Rockwell Automation, Inc. · NYSE:ROK
Rockwell Automation — Q1 FY2020 Earnings Presentation
22 slides from Rockwell Automation's earnings presentation, Jan 29, 2020
Slide 1: Fiscal Year 2020 First Quarter Conference Call
Fiscal Year 2020 First Quarter Conference Call January 29, 2020 PUBLIC 1
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 LISTED
Slide 3: Q1 FY20 and Full Year Outlook
Q1 FY20 and Full Year Outlook Q1 HIGHLIGHTS FY20 OUTLOOK ▪ Reported sales up 3% YOY ▪ Signs of stabilization in the macro environment – Significant contribution from inorganic ▪ Reaffirming guidance investments of 4.5% – Organic sales flat YOY at the midpoint ▪ Organic sales (1)% YOY, in line with e
Slide 4: Organic Industry Segment Performance and Outlook
Organic Industry Segment Performance and Outlook % of Q1 FY20 FY20 Assumptions at Q1 FY20 Sales vs. Q1 FY19 Q1 FY20 vs. Q1 FY19 Guidance Midpoint Discrete Automotive up mid single digits Up low single ~ 25% digits Semiconductor up high single Down low single digits digits Food & Beverage down
Slide 5: Q1 FY20 Organic Sales Growth
Q1 FY20 Organic Sales Growth North America (3.3)% EMEA Highlights * +1.6% • North America weakness driven by process industries, partially offset by Automotive and Semiconductor • EMEA growth driven by Oil & Gas, Life Sciences, and Tire • Asia Pacific strength led by Oil Asia Pacific & Gas, Life Sci
Slide 6: Inorganic Investments Highlights
Information Solutions / Connected Services Inorganic Investments Highlights Process Expertise Market access in Europe / Asia Top line growing double digits Acquired in Q1 FY20 Transaction expected to close with strong traction at marquis Q2 FY20 Global provider of industrial O&
Slide 7: Q1 FY20 Key Financial Information
Q1 FY20 Key Financial Information ($ in millions, except per share amounts) Q1 FY20 Q1 FY19 YOY B/(W) Organic Growth (1.0)% Inorganic Growth +4.5% SALES $1,685 $1,642 Currency Translation (0.9)% Reported Growth +2.6% SEGMENT OPERATING MARGIN 20.1% 22.8% (270) bps GENERAL CORPORATE - NET $33 $22 $(11
Slide 8: Q1 FY20 Segment Results
Q1 FY20 Segment Results SALES SEGMENT OPERATING HIGHLIGHTS ($ in millions) MARGIN Strong segment operating margin performance $751.6 29.8% ▪ YOY decline of (170) bps primarily due to ARCHITECTURE Organic +0.7% (170) bps higher investment spending & SOFTWARE Inorganic +0.1% Currency (1.0)% Reported (
Slide 9: FY20 guidance
FY20 guidance November January Guidance Guidance Sales Midpoint ~ $7.0B ~ $7.0B Organic Growth Range (1.5)% - 1.5% (1.5)% - 1.5% Inorganic Growth ~ 4% ~ 4% Currency Translation ~ (0.5)% ~ (0.5)% Segment Operating Margin ~ 21.5% ~ 21.5% Adjusted Effective Tax Rate1 ~ 16.0% ~ 15.5% Adjusted EPS2 $8.70
Slide 10: Appendix
Appendix Supplemental Financial Information and Reconcilations to Non-GAAP Measures 10
Slide 11: Q1 FY20 year-over-year impacts of Sensia
Q1 FY20 year-over-year impacts of Sensia Intangible One-time Tax Total Operations Amortization items5 benefit reported Sales1 $72M $72M Segment operating earnings1 $13M4 $(15)M $(2)M General Corporate – net $(6)M $(6)M Purchase accounting amort $(6)M $(6)M Tax provision $19M $19M Adjusted EPS before
Slide 12: FY20 estimated year-over-year impacts of Sensia
