Regal Rexnord Corporation · NYSE:RRX

Regal Rexnord — Regal Beloit — Investor Day (March 2017)

87 slides from Regal Rexnord's investor day presentation, Mar 10, 2017

Slide 1: Regal Beloit Corporation Investor Day 2017 General Session
Regal Beloit Corporation Investor Day 2017 General Session March 10, 2017 Rob Cherry Vice President – Investor Relations ©2017 Regal Beloit Corporation
Slide 2: Safe Harbor Statement
Safe Harbor Statement This presentation contains “forward-looking statements” as defined in the Private Securities Litigation Reform Act of 1995. Forward-looking statements represent our management’s judgment regarding future events. In many cases, you can identify forward-looking statements by term
Slide 3: Non-GAAP Financial Measures
Non-GAAP Financial Measures We prepare financial statements in accordance with accounting principles generally accepted in the United States (“GAAP”). We also periodically disclose certain financial measures in our quarterly earnings releases, on investor conference calls, and in investor presentati
Slide 4: Agenda
Agenda 8:30-8:35 Welcome & Introductions – Rob Cherry, VP - IR 8:35-10:00 General Session – Tansa – Mark Gliebe, Chairman & CEO – Chuck Hinrichs, VP & CFO – Jon Schlemmer, COO 10:00-10:30 Q&A – Tansa 10:30-10:45 Break – Balcony 10:45-12:15 Segment Breakouts (30-minute rotations) I. Commercial & Indu
Slide 5: Today's Presenters – General Session
Today’s Presenters – General Session Mark Gliebe Chuck Hinrichs Jon Schlemmer Chairman & CEO VP & CFO COO Rob Cherry John Avampato Rob Chesser VP Investor Relations VP & CIO VP Manufacturing March 10, 2017 ©2017 Regal Beloit Corporation 5
Slide 6: Today's Presenters – Commercial & Industrial
Today’s Presenters – Commercial & Industrial Mike Wickiser Eric McGinnis Mike Logsdon Senior VP VP Industrial Motors & VP Technology Commercial Motors Power Generation March 10, 2017 ©2017 Regal Beloit Corporation 6
Slide 7: Today's Presenters – Climate Solutions
Today’s Presenters – Climate Solutions John Kunze Paul Selking VP Climate Solutions HVAC Business Leader March 10, 2017 ©2017 Regal Beloit Corporation 7
Slide 8: Today's Presenters – Power Transmission Solutions
Today’s Presenters – Power Transmission Solutions Jerry Morton Dave Brick VP PTS VP PTS Technology March 10, 2017 ©2017 Regal Beloit Corporation 8
Slide 9: Other Participants – Finance
Other Participants – Finance Rob Rehard Dan Erdman VP FP&A VP Treasurer March 10, 2017 ©2017 Regal Beloit Corporation 9
Slide 10: Enterprise Strategy
Enterprise Strategy Regal Beloit Corporation Investor Day 2017 March 10, 2017 Mark Gliebe Chairman & CEO ©2017 Regal Beloit Corporation
Slide 11: Agenda
Agenda 8:35-9:05 Enterprise Strategy – Mark Gliebe, Chairman & CEO 9:05-9:20 Financial Overview – Chuck Hinrichs, VP & CFO 9:20-10:00 Organic Growth & Simplification – Jon Schlemmer, COO – John Avampato, CIO – Rob Chesser, VP Manufacturing 10:00-10:30 Q&A 10:30-10:45 Break 10:45-12:15 Segment Breako
Slide 12: Enterprise Strategy: 2017-2019
Enterprise Strategy: 2017-2019 CORE CAPABILITIES FOUNDATIONAL PERFORMANCE Top Quartile Unique Culture Cash Generation KEY ELEMENTS Strong • Focus on Core Improving Operators • Innovate to Grow Margins • Simplification Innovative Customer Favored Drives Long Term Growth and Improved Returns March 10,
Slide 13: Enterprise Strategy – Updated Performance Targets
