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2Q12 Supplier Communication Meeting

2Q12 Supplier Communication Meeting. Rockwell Automation. May 21 & 22, 2012. Agenda. Opening Comments M. Jacobs VP Strategic Sourcing RA Business Overview K. Volz 2Q12 Recap Director, Finance 2012 Outlook Supplier Performance J. Goelz Dir., Supply Management

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2Q12 Supplier Communication Meeting

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  1. 2Q12 Supplier Communication Meeting Rockwell Automation May 21 & 22, 2012

  2. Agenda Opening Comments M. Jacobs VP Strategic Sourcing RA Business Overview K. Volz 2Q12 Recap Director, Finance 2012 Outlook Supplier Performance J. Goelz Dir., Supply Management Key Takeaways M. Jacobs VP Strategic Sourcing

  3. ROK Q2 FinancialsQuarterly Supplier Update Karen Volz Director, Finance – OES May 21 & 22, 2012

  4. 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% 4

  5. Second Quarter Results: Summary

  6. Second Quarter Results: Rockwell Automation Total 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%

  7. Second Quarter Results: Regional Sales ($ millions, except percentages)

  8. Fiscal 2012 Revised Guidance

  9. Supplier Conference Update Supply Management - Performance John R. Goelz Director Material Planning / Supply Management May 21 & 22, 2012

  10. Supplier Performance - Scorecard • 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 Are you reviewing aged / open PO’s Do you root cause repeat lates?

  11. Supplier Performance - Scorecard • 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 !!!

  12. 2nd Half Projections / Opportunities • Fiscal 2012 Revised Guidance • Sales - $6.25B - $6.45B • Sales 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

  13. Key Takeaways Mike Jacobs Vice President, Strategic Sourcing May 21 & 22, 2012

  14. Key Takeaways Continued growth expected through rest of FY12 . . . Focus on ETO supplier capacities • 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

  15. Thank you

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