Rockwell Automation, Inc. · NYSE:ROK

Rockwell Automation — Q4 2024 Earnings Presentation

31 slides from Rockwell Automation's earnings presentation, Nov 7, 2024

  1. Slide 1: Q4 Fiscal 2024 Earnings Presentation

    Q4 Fiscal 2024 Earnings Presentation November 7, 2024 PUBLIC PUBLIC | Copyright ©2024 Rockwell Automation, Inc. | 1 1

  2. Slide 2: Forward-looking statements and non-GAAP information

    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 listed in our SEC filings. Th

  3. Slide 3: Q4 FY24 Results Highlights

    Q4 FY24 Results Highlights ▶ Orders down low single digits sequentially; up ~25% YOY ▶ Reported and organic sales down (21)% YOY ▶ Total Annual Recurring Revenue (ARR) up 16% YOY ▶ Segment margin of 20.1%, down (220) bps YOY ▶ Adjusted EPS of $2.47, down (32)% YOY ▶ Achieved ~$70M of productivity sa

  4. Slide 4: Q4 FY24 Organic Industry Segment Performance

    Q4 FY24 Organic Industry Segment Performance % of Q4 Q4 FY24 Q4 FY24 FY24 Sales vs. Q4 FY23 vs. Q4 FY23  Automotive down ~35% ~25% Down ~20%  Semiconductor down ~10% DISCRETE  e-Commerce & Warehouse Automation* up ~25%  Food & Beverage down ~25% ~ 40% Down ~25%  Life Sciences down ~25%  Tire d

  5. Slide 5: Q4 and Full Year FY24 Organic Sales Growth

    Q4 and Full Year FY24 Organic Sales Growth North EMEA % of FY America Q4: (31)% Reported Q4: (17)% FY: (21)% Sales FY: (5)% Asia Pacific Q4: (31)% Latin America FY: (20)% Q4: (7)% FY: 4% Americas continued to be strongest region in FY24 PUBLIC | Copyright ©2024 Rockwell Automation, Inc. | 5

  6. Slide 6: Full Year FY24 Results Highlights

    Full Year FY24 Results Highlights ▶ Reported sales down (9)% YOY; organic sales down (10)% YOY ▶ Acquisitions contributed ~1pt. of growth ▶ Total ARR up 16% YOY ▶ Segment margin of 19.3%, down (200) bps YOY; includes 2H cost reduction benefit of ~$110M ▶ Adjusted EPS of $9.71, down (20)% YOY ▶ Free

  7. Slide 7: Full Year FY25 Outlook

    Full Year FY25 Outlook ▶ Total and organic sales growth range of (4)% to 2% ▶ Total ARR expected to grow ~10% YOY ▶ Expect segment margin of ~19% ▶ Adjusted EPS range of $8.60 - $9.80, down ~(5)% YOY at the midpoint ▶ Expect Free Cash Flow conversion of ~100% Note: Guidance as of November 7, 2024 De

  8. Slide 8: Q4 FY24 Key Financial Information

    Q4 FY24 Key Financial Information ($ in millions, except per share amounts) Q4 FY24 Q4 FY23 YOY B/(W) Organic Growth (21)% Inorganic Growth +1 % Sales $2,036 $2,563 Currency Translation (1)% Reported Growth (21)% Segment Operating Margin 20.1% 22.3% (220) bps Corporate and Other $39 $39 $— Adjusted

  9. Slide 9: Q4 FY24 Segment Results

    Q4 FY24 Segment Results Sales ($ in millions; YOY growth %) Segment Operating Margin Q1 FY23 Segment Highlights Organic (20) % Lower segment margin driven by lower sales volume and unfavorable mix, partially offset by the benefits Intelligent $946M Inorganic +1 % 20.6% from cost reduction actions, l

  10. Slide 10: Q4 FY23 to Q4 FY24 Adjusted EPS Walk

    Q4 FY23 to Q4 FY24 Adjusted EPS Walk ~ $(2.40) ~ $0.20 ~ $(0.05) ~ $0.05 ~ $0.03 ~ $0.55 ~ $(0.05) $3.64 ~ $0.50 $2.47 Q4 FY23 Core Benefits from Cost Incentive Acquisitions Clearpath Earnout FX Tax Rate Shares / Int / All Q4 FY24 Reductions Compensation Other Adjusted EPS excludes FY24 2nd half res

