Rockwell Automation, Inc. · NYSE:ROK

Rockwell Automation — Q2 2024 Earnings Presentation

25 slides from Rockwell Automation's earnings presentation, May 7, 2024

  1. Slide 1: Q2 Fiscal 2024 Earnings Presentation

    Q2 Fiscal 2024 Earnings Presentation May 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: Q2 FY24 Results Highlights

    Q2 FY24 Results Highlights ▶ Orders up low double digits sequentially; first-half orders of $3.6B ▶ Reported sales down (6.6)% YOY; organic sales decreased (8.1)% YOY ▶ Currency increased sales 0.1% ▶ Acquisitions contributed 1.4% ▶ Continued strong performance in Clearpath and Verve acquisitions ▶

  4. Slide 4: Q2 FY24 Organic Industry Segment Performance

    Q2 FY24 Organic Industry Segment Performance % of Q2 Q2 FY24 Q2 FY24 FY24 Sales vs. Q2 FY23 vs. Q2 FY23  Automotive down ~20% ~25% Down mid teens  Semiconductor down ~25% DISCRETE  e-Commerce & Warehouse Automation down high teens  Food & Beverage down ~20% ~ 40% Down mid teens  Life Sciences d

  5. Slide 5: Q2 FY24 Year-Over-Year Organic Sales Growth

    Q2 FY24 Year-Over-Year Organic Sales Growth EMEA North (19.0)% % of America Asia Reported (3.6)% Pacific Sales (17.0)% Latin America 8.0% Americas continue to be our strongest region in FY24 PUBLIC | Copyright ©2024 Rockwell Automation, Inc. | 5

  6. Slide 6: Full Year Outlook Update

    Full Year Outlook Update ▶ Orders of ~$8B expected to be down low single digits YOY ▶ Total sales growth range of (6.0)% - (4.0)%; organic growth range of (8.0)% - (6.0)% ▶ Currency to increase sales ~0.5 pt ▶ Acquisitions to contribute ~1.5 pts of growth ▶ Total ARR still expected to grow ~15% YOY

  7. Slide 7: Q2 FY24 Key Financial Information

    Q2 FY24 Key Financial Information ($ in millions, except per share amounts) Q2 FY24 Q2 FY23 YOY B/(W) Organic Growth (8.1) % Inorganic Growth +1.4 % Sales $2,126 $2,275 Currency Translation +0.1 % Reported Growth (6.6) % Segment Operating Margin 19.0% 21.3% (230) bps Corporate and Other $28 $29 $1 A

  8. Slide 8: Q2 FY24 Segment Results

    Q2 FY24 Segment Results Sales ($ in millions; YOY growth %) Segment Operating Margin Q1 FY23 Segment Highlights Organic (7.4) % Intelligent Inorganic +2.3 % 16.5% Lower segment margin YOY driven by lower sales $974M volume and unfavorable mix, partially offset by lower Devices Currency +0.2 % (370)

  9. Slide 9: Q2 FY23 to Q2 FY24 Adjusted EPS Walk

    Q2 FY23 to Q2 FY24 Adjusted EPS Walk PUBLIC | Copyright ©2024 Rockwell Automation, Inc. | 9

  10. Slide 10: Fiscal Year 2024 Guidance

    Fiscal Year 2024 Guidance Updated Guidance Prior Guidance Sales Midpoint ~ $8.6B ~ $9.4B Organic Growth Range (8.0)% - (6.0)% (2.0)% - 4.0% Inorganic Growth ~ 1.5% ~ 1.5% Currency Translation ~ 0.5% ~ 1.0% Segment Operating Margin ~ 20.0% ~ 21.5% Adjusted Effective Tax Rate ~ 17.0% ~ 17.0% Adjusted

  11. Slide 11: FY24 Updated vs Prior Guidance Adjusted EPS Walk

    FY24 Updated vs Prior Guidance Adjusted EPS Walk Adjusted EPS excludes anticipated 2nd half restructuring charges Updated Guidance as of May 7, 2024; Prior Guidance as of January 31, 2024 PUBLIC | Copyright ©2024 Rockwell Automation, Inc. | 11

