Slide 1: Fiscal Year 2016 Fourth Quarter Conference Call
Fiscal Year 2016 Fourth Quarter Conference Call November 7, 2016 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 Fourth Quarter and Full Year Results
Fiscal 2016 Fourth Quarter and Full Year Results Q4 Results ▪ Organic sales down 4.0% YOY ▪ YOY growth in the Architecture & Software segment ▪ Stabilization in some heavy industry markets ▪ Continued strength in consumer and automotive ▪ YOY growth in China ▪ Adjusted EPS of $1.52 including restruc
Slide 4: Key Financial Information: Fourth Quarter
Key Financial Information: Fourth Quarter (in millions, except per share amounts) Q4 2016 Q4 2015 YOY B/(W) Sales $ 1,539 $ 1,608 (4.3) % Segment Operating Margin 19.8 % 20.9 % (110) bps General Corporate - Net $ 25 $ 20 $ (5) Adjusted EPS $ 1.52 $ 1.57 (3.2) % Adjusted Effective Tax Rate 22.9 % 28.
Slide 5: Key Financial Information: Full Year
Key Financial Information: Full Year (in millions, except per share amounts) FY 2016 FY 2015 YOY B/(W) Sales $ 5,880 $ 6,308 (6.8) % Segment Operating Margin 20.2 % 21.6 % (140) bps General Corporate - Net $ 80 $ 86 $ 6 Adjusted EPS $ 5.93 $ 6.40 (7.3) % Adjusted Effective Tax Rate 23.6 % 27.0 % 340
Slide 6: Architecture & Software
Architecture & Software Sales Segment Operating Margin ($ millions) $3,000 $2,750 35% $2,635 29.4% $2,500 30% 27.3% 25.8% 26.4% 25% $2,000 20% $1,500 15% $1,000 $684 $696 10% $500 5% $0 0% Q4 FY Q4 FY 2015 2016 2015 2016 Fourth quarter segment operating margin YOY Sales % Change contracted 150 bps
Slide 7: Control Products & Solutions
Control Products & Solutions Sales Segment Operating Margin ($ millions) $4,000 $3,558 20% $3,244 16.2% 15.5% 14.8% 15.2% $3,000 15% $2,000 10% $924 $842 $1,000 5% $0 0% Q4 FY Q4 FY 2015 2016 2015 2016 Fourth quarter segment operating margin YOY Sales % Change contracted 140 bps YOY primarily due
Slide 8: Regional Sales
Regional Sales (in millions, except percentages) Q4 2016 FY 2016 Fourth Quarter * Organic Organic ▪ U.S. and Canada decline Region Sales % Change Sales % Change driven by heavy industries U.S. $ 822 (6.6)% $ 3,214 (6.9)% ▪ China up low-single digits Canada 79 (9.8)% 316 (6.8)% ▪ Continued growth in
Slide 9: Fiscal 2017 Guidance
Fiscal 2017 Guidance Full Year Outlook Sales Midpoint ~ $6B Organic Growth Range 0% to 4% Currency Translation ~ (0.5)% Acquisitions ~ 1.5% Segment Operating Margin ~ 20% Adjusted Effective Tax Rate ~ 24% Adjusted EPS $5.85 - $6.25 Free Cash Flow as a % of Adjusted Income ~ 100% Note: As of November
Slide 10: Fiscal 2016 to Fiscal 2017 Midpoint Adjusted EPS Walk
Fiscal 2016 to Fiscal 2017 Midpoint Adjusted EPS Walk ~ 0.35 ~ (0.25) ~ (0.05) ~ 0.15 $6.05 ~ (0.05) $5.93 ~ (0.05) FY 2016 Core Incentive Pension Currency Tax Rate* Share Count FY 2017 Actual Compensation Midpoint *Adjusted Effective Tax Rate Copyright © 2016 Rockwell Automation, Inc. All rights re
Slide 11: Appendix: Supplemental Financial Information and Reconciliation to Non-GAAP Measures
Appendix Supplemental Financial Information and Reconciliation to Non-GAAP Measures Copyright © 2014 Rockwell Automation, Inc. All rights reserved.
Slide 12: Fourth Quarter Results: Summary
Fourth Quarter Results: Summary (in millions, except per share amounts) Q4 2016 Q4 2015 Total Sales $ 1,538.6 $ 1,607.5 Total Segment Operating Earnings $ 304.3 $ 335.8 Purchase Accounting Depreciation and Amortization (4.5) (5.2) General Corporate - Net (25.2) (19.5) Non-Operating Pension Costs (19
Slide 13: Free Cash Flow
Free Cash Flow (in millions) Q4 2016 FY 2016 Net Income $ 185.2 $ 729.7 Depreciation/Amortization 43.0 172.2 Retirement Benefits Expense 39.6 157.1 Receivables/Inventory/Payables (4.1) 18.0 Compensation and Benefits — (81.1) Pension Contributions (12.5) (44.3) Income Taxes (24.6) (79.4) Other 45.4 7
Slide 14: Reconciliation to Non-GAAP Measures: Organic Sales by Region
Reconciliation to Non-GAAP Measures Organic Sales (in millions, except percentages) Three Months Ended September 30, 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) (
Slide 15: Reconciliation to Non-GAAP Measures: Organic Sales by Segment
Reconciliation to Non-GAAP Measures Organic Sales (in millions, except percentages) Three Months Ended September 30, 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) (
Slide 16: 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 Twelve Months Ended Twelve Months Ended September 30, 2016 September 30, 2015 September 30, 2016 September 30, 2015 Sales Architecture & Software (a) $ 696.4 $ 683.9 $
Slide 17: Reconciliation to Non-GAAP Measures: Adjusted Income, EPS and Tax Rate
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 Twelve Months Ended Twelve Months Ended September 30, 2016 September 30, 2015 September 30, 2016 September 30, 2015 Income f
Slide 18: 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 September 30, 2016 2015 (a) Return Income from continuing operations $ 729.7 $ 827.6 Interest expense 71.3 63.7 Income tax provision 213.4 299.9 Purchase accounting depreciation and a
Slide 19: Reconciliation to Non-GAAP Measures: Fiscal 2017 Guidance
Reconciliation to Non-GAAP Measures Fiscal 2017 Guidance (in billions, except percentages and per share amounts) Fiscal 2017 Organic Sales Guidance Organic sales growth 0% to 4% Foreign currency impact ~ (0.5)% Acquisition impact ~ 1.5% Reported sales growth 1% to 5% Segment Operating Margin Total s