Emerson Electric Company · NYSE:EMR
Emerson Electric — Q1 2023 Earnings Presentation
23 slides from Emerson Electric's earnings presentation, Feb 8, 2023
Slide 1: Emerson 2023 Q1 Earnings
Emerson 2023 Q1 Earnings February 8, 2023
Slide 2: Safe Harbor Statement
Safe Harbor Statement Statements in this presentation and our commentary and responses to questions that are not strictly historical may be “forward-looking” statements, which involve risks and uncertainties, and Emerson undertakes no obligation to update any such statements to reflect later develop
Slide 3: 2023 Q1 Summary
2023 Q1 Summary Results Guidance Comments Underlying orders as expected with broad strength partially Underlying Orders 5% offset by Safety & Productivity orders down double digits Underlying sales within expected range led by Americas and Underlying Sales Growth 6% 6% – 8% Software and Control, par
Slide 4: Immediate Progress On Our Value Creation Priorities
Immediate Progress On Our Value Creation Priorities INNOVATION / ENERGY TRANSITION OPERATIONAL EXCELLENCE NEOM Green Hydrogen Company Emerson to provide automation solutions for world’s State-of-the-art innovation and largest green hydrogen production facility manufacturing hub in Saudi Arabia INDUS
Slide 5: 2023 Q1 Performance Summary
2023 Q1 Performance Summary SALES ADJUSTED SEGMENT ADJUSTED EPS FREE CASH FLOW EBITA $3.4B 22.7% $0.79 $0.78 $304M $3.2B 21.4% $243M 6% Underlying 130 bps 1% 20% 2022 2023 2022 2023 2022 2023 2022 2023 4 pt headwind from FX; Operating leverage (excluding $0.15 contributed from Impacted by trade work
Slide 6: 2022 Q1 To 2023 Q1 Adjusted EPS Bridge
2022 Q1 To 2023 Q1 Adjusted EPS Bridge $0.15 ($0.09) ($0.09) $0.79 $0.01 $0.01 $0.78 Pension $0.02 Other ($0.01) (1%) YoY 2022 Operations Stock FX Other Share 2023 Compensation Non-Operating Count 6
Slide 7: 2023 Industry Outlook
2023 Industry Outlook Energy transition spend continues to accelerate PROCESS MSD- HSD Underlying Sales LNG momentum in North America and Middle East Asia and U.S. chemical remains strong Reshoring trends driving life sciences activity HYBRID MSD- HSD Underlying Sales Lithium and battery metals dr
Slide 8: 2023 Continuing Operations Guidance
2023 Continuing Operations Guidance KEY ASSUMPTIONS 2023 Q2 2023 Net Sales Growth 10.5% – 12.5% 8% – 10% Robust backlog1 ($6.6B) FX (~3 pts) (~2 pts) supports rest of year Acquisitions / Divestitures ~5.5 pts ~3.5 pts sales growth Underlying Sales Growth 8% – 10% 6.5% – 8.5% Tax rate: ~22.5% Operati
Slide 9: Appendix
Appendix
Slide 10: Endnotes
Endnotes Operating Leverage, or Incremental Margins, throughout the presentation is defined as the ratio of the change in adjusted segment EBITA for the current period less the prior period, divided by the change in the net sales for the current period less the prior period. Continuing Operations: F
Slide 11: 2023 Q1 Operations Summary
2023 Q1 Operations Summary Sales Underlying Sales Growth Adjusted EBITA % AspenTech $243M --- 37% Control Systems & Software $606M 10% 19% Software and Control $849M 10% 24% 200 bps Final Control $862M 10% 21% Measurement & Analytical $749M 6% 24% Discrete Automation $618M 6% 21% Safety & Producti
Slide 12: Corporate And Other Items
Corporate And Other Items 2023 Q1 2023 Q2 Expectations 2023 Expectations Stock Compensation ($102) ~($50) ~($250) Pension $45 ~$45 ~$180 Interest Expense ($48) ~($50) ~$45 Interest on Note Receivable From Climate Technologies1 --- --- ~($70) Interest Income on Undeployed Proceeds1 --- --- ~($175) Ad
Slide 13: AspenTech Contribution To Emerson 2023 Q1 Adjusted EBITA
