Rockwell Automation, Inc. · NYSE:ROK
Rockwell Automation — Q1 2022 Earnings Presentation
23 slides from Rockwell Automation's earnings presentation, Jan 27, 2022
Slide 1: Q1 Fiscal 2022 Earnings Presentation
Q1 Fiscal 2022 Earnings Presentation January 27, 2022 PUBLIC 1
Slide 2: Safe Harbor Statement
Safe Harbor Statement THIS PRESENTATION INCLUDES GUIDANCE AND OTHER 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, MANY OF WHICH
Slide 3: Q1 FY22 Results Highlights
Q1 FY22 Results Highlights ▪ Record orders of over $2.5B, up over 40% YOY • Strong growth across all business segments and regions ▪ Reported sales up 18.7% YOY; all segments grew double digits; acquisitions contributed 2.6% ▪ Organic sales up 16.8% YOY ▪ Information Solutions & Connected Services (
Slide 4: Q1 FY22 Organic Industry Segment Performance
Q1 FY22 Organic Industry Segment Performance % of Q1 FY22 Q1 FY22 Sales vs. Q1 FY21 Q1 FY22 vs. Q1 FY21 Discrete Semiconductor up ~25% ~ 25% Up ~20% Automotive up mid teens e-Commerce up ~50% Hybrid Food & Beverage up ~20% ~ 45% Up ~15% Life Sciences up ~10% Tire up ~35% Process O&G up
Slide 5: Q1 FY22 Organic Sales Growth
Q1 FY22 Organic Sales Growth NORTH AMERICA EMEA +15.9% +14.8% Q1 HIGHLIGHTS * • North America saw double-digit growth in all three industry segments; particular strength in ASIA PACIFIC Food & Beverage +24.8% • EMEA growth driven by strength in Food & Beverage, Tire, and Metals • Asia Pacific streng
Slide 6: FY22 Full Year Outlook Highlights
FY22 Full Year Outlook Highlights ▪ Projecting record orders of over $9B ▪ Reaffirming total sales growth of 17.5% at the midpoint; generating $1.2B of sales growth ▪ Acquisitions to contribute ~2 pts of growth ▪ ARR expected to grow double digits ▪ IS/CS expected to grow double digits; sales expect
Slide 7: FY22 Organic Industry Segment Outlook
FY22 Organic Industry Segment Outlook % of FY22 B/(W) vs. Nov FY22 Sales vs. FY21 Assumptions at Guidance Midpoint Guidance Discrete = Automotive up mid teens ~ 25% Up ~15% Semiconductor up mid teens e-Commerce up ~25% Hybrid Food & Beverage up mid teens ~ 45% Up ~15% Life Sciences up high
Slide 8: Q1 FY22 Key Financial Information
Q1 FY22 Key Financial Information ($ in millions, except per share amounts) Q1 FY22 Q1 FY21 YOY B/(W) Organic Growth +16.8 % Inorganic Growth +2.6 % SALES $1,857 $1,565 Currency Translation (0.7) % Reported Growth +18.7 % SEGMENT OPERATING MARGIN 19.1% 19.8% (70) bps CORPORATE AND OTHER $29 $28 $(1)
Slide 9: Q1 FY22 Segment Results
Q1 FY22 Segment Results SALES SEGMENT OPERATING SEGMENT ($ in millions; YOY growth %) MARGIN HIGHLIGHTS Organic +25.6 % Intelligent ▪ Higher segment margin YOY mainly due to higher sales Devices Inorganic —% 23.7% partially offset by negative price/cost $900M Currency (0.9)% +430 bps YOY Reported +2
Slide 10: Q1 FY21 to Q1 FY22 Adjusted EPS Walk
Q1 FY21 to Q1 FY22 Adjusted EPS Walk PUBLIC | Copyright ©2022 Rockwell Automation, Inc. | 10
Slide 11: Fiscal Year 22 Guidance
Fiscal Year 22 Guidance January November Guidance Guidance Sales Midpoint ~ $8.2B ~ $8.2B Organic Growth Range 14% - 17% 14% - 17% Inorganic Growth ~ 2.0% ~ 2.0% Currency Translation ~ 0% ~ 0% Segment Operating Margin ~ 21.5% ~ 21.5% Adjusted Effective Tax Rate ~ 17% ~ 17% Adjusted EPS $10.50 - $11.
