Rockwell Automation, Inc. · NYSE:ROK
Rockwell Automation — Q2 2017 Earnings Presentation
17 slides from Rockwell Automation's earnings presentation, Apr 26, 2017
Slide 1: Fiscal Year 2017 Second Quarter Conference Call
Rockwell Automation Fiscal Year 2017 Second Quarter Conference Call April 26, 2017 Copyright © 2017 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 LISTED
Slide 3: Fiscal 2017 Second Quarter Results and Full Year Outlook
Fiscal 2017 Second Quarter Results and Full Year Outlook Q2 Results ▪ Organic sales up 6.8% YOY – Broad-based growth across most regions and industries – Transportation was particularly strong – Signs of improvement in certain heavy industries – A&S growth of 14%; Logix growth of 13% ▪ Acquisitions
Slide 4: Key Financial Information: Second Quarter
Key Financial Information: Second Quarter (in millions, except per share amounts) Q2 2017 Q2 2016 YOY B/(W) Sales $ 1,554 $ 1,440 7.9 % Segment Operating Margin 19.0 % 19.3 % (30) bps General Corporate - Net $ 21 $ 20 $ (1) Adjusted EPS $ 1.55 $ 1.37 13.1 % Adjusted Effective Tax Rate 19.2 % 23.7 %
Slide 5: Architecture & Software
Architecture & Software Sales Segment Operating Margin ($ millions) $1,800 40% $1,415 $1,400 $1,272 30% 26.5% 28.2% 24.6% 26.0% $1,000 20% $719 $630 $600 10% $200 0% Q2 YTD Q2 YTD 2016 2017 2016 2017 YOY Sales % Change ▪ Segment operating margin expanded 190 Q2 2017 YTD bps in Q2, primarily due to h
Slide 6: Control Products & Solutions
Control Products & Solutions Sales Segment Operating Margin ($ millions) $2,000 20% $1,595 $1,629 15.2% 15.2% $1,600 15% 13.1% 12.6% $1,200 10% $811 $835 $800 5% $400 0% Q2 YTD Q2 YTD 2016 2017 2016 2017 YOY Sales % Change ▪ Segment operating margin contracted Q2 2017 YTD 260 bps in Q2, primarily du
Slide 7: Regional Sales
Regional Sales (in millions, except percentages) Q2 2017 YTD Second Quarter * Organic Organic ▪ U.S. and Canada growth Region Sales % Change Sales % Change led by transportation ▪ EMEA returned to U.S. $ 869 5.2% $ 1,689 3.5% growth, as expected ▪ Broad-based growth in Canada 85 7.9% 168 6.6% Asia P
Slide 8: Revised Fiscal 2017 Guidance
Revised Fiscal 2017 Guidance April January Guidance Guidance Sales Midpoint ~ $6.25B ~ $6B Organic Growth Range 4.5% to 7.5% 1% to 5% Currency Translation ~ (1.5)% ~ (2.0)% Acquisitions ~ 1.5% ~ 1.5% Segment Operating Margin ~ 20.5% ~ 20% Adjusted Effective Tax Rate ~ 22% ~ 23.5% Adjusted EPS $6.45
Slide 9: Appendix: Supplemental Financial Information and Reconciliations to Non-GAAP Measures
Appendix Supplemental Financial Information and Reconciliations to Non-GAAP Measures Copyright © 2017 Rockwell Automation, Inc. All rights reserved.
Slide 10: Second Quarter Results: Summary
Second Quarter Results: Summary (in millions, except per share amounts) Q2 2017 Q2 2016 Total Sales $ 1,554.3 $ 1,440.3 Total Segment Operating Earnings $ 296.0 $ 277.5 Purchase Accounting Depreciation and Amortization (5.6) (4.5) General Corporate - Net (21.4) (19.5) Non-Operating Pension Costs (19
Slide 11: Free Cash Flow
Free Cash Flow (in millions) Q2 2017 YTD Net Income $ 189.5 $ 404.2 Depreciation/Amortization 40.6 81.0 Retirement Benefits Expense 43.1 86.1 Receivables/Inventory/Payables 19.3 (13.0) Compensation and Benefits 28.8 51.2 Pension Contributions (15.0) (28.5) Income Taxes (30.0) (7.7) Other 24.7 38.5 C
Slide 12: Reconciliation to Non-GAAP Measures
Reconciliation to Non-GAAP Measures Organic Sales (in millions, except percentages) Three Months Ended March 31, 2017 2016 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
Reconciliation to Non-GAAP Measures Organic Sales (in millions, except percentages) Three Months Ended March 31, 2017 2016 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
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, 2017 March 31, 2016 March 31, 2017 March 31, 2016 Sales Architecture & Software (a) $ 719.0 $ 629.5 $ 1,415.4 $ 1,272.4 Con
Slide 15: 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 Three Months Ended Six Months Ended Six Months Ended March 31, 2017 March 31, 2016 March 31, 2017 March 31, 2016 Income from continuing operati
Slide 16: Reconciliation to Non-GAAP Measures
Reconciliation to Non-GAAP Measures Return On Invested Capital (in millions, except percentages) Twelve Months Ended March 31, 2017 2016 (a) Return Income from continuing operations $ 780.4 $ 760.9 Interest expense 73.9 68.1 Income tax provision 196.7 256.5 Purchase accounting depreciation and amort
Slide 17: Reconciliation to Non-GAAP Measures
Reconciliation to Non-GAAP Measures Fiscal 2017 Guidance (in billions, except percentages and per share amounts) Organic Sales April Guidance January Guidance Organic sales growth 4.5% to 7.5% 1% to 5% Foreign currency impact ~ (1.5)% ~ (2.0)% Acquisition impact ~ 1.5% ~ 1.5% Reported sales growth 4