Rockwell Automation, Inc. · NYSE:ROK
Rockwell Automation — Q3 2023 Earnings Presentation
26 slides from Rockwell Automation's earnings presentation, Aug 1, 2023
Slide 1: Q3 Fiscal 2023 Earnings Presentation
Q3 Fiscal 2023 Earnings Presentation August 1, 2023 PUBLIC PUBLIC | Copyright ©2023 Rockwell Automation, Inc. | 1 1
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
Slide 3: Q3 FY23 Results Highlights
Q3 FY23 Results Highlights ▶ Reported sales up 13.7% YOY; Organic sales increased 13.2% YOY ▶ Currency reduced sales 0.7% ▶ Acquisitions contributed 1.2% ▶ Information Solutions & Connected Services (IS/CS) sales up ~10% YOY ▶ Total ARR up 17% YOY ▶ Segment margin of 21.1%, up 30 bps YOY ▶ Adjusted
Slide 4: Q3 FY23 Organic Industry Segment Performance
Q3 FY23 Organic Industry Segment Performance % of Q3 Q3 FY23 Q3 FY23 FY23 Sales vs. Q3 FY22 vs. Q3 FY22 Automotive up mid teens ~25% Up ~10% Semiconductor up high teens DISCRETE e-Commerce & Warehouse Automation down high teens Food & Beverage up mid teens ~ 45% Up ~15% Life Sciences up mi
Slide 5: Q3 FY23 Organic Sales Growth
Q3 FY23 Organic Sales Growth EMEA North +33.9% % of America Asia Reported +1.7% Pacific Sales Latin +44.4% America +6.7% Sales growth by region driven by composition of backlog PUBLIC | Copyright ©2023 Rockwell Automation, Inc. | 5
Slide 6: Full Year Outlook Update
Full Year Outlook Update ▶ Total sales growth range of 14% - 16%; Organic growth range of 14% - 16% ▶ Currency to reduce sales ~(1.0) pt ▶ Acquisitions to contribute ~1.0 pt of growth ▶ Expect orders of ~$8.5B - $9B and to exit the year with ~$4.5B - $5B in backlog ▶ Information Solutions & Connecte
Slide 7: FY23 Organic Industry Segment Outlook
FY23 Organic Industry Segment Outlook % of FY23 Assumptions at B/(W) vs. FY23 Sales vs. FY22 Guidance Midpoint Prior Guidance Automotive up strong double digits DISCRETE ~25% Up low double digits Semiconductor up high teens e-Commerce & Warehouse Automation down mid teens - Food & Beverage u
Slide 8: Q3 FY23 Key Financial Information
Q3 FY23 Key Financial Information ($ in millions, except per share amounts) Q3 FY23 Q3 FY22 YOY B/(W) Organic Growth +13.2 % Inorganic Growth +1.2 % Sales $2,239 $1,969 Currency Translation (0.7) % Reported Growth +13.7 % Segment Operating Margin 21.1% 20.8% +30 bps Corporate and Other $32 $16 $(16)
Slide 9: Q3 FY23 Segment Results
Q3 FY23 Segment Results Sales ($ in millions; YOY growth %) Segment Operating Margin Q1 FY23 Segment Highlights Organic +8.2 % Lower segment margin driven by higher investment Intelligent Inorganic +2.4 % 16.8% spend, unfavorable mix, and higher incentive $968M (290) bps YOY Devices Currency (0.4)%
Slide 10: Q3 FY22 to Q3 FY23 Adjusted EPS Walk
Q3 FY22 to Q3 FY23 Adjusted EPS Walk Note: Impacts from currency, interest, tax, shares, and acquisitions were immaterial PUBLIC | Copyright ©2023 Rockwell Automation, Inc. | 10
Slide 11: Total Order Trends
Total Order Trends Normalized Trend Line Actual Trend Forecasted Trend FY23 (Ending backlog of $4.5B to $5B*) AVERAGE DAILY ORDERS $3.04 Covid Larger orders due to: Order moderation Recovery • Increased automation investment as lead-times to normalized • Pent up demand improve trend • Longer lead ti
Slide 12: Fiscal Year 2023 Guidance
Fiscal Year 2023 Guidance Updated Guidance Prior Guidance Sales Midpoint ~ $8.9B ~ $8.9B Organic Growth Range 14% - 16% 13% - 17% Inorganic Growth ~ 1.0% ~ 1.0% Currency Translation ~ (1.0)% ~ (1.5)% Segment Operating Margin ~ 21.5% ~ 21.5% Adjusted Effective Tax Rate ~ 17.5% ~ 17.5% Adjusted EPS Ra
Slide 13: Q3 Fiscal 2023 Earnings Presentation
Q3 Fiscal 2023 Earnings Presentation August 1, 2023 PUBLIC PUBLIC | Copyright ©2023 Rockwell Automation, Inc. | 13 13
