Johnson Controls International plc · NYSE:JCI
Johnson Controls International — Q2 2015 Earnings Presentation
15 slides from Johnson Controls International's earnings presentation, Apr 23, 2015
Slide 1: Quarterly update FY 2015 second quarter
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Slide 2: Agenda
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 Stief, Executive Vice President and Chief Financial Of
Slide 3: 2015 Second Quarter (continuing operations)
2015 Second Quarter (continuing operations)* Net revenues: $9.2 billion, down 3% vs. $9.5 billion in Q2 2014 - Excluding currency, up 4% Segment income: $698 million, up 18% vs. $593 million in Q2 2014 Improved profitability : Segment income margin increase of 130 basis points Total** diluted
Slide 4: Improving Macroeconomic Environment
2015 second quarter Improving Macroeconomic Environment Increased orders in U.S. and Asia commercial HVAC markets – Double digit improvements in North America government and education vertical markets Higher global automotive industry production – North America 2% – Europe level – China 6% Hig
Slide 5: 2015 Second Quarter Highlights
2015 Second Quarter Highlights Substantial progress on portfolio initiatives – Definitive agreement to sell GWS for $1.475 billion – Completed $200 million sale of JCI interest in two GWS joint ventures – Signed an agreement formally establishing the previously announced automotive interiors joint
Slide 6: Building Efficiency
2015 Second Quarter Building Efficiency* (GWS reported as a discontinued operation) 2015 2014 Commercial backlog Net sales $2.4B $2.3B +4% and orders (at March 31, 2015) Segment income $173M $127M +36% Backlog $4.6B – level, Segment income margin 7.3% 5.6% +170 bps adjusted for FX Orders up 8%,
Slide 7: Power Solutions
2015 Second Quarter Power Solutions 2015 2014 Net sales $1.6B $1.6B +2% Segment income $264M $234M +13% Segment income margin 16.6% 15.0% +160 bps Excluding foreign exchange, sales up 8% AGM Improved aftermarket and OE volumes globally Americas up 2% Asia up 10% Europe up 21% AGM volumes
Slide 8: Automotive Experience
2015 Second Quarter Automotive Experience* 2015 2014 Fiscal Q2 production Net sales $5.2B $5.6B -7% North America up 2% Segment income $261M $232M +13% Europe level Segment income margin 5.0% 4.1% +90 bps China up 6% Revenue decline due to foreign exchange. Adjusted for currency, revenue inc
Slide 9: Second Quarter 2015 Financial Highlights (continuing operations)
Second Quarter 2015 Financial Highlights (continuing operations) % 1 2015 2014 (in millions) 2015 2014 Change (reported) (reported) Sales $9,198 $9,467 -3% $9,198 $9,467 Gross profit 1,573 1,472 +7% 1,573 1,472 % of sales 17.1% 15.5% 17.1% 15.5% SG&A expenses 957 952 +1% 975 952 Equity income 82 73
Slide 10: Second Quarter 2015 Financial Highlights (continuing operations)
Second Quarter 2015 Financial Highlights (continuing operations) 1 2015 2014 (in millions, except earnings per share) 2015 2014 (reported) (reported) Operating income $698 $593 $680 $593 Financing charges - net 69 56 69 56 Income from continuing ops. before taxes 629 537 611 537 Income tax provision
Slide 11: Financial Guidance
Financial Guidance FY15 currency headwinds substantially offset Updating guidance to reflect by lower commodity prices and Johnson GWS as a discontinued Controls Operating System benefits operation and Euro at $1.05 Johnson Controls Operating System delivering 2015 third quarter measurable cost
Slide 12: GWS Reported as a Discontinued Operation
GWS Reported as a Discontinued Operation* Earnings per share FY 2014 Q1 Q2 Q3 Q4 FY14 Previously Adjusted - Continuing Ops $ 0.66 $ 0.64 $ 0.84 $ 1.04 $ 3.18 GWS - Discontinued Ops (0.03) (0.03) (0.05) (0.07) (0.18) Adjusted - Continuing Ops $ 0.63 $ 0.61 $ 0.79 $ 0.97 $ 3.00 FY15 Revised Guidance A
Slide 13: Appendix
APPENDIX 13 Johnson Controls, Inc. —
Slide 14: Discontinued Ops Reconciliation
Appendix Discontinued Ops Reconciliation* Sales FY14 FY15 Q1 Q2 Q3 Q4 Full Year Q1 Previously Reported Sales - Continuing Ops $ 10,574 $ 10,463 $ 10,812 $ 10,979 $ 42,828 $ 10,666 GWS - Discontinued Ops 1,077 996 979 1,027 4,079 1,042 Adjusted Sales - Continuing Ops $ 9,497 $ 9,467 $ 9,833 $ 9,952 $
Slide 15: Continuing Ops & Discontinued Ops
Appendix Continuing Ops & Discontinued Ops Reconciliation of Transaction / Integration Costs and Non-recurring Items FY14* FY15* Q1 Q2 Q3 Q4 Total* Q1 As Reported - Continuing Ops $ 0.66 $ 0.64 $ 0.35 $ 0.46 $ 2.12 $ 0.76 Adjustments: Pension settlement loss 0.01 0.01 Mark-to-market pension charge 0