Rockwell Automation, Inc. · NYSE:ROK
Rockwell Automation — Citigroup Global Industrial Manufacturing Conference 2006
22 slides from Rockwell Automation's conference presentation, Mar 8, 2006
Slide 1: Citigroup Global Industrial Manufacturing Conference
Citigroup Global Industrial Manufacturing Conference Keith Nosbusch Chairman & CEO March 8, 2006
Slide 2: Safe Harbor Statement
Safe Harbor Statement • This presentation contains statements (including certain projections and business trends) accompanied by such phrases as “believe”, “estimate”, “expect”, “anticipate”, “will”, “intend” and other similar expressions, that are “forward-looking statements” as defined in the Priv
Slide 3: Notice Regarding Financial Information
Notice Regarding Financial Information • This presentation contains non-GAAP financial information. • All information should be read in conjunction with the historical financial statements contained in Rockwell Automation’s Annual Report on Form 10-K, periodic reports on Form 10-Q and Form 8-K, and
Slide 4: Long-Term Growth and Performance Model
Long-Term Growth and Performance Model Sustained secular, organic growth - Expanded served market - Enhanced market access - Acquisitions as catalysts Revenue Generate 3-4% annual cost Deploy human and financial productivity & maintain operating resources to highest-ROIC leverage opportunities Reinv
Slide 5: Long-Term Growth and Performance Model: Efficient Growth Throughout the Cycle
Long-Term Growth and Performance Model Sustained secular, organic growth - Expanded served market - Enhanced market access - Acquisitions as catalysts Revenue Generate 3-4% annual cost Deploy human and financial productivity & maintain operating resources to highest-ROIC leverage opportunities Reinv
Slide 6: Integrated Architecture: Executing Aggressive Growth Plan
Integrated Architecture 25% (Millions) ’04-’06 CAGR Investments $600 • Multi-Discipline Automation • System Scalability and Simplicity • Enhanced Channel Competency • Increased Market Access – OEM Program Growth • Tailored Solutions for Key Verticals & $0 2004 2005 2006E Applications Revenue By Regi
Slide 7: Logix 2006 Growth
Logix 2006 Growth (Millions) $600 14% 7% 4% ~25% YOY Growth Goal $400 2005 Market Growth PLC Share Gain & 2006E and Price Cannibalization Growth Initiatives Multiple Sources of Growth…$1B Annually by 2009 Copyright © 2005 Rockwell Automation, Inc. All rights reserved. 7
Slide 8: Growth Driver: OEM/CompactLogix
Growth Driver: OEM/Compact-Logix Strategy (Millions) $500 OEM Revenue • Capitalize on scalability of Logix technology • Leverage existing position in Machine 50% CAGR OEM space • Accelerate adoption rate of proven $0 2004 2005 2006E Logix technology Compact Logix 2005 Highlights 2006 Opportunities •
Slide 9: Growth Driver: Safety
Growth Driver: Safety (Millions) Strategy $100 Safety Revenue 19% CAGR • Focus on increasing customer productivity • Global breadth of products and services 100%+ CAGR • Integrated Safety linked to architecture $0 provides significant value and 2004 2005 2006E differentiation GuardLogix 2005 Highlig
Slide 10: Growth Driver: Batch/Hybrid
Growth Driver: Batch/Hybrid (Millions) Batch/Hybrid Revenue Strategy $300 42% CAGR • Deliver a multi-discipline, scalable, information-enabled automation platform • Expand and deepen process and batch application expertise • Traditional DCS not designed for $0 2004 2005 2006E multiple control discip
Slide 11: Intelligent Motor Control
Intelligent Motor Control Investments (Millions) Motor Control Revenue 11% CAGR $1,600 • PowerFlex™ drives • Increased Medium Voltage drive capacity • Arc Safe technology to meet new 15% CAGR standards • Drive Systems geographic growth $0 programs 2004 2005 2006E Intelligent Motor Control Revenue by
Slide 12: Globalization: Asia
Globalization: Asia (Millions) 16% CAGR 2005 Successes $600 • Hired ~250 people in China • Major multi-national and Batch/Hybrid wins 27% CAGR paced 30% growth in consumer products • 20% growth in systems/solutions led by Automotive, Metals, and Tire industries $0 2004 2005 2006E • 50% growth in med
Slide 13: Globalization: EMEA
Globalization: EMEA 5% (Millions) ’04-’06 CAGR $900 2005 Results • Sluggish conditions in largest countries • Increased penetration and adoption of Integrated Architecture – Particularly at OEMs $0 • Expanded presence in Central and 2004 2005 2006E Eastern Europe By Industry 2006 Opportunities Autom
Slide 14: Verticals: Selling Model Evolution
Verticals: Selling Model Evolution Geographic Focus Global Accounts Vertical Accounts • Strong local support • In place since late 80’s • Industry leaders • Proven performance • Domain expertise – Higher global shares • Oriented to business – 1.5x the average needs growth rate • Global consistency I
Slide 15: Verticals: Performance
Verticals: Performance Targeted Extraction-based, Consumer- based Power Centric Industries Industries 50% 35% Other 15% Selected Verticals 20%+ Water/Wastewater Consumer Goods Mining, Agg., & Semiconductor Transportation Life Sciences Beverage Oil & Gas Cement Food -5% 2005 2006E 2005 2006E Investin
Slide 16: Long-Term Growth Model: Intellectual Capital
Long-Term Growth and Performance Model: Intellectual Capital Sustained secular, organic growth - Expanded served market - Enhanced market access - Acquisitions as catalysts Revenue Generate 3-4% annual cost Deploy human and financial productivity & maintain operating resources to highest-ROIC levera
Slide 17: Intellectual vs. Physical Assets
Intellectual vs. Physical Assets High Intellectual Capital Integrated Architecture Power Services & Control & Solutions Conversion Low High Physical Capital Low • Reducing physical assets in all • Concentrating spending and businesses investment in IP rich opportunities • Fewer owned properties • Mi
Slide 18: Long-Term Growth Model: Reinvestment
Long-Term Growth and Performance Model: Reinvestment Sustained secular, organic growth - Expanded served market - Enhanced market access - Acquisitions as catalysts Revenue Generate 3-4% annual cost Deploy human and financial productivity & maintain operating resources to highest-ROIC leverage oppor
Slide 19: Productivity Evolution
Productivity Evolution vity • Integrated Systems c ti u o d • Six Sigma: New Product Design t pr s • Proliferation of Six Sigma o - Office & Administration alc - Customer Facing, Salesforce Efficiency nu - Operations, Supply Chain, Logistics an • Globalize Business Model 4% • Global Shared Services
Slide 20: Long-Term Value Creation
Long-Term Growth and Performance Model Revenue Sustained secular, organic growth - Expanded served market - Enhanced market access - Acquisitions as catalysts Revenue a Multiple of Global GDP Growth Convert Net Income to Free Cash Flow Generate Superior ROIC Generate 3-4% annual cost Deploy human an
Slide 21: 2006 Guidance
2006 Guidance Issued November 2005 Current* Revenue Growth - Control Systems 8-10% 9-10% - Power Systems 4-6% 8-9% Total 7-9% ~9% Effective Tax Rate 33-34% ~34% Diluted EPS from Cont. Ops. $3.00-$3.10 $3.10-$3.20 Free Cash Flow** ~$280 million ~$300 million *As of January 25, 2006 **Net of $450M pre
Slide 22: Copyright © 2005 Rockwell Automation, Inc. All rights reserved.
Copyright © 2005 Rockwell Automation, Inc. All rights reserved. 22
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