Rockwell Automation, Inc. · NYSE:ROK
Rockwell Automation — Q3 2024 Earnings Presentation
26 slides from Rockwell Automation's earnings presentation, Aug 7, 2024
Slide 1: Q3 Fiscal 2024 Earnings Presentation
Q3 Fiscal 2024 Earnings Presentation August 7, 2024 PUBLIC PUBLIC | Copyright ©2024 Rockwell Automation, Inc. | 1 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: Q3 FY24 Results Highlights
Q3 FY24 Results Highlights ▶ Orders up low single digits sequentially and YOY ▶ Reported and organic sales both down (8.4)% YOY ▶ Total Annual Recurring Revenue (ARR) up 17% YOY ▶ Segment margin of 20.8% up sequentially 180 bps, down (30) bps YOY ▶ Adjusted EPS of $2.71, down (10%) YOY ▶ Achieved ~$
Slide 4: Q3 FY24 Organic Industry Segment Performance
Q3 FY24 Organic Industry Segment Performance % of Q3 Q3 FY24 Q3 FY24 FY24 Sales vs. Q3 FY23 vs. Q3 FY23 Automotive down high teens Down high single ~25% Semiconductor down high teens digits DISCRETE e-Commerce & Warehouse Automation up high teens Food & Beverage down mid teens ~ 40% Down mid
Slide 5: Q3 FY24 Year-Over-Year Organic Sales Growth
Q3 FY24 Year-Over-Year Organic Sales Growth EMEA North (27.6)% % of America Asia Reported (0.2)% Pacific Sales (21.9)% Latin America 18.9% Americas continue to be our strongest region in FY24 PUBLIC | Copyright ©2024 Rockwell Automation, Inc. | 5
Slide 6: Full Year Outlook Update
Full Year Outlook Update ▶ Orders of ~$7.5B expected to be down high single digits YOY ▶ Total sales decline of (8.5%); organic sales decline of (10%) ▶ Currency flat YOY ▶ Acquisitions to contribute ~1.5 pts of growth ▶ Total ARR still expected to grow ~15% YOY ▶ Expect segment margin of ~19%; incl
Slide 7: Margin Expansion and Productivity
Margin Expansion and Productivity • Drive synergies from recent acquisitions • Productivity in HQ functions SG&A Cost Reduction • Streamline sales operations Enterprise Scale • Leverage CoEs in low-cost locations Incremental YOY Benefit and Efficiency Process Efficiency Leverage technology to redesi
Slide 8: Q3 FY24 Key Financial Information
Q3 FY24 Key Financial Information ($ in millions, except per share amounts) Q3 FY24 Q3 FY23 YOY B/(W) Organic Growth (8.4) % Inorganic Growth +0.6 % Sales $2,051 $2,239 Currency Translation (0.6) % Reported Growth (8.4) % Segment Operating Margin 20.8% 21.1% (30) bps Corporate and Other $29 $32 $3 A
Slide 9: Q3 FY24 Segment Results
Q3 FY24 Segment Results Sales ($ in millions; YOY growth %) Segment Operating Margin Q1 FY23 Segment Highlights Organic (1.2)% Intelligent Inorganic +0.7 % 20.2% Higher segment margin YOY driven by positive price/cost, lower incentive compensation, and the $957M Devices Currency (0.6) % +340 bps YOY
Slide 10: Q3 FY23 to Q3 FY24 Adjusted EPS Walk
Q3 FY23 to Q3 FY24 Adjusted EPS Walk ~ $(0.80) ~ $0.40 ~ $(0.15) ~ $(0.10) ~ $0.05 ~ $0.30 $3.01 $2.71 FY23 Q3 Core Benefits from Cost Incentive FX Acquisitions Shares / Interest / FY24 Q3 Reductions Compensation Tax Adjusted EPS excludes 2nd half restructuring charges PUBLIC | Copyright ©2024 Rockw
Slide 11: Fiscal Year 2024 Guidance
Fiscal Year 2024 Guidance Updated Guidance Prior Guidance Sales Midpoint ~ $8.3B ~ $8.6B Organic Growth ~ (10.0)% ~ (8.0)% - (6.0)% Inorganic Growth ~ 1.5% ~ 1.5% Currency Translation ~ 0.0% ~ 0.5% Segment Operating Margin ~ 19.0% ~ 20.0% Adjusted Effective Tax Rate ~ 16.0% ~ 17.0% Adjusted EPS Targ
Slide 12: FY24 Updated vs Prior Guidance Adjusted EPS Walk
FY24 Updated vs Prior Guidance Adjusted EPS Walk ($0.95) ~$0.10 ~ $(0.05) $3.04 $3.04 $10.50 $9.60 FY24 Prior Guidance Core Tax Rate FX / Interest / Shares FY24 Updated Guidance Adjusted EPS excludes 2nd half restructuring charges Updated Guidance as of Aug 7, 2024; Prior Guidance as of May 7, 2024
