Rockwell Automation, Inc. · NYSE:ROK
Rockwell Automation — Q3 2022 Earnings Presentation
25 slides from Rockwell Automation's earnings presentation, Jul 27, 2022
Slide 1: Q3 Fiscal 2022 Earnings Presentation
Q3 Fiscal 2022 Earnings Presentation July 27, 2022 PUBLIC 1
Slide 2: Safe Harbor Statement
Safe Harbor Statement THIS PRESENTATION INCLUDES GUIDANCE AND OTHER 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, MANY OF WHICH
Slide 3: Q3 FY22 Results Highlights
Q3 FY22 Results Highlights ▪ Total orders up 17% YOY, with strong demand across all business segments ▪ Reported sales up 6.5% YOY; Organic sales up 7.1% YOY • Acquisitions contributed 2.5% • Currency reduced sales (3.1)% ▪ Information Solutions & Connected Services (IS/CS) orders and sales up stron
Slide 4: Q3 FY22 Organic Industry Segment Performance
Q3 FY22 Organic Industry Segment Performance % of Q3 FY22 Q3 FY22 Sales vs. Q3 FY21 Q3 FY22 vs. Q3 FY21 Discrete Automotive up mid single digits ~ 25% Up low single digits Semiconductor down low single digits e-Commerce down mid teens Hybrid Food & Beverage up mid single digits ~ 45% Up mid
Slide 5: Q3 FY22 Organic Sales Growth
Q3 FY22 Organic Sales Growth NORTH AMERICA EMEA +3.2% +10.9% Q3 HIGHLIGHTS * • Current quarter results reflect component ASIA PACIFIC availability; balanced growth year-to-date across all regions (5.8)% • Asia Pacific most significantly impacted by shutdowns in China • Expecting strong sales growth
Slide 6: Orders, Sales & Backlog
Orders, Sales & Backlog Robust orders and backlog are the foundation for strong sales in FY2022 and beyond Cancellation % ~1% ~1% ~1% ~2% ~1% <1% ~2% BACKLOG ORDERS* SALES PUBLIC | Copyright ©2022 Rockwell Automation, Inc. | 6 *Net of Cancellations
Slide 7: FY22 Full Year Outlook Highlights
FY22 Full Year Outlook Highlights ▪ Orders projected to exceed $10B ▪ Total sales growth range of 10.5 - 12.5%; Organic growth range of 10 - 12% • Acquisitions to contribute ~2.5 pts of growth • Currency to reduce sales ~(2.0) pts ▪ IS/CS expected to grow double digits; sales expected to reach $800M
Slide 8: FY22 Organic Industry Segment Outlook
FY22 Organic Industry Segment Outlook % of FY22 B/(W) vs. May FY22 Sales vs. FY21 Assumptions at Guidance Midpoint Guidance Discrete Automotive up high single digits ~ 25% Up high Semiconductor up ~10% single digits e-Commerce up mid single digits Hybrid Food & Beverage up ~10% ~ 45% Up ~1
Slide 9: Q3 FY22 Key Financial Information
Q3 FY22 Key Financial Information ($ in millions, except per share amounts) Q3 FY22 Q3 FY21 YOY B/(W) Organic Growth +7.1 % Inorganic Growth +2.5 % SALES $1,969 $1,848 Currency Translation (3.1) % Reported Growth +6.5 % SEGMENT OPERATING MARGIN 20.8% 19.9% 90 bps CORPORATE AND OTHER $16 $29 $13 ADJU
Slide 10: Q3 FY22 Segment Results
Q3 FY22 Segment Results SALES SEGMENT OPERATING SEGMENT ($ in millions; YOY growth %) MARGIN HIGHLIGHTS Organic +2.7 % Intelligent ▪ Lower segment margin YOY driven by higher investment Devices $878M Inorganic —% 19.7% spend Currency (3.2)% (220) bps YOY ▪ Sequential margin growth driven by positive
Slide 11: Q3 FY21 to Q3 FY22 Adjusted EPS Walk
Q3 FY21 to Q3 FY22 Adjusted EPS Walk Volume ~0.25 Price/Cost ~0.05 Investment Spend ~(0.35) Productivity ~0.10 Corporate Items ~0.10 PUBLIC | Copyright ©2022 Rockwell Automation, Inc. | 11
Slide 12: Fiscal Year 22 Guidance
