Rockwell Automation, Inc. · NYSE:ROK

Rockwell Automation — Investor Day (November 2022)

60 slides from Rockwell Automation's investor day presentation, Nov 16, 2022

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 4: Introduction, strategy and execution
1 Introduction, strategy and execution progress 2 Solving the world’s greatest challenges 3 Platform-wide innovation and scalability 4 Integrated business roadmaps 5 Attracting top talent, partners and investors 6 Q&A PUBLIC | Copyright ©2022 Rockwell Automation, Inc. | 9
Slide 6: At a glance: $7.8B 2022 sales
AT A G L A N C E $7.8B 2022 sales 7% Latin America 18% ~25% ~35% $1.9B $3.6B Discrete Process Lifecycle Intelligent EMEA Services Devices We’re taking 14% manufacturing to 61% Asia Pacific a whole new level North ~40% $2.3B America Hybrid Software and Control by making our customers more resilient,
Slide 7: Accelerating Profitable Growth
Accelerating Profitable Growth Targeting double-digit Adjusted EPS growth 1%+ from inorganic growth Emulate3D, Sensia, Kalypso, ASEM, Avnet, Oylo Fiix, Plex, AVATA and CUBIC Financial Framework Priorities: • 30-35% earnings conversion at • Information Solutions / Connected Services mid-single-digits
Slide 8: From vision to execution
From vision to execution Operationalizing $9B in revenue and beyond $9B $7.8B 1%+ from inorganic growth Double-digit growth in $5.9B Information Solutions & Connected Services Core growth at 2x IP FY16 FY22 FY25 PUBLIC | Copyright ©2022 Rockwell Automation, Inc. | 13
Slide 9: From vision to execution: Exceeding our goals
From vision to execution Exceeding our goals Operationalizing $9B in revenue and beyond 1.5% from FY16 - FY22 CAGR inorganic growth $9B Double-digit growth in IS/CS $7.8B 1%+ from Core growth inorganic growth 2.3x IP Double-digit growth in $5.9B Information Solutions & Connected Services Core growth
Slide 10: Helping our customers manage through disruption and volatility
Helping our customers manage through disruption and volatility Supply Facility Cybersecurity Macro-economic Labor shortage chain shutdowns risk environment and cost Supply chain Remote operations Design for Diversified & flexible More automation & localization & enabled by technology security busine
Slide 13: Personalized Healthcare
Personalized Healthcare From treating symptoms to creating curative therapies, which correct the underlying condition based on individual’s DNA Cell & gene therapies market is experiencing explosive growth, projected to grow ~35% over the next 5 years Technology to scale and manufacture advanced the
Slide 14: Personalized Healthcare
Personalized Healthcare Right size form factor & Scalable and modular control platform to 1 cost-effective production support smaller batches and more SKUs Technology that connects different parts Network orchestration to of the value chain, from drug improve end-to-end drug development to commercia
Slide 16: Electric Vehicles
Electric Vehicles Global automakers accelerating EV transformation EV startups are driving innovation in EV design Battery producers projected to invest over half a trillion dollars through 2030 to meet EV demand Tier suppliers taking on more scope and evolving offerings PUBLIC | Copyright ©2022 Roc
Slide 17: Electric Vehicles
Electric Vehicles Digital Twin, proven automation architecture, Launch risk & 1 chip shortages best-in-class program management to ensure launches are on time and within budget Independent Cart Technology, simulation software, core automation and safety solutions 2 Battery cost & supply reduce batte
Slide 18: Partnering with Ford on electric vehicles and batteries
Partnering with Ford to reimagine how electric vehicles and batteries are designed, built and recycled PUBLIC | Copyright ©2022 Rockwell Automation, Inc. | 23
Slide 19: Partnering with Hyundai Motors for EV megasite in Georgia
Partnering with Hyundai Motors for their EV greenfield megasite in Georgia, US PUBLIC | Copyright ©2022 Rockwell Automation, Inc. | 24
Slide 20: Energy Transition
Energy Transition Greenhouse Gas (GHG) reduction a primary focus to mitigate global warming Imperative to transition the world’s energy mix to more low carbon sources This transition will require both focus on renewable sources and carbon reduction of the existing fossil energy sector AI is an essen
Slide 21: Energy Transition
Energy Transition Drive measurable & reportable Model predictive control and advanced analytics, 1 decarbonization outcomes in as well as our Operations Management and existing operations Asset Performance Management software Make fossil energy as clean as possible with higher levels of automation a
Slide 22: Investor Day: Blake Moret and Olivier Le Peuch
