Rockwell Automation, Inc. · NYSE:ROK

Rockwell Automation — Q2 2023 Earnings Presentation

25 slides from Rockwell Automation's earnings presentation, Apr 27, 2023

  1. Slide 1: Q2 Fiscal 2023 Earnings Presentation

    Q2 Fiscal 2023 Earnings Presentation April 27, 2023 PUBLIC PUBLIC | Copyright ©2023 Rockwell Automation, Inc. | 1 1

  2. 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

  3. Slide 3: Q2 FY23 Results Highlights

    Q2 FY23 Results Highlights ▶ Orders remained strong with $4.8B in the first half ▶ Cancellation rates remain in low single digits ▶ Reported sales up 25.8% YOY; Organic sales up 27.3% YOY ▶ Currency reduced sales 2.8% ▶ Acquisitions contributed 1.3% ▶ Information Solutions & Connected Services (IS/C

  4. Slide 4: Q2 FY23 Organic Industry Segment Performance

    Q2 FY23 Organic Industry Segment Performance % of Q2 Q2 FY23 Q2 FY23 FY23 Sales vs. Q2 FY22 vs. Q2 FY22  Automotive up ~40% ~25% Up ~20%  Semiconductor up mid teens DISCRETE  e-Commerce & Warehouse Automation down mid single digits  Food & Beverage up ~40% ~ 45% Up ~35%  Life Sciences up ~20% 

  5. Slide 5: Q2 FY23 Organic Sales Growth

    Q2 FY23 Organic Sales Growth EMEA North +41.7% America Asia % of +22.7% Pacific Reported +31.8% Sales Latin America +16.3% Double-digit YOY growth in all regions PUBLIC | Copyright ©2023 Rockwell Automation, Inc. | 5

  6. Slide 6: Full Year Outlook Update

    Full Year Outlook Update ▶ Total sales growth range of 12.5% - 16.5%; Organic growth range of 13% - 17% ▶ Currency to reduce sales ~(1.5) pts ▶ Acquisitions to contribute ~1.0 pt of growth ▶ Information Solutions & Connected Services (IS/CS) sales to grow double digits ▶ Organic ARR expected to grow

  7. Slide 7: FY23 Organic Industry Segment Outlook

    FY23 Organic Industry Segment Outlook % of FY23 Assumptions at B/(W) vs. FY23 Sales vs. FY22 Guidance Midpoint Prior Guidance  Automotive up high teens ~25% Up low teens  Semiconductor up high teens  e-Commerce & Warehouse Automation flat = DISCRETE  Food & Beverage up mid teens ~40% Up high tee

  8. Slide 8: Q2 FY23 Key Financial Information

    Q2 FY23 Key Financial Information ($ in millions, except per share amounts) Q2 FY23 Q2 FY22 YOY B/(W) Organic Growth +27.3 % Inorganic Growth +1.3 % Sales $2,275 $1,808 Currency Translation (2.8) % Reported Growth +25.8 % Segment Operating Margin 21.3% 15.7% 560 bps Corporate and Other $29 $25 $(4)

  9. Slide 9: Q2 FY23 Segment Results

    Q2 FY23 Segment Results Sales ($ in millions; YOY growth %) Segment Operating Margin Q1 FY23 Segment Highlights Organic +26.8 % Intelligent Inorganic +2.4 % 20.2% Higher segment margin driven by positive price/cost $1,023M +560 bps YOY and higher sales volume, partially offset by higher Devices Curr

  10. Slide 10: Q2 FY22 to Q2 FY23 Adjusted EPS Walk

    Q2 FY22 to Q2 FY23 Adjusted EPS Walk PUBLIC | Copyright ©2023 Rockwell Automation, Inc. | 10

  11. Slide 11: Fiscal Year 2023 Guidance

    Fiscal Year 2023 Guidance Updated Guidance Prior Guidance Sales Midpoint ~ $8.9B ~ $8.7B Organic Growth Range 13% - 17% 11% - 15% Inorganic Growth ~ 1.0% ~ 1.0% Currency Translation ~ (1.5)% ~ (2.0)% Segment Operating Margin ~ 21.5% ~ 21% Adjusted Effective Tax Rate ~ 17.5% ~ 18% Adjusted EPS Range

