Johnson Controls International Plc · NYSE:JCI

Johnson Controls International — Tyco International — Q1 FY2010 Earnings Presentation

22 slides from Johnson Controls International's earnings presentation, Jan 28, 2010

  1. Slide 1: First Quarter Review

    First Quarter Review January 28 28, 2010

  2. Slide 2: Forward-Looking Statements / Safe Harbor

    Forward-Looking Statements / Safe Harbor Certain statements in this presentation are ‘‘forward-looking statements’’ within the meaning of the U.S. Private Securities Litigation Reform Act of 1995. All forward-looking statements involve risks and uncertainties. All statements contained herein that ar

  3. Slide 3: Q1 2010 Results – Financial Overview

    Q1 2010 Results – Financial Overview (EPS amounts are attributable to Tyco common shareholders) ($ in millions, except per-share amounts) Q1 FY10 Q1 FY09 % Change Revenue $4 246 $4,246 $4 426 $4,426 (4)% Operating Income before special items* $426 $429 (1)% Operating Margin before special items* 10.

  4. Slide 4: Areas of Operational Focus In 2010

    Areas of Operational Focus In 2010 ƒ Investing for long-term growth – Continue to invest in our businesses – Growth initiatives are both product and service focused ƒ Cost management – Prior restructuring actions expected to result in incremental savings of $175 million in 2010 – Additional restruct

  5. Slide 5: First Quarter – ADT Worldwide

    First Quarter – ADT Worldwide ($ in millions) Q1FY10 Q1FY09 % Change ƒ Organic revenue* decline of 3% in Q1 2010 Revenue $1,835 $1,811 1% – Recurring revenue, which Operating Income* $264 $228 16% comprised more than 55% of total revenue, grew 5% Operating Margin* 14.4% 12.6% 180bps – Systems instal

  6. Slide 6: First Quarter - ADT Worldwide Regional Performance

    First Quarter - ADT Worldwide Regional Performance NA – Residential & Small Business NA - Commercial ƒ More than 85% of revenue was ƒ About 40% of revenue was recurringg recurring ƒ Recurring revenue grew 8% ƒ 11% organic revenue* decline ƒ Operating margin* improved more than full percentage point

  7. Slide 7: First Quarter – Flow Control

    First Quarter – Flow Control ($ in millions) Q1FY10 Q1FY09 % Change ƒ Organic revenue* decline of Revenue $923 $959 (4)% 14% iin Q1 2010 – Valves declined 15% Operating Income* $118 $139 (15)% – Water declined 10% Operating Margin* 12.8% 14.5% -170bps – Thermal declined 14% ƒ Benefits of cost contai

  8. Slide 8: First Quarter – Fire Protection Services

    First Quarter – Fire Protection Services ($ in millions) Q1FY10 Q1FY09 % Change ƒ Organic revenue* decline of 6% Revenue $833 $839 (1)% in Q1 2010 – Service revenue, which was Operating Income* $64 $56 14% ~50% of total revenue, declined 2% organically Operating Margin* 7.7% 6.7% 100bps – Systems in

  9. Slide 9: First Quarter – Safety Products

    First Quarter – Safety Products ($ in millions) Q1FY10 Q1FY09 % Change ƒ Organic revenue* decline of Revenue $358 $401 (11)% 14% iin Q1 2010 – Fire Suppression declined Operating Income* $53 $81 (35)% 22% – Electronic Security declined Operating Margin* 14.8% 20.2% - 540bps 10% – Life Safety grew 4%

  10. Slide 10: First Quarter – Electrical & Metal Products

    First Quarter – Electrical & Metal Products ($ in millions) Q1FY10 Q1FY09 % Change ƒ Organic revenue* decline of Revenue $297 $416 (29)% 30% iin Q1 2010 ƒ Significantly lower average Operating Income* $23 $29 (21)% selling prices for steel and copper products Operating Margin* 7.7% 7.0% 70 bps ƒ Red

  11. Slide 11: Other Items

    Other Items ƒ Free Cash Flow* – $79M in Q1 FY10 including $50M of payments primarily for restructuring compared to $215M outflow in prior year, which included $25M of payments primarily for restructuring ƒ Corporate expense was $98M, which included $2M of special items – Outlook: expect $110M of exp

