Rockwell Automation, Inc. · NYSE:ROK
Rockwell Automation — Q1 2024 Earnings Presentation
23 slides from Rockwell Automation's earnings presentation, Jan 31, 2024
Slide 1: Q1 Fiscal 2024 Earnings Presentation
Q1 Fiscal 2024 Earnings Presentation January 31, 2024 PUBLIC PUBLIC | Copyright ©2024 Rockwell Automation, Inc. | 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: Q1 FY24 Results Highlights
Q1 FY24 Results Highlights ▶ Reported sales up 3.6% YOY; organic sales increased 1.0% YOY ▶ Currency increased sales 1.2% ▶ Acquisitions contributed 1.4% ▶ Clearpath, Cubic, and Verve acquisitions performed well in the quarter ▶ Total Annual Recurring Revenue (ARR) up 20% YOY ▶ Segment margin of 17.
Slide 4: Q1 FY24 Organic Industry Segment Performance
Q1 FY24 Organic Industry Segment Performance % of Q1 Q1 FY24 Q1 FY24 FY24 Sales vs. Q1 FY23 vs. Q1 FY23 Automotive down high single digits ~25% Down ~10% Semiconductor down high single digits DISCRETE e-Commerce & Warehouse Automation down mid teens Food & Beverage down high single digits ~
Slide 5: Q1 FY24 Year-Over-Year Organic Sales Growth
Q1 FY24 Year-Over-Year Organic Sales Growth EMEA North (2.2)% % of America Asia Reported +4.2% Pacific Sales Latin (7.4)% America (0.5)% FY24 sales growth expected to be strongest in the Americas PUBLIC | Copyright ©2024 Rockwell Automation, Inc. | 5
Slide 6: Full Year Outlook Update
Full Year Outlook Update ▶ Orders still expected to increase low single digits year over year ▶ Reaffirming total sales growth range of 0.5% - 6.5%; organic growth range of (2.0)% - 4.0% ▶ Currency to increase sales ~1.0 pt ▶ Acquisitions to contribute ~1.5 pts of growth ▶ Total ARR still expected t
Slide 7: Q1 FY24 Key Financial Information
Q1 FY24 Key Financial Information ($ in millions, except per share amounts) Q1 FY24 Q1 FY23 YOY B/(W) Organic Growth +1.0 % Inorganic Growth +1.4 % Sales $2,052 $1,981 Currency Translation +1.2 % Reported Growth +3.6 % Segment Operating Margin 17.3% 20.2% (290) bps Corporate and Other $40 $27 $(13)
Slide 8: Q1 FY24 Segment Results
Q1 FY24 Segment Results Sales ($ in millions; YOY growth %) Segment Operating Margin Q1 FY23 Segment Highlights Organic (4.5) % Lower segment margin driven by lower sales volume, Intelligent Inorganic +2.3 % 16.2% the timing of prior-year investment spend, and the $927M (620) bps YOY impact of acqui
Slide 9: Q1 FY23 to Q1 FY24 Adjusted EPS Walk
Q1 FY23 to Q1 FY24 Adjusted EPS Walk *Excludes interest expense PUBLIC | Copyright ©2024 Rockwell Automation, Inc. | 9
Slide 10: Fiscal Year 2024 Guidance
Fiscal Year 2024 Guidance Updated Guidance Prior Guidance Sales Midpoint ~ $9.4B ~ $9.4B Organic Growth Range (2.0)% - 4.0% (2.0)% - 4.0% Inorganic Growth ~ 1.5% ~ 1.0% Currency Translation ~ 1.0% ~ 1.5% Segment Operating Margin ~ 21.5% ~ 21.5% Adjusted Effective Tax Rate ~ 17.0% ~ 17.0% Adjusted EP
Slide 11: Q1 Fiscal 2024 Earnings Presentation
Q1 Fiscal 2024 Earnings Presentation January 31, 2024 PUBLIC PUBLIC | Copyright ©2024 Rockwell Automation, Inc. | 11
Slide 12: Appendix
Appendix PUBLIC | Copyright ©2024 Rockwell Automation, Inc. | 12
Slide 13: FY24 Organic Industry Segment Outlook
FY24 Organic Industry Segment Outlook % of FY24 Assumptions at B/(W) vs. FY24 Sales vs. FY23 Guidance Midpoint Prior Guidance Automotive up low single digits ~25% Down low single digits Semiconductor down low single digits = e-Commerce & Warehouse Automation DISCRETE up low single digits Foo
Slide 14: Industry Segmentation
Industry Segmentation % of FY23 Sales ~25% ~40% ~35% of sales of sales of sales ~10% Automotive ~20% Food & Beverage ~10% Oil & Gas ~5% Semiconductor ~5% Life Sciences ~5% Mining ~5% e-Commerce & Warehouse ~5% Household & Personal Care ~5% Metals Automation ~5% Tire ~5% Chemicals ~5% General Industr
Slide 15: Q1 FY24 Results: Summary
Q1 FY24 Results: Summary Three Months Ended ($ in millions, except per share amounts) Q1 2024 Q1 2023 Total Sales $ 2,052.1 $ 1,981.0 Total segment operating earnings $ 355.5 $ 401.0 Purchase accounting depreciation and amortization (35.6) (26.0) Corporate and other (40.0) (27.3) Non-operating pensi
Slide 16: Reconciliation to Non-GAAP Measures: Free Cash Flow
Reconciliation to Non-GAAP Measures Free Cash Flow Three Months Ended ($ in millions) Q1 2024 Q1 2023 Net Income $ 212.7 $ 378.7 Depreciation/Amortization 76.9 57.8 Change in Fair Value of Investments (1) (3.1) (140.6) Retirement Benefits Expense (Income) 4.5 (1.7) Receivables/Inventory/Payables 52.
Slide 17: Reconciliation to Non-GAAP Measures: Organic Sales
Reconciliation to Non-GAAP Measures Organic Sales ($ in millions) Three Months Ended December 31, 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) Cu
Slide 18: Reconciliation to Non-GAAP Measures: Segment Operating Margin
Reconciliation to Non-GAAP Measures Segment Operating Margin ($ in millions) Three Months Ended December 31, 2023 December 31, 2022 Sales Intelligent Devices (a) $ 927.3 $ 936.2 Software & Control (b) 603.6 573.3 Lifecycle Services (c) 521.2 471.5 Total sales (d) $ 2,052.1 $ 1,981.0 Segment operatin
Slide 19: 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 December 31, 2023 December 31, 2022 Net income attributable to Rockwell Automation $ 215.2 $ 384.0 Non-operating pension and postretirement
Slide 20: Reconciliation to Non-GAAP Measures: Fiscal 2024 Guidance
Reconciliation to Non-GAAP Measures Fiscal 2024 Guidance ($ in billions, except per share amounts) Organic Sales Fiscal 2024 Guidance Organic sales growth (2.0)% - 4.0% Inorganic sales growth ~ 1.5% Foreign currency impact ~ 1.0% Reported sales growth 0.5% - 6.5%% Segment Operating Margin Total sale
Slide 21: Reconciliation to Non-GAAP Measures: Free Cash Flow Conversion
Reconciliation to Non-GAAP Measures Free Cash Flow Conversion ($ in billions) Fiscal 2024 Guidance Net income attributable to Rockwell Automation at the mid-point $ ~ 1.4 Non-operating pension and postretirement benefit cost, net of tax ~ — Purchase accounting depreciation and amortization attributa
Slide 22: 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 23: Thank you
Thank you www.rockwellautomation.com PUBLIC | Copyright ©2024 Rockwell Automation, Inc. | 23