Enterprise Strategy – Updated Performance Targets Organic Sales Adj. Operating ROIC* Free Cash Flow Growth* Margins* to Net Income* 2% – 4% CAGR 200 – 250 BPS 300 – 400 BPS 100% – 125% By 2019 Enterprise Strategy Drives Sustainable Improvements in Financial Performance * Non-GAAP Financial Measureme
Slide 14: Enterprise Strategy: 2017-2019
Enterprise Strategy: 2017-2019 CORE CAPABILITIES FOUNDATIONAL PERFORMANCE Top Quartile Unique Culture Cash Generation KEY ELEMENTS Strong • Focus on Core Improving Operators • Innovate to Grow Margins • Simplification Innovative Customer Favored Drives Long Term Growth and Improved Returns March 10,
Slide 15: Regal Core Capabilities
Regal Core Capabilities CORE CAPABILITIES Unique Culture Strong Strong Operators Operators Innovative Innovative March 10, 2017 ©2017 Regal Beloit Corporation 15
Slide 16: Regal Core Capabilities
Regal Core Capabilities CORE CAPABILITIES UniqueCulture Unique Culture Strong Business System Operators Innovative Innovative March 10, 2017 ©2017 Regal Beloit Corporation 16
Slide 17: Business System
Business System Business System When there is a Distinct Advantage to Standardize and Deploy common elements across Regal, we will do so. It is the compilation of these Cultural Behaviors & Business Processes that make up the Regal Business System. “There is Power in the Way We Work.” March 10, 2017
Slide 18: Business System
Business System Business System When there is a Distinct Advantage to Standardize and Deploy common elements across Regal, we will do so. It is the compilation of these Cultural Behaviors & Business Processes that make up the Regal Business System. “There is Power in the Way We Work.” March 10, 2017
Slide 19: Regal Core Capabilities
Regal Core Capabilities CORE CAPABILITIES Unique Culture Customer Survey Innovation Score Unique Culture 6 Strong Operators Strong 5 Operators 4 Innovative Customers Recognizing Innovation March 10, 2017 ©2017 Regal Beloit Corporation 19
Slide 20: Innovation – DEC Star
Innovation – DEC Star® Innovative  First to Market  New Technology in the Motor, Drive, Blower Construction and Blower Wheel  17 Patents Issued and Pending Delivers Benefits to Customers  Substantial Improvement in Energy Efficiency  Less Noise  Less Weight  Uniform Airflow Helps Meet Difficu
Slide 21: Innovation - UlteMAX
Innovation - UlteMAX™ Innovative  First to Market  Revolutionary Form Factor  New Technology in the Motor, Drive  8 Patents Issued and Pending Delivers Benefits to Customers  Substantial Improvement in Energy Efficiency  50% - 75% Less Weight and Size Improving Energy Efficiency with Less Weig
Slide 22: Positive Handprint
Positive Handprint Creating a Better Tomorrow March 10, 2017 ©2017 Regal Beloit Corporation 22
Slide 23: Enterprise Strategy: 2017-2019
Enterprise Strategy: 2017-2019 CORE CAPABILITIES FOUNDATIONAL PERFORMANCE Top Quartile Unique Culture Cash Generation KEY ELEMENTS Strong • Focus on Core Improving Operators • Innovate to Grow Margins • Simplification Innovative Customer Favored Drives Long Term Growth and Improved Returns March 10,
Slide 24: Regal's Foundational Performance
Regal’s Foundational Performance FOUNDATIONAL PERFORMANCE (millions) Free Cash Flow* % of Adj. Net Income* $500 200% Top Quartile 175% Cash Generation $400 150% 125% $300 100% Improving Improving Margins Margins $200 75% 50% $100 25% Customer Customer Favored Favored $- 0% 2012 2013 2014 2015 2016 C
Slide 25: Regal's Foundational Performance
