Rockwell Automation, Inc. · NYSE:ROK
Rockwell Automation — Q1 2018 Earnings Presentation
17 slides from Rockwell Automation's earnings presentation, Jan 24, 2018
Slide 1: Rockwell Automation Fiscal Year 2018 First Quarter Conference Call
Rockwell Automation Fiscal Year 2018 First Quarter Conference Call January 24, 2018 Copyright © 2018 Rockwell Automation, Inc. All rights reserved.
Slide 2: Safe Harbor Statement
SAFE HARBOR STATEMENT 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
Slide 3: Fiscal 2018 First Quarter Results and Full Year Outlook
Fiscal 2018 First Quarter Results and Full Year Outlook Q1 Results ▪ Organic sales up 5.3% YOY – Broad-based growth across all regions – Growth led by heavy industries, including oil and gas; transportation weaker than expected – Logix growth of 6%; Process growth of 12% ▪ Strong segment operating m
Slide 4: Capital Deployment Post Tax Reform – No Change
Capital Deployment Post Tax Reform – No Change ORGANIC INVESTMENTS Operating Cash Flow Capital Expenditures Free Cash Flow INORGANIC Acquisitions INVESTMENTS EXCESS CASH Dividends RETURNED TO SHAREOWNERS Share Repurchases Strong balance sheet provides flexibility Copyright © 2018 Rockwell Automation
Slide 5: Key Financial Information: First Quarter
Key Financial Information: First Quarter (in millions, except per share amounts) Q1 2018 Q1 2017 YOY B/(W) Sales $ 1,587 $ 1,490 6.5 % Segment Operating Earnings $ 356 $ 317 12.3 % Segment Operating Margin 22.4 % 21.2 % 120 bps General Corporate - Net $ 16 $ 15 $ (1) Adjusted EPS $ 1.96 $ 1.75 12.0
Slide 6: Architecture & Software
Architecture & Software Sales Segment Operating Margin ($ millions) $800 $747 40% $696 30.0% 30.1% 30% $600 20% $400 10% $200 0% Q1 Q1 2017 2018 2017 2018 YOY Sales % Change ▪ Segment operating margin expanded Q1 2018 10 bps in Q1, primarily due to higher Organic 4.6% sales, partially offset by high
Slide 7: Control Products & Solutions
Control Products & Solutions Sales Segment Operating Margin ($ millions) $1,000 20% $840 15.6% $794 $800 15% 13.6% $600 10% $400 5% $200 0% Q1 Q1 2017 2018 2017 2018 YOY Sales % Change ▪ Segment operating margin expanded Q1 2018 200 bps in Q1, primarily due to higher Organic 5.9% sales FX 2.3% Dives
Slide 8: Regional Sales
Regional Sales (in millions, except percentages) Q1 2018 Organic Region Sales % Change First Quarter * U.S. $ 852 5.4% ▪ U.S. and Canada growth led by heavy industries; oil and gas up double digits Canada 92 11.5% ▪ Continued growth with OEM machine builders in EMEA EMEA 307 4.9% ▪ In Asia Pacific,
Slide 9: Revised Fiscal 2018 Guidance
Revised Fiscal 2018 Guidance January November Guidance Guidance Sales ~ $6.7B ~ $6.7B Organic Growth Range 3.5% to 6.5% 3.5% to 6.5% Currency Translation ~ 2.0% ~ 2.5% Divestiture ~ (1)% ~ (1)% Segment Operating Margin ~ 21.5% ~ 21.5% Adjusted Effective Tax Rate ~ 21% ~ 24.5% Adjusted EPS $7.60 - $7
Slide 10: Appendix
Appendix Supplemental Financial Information and Reconciliations to Non-GAAP Measures Copyright © 2018 Rockwell Automation, Inc. All rights reserved.
Slide 11: First Quarter Results: Summary
First Quarter Results: Summary (in millions, except per share amounts) Q1 2018 Q1 2017 Total Sales $ 1,586.6 $ 1,490.3 Total Segment Operating Earnings $ 355.5 $ 316.6 Purchase Accounting Depreciation and Amortization (4.4) (5.6) General Corporate - Net (16.2) (14.9) Non-Operating Pension Costs (5.9
Slide 12: Free Cash Flow
Free Cash Flow (in millions) Q1 2018 Net Income $ (236.4) Depreciation/Amortization 39.6 Retirement Benefits Expense 28.3 Receivables/Inventory/Payables (74.4) Compensation and Benefits (77.0) Pension Contributions (11.6) Income Taxes 508.0 Other 36.2 Cash Flow from Operations 212.7 Capital Expendit
Slide 13: Reconciliation to Non-GAAP Measures
Reconciliation to Non-GAAP Measures Organic Sales (in millions, except percentages) Three Months Ended December 31, 2017 2016 Sales Sales Organic Effect of Excluding Sales Growth Growth Changes in Changes in Effect of Organic Effect of Excluding (Decline) (Decline) Sales(a) Currency Currency Acquisi
Slide 14: Reconciliation to Non-GAAP Measures
Reconciliation to Non-GAAP Measures Segment Operating Margin (in millions, except percentages) Three Months Ended Three Months Ended December 31, 2017 December 31, 2016 Sales Architecture & Software (a) $ 746.9 $ 696.4 Control Products & Solutions (b) 839.7 793.9 Total sales (c) $ 1,586.6 $ 1,490.3
Slide 15: 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 Three Months Ended December 31, 2017 December 31, 2016 Income from continuing operations $ (236.4) $ 214.7 Non-operating pension costs 5.9 19.8
Slide 16: Reconciliation to Non-GAAP Measures
Reconciliation to Non-GAAP Measures Return On Invested Capital (in millions, except percentages) Twelve Months Ended December 31, 2017 2016 (a) Return Income from continuing operations $ 374.6 $ 758.9 Interest expense 77.5 72.6 Income tax provision 703.0 204.9 Purchase accounting depreciation and am
Slide 17: Reconciliation to Non-GAAP Measures
Reconciliation to Non-GAAP Measures Fiscal 2018 Guidance (in billions, except percentages and per share amounts) Organic Sales January Guidance November Guidance Organic sales growth 3.5% to 6.5% 3.5% to 6.5% Foreign currency impact ~ 2% ~ 2.5% Divestiture impact ~ (1)% ~ (1)% Reported sales growth