Johnson Controls International Plc · NYSE:JCI

Johnson Controls International — Q3 2015 Earnings Presentation

14 slides from Johnson Controls International's earnings presentation, Jul 24, 2015

  1. Slide 1: Quarterly update FY 2015 third quarter

    Quarterly update FY 2015 third quarter July 24, 2015

  2. Slide 2: Forward-Looking Statements

    Forward-Looking Statements Johnson Controls, Inc. has made statements in this document that are forward-looking and, therefore, are subject to risks and uncertainties. All statements in this document other than statements of historical fact are statements that are, or could be, deemed "forward-looki

  3. Slide 3: Agenda

    Agenda Introduction 1 Glen Ponczak, Vice President, Global Investor Relations Automotive update and third quarter highlights 2 Alex Molinaroli, Chairman and Chief Executive Officer Business results 3 Bruce McDonald, Vice Chairman and Executive Vice President Financial review 4 Brian Stief, Executive

  4. Slide 4: FY2015 third quarter highlights

    FY2015 third quarter highlights*  Executing well • Record third-quarter earnings from continuing operations • Gross margin up 170 bps year-over-year; segment margins up 120 bps • Johnson Controls Operating System delivering increasing benefits  Markets supporting continued growth • Global automoti

  5. Slide 5: Johnson Controls outperforming the market

    China Update Johnson Controls outperforming the market  Power Solutions • 2014 – 2020 battery industry CAGR 8-9% • Rapidly growing aftermarket • Strong future AGM growth • JCI ― Q3 aftermarket shipments +58% vs. p/y Q3 ― Received new order for 1.4 million units / year  Automotive Experience • Q3 p

  6. Slide 6: Automotive strategic review update

    Automotive strategic review update Opportunity for auto business to further its global leadership position  Pursuing tax-free spinoff of Automotive Experience business • Will operate as an independent, publicly traded company  New automotive company management • Bruce McDonald named Chairman and C

  7. Slide 7: Record FY15 Q3 earnings from continuing operations

    Record FY15 Q3 earnings from continuing operations* NET REVENUES DILUTED EPS $9.8 B $9.6 B -2% $0.91 $0.79 +15% +5% excluding FX FY15 Q3 FY14 Q3 FY15 Q3 FY14 Q3 SEGMENT INCOME $848 M Segment margin +14% $745 M +120 bps +19% excluding FX FY15 Q3 FY14 Q3 * Excluding transaction / integration costs and

  8. Slide 8: Building Efficiency: Growth in revenues, backlog and orders

    Building Efficiency Growth in revenues, backlog and orders NET REVENUES  Third party sales • North America up 3% (up 4%, ex. FX) $2.7 B • Asia down 5% (down 1%, ex. FX) $2.6 B • Europe down double-digits (down 1%, ex. FX) +5%  Incremental revenues from ADT Positive order trend continued, +6% (ex.

  9. Slide 9: Power Solutions: Strong operational performance and profitability

    Power Solutions Strong operational performance and profitability NET REVENUES  Improved aftermarket and OE volumes in $1.5 B $1.5 B Europe and Asia • Europe up 22% -2% • Asia up 8% +6% excluding FX  AGM units up 47% FY15 Q3 FY14 Q3 SEGMENT INCOME $234 M  Segment margin at 15.9% +320 bps $192 M 

  10. Slide 10: Automotive Experience: Strong global volumes and profitability

    Automotive Experience Strong global volumes and profitability NET REVENUES  FY15 Q3 industry production $5.7 B • North America up 2% $5.4 B • Western Europe up 4% • China up 2% (passenger car up 7%) -6%  JCI China sales (mostly non-consolidated) up 10% to +3% excluding FX  $1.9B Interiors JV clos

  11. Slide 11: Financial Highlights (continuing operations)

    Second Third Quarter Quarter FY2015 2015 Financial Highlights (continuing operations) % 1 2 2015 2014 (in millions) 2015 2014 Change (reported) (reported) Sales $9,608 $9,833 -2% $9,608 $9,833 Gross profit 1,706 1,586 +8% 1,706 1,580 % of sales 17.8% 16.1% 17.8% 16.1% SG&A expenses 949 929 +2% 975 9

  12. Slide 12: Financial Highlights (continuing operations)

    Second Third Quarter Quarter FY2015 2015 Financial Highlights (continuing operations) 1 2 2015 2014 (in millions, except earnings per share) 2015 2014 (reported) (reported) Operating income $848 $745 $822 $630 Restructuring and impairment - - - 162 Financing charges - net 75 67 75 67 Income from con

  13. Slide 13: Balance Sheet, Cash Flow and Guidance

    Second Quarter 2015 Financial Balance Sheet, Highlights Cash(continuing Flow and Guidance operations)  Q3 free cash flow of $399M impacted by timing of China JV dividends until Q4 ($170M)  Capital spending in line with our expectations  FY15 share repurchases to date of $1B  Trade working capita

  14. Slide 14: johnsoncontrols.com/investors

    johnsoncontrols.com/investors @JCI_IR 14 Johnson Controls, Inc. -

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