13 slides from Johnson Controls International's earnings presentation, Nov 1, 2006
Slide 1: Quarterly Update FY 2006 Fourth Quarter
Johnson Controls, Inc. ("the Company") has made forward-looking statements in this document pertaining to its financial results for fiscal year 2007 that are based on preliminary data and are subject to risks and uncertainties. All statements other than statements of historical fact are statements t
Slide 2: Agenda
Overview Steve Roell - Vice Chairman and Executive Vice President Q4 Business Results Denise Zutz - Vice President, Strategy, Investor Relations and Communication Financial Review Bruce McDonald - Executive Vice President and Chief Financial Officer Q&A (conclude at 7 p.m. eastern time) Agenda
Slide 3: Record financial performance
Record financial performance Sales up 17% to $32 billion Income from continuing operations up 36% to $1.0 billion, or $5.25 per share Outperformed our markets Increased earnings diversification and globalization A diversified industrial growth company Successful acquisition integration York Internat
Slide 4: Sustained Growth: 2006 highlights
Sustained Growth 7 2006 highlights 17% increase in building efficiency backlog Record year for new facility management awards Industry-first lithium-ion hybrid battery order Major new OE and aftermarket battery customers Automotive interiors backlog trending higher First major seating order with PSA
Slide 5: 2007 Outlook - October 9, 2006
Consolidated net sales EPS from continuing operations 2007 Outlook - October 9, 2006 Approx. $34B (up approx. 6%) Approx. $6.00 (up approx. 14%) EBIT Margin Higher (Building efficiency improvements) Balanced Portfolio Consistent performance Lower risk Earnings visibility Enterprise and global levera
Slide 6: Fourth-Quarter 2006 Overview
Fourth-Quarter 2006 Overview Operating Income Sales Interior Experience 50% Building Efficiency 38% Power Solutions 12% Interior Experience 22% Building Efficiency 50% Power Solutions 28% 11 Record sales and earnings Sales $8.2 billion, up 18% FX impact +2% EPS from continuing operations $1.86, up 2
Slide 7: Fourth-Quarter 2006 Building Efficiency
Fourth-Quarter 2006 Building Efficiency Market environment Global service market stable North America construction Non-residential spending up 8% Residential construction down 15% Construction strong in key emerging markets Commercial chillers Large tonnage: exports strong Small tonnage: good domest
Slide 8: Fourth-Quarter 2006 Power Solutions
Fourth-Quarter 2006 Power Solutions 2006 2005 Sales $981M $863M +14% Overall unit sales up 6% in North America, up 8% in Europe Higher aftermarket shipments Lower OE shipments Higher unit prices due to lead pass-through Op. Inc. $140M $114M +23% Higher volume Improving operational efficiencies Lead
Slide 9: Fourth-Quarter 2006 Interior Experience
Fourth-Quarter 2006 Interior Experience Market environment Industry vehicle production N.A. down 9% Cars up 1% Light truck volumes down 2% to 26% (down 16% overall) Europe flat Japan flat (Nissan down 7%) China up 24% NA Vehicle inventories (at quarter-end) Car: 47 days Light truck: 74 days 2006 200
Slide 10: Fourth-Quarter 2006 Financial Highlights
(in millions) Fourth-Quarter 2006 Financial Highlights Double-digit sales growth from Building Efficiency (+15% pro-forma) and Power Solutions (+14%) partially offset by sharply lower automotive production in NA SG&A increase associated with York; underlying spending flat Strong operating results fr
Slide 11: Fourth-Quarter 2006 Financial Highlights
(in millions, except per share data) Fourth-Quarter 2006 Financial Highlights Net interest expense - Higher cost reflects financing of the York acquisition Equity income - Increased earnings from Interior JV's in NA and China, Power Solutions Income taxes - Current period benefits from a reduction i
Slide 12: 2006 Balance Sheet / Cash Flow Highlights
Debt-to-capitalization declines to 39% at September 30, 2006 Leverage reduced to targeted range $800 million of debt reduction in 2006 Financial strength for investment in growth initiatives Capital spending of $738m Reinvestment ratio of 1.1 to 1 2006 Balance Sheet / Cash Flow Highlights Total Debt
Slide 13: 2007 Quarterly Outlook
2007 Quarterly Outlook Q1: Earnings up excluding non-recurring tax benefit in FY06 ($0.08) Double-digit earnings increase in Building Efficiency; Power Solutions growth Improvement in Interior Experience in Q2 - Q4 as NA automotive production stabilizes and significant launches completed Q2 - Q4: Ea