Slide 12: Q1 Fiscal 2022 Earnings Presentation
Q1 Fiscal 2022 Earnings Presentation January 27, 2022 PUBLIC 12
Slide 13: Appendix
APPENDIX 13
Slide 14: Industry Segmentation
Industry Segmentation % of FY21 Sales Discrete Hybrid Process ~10% Automotive ~20% Food & Beverage ~10% Oil & Gas ~5% Semiconductor ~5% Life Sciences ~5% Mining ~5% Warehousing & E-commerce ~5% Household & Personal Care ~5% Metals ~5% General Industries ~5% Tire ~5% Chemicals • Printing & Publishing
Slide 15: Q1 FY22 Results: Summary
Q1 FY22 Results: Summary ($ in millions, except per share amounts) Q1 2022 Q1 2021 Total Sales $ 1,857.3 $ 1,565.3 Total segment operating earnings $ 355.1 $ 309.3 Purchase accounting depreciation and amortization (26.1) (11.7) Corporate and other (29.4) (28.0) Non-operating pension and postretireme
Slide 16: Free Cash Flow
Free Cash Flow ($ in millions) Q1 2022 Q1 2021 Net Income $ 239 $ 590 Depreciation/Amortization 59 44 Change in fair value of investments1 (8) (390) Retirement Benefits Expense 16 30 Receivables/Inventory/Payables (186) (105) Compensation and Benefits (135) 7 Pension Contributions (8) (9) Income Tax
Slide 17: Reconciliation to Non-GAAP Measures
Reconciliation to Non-GAAP Measures Organic Sales ($ in millions) Three Months Ended December 31, 2021 2020 Effect of Effect of Reported Sales Effect of Changes in Organic Sales Effect of Changes in Organic Growth Acquisitions Currency Growth Sales(a) Acquisitions(e) Currency(d) Sales(b) Sales(c) (a
Slide 18: Reconciliation to Non-GAAP Measures
Reconciliation to Non-GAAP Measures Segment Operating Margin ($ in millions) Three Months Ended December 31, 2021 December 31, 2020 Sales Intelligent Devices (a) $ 900.3 $ 721.7 Software & Control (b) 513.9 441.0 Lifecycle Services (c) 443.1 402.6 Total sales (d) $ 1,857.3 $ 1,565.3 Segment operatin
Slide 19: 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 December 31, 2021 December 31, 2020 Net Income attributable to Rockwell Automation $ 241.5 $ 593.3 Non-operating pension and postretirement
Slide 20: Reconciliation to Non-GAAP Measures
Reconciliation to Non-GAAP Measures Return On Invested Capital ($ in millions) Twelve Months Ended December 31, 2021 2020 (a) Return Net income $ 992.8 $ 1,298.2 Interest expense 101.6 99.7 Income tax provision 115.2 204.0 Purchase accounting depreciation and amortization 69.5 43.1 Return 1,279.1 1,
Slide 21: Reconciliation to Non-GAAP Measures
Reconciliation to Non-GAAP Measures Fiscal 2022 Guidance ($ in billions, except per share amounts) Organic Sales Fiscal 2022 Guidance Organic sales growth 14% - 17% Inorganic sales growth ~ 2% Foreign currency impact ~ 0% Reported sales growth 16% - 19% Segment Operating Margin Total sales (a) $ ~ 8
Slide 22: 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
Slide 23: Thank you
Thank you www.rockwellautomation.com 23