Regal’s Foundational Performance FOUNDATIONAL PERFORMANCE Adj. EBIT* Adj. EBITDA* Margin Margin Top Quartile Cash Generation 14.6% 13.7% 9.7% Improving 9.4% Margins Customer Customer Favored Favored 2014 2016 2014 2016 Increasing Margins Through Difficult Markets * Non-GAAP Financial Measurement, Se
Slide 26: Regal's Foundational Performance
Regal’s Foundational Performance FOUNDATIONAL PERFORMANCE 2016 Customer Survey Results  Best Net Promoter Score Ever TopTop Quartile Quartile  Best Response Rate Ever Cash Cash Generation Generation  3rd Consecutive Year of Improvement 12.9% 5.7% 5.3% 6.1% Improving Improving Margins Margins Cust
Slide 27: Regal's Foundational Performance
Regal’s Foundational Performance Performing for Our Most Demanding Customers March 10, 2017 ©2017 Regal Beloit Corporation 27
Slide 28: Enterprise Strategy: 2017-2019
Enterprise Strategy: 2017-2019 CORE CAPABILITIES FOUNDATIONAL PERFORMANCE Top Quartile Unique Culture Cash Generation KEY ELEMENTS Strong • Focus on Core Improving Operators • Innovate to Grow Margins • Simplification Innovative Customer Favored Drives Long Term Growth and Improved Returns March 10,
Slide 29: Focus on the Core
Focus on the Core Focus Regal’s talent, capital and energy on core businesses so that we can accelerate our growth and position ourselves for long term success. March 10, 2017 ©2017 Regal Beloit Corporation 29
Slide 30: Focus on the Core
Focus on the Core  Acquisition First  Organic First To  Serial Acquirer  Targeted Acquisitions   Focus On Core Businesses Where We Can Differentiate with Technology  Increase the Focus on the Distribution Channel to Drive Growth  Selectively Prune Businesses Where We Do Not Have a Clear Adva
Slide 31: Innovate for Growth
Innovate for Growth Innovation that delivers differentiated value to customers drives sustained organic growth and margin improvement. March 10, 2017 ©2017 Regal Beloit Corporation 31
Slide 32: Innovation
Innovation Disruptive Energy Efficiency Internet of Things Technology Commercial Refrigeration HP Range Year Markets  Efficient motors use electronics  Effective March of 2017 < 1.0 2011 Furnaces  Every motor can be a sensor  Requires ECM type motor Boilers Appliances  Every motor can communica
Slide 33: Continue Simplification
Continue Simplification Complexity is a barrier to growth, speed and profitability. Continue to simplify our structure and footprint to improve our customer responsiveness and increase our margins. March 10, 2017 ©2017 Regal Beloit Corporation 33
Slide 34: Simplification Initiative
Simplification Initiative Restructuring Expenses* Delivering (millions) $8.9 $9.0  ~2 Year or Less Payback  ~35 BPS Annual Adjusted Operating $6.8 Margin Improvement  Improved Customer Service Manufacturing 2015 2016 2017E Footprint ERPs Warehouses Design Platforms Suppliers Still More Opportunit
Slide 35: Leveraging Simplification
Leveraging Simplification Rooftop Consolidation Automation 1,845K Enables sq ft consolidated ERP Consolidation Digital Customer Experience 80% Enables revenue on one system Platform Consolidation Innovation  Energy Efficiency 4 Enables  Disruptive Technology  Internet of Things design platforms e
Slide 36: Enterprise Strategy: 2017-2019
Enterprise Strategy: 2017-2019 CORE CAPABILITIES FOUNDATIONAL PERFORMANCE Top Quartile Unique Culture Cash Generation KEY ELEMENTS Strong • Focus on Core Improving Operators • Innovate to Grow Margins • Simplification Innovative Customer Favored Drives Long Term Growth and Improved Returns March 10,
