16 slides from Johnson Controls International's earnings presentation, Oct 27, 2009
Slide 1: Quarterly update FY 2009 fourth quarter
Quarterly update FY 2009 fourth quarter October 27, 2009 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: 2009 fourth quarter
2009 fourth quarter Government stimulus continuing to support automotive production globally Signs of growth in emerging markets Battery stocking patterns by aftermarket customers returning to normal Interest in energy efficiency and sustainability continuing to grow U.S. stimulus (AARA) funding flo
Slide 4: Q4 highlights
2009 Q4 highlights Strong Building Efficiency orders for Solutions offerings Building Efficiency bidding on 3,300 ARRA-funded (stimulus) projects worth $2.7 billion; meaningful to revenue in late 2010 Awarded $299.5 million Federal grant for building domestic lithium-ion manufacturing capacity Large
Slide 5: Fourth quarter sales and income summary
2009 fourth quarter Sales: $7.9 billion vs. $9.3 billion in 2008 Segment income: $514 million* Automotive Experience: profitable in all geographic regions Power Solutions: record quarterly results Net income: $339 million* $0.52 per diluted share vs. $0.73 in Q4 2008 5 Second sequential quarterly im
Slide 6: Automotive Experience
2009 fourth quarter Automotive Experience 2009 2008 Net sales $3.5B $4.1B -14% Sales down 12% adjusted for currency North America down 11% Europe: down 18% (down 12% excluding currency) China sales (unconsolidated): up 62% Segment income $77M $147M -48% Lower volume Benefits of cost reduction initia
Slide 7: Building Efficiency
2009 fourth quarter Building Efficiency 2009 2008 Net sales $3.3B $3.9B -16% Adjusted for currency, sales down 13% Lower revenues across all segments and geographies NA Systems down 8%, Services down 15% Europe down 15% (ex. currency) ROW down 17% (ex. currency) Segment income $138M $316M -56% $105
Slide 8: Power Solutions
2009 fourth quarter Power Solutions 2009 2008 Net sales $1.1B $1.3B -17% Excluding lead and currency, sales stable Unit volumes up 1% Aftermarket unit volume up 5% OE unit volume down 25% in Americas; down 15% in Europe Segment income $194M $142M +37% Operational improvements Improved product mix Ne
Slide 9: Fourth quarter 2009 Financial highlights
Fourth quarter 2009 Financial highlights (in millions) 2009 (reported) 2009* (excluding items) 2008 (excl. restructuring) %change Sales $7,867 $7,867 $9,307 - 15% Gross profit % of sales 1,143 14.5% 1,248 15.9% 1,424 15.3% - 12% SG&A expenses 761 761 850 - 10% Equity income 27 27 31 - 13% Segment in
Slide 10: Fourth quarter 2009 Financial highlights (EPS)
Fourth quarter 2009 Financial highlights (in millions, except earnings per share) 2009 (reported) 2009* (excluding items) 2008 (excl. restructuring) Segment income $409 $514 $605 Financing charges - net (183) (72) (54) Income before taxes/minority interests 226 442 551 Income tax provision / (benefi
Slide 11: Early exchange of convertible debt
Q4 2009 Early exchange of convertible debt Initial offering: Issued $852.5M of securities on March 16, 2009 $402.5M of convertible bonds; $450M of mandatory convertible equity units Exchange offer on Aug 20, 2009, to enable holders of both securities to exchange securities for common stock and cash
Slide 12: Balance sheet
2009 fourth quarter Balance sheet Strong liquidity position Revolver expires in December 2011 Liquidity cushion in excess of $2.5 billion Minimal debt maturities next year; $1 billion in FY2011 Cash flow positive $404 million from operations and investing Dividends paid since 1887 Strong Q4 working
Slide 13: 2010 outlook
2010 outlook 2010 guidance 9% increase in sales, to approx. $31 billion Encouraged by recent trends in Automotive Experience and Power Solutions Significant increase in earnings ($1.35 - 1.45) Lower net financing charges Effective tax rate of approximately 20% $800 million free cash flow (cash from
Slide 14: 2010 Outlook
2010 Outlook Markets are beginning to stabilize Increasing benefits from cost improvement intiatives Our strategies and offerings will take advantage of the global growth megatrends Energy efficiency Sustainability Emerging markets We have the financial strength to accelerate our investments in grow
Slide 15: Appendix
Appendix sotnson Controls
Slide 16: Tax rate change
2009 fourth quarter Tax rate change 16 Q4 tax expense ($442m @ 22.7%) $100 Tax benefit on debt conversion ($111m @ 36.5%) (41) Tax benefit on warranty charge ($105m @22.7%) (24) Adjustment to Q1-Q3 effective tax rate (22.7% vs. 27%) 2 Non-recurring tax benefit (114) Q4 tax benefit reported ($77) 200