  12. Slide 12: Q2 Fiscal 2024 Earnings Presentation

    Q2 Fiscal 2024 Earnings Presentation May 7, 2024 PUBLIC PUBLIC | Copyright ©2024 Rockwell Automation, Inc. | 12

  13. Slide 13: Appendix

    Appendix PUBLIC | Copyright ©2024 Rockwell Automation, Inc. | 13

  14. Slide 14: FY24 Organic Industry Segment Outlook

    FY24 Organic Industry Segment Outlook % of FY24 Assumptions at B/(W) vs. FY24 Sales vs. FY23 Guidance Midpoint Prior Guidance  Automotive down mid teens DISCRETE ~25% Down ~10%  Semiconductor down mid teens  e-Commerce & Warehouse Automation up low single digits - -  Food & Beverage down mid tee

  15. Slide 15: 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

  16. Slide 16: Q2 FY24 Results: Summary

    Q2 FY24 Results: Summary Three Months Ended ($ in millions, except per share amounts) Q2 2024 Q2 2023 Total Sales $ 2,126.0 $ 2,275.4 Total segment operating earnings $ 404.2 $ 484.1 Purchase accounting depreciation and amortization (37.1) (26.6) Corporate and other (28.2) (29.2) Non-operating pensi

  17. Slide 17: Reconciliation to Non-GAAP Measures

    Reconciliation to Non-GAAP Measures Free Cash Flow Three Months Ended Six Month Ended ($ in millions) Q2 2024 Q2 2023 Q2 2024 Q2 2023 Net Income $ 265.3 $ 294.9 $ 478.0 $ 673.6 Depreciation/Amortization 80.8 62.1 157.7 119.9 Change in Fair Value of Investments (1) (2.8) (63.0) (5.9) (203.6) Retireme

  18. Slide 18: Reconciliation to Non-GAAP Measures

    Reconciliation to Non-GAAP Measures Organic Sales ($ in millions) Three Months Ended March 31, 2024 2023 Effect of Reported Sales Less: Effect of Effect of Changes Organic Sales Reported Less: Effect of Changes in Organic Reported Growth Acquisitions in Currency Growth Sales(a) Acquisitions(e) Curre

  19. Slide 19: Reconciliation to Non-GAAP Measures

    Reconciliation to Non-GAAP Measures Segment Operating Margin ($ in millions) Three Months Ended March 31, 2024 March 31, 2023 Sales Intelligent Devices (a) $ 973.5 $ 1,023.2 Software & Control (b) 570.0 741.1 Lifecycle Services (c) 582.5 511.1 Total sales (d) $ 2,126.0 $ 2,275.4 Segment operating ea

  20. Slide 20: 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 March 31, 2024 March 31, 2023 Net income attributable to Rockwell Automation $ 266.2 $ 300.3 Non-operating pension and postretirement benefi

  21. Slide 21: Reconciliation to Non-GAAP Measures

    Reconciliation to Non-GAAP Measures Return On Invested Capital ($ in millions) Twelve Months Ended March 31, 2024 2023 (a) Return Net income $ 1,082.4 $ 1,304.4 Interest expense 138.0 133.5 Income tax provision 276.8 264.9 Purchase accounting depreciation and amortization 284.5 104.3 Return $ 1,781.

  22. Slide 22: Reconciliation to Non-GAAP Measures

    Reconciliation to Non-GAAP Measures Fiscal 2024 Guidance ($ in billions, except per share amounts) Organic Sales Fiscal 2024 Guidance Organic sales growth (8.0)% - (6.0)% Inorganic sales growth ~ 1.5% Foreign currency impact ~ 0.5% Reported sales growth (6.0)% - (4.0)% Segment Operating Margin Total

  23. Slide 23: Reconciliation to Non-GAAP Measures

    Reconciliation to Non-GAAP Measures Free Cash Flow Conversion ($ in billions) Fiscal 2024 Guidance Net income attributable to Rockwell Automation at the mid-point $ ~ 1.1 Non-operating pension and postretirement benefit cost, net of tax ~ — Purchase accounting depreciation and amortization attributa

  24. Slide 24: Performance Metric Definition

    Performance Metric Definition Total 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 defined

  25. Slide 25: Thank you

    Thank you www.rockwellautomation.com PUBLIC | Copyright ©2024 Rockwell Automation, Inc. | 25

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