Slide 37: Financial Overview
Financial Overview Regal Beloit Corporation Investor Day 2017 March 10, 2017 Chuck Hinrichs Vice President and Chief Financial Officer ©2017 Regal Beloit Corporation
Slide 38: Agenda
Agenda  Sales and Earnings Review  Strong Free Cash Flow  Cash Repatriation  Uses of Cash  Debt and Leverage Ratio  Capital Allocation Priorities  Update on 2017 Guidance March 10, 2017 ©2017 Regal Beloit Corporation 38
Slide 39: Financial History
Financial History Sales Adj. Net Income* (millions) (millions) $3,510 $3,257 $3,225 $240 $3,096 $198 $195 $200 2013 2014 2015 2016 2013 2014 2015 2016 Expecting Organic Sales Growth and Earnings Growth in 2017 * Non-GAAP Financial Measurement, See Appendix for Reconciliation March 10, 2017 ©2017 Reg
Slide 40: Consistently Generating Cash
Consistently Generating Cash (millions) $500 200% 5-Year Average of 138% 175% $400 150% 125% $300 100% $200 75% 50% $100 25% $- 0% 2012 2013 2014 2015 2016 Free Cash Flow* % of Adj. Net Income* Expecting Free Cash Flow % of Net Income of 100% - 125% in 2017-2019 * Non-GAAP Financial Measurement, See
Slide 41: Cash Repatriation
Cash Repatriation  Regal had $285 Million of Cash at Year End 2016 − $280 Million of Cash Outside of U.S.  In 2017, Regal will Repatriate ~ $150 Million of Cash to U.S. − Not Related to Current Tax Reforms Under Review − Executing Tax Planning Initiatives with Minimal Tax Cost − Available for Debt
Slide 42: Returning Cash to Shareholders
Returning Cash to Shareholders Dividends Per Share Paid $0.94 $0.90 $0.84 $0.78 $0.74 $0.70 $0.66 $0.64 $0.62 $0.58 2007 2008 2009 2010 2011 2012 2013 2014 2015 2016 Consistent Increase in Cash Dividends to Shareholders March 10, 2017 ©2017 Regal Beloit Corporation 42
Slide 43: Debt and Leverage Ratio
Debt and Leverage Ratio Total Debt Total (millions) Debt/EBITDA* $2,400 Total Debt Total Debt/EBITDA 4.0 $1,800 3.0 $1,200 2.0 $600 1.0 $0 0.0 2014 2015 2016 2017E Strong Balance Sheet to Deploy Capital * Non-GAAP Financial Measurement, See Appendix for Reconciliation March 10, 2017 ©2017 Regal Belo
Slide 44: Capital Allocation Priorities
Capital Allocation Priorities Balance Sheet Targets  Debt/EBITDA* Ratio: 1.5 – 3.5  Capital Expenditures: 2.5% – 3.0% of Sales  Cash Dividends: 20% – 24% Payout Ratio Acquisitions Share Repurchase Targeted Transactions to Strengthen the Opportunistically Repurchase Shares while Core and Drive Sha
Slide 45: Affirming 2017 Guidance
Affirming 2017 Guidance  2017 Organic Sales Growth  Improved Adjusted Operating Margin  FY 2017 GAAP EPS Guidance of $4.35 to $4.75  FY 2017 Adjusted EPS* Guidance of $4.50 to $4.90 Affirming 2017 Guidance of Sales and Earnings Growth * Non-GAAP Financial Measurement, See Appendix for Reconcilia
Slide 46: Organic Growth & Simplification
Organic Growth & Simplification Regal Beloit Corporation Investor Day 2017 March 10, 2017 Jon Schlemmer John Avampato Chief Operating Officer Vice President and Chief Information Officer Rob Chesser Vice President Manufacturing ©2017 Regal Beloit Corporation
Slide 47: Agenda
Agenda  Organic Growth – Performance Excellence – Innovation – Commercial Excellence – Digital Customer Experience  Simplification – Progress to Date – Next Steps  Summary and Key Takeaways March 10, 2017 ©2017 Regal Beloit Corporation 47
Slide 48: Organic Growth
