Rockwell Automation, Inc. · NYSE:ROK

Rockwell Automation — Q4 2023 Earnings Presentation

31 slides from Rockwell Automation's earnings presentation, Nov 2, 2023

  1. Slide 1: Q4 Fiscal 2023 Earnings Presentation

    Q4 Fiscal 2023 Earnings Presentation November 2, 2023 PUBLIC PUBLIC | Copyright ©2023 Rockwell Automation, Inc. | 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 FY23 Results Highlights

    Q4 FY23 Results Highlights ▶ Reported sales up 20.5% YOY; organic sales increased 17.7% YOY ▶ Currency increased sales 1.4% ▶ Acquisitions contributed 1.4% ▶ Information Solutions & Connected Services (IS/CS) sales up 10% YOY ▶ Total Annual Recurring Revenue (ARR) up 16% YOY ▶ Segment margin of 22.3

  4. Slide 4: Q4 FY23 Organic Industry Segment Performance

    Q4 FY23 Organic Industry Segment Performance % of Q4 Q4 FY23 Q4 FY23 FY23 Sales vs. Q4 FY22 vs. Q4 FY22  Automotive up ~30% ~25% Up ~15%  Semiconductor up high single digits DISCRETE  e-Commerce & Warehouse Automation down mid single digits  Food & Beverage up low double digits ~ 40% Up low teen

  5. Slide 5: Q4 and Full Year FY23 Organic Sales Growth

    Q4 and Full Year FY23 Organic Sales Growth North EMEA % of FY America Q4: 23.4% Reported Q4: 12.2% FY: 27.9% Sales Asia FY: 10.8% Pacific Q4: 31.5% Latin America FY: 30.5% Q4: 24.1% FY: 13.6% Double-digit sales growth in all regions primarily driven by backlog composition PUBLIC | Copyright ©2023 Ro

  6. Slide 6: Full Year FY23 Results Highlights

    Full Year FY23 Results Highlights ▶ Total sales exceeded $9B; ahead of 2019 strategic framework growth rate expectations ▶ Reported sales up 16.7% YOY; organic sales up 16.9% YOY ▶ Currency decreased sales (1.4)% ▶ Acquisitions contributed 1.2% ▶ IS/CS sales up 9% YOY ▶ Total ARR up 16% YOY ▶ Segmen

  7. Slide 7: Why Clearpath for ROK

    Why Clearpath for ROK ▸ Leading portfolio of AMRs, fleet management and navigation software ▸ Market for industrial mobile robots is slated to grow ~30% per year over the next 5 years to $6.2B by 2027 ▸ Growth driven by industrial customers’ increasing need to address labor shortage, optimize cost,

  8. Slide 8: Full Year FY24 Outlook

    Full Year FY24 Outlook ▶ Orders expected to increase low single digits ▶ Total sales growth range of 0.5% - 6.5%; organic growth range of (2.0)% - 4.0% ▶ Currency to increase sales ~1.5 pts ▶ Acquisitions to contribute ~1.0 pt of growth ▶ Total ARR expected to grow ~15% YOY ▶ Expect segment margin o

  9. Slide 9: Q4 FY23 Key Financial Information

    Q4 FY23 Key Financial Information ($ in millions, except per share amounts) Q4 FY23 Q4 FY22 YOY B/(W) Organic Growth +17.7 % Inorganic Growth +1.4 % Sales $2,563 $2,126 Currency Translation +1.4 % Reported Growth +20.5 % Segment Operating Margin 22.3% 23.3% (100) bps Corporate and Other $39 $35 $(4)

  10. Slide 10: Q4 FY23 Segment Results

    Q4 FY23 Segment Results Sales ($ in millions; YOY growth %) Segment Operating Margin Q1 FY23 Segment Highlights Organic +17.8 % Lower segment margin driven by higher investment spend, unfavorable mix, and higher incentive Intelligent $1,171M Inorganic +2.8 % 21.3% compensation, partially offset by h

  11. Slide 11: Q4 FY22 to Q4 FY23 Adjusted EPS Walk

    Q4 FY22 to Q4 FY23 Adjusted EPS Walk PUBLIC | Copyright ©2023 Rockwell Automation, Inc. | 11

  12. Slide 12: Full Year FY23 Key Financial Information

    Full Year FY23 Key Financial Information ($ in millions, except per share amounts) FY23 FY22 YOY B/(W) Organic Growth +16.9 % Inorganic Growth +1.2 % Sales $9,058 $7,760 Currency Translation (1.4) % Reported Growth +16.7 % Segment Operating Margin 21.3% 19.9% 140 bps Corporate and Other $128 $105 $(

  13. Slide 13: Fiscal Year 2024 Guidance

    Fiscal Year 2024 Guidance Full Year Outlook Sales Midpoint ~ $9.4B Organic Growth Range (2.0)% - 4.0% Inorganic Growth ~ 1.0% Currency Translation ~ 1.5% Segment Operating Margin ~ 21.5% Adjusted Effective Tax Rate ~ 17.0% Adjusted EPS Range $12.00 - $13.50 Free Cash Flow Conversion ~ 100% Note: Gui

  14. Slide 14: FY23 Actuals to FY24 Guidance Adjusted EPS Walk

    FY23 Actuals to FY24 Guidance Adjusted EPS Walk Interest ~$0.10 Tax ~$(0.10) Shares ~$0.05 $3.04 Note: Guidance as of November 2, 2023; includes estimated impact of Clearpath Robotics and Verve Industrial Protection acquisitions in fiscal year 2024 PUBLIC | Copyright ©2023 Rockwell Automation, Inc.