Investor Day Blake Moret Olivier Le Peuch CHAIRMAN & CHIEF EXECUTIVE OFFICER CHIEF EXECUTIVE OFFICER PUBLIC | Copyright ©2022 Rockwell Automation, Inc. | 27
Slide 23: ROK is a key technology partner to First Solar
“ROK is a key technology partner to First Solar, helping to enable America’s clean energy future and energy security” - Chief Manufacturing Engineering Officer, First Solar Automation and software standard for existing plants and greenfield facilities Digital Twin and simulation solutions to reduce
Slide 26: Product platforms
Product platforms FactoryTalk Integrated manufacturing software across design – operate – maintain with complete offerings for on-prem, cloud and hybrid deployment Logix Stratix View Kinetix PowerFlex Plant-wide, multi- Higher Open and scalable Integrated motion High performance discipline and secur
Slide 27: Scalable innovation at all levels of the technology stack
Scalable innovation at all levels of the technology stack Product Platforms FactoryTalk Logix Stratix View Kinetix PowerFlex PUBLIC | Copyright ©2022 Rockwell Automation, Inc. | 32
Slide 28: Scalable innovation at all levels of the technology stack
Scalable innovation at all levels of the technology stack Product Platforms FactoryTalk Logix Stratix View Kinetix PowerFlex • Built on Integrated Architecture and communication services Digital Platform • Expanding for a hybrid world – at the edge and in the cloud • Delivers common system level ser
Slide 29: Scalable innovation at all levels of the technology stack
Scalable innovation at all levels of the technology stack • Combination of hardware, software and services Industry Solutions that deliver a specific business outcome • Built with ROK product platforms, domain expertise & IP Product Platforms FactoryTalk Logix Stratix View Kinetix PowerFlex • Built
Slide 30: Digital Platform is the foundation of core platforms
Digital Platform is the foundation of core platforms Built for a hybrid cloud world • Productized common services for application re-use • Improved user experience – less clicks, less time for system configuration, less code • Faster time to innovate – faster time to market for ROK Digital Platform
Slide 31: Deliver outcomes by transforming data into insights
Deliver outcomes by transforming data into insights AI • Enables Autonomous Systems and empower workforce with an open interoperable architecture IoT Edge AI • User-centric workflow simplifies how AI is integrated and used across the system Control & Visualization AI • Optimize data flow and associa
Slide 33: Industry solutions
Industry solutions Leveraging re-usable application libraries across end markets Product Quality Industry Solutions Management Application FOOD & BEVERAGE E V B AT T E RY PUBLIC | Copyright ©2022 Rockwell Automation, Inc. | 38
Slide 34: Creating industry specific solutions with a scalable business model
Creating industry specific solutions with a scalable business model PUBLIC | Copyright ©2022 Rockwell Automation, Inc. | 39
Slide 36: Integrated Business Roadmaps Drive Differentiation
Integrated Business Roadmaps Drive Differentiation INTELLIGENT DEVICES SOFTWARE & CONTROL LIFECYCLE SERVICES • Smart Devices for open connectivity • Scalable control platform to increase • Kalypso consulting for technology transfer, & streamlined integration throughput & reduce changeover time produ
Slide 37: Chief People and Legal Officer, Chief Revenue Officer, Chief Financial Officer
Chief People and Chief Revenue Chief Financial Legal Officer Officer Officer PUBLIC | Copyright ©2022 Rockwell Automation, Inc. | 42
Slide 39: Focus on talent
Focus on talent Attracting talent Develop talent for Accelerating diversity, Focusing on with new skill sets now and the future equity, and inclusion employee well-being • 800+ new employees with • Trained over 300 military • Increasing the number of women • Supporting mental, physical, software ski
Slide 40: Sustainable customers, company, communities
™ SUSTAINABLE CUSTOMERS – SUSTAINABLE COMPANY – SUSTAINABLE COMMUNITIES OUR CULTURE Strengthen our commitment Be willing to compare Increase the speed of Have a steady stream to integrity, diversity and ourselves to the decision making of fresh ideas inclusion best alternatives • Ethics & compliance
Slide 41: Sustainable Customers, Company, and Communities
Sustainable Customers, Company, and Communities Sustainable Customers Sustainable Company Sustainable Communities PUBLIC | Copyright ©2022 Rockwell Automation, Inc. | 46
Slide 42: Chief People and Legal Officer, Chief Revenue Officer, Chief Financial Officer
Chief People and Chief Revenue Chief Financial Legal Officer Officer Officer PUBLIC | Copyright ©2022 Rockwell Automation, Inc. | 47
Slide 44: Go-to-Market Acceleration
