Sanford Bernstein Conference Rockwell Automation Keith D. Nosbusch Chairman and CEO May 31, 2013 Rev 5058-CO900D
Safe Harbor Statement This presentation contains statements (including certain projections and business trends) that are forward-looking statements as defined in the Private Securities Litigation Reform Act of 1995. Words such as believe, estimate, project, plan, expect, anticipate, will, intend and other similar expressions may identify forward-looking statements. Actual results may differ materially from those projected as a result of certain risks and uncertainties, many of which are beyond our control, including but not limited to: macroeconomic factors, including global and regional business conditions, the availability and cost of capital, the cyclical nature of our customers' capital spending, sovereign debt concerns and currency exchange rates; laws, regulations and governmental policies affecting our activities in the countries where we do business; the successful development of advanced technologies and demand for and market acceptance of new and existing products; the availability, effectiveness and security of our information technology systems; competitive products, services and solutions and pricing pressures, and our ability to provide high quality products, services and solutions; a disruption of our operations and supply chain due to natural disasters, acts of war, strikes, terrorism, social unrest or other causes; our ability to protect confidential information and enforce our intellectual property rights; our ability to successfully address claims by taxing authorities in the various jurisdictions where we do business; our ability to attract and retain qualified personnel; our ability to manage costs related to employee retirement and health care benefits; the uncertainties of litigation, including liabilities related to the safety and security of the products, services and solutions we sell or to alleged intellectual property infringements; our ability to manage and mitigate the risks associated with our solutions business; a disruption of our distribution channels; the availability and price of components and materials; the successful integration and management of acquired businesses; the successful execution of our cost productivity and globalization initiatives; and other risks and uncertainties, including but not limited to those detailed from time to time in our Securities and Exchange Commission filings. These forward-looking statements reflect our beliefs as of the date of this presentation. We undertake no obligation to update or revise any forward-looking statement, whether as a result of new information, future events or otherwise. 2
Notice Regarding Financial Information This presentation contains non-gaap financial information. Reconciliations from GAAP to non-gaap measures are contained in the appendix of this presentation. All information should be read in conjunction with the historical financial statements and financial information contained in Rockwell Automation s Annual Report on Form 10-K, periodic reports on Form 10-Q and Form 8-K, and public announcements of financial information. Copies of these reports, as well as a financial information overview, are available on the Investor Relations section of Rockwell Automation s website at http://www.rockwellautomation.com/investors/ 3
Automation is an Attractive Market Market Size by Region Market Size by Industry Developed Market Growth Drivers Productivity and cost optimization Manufacturing flexibility Safety and sustainability Replace aging installed base Emerging Market Growth Drivers Infrastructure investment Growing middle class Extraction of natural resources Wage inflation $80B market growing faster than global GDP 4
Market Pulse By region US and Canada stable EMEA recession continues in developed markets; growth in certain emerging markets Asia Pacific weak with improving outlook China outlook likely to improve 2 nd half of the year India no sign of improvement Latin America good investment continues; expect 2 nd half growth By vertical Automotive solid for the next several quarters Tire soft compared to strong investment in F 12 and F 11 Consumer stable with investments focused in emerging markets Oil and Gas investment continues at high level Mining weaker commodity prices dampening investment Metals very weak; overcapacity in China Our first half performance reflects end market dynamics 5
Growth and Performance Strategy ABOVE MARKET GROWTH Expand served market Target highest growth markets Acquisitions as catalysts REINVESTMENT Drive productivity to fund growth opportunities with attractive ROIC INTELLECTUAL CAPITAL Create customer and shareholder value through technology innovation and domain expertise Long Term Financial Goals: Revenue growth of 6 to 8%, double digit EPS growth, >20% ROIC 6
Keys to Success Process Continued enhancements of PlantPAx Leverage power, control and safety portfolio Expand application libraries and tools Emerging Markets Invest in customer-facing resources Develop channel capabilities Domain expertise acquisitions OEM Increase penetration of mid-range portfolio Maintain segment focus Expand productivity tools New Products Continue to scale Logix, evolve visualization Expand intelligent motor control platforms Increase packaged solutions and services 7
Track Record of Execution Above Market Sales Growth Sales Diversification $6.45 $6.25 Actual Results Apr 24 th 2013 Guidance Process Initiative Emerging Markets Adjusted EPS Stable Free Cash Flow $5.70 $5.40 $536 $545 $508 $531 $458 $431 $672 $773 Actual Results Apr 24 th 2013 Guidance Free Cash Flow Pension Contributions 8
Cash Deployment Priorities Free Cash Flow Committed to A credit rating Strong track record of returning cash to shareowners Fund Organic Growth Acquisitions Fund value-creating investments in our business Primarily P&L investments; not capital intensive R & D spend as a % of sales 1 pt. higher than 2008 Bolt-on acquisitions to accelerate organic growth Average spend $80M+ per year Dividends Share Repurchase Target median payout ratio/yield compared to peers Cumulative dividend increase of almost 80% over the last 4 years Return excess cash flow to shareowners 9
Total Shareowner Return $225 $200 $175 $150 $125 $100.. $75 $50 $25 2004 2005 2006 2007 2008 2009 2010 2011 2012 Fiscal Year Ended September 30 Rockwell Automation S&P 500 Index Includes the reinvestment of all dividends in our common stock 2005-2012 annualized total return of 10.0% vs. 5.4% for the S&P 500 10
Appendix Reconciliation to Non-GAAP Measures
Reconciliation to Non-GAAP Measures Adjusted EPS Fiscal 2013 Year Ended September 30, Guidance* 2012 2011 2010 2009 2008 Diluted EPS from continuing operations $5.05 - $5.35 $ 5.13 $ 4.79 $ 3.05 $ 1.53 $ 3.89 Non-operating pension costs per diluted share, 0.56 0.25 0.16 0.07 (0.14) (0.17) before tax Tax effect on non-operating pension costs per diulted share (0.21) (0.09) (0.06) (0.02) 0.05 0.07 Adjusted EPS $5.40 - $5.70 $ 5.29 $ 4.89 $ 3.10 $ 1.44 $ 3.79 * Fiscal 2013 Guidance as of April 24 th 2013 12
Reconciliation to Non-GAAP Measures Free Cash Flow (in millions) Twelve Months Ended September 30, 2012 2011 2010 2009 2008 2007 2006 2005 Cash provided by continuing operating activities $ 718.7 $ 643.7 $ 494.0 $ 526.4 $ 596.8 $ 444.9 $ 313.3 $ 548.3 Capital expenditures of continuing operations (139.6) (120.1) (99.4) (98.0) (151.0) (131.0) (122.3) (102.7) Tax payments related to the gain on divestiture of Power Systems - - - - 7.9 190.0 - - Excess income tax benefit from share-based compensation 18.5 38.1 16.1 2.4 4.6 27.1 47.4 - Free cash flow $ 597.6 $ 561.7 $ 410.7 $ 430.8 $ 458.3 $ 531.0 $ 238.4 $ 445.6 13