  15. Slide 15: Investor Day Save the Date

    INVESTOR DAY SAVE THE DATE NOV 7-8, 2023 | BOSTON, MA USA PUBLIC PUBLIC | Copyright ©2023 Rockwell Automation, Inc. | 15

  16. Slide 16: Appendix

    Appendix PUBLIC | Copyright ©2023 Rockwell Automation, Inc. | 16

  17. Slide 17: FY23 Organic Industry Segment Performance

    FY23 Organic Industry Segment Performance % of FY23 FY23 FY23 Sales vs. FY22 vs. FY22  Automotive up strong double digits ~25% Up ~15%  Semiconductor up strong double digits DISCRETE  e-Commerce & Warehouse Automation down low teens  Food & Beverage up high teens ~ 40% Up ~15%  Life Sciences up

  18. Slide 18: Industry Segmentation

    Industry Segmentation % of FY23 Sales ~25% ~40% ~35% of sales of sales of sales ~10% Automotive ~20% Food & Beverage ~10% Oil & Gas ~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

  19. Slide 19: FY22 to FY23 Adjusted EPS Walk

    FY22 to FY23 Adjusted EPS Walk ~ ~ ~ ~ ~ ~ $3.04 $3.04 PUBLIC | Copyright ©2023 Rockwell Automation, Inc. | 19

  20. Slide 20: FY24 Organic Industry Segment Outlook

    FY24 Organic Industry Segment Outlook % of FY24 Assumptions at FY23 Sales vs. FY23 Guidance Midpoint  Automotive up low single digits ~25% Down low single digits  Semiconductor down low single digits DISCRETE  e-Commerce & Warehouse Automation up low single digits  Food & Beverage up low single

  21. Slide 21: Q4 FY23 Results: Summary

    Q4 FY23 Results: Summary (in millions, except per share amounts) Q4 2023 Q4 2022 Total sales $ 2,562.9 $ 2,126.3 Total segment operating earnings $ 571.7 $ 494.9 Purchase accounting depreciation and amortization, and impairment (184.6) (25.8) Corporate and other (39.1) (35.1) Non-operating pension a

  22. Slide 22: Reconciliation to Non-GAAP Measures: Free Cash Flow

    Reconciliation to Non-GAAP Measures Free Cash Flow (in millions) Q4 2023 FY 2023 Net Income $ 205.7 $ 1,278.0 Depreciation/Amortization 68.4 250.4 Retirement benefits expense 6.8 125.3 Receivables/Inventory/Payables 205.3 (594.4) Compensation and benefits 134.2 209.1 Pension contributions (7.4) (25.

  23. Slide 23: 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, 2023 2022 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

  24. Slide 24: 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, 2023 2022 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

  25. Slide 25: 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, 2023 September 30, 2022 September 30, 2023 September 30, 2022 Sales Intelligent Devices (a) $ 1,170.7 $ 957.4 $ 4,098.2 $ 3,544.6 Software & Control (b)

  26. Slide 26: 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, 2023 September 30, 2022 September 30, 2023 September 30, 2022 Net Income attributable to Rockwell Automation

  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, 2023 2022 (a) Return Net income $ 1,278.0 $ 919.1 Interest expense 135.3 123.2 Income tax provision 330.5 154.5 Purchase accounting depreciation and amortization, and impairment 264.4 103

  28. Slide 28: Fiscal 2024 Guidance Reconciliation

    Reconciliation to Non-GAAP Measures Fiscal 2024 Guidance (in billions, per share amounts) Organic Sales Fiscal 2024 Guidance Organic sales growth (2.0)% - 4.0% Inorganic sales growth ~1.0% Foreign currency impact ~1.5% Reported sales growth 0.5% - 6.5% Segment Operating Margin Total sales (a) $ ~ 9.

  29. Slide 29: Reconciliation: Free Cash Flow Conversion

    Reconciliation to Non-GAAP Measures Free Cash Flow Conversion ($ in billions) Fiscal 2024 Guidance Net income attributable to Rockwell Automation at the mid-point $ ~ 1.4 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 Organic ARR 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 defin

  31. Slide 31: Thank you

    Thank you www.rockwellautomation.com PUBLIC | Copyright ©2023 Rockwell Automation, Inc. | 31

Rockwell Automation — Q4 2023 Earnings Presentation on 6ix