Johnson Controls International plc · NYSE:JCI
Johnson Controls International — Tyco International — Q1 FY2013 Earnings Presentation
24 slides from Johnson Controls International's earnings presentation, Jan 29, 2013
Slide 1: First Quarter Review
First Quarter Review 29 / January / 2013
Slide 2: Forward-Looking Statements / Safe Harbor
Forward-Looking Statements / Safe Harbor This presentation contains a number of forward-looking statements. Words and variations of words such as “outlook”, “expect”, “intend”, “will”, “anticipate”, “believe”, “propose”, “potential”, “continue”, “opportunity”, “estimate”, “project” and similar expre
Slide 3: Executing Our Growth Strategy
Executing Our Growth Strategy Increased service revenue R&D investments driving new product introductions Strengthened service platform and augmented key vertical markets with recent acquisitions Accelerated growth rate in emerging markets Continued progress with sourcing and productivity initiative
Slide 4: Capital Allocation
Capital Allocation Deep pipeline of attractive acquisition candidates • Continue to prioritize the use of free cash flow to execute strategic bolt-on acquisitions Board increases share repurchase authorization up to $750 million • Provides greater flexibility to be opportunistic Board proposes for s
Slide 5: Q1 2013 Results – Financial Overview
Q1 2013 Results – Financial Overview (EPS amounts are attributable to Tyco common shareholders) ($ in millions, except per-share amounts) ($ in millions) Q1FY13 Q1FY12 Change Revenue $2,600 $2,478 5% Segment Operating Income before special items * $318 $310 3% Segment Operating Margin before special
Slide 6: Q1 Highlights
Q1 Highlights Revenue of $2.6 billion with organic revenue* growth of 1% • Products +6%, Service +2% and Installation (3%) Segment operating margin before special items* of 12.2% • Continued growth of higher margin service revenue • Productivity and restructuring benefits • Incremental growth invest
Slide 7: First Quarter – NA Installation & Services
First Quarter – NA Installation & Services ($ in millions) Q1FY13 Q1FY12 Change Organic revenue* increased 1% • Service was up 1% Revenue $976 $962 1.5% • Installation flat Operating Income* $120 $108 11% Operating Margin* 12.3% 11.2% Year over year operating margin expansion driven by higher mix of
Slide 8: First Quarter – ROW Installation & Services
First Quarter – ROW Installation & Services ($ in millions) Q1FY13 Q1FY12 Change Organic revenue* in line with prior year Revenue $1,090 $1,056 3% • Service grew 3% Operating Income* $121 $118 3% • Installation declined 5% Operating Margin* 11.1% 11.2% Higher mix of service revenue was offset by inc
Slide 9: First Quarter – Global Products
First Quarter – Global Products ($ in millions) Q1FY13 Q1FY12 Change Year over year operating margin was impacted by incremental Revenue $534 $460 16% investments, $6M of costs associated with an environmental Operating Income* $77 $84 (8)% reserve and lower sales of higher margin products due to ti
Slide 10: Other Items
Other Items Free cash flow* was negative $133 million in Q1 and included $103 million of cash paid for special items, primarily separation and restructuring activities. Adjusted free cash flow* was negative $30 million Corporate expense before special items was $58 million in the quarter • Outlook:
Slide 11: Normalized Q1FY12 Earnings Per Share
Normalized Q1FY12 Earnings Per Share Reconciliation to Q1FY12 GAAP EPS Q1FY12 EPS GAAP $0.21 Restructuring, net $0.02 Asset impairment charges $0.03 Q1FY12 EPS before special items $0.26 Anticipated dis-synergies in NA I&S Segment ($0.01) Represents Corporate expense from $86M to expected $56M $0.05
Slide 12: Normalized Q2FY12 Earnings Per Share
