Johnson Controls International plc · NYSE:JCI
Johnson Controls International — Q2 2014 Earnings Presentation
14 slides from Johnson Controls International's earnings presentation, Apr 23, 2014
Slide 1: Quarterly update FY 2014 second quarter
Quarterly update FY 2014 second quarter April 23, 2014
Slide 2: Agenda
Agenda Introduction Glen Ponczak, Vice President, Global Investor Relations Overview Alex Molinaroli, Chairman and Chief Executive Officer Business results and financial review Bruce McDonald, Executive Vice President and Chief Financial Officer Q&A FORWARD-LOOKING STATEMENTS Johnson Controls,
Slide 3: Macro environment
2014 second quarter Macro environment Higher global automotive industry production – North America 5% – Europe 5% – China 9% Mixed aftermarket battery demand – Weather-related improvements in North America due to cold January and February temperatures – Europe aftermarket demand trending lower w
Slide 4: 2014 second quarter (continuing operations)
2014 second quarter (continuing operations)* Net revenues: $10.5 billion, up 4% vs. $10.1 billion in Q2 2013 Segment income: $629 million, up 36% vs. $461 million in Q2 2013 EPS: $0.64 per diluted share, up 52% vs. $0.42 in Q2 2013 Q2 results are consistent with high end of earnings guidance *
Slide 5: Taking action to become a leading multi-industry company
Taking action to become a leading multi-industry company Completed HomeLink® sale, remaining Electronics business sale to be completed this fiscal year Signed Memorandum of Understanding for HVAC joint venture with Hitachi Expanded share repurchase authorization to $3.65 billion; completed $1.
Slide 6: Power Solutions
2014 second quarter Power Solutions 2014 2013 Net sales $1.6B $1.6B Level Excluding lead, sales were up 4% Improved aftermarket volumes in North America and Asia along with strong OE sales globally AGM – Americas up 10% – Asia up 7% – Europe down 15% AGM volumes up 24% Micro Hybrid Segment inc
Slide 7: Building Efficiency
2014 second quarter Building Efficiency 2014 2013 Commercial backlog Net sales $3.3B $3.5B - 5% and orders (at March 31, 2014) BE sales down 2% excluding GWS and divestitures Backlog level y/y at $4.8b – Asia up 5% ─ Adjusted for divestitures – North America down 4% and foreign exchange – Middle
Slide 8: Automotive Experience
2014 second quarter Automotive Experience* (Electronics reported as a discontinued operation) 2014 2013 Fiscal Q2 production Net sales $5.6B $5.1B +11% North America up 5% Higher revenue in North America, Europe and Asia Europe up 5% China sales (mostly non-consolidated) up 25% to $1.6B Ch
Slide 9: Financial highlights (continuing operations)
Second quarter 2014 Financial highlights (continuing operations) % 2014 2013 2014 2013 (in millions) (excluding items1) (excluding items2) change (reported) (reported) Sales $10,463 $10,102 4% $10,463 $10,102 Gross profit 1,546 1,440 7% 1,546 1,440 % of sales 14.8% 14.3% 14.8% 14.3% SG&A expenses 99
Slide 10: Financial highlights (continuing operations)
Second quarter 2014 Financial highlights (continuing operations) 2014 2013 2014 2013 (in millions, except earnings per share) (excluding items1) (excluding items 2) (reported) (reported) Segment income $629 $461 $629 $543 Restructuring costs ----- ----- ---- 84 Financing charges - net 56 66 56 66 In
Slide 11: Balance sheet / cash flow
Balance sheet / cash flow Q2 cash provided by operating activities of $730 million vs. $217 million in 2013 – Net debt reduction of $383 million – Net debt to capitalization 34.1% Improved working capital performance – Trade Working Capital 6.9% of sales, 80 bps year-over-year improvement Year
Slide 12: Revised Guidance
Revised Guidance Full-year 2014 guidance provided in December 2013 $3.15 - $3.30 / share inclusive of Electronics Business ─ Electronics $0.10 - $0.12 / share ─ Revised Full-year 2014 (excluding Electronics): $3.05 - $3.18 / share Updated continuing operations guidance Full year $3.10 - $3.15 /
Slide 13: EPS from Continuing Ops Reconciliation
Appendix EPS from Continuing Ops Reconciliation* FY '13 FY '14 EPS Q1 Q2 Q3 Q4 Full Year Q1 Diluted Shares 686.7 689.4 690.1 690.7 689.2 682.2 As Reported $ 0.52 $ 0.24 $ 0.80 $ 0.15 $ 1.71 $ 0.69 Electronics Disc Ops (0.02) (0.02) (0.03) (0.07) (0.15) (0.03) Continuing Ops $ 0.50 $ 0.22 $ 0.77 $ 0.
Slide 14: Discontinued Ops Reconciliation
Appendix Discontinued Ops Reconciliation Sales FY '13 FY '14 Q1 Q2 Q3 Q4 Full Year Q1 JCI Consolidated Sales $ 10,422 $ 10,430 $ 10,831 $ 11,047 $ 42,730 $ 10,908 Exclude: Discontinued Ops 313 328 332 347 1,320 334 Adjusted Sales 10,109 10,102 10,499 10,700 41,410 10,574 SINC* FY '13 FY '14 Q1 Q2 Q3