  11. Slide 11: Full Year FY24 Key Financial Information

    Full Year FY24 Key Financial Information ($ in millions, except per share amounts) FY24 FY23 YOY B/(W) Organic Growth (10) % Inorganic Growth +1 % Sales $8,264 $9,058 Currency Translation — % Reported Growth (9)% Segment Operating Margin 19.3% 21.3% (200) bps Corporate and Other $136 $128 $(8) Adjus

  12. Slide 12: Fiscal Year 2025 Guidance

    Fiscal Year 2025 Guidance Full Year Outlook Sales Midpoint ~ $8.2B Segment Operating Margin ~ 19% Adjusted Effective Tax Rate ~ 17% Adjusted EPS Range $8.60 - $9.80 Free Cash Flow Conversion ~ 100% Note: Guidance as of November 7, 2024 PUBLIC | Copyright ©2024 Rockwell Automation, Inc. | 12

  13. Slide 13: FY24 Actuals to FY25 Guidance Adjusted EPS Walk

    FY24 Actuals to FY25 Guidance Adjusted EPS Walk $1.85 $(1.40) $(0.20) $(0.25) $(0.25) ~ $(0.20) ~ $(0.06) $3.04 $9.71 $9.20 FY24 Actuals Core Non-R&D Cost Reduction and Compensation and PY Clearpath Tax Rate Shares / Int / All FY25 Guidance Investments Margin Expansion Inflation Earnout Other Action

  14. Slide 14: Investor Day

    Investor Day NOV 20, 2024 | ANAHEIM, CA, USA PUBLIC | Copyright ©2024 Rockwell Automation, Inc. | 14

  15. Slide 15: Appendix

    Appendix PUBLIC | Copyright ©2024 Rockwell Automation, Inc. | 15

  16. Slide 16: FY24 Organic Industry Segment Performance

    FY24 Organic Industry Segment Performance % of FY24 FY24 FY24 Sales vs. FY23 vs. FY23  Automotive down ~25% ~25% Down ~15%  Semiconductor down mid teens  e-Commerce & Warehouse Automation* up ~10% DISCRETE  Food & Beverage down high teens ~ 35% Down ~15%  Life Sciences down low teens  Tire dow

  17. Slide 17: Industry Segmentation

    Industry Segmentation % of FY24 Sales ~25% ~35% ~40% of sales of sales of sales ~10% Automotive ~20% Food & Beverage ~15% Energy** ~5% Semiconductor ~5% Life Sciences ~5% Mining ~5% e-Commerce & Warehouse ~5% Household & Personal Care ~5% Metals Automation* ~5% Tire ~5% Chemicals ~5% General Industr

  18. Slide 18: FY23 to FY24 Adjusted EPS Walk

    FY23 to FY24 Adjusted EPS Walk ~ $(4.65) ~ $1.80 ~ $(0.25) ~ $0.25 ~ $(0.25) ~ $0.15 ~ $(0.21) ~ $0.75 $3.04 $12.12 $9.71 FY 2023 Core Benefits from Cost Incentive Acquisitions Clearpath Earnout FX Tax Rate Shares / Int / All FY 2024 Reductions Compensation Other Adjusted EPS excludes FY24 2nd half

  19. Slide 19: FY25 Organic Industry Segment Outlook

    FY25 Organic Industry Segment Outlook % of FY25 Assumptions at FY24 Sales vs. FY24 Guidance Midpoint  Automotive down low single digits ~25% Down low single digits  Semiconductor down low single digits  e-Commerce & Warehouse Automation up mid single digits DISCRETE  Food & Beverage down low sin

  20. Slide 20: Q4 FY24 Results: Summary

    Q4 FY24 Results: Summary (in millions, except per share amounts) Q4 2024 Q4 2023 Total sales $ 2,035.5 $ 2,562.9 Total segment operating earnings 409.1 571.7 Purchase accounting depreciation and amortization, and impairment (35.6) (184.6) Corporate and other (39.0) (39.1) Non-operating pension and p

