Copyright © 2012 Rockwell Automation, Inc. All rights reserved. 2Q12 Supplier Communication Meeting Rockwell Automation May 21 & 22, 2012.

Copyright © 2012 Rockwell Automation, Inc. All rights reserved.

2Q12 Supplier Communication MeetingRockwell Automation

May 21 & 22, 2012

Copyright © 2012 Rockwell Automation, Inc. All rights reserved. 2

Agenda

Opening Comments M. JacobsVP Strategic Sourcing

RA Business Overview K. Volz- 2Q12 Recap Director, Finance- 2012 Outlook

Supplier Performance J. GoelzDir., Supply Management

Key Takeaways M. JacobsVP Strategic Sourcing


ROK Q2 FinancialsQuarterly Supplier Update

Karen VolzDirector, Finance – OESMay 21 & 22, 2012

Copyright © 2012 Rockwell Automation, Inc. All rights reserved. 44

Q2 and First Half Results

Solid second quarter• Sales (ex-currency) up 8% year over year – organic growth in all regions

• Process sales up 23% year over year

• Released new Logix mid-range controllers

• Received Ethisphere award as one of the world’s most ethical companies

First half performance on track• Sales (ex-currency) up 8% year over year

• Segment operating margin improved 1.7 pts vs. first half of FY ’11

• EPS of $2.43 – 12% growth year over year

• Return on invested capital of 30.5%


Second Quarter Results: Summary

5

($ millions, except per share amounts)

Q2 2012 Q2 2011

Total Sales 1,561.1$ 1,464.1$

Total Segment Operating Earnings 268.3$ 244.2$

Purchase Accounting Depreciation and Amortization (4.9) (4.7)

General Corporate - Net (25.1) (20.5)

Interest Expense (15.0) (15.4)

Income Tax Provision (55.5) (37.2)

Net Income 167.8$ 166.4$

Diluted EPS 1.16$ 1.14$

Average Diluted Shares 144.7 146.3


Second Quarter Results: Rockwell Automation Total

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$1,561.1$1,464.1

0

200

400

600

800

1,000

1,200

1,400

1,600

1,800

Q2 '11 Q3 '11 Q4 '11 Q1 '12 Q2 '12

$244.2$268.3

0

50

100

150

200

250

300

Q2 '11 Q3 '11 Q4 '11 Q1 '12 Q2 '12

Sales Segment Operating Earnings

($ millions)

($ millions)

Sales increased 7% YOY, including 1 pt from acquisitions; currency translation reduced sales 1 pt

Sales increased 6% sequentially

Segment operating earnings up 10% YOY

Segment operating margin expanded 0.5 pt YOY to 17.2%


Second Quarter Results: Regional Sales

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AdjustedReported % Change For Currency

Region Sales vs. Q2 '11 % Change

U.S. 757.7$ 5% 5%

Canada 116.3 23% 25%

EMEA 334.2 7% 12%

Asia-Pacific 231.7 11% 10%

Latin America 121.2 (1)% 4%

TOTAL 1,561.1$ 7% 8%

($ millions, except percentages)


Fiscal 2012 Revised Guidance

8

1st Half Actual Full Year Outlook

Sales $3.0 B $6.25B to $6.45B

Sales Increase (Excluding Currency) 8% 6% to 9%

Currency Translation (1)% (2)%

Segment Operating Margin 18.2% ~18%

Diluted EPS $2.43 $5.10 to $5.40

Free Cash Flow* 5% of Net Income ~75% of Net Income

*After a discretionary pre-tax pension contribution of $300M to the company's U.S. pension trust.

Note: As of April 25, 2012


Supplier Conference UpdateSupply Management - Performance

John R. GoelzDirector Material Planning / Supply ManagementMay 21 & 22, 2012


Supplier Performance - Scorecard

10

Delivery Performance – sustained 95% on-time delivery for fiscal 2012.

•Electronics – 97%

•Mechanicals – 97%

•Factored – 95%

Late Delivery Performance – overall performance better than target.

•Focus on repeat offenders

•Focus on tail of the curve – open PO’s past due >

90 days


Supplier Performance - Scorecard

11

Weighted Average Lead-time – WALT down 6% FY12Q1 to FY12-Q2 (20.9 days)

•Electronics – 15.7 days

•Mechanicals – 14.2 days

•Factored – 23 days

Weighted Average Lead-time > 45 days – WALT

45 down 23% FY12Q1 to FY12-Q2 (41.5 days)

•“Tighten the Task”

• Lead-time > 30 days – x%

• Lead-time > 60 days – 0%

Supplier Quality – continue to focus on quality… it’s in our logo !!!


2nd Half Projections / Opportunities

12

Fiscal 2012 Revised Guidance

Sales - $6.25B - $6.45BSales Increase – 6% - 9%

Mix Shift – Growth opportunities in systems / solutions / engineered to order space

Key Components to Focus – double digit:•Magnetics•CAP’s•SGCT’s

Planning Team – providing long term plans via component forecast (80% of parts)Count on:•Requirement for expedited materials•Short cycled order’s•Un-forecasted growth


Key Takeaways

Mike JacobsVice President, Strategic SourcingMay 21 & 22, 2012


Key Takeaways

Record setting supplier performance through 2Q12 Keep up the good work !

Continued growth through 2Q – YOY growth 8% for total RA Mixed results by business / region through changing macro-economic

conditions

Expect continued significant growth in ETO business during 2H12 Reservation of supplier capacity expected If our requirements are unclear / don’t reflect this growth, suppliers

should contact RA commodity team for clarification

Continued traction in RA NPI sourcing initiative

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Continued growth expected through rest of FY12 . . . Focus on ETO supplier capacities


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Thank you

Copyright © 2012 Rockwell Automation, Inc. All rights reserved. 2Q12 Supplier Communication Meeting Rockwell Automation May 21 & 22, 2012.

Documents

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