Rockwell Automation, Inc. · NYSE:ROK
Rockwell Automation — Q4 2015 Earnings Presentation
18 slides from Rockwell Automation's earnings presentation, Nov 10, 2015
Slide 1: Fiscal Year 2015 Fourth Quarter Conference Call
Fiscal Year 2015 Fourth Quarter Conference Call November 10, 2015 Copyright © 2015 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 liste
Slide 3: Fiscal 2015 Fourth Quarter and Full Year Results
Fiscal 2015 Fourth Quarter and Full Year Results Q4 Results ▪ Organic sales down 2.3% YOY - particularly weak September ▪ US down 2.8% ▪ Adjusted EPS of $1.57 including restructuring charges of $0.06 Full Year Results ▪ Organic sales up 1.1% YOY in difficult market conditions ▪ Segment operating mar
Slide 4: Key Financial Information: Fourth Quarter
Key Financial Information: Fourth Quarter (in millions, except per share amounts) Q4 2015 Q4 2014 YOY B/(W) Sales $ 1,608 $ 1,782 (9.8)% Segment Operating Margin 20.9 % 22.2% (130) bps General Corporate - Net $ 20 $ 22 $ 2 Adjusted EPS $ 1.57 $ 1.86 (15.6)% Adjusted Effective Tax Rate 28.2% 27.0% (1
Slide 5: Key Financial Information: Full Year
Key Financial Information: Full Year (in millions, except per share amounts) FY 2015 FY 2014 YOY B/(W) Sales $ 6,308 $ 6,624 (4.8)% Segment Operating Margin 21.6% 20.4 % 120 bps General Corporate - Net $ 86 $ 81 $ (5) Adjusted EPS $ 6.40 $ 6.17 3.7 % Adjusted Effective Tax Rate 27.0 % 27.5% 50 bps F
Slide 6: Architecture & Software
Architecture & Software Sales Segment Operating Margin ($ millions) $3,000 $2,845 $2,750 35% 31.1% $2,000 30% 29.5% 29.4% 27.3% $1,000 $747 $684 25% $0 20% Q4 FY Q4 FY 2014 2015 20142014 2015 2015 YOY Sales % Change Fourth quarter segment operating margin Q4 2015 FY 2015 contracted 380 bps YOY pri
Slide 7: Control Products & Solutions
Control Products & Solutions Sales Segment Operating Margin ($ millions) $4,000 $3,778 $3,558 20% 15.8% 16.2% 15.5% $3,000 15% 13.6% $2,000 10% $1,034 $924 $1,000 5% $0 0% Q4 FY Q4 FY 2014 2015 20142014 2015 2015 YOY Sales % Change Fourth quarter segment operating margin Q4 2015 FY 2015 expanded 4
Slide 8: Regional Sales
Regional Sales (in millions, except percentages) Q4 2015 FY 2015 Fourth Quarter * Organic Organic ▪ Broad-based decrease in the US Region Sales % Change Sales % Change ▪ Continued improvement U.S. $ 874 (2.8)% $ 3,447 0.9% in EMEA Canada 88 (9.6)% 367 (5.3)% ▪ China down high-teens Full Year * EMEA
Slide 9: Fiscal 2016 Guidance
Fiscal 2016 Guidance Full Year Outlook Sales Midpoint ~ $6.0B Organic Growth Range (4)% to 0% Currency Translation ~ (3)% Segment Operating Margin ~ 21% Adjusted Effective Tax Rate ~ 27% Adjusted EPS $5.90 - $6.40 Free Cash Flow as a % of Adjusted Income ~ 100% Note: As of November 10, 2015 Copyrigh
Slide 10: Fiscal 2015 to Fiscal 2016 Midpoint Adjusted EPS Walk
Fiscal 2015 to Fiscal 2016 Midpoint Adjusted EPS Walk $6.40 (0.09) (0.36) 0.20 $6.15 0.00 FY 2015 Core Currency Tax Rate* Share Count FY 2016 Actual Midpoint *Adjusted Effective Tax Rate Copyright © 2015 Rockwell Automation, Inc. All rights reserved. 10
Slide 11: Supplemental Financial Information and Reconciliation to Non-GAAP Measures
Appendix Supplemental Financial Information and Reconciliation to Non-GAAP Measures Copyright © 2014 Rockwell Automation, Inc. All rights reserved.
Slide 12: Fourth Quarter Results: Summary
Fourth Quarter Results: Summary (in millions, except per share amounts) Q4 2015 Q4 2014 Total Sales $ 1,607.5 $ 1,781.8 Total Segment Operating Earnings $ 335.8 $ 395.8 Purchase Accounting Depreciation and Amortization (5.2) (5.7) General Corporate - Net (19.5) (22.3) Non-Operating Pension Costs (15
Slide 13: Free Cash Flow
Free Cash Flow (in millions) Q4 2015 FY 2015 Net Income $ 201.3 $ 827.6 Depreciation/Amortization 41.6 162.5 Retirement Benefits Expense 34.9 141.3 Receivables/Inventory/Payables 19.1 88.2 Compensation and Benefits 24.2 (33.9) Pension Contributions (10.1) (41.0) Income Taxes 10.7 (2.0) Other 26.3 45
Slide 14: 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, 2015 2014 Sales Sales Organic Effect of Excluding Growth Growth Changes in Changes in Effect of Organic (Decline) (Decline) Sales(a) Currency Currency Acquisitions Sales(b) Sales(c) (
Slide 15: 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, 2015 2014 Sales Sales Organic Effect of Excluding Growth Growth Changes in Changes in Effect of Organic (Decline) (Decline) Sales(a) Currency Currency Acquisitions Sales(b) Sales(c) (
Slide 16: Reconciliation to Non-GAAP Measures: Segment Operating Margin
Reconciliation to Non-GAAP Measures Segment Operating Margin (in millions, except percentages) Three Months Ended Three Months Ended Twelve Months Ended Twelve Months Ended September 30, 2015 September 30, 2014 September 30, 2015 September 30, 2014 Sales Architecture & Software (a) $ 683.9 $ 747.4 $
Slide 17: Reconciliation to Non-GAAP Measures: Adjusted Income and Adjusted EPS
Reconciliation to Non-GAAP Measures Adjusted Income and Adjusted EPS (in millions, except per share amounts) Three Months Ended Three Months Ended Twelve Months Ended Twelve Months Ended September 30, 2015 September 30, 2014 September 30, 2015 September 30, 2014 Income from continuing operations $ 2
Slide 18: Reconciliation to Non-GAAP Measures: Return On Invested Capital
Reconciliation to Non-GAAP Measures Return On Invested Capital (in millions, except percentages) Twelve Months Ended September 30, 2015 2014 (a) Return Income from continuing operations $ 827.6 $ 826.8 Interest expense 63.7 59.3 Income tax provision 299.9 307.4 Purchase accounting depreciation and a