17 slides from Johnson Controls International's earnings presentation, Jan 22, 2010
Slide 1: Quarterly update FY 2010 first quarter
Quarterly update FY 2010 first quarter January 22, 2010 Exhibit 99.2
Slide 2: Agenda and forward-looking statement
Agenda Introduction Glen Ponczak, Executive Director, 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 FORWARD-LOOKING STATEMENT Johnson Controls, Inc. ("the Co
Slide 3: Diversified business portfolio a key contributor to record earnings
First quarter 2010 Diversified business portfolio a key contributor to record earnings Record Q1 segment income and net income driven by double-digit revenue growth Market improvements Share gains Converting well on the higher automotive volumes Benefitting from cost reduction initiatives taken over
Slide 4: 2010 first quarter: record first quarter earnings
2010 first quarter Record first quarter earnings Sales: $8.4 billion vs. $7.3 billion in 2009 (+15%) Segment income: $406 million vs. loss of $48 million* in Q1 2009 Net income*: $288 million vs. loss of $79 million in Q1 2009 $0.43* per diluted share vs. loss of $0.13* in Q1 2009 $631 million free
Slide 5: Our markets: Automotive Experience
First quarter 2010 Our markets Automotive Experience Auto production in both North America and Europe stronger than earlier expectations North America production benefitted from dealer inventory replenishment 53 days on hand at 12/31/09 vs. 93 days a year ago Stable European production Decline expec
Slide 6: Our markets: Power Solutions
First quarter 2010 Our markets Power Solutions Higher overall demand for automotive batteries Aftermarket stocking returning to traditional levels Stronger global OE demand Continuing market share shifts 6 6
Slide 7: Our markets: Building Efficiency
First quarter 2010 Our markets Building Efficiency Continued challenges in late-cycle non-residential buildings market Education buildings market demand strong despite slow ARRA (stimulus) funding Strong government buildings market demand Healthcare market demand lower than expected Mixed internatio
Slide 8: 2010 Outlook
2010 Outlook Cautiously optimistic regarding auto production in 2H 2010 Uncertainties around consumer demand Strong growth in China expected to continue Improved profitability in Power Solutions due to increased volume Building Efficiency performance in line with previous expectations Y/Y sales grow
Slide 9: Business segment results
Business segment results sotnson Controls
Slide 10: 2010 first quarter Automotive Experience
2010 first quarter Automotive Experience 2010 2009 Net sales $4.1B $3.1B 31% Sales up 24% adjusted for currency North America: up 14% Europe: up 47% (35% excluding currency) China sales (including unconsolidated): $745M, up 112% Segment income $121M ($219M) Excellent conversion on the higher volume
Slide 11: 2010 first quarter Building Efficiency
2010 first quarter Building Efficiency 2010 2009 Net sales $3.0B $3.1B -2% Sales down 8% adjusted for currency Some segments starting to improve Global Workplace Solutions, performance contracting, North America residential HVAC up double-digits Revenue declines concentrated in Latin America and Eur
Slide 12: 2010 first quarter Power Solutions
2010 first quarter Power Solutions 2010 2009 Net sales $1.3B $1.1B 15% Unit volumes up 12% Lead impact on sales not significant Aftermarket unit volume up 9% OE unit volume up 19% Segment income $181M $40M Higher volumes Operational improvements $50 million non-recurring lead inventory charge in 200
Slide 13: Financial review
Financial review sotnson Controls
Slide 14: Financial highlights (in millions)
First quarter 2010 Financial highlights (in millions) 2010 (reported) 2009* (excluding items) 2009 (reported) %change Sales $8,408 $7,336 $7,336 15% Gross profit % of sales 1,236 14.7% 795 10.8% 685 9.3% 55% SG&A expenses 883 859 859 3% Equity income 53 16 (136) N/M Segment income $ $406 ($48) ($310
Slide 15: Financial highlights (in millions, except earnings per share)
First quarter 2010 Financial highlights (in millions, except earnings per share) 2010* (excluding items) 2009* (excluding items) 2010 (reported) 2009 (reported) Segment income $406 ($48) $406 ($310) Financing charges - net (35) (56) (35) (56) Income before taxes 371 (104) 371 (366) Income tax provis
Slide 16: Balance sheet
Balance sheet Strong liquidity position Net borrowings $2.7 billion, $552M debt reduction in the quarter Liquidity cushion in excess of $3.2B Cash flow positive Q1 net cash flow - operating and investing activities--$623 million vs. ($674 million) in 2009 Strong Q1 working capital performance ($307
Slide 17: Revised fiscal 2010 outlook
Revised fiscal 2010 outlook October guidance January revisions Consolidated net sales $31 B (up 9%) $33B (up 16%) Higher NA vehicle production Increased PS aftermarket volume and impact of higher lead BE sales increased to +5% EPS $1.35 - $1.48 $1.70 - $1.75 Profitable conversion of incremental reve