2015 investor-day-chicago

Copyright © 2015 Rockwell Automation, Inc. All Rights Reserved.PUBLIC INFORMATION

Rockwell AutomationInvestor Conference

November 19, 2015


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 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.

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Agenda

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Sustainable Market Leadership

Strategic Overview

Financial Overview

Q & A Session

Keith Nosbusch, Chairman & CEO

Ted Crandall, SVP & CFO

Frank Kulaszewicz, SVP A&SBlake Moret, SVP CP&S

Final Remarks Keith Nosbusch, Chairman & CEO

Copyright © 2015 Rockwell Automation, Inc. All Rights Reserved.PUBLIC INFORMATION 4

$6.3B in FY15 sales; primarily an organic growth company

Automation industry leader for over 110 years The largest pure-play global automation and

information company Serving a broad range of end-markets

Great financial returns due to technology differentiation, domain expertise and productivity

A unique business model based on trusted partnerships

Strong culture of ethics and integrity

Rockwell Automation An Intellectual Capital Company

Differentiation … Diversification … Delivering Results


Value Creation Strategy

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PRODUCTIVITY Drive productivity

to reinvest in the business

Working capital management

INTELLECTUAL CAPITAL Innovation Domain expertise Asset light

ABOVE-MARKETGROWTH Expand served

market Gain market share Acquisitions as

catalysts

VALUE CREATION Above-market organic growth Best in class operating

margin & ROIC Strong cash flow Expand customer value;

increase shareowner value


2015 Macro Trends / Disruptions“Four Global Forces Breaking All Trends”

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Urbanization

Accelerating Technological

Change

Aging World

Greater Global Flows

Urban population growing by 65 million every year

Expect a 150% increase in emerging market annual consumption from 2010 to 2030

One trillion objects expected to connect to the Internet by 2025

Expect an increase in the share of older workers in the workforce from 14% in 2010 to 22% in 2030

A 5X increase in global trade and financial flows from 1990 to 2012

Growing demand for consumer goods and energy

Secure access to information –anywhere, anytime

Skills gap and greater need for productivity to sustain GDP growth

Enterprise-wide optimization

(McKinsey, May 2015)

Disruption Trends Customer Impact


Business Drivers

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Customers still need:

Fundamental business drivers haven’t changed

Faster Time to Market

Lower Total Cost of Ownership

Improved AssetUtilization

Enterprise Risk Management


Automation Trends

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But with technology advancements like…

“The Connected Enterprise”

…customers are now seeking Enterprise-wide connectivity (IT-OT convergence) Real-time actionable information Secure network infrastructure Expertise to fill the skills gap Unified communication for collaboration


Solutions & ServicesIntegrated Architecture Intelligent Motor Control

The Connected EnterpriseEnabled by Integrated Control and Information

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Delivered through our core platforms


Business model One company, unique market access, industry-leading strategic

partners

Leading the way with innovation through technological discontinuities

Future-proofing our customers’ production investments

Entering new markets, expanding capabilities and gaining share Eg. process, safety, connectivity and information management

Market Leadership

Right strategy plus great execution…market leader


Our Leadership Continues:High Performance Architecture

Delivering business value today!


Attractive Growth Opportunities

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MarketShare

Productivity required to remain globally competitive Installed base refresh Consumer demand in emerging

markets Skills gap and aging workforce

Market Growth

High performance architecture Process (PlantPAx and

services) Midrange Powertrain Safety

Market/Customer Share

Network infrastructure Security Information & data

management Operational intelligence Bolt-on acquisitions

PAM Expansion

The Connected Enterprise will fuel growth across the spectrum

$65

$90B $90B market

Connected Enterprise added ~$8B

5-yr CAGR of 8%FY10 FY15

$90PAMProduct Available Market

(billions)


Sustainable Market LeadershipDelivering Customer Value

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Frank KulaszewiczSenior Vice President,Architecture & Software

Blake MoretSenior Vice President,Control Products & Solutions


Agenda

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Technology Innovation

Competitive Differentiation at Rockwell

Delivering Value to Customers

Domain Expertise

Case Studies

Customer Values


Rockwell Automation Approach to Innovation

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Focus on customer value and productivity Delivered through our technology and services Broad automation and information portfolio Premier Integration Key tenets