Go-to-Market Acceleration • Optimization through regional • New technologies and talent • Extension of our talent and industry alignment • Digital consulting – Kalypso • Technology Partners • Market amplification with • Software and high-velocity sales • Machine Builders (OEM) new CMO office & marke
Slide 45: Growing with our partners
Growing with our partners EXISTING PARTNERS NEW PARTNERS Unique distribution model Focus on amplifying ARR growth • Key differentiator, especially in North America Software partner eco-system: • Expanding software & • Value-add resellers services capabilities • System integrators OEM and SI investme
Slide 46: Chief People and Legal Officer, Chief Revenue Officer, Chief Financial Officer
Chief People and Chief Revenue Chief Financial Legal Officer Officer Officer PUBLIC | Copyright ©2022 Rockwell Automation, Inc. | 51
Slide 48: From vision to execution
From vision to execution Operationalizing $9B in revenue and beyond $9B $7.8B 1%+ from inorganic growth Double-digit growth in $5.9B Information Solutions & Connected Services Core growth at 2x IP FY16 FY22 FY25 PUBLIC | Copyright ©2022 Rockwell Automation, Inc. | 53
Slide 49: FY22 Investment spend
FY22 Investment spend Digital infrastructure & supply chain R&D FY22 Double-digit YOY growth • Record year of FY23 software and Support Total product launches enabled by FY22 functions Double-digit growth investments up 3% YOY growth investment up 12% • Total growth investments up 12% including acqu
Slide 50: FY23 Investment spend
FY23 Investment spend Additional focus on talent and growth investments R&D Digital infrastructure & supply chain • Organic on-prem software and • ARR infrastructure for flexible and SaaS capabilities outcome-based customer engagements • Key product development • End-to-end customer experience • Ind
Slide 51: Accelerating profitable growth with inorganic investments
Accelerating profitable growth with inorganic investments ~$150M of EBITDA in FY23 FY16 FY17 FY18 FY19 FY20 FY21 FY22 FY23 Process Expertise Information Solutions / Connected Services Market access in Europe / Asia Advanced Material Handling Acquisitions’ sales growing organically double the pace of
Slide 52: CUBIC acquisition
CUBIC acquisition Strengthens and expands global reach for Intelligent Devices Brings new customers and partners in Hybrid and Process industries Broadens market access in renewable energy and data center solutions Differentiates with superior design flexibility and scalability Estimated to contribu
Slide 53: Long-term framework for continued superior financial returns
Long-term framework for continued superior financial returns 30-35% Earnings 100% or More Solid Balance EPS Growth > ROIC >20% Conversion at Free Cash Flow Sheet Revenue Growth Mid-Single-Digits Conversion Organic Growth UPWARD SCALE TREND IN $ HIGH QUALITY EARNINGS, ROK SIGNIFICANT CAPACITY BENEFIT
Slide 54: Capital deployment framework
Capital deployment framework ORGANIC INVESTMENTS Operating Cash Flow Capital Expenditures ~2 to 2.25% of Sales Free Cash Flow ~100% of Adjusted Income INORGANIC INVESTMENTS Acquisitions Target > 1 pt of growth per year FCF yield > (WACC + risk premium) by years 3-5 EXCESS CASH RETURNED TO SHAREOWNER
Slide 55: Capital structure
Capital structure 9/30/2021 9/30/2022 9/30/2023E FRAMEWORK Cash & Investments* $0.7B $0.5B ~$0.5B • Maintain “A” credit rating Total Debt $4.0B $3.8B ~$3.3B • ~$500M cash Net Debt $3.3B $3.3B ~$2.8B • Targeting ~2.0X Adjusted Debt / EBITDA Total Debt / Adj. EBITDA** 2.8X 2.4X ~1.9X • Flexibility to
Slide 56: Backlog by segment
Backlog by segment ~$5B Lifecycle Services Software and Control Backlog $ Intelligent Devices ~$1B FY19 FY22 Record backlog includes benefits of higher pricing PUBLIC | Copyright ©2022 Rockwell Automation, Inc. | 61
Slide 57: Fiscal 2023 guidance
Fiscal 2023 guidance Full year outlook Sales Midpoint ~ $8.5B Organic Growth Range 9% - 13% Inorganic Growth(1) ~ 1% Currency Translation ~ (2.5)% Segment Operating Margin ~ 20.5% Adjusted Effective Tax Rate ~ 18% Adjusted EPS $10.20 - $11.00 Free Cash Flow as a % of Adjusted Income ~ 95% Note: As o
Slide 58: More ways to win
More ways to win • Rockwell is delivering on our commitment to accelerate profitable growth We have the technology, • In a relatively short time, we have become people, and ecosystem a scale provider of software, digital to take manufacturing services, and OT cybersecurity, with double-digit growth
Slide 59: Rockwell Automation leadership team
BL A KE MO R E T NI CK GA NGE S T A D S CO T T GE NE R E U X BE CKY H O U S E F R A NK KU L A S Z E W I CZ V E E NA L A KKU NDI Chairman and Senior Vice President, Senior Vice President, Senior Vice President, Senior Vice President, Senior Vice President, Chief Executive Officer Chief Financial Offi

