Rockwell Automation, Inc. · NYSE:ROK

Rockwell Automation — Q1 2023 Earnings Presentation

24 slides from Rockwell Automation's earnings presentation, Jan 26, 2023

  1. Slide 1: Q1 Fiscal 2023 Earnings Presentation

    Q1 Fiscal 2023 Earnings Presentation January 26, 2023 PUBLIC PUBLIC | Copyright ©2023 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: Q1 FY23 Results Highlights

    Q1 FY23 Results Highlights ▶ Demand remained strong; orders and backlog up sequentially ▶ Cancellations flat to prior quarter and remain in low single digits ▶ Reported sales up 6.7% YOY; Organic sales up 9.9% YOY ▶ Currency reduced sales (4.0)% ▶ Acquisitions contributed 0.8% ▶ Information Solution

  4. Slide 4: Q1 FY23 Organic Industry Segment Performance

    Q1 FY23 Organic Industry Segment Performance % of Q1 Q1 FY23 Q1 FY23 FY23 Sales vs. Q1 FY22 vs. Q1 FY22  Automotive up ~25% ~25% Up low teens  Semiconductor up ~20% DISCRETE  e-Commerce & Warehouse Automation down low teens  Food & Beverage up ~15% ~ 45% Up low teens  Life Sciences up mid singl

  5. Slide 5: Q1 FY23 Organic Sales Growth

    Q1 FY23 Organic Sales Growth EMEA North +13.3% America Asia % of +7.7% Pacific Sales Latin +16.0% America +6.3% Strong year-over-year growth in all regions PUBLIC | Copyright ©2023 Rockwell Automation, Inc. | 5

  6. Slide 6: Full Year Outlook Update

    Full Year Outlook Update ▶ Total sales growth range of 10% - 14%; Organic growth range of 11% - 15% ▶ Currency to reduce sales ~(2.0) pts ▶ Acquisitions to contribute ~1.0 pt of growth ▶ Information Solutions & Connected Services (IS/CS) sales to grow double digits ▶ Organic ARR expected to grow ~15

  7. 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 high teens ~25% Up low teens  Semiconductor up mid teens  e-Commerce & Warehouse Automation + DISCRETE up low teens  Food & Beverage up low teens ~40% Up lo

  8. Slide 8: Q1 FY23 Key Financial Information

    Q1 FY23 Key Financial Information ($ in millions, except per share amounts) Q1 FY23 Q1 FY22 YOY B/(W) Organic Growth +9.9 % Inorganic Growth +0.8 % Sales $1,981 $1,857 Currency Translation (4.0) % Reported Growth +6.7 % Segment Operating Margin 20.2% 19.1% 110 bps Corporate and Other $27 $29 $2 Adju

  9. Slide 9: Q1 FY23 Segment Results

    Q1 FY23 Segment Results Sales ($ in millions; YOY growth %) Segment Operating Margin Q1 FY23 Segment Highlights Organic +6.6 % Intelligent Inorganic +1.5 % 22.4% Decrease in segment margin from prior year $936M (130) bps YOY includes higher investment spend, and an Devices Currency (4.1) % unfavorab

  10. Slide 10: Q1 FY22 to Q1 FY23 Adjusted EPS Walk

    Q1 FY22 to Q1 FY23 Adjusted EPS Walk $3.03 PUBLIC | Copyright ©2023 Rockwell Automation, Inc. | 10

  11. Slide 11: Fiscal Year 2023 Guidance

    Fiscal Year 2023 Guidance Updated Guidance Prior Guidance Sales Midpoint ~ $8.7B ~ $8.5B Organic Growth Range 11% - 15% 9% - 13% Inorganic Growth ~ 1.0% ~ 1.0% Currency Translation ~ (2.0)% ~ (2.5)% Segment Operating Margin ~ 21% ~ 20.5% Adjusted Effective Tax Rate ~ 18% ~ 18% Adjusted EPS Range $10

