Slide 1: Fiscal Year 2016 Second Quarter Conference Call
Fiscal Year 2016 Second Quarter Conference Call April 27, 2016 Rev 5058-CO900A Copyright © 2016 Rockwell Automation, Inc. All rights reserved.
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 liste
Slide 3: Fiscal 2016 Second Quarter and First Half Results
Fiscal 2016 Second Quarter and First Half Results Q2 Results ▪ Organic sales down 3.6% YOY ▪ Weak heavy industries, growth in consumer and auto ▪ Modest sequential growth in U.S. and China ▪ Adjusted EPS of $1.37 ▪ Strong cash flow conversion; ROIC of 32% First Half ▪ Organic sales down 3.5% YOY ▪ S
Slide 4: Key Financial Information: Second Quarter
Key Financial Information: Second Quarter (in millions, except per share amounts) Q2 2016 Q2 2015 YOY B/(W) Sales $ 1,440 $ 1,551 (7.1)% Segment Operating Margin 19.3% 21.6% (230) bps General Corporate - Net $ 20 $ 21 $ 1 Adjusted EPS $ 1.37 $ 1.59 (13.8)% Adjusted Effective Tax Rate 23.7% 26.0% 230
Slide 5: Architecture & Software
Architecture & Software Sales Segment Operating Margin ($ millions) $1,800 40% $1,382 29.8% 30.5% $1,400 $1,272 30% 26.0% 24.6% $1,000 20% $674 $630 $600 10% $200 0% Q2 YTD Q2 YTD 2015 2016 2015 2016 YOY Sales % Change ▪ Segment operating margin contracted Q2 2016 YTD 520 bps in Q2, primarily due to
Slide 6: Control Products & Solutions
Control Products & Solutions Sales Segment Operating Margin ($ millions) $2,000 20% $1,743 $1,595 15.2% 15.2% 14.8% 15.2% $1,600 15% $1,200 10% $877 $811 $800 5% $400 0% Q2 YTD Q2 YTD 2015 2016 2015 2016 YOY Sales % Change ▪ Segment operating margin remained flat Q2 2016 YTD in Q2, primarily due to
Slide 7: Regional Sales
Regional Sales (in millions, except percentages) Q2 2016 YTD Organic Organic Region Sales % Change Sales % Change Second Quarter * ▪ Weak heavy industries in U.S. $ 805 (6.7)% 1,592 (6.3)% the U.S., driven by oil and gas Canada 76 (1.9)% 155 (5.1)% ▪ EMEA decline primarily due to project timing in E
Slide 8: Revised Fiscal 2016 Guidance
Revised Fiscal 2016 Guidance April January Guidance Guidance Sales Midpoint ~ $5.9B ~ $5.9B Organic Growth Range (4.5)% to (1.5)% (5)% to (1)% Currency Translation ~ (3)% ~ (4)% Segment Operating Margin ~ 20.5% ~ 20.5% Adjusted Effective Tax Rate ~ 25% ~ 25% Adjusted EPS $5.75 - $6.15 $5.70 - $6.20
Slide 9: Supplemental Financial Information and Reconciliations
Appendix Supplemental Financial Information and Reconciliations to Non-GAAP Measures Copyright Copyright ©© 2014 2014 Rockwell Rockwell Automation, Automation, Inc. Inc. All All rights rights reserved. reserved.
Slide 10: Second Quarter Results: Summary
Second Quarter Results: Summary (in millions, except per share amounts) Q2 2016 Q2 2015 Total Sales $ 1,440.3 $ 1,550.8 Total Segment Operating Earnings $ 277.5 $ 334.2 Purchase Accounting Depreciation and Amortization (4.5) (5.2) General Corporate - Net (19.5) (21.4) Non-Operating Pension Costs (18
Slide 11: Free Cash Flow
Free Cash Flow (in millions) Q2 2016 YTD Net Income $ 168.0 $ 353.5 Depreciation/Amortization 45.1 86.4 Retirement Benefits Expense 39.0 78.2 Receivables/Inventory/Payables 19.6 (17.0) Compensation and Benefits 6.9 (73.7) Pension Contributions (10.6) (21.2) Income Taxes (69.3) (58.0) Other 15.8 51.1
Slide 12: Reconciliation to Non-GAAP Measures: Organic Sales by Region
Reconciliation to Non-GAAP Measures Organic Sales (in millions, except percentages) Three Months Ended March 31, 2016 2015 Sales Sales Organic Effect of Excluding Growth Growth Changes in Changes in Effect of Organic (Decline) (Decline) Sales(a) Currency Currency Acquisitions Sales(b) Sales(c) (a)/(
Slide 13: Reconciliation to Non-GAAP Measures: Organic Sales by Segment
Reconciliation to Non-GAAP Measures Organic Sales (in millions, except percentages) Three Months Ended March 31, 2016 2015 Sales Sales Organic Effect of Excluding Growth Growth Changes in Changes in Effect of Organic (Decline) (Decline) Sales(a) Currency Currency Acquisitions Sales(b) Sales(c) (a)/(
Slide 14: Reconciliation to Non-GAAP Measures: Segment Operating Margin
Reconciliation to Non-GAAP Measures Segment Operating Margin (in millions, except percentages) Three Months Ended Three Months Ended Six Months Ended Six Months Ended March 31, 2016 March 31, 2015 March 31, 2016 March 31, 2015 Sales Architecture & Software (a) $ 629.5 $ 674.3 $ 1,272.4 $ 1,382.1 Con
Slide 15: Reconciliation to Non-GAAP Measures: Adjusted Income and EPS
Reconciliation to Non-GAAP Measures Adjusted Income, Adjusted EPS and Adjusted Effective Tax Rate (in millions, except per share amounts) Three Months Ended Three Months Ended Six Months Ended Six Months Ended March 31, 2016 March 31, 2015 March 31, 2016 March 31, 2015 Income from continuing operati
Slide 16: Reconciliation to Non-GAAP Measures: Return On Invested Capital
Reconciliation to Non-GAAP Measures Return On Invested Capital (in millions, except percentages) Twelve Months Ended March 31, 2016 2015 (a) Return Income from continuing operations $ 760.9 $ 868.6 Interest expense 68.1 60.0 Income tax provision 256.5 308.4 Purchase accounting depreciation and amort