Rockwell Automation, Inc.

Thank you for holding, and welcome to Rockwell Automation's quarterly conference call. I need to remind everyone that today's conference call is being recorded. Later in the call, we will open up the lines for questions. If you have a question at that time, please press star one. At this time, I'd like to turn the call over to Ajana Zellner, Head of Investor Relations. Ms. Zellner, please go ahead.

Thank you, Julianne. Good morning. Thank you for joining us for Rockwell Automation's fourth quarter fiscal 2022 earnings release conference call. With me today is Blake Moretz, our Chairman and CEO, and Nick Gangstad, our CFO. Our results were released earlier this morning, and the press release and charts have been posted to our website. Both the press release and charts include, and our call today will reference, non-GAAP measures. Both the press release and charts include reconciliations of these non-GAAP measures. A webcast of this call will be available on our website for replay for the next 30 days. For your convenience, a transcript of our prepared remarks will also be available on our website at the conclusion of today's call. Before we get started, I need to remind you that our comments will include statements related to the expected future results of our company and are therefore forward-looking statements. Our actual results may differ materially from our projections due to a wide range of risks and uncertainties. that are described in our earnings release and detailed in all our SEC filings. So with that, I'll hand it over to Blake.

Thanks, Ayjana. And good morning, everyone. Thank you for joining us today. Let's turn to our fourth quarter results on slide three. We had a great finish to the fiscal year and delivered very strong operating performance. I'm proud of how our teams navigated this challenging year with continued supply chain volatility, significant inflation, and currency headwinds. Our Q4 results were in line with our expectations, with organic sales and earnings both growing double digits year over year and sequentially. Borders came in as expected in the quarter. Our record backlog, along with very low order cancellation rates, reflect the continued solid underlying demand from our customers across many industries and regions. Total revenue of over $2.1 billion was up 17.6% year over year. Organic sales grew 20.5% versus prior year, in line with our expectations. Acquisitions contributed almost two points of growth this quarter. Currency translation reduced sales by about 5%, driven by continued strengthening of the U.S. dollar. As expected, we continue to see a gradual stabilization of global supply chain. Similar to last quarter, the split of Q4 shipments by business segment and region was driven by access to specific electronic components. In the intelligent devices business segment, organic sales grew over 16% versus prior year with growth in all regions. While growth in this segment for the quarter was once again disproportionately impacted by component availability, we were able to mitigate these supply issues with the benefits from our resiliency actions. We see continued market need for our intelligent devices from power flex drives to our motion technology to our best in class safety solutions. Our independent car technology business had a record year with both orders and sales growing over 35% year over year. Software and control organic sales growth of over 32% versus prior year was above expectations. Strong double-digit growth in view and logics was driven by an improving component supply and our redesign investments. Lifecycle services organic sales were up 16% year-over-year. Book-to-bill in this segment was 1.02, very good for our fourth quarter. Information solutions and connected services had another quarter of double-digit growth in both orders and sales. Here are a couple of wins in ISCS to highlight the continued value of our recent acquisitions and new releases in these areas. One of our Plex wins this quarter was with Futaba North America, a member of the Toyota Business Network. Futaba has selected Plex Smart Manufacturing Platform for its ERP, MES, quality management, and production monitoring. Our state-of-the-art solution provides real-time inventory management, complex planning, and full visibility into this customer's manufacturing operations. Another example of how our new offerings are adding new value to our traditional customers is our win with Kraft Heinz this quarter. Our Plex platform, along with Calypso's digital design and implementation services are helping Kraft meet its productivity, yield, and quality goals. We also continue to broaden our customer base with our FIX, Cloud Native Maintenance Management System. In the quarter, FIX was chosen by Barrett Steel, the UK's largest independent steel stockholder, to help reduce their unplanned downtime with a solution that could be easily scaled across 28 sites. Connected services sales were also strong in the quarter with double-digit growth in digital projects and cybersecurity services. In the quarter, ARR grew 14%, bringing our ARR to over 8% of total revenue. Segment margin of over 23% was up 540 basis points year-over-year, reflecting another quarter of strong execution. Adjusted EPS grew 30% year-over-year. Earlier this week, we completed the acquisition of the Danish company Cubic, a worldwide leader in modular systems for electrical panels. This acquisition will help