Organic Growth $3.2B Sales 36% Distribution 64% OEM  Commercial  Performance Excellence Excellence  Digital Customer  Innovation Experience March 10, 2017 ©2017 Regal Beloit Corporation 48
Slide 49: Performance Excellence
Performance Excellence The Underlying Framework that Drives Our Operations to Continuously Improve March 10, 2017 ©2017 Regal Beloit Corporation 49
Slide 50: Performance Excellence
Performance Excellence 1 Star 2 Star 3 Star 4 Star 5 Star Establish Broad Culture Value Stream World Class Engagement Engagement Focus Trained & Self People Engaged Perpetuating Firm Sustained Process Foundation > 12 Months Performance Meets Base Best in Class Criteria Performance Excellence Creates
Slide 51: Growth through Performance Excellence
Growth through Performance Excellence Teams Competing to Achieve Customer Performance Metrics March 10, 2017 ©2017 Regal Beloit Corporation 51
Slide 52: Performance Excellence – Keys to Success
Performance Excellence – Keys to Success Engaged High Visual Capable 5S Energy Teams Factory Processes March 10, 2017 ©2017 Regal Beloit Corporation 52
Slide 54: Customer Feedback
Customer Feedback 2016 Customer Survey Customer Awards Ingersoll Rand  Nearly 4,000 Responses  Achieved Highest Net Promoter Score 2012 2016 12.9% 5.7% 6.1% 5.3% Independent Johnson Controls Distributors Network Quality Responsive Innovation Value Continuous Improvement Customers Recognizing the I
Slide 55: Performance Excellence Journey
Performance Excellence Journey 1 Star 2 Star 3 Star 4 Star 5 Star Today 25% 5% 2020 50% 30% 15% 5% Vision Performance Excellence Will Create a Competitive Advantage March 10, 2017 ©2017 Regal Beloit Corporation 55
Slide 57: Efficiency Requirements Increasing
Efficiency Requirements Increasing Comm. Ref. Commercial Fan Energy Equipment HVAC Rating (FER) 2017 2018 2019 2020 IE3 Efficiency Walk in Coolers Industrial Motors & Freezers Multi-Year Trend Favors High Efficiency Suppliers March 10, 2017 ©2017 Regal Beloit Corporation 57
Slide 58: Full Range of FER Solutions
Full Range of FER Solutions DEC Star® Highest Efficiency Customer Benefits Solution  Full Range of Solutions  Highest Motor Efficiency ECM 3.0+ with Proven Reliability High Efficiency  Premium Solution for Most Motor Difficult Applications Ensite™ ECM Motor Regal Benefits  Full Customer Engageme
Slide 59: UlteMAX
UlteMAX™ Standard UlteMAX™ Customer Benefits Industrial Motor Motor & Control  Compact Form Factor  50% – 75% Lower Weight  Higher Efficiency Regal Benefits  Significant Customer Interest  Sales Begin in 2017  Est $70 Million Sales Over the Next 7 Years UlteMAX™ Delivers Differentiated Solutio
Slide 60: Axial Technology Creating New Opportunities
Axial Technology Creating New Opportunities Axial Axial DEC Star® UlteMAX™ Draft Inducer Gas Pre-Mix HVAC Solution Motor & Control 2011 2013 2015 2017 Growth Opportunities in Both Existing and New Markets for Regal March 10, 2017 ©2017 Regal Beloit Corporation 60
Slide 61: Well Positioned for Internet of Things
Well Positioned for Internet of Things Residential Commercial Industrial Water Heaters HVAC Commercial HVAC Manufacturing Commercial Refrigeration Swimming Pools Industry Leading Position of Small Motors with Integrated Electronics March 10, 2017 ©2017 Regal Beloit Corporation 61
Slide 62: Innovation Summary
Innovation Summary  Energy Efficiency Regulations Favor High Efficiency Suppliers  Axial Differentiating Regal with Disruptive Technology  Regal’s High Efficiency Products Well Positioned for the Internet of Things March 10, 2017 ©2017 Regal Beloit Corporation 62