AspenTech Contribution To Emerson 2023 Q1 Adjusted EBITA AspenTech Reported Financials Emerson Reported AspenTech Segment (Millions) 2023 Q1 (Millions) 2023 Q1 Sales $243 AspenTech sales $243 Net income ($66) AspenTech segment earnings (EBIT) ($33) Income taxes $49 Restructuring --- Income before in
Slide 14: AspenTech Contribution To Emerson 2023 Q1 GAAP EPS And Adjusted EPS
AspenTech Contribution To Emerson 2023 Q1 GAAP EPS And Adjusted EPS AspenTech Reported Financials Emerson EPS Contribution (Millions) 2023 Q1 (Millions) 2023 Q1 Sales $243 Sales $243 Net income ($66) Net earnings ($12) Interim tax reporting $54 Non-controlling interest $5 Net earnings common stockho
Slide 15: Reconciliation Of Non-GAAP Measures
Reconciliation Of Non-GAAP Measures This information reconciles non-GAAP measures with the most directly comparable GAAP measure (dollars in millions, except per share amounts) Software and Q1 2023 Underlying Sales Change Emerson Control Intelligent Devices Reported (GAAP) 7% 30% 1% (Favorable) / Un
Slide 16: Reconciliation Of Non-GAAP Measures
Reconciliation Of Non-GAAP Measures This information reconciles non-GAAP measures with the most directly comparable GAAP measure (dollars in millions, except per share amounts) Adjusted Business Segment EBITA Leverage Q1 FY23 Pretax margin leverage (239)% Corp items and interest expense, net/ amorti
Slide 17: Reconciliation Of Non-GAAP Measures
Reconciliation Of Non-GAAP Measures This information reconciles non-GAAP measures with the most directly comparable GAAP measure (dollars in millions, except per share amounts) Earnings Per Share Q1 FY22 Q1 FY23 Change Earnings per share (GAAP) $ 1.25 $ 0.56 (55)% Amortization of intangibles 0.09 0.
Slide 18: Reconciliation Of Non-GAAP Measures
Reconciliation Of Non-GAAP Measures This information reconciles non-GAAP measures with the most directly comparable GAAP measure (dollars in millions, except per share amounts) FY23 EPS Growth Earnings Per Share Growth Midpoint Earnings per share (GAAP) ~ 15% Amortization of intangibles ~ 15% Restru
Slide 19: Reconciliation Of Non-GAAP Measures
Reconciliation Of Non-GAAP Measures This information reconciles non-GAAP measures with the most directly comparable GAAP measure (dollars in millions, except per share amounts) Software and Control Segment EBIT Margin Q1 FY22 Q1 FY23 Change Software and Control Segment EBIT margin (GAAP) 17.6% 8.7%
Slide 20: Reconciliation Of Non-GAAP Measures
Reconciliation Of Non-GAAP Measures This information reconciles non-GAAP measures with the most directly comparable GAAP measure (dollars in millions, except per share amounts) Final Control EBIT Margin Q1 FY22 Q1 FY23 Change Final Control EBIT margin (GAAP) 15% 18% 300 bps Amortization of intangibl
Slide 21: Reconciliation Of Non-GAAP Measures
Reconciliation Of Non-GAAP Measures This information reconciles non-GAAP measures with the most directly comparable GAAP measure (dollars in millions, except per share amounts) Cash Flow Q1 FY22 Q1 FY23 Change Operating cash flow (GAAP) $ 377 $ 302 (20)% Capital expenditures (73) (59) -% Free cash f
Slide 22: Additional Information And Where To Find It
Additional Information And Where To Find It This communication relates to a proposal which Emerson Electric Co. ("Emerson") has made for a business combination transaction (the "Proposed Transaction") with National Instruments Corporation, a Delaware corporation (the "Company"). This communication d
Slide 23: Additional Information And Where To Find It
Additional Information And Where To Find It Caution Concerning Forward-Looking Statements This communication contains "forward-looking" statements as that term is defined in Section 27A of the Securities Act and Section 21E of the Exchange Act, as amended by the Private Securities Litigation Reform
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