Rockwell Automation, Inc. · NYSE:ROK
Rockwell Automation — Q4 2014 Earnings Presentation
18 slides from Rockwell Automation's earnings presentation, Nov 12, 2014
Slide 1: Fiscal Year 2014 Fourth Quarter Conference Call
Fiscal Year 2014 Fourth Quarter Conference Call November 12, 2014 Rev 5058-CO900A Copyright © 2014 Rockwell Automation, Inc. All rights reserved.
Slide 2: Safe Harbor Statement
Safe Harbor Statement This presentation includes statements related to the expected future results of the company and are therefore forward-looking statements. Actual results may differ materially from those projections due to a wide range of risks and uncertainties, including those that are liste
Slide 3: Fiscal 2014 Highlights
Fiscal 2014 Highlights Fourth Quarter Organic sales up 4% YOY, led by 12% growth in Latin America Segment operating margin of 22.2%, up 130 bps YOY Adjusted EPS of $1.86, up 15% YOY Full Year Record sales of $6.6 billion Organic sales up 5%, with U.S. up 7% Segment operating margin expan
Slide 4: Key Financial Information: Fourth Quarter
Key Financial Information: Fourth Quarter (in millions, except per share amounts) Q4 2014 Q4 2013 YOY B/(W) Sales $ 1,782 $ 1,716 3.9% Segment Operating Margin 22.2% 20.9% 130 bps General Corporate - Net $ 22 $ 40 $ 18 Adjusted EPS $ 1.86 $ 1.62 15% Adjusted Effective Tax Rate 27.0% 23.7% (330) bps
Slide 5: Key Financial Information: Full Year
Key Financial Information: Full Year (in millions, except per share amounts) FY 2014 FY 2013 YOY B/(W) Sales $ 6,624 $ 6,352 4.3% Segment Operating Margin 20.4% 19.5% 90 bps General Corporate - Net $ 81 $ 97 $ 16 Adjusted EPS $ 6.17 $ 5.71 8% Adjusted Effective Tax Rate 27.5% 23.9% (360) bps Free Ca
Slide 6: FY 2013 to FY 2014 Adjusted EPS Walk
FY 2013 to FY 2014 Adjusted EPS Walk 0.08 (0.30) 0.64 0.04 $6.17 $5.71 FY2013 Segment OE GCN Tax Rate* Share Count FY2014 Actual Actual Adjusted EPS growth of 8% YOY; 13% excluding higher tax rate* * Adjusted Effective Tax Rate Copyright © 2014 Rockwell Automation, Inc. All rights reserved. 6
Slide 7: Architecture & Software
Architecture & Software Sales Segment Operating Margins ($ millions) $3,000 $2,845 35% $2,682 31.1% 30.5% 30% 29.5% $2,000 28.3% $1,000 $714 $747 25% $0 20% Q4 FY Q4 FY 2013 2014 2013 2014 Segment operating margin expanded 60 bps in YOY Sales % Change Q4 YOY, and increased 120 bps for the full yea
Slide 8: Control Products & Solutions
Control Products & Solutions Sales Segment Operating Margins ($ millions) $4,000 $3,670 $3,778 20% 15.8% $3,000 15% 14.0% 13.6% 13.0% $2,000 10% $1,001 $1,034 $1,000 5% $0 0% Q4 FY Q4 FY 2013 2014 2013 2014 YOY Sales % Change Segment operating margin expanded 180 bps in Q4 2014 FY 2014 Q4 YOY, and
Slide 9: Regional Sales
Regional Sales (in millions, except percentages) Fourth Quarter * Q4 2014 FY 2014 Latin America growth led by Mexico and Brazil Organic Organic Region Sales % Change Sales % Change Strong growth in India U.S. $ 899 5.0% $ 3,415 6.8% Emerging markets up high single digits Canada 116 6.4% 437 (0
Slide 10: Fiscal 2015 Guidance
Fiscal 2015 Guidance Sales Midpoint ~ $6.8B Organic Growth Range 2.5% to 6.5% Currency Translation & Acquisitions ~ (1.5)% Segment Operating Margin ~ 21% Adjusted Effective Tax Rate ~ 27% Adjusted EPS $6.55 to $6.95 Free Cash Flow as a % of Adjusted Income ~ 100% Note: As of November 12, 2014 Copyri
Slide 11: FY 2014 to FY 2015 Midpoint Adjusted EPS Walk
FY 2014 to FY 2015 Midpoint Adjusted EPS Walk 0.57 (0.04) 0.17 $6.75 (0.17) 0.05 $6.17 FY2014 Core Pension Currency Tax Rate* Share FY2015 Actual Count Midpoint Segment Operating Earnings Adjusted EPS growth of 9% YOY * Adjusted Effective Tax Rate Copyright © 2014 Rockwell Automation, Inc. All right
Slide 12: Appendix: Supplemental Financial Information and Reconciliations
Appendix Supplemental Financial Information and Reconciliations to non-GAAP Measures Copyright © 2014 Rockwell Automation, Inc. All rights reserved.
Slide 13: Fourth Quarter Results: Summary
Fourth Quarter Results: Summary (in millions, except per share amounts) Q4 2014 Q4 2013 Total Sales $ 1,781.8 $ 1,715.7 Total Segment Operating Earnings $ 395.8 $ 357.8 Purchase Accounting Depreciation and Amortization (5.7) (4.5) General Corporate - Net (22.3) (39.7) Non-Operating Pension Costs (13
Slide 14: Free Cash Flow
Free Cash Flow (in millions) Q4 2014 FY 2014 Net Income $ 248.7 $ 826.8 Depreciation/Amortization 38.1 152.5 Retirement Benefits Expense 32.9 132.9 Receivables/Inventory/Payables (65.7) (61.5) Compensation and Benefits 64.6 43.3 Pension Contributions (9.4) (42.1) Income Taxes 23.7 (5.4) Other (7.0)
Slide 15: Reconciliation to Non-GAAP Measures
Reconciliation to Non-GAAP Measures Organic Sales (in millions, except percentages) Three Months Ended September 30, 2014 2013 Sales Sales Organic Effect of Excluding Growth Growth Changes in Changes in Effect of Organic (Decline) (Decline) Sales(a) Currency Currency Acquisitions Sales(b) Sales(c) (
Slide 16: Reconciliation to Non-GAAP Measures
Reconciliation to Non-GAAP Measures Organic Sales (in millions, except percentages) Three Months Ended September 30, 2014 2013 Sales Sales Organic Effect of Excluding Growth Growth Changes in Changes in Effect of Organic (Decline) (Decline) Sales(a) Currency Currency Acquisitions Sales(b) Sales(c) (
Slide 17: Reconciliation to Non-GAAP Measures
Reconciliation to Non-GAAP Measures Segment Operating Margin (in millions, except percentages) Three Months Ended Three Months Ended Twelve Months Ended Twelve Months Ended September 30, 2014 September 30, 2013 September 30, 2014 September 30, 2013 Sales Architecture & Software (a) $ 747.4 $ 714.3 $
Slide 18: Reconciliation to Non-GAAP Measures
Reconciliation to Non-GAAP Measures Adjusted Income and Adjusted EPS (in millions, except per share amounts) Three Months Ended Three Months Ended Twelve Months Ended Twelve Months Ended September 30, 2014 September 30, 2013 September 30, 2014 September 30, 2013 Income from continuing operations $ 2