  21. Slide 21: Reconciliation to Non-GAAP Measures: Free Cash Flow

    Reconciliation to Non-GAAP Measures Free Cash Flow (in millions) Q4 2024 FY 2024 Net Income $ 238.2 $ 947.3 Depreciation/Amortization 81.2 317.4 Retirement benefits expense 4.4 17.9 Receivables/Inventory/Payables 159.9 246.0 Compensation and benefits 42.2 (254.9) Pension contributions (9.6) (28.3) I

  22. Slide 22: Reconciliation to Non-GAAP Measures: Organic Sales by Region

    Reconciliation to Non-GAAP Measures Organic Sales (in millions, except percentages) Three Months Ended September 30, 2024 2023 Currency Effect of Reported Acquisition Growth Organic Reported Less: Effect of Changes in Organic Reported Sales Growth Growth (Decline) Growth Sales(a) Acquisitions(e) Cur

  23. Slide 23: Reconciliation to Non-GAAP Measures: Organic Sales by Segment

    Reconciliation to Non-GAAP Measures Organic Sales (in millions, except percentages) Three Months Ended September 30, 2024 2023 Effect of Sales Acquisition Currency Organic Less: Effect of Changes in Organic Growth Growth Growth Growth Reported Sales(a) Acquisitions(e) Currency(d) Sales(b) Reported S

  24. Slide 24: Reconciliation to Non-GAAP Measures: Segment Operating Margin

    Reconciliation to Non-GAAP Measures Segment Operating Margin (in millions, except percentages) Three Months Ended Twelve Months Ended September 30, 2024 September 30, 2023 September 30, 2024 September 30, 2023 Sales Intelligent Devices (a) $ 946.0 $ 1,170.7 $ 3,804.1 $ 4,098.2 Software & Control (b)

  25. Slide 25: Reconciliation to Non-GAAP Measures: Adjusted Income and EPS

    Reconciliation to Non-GAAP Measures Adjusted Income, Adjusted EPS, and Adjusted Effective Tax Rate (in millions, except per share amounts) Three Months Ended Twelve Months Ended September 30, 2024 September 30, 2023 September 30, 2024 September 30, 2023 Net Income attributable to Rockwell Automation

  26. Slide 26: Reconciliation to Non-GAAP Measures: Pension Cost

    Reconciliation to Non-GAAP Measures Non-operating pension and postretirement benefit cost Three Months Ended Twelve Months Ended September 30, September 30, September 30, September 30, (in millions) 2024 2023 2024 2023 Interest cost $ 37.3 $ 36.2 $ 149.1 $ 151.9 Expected return on plan assets (42.6)

  27. Slide 27: Reconciliation to Non-GAAP Measures: Return On Invested Capital

    Reconciliation to Non-GAAP Measures Return On Invested Capital ($ in millions) Twelve Months Ended September 30, 2024 2023 (a) Return Net income $ 947.3 $ 1,278.0 Interest expense 154.6 135.3 Income tax provision 151.8 330.5 Purchase accounting depreciation and amortization, and impairment 143.9 264

  28. Slide 28: Reconciliation to Non-GAAP Measures: Fiscal 2025 Guidance

    Reconciliation to Non-GAAP Measures Fiscal 2025 Guidance ($ in billions) Reported and Organic Sales Fiscal 2025 Guidance Organic sales growth (4)% to 2% Inorganic sales growth ~ —% Foreign currency impact ~ —% Reported sales growth (4)% to 2% Segment Operating Margin Total sales (a) $ ~ 8.2 Total se

  29. Slide 29: Reconciliation to Non-GAAP Measures: Free Cash Flow Conversion

    Reconciliation to Non-GAAP Measures Free Cash Flow Conversion ($ in billions) Fiscal 2025 Guidance Net income attributable to Rockwell Automation at the mid-point $ ~ 0.9 Non-operating pension and postretirement benefit credit, net of tax ~ — Purchase accounting depreciation and amortization, and im

  30. Slide 30: Performance Metric Definitions

    Performance Metric Definitions Total ARR Total ARR is a key metric that enables measurement of progress in growing our recurring revenue business. It represents the annual contract value of all active recurring revenue contracts at any point in time. Recurring revenue is defined as a revenue stream

  31. Slide 31: Thank you

    Thank you www.rockwellautomation.com www.rockwellautomation.com PUBLIC | Copyright ©2024 Rockwell Automation, Inc. | 31

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