  12. Slide 12: FY23 Updated vs Prior Guidance Adjusted EPS Walk

    FY23 Updated vs Prior Guidance Adjusted EPS Walk $3.04 $3.04 Note: Updated Guidance as of April 27, 2023; Prior Guidance as of January 26, 2023 PUBLIC | Copyright ©2023 Rockwell Automation, Inc. | 12

  13. Slide 13: Q2 Fiscal 2023 Earnings Presentation

    Q2 Fiscal 2023 Earnings Presentation April 27, 2023 PUBLIC PUBLIC | Copyright ©2023 Rockwell Automation, Inc. | 13 13

  14. Slide 14: Appendix

    Appendix PUBLIC | Copyright ©2023 Rockwell Automation, Inc. | 14

  15. Slide 15: Industry Segmentation

    Industry Segmentation % of FY22 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

  16. Slide 16: Q2 FY23 Results: Summary

    Q2 FY23 Results: Summary ($ in millions, except per share amounts) Q2 2023 Q2 2022 Total Sales $ 2,275.4 $ 1,808.1 Total segment operating earnings $ 484.1 $ 283.4 Purchase accounting depreciation and amortization (26.6) (26.1) Corporate and other (29.2) (24.6) Non-operating pension and postretireme

  17. Slide 17: Reconciliation to Non-GAAP Measures

    Reconciliation to Non-GAAP Measures Free Cash Flow Three Months Ended Six Months Ended ($ in millions) Q2 2023 Q2 2022 Q2 2023 Q2 2022 Net Income $ 294.9 $ 49.4 $ 673.6 $ 288.3 Depreciation/Amortization 62.1 62.5 119.9 121.4 Change in Fair Value of Investments (1) (63.0) 140.7 (203.6) 133.1 Retireme

  18. Slide 18: Reconciliation to Non-GAAP Measures

    Reconciliation to Non-GAAP Measures Organic Sales ($ in millions) Three Months Ended March 31, 2023 2022 Effect of Effect of Reported Sales Less: Effect of Changes in Organic Sales Reported Less: Effect of Changes in Organic Reported Growth Acquisitions Currency Growth Sales(a) Acquisitions(e) Curre

  19. Slide 19: Reconciliation to Non-GAAP Measures

    Reconciliation to Non-GAAP Measures Segment Operating Margin ($ in millions) Three Months Ended March 31, 2023 March 31, 2022 Sales Intelligent Devices (a) $ 1,023.2 $ 808.6 Software & Control (b) 741.1 534.9 Lifecycle Services (c) 511.1 464.6 Total sales (d) $ 2,275.4 $ 1,808.1 Segment operating ea

  20. Slide 20: 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 March 31, 2023 March 31, 2022 Net income attributable to Rockwell Automation $ 300.3 $ 53.9 Non-operating pension and postretirement benefit

  21. Slide 21: Reconciliation to Non-GAAP Measures

    Reconciliation to Non-GAAP Measures Return On Invested Capital ($ in millions) Twelve Months Ended March 31, 2023 2022 (a) Return Net income $ 1,304.4 $ 631.9 Interest expense 133.5 108.4 Income tax provision 264.9 9.5 Purchase accounting depreciation and amortization 104.3 82.5 Return $ 1,807.1 $ 8

  22. Slide 22: Reconciliation to Non-GAAP: Fiscal 2023 Guidance

    Reconciliation to Non-GAAP Fiscal 2023 Guidance Measures ($ in billions, except per share amounts) Organic Sales Fiscal 2023 Guidance Reported sales growth 12.5% - 16.5% Less: Inorganic sales growth ~ 1.0% Foreign currency impact ~ (1.5)% Organic sales growth 13% - 17% Segment Operating Margin Total

  23. Slide 23: Reconciliation to Non-GAAP Measures

    Reconciliation to Non-GAAP Measures Free Cash Flow Conversion ($ in billions) Fiscal 2023 Guidance Net income attributable to Rockwell Automation at the mid-point $ ~ 1.4 Non-operating pension and postretirement benefit cost, net of tax (1) ~ 0.1 Purchase accounting depreciation and amortization att

  24. Slide 24: 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

  25. Slide 25: Thank you

    Thank you www.rockwellautomation.com PUBLIC | Copyright ©2023 Rockwell Automation, Inc. | 25 25

Rockwell Automation — Q2 2023 Earnings Presentation on 6ix