Investor Relations

Financial Overview

Strong balance sheet, cash flow generation and strong track record of returning cash to shareowners

Rockwell Automation, Inc. (NYSE: ROK)

NYSE: ROK

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New Strategic Growth Framework

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Customer Needs

Resiliency
Agility
Sustainability

Example of ROK Differentiation

Cybersecurity, Augmented Workforce
Multi-discipline Logix
Energy Transition Capabilities

FY24 PROGRESS

Double-digit growth in Cybersecurity Services with expanding customer base
Growth in Process applications with multi-discipline Logix, including Process safety / HA
Energy end markets are ~15% of total ROK, grew mid single digits YOY in FY24

Customer Needs

Shoring / Stimulus / Mega Projects
Software-defined Automation
Autonomous Operations
Capacity Build-out in Focus Industries
Manufacturing Lifecycle Mgmt

Example of ROK Differentiation

ROK Ecosystem Evolution
Scalable Solutions & Business Models
AI-enabled Design, Control & Logistics
Industry-specific Solutions
Simplified Digital Threads

FY24 PROGRESS

Full capabilities in Integrated Control & Information
Continued share gains; Leader in NA PLC market
High win rate of New Capacity projects in FY24 and a robust pipeline of shoring/stimulus/mega projects into FY25 and beyond

Market Leader in North America

We have the highest share, largest installed base, best channel, and deepest relationships

We are winning at a high rate
OEMs outside of the U.S. want to work with ROK as the leader in the Americas
A substantial amount of mega projects are in our core verticals
Still in early innings of multi-year investment

Customer Needs

Flexible & Scalable Data Mgmt

Example of ROK Differentiation

Edge & Cloud Portfolio

FY24 PROGRESS

Edge and Cloud portfolio driving market-beating ARR performance:

Continued double-digit YOY growth
ARR is now over 10% of total ROK revenue

Key Priorities

Annual Recurring Revenue
Market expansion in Europe and Asia
Application-specific technology in focus industries

FY24 PROGRESS

More than doubled Clearpath OTTO AMR revenue in FY24
Sensia profitability contributed to Lifecycle Services margin expansion
Expanding geographic footprint and data center business with CUBIC

TOTAL ANNUAL GROWTH THROUGH THE CYCLE

LONG-TERM
FINANCIAL FRAMEWORK

35% core earnings conversion
EPS growth > sales growth
FCF conversion ~100%
ROIC > 20%
Target 2x leverage

Margin Expansion

	Margin Growth Drivers	Long-term Range*
Intelligent Devices	Share gain from next gen product launches across core platform Further synergies from recent acquisitions Product cost optimization	22% - 24%
Software & Control	Continued share gains in Control Further synergies from recent acquisitions Higher software mix accelerated by key product launches	31% - 34%
Lifecycle Services	Focus on high-growth recurring services Streamlined organization for faster growth Improved growth and profitability of Sensia	13% - 15%

Total ROK	Productivity	Supply chain improvement	Accelerated top line growth

*Excludes impact of future acquisitions

Margin Expansion and Productivity

ROK Operating Model to drive margin expansion and productivity through FY25 and beyond

Enterprise Scale and Efficiency	SG&A Cost Reduction	Drive synergies from recent acquisitions Productivity in HQ functions Streamline sales operations Leverage CoEs in low-cost locations
Enterprise Scale and Efficiency	Process Efficiency	Leverage technology to redesign processes and reduce manual work
Product Cost Reductions	Direct Material Sourcing	Supplier consolidation and negotiation
Product Cost Reductions	Product Redesign	Design changes to improve cost and manufacturability
Indirect and Supply Chain Optimization	Indirect Sourcing	Supplier negotiation and optimization of IT & outside engineering spend
	Logistics	Shift from air to ocean where applicable; logistic supplier negotiation
	Manufacturing Efficiency	Process improvement to increase yield and reduce manufacturing costs
	Real Estate Footprint	Space optimization and elimination of low utilization facilities
Portfolio Optimization	SKU Rationalization	Reduction of low volume/low margin SKUs
Portfolio Optimization	Price Optimization	Increase price on low volume SKUs

Enterprise Scale and Efficiency
SG&A Cost Reduction	Drive synergies from recent acquisitions Productivity in HQ functions Streamline sales operations Leverage CoEs in low-cost locations
Process Efficiency	Leverage technology to redesign processes and reduce manual work
Product Cost Reductions
Direct Material Sourcing	Supplier consolidation and negotiation
Product Redesign	Design changes to improve cost and manufacturability
Indirect and Supply Chain Optimization
Indirect Sourcing	Supplier negotiation and optimization of IT & outside engineering spend
Logistics	Shift from air to ocean where applicable; logistic supplier negotiation
Manufacturing Efficiency	Process improvement to increase yield and reduce manufacturing costs
Real Estate Footprint	Space optimization and elimination of low utilization facilities
Portfolio Optimization
SKU Rationalization	Reduction of low volume/low margin SKUs
Price Optimization	Increase price on low volume SKUs

Incremental YOY Benefit

Inorganic Investments

New inorganic
priorities

Annual Recurring Revenue

Market Access in Europe / Asia

Application-specific Technology in Focus Industries

Prior inorganic
priorities

Process Expertise

Information Solutions / Connected Services

Market Access in Europe / Asia

Advanced Material Handling

Capital Deployment

Our strong balance sheet provides us with significant flexibility and capacity to deploy capital. Our capital deployment priorities have not changed: make investments to fund organic growth, drive a point or more per year of growth from strategic acquisitions, and return excess cash to shareowners through dividends and share repurchases.

ORGANIC INVESTMENTS

Operating Cash Flow

Capital Expenditures

~2 to 3% of Sales

Free Cash Flow

~100% of Adjusted Income

INORGANIC INVESTMENTS

Acquisitions

Target ~1 pt of growth per year

EXCESS CASH RETURNED TO SHAREOWNERS

Dividends

Maintain “A” credit rating

Share Repurchases

Framework for Continued Superior Financial Returns

Our longer-term framework for financial performance starts with organic sales growth, which drives earnings conversion (incremental margins). Free cash flow conversion of 100% or more and a strong balance sheet provide significant capacity for strategic capital deployment, including acquisitions and share repurchases. As a result, we expect EPS growth to outpace revenue growth and ROIC to remain over 20%.