Fiscal Year 22 Guidance July May Guidance Guidance Sales Range $7.7B - $7.9B $7.8B - $8.0B Organic Growth Range 10% - 12% 10% - 14% Inorganic Growth ~ 2.5% ~ 2.5% Currency Translation ~ (2.0)% ~ (1.5)% Segment Operating Margin ~ 20.0% ~ 20.0% Adjusted Effective Tax Rate ~ 16.5% ~ 17% Adjusted EPS Ra
Slide 13: FY22 May to July Guidance Midpoint Adjusted EPS Walk
FY22 May to July Guidance Midpoint Adjusted EPS Walk PUBLIC | Copyright ©2022 Rockwell Automation, Inc. | 13
Slide 14: Q3 Fiscal 2022 Earnings Presentation
Q3 Fiscal 2022 Earnings Presentation July 27, 2022 PUBLIC 14
Slide 15: Appendix
APPENDIX 15
Slide 16: Industry Segmentation
Industry Segmentation % of FY21 Sales Discrete Hybrid Process ~10% Automotive ~20% Food & Beverage ~10% Oil & Gas ~5% Semiconductor ~5% Life Sciences ~5% Mining ~5% Warehousing & E-commerce ~5% Household & Personal Care ~5% Metals ~5% General Industries ~5% Tire ~5% Chemicals • Printing & Publishing
Slide 17: Q3 FY22 Results: Summary
Q3 FY22 Results: Summary ($ in millions, except per share amounts) Q3 2022 Q3 2021 Total Sales $ 1,968.7 $ 1,848.2 Total segment operating earnings $ 409.2 $ 368.7 Purchase accounting depreciation and amortization (25.9) (12.9) Corporate and other (15.6) (29.2) Non-operating pension and postretireme
Slide 18: Free Cash Flow
Free Cash Flow Three Months Ended Nine Months Ended ($ in millions) Q3 2022 Q3 2021 Q3 2022 Q3 2021 Net Income $ 295 $ 269 $ 583 $ 1,270 Depreciation/Amortization 57 46 178 136 Change in fair value of investments1 5 (43) 138 (625) Retirement Benefits Expense 4 58 62 118 Receivables/Inventory/Payable
Slide 19: Reconciliation to Non-GAAP Measures
Reconciliation to Non-GAAP Measures Organic Sales ($ in millions) Three Months Ended June 30, 2022 2021 Effect of Effect of Reported Sales Less: Effect of Changes in Organic Sales Reported Less: Effect of Changes in Organic Growth Acquisitions Currency Growth Sales(a) Acquisitions(e) Currency(d) Sal
Slide 20: Reconciliation to Non-GAAP Measures
Reconciliation to Non-GAAP Measures Segment Operating Margin ($ in millions) Three Months Ended June 30, 2022 June 30, 2021 Sales Intelligent Devices (a) $ 878.3 $ 882.9 Software & Control (b) 606.9 509.6 Lifecycle Services (c) 483.5 455.7 Total sales (d) $ 1,968.7 $ 1,848.2 Segment operating earnin
Slide 21: Reconciliation to Non-GAAP Measures
Reconciliation to Non-GAAP Measures Adjusted Income, Adjusted EPS, and Adjusted Effective Tax Rate ($ in millions, except per share amounts) Three Months Ended June 30, 2022 June 30, 2021 Net Income attributable to Rockwell Automation $ 297.9 $ 271.3 Non-operating pension and postretirement benefit
Slide 22: Reconciliation to Non-GAAP Measures
Reconciliation to Non-GAAP Measures Return On Invested Capital ($ in millions) Twelve Months Ended June 30, 2022 2021 (a) Return Net income $ 657.7 $ 1,533.4 Interest expense 116.8 94.5 Income tax provision 14.4 288.1 Purchase accounting depreciation and amortization 95.5 49.0 Return 884.4 1,965.0 (
Slide 23: Reconciliation to Non-GAAP Measures
Reconciliation to Non-GAAP Measures Fiscal 2022 Guidance ($ in billions, except per share amounts) Organic Sales Fiscal 2022 Guidance Organic sales growth 10% - 12% Inorganic sales growth ~ 2.5% Foreign currency impact ~ (2.0)% Reported sales growth 10.5% - 12.5% Segment Operating Margin Total sales
Slide 24: Performance Metric Definition
Performance Metric Definition Organic ARR Growth Annual recurring revenue (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
Slide 25: Thank you
Thank you www.rockwellautomation.com 25