  12. Slide 12: FY23 Updated vs Prior Guidance Adjusted EPS Walk

    FY23 Updated vs Prior Guidance Adjusted EPS Walk $3.04 $3.04 Note: Updated Guidance as of January 26, 2023; Prior Guidance as of November 2, 2022 PUBLIC | Copyright ©2023 Rockwell Automation, Inc. | 12

  13. Slide 13: Q1 Fiscal 2023 Earnings Presentation

    Q1 Fiscal 2023 Earnings Presentation January 26, 2023 PUBLIC PUBLIC | Copyright ©2023 Rockwell Automation, Inc. | 13 13

  14. Slide 14: Appendix

    Appendix PUBLIC | Copyright ©2023 Rockwell Automation, Inc. | 14

  15. Slide 15: 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

  16. Slide 16: Q1 FY23 Results: Summary

    Q1 FY23 Results: Summary ($ in millions, except per share amounts) Q1 2023 Q1 2022 Total Sales $ 1,981.0 $ 1,857.3 Total segment operating earnings $ 401.0 $ 355.1 Purchase accounting depreciation and amortization (26.0) (26.1) Corporate and other (27.3) (29.4) Non-operating pension and postretireme

  17. Slide 17: Free Cash Flow

    Free Cash Flow Three Months Ended ($ in millions) Q1 2023 Q1 2022 Net Income $ 378.7 $ 238.9 Depreciation/Amortization 57.8 58.9 Change in Fair Value of Investments (1) (140.6) (7.6) Retirement Benefits (Income) Expense (1.7) 16.2 Receivables/Inventory/Payables (237.7) (185.7) Compensation and Benef

  18. Slide 18: Reconciliation to Non-GAAP Measures: Organic Sales

    Reconciliation to Non-GAAP Measures Organic Sales ($ in millions) Three Months Ended December 31, 2022 2021 Effect of Effect of Reported Sales Less: Effect of Changes in Organic Sales Reported Less: Effect of Changes in Organic Growth Acquisitions Currency Growth Sales(a) Acquisitions(e) Currency(d)

  19. Slide 19: Reconciliation to Non-GAAP Measures: Segment Operating Margin

    Reconciliation to Non-GAAP Measures Segment Operating Margin ($ in millions) Three Months Ended December 31, 2022 December 31, 2021 Sales Intelligent Devices (a) $ 936.2 $ 900.3 Software & Control (b) 573.3 513.9 Lifecycle Services (c) 471.5 443.1 Total sales (d) $ 1,981.0 $ 1,857.3 Segment operatin

  20. Slide 20: Reconciliation to Non-GAAP Measures: Adjusted EPS

    Reconciliation to Non-GAAP Measures Adjusted Income, Adjusted EPS, and Adjusted Effective Tax Rate ($ in millions, except per share amounts) Three Months Ended December 31, 2022 December 31, 2021 Net income attributable to Rockwell Automation $ 384.0 $ 241.5 Non-operating pension and postretirement

  21. Slide 21: Reconciliation to Non-GAAP Measures: Return On Invested Capital

    Reconciliation to Non-GAAP Measures Return On Invested Capital ($ in millions) Twelve Months Ended December 31, 2022 2021 (a) Return Net income $ 1,058.9 $ 992.8 Interest expense 127.8 101.6 Income tax provision 200.1 115.2 Purchase accounting depreciation and amortization 103.8 69.5 Return $ 1,490.

  22. Slide 22: 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 10% - 14% Less: Inorganic sales growth ~ 1.0% Foreign currency impact ~ (2.0)% Organic sales growth 11% - 15% Segment Operating Margin Total sal

  23. Slide 23: Performance Metric Definition

    Performance Metric Definition Organic ARR Growth 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

  24. Slide 24: Thank you

    Thank you www.rockwellautomation.com PUBLIC | Copyright ©2023 Rockwell Automation, Inc. | 24 24

Rockwell Automation — Q1 2023 Earnings Presentation on 6ix