Investor Relations

Financial Overview

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

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

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

Customer Needs

Flexible & Scalable Data Mgmt

Example of ROK Differentiation

Edge & Cloud Portfolio

Key Priorities

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

TOTAL ANNUAL GROWTH THROUGH THE CYCLE

LONG-TERM
FINANCIAL FRAMEWORK

35% core earnings conversion
EPS growth > sales growth
FCF conversion ~100%
FCF yield for acquisitions > (WACC + risk premium) by years 3-5
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

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 2.25% of Sales

Free Cash Flow

~100% of Adjusted Income

INORGANIC INVESTMENTS

Acquisitions

Target ~1 pt of growth per year
FCF yield > (WACC + risk premium) by years 3-5

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%.

Building on a Strong Foundation

FY16 - FY23 Performance

Emulate3D
Sensia
Kalypso
ASEM
Avnet
Oylo

Fiix
Plex
AVATA
Cubic
KnowledgeLens

12.4% growth in information solutions and connected services

FactoryTalk Information Solutions
Cybersecurity technology and expertise
Connected Services
Market expansion in Europe and Asia

Expanding vertical focus
FactoryTalk automation software
New visualization offerings
High-performance drives
Independent cart technology
Market expansion in Europe and Asia