Slide 13: Q3 Fiscal 2024 Earnings Presentation
Q3 Fiscal 2024 Earnings Presentation August 7, 2024 PUBLIC PUBLIC | Copyright ©2024 Rockwell Automation, Inc. | 13
Slide 14: Appendix
Appendix PUBLIC | Copyright ©2024 Rockwell Automation, Inc. | 14
Slide 15: FY24 Organic Industry Segment Outlook
FY24 Organic Industry Segment Outlook % of FY24 Assumptions at B/(W) vs. FY24 Sales vs. FY23 Guidance Prior Guidance Automotive down ~20% DISCRETE ~25% Down mid teens Semiconductor down high teens e-Commerce & Warehouse Automation flat - Food & Beverage down high teens HYBRID ~40% Down mid t
Slide 16: Industry Segmentation
Industry Segmentation % of FY23 Sales ~25% ~40% ~35% of sales of sales of sales ~10% Automotive ~20% Food & Beverage ~10% Oil & Gas ~5% Semiconductor ~5% Life Sciences ~5% Mining ~5% e-Commerce & Warehouse ~5% Household & Personal Care ~5% Metals Automation ~5% Tire ~5% Chemicals ~5% General Industr
Slide 17: Q3 FY24 Results: Summary
Q3 FY24 Results: Summary Three Months Ended ($ in millions, except per share amounts) Q3 2024 Q3 2023 Total Sales $ 2,050.6 $ 2,238.7 Total segment operating earnings $ 426.5 $ 473.0 Purchase accounting depreciation and amortization (35.6) (27.2) Corporate and other (28.6) (32.3) Non-operating pensi
Slide 18: Reconciliation to Non-GAAP Measures
Reconciliation to Non-GAAP Measures Free Cash Flow Three Months Ended Nine Month Ended ($ in millions) Q3 2024 Q3 2023 Q3 2024 Q3 2023 Net Income $ 231.1 $ 398.7 $ 709.1 $ 1,072.3 Depreciation/Amortization 78.5 62.1 236.2 182.0 Change in Fair Value of Investments (1) 5.0 (85.7) (0.9) (289.3) Retirem
Slide 19: Reconciliation to Non-GAAP Measures
Reconciliation to Non-GAAP Measures Organic Sales ($ in millions) Three Months Ended June 30, 2024 2023 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) Curren
Slide 20: Reconciliation to Non-GAAP Measures
Reconciliation to Non-GAAP Measures Segment Operating Margin ($ in millions) Three Months Ended June 30, 2024 June 30, 2023 Sales Intelligent Devices (a) $ 957.3 $ 968.1 Software & Control (b) 512.1 750.6 Lifecycle Services (c) 581.2 520.0 Total sales (d) $ 2,050.6 $ 2,238.7 Segment operating earnin
Slide 21: 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 June 30, 2024 June 30, 2023 Net income attributable to Rockwell Automation $ 232.0 $ 400.2 Non-operating pension and postretirement benefit
Slide 22: Reconciliation to Non-GAAP Measures
Reconciliation to Non-GAAP Measures Return On Invested Capital ($ in millions) Twelve Months Ended June 30, 2024 2023 (a) Return Net income $ 914.8 $ 1,408.3 Interest expense 144.6 137.1 Income tax provision 227.6 288.6 Purchase accounting depreciation and amortization 292.9 105.6 Return $ 1,579.9 $
Slide 23: Reconciliation to Non-GAAP Measures
Reconciliation to Non-GAAP Measures Fiscal 2024 Guidance ($ in billions, except per share amounts) Organic Sales Fiscal 2024 Guidance Organic sales growth ~ (10)% Inorganic sales growth ~ 1.5% Foreign currency impact ~ —% Reported sales growth ~ 8.5% Segment Operating Margin Total sales (a) $ ~ 8.3
Slide 24: Reconciliation to Non-GAAP Measures
Reconciliation to Non-GAAP Measures Free Cash Flow Conversion ($ in billions) Fiscal 2024 Guidance Net income attributable to Rockwell Automation at the mid-point $ ~ 0.9 Non-operating pension and postretirement benefit credit, net of tax ~ — Purchase accounting depreciation and amortization attribu
Slide 25: Performance Metric Definition
Performance Metric Definition Total 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 defined
Slide 26: Thank you
Thank you www.rockwellautomation.com PUBLIC | Copyright ©2024 Rockwell Automation, Inc. | 26