Rockwell Automation — Investor Day (November 2022) on 6ix

Rockwell Automation — Investor Day (November 2022)

Slide 1: Annual Investor Conference 2022

Slide 2: Forward-looking statements and non-GAAP information

Slide 3: Chairman & CEO

Slide 4: Introduction, strategy and execution

Slide 5: Blake Moret, Chairman & CEO

Slide 6: At a glance: $7.8B 2022 sales

Slide 7: Accelerating Profitable Growth

Slide 8: From vision to execution

Slide 9: From vision to execution: Exceeding our goals

Slide 10: Helping our customers manage through disruption and volatility

Slide 11: Helping customers across all industries

Slide 12: Personalized Healthcare, Electric Vehicles, Energy Transition

Slide 13: Personalized Healthcare

Slide 14: Personalized Healthcare

Slide 15: Kevin Seaver

Slide 16: Electric Vehicles

Slide 17: Electric Vehicles

Slide 18: Partnering with Ford on electric vehicles and batteries

Slide 19: Partnering with Hyundai Motors for EV megasite in Georgia

Slide 20: Energy Transition

Slide 21: Energy Transition

Slide 22: Investor Day: Blake Moret and Olivier Le Peuch

Slide 23: ROK is a key technology partner to First Solar

Slide 24: Cyril Perducat, Chief Technology Officer

Slide 25: Customers want better business outcomes

Slide 26: Product platforms

Slide 27: Scalable innovation at all levels of the technology stack

Slide 28: Scalable innovation at all levels of the technology stack

Slide 29: Scalable innovation at all levels of the technology stack

Slide 30: Digital Platform is the foundation of core platforms

Slide 31: Deliver outcomes by transforming data into insights

Slide 32: Industry solutions

Slide 33: Industry solutions

Slide 34: Creating industry specific solutions with a scalable business model

Slide 35: Intelligent Devices, Software & Control, Lifecycle Services

Slide 36: Integrated Business Roadmaps Drive Differentiation

Slide 37: Chief People and Legal Officer, Chief Revenue Officer, Chief Financial Officer

Slide 38: Becky House, Chief People and Legal Officer

Slide 39: Focus on talent

Slide 40: Sustainable customers, company, communities

Slide 41: Sustainable Customers, Company, and Communities

Slide 42: Chief People and Legal Officer, Chief Revenue Officer, Chief Financial Officer

Slide 43: Scott Genereux, Chief Revenue Officer

Slide 44: Go-to-Market Acceleration

Slide 45: Growing with our partners

Slide 46: Chief People and Legal Officer, Chief Revenue Officer, Chief Financial Officer

Slide 47: Nick Gangestad, Chief Financial Officer

Slide 48: From vision to execution

Slide 49: FY22 Investment spend

Slide 50: FY23 Investment spend

Slide 51: Accelerating profitable growth with inorganic investments

Slide 52: CUBIC acquisition

Slide 53: Long-term framework for continued superior financial returns

Slide 54: Capital deployment framework

Slide 55: Capital structure

Slide 56: Backlog by segment

Slide 57: Fiscal 2023 guidance

Slide 58: More ways to win

Slide 59: Rockwell Automation leadership team

Slide 60: PUBLIC | Copyright ©2022 Rockwell Automation, Inc. | 65