Slide 64: Investing in Commercial Excellence
Investing in Commercial Excellence New Products Sales Coverage & Talent Tools & Training  Aftermarket Solutions  Increasing Coverage  Sales & Pricing Tools  Product Promotions  Adding Sales Talent  Expanding CRM  Contractor Training  Compensation Program  Sales Training Significant Focus on
Slide 65: Organic Growth – Digital Customer Experience
Organic Growth – Digital Customer Experience ©2017 Regal Beloit Corporation
Slide 66: Simplification of Our IT Systems
Simplification of Our IT Systems ERP Consolidation Benefits % Sales on Standard ERP Customer 90%  One PO, One Shipment  Product Configurator 80%  Higher Stock Availability  Digital Customer Experience 60% Regal  Accelerates Simplification 35%  Sharing Best Practices 25%  Advanced Data Analyti
Slide 67: Digital is Transforming the Buying Process
Digital is Transforming the Buying Process 60%  Human interactions shift to online searches and digital transactions Percentage of digital order lines at one of our key customers  B2B buyers demand the same online experience they see in the B2C world 20 % pts  Rich content gives buyers the answer
Slide 68: Regal Digital Customer Experience
Regal Digital Customer Experience Digital Product Customer Experience Rich Content Information Website Research and “Where to Buy” Refresh Electronic Business Make It Easy For The Customer Transactions March 10, 2017 ©2017 Regal Beloit Corporation 68
Slide 69: Digital Product Information
Digital Product Information High-Resolution Product Images  Digitizing Product Catalog for all Brands Across Regal  Digital Asset Management - Images, Graphics, Videos  On Demand Syndication to Our Customers Delivering Rich Product Content to Our Customers March 10, 2017 ©2017 Regal Beloit Corpor
Slide 70: Customer Websites
Where To Buy function Website Refresh takes the user directly to our customers’ website! DIGITAL CONTENT Regal Website Features & Specifications: Customer Websites Mounting: Two-Bolt Base Bore Diameter: 1 inch Bore Type: Round Duty Type: Light Duty Housing Material: Cast Iron Locking Device: Eccentr
Slide 71: Electronic Business Transactions
Electronic Business Transactions (millions) $1,000 $1,000 $800 $600 $550 $490 $400 $200 $0 2015 2016 2019E Make It Easy For The Customer March 10, 2017 ©2017 Regal Beloit Corporation 71
Slide 72: Organic Growth
Organic Growth $3.2B Sales 36% Distribution 64% OEM  Commercial  Performance Excellence Excellence  Digital Customer  Innovation Experience Strategies and Actions to Drive 2%-4% Organic Growth CAGR March 10, 2017 ©2017 Regal Beloit Corporation 72
Slide 74: Simplification Initiative
Simplification Initiative Completed thru 2016 Planned for 2017-2019 75% of Sales on One ERP ERPs 90% of Sales on One ERP 1,845,000 Sq-Ft Reduced Another 1,100,000 Sq-Ft 15% Reduction Manufacturing Footprint Cumulative 25% Reduction 4 Major Design Platforms 1 Additional Design Platform Consolidated D
Slide 75: Platform Simplification Enables Innovation
Platform Simplification Enables Innovation Worm Gears  Fewer Platforms Reduce Industrial Motors Engineering Support  Freeing Up Engineering 48 Frame HVAC Capacity as Simplification Efforts Ramp Down  Doubling Down on New 3.3” HVACR Product Programs 56 Frame C&I 2017 Freeing Up Engineering Capacit
Slide 76: Automation – Material Movement