  12. Slide 12: Appendix

    Appendix

  13. Slide 13: Non-GAAP Measures

    Non-GAAP Measures “Organic revenue,” “free cash flow (outflow)” (FCF), “income from continuing operations before special items”, “earnings per share (EPS) from continuing operations before special items”, “operating income before special items” and “operating margin before special items” are non-GAA

  14. Slide 14: Non-GAAP Measures Continued

    Non-GAAP Measures Continued The limitation associated with using FCF is that it adjusts 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 company's programs than th

  15. Slide 15: Consolidated Statements of Operations

    The Earnings Report - 3arn1ngsT3st TYCO INTERNATIONAL LTD. CONSOLIDATED STATEMENTS OF OPERATIONS (in millions, except per share data) (Unaudited) Quarters Ended Decem ber 25, Decem ber 26, 2009 2008 Net revenue $ 4,246 $ 4,426 Cost of sales 2,681 2,869 Selling, general and administrative expenses 1,

  16. Slide 16: Results of Segments

    The Earnings Report - 3arn1ngsT3st TYCO INTERNATIONAL LTD. RESULTS OF SEGMENTS (in millions) (Unaudited) Quarters Ended December 25, December 26, 2009 2008 NET REVENUE ADT Worldwide $ 1,835 $ 1,811 Flow Control 923 959 Fire Protection Services 833 839 Electrical and Metal Products 297 416 Safety Pro

  17. Slide 17: Consolidated Balance Sheets

    The Earnings Report - 3arn1ngsT3st TYCO INTERNATIONAL LTD. CONSOLIDATED BALANCE SHEETS (in millions) (Unaudited) Decem ber 25, Septem ber 25, 2009 2009 Current Assets: Cash and cash equivalents $ 2,473 $ 2,354 Accounts receivable, net 2,499 2,629 Inventories 1,484 1,443 Other current assets 1,364 1,

  18. Slide 18: Consolidated Statements of Cash Flows

    The Earnings Report - 3arn1ngsT3st TYCO INTERNATIONAL LTD. CONSOLIDATED STATEMENTS OF CASH FLOWS (in millions) (Unaudited) Quarters Ended Decem ber 25, Decem ber 26, 2009 2008 Cash Flow s from Operating Activities: Net income attributable to Tyco common shareholders $ 302 $ 277 Noncontrolling intere

  19. Slide 19: Organic Revenue Reconciliation

    The Earnings Report - 3arn1ngsT3st TYCO INTERNATIONAL LTD. ORGANIC REVENUE RECONCILIATION (in millions) (Unaudited) Quarter Ended Decem ber 25, 2009 Net Revenue for the Acquisition / Quarter Ended Net Revenue Foreign Currency (Divestiture) Organic Revenue Decem ber 26, 2008 ADT Worldw ide $ 1,835 1.

  20. Slide 20: Earnings Per Share Summary

    The Earnings Report - 3arn1ngsT3st Tyco International Ltd. Earnings Per Share Summary (Unaudited) Quarter Ended Quarter Ended Dec. 25, 2009 Dec. 26, 2008 Diluted EPS from Continuing Operations Attributable to Tyco Shareholders (GAAP) $0.63 $0.57 Restructuring, net 0.02 - Restructuring charges in cos

  21. Slide 21: Quarter Ended December 25, 2009 Reconciliation

    The Earnings Report - 3arn1ngsT3st Tyco International Ltd. For the Quarter Ended December 25, 2009 (in millions, except per share data) (Unaudited) ADT Flow Fire Protection Electrical & Safety Corporate Worldwide Control Services Metal Products Products and Other Revenue Revenue (GAAP) $1,835 $923 $

  22. Slide 22: Quarter Ended December 26, 2008 Reconciliation

    The Earnings Report - 3arn1ngsT3st Tyco International Ltd. For the Quarter Ended December 26, 2008 (in millions, except per share data) (Unaudited) ADT Flow Fire Protection Electrical & Safety Corporate Worldwide Control Services Metal Products Products and Other Revenue Previously Reported Revenue

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