Johnson Controls International plc · NYSE:JCI
Johnson Controls International — Q4 2013 Earnings Presentation
15 slides from Johnson Controls International's earnings presentation, Oct 29, 2013
Slide 1: Quarterly update FY 2013 fourth quarter
Quarterly update FY 2013 fourth quarter October 29, 2013
Slide 2: Agenda and forward-looking statements
Agenda Introduction Glen Ponczak, Vice President, Global Investor Relations Overview Alex Molinaroli, Chief Executive Officer Business results and financial review Bruce McDonald, Executive Vice President and Chief Financial Officer Q&A FORWARD-LOOKING STATEMENTS Johnson . Controls, Inc. has m
Slide 3: 2013 full year results: record sales and earnings
2013 full year results Record sales and earnings Record FY 2013 results despite a mixed macro 2013 full year environment Record revenues $42.7 billion - (+) North America automotive recovery and Record earnings* $2.66 / share continued strong production growth in China - (+) European automotive pr
Slide 4: 2013 fourth quarter: record sales and earnings
2013 fourth quarter Record sales and earnings 2013 fourth quarter highlights* Sales: $11.0 billion (+6%) All businesses vs. $10.4 billion in Q4 2012 Higher revenues Record segment income*: $920 million (+27%) Significantly higher y/y profitability vs. $725 million in Q4 2012 ─ Power Solution
Slide 5: Expectations entering 2014
Expectations entering 2014 Good momentum Stabilizing markets Operational execution improvements Benefits of cost discipline and pricing initiatives Continued margin expansion across the businesses expected Lower levels of capital expenditures generating stronger cash flows Significant re
Slide 6: Thank you, Steve Roell
Thank you, Steve Roell 31 years of service CEO 2007 – 2013 – Sales 2007: $34.6 billion – Sales 2013: $42.7 billion 6
Slide 7: 2013 fourth quarter Power Solutions
2013 fourth quarter Power Solutions 2013 2012 Net sales $1.7B $1.6B +9% Global unit shipments higher, with continued soft aftermarket demand in North America – Americas up 1% – Europe and Asia up 11% - 12% – New customer wins Florence, South Carolina battery recycling facility – Note: AGM volumes
Slide 8: 2013 fourth quarter Building Efficiency
2013 fourth quarter Building Efficiency 2013 2012 Commercial backlog and orders Net sales $3.9B $3.8B +2% (at September 30, 2013) Strong sales in North America Service, Asia and UPG, with lower revenue in Europe and the Orders up 2%; increases Middle East in North America Service and Asia offset
Slide 9: 2013 fourth quarter Automotive Experience
2013 fourth quarter Automotive Experience 2013 2012 Fiscal Q4 production Net sales $5.5B $5.0B +9% North America up 5% Seating up 9%; Interiors up 8% and Electronics up 13% Europe down 1% China sales (mostly non-consolidated) up 20% to $1.6B China up 6% Higher revenue in North America an
Slide 10: Fourth quarter 2013 Financial highlights
Fourth quarter 2013 Financial highlights % 2013 2012 2013 2012 (in millions) (excluding items1) (excluding items1) change (reported) (reported) Sales $11,047 $10,392 6% $11,047 $10,392 Gross profit 1,918 1,620 18% 2,102 1,587 % of sales 17.4% 15.6% 19.0% 15.3% SG&A expenses 1,092 966 13% 802 1,380 G
Slide 11: Fourth quarter 2013 Financial highlights
Fourth quarter 2013 Financial highlights 2013 2012 2013 2012 (in millions, except earnings per share) (excluding items1) (excluding items 1) (reported) (reported) Segment income $920 $725 $1,848* $278* Restructuring and impairment costs ----- ----- 758 245 Financing charges - net 54 62 54 62 Income
Slide 12: Balance sheet / cash flow
Balance sheet / cash flow Achieved our fourth quarter cash flow targets – Cash provided by operating activities $1.0 billion – Net debt reduction of approximately $1.2 billion, including divestiture proceeds Full year free cash flow of $1.3 billion, exceeding our guidance Trade Working Capital
Slide 13: Expectations looking forward
Expectations looking forward Strong momentum, with confidence in Q1 outlook – Expect continued sequential profitability improvements in Automotive Experience – In Building Efficiency, our pipeline supports further improvement in our orders; Q1 revenue growth anticipated with further margin expansi
Slide 14: Appendix
Appendix Johnson Y) ( Controls
Slide 15: Q4 non-recurring / unusual items
Q4 non-recurring / unusual items Pre-tax Tax After-tax 2013 Income (Expense) (Expense) Benefit Income (Expense) EPS Impact Gain (Loss) on Sale of Businesses $ 454 $ (219) $ 235 $ 0.34 Restructuring and Impairment Costs (758) 64 (694) (1.00) Pension / OPEB Mark-to-market gain 405 (169) 236 0.34 Pensi