Normalized Q2FY12 Earnings Per Share Reconciliation to Q2FY12 GAAP EPS Q2FY12 EPS GAAP $0.29 Restructuring, net $0.03 Legacy legal items $0.04 Former management ERISA reversal ($0.07) Separation costs $0.01 Q2FY12 EPS before special items $0.30 Anticipated dis-synergies in NA I&S Segment ($0.01) Rep
Slide 13: Appendix
Appendix
Slide 14: Consolidated Statements of Operations
TYCO INTERNATIONAL LTD. CONSOLIDATED STATEMENTS OF OPERATIONS (in millions, except per share data) (Unaudited) Quarters Ended December 28, December 30, 2012 2011 Revenue from product sales $ 1,443 $ 1,369 Service revenue 1,157 1,109 Net revenue 2,600 2,478 Cost of product sales 1,004 769 Cost of ser
Slide 15: Results of Segments
TYCO INTERNATIONAL LTD. RESULTS OF SEGMENTS (in millions) (Unaudited) Quarters Ended December 28, December 30, 2012 2011 Net Revenue NA Installation & Services $ 976 $ 962 ROW Installation & Services 1,090 1,056 Global Products 534 460 Total Net Revenue $ 2,600 $ 2,478 Operating Income and Margin NA
Slide 16: Consolidated Balance Sheets
TYCO INTERNATIONAL LTD. CONSOLIDATED BALANCE SHEETS (in millions) (Unaudited) December 28, September 28, 2012 2012 Assets Cash and cash equivalents $ 501 $ 844 Accounts receivable, net 1,709 1,711 Inventories 664 634 Prepaid expenses and other current assets 912 850 Deferred income taxes 295 295 Tot
Slide 17: Consolidated Statements of Cash Flows
TYCO INTERNATIONAL LTD. CONSOLIDATED STATEMENTS OF CASH FLOWS (in millions) (Unaudited) For the Quarters Ended December 28, December 30, 2012 2011 Cash Flows From Operating Activities: Net income attributable to Tyco common shareholders $163 $322 Noncontrolling interest in subsidiaries net income 2
Slide 18: Organic Growth Reconciliation - Revenue
Tyco International Ltd. Organic Growth Reconciliation - Revenue (in millions) (Unaudited) Quarter Ended December 28, 2012 Base Year Adjustments Net Revenue for the Adjusted Net Revenue for the Quarter Ended (Divestitures) 2012 Base Quarter Ended December 30, 2011 Revenue Foreign Currency Acquisition
Slide 19: Earnings Per Share Summary
Earnings Per Share Summary (Unaudited) Quarter Ended Quarter Ended Dec. 28, 2012 Dec. 30, 2011 Diluted EPS from Continuing Operations Attributable to Tyco Shareholders (GAAP) $0.34 $0.21 expense / (benefit) Restructuring, net 0.01 0.02 Separation costs included in SG&A 0.01 - Asset impairment charge
Slide 20: Reconciliation for Quarter Ended December 28, 2012
Tyco International Ltd. For the Quarter Ended December 28, 2012 (in millions, except per share data) (Unaudited) expense / (benefit) Segments NA Installation ROW Installation Global Segment Corporate Total & Service & Service Products Revenue and Other Revenue Revenue (GAAP) $976 $1,090 $534 $2,600
Slide 21: Reconciliation for Quarter Ended December 30, 2011
Tyco International Ltd. For the Quarter Ended December 30, 2011 (in millions, except per share data) (Unaudited) expense / (benefit) Segments NA Installation ROW Installation Global Segment Corporate Total & Service & Service Products Revenue and Other Revenue Revenue (GAAP) $962 $1,056 $460 $2,478
Slide 22: Non-GAAP Measures
Non-GAAP Measures Organic revenue, free cash flow (outflow) (FCF), and income from continuing operations, earnings per share (EPS) from continuing operations, operating income and segment operating income, and normalized EPS, in each case “before special items,” are non-GAAP measures and should not
Slide 23: Non-GAAP Measures Continued
Non-GAAP Measures Continued The limitation associated with using these cash flow metrics is that they adjust for cash items that are ultimately within management's and the Board of Directors' discretion to direct and therefore may imply that there is less or more cash that is available for the compa
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