Rockwell Automation, Inc. · NYSE:ROK
Rockwell Automation — Q1 2017 Earnings Presentation
16 slides from Rockwell Automation's earnings presentation, Jan 25, 2017
Slide 1: Fiscal Year 2017 First Quarter Conference Call
Fiscal Year 2017 First Quarter Conference Call January 25, 2017 Rev 5058-CO900A Copyright © 2017 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 2017 First Quarter Results and Full Year Outlook
Fiscal 2017 First Quarter Results and Full Year Outlook Q1 Results ▪ Organic sales up 3.8% YOY – U.S. returned to growth; double-digit growth in emerging markets – Continued strength in consumer and transportation ▪ Acquisitions contributed 1.8% to growth ▪ Solid segment operating margin of 21.2% ▪
Slide 4: Key Financial Information: First Quarter
Key Financial Information: First Quarter (in millions, except per share amounts) Q1 2017 Q1 2016 YOY B/(W) Sales $ 1,490 $ 1,427 4.5 % Segment Operating Margin 21.2 % 20.7 % 50 bps General Corporate - Net $ 15 $ 18 $ 3 Adjusted EPS $ 1.75 $ 1.49 17.4 % Adjusted Effective Tax Rate 18.1 % 22.8 % 470 b
Slide 5: Architecture & Software
Architecture & Software Sales Segment Operating Margin ($ millions) $800 40% $696 $643 30.0% 30% 27.4% $600 20% $400 10% $200 0% Q1 Q1 2016 2017 2016 2017 YOY Sales % Change ▪ Segment operating margin expanded Q1 2017 260 bps in Q1, primarily due to higher Organic 7.6% sales FX (1.0)% Acquisitions 1
Slide 6: Control Products & Solutions
Control Products & Solutions Sales Segment Operating Margin ($ millions) $1,000 20% $784 $794 15.3% $800 15% 13.6% $600 10% $400 5% $200 0% Q1 Q1 2016 2017 2016 2017 YOY Sales % Change ▪ Segment operating margin contracted Q1 2017 170 bps in Q1, primarily due to higher Organic 0.7% incentive compens
Slide 7: Regional Sales
Regional Sales (in millions, except percentages) Q1 2017 Organic Region Sales % Change First Quarter * ▪ U.S. and Canada return to YOY U.S. $ 820 1.8% organic growth ▪ Slow start in EMEA, as expected Canada 83 5.3% ▪ Broad-based growth in Asia Pacific; China up mid-teens EMEA 271 (1.8)% ▪ Latin Amer
Slide 8: Revised Fiscal 2017 Guidance
Revised Fiscal 2017 Guidance January November Guidance Guidance Sales Midpoint ~ $6B ~ $6B Organic Growth Range 1% to 5% 0% to 4% Currency Translation ~ (2.0)% ~ (0.5)% Acquisitions ~ 1.5% ~ 1.5% Segment Operating Margin ~ 20% ~ 20% Adjusted Effective Tax Rate ~ 23.5% ~ 24% Adjusted EPS $5.95 - $6.3
Slide 9: Appendix: Supplemental Financial Information and Reconciliations
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.
Slide 10: First Quarter Results: Summary
First Quarter Results: Summary (in millions, except per share amounts) Q1 2017 Q1 2016 Total Sales $ 1,490.3 $ 1,426.6 Total Segment Operating Earnings $ 316.6 $ 295.9 Purchase Accounting Depreciation and Amortization (5.6) (4.7) General Corporate - Net (14.9) (18.0) Non-Operating Pension Costs (19.
Slide 11: Free Cash Flow
Free Cash Flow (in millions) Q1 2017 Net Income $ 214.7 Depreciation/Amortization 40.4 Retirement Benefits Expense 43.0 Receivables/Inventory/Payables (32.3) Compensation and Benefits 22.4 Pension Contributions (13.5) Income Taxes 22.3 Other 13.8 Cash Flow from Operations 310.8 Capital Expenditures
Slide 12: Reconciliation to Non-GAAP Measures
Reconciliation to Non-GAAP Measures Organic Sales Three Months Ended December 31, 2016 2015 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)/(c) (b)/(c) United States $ 820.
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, 2016 December 31, 2015 Sales Architecture & Software (a) $ 696.4 $ 642.9 Control Products & Solutions (b) 793.9 783.7 Total sales (c) $ 1,490.3 $ 1,426.6
Slide 14: Reconciliation to Non-GAAP Measures
Reconciliation to Non-GAAP Measures Adjusted Income, Adjusted EPS and Adjusted Effective Tax Rate (in millions, except per share amounts) Three Months Ended Three Months Ended December 31, 2016 December 31, 2015 Income from continuing operations $ 214.7 $ 185.5 Non-operating pension costs 19.8 18.9
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, 2016 2015 (a) Return Income from continuing operations $ 758.9 $ 798.9 Interest expense 72.6 66.2 Income tax provision 204.9 278.0 Purchase accounting depreciation and am
Slide 16: Reconciliation to Non-GAAP Measures
Reconciliation to Non-GAAP Measures Fiscal 2017 Guidance (in billions, except percentages and per share amounts) Organic Sales January Guidance November Guidance Organic sales growth 1% to 5% 0% to 4% Foreign currency impact ~ (2.0)% ~ (0.5)% Acquisition impact ~ 1.5% ~ 1.5% Reported sales growth 1%