Scalable deployment Common platform Ease of use Backward Compatibility Future-proof


Innovation and IP

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Market Leadership Through Each “Discontinuity”

Electromechanical Products

Programmable Logic Controllers, Drives, Software

Logix: Integrated Discrete,

Process, Motion, Safety, Motor Control

The Connected Enterprise: Integrated Control and Information

1903 - 1979 1980 - 1999 2000 - 2010 2011 - …

US Patents Issued/Year


Innovation Enables The Connected Enterprise

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The Resulting Products Deliver New Value Today

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Smart. Productive. Secure.

Processor and I/O Electronic Operator Interface Intelligent Sensors Network Portfolio Information Enabled

Intelligent Motor Control Common Software Environment Reusable Engineering Content Safety Devices & Solutions Mobility

Information Software & Solutions Tamper and Content

Protection Authentication and Policy

Management

Evolving Our Architecture With More New Products & Platforms Than Ever Before


Domain Expertise to Serve a Broad Range of Industries

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The expertise to apply innovation and reduce risk

FOOD, BEVERAGE, HOME & PERSONAL CARE

AUTOMOBILE, TIRE PHARMACEUTICAL, MEDICAL DEVICES

UPSTREAM, MIDSTREAM DOWNSTREAM

MINING, METALS, PULP & PAPER, WATER / WASTEWATER

CONSUMER TRANSPORTATION LIFE SCIENCES OIL & GAS HEAVY INDUSTRY

We provide the fastest line integration for packaging equipment

Our partnership with Fanuc enables new value for Powertrain applications

We are the market leader in Pharma Manufacturing Execution Systems

Our digital oilfield solution optimizes production from existing wells

PlantPAx Modern DCS integrated with Intelligent Motor Control reduces startup and downtime


The Resulting Solutions & Services Deliver New Value Today

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Increased Capabilities in Served Markets Process Applications featuring

PlantPAx Modern DCS Serialization Powertrain

Industrial Network Infrastructure, Security and Remote Services

Safety Services

Manufacturing Execution Software (MES) Expansion

Reliability Services

Workforce Solutions Closing the Skills Gap

MES


Combining Innovation & Domain Expertise with a Unique Approach…

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THE CONNECTED ENTERPRISEUnderstandingConsulting to Define Business Problems

Unique Market AccessUnmatched Partners

SimplificationMulti-discipline Control

and InformationData-driven Services

Single Integrated Business

Combined Innovation & Expertise

Smart Products Designed to Operate in a System

Packaged SolutionsProducts as a Service


Agenda

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Technology Innovation

Competitive Differentiation at Rockwell

Delivering Value to Customers

Domain Expertise

Case Studies

Customer Values


Delivering Customer Value

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Flexible production

Design productivity

Intelligent devices

Lifecycle management

Operator effectiveness

Technology migration

Reliability and quality

Analytics and diagnostics

Real-time data access

Regulatory compliance

Brand and image protection

Safe, secure operating environment

Faster Time to Market

Improved AssetUtilization

Lower Total Cost of Ownership

Enterprise Risk Management


Procter & GambleConsumer Products – Global

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Synchronization of product, people and digitized information flows along the end to end supply chain

$50MPRODUCTIVITY

SAVINGS

30%REDUCTION

IN SCRAP

50%EXTENSION

of LIFE CYCLE

20%INCREASE in

THROUGHPUT


BCP GroupOil & Gas – OEM

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EXTENDED WELL LIFE

INCREASED ENERGY SAVINGS

IMPROVED SYSTEM RELIABILITY

INTEGRATED CONTROL

SIMPLIFIED START-UP

Networked Oil Wells Provide Insight Into Field Operations with Real-time Data


Columbia Pipeline GroupOil & Gas - Midstream

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“We’re making more educated decisions based on real-time and historical operations data that we can access anywhere. We’ve been

able to significantly improve company profitability as a result.” - Brian Sloan, Engineering Manager

99.5%AVAILABILITY

Business Decisions Based OnREAL-TIME & HISTORIAL DATA

$2.3 MSaved in Maintenance and Downtime


MahindraAutomotive – India

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Master Data Sent AUTOMATICALLY

REDUCED Mean-time-to-repair with Alarms & Real-time Visibility

ERROR PROOFINGZero Defect Delivery

Inventory Reductionon Assembly Floor

INCREASED FLEXIBILITY With In-Process Changes

Work Stations Suppliers


Video CueMahindra

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BeingmateFood & Beverage – China

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Most Advanced Track & Trace System in all of China for Baby Formula.