Automation – Material Movement Simple Automation Increases Safety and Efficiency March 10, 2017 ©2017 Regal Beloit Corporation 76
Slide 77: Automation – Component Assembly
Automation – Component Assembly Complex Automation Enabled by Simplification Efforts March 10, 2017 ©2017 Regal Beloit Corporation 77
Slide 78: Simplification to Automation
Simplification to Automation 2014 - 2016 2017 - 2019 Future 10% 30% 50% 90% 70% 50% Simplification Automation Annual Margin ~35 30-40 30-40 Improvement bps bps bps Simplification and Automation Continue to Deliver Margin Improvement March 10, 2017 ©2017 Regal Beloit Corporation 78
Slide 79: Summary and Key Takeaways
Summary and Key Takeaways Organic Growth Initiatives Organic Sales 36% 64% Growth* Distribution OEM  Performance Excellence $3.2B 2016  Innovation Sales  Commercial Excellence 2% – 4% CAGR  Digital Customer Experience 11.7% - 12.2% Margin Improvement Efforts Adj. Operating 9.7%  Organic Growth
Slide 80: Q&A
Q&A We create a better tomorrow by efficiently converting power into motion. ©2017 Regal Beloit Corporation
Slide 81: Agenda
Agenda 8:35-9:05 Enterprise Strategy – Mark Gliebe, Chairman & CEO 9:05-9:20 Financial Overview – Chuck Hinrichs, VP & CFO 9:20-10:00 Organic Growth & Simplification – Jon Schlemmer, COO – John Avampato, CIO – Rob Chesser, VP Manufacturing 10:00-10:30 Q&A 10:30-10:45 Break 10:45-12:15 Segment Breako
Slide 82: Appendix Non-GAAP Reconciliations
Appendix Non-GAAP Reconciliations ORGANIC GROWTH (Dollars in Millions) Fiscal 2016 Net Sales $ 3,224.5 Net Sales from Businesses Acquired (35.9) Net Sales from Businesses Divested 11.6 Impact from Foreign Currency Exchange Rates 31.2 Adjusted Net Sales $ 3,231.4 Net Sales Ended Jan 2, 2016 $ 3,509.7
Slide 83: Appendix Non-GAAP Reconciliations
Appendix Non-GAAP Reconciliations ADJUSTED OPERATING INCOME Fiscal (Dollars In Millions) 2016 GAAP Income from Operations $ 320.6 Goodwill Impairment - Venezuelan Asset Write Down - Gain on Sale of Assets (1.7) Purchase Accounting and Transaction Costs - Restructuring and Related Costs 6.8 Venezuela
Slide 84: Appendix Non-GAAP Reconciliations
Appendix Non-GAAP Reconciliations EBIT AND EBITDA RECONCILIATION (Dollars In Millions) Fiscal 2014 Fiscal 2015 Fiscal 2016 Fiscal 2017E Income From Operations $ 121.5 $ 252.8 $ 320.6 $ 322.0 Plus: Goodwill Impairment 119.5 79.9 - - Plus: Asset Impairment and Other Net, 40.0 - - - Plus: Restructuring
Slide 85: Appendix Non-GAAP Reconciliations
Appendix Non-GAAP Reconciliations RETURN ON INVESTED CAPITAL (ROIC) RECONCILIATION (Data in Millions) Fiscal 2015 Fiscal 2016 Cash $ (253) $ (285) Current Maturities of Long Term Debt 6 101 Long Term Debt 1,716 1,311 Total Net Debt $ 1,469 $ 1,127 Total Regal Beloit Corporation Shareholders' Equity
Slide 86: Appendix Non-GAAP Reconciliations
Appendix Non-GAAP Reconciliations (Dollars in Millions) Twelve Months Ended FREE CASH FLOW Dec 29, 2012 Dec 28, 2013 Jan 3, 2015 Jan 2, 2016 Dec 31, 2016 Net Cash Provided by Operating Activities $ 351.7 $ 305.0 $ 298.2 $ 381.1 $ 439.6 Additions to Property Plant and Equipment (91.0) (82.7) (83.6) (
Slide 87: Appendix Non-GAAP Reconciliations
Appendix Non-GAAP Reconciliations RECONCILIATION OF ADJUSTED NET INCOME (Dollars in Millions) Fiscal 2013 Fiscal 2014 Fiscal 2015 Fiscal 2016 Net Income Attributable to Regal Beloit Corporation $ 120.0 $ 31.0 $ 143.3 $ 203.4 Goodwill Impairment 117.2 58.1 Asset Impairment and Other, Net 74.6 30.2 Ve

