Rockwell Automation, Inc. · NYSE:ROK
Rockwell Automation — Barclays Industrial Select Conference 2024
22 slides from Rockwell Automation's conference presentation, Feb 21, 2024
Slide 1: Barclays Industrial Select Conference
Barclays Industrial Select Conference February 21, 2024
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: At a Glance
AT A GLANCE $9.1B 2023 sales 6% Latin America 21% ~25% ~35% $2.1B $4.1B Discrete Process Lifecycle Intelligent EMEA Services Devices As the world’s largest pure-play industrial 15% automation and digital Asia Pacific transformation company, 58% North ~40% $2.9B we are America Hybrid Software and Con
Slide 4: Building on a strong foundation
Building on a strong foundation FY16-FY23 1%+ from inorganic growth PERFORMANCE Emulate3D, Sensia, Kalypso, ASEM, Avnet, Oylo, Fiix, Plex, AVATA, Cubic, Inorganic Growth KnowledgeLens Contributed 1.4% Financial Framework Priorities: • Information Solutions and Connected Services • 30-35% earnings co
Slide 5: Next Horizon: New Strategic Growth Framework
Next Horizon: New Strategic Growth Framework Accelerating profitable growth with new ways to win CUSTOMER NEEDS EXAMPLE OF ROK DIFFERENTIATION LONG-TERM Faster secular Resiliency Cybersecurity, Augmented Workforce FINANCIAL FRAMEWORK growth Agility Multi-discipline Logix 3-5% Sustainability Energy T
Slide 6: Margin Expansion
Margin Expansion Margin Growth Drivers Long-term Range* • Share gain from next gen product launches across core platforms Intelligent Devices • Further synergies from recent acquisitions 22% - 24% • Product cost optimization • Continued share gains in Control Software • Further synergies from recent
Slide 7: Fiscal Year 2024
Fiscal Year 2024 Q1 FY24 Q2 FY24 2H FY24 FY24 FY24 Performance Drivers • Distributor inventory normalization in FQ2 Double-digit Double-digit Continued Low-single- • Continued positive end-market trends Orders sequential sequential sequential digit growth • Share gains with expanded portfolio growth
Slide 8: FY24 Margins
FY24 Margins Q1 FY24 Q2 FY24 FY24 Comments • Q2 margin similar to Q1 on flat sequential sales • Improving operational execution in Q2, but with higher Intelligent Devices 16% ~16% ~21% portion of sales dependent on new orders • 2H margin ramp on higher volume, flat spend, and better supply chain uti
Slide 9: Full Year Outlook
Full Year Outlook ▶ Orders still expected to increase low single digits year over year ▶ 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 to grow ~15% YOY ▶ C
Slide 10: Barclays Industrial Select Conference
Barclays Industrial Select Conference February 21, 2024
Slide 11: Appendix
Appendix PUBLI C | Copyright ©2024 Rockwell Automation, I nc. | 11
Slide 12: 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 13: 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 14: 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 15: Reconciliation to Non-GAAP Measures
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 16: Reconciliation to Non-GAAP Measures
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 17: Reconciliation to Non-GAAP Measures
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 18: 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, 2023 December 31, 2022 Net income attributable to Rockwell Automation $ 215.2 $ 384.0 Non-operating pension and postretirement
Slide 19: 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 (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 20: 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 $ ~ 1.4 Non-operating pension and postretirement benefit cost, net of tax ~ — Purchase accounting depreciation and amortization attributa
Slide 21: 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 22: Thank you
Thank you www.rockwellautomation.com PUBLI C | Copyright ©2024 Rockwell Automation, I nc. | 22
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