FY20 estimated year-over-year impacts of Sensia Intangible One-time Tax Total Operations Amortization items5 benefit reported Sales1 ~$270M ~$270M Segment operating earnings1 ~$35-$40M4 ~$(20)M ~$20M General Corporate – net ~$(5)M ~$(5)M Purchase accounting amort ~$(25)M ~$(25)M Tax provision ~$20M
Slide 13: Q1 FY20 Results: Summary
Q1 FY20 Results: Summary ($ in millions, except per share amounts) Q1 2020 Q1 2019 Total Sales $ 1,684.5 $ 1,642.3 Total Segment Operating Earnings $ 339.1 $ 374.9 Purchase Accounting Depreciation and Amortization (10.0) (4.1) General Corporate - Net (32.8) (21.9) Non-operating pension and postretir
Slide 14: Free Cash Flow
Free Cash Flow ($ in millions) Q1 2020 Q1 2019 Net Income $ 315 $ 80 Depreciation/Amortization 42 36 Retirement Benefits Expense 32 17 Receivables/Inventory/Payables (84) (90) Compensation and Benefits (39) (85) Pension Contributions (7) (6) Income Taxes (17) 12 Change in fair value of investments1
Slide 15: Industry Segmentation
Industry Segmentation % of FY19 Sales Discrete Hybrid Process ~10% Automotive ~20% Food & Beverage ~10% Oil & Gas ~5% Semiconductor ~5% Life Sciences ~5% Mining, Aggregates & ~5% Household & Personal Care Cement ~5% General Industries ~5% Tire ~5% Metals • Warehousing & Logistics • Printing & Publis
Slide 16: Reconciliation to Non-GAAP Measures
Reconciliation to Non-GAAP Measures Organic Sales ($ in millions) Three Months Ended December 31, 2019 2018 Reported Sales Sales Currency Acquisition Organic Effect of Excluding Growth Growth Growth Growth Changes in Changes in Effect of Organic (Decline) (Decline) (Decline) (Decline) Sales(a) Curre
Slide 17: Reconciliation to Non-GAAP Measures
Reconciliation to Non-GAAP Measures Segment Operating Margin ($ in millions) Three Months Ended December 31, 2019 December 31, 2018 Sales Architecture & Software (a) $ 751.6 $ 753.1 Control Products & Solutions (b) 932.9 889.2 Total sales (c) $ 1,684.5 $ 1,642.3 Segment operating earnings Architectu
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, 2019 December 31, 2018 Net Income attributable to Rockwell Automation $ 310.7 $ 80.3 Non-operating pension and postretirement b
Slide 19: Reconciliation to Non-GAAP Measures
Reconciliation to Non-GAAP Measures Return On Invested Capital ($ in millions) Twelve Months Ended December 31, 2019 2018 (a) Return Net income $ 930.9 $ 852.2 Interest expense 103.9 73.7 Income tax provision 183.9 301.6 Purchase accounting depreciation and amortization 22.5 17.1 Return 1,241.2 1,24
Slide 20: Reconciliation to Non-GAAP Measures
Reconciliation to Non-GAAP Measures Logix Sales Growth Three Months Ended December 31, 2019 Logix Logix reported growth (3) % Effect of currency translation 1 % Logix organic growth (2) % Control Products & Solutions Sales Growth Three Months Ended December 31, 2019 Control Products Control Products
Slide 21: Reconciliation to Non-GAAP Measures
Reconciliation to Non-GAAP Measures Fiscal 2020 Guidance ($ in billions, except per share amounts) Organic Sales Fiscal 2020 Guidance Organic sales growth (1.5)% - 1.5% Inorganic sales growth ~ 4% Foreign currency impact ~ (0.5)% Reported sales growth 2% - 5% Segment Operating Margin Total sales (a)
Slide 22: Thank you
Thank you www.rockwellautomation.com 22
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