- China Food Drug Administration (CFDA)

ProductivityIncrease3% Labor

Costs7%Reduced production prep/dispatch time

Speeds up delivery, auto-fill BOM


Gruppo CampariFood & Beverage – U.S.

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Integrated Distillery, Process and Bottling Facilities Establish The Connected Enterprise

Distillery productionDOUBLED

OEE Increased

10-20%

Now 70%

“The PlantPAx system has helped us get better every day … Our KPIs are all trending

up, and our cost per case is going down.”

Down to the GallonSupports Government-mandated Reports

- Wayne Knabel, Packaging Director

PRODUCT TRACKING


Video CueCampari

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Sustainable Competitive AdvantageBased on Differentiation

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Technology Innovation & Broad Portfolio The only scalable, multidiscipline, information-enabled

control platform Secure, unmodified EtherNet/IP network infrastructure Leading market position in safety Intelligent motor control products and systems

Domain Expertise & Global Support Application know-how Lifecycle support for customers in all industries

Trusted Partners & Unique Market Access Model Market-making channel partners, strategic alliances,

technology partners

Integrated Architecture

Intelligent Motor Control

Solutions & Services


Financial Overview

Ted CrandallSenior Vice President and Chief Financial Officer


Fiscal 2016 Guidance

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Full Year OutlookSales Midpoint ~ $6.0B

Organic Growth Range (4)% to 0%

Currency Translation ~ (3)%

Segment Operating Margin ~ 21%

Adjusted Effective Tax Rate ~ 27%

Adjusted EPS $5.90 - $6.40

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

Note: As of November 10, 2015


Free Cash Flow Pension Contributions

Track Record of Execution

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Return on Invested CapitalSales

Free Cash FlowAdjusted EPS

Actual Results Nov. 10th 2015 Guidance

Actual Results Nov. 10th 2015 Guidance Actual Results as of Fiscal Year End


Cash Deployment Priorities

Free Cash Flow

Acquisitions

Dividends

Share Repurchase

Returned $3.5 billion to shareowners in the last 5 years

Cash Returned to Shareowners


Final Remarks

Keith NosbuschChairman and Chief Executive Officer


In the near term we are focused on…

Our best growth opportunities New products and services Automotive and consumer industries Productivity projects in heavy industries

Prudent cost controls Q4 restructuring actions and tight reins on discretionary spending Incremental cost productivity Maintaining R&D and customer-facing spend

Continued solid cash deployment Increased the dividend 12% in November Acquisition opportunities Flexibility to make opportunistic share repurchases

Ensuring the long-term success of the company


How We Measure Progress

Sales and EPS growth, FCF, ROIC

Share gain in all market conditions

Measurable cost productivity every year

Customer loyalty index improvement

Connected Enterprise adoption indicators

Network infrastructure and services (up >15% in FY15) Logix growth (up 4% in FY15)

Holding ourselves accountable…


Good Stewards of Your Investment

Singular focus on industrial automation and information – a great market Robust pipeline of organic growth opportunities Experienced leadership team adept at managing through cycles Sustainable, profitable business model

Differentiation in technology and domain expertise support sustainable competitive advantage

Best in class operating margin and ROIC, while still investing in innovation for the long term

Strong cash flow and healthy balance sheet Track record of returning cash to shareowners Strong culture of ethics and integrity


Business model, strategy and execution support shareowner value creation We effectively balance investment with cost management through a cycle Consistent track record of returning cash to shareowners