expand the global reach for our intelligent devices and will bring new customers and partners, including a broader market access in renewable energy and data centers. Let's now turn to slide four to review key highlights of our Q4 end market performance. All three industry segments grew double digits this quarter, driven by continued gradual improvement in the availability of electronic components. In our discrete industries, sales were up almost 20%. Within discrete, automotive sales were up 25% versus prior year. We had numerous wins this quarter, with our customers continuing to invest in their global operations, whether it's starting up a new factory, securing their network infrastructure, or upgrading existing facilities with cloud-native software. One of our key EV wins this quarter was with Hyundai Motors for their U.S. Greenfield Megasite in Bryan County, Georgia. Hyundai Motors has selected Rockwell as their controls partner for press, body, paint, and general assembly. Semiconductor sales grew 30% year-over-year with several global wins this quarter. In addition to securing a sizable turnkey project in Asia, with our proven facilities monitoring system, we had an important win here in the U.S. to provide flexible wafer transfers as part of this customer's automated material handling system. Our independent cart technology is being leveraged at scale to support this customer's labor productivity and capacity goals. In e-commerce and warehouse automation, our sales were up high single digits in the quarter. Even with a slowdown in new e-commerce fulfillment center investment, retailers continue to adopt our solutions for greater warehouse efficiency and throughput. Moving to our hybrid industry segment, sales in this segment grew over 20%, led by growth in food and beverage, life sciences, and eco-industrial. Food and beverage sales were up 20% versus prior year. Similar to last quarter, we continue to see a good pipeline of Greenfield and Brownfield projects that are key customers. In the quarter, we won several multi-site deals with some of the largest food and beverage companies with a healthy mix of intelligent devices, software, and digital consulting and implementation services. Life sciences sales grew over 35% in the quarter. with continued customer investments in software, cybersecurity, and modular process control. Tire was up 20% versus prior year, led by growth at our end-user customers. This is another vertical where we are seeing an increase in greenfield projects in all regions. Turning to process, this industry segment grew mid-teens versus prior year, with growth in metals, chemicals, and oil and gas. One of the wins in chemicals this quarter was with Borah-Lyondell-Bussell Petrochemical, the joint venture between Lyondell-Bussell and Borah Enterprise Group. The customer chose our advanced analytics solution to help improve product quality and increase production capacity at their new polymer production plant in China. Turning now to slide five in our Q4 organic regional sales performance. North America organic sales grew by 20% versus the prior year. Latin America sales were also up 20%. EMEA sales grew over 24% and Asian Pacific was up almost 18%. Let's move to slide six, an update to our orders and backlog performance this fiscal year. Order cancellations continue to stay within our historical low single-digit range. Our orders of over $10 billion and record backlog of over $5 billion this year set the stage for another year of strong sales growth in fiscal year 23. As we turn to slide 7, let's review highlights of fiscal 22. We had another year of record orders, with total orders of over $10 billion growing 20% versus prior year. Reported and organic sales grew 11%, an impressive performance in light of all the challenges of the year. Information solutions and connected services continue to meaningfully contribute to our growth, with over $800 million in sales growing double digits. ARR is also growing double digits and now accounts for more than 8% of our total revenue. Adjusted EPS was up 1% versus prior year, excluding last year's one-time items, adjusted EPS was up 11%. Free cash flow conversion of 61% was driven by higher working capital. Nick will cover this in more detail later. The investments we've made this year have strengthened the resiliency of our business model and positioned us for sustained growth in fiscal year 23 and beyond. Let's now move to slide eight, fiscal 2023 outlook. With the size of our record backlog, our outlook for fiscal 2023 is predicated on the availability of components. Given continued supply chain volatility, we think a conservative approach is appropriate. Our fiscal 23 guidance projects total reported sales growth of 9.5%. Organic sales growth of 11% at the midpoint assumes continued supply chain stabilization with four points of growth coming from price and seven points coming from volume. We expect acquisitions to contribute a point of profitable growth and currency to be a headwind of about two and a half points. ARR is expected to have another year of double digit growth. We are projecting segment margin to expand by 60 basis points year over year. Adjusted EPS is expected to grow 12% versus prior year. And we target generation of over $1.1 billion of free cash flow next year with a return to a more normalized conversion of 95%. Let me turn it over to Nick to provide more detail on our Q4 performance and financial outlook for fiscal 23. Nick?