Slide 14: Appendix
Appendix PUBLIC | Copyright ©2023 Rockwell Automation, Inc. | 14
Slide 15: FY23 Updated vs. Prior Guidance Adjusted EPS Walk
FY23 Updated vs. Prior Guidance Adjusted EPS Walk ~$0.05 $3.04 $11.85 $11.90 $3.04 FY23 Prior Guidance FX FY23 Updated Guidance Midpoint Midpoint Note: Updated Guidance as of August 1, 2023; Prior Guidance as of April 27, 2023 PUBLIC | Copyright ©2023 Rockwell Automation, Inc. | 15
Slide 16: Industry Segmentation
Industry Segmentation % of FY22 Sales ~25% ~40% ~35% of sales of sales of sales ~10% Automotive ~20% Food & Beverage ~10% Oil & Gas ~5% Semiconductor ~5% Life Sciences ~5% Mining ~5% e-Commerce & Warehouse ~5% Household & Personal Care ~5% Metals Automation ~5% Tire ~5% Chemicals ~5% General Industr
Slide 17: Q3 FY23 Results: Summary
Q3 FY23 Results: Summary Three Months Ended ($ in millions, except per share amounts) Q3 2023 Q3 2022 Total Sales $ 2,238.7 $ 1,968.7 Total segment operating earnings $ 473.0 $ 409.2 Purchase accounting depreciation and amortization (27.2) (25.9) Corporate and other (32.3) (15.6) Non-operating pensi
Slide 18: Reconciliation to Non-GAAP Measures: Free Cash Flow
Reconciliation to Non-GAAP Measures Free Cash Flow Three Months Ended Nine Months Ended ($ in millions) Q3 2023 Q3 2022 Q3 2023 Q3 2022 Net Income $ 398.7 $ 294.8 $ 1,072.3 $ 583.1 Depreciation/Amortization 62.1 56.8 182.0 178.2 Change in Fair Value of Investments (1) (85.7) 5.2 (289.3) 138.3 Retire
Slide 19: Reconciliation to Non-GAAP Measures: Organic Sales
Reconciliation to Non-GAAP Measures Organic Sales ($ in millions) Three Months Ended June 30, 2023 2022 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) Curren
Slide 20: Reconciliation to Non-GAAP Measures: Segment Operating Margin
Reconciliation to Non-GAAP Measures Segment Operating Margin ($ in millions) Three Months Ended June 30, 2023 June 30, 2022 Sales Intelligent Devices (a) $ 968.1 $ 878.3 Software & Control (b) 750.6 606.9 Lifecycle Services (c) 520.0 483.5 Total sales (d) $ 2,238.7 $ 1,968.7 Segment operating earnin
Slide 21: 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 June 30, 2023 June 30, 2022 Net income attributable to Rockwell Automation $ 400.2 $ 297.9 Non-operating pension and postretirement benefit
Slide 22: Reconciliation to Non-GAAP Measures: Return On Invested Capital
Reconciliation to Non-GAAP Measures Return On Invested Capital ($ in millions) Twelve Months Ended June 30, 2023 2022 (a) Return Net income $ 1,408.3 $ 657.7 Interest expense 137.1 116.8 Income tax provision 288.6 14.4 Purchase accounting depreciation and amortization 105.6 95.5 Return $ 1,939.6 $ 8
Slide 23: Reconciliation to Non-GAAP Measures: Fiscal 2023 Guidance
Reconciliation to Non-GAAP Measures Fiscal 2023 Guidance ($ in billions, except per share amounts) Organic Sales Fiscal 2023 Guidance Reported sales growth 14% - 16% Less: Inorganic sales growth ~ 1.0% Foreign currency impact ~ (1.0)% Organic sales growth 14% - 16% Segment Operating Margin Total sal
Slide 24: Reconciliation to Non-GAAP Measures: Free Cash Flow Conversion
Reconciliation to Non-GAAP Measures Free Cash Flow Conversion ($ in billions) Fiscal 2023 Guidance Net income attributable to Rockwell Automation at the mid-point $ ~ 1.5 Non-operating pension and postretirement benefit cost, net of tax (1) ~ 0.1 Purchase accounting depreciation and amortization att
Slide 25: Performance Metric Definition
Performance Metric Definition 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 define
Slide 26: Thank you
Thank you www.rockwellautomation.com PUBLIC | Copyright ©2023 Rockwell Automation, Inc. | 26