Shareowner Value Creation Will Continue

Total shareowner return consistently above S&P 500


AppendixReconciliation to Non-GAAP Measures


Reconciliation to Non-GAAP Measures

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Return On Invested Capital(in millions, except percentages)

Twelve Months Ended September 30,

2015 2014 2013 2012 2011 2010 2009 2008

(a) ReturnIncome from continuing operations $ 827.6 $ 826.8 $ 756.3 $ 737.0 $ 697.1 $ 440.4 $ 217.9 $ 577.6 Interest expense 63.7 59.3 60.9 60.1 59.5 60.5 60.9 68.2 Income tax provision 299.9 307.4 224.6 228.9 170.5 103.8 56.0 231.3 Purchase accounting depreciation and amortization 21.0 21.6 19.3 19.8 19.8 18.9 18.6 24.2

Special charges - - - - - - (4.0) 46.7

Return 1,212.2 1,215.1 1,061.1 1,045.8 946.9 623.6 349.4 948.0

(b) Average Invested CapitalShort-term debt 166.6 275.5 209.0 207.2 - - 70.1 325.1 Long-term debt 1,261.9 905.3 905.0 905.0 904.9 904.8 904.6 804.5 Shareowners' equity 2,521.3 2,680.7 2,086.7 1,881.5 1,709.7 1,387.9 1,563.5 1,798.5 Accumulated amortization of goodwill and intangibles 792.6 772.7 775.2 751.0 716.7 679.4 648.3 619.0 Short-term investments (639.3) (485.2) (361.7) (232.5) - - - -

Cash and cash equivalents (1,376.1) (1,210.6) (1,010.2) (878.8) (922.7) (763.3) (576.0) (728.0)

Average invested capital 2,727.0 2,938.4 2,604.0 2,633.4 2,408.6 2,208.8 2,610.5 2,819.1

(c) Effective Tax RateIncome tax provision 299.9 307.4 224.6 228.9 170.5 103.8 56.0 231.3

Income from continuing operations before income taxes $ 1,127.5 $ 1,134.2 $ 980.9 $ 965.9 $ 867.6 $ 544.2 $ 273.9 $ 808.9 Effective tax rate 26.6% 27.1% 22.9% 23.7% 19.7% 19.1% 20.4% 28.6%

(a) / (b) * (1-c) Return On Invested Capital 32.6% 30.1% 31.4% 30.3% 31.6% 22.8% 10.7% 24.0%


Reconciliation to Non-GAAP Measures

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Adjusted EPS

Fiscal 2016 Year Ended September 30, Guidance * 2015 2014 2013 2012 2011 2010 2009 2008

Diluted EPS from continuing operations $5.53 - $6.03 $ 6.09 $ 5.91 $ 5.36 $ 5.13 $ 4.79 $ 3.05 $ 1.53 $ 3.89

Non-operating pension costs per diluted share, 0.58 0.46 0.40 0.55 0.25 0.16 0.07 (0.14) (0.17)

before tax

Tax effect on non-operating pension costs

per diluted share (0.21) (0.15) (0.14) (0.20) (0.09) (0.06) (0.02) 0.05 0.07

Adjusted EPS $5.90 - $6.40 $ 6.40 $ 6.17 $ 5.71 $ 5.29 $ 4.89 $ 3.10 $ 1.44 $ 3.79

Free Cash Flow(in millions)

Twelve Months Ended September 30, 2015 2014 2013 2012 2011 2010 2009 2008

Cash provided by continuing operating activities $ 1,187.7 $ 1,033.3 $ 1,014.8 $ 718.7 $ 643.7 $ 494.0 $ 526.4 $ 596.8

Capital expenditures (122.9) (141.0) (146.2) (139.6) (120.1) (99.4) (98.0) (151.0)

Tax payments related to the gain on divestiture ofPower Systems - - - - - - - 7.9

Excess income tax benefit from share-based

compensation 12.4 29.9 31.9 18.5 38.1 16.1 2.4 4.6 Free cash flow $ 1,077.2 $ 922.2 $ 900.5 $ 597.6 $ 561.7 $ 410.7 $ 430.8 $ 458.3

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2015 investor-day-chicago

Investor Relations