2018 epg presentation final kmk - s21.q4cdn.com · title: 2018 epg presentation final_kmk author:...

Copyright © 2018 Rockwell Automation, Inc. All Rights Reserved.PUBLIC Copyright © 2018 Rockwell Automation, Inc. All Rights Reserved.PUBLIC

EPG Conference

Blake MoretChairman and Chief Executive OfficerMay 21, 2018

2Copyright © 2018 Rockwell Automation, Inc. All Rights Reserved.PUBLIC

SAFE HARBOR STATEMENTTHIS 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.

THIS PRESENTATION ALSO CONTAINS NON-GAAP FINANCIAL

INFORMATION AND RECONCILIATIONS TO GAAP ARE INCLUDED IN THE

APPENDIX. ALL INFORMATION SHOULD BE READ IN CONJUNCTION WITH

OUR HISTORICAL FINANCIAL STATEMENTS.


at A GLANCE

80+COUNTRIES

22,000$6.3B

§ Innovation§ Domain expertise§ Culture of integrity

& corporate responsibility

SERVINGCUSTOMERS FOR

115 YRS

FISCAL 2017 SALES

WORLD’S LARGEST COMPANY DEDICATED TO INDUSTRIAL AUTOMATION AND INFORMATION

VALUE CREATIONABOVE-MARKET GROWTH | PRODUCTIVITY | INTELLECTUAL CAPITAL

EMPLOYEES

for a broad rangeof industries

AUTOMATION SOLUTIONS


Fiscal 2018 First Half Highlights

ORGANIC SALES

SEGMENT OPERATING MARGIN

ADJUSTED EPS$3.85, up 17% YOY

FREE CASH FLOWConversion of 108%

CAPITAL DEPLOYMENTRedeployed ~$0.9B in

dividends and repurchases

4.4% YOY

Broad-based growth

across all regions

Growth led by heavy

industries

Automotive sales down YOY, but up sequentially

from Q1 to Q2 – recovery

in MRO business

Emerging markets up high

single digits

150 bps YOY

Strong performance driven by

higher sales and productivity,

partially offset by investments

Ramping up investments to accelerate profitable growth

and increase long-term

differentiation

§ First half R&D spend up

9% YOY


§ Solid macroeconomic indicators and favorable globalmanufacturing environment

§ Early stages of manufacturing expansion cycle

§ Continued broad-based organic growth across mostregions and verticals

§ Heavy Industry verticals – largest growth driver§ Transportation expected to grow sequentially; flat to

slightly down for the full year§ Strong H1 book-to-bill and backlog expected to drive

higher Solutions & Services growth§ Increasing investments to expand the value of

The Connected Enterprise§ Integration of our software with other design tools§ Scalable analytics and subscription services

Fiscal 2018 Second Half Outlook


APRILGUIDANCE

JANUARYGUIDANCE

Sales ~ $6.7B ~ $6.7B

Organic Growth Range 3.5% to 6.5% 3.5% to 6.5%

Currency Translation ~ 2% ~ 2%

Divestiture ~ (1)% ~ (1)%

Segment Operating Margin ~ 21.5% ~ 21.5%

Adjusted Effective Tax Rate ~ 20.5% ~ 21%

Adjusted EPS $7.70 - $8.00 $7.60 - $7.90

Free Cash Flow as a % of Adjusted Income ~ 105% ~ 100%

Note: As of April 25, 2018

Revised Fiscal 2018 Guidance


Open – Secure – Scalable

7Copyright © 2018 Rockwell Automation, Inc. All Rights Reserved.PUBLIC Copyright © 2018 Rockwell Automation, Inc. All Rights Reserved.PUBLIC


Access to Real-time Data

Simplicity of a Single Platform

Open Architecture –Partnership Approach

The Connected EnterpriseWhat Sets Us Apart

Information Solutions and Connected Services revenue approaching $300M in FY18, growing double digits

Scalable AnalyticsDomain Expertise to Contextualize and Convert Data into Actionable Insights

UNDERSTANDING COMBINING SIMPLIFYING


DISCRETE HYBRID PROCESS

Connected Enterprise Pilots

A S S E T M A N A G E M E N T &R E L I A B I L I T Y

O P E R A T I O N A L P R O D U C T I V I T Y

E N T E R P R I S ER I S K

OIL & GAS, CHEMICALTRANSPORTATION LIFE SCIENCESCONSUMER MINING & CEMENT


Connected Enterprise Multi-site Rollouts

A S S E T M A N A G E M E N T &R E L I A B I L I T Y

O P E R A T I O N A L P R O D U C T I V I T Y

E N T E R P R I S ER I S K

OIL & GAS, CHEMICALTRANSPORTATION LIFE SCIENCESCONSUMER MINING & CEMENT

DISCRETE HYBRID PROCESS


Process Success and Growth

I N D U S T R Y C U S T O M E R R E S U L T

• Real-time & consolidated reporting• Five month ROI

• Capacity up over 4%• Decreased energy usage

• 49% decrease in variability• 38% increase in quality

Advanced Petrochemicalsof Saudi Arabia

• Easy integration (no downtime)• Improved operations

F I R S T H A L F 2 0 1 8

Process organic growth

Overall company organic growth

10% YOY

4.4% YOY

S E C O N D H A L F 2 0 1 8

Continued Investment

ExpandingCapabilities

Technology and Domain Expertise

CHEMICALS

CHEMICALS

MINING

FOOD & BEV


C U S T O M E R S U C C E S S

CHALLENGE

Automate process equipment and power

control systems for NioCorp’s critical

minerals, mining and processing facility

of superalloy metals

SOLUTION

Collaborative solution for standardization,

control and connectivity across operations

“ T h e c o m b i n a t i o n o f i n d u s t r y e x p e r t i s e , p r o v e n m e t h o d o l o g i e s a n d a d v a n c e d

a u t o m a t i o n t e c h n o l o g y s h o u l d h e l p u s d e v e l o p a t r u l y w o r l d - c l a s s m i n e . ”

- Mark Smith, Executive Chairman and CEO, NioCorp


Increased Capital DeploymentDisciplined capital deployment will continue

§ Organic growth – mainly P&L investments

§ FY17 restructuring helps fund increased investments while retaining ~35% earnings conversion

§ Acquisitions

§ Expanded corporate development team fully staffed

§ Active pipeline for partnerships and acquisitions

§ Key areas: information software, connected services, process expertise, regional share expansion with smart products

§ Dividends and share repurchases

§ Increased share repurchase target from $0.5B to $1.2B for FY18

§ Increased dividend by 10% in November 2017 and by 10% in April 2018

2018 epg presentation final kmk - s21.q4cdn.com · title: 2018 epg presentation final_kmk author:...

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