Regal Beloit — Investor Day (March 2017) on 6ix

Regal Rexnord — Regal Beloit — Investor Day (March 2017)

Slide 1: Regal Beloit Corporation Investor Day 2017 General Session

Slide 2: Safe Harbor Statement

Slide 3: Non-GAAP Financial Measures

Slide 4: Agenda

Slide 5: Today's Presenters – General Session

Slide 6: Today's Presenters – Commercial & Industrial

Slide 7: Today's Presenters – Climate Solutions

Slide 8: Today's Presenters – Power Transmission Solutions

Slide 9: Other Participants – Finance

Slide 10: Enterprise Strategy

Slide 11: Agenda

Slide 12: Enterprise Strategy: 2017-2019

Slide 13: Enterprise Strategy – Updated Performance Targets

Slide 14: Enterprise Strategy: 2017-2019

Slide 15: Regal Core Capabilities

Slide 16: Regal Core Capabilities

Slide 17: Business System

Slide 18: Business System

Slide 19: Regal Core Capabilities

Slide 20: Innovation – DEC Star

Slide 21: Innovation - UlteMAX

Slide 22: Positive Handprint

Slide 23: Enterprise Strategy: 2017-2019

Slide 24: Regal's Foundational Performance

Slide 25: Regal's Foundational Performance

Slide 26: Regal's Foundational Performance

Slide 27: Regal's Foundational Performance

Slide 28: Enterprise Strategy: 2017-2019

Slide 29: Focus on the Core

Slide 30: Focus on the Core

Slide 31: Innovate for Growth

Slide 32: Innovation

Slide 33: Continue Simplification

Slide 34: Simplification Initiative

Slide 35: Leveraging Simplification

Slide 36: Enterprise Strategy: 2017-2019

Slide 37: Financial Overview

Slide 38: Agenda

Slide 39: Financial History

Slide 40: Consistently Generating Cash

Slide 41: Cash Repatriation

Slide 42: Returning Cash to Shareholders

Slide 43: Debt and Leverage Ratio

Slide 44: Capital Allocation Priorities

Slide 45: Affirming 2017 Guidance

Slide 46: Organic Growth & Simplification

Slide 47: Agenda

Slide 48: Organic Growth

Slide 49: Performance Excellence

Slide 50: Performance Excellence

Slide 51: Growth through Performance Excellence

Slide 52: Performance Excellence – Keys to Success

Slide 53: Employee Engagement Video

Slide 54: Customer Feedback

Slide 55: Performance Excellence Journey

Slide 56: Organic Growth – Innovation

Slide 57: Efficiency Requirements Increasing

Slide 58: Full Range of FER Solutions

Slide 59: UlteMAX

Slide 60: Axial Technology Creating New Opportunities

Slide 61: Well Positioned for Internet of Things

Slide 62: Innovation Summary

Slide 63: Organic Growth – Commercial Excellence

Slide 64: Investing in Commercial Excellence

Slide 65: Organic Growth – Digital Customer Experience

Slide 66: Simplification of Our IT Systems

Slide 67: Digital is Transforming the Buying Process

Slide 68: Regal Digital Customer Experience

Slide 69: Digital Product Information

Slide 70: Customer Websites

Slide 71: Electronic Business Transactions

Slide 72: Organic Growth

Slide 73: Simplification Update and Next Steps

Slide 74: Simplification Initiative

Slide 75: Platform Simplification Enables Innovation

Slide 76: Automation – Material Movement

Slide 77: Automation – Component Assembly

Slide 78: Simplification to Automation

Slide 79: Summary and Key Takeaways