20bps) Organic revenue growth impacted by re-class
Slide 10: Fourth Quarter – ROW Installation & Services
Fourth Quarter – ROW Installation & Services ($ in millions) Organic revenue* increased 2% Q4FY14 Q4FY13 Change • Installation grew 6% Revenue $1,011 $987 2% • Service declined 2% Operating Income* $118 $110 7% A 2% benefit from acquisitions Operating Margin* 11.7% 11.1% +60bps was offset by the imp
Slide 11: Fourth Quarter – Global Products
Fourth Quarter – Global Products ($ in millions) Q4FY14 Q4FY13 Change Acquisitions contributed one percentage point of growth Revenue $681 $627 9% Operating Income* $131 $122 7% Operating margin* declined Operating Margin* 19.2% 19.5% (30bps) 30 bps year over year • Leverage from increased revenues
Slide 12: Other Items
Other Items Corporate expense before special items* was $63 million in the quarter and $230 million for the year • Outlook: Expect fiscal 2015 Corporate expense to be ~$225 million Tax rate excluding special items was 17.5% for the quarter and 17.2% for the year • Outlook: Expect Q1 and full year ta
Slide 13: Appendix
Appendix
Slide 14: Consolidated Statements of Operations
TYCO INTERNATIONAL LTD. CONSOLIDATED STATEMENTS OF OPERATIONS (in millions, except per share data) (Unaudited) Quarters Ended Twelve Months Ended September 26, September 27, September 26, September 27, 2014 2013 2014 2013 Revenue from product sales $ 1,668 $ 1,536 $ 6,221 $ 5,855 Service revenue 1,0
Slide 15: Results of Segments
TYCO INTERNATIONAL LTD. RESULTS OF SEGMENTS (in millions) (Unaudited) Quarters Ended Twelve Months Ended September 26, September 27, September 26, September 27, 2014 2013 2014 2013 Net Revenue NA Installation & Services $ 1,012 $ 996 $ 3,876 $ 3,891 ROW Installation & Services 1,011 987 3,920 3,843
Slide 16: Consolidated Balance Sheets
TYCO INTERNATIONAL LTD. CONSOLIDATED BALANCE SHEETS (in millions) (Unaudited) September 26, September 27, 2014 2013 Assets Current Assets: Cash and cash equivalents $ 892 $ 563 Accounts receivable, net 1,750 1,704 Inventories 628 645 Prepaid expenses and other current assets 1,153 839 Deferred incom
Slide 17: Consolidated Statements of Cash Flows
TYCO INTERNATIONAL LTD. CONSOLIDATED STATEMENTS OF CASH FLOWS (in millions) (Unaudited) For the Quarters Ended For the Twelve Months Ended September 26, September 27, September 26, September 27, 2014 2013 2014 2013 Cash Flows From Operating Activities: Net (loss) income attributable to Tyco common s
Slide 18: Free Cash Flow Reconciliation
Reconciliation to "Free Cash Flow": Net cash provided by operating activities $ 311 $ 334 $ 831 $ 694 Capital expenditures, net (75) (64) (278) (265) Acquisition of dealer generated customer accounts and bulk account purchases (5) (5) (25) (19) Purchase accounting and holdback liabilities — 5 — (2)
Slide 19: Organic Growth Reconciliation - Revenue
TYCO INTERNATIONAL LTD. ORGANIC GROWTH RECONCILIATION - REVENUE (in millions) (Unaudited) Quarter Ended September 26, 2014 Base Year Adjustments Adjusted Net Revenue for the Fiscal Net Revenue for the Quarter Ended Divestitures / 2013 Base Quarter Ended (1) September 27, 2013 Other Revenue Foreign C
Slide 20: Earnings Per Share Summary
Earnings Per Share Summary (Unaudited) Quarter Ended Year Ended Quarter Ended Year Ended Sept. 26, 2014 Sept. 26, 2014 Sept. 27, 2013 Sept. 27, 2013 Diluted EPS from Continuing Operations Attributable to Tyco Shareholders (GAAP) $ (0.17) $ 1.71 $ 0.29 $ 0.94 expense / (benefit) Restructuring and rep
Slide 21: Reconciliation: Quarter Ended September 26, 2014
Tyco International Ltd. For the Quarter Ended September 26, 2014 (in millions, except per share data) (Unaudited) expense / (benefit) Segments NA ROW Installation Installation Global Segment Corporate Total & Services & Services Products Revenue and Other Revenue Revenue (GAAP) $1,012 $1,011 $681 $2
Slide 22: Reconciliation: Year Ended September 26, 2014
Tyco International Ltd. For the Year Ended September 26, 2014 (in millions, except per share data) (Unaudited) expense / (benefit) Segments NA ROW Installation Installation Global Segment Corporate Total & Services & Services Products Revenue and Other Revenue Revenue (GAAP) $3,876 $3,920 $2,544 $10
Slide 23: Reconciliation: Quarter Ended September 27, 2013
Tyco International Ltd. For the Quarter Ended September 27, 2013 (in millions, except per share data) (Unaudited) expense / (benefit) Segments NA ROW Installation Installation Global Segment Corporate Total & Services & Services Products Revenue and Other Revenue Revenue (GAAP) $996 $987 $627 $2,610
Slide 24: Reconciliation: Year Ended September 27, 2013
Tyco International Ltd. For the Year Ended September 27, 2013 (in millions, except per share data) (Unaudited) expense / (benefit) Segments NA ROW Installation Installation Global Segment Corporate Total & Services & Services Products Revenue and Other Revenue Revenue (GAAP) $3,891 $3,843 $2,339 $10
Slide 25: 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 and segment operating income, in each case “before special items,” are non-GAAP measures and should not be considered replac
Slide 26: Non-GAAP Measures Continued
Non-GAAP Measures Continued The limitation associated with using these cash flow metrics is that they adjust for cash items that are ultimately within management's and the Board of Directors' discretion to direct and therefore may imply that there is less or more cash that is available for the compa
Slide 27: Slide 27