Rockwell Automation, Inc. · NYSE:ROK

Rockwell Automation — Q1 2016 Earnings Presentation

15 slides from Rockwell Automation's earnings presentation, Jan 27, 2016

  1. Slide 1: Fiscal Year 2016 First Quarter Conference Call

    Fiscal Year 2016 First Quarter Conference Call January 27, 2016 Rev 5058-CO900A Copyright © 2016 Rockwell Automation, Inc. All rights reserved.

  2. 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

  3. Slide 3: Fiscal 2016 First Quarter Results and Full Year Outlook

    Fiscal 2016 First Quarter Results and Full Year Outlook Q1 Results ▪ Organic sales down 3.3% YOY in difficult market conditions ▪ Weakness in the U.S. and Asia Pacific ▪ Continued solid growth in EMEA and Latin America ▪ Segment operating margin of 20.7% despite 9.4% lower reported sales ▪ Adjusted

  4. Slide 4: Key Financial Information: First Quarter

    Key Financial Information: First Quarter (in millions, except per share amounts) Q1 2016 Q1 2015 YOY B/(W) Sales $ 1,427 $ 1,574 (9.4)% Segment Operating Margin 20.7% 22.0% (130) bps General Corporate - Net $ 18 $ 23 $ 5 Adjusted EPS $ 1.49 $ 1.64 (9.1)% Adjusted Effective Tax Rate 22.8% 26.0% 320 b

  5. Slide 5: Architecture & Software

    Architecture & Software Sales Segment Operating Margin ($ millions) $800 40% $708 $643 31.3% 30% 27.4% $600 20% $400 10% $200 0% Q1 Q1 2015 2016 2015 2016 YOY Sales % Change  Segment operating margin contracted Q1 2016 390 bps primarily due to lower sales and unfavorable currency effects Reported (

  6. Slide 6: Control Products & Solutions

    Control Products & Solutions Sales Segment Operating Margin ($ millions) $1,000 20% $867 $784 14.5% 15.3% $800 15% $600 10% $400 5% $200 0% Q1 Q1 2015 2016 2015 2016 YOY Sales % Change  Segment operating margin expanded Q1 2016 80 bps despite lower sales, primarily due to productivity Reported (9.6

  7. Slide 7: Regional Sales

    Regional Sales (in millions, except percentages) Q1 2016 Organic Region Sales % Change First Quarter * ▪ Broad-based decrease in the U.S., U.S. $ 787 (5.9)% oil and gas decline worse than expected Canada 79 (7.9)% ▪ Solid growth in EMEA, particularly in emerging countries EMEA 274 5.8% ▪ Continued g

  8. Slide 8: Revised Fiscal 2016 Guidance

    Revised Fiscal 2016 Guidance January November Guidance Guidance Sales Midpoint ~ $5.9B ~ $6.0B Organic Growth Range (5)% to (1)% (4)% to 0% Currency Translation ~ (4)% ~ (3)% Segment Operating Margin ~ 20.5% ~ 21% Adjusted Effective Tax Rate ~ 25% ~ 27% Adjusted EPS $5.70 - $6.20 $5.90 - $6.40 Free

  9. Slide 9: Supplemental Financial Information and Reconciliations to Non-GAAP Measures

    Appendix Supplemental Financial Information and Reconciliations to Non-GAAP Measures Copyright Copyright ©© 2014 2014 Rockwell Rockwell Automation, Automation, Inc. Inc. All All rights rights reserved. reserved.

  10. Slide 10: First Quarter Results: Summary

    First Quarter Results: Summary (in millions, except per share amounts) Q1 2016 Q1 2015 Total Sales $ 1,426.6 $ 1,574.4 Total Segment Operating Earnings $ 295.9 $ 346.8 Purchase Accounting Depreciation and Amortization (4.7) (5.4) General Corporate - Net (18.0) (22.8) Non-Operating Pension Costs (18.

  11. Slide 11: Free Cash Flow

    Free Cash Flow (in millions) Q1 2016 Net Income $ 185.5 Depreciation/Amortization 41.3 Retirement Benefits Expense 39.2 Receivables/Inventory/Payables (36.6) Compensation and Benefits (80.6) Pension Contributions (10.6) Income Taxes 11.3 Other 35.3 Cash Flow from Operations 184.8 Capital Expenditure

  12. Slide 12: Reconciliation to Non-GAAP Measures

    Reconciliation to Non-GAAP Measures Organic Sales (in millions, except percentages) Three Months Ended December 31, 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) (a

  13. Slide 13: 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, 2015 December 31, 2014 Sales Architecture & Software (a) $ 642.9 $ 707.8 Control Products & Solutions (b) 783.7 866.6 Total sales (c) $ 1,426.6 $ 1,574.4

  14. Slide 14: Reconciliation to Non-GAAP Measures

    Reconciliation to Non-GAAP Measures Adjusted Income and Adjusted EPS (in millions, except per share amounts) Three Months Ended Three Months Ended December 31, 2015 December 31, 2014 Income from continuing operations $ 185.5 $ 214.2 Non-operating pension costs 18.9 16.2 Tax effect of non-operating p

  15. Slide 15: Reconciliation to Non-GAAP Measures

    Reconciliation to Non-GAAP Measures Return On Invested Capital (in millions, except percentages) Twelve Months Ended December 31, 2015 2014 (a) Return Income from continuing operations $ 798.9 $ 842.9 Interest expense 66.2 59.3 Income tax provision 278.0 306.0 Purchase accounting depreciation and am

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