Motorola Solutions, Inc. · NYSE:MSI

Motorola Solutions — Q1 2022 Earnings Presentation

19 slides from Motorola Solutions's earnings presentation, May 12, 2022

1. Slide 1: Earnings Presentation Q1 2022 Results

   EARNINGS PRESENTATION Q1 2022 RESULTS | May 12, 2022

2. Slide 2: Safe Harbor

   SAFE HARBOR A number of forward-looking statements will be made during this presentation. Forward-looking statements are any statements that are not historical facts. These forward-looking statements are based on the current expectations of Motorola Solutions, and we can give no assurance that any f

3. Slide 3: Highlights Q1 2022

   HIGHLIGHTS • Sales of $1.9B, up 7% vs. the prior year Q1 2022 ○ Products and Systems Integration up 9% on growth in Land Mobile Radio (“LMR”) and video security ○ Software and Services up 4% on growth in video security and command center software • GAAP EPS of $1.54 • Non-GAAP EPS1 of $1.70 • Record

4. Slide 4: Financial Results

   FINANCIAL RESULTS Q1 21 Q1 22 CHANGE REVENUE $1,773 $1,892 7% NON-GAAP $411 $374 (9%) OPERATING EARNINGS* NON-GAAP 23.2% 19.8% (340 bps) OPERATING MARGIN* NON-GAAP $1.87 $1.70 (9%) EARNINGS PER SHARE* ($M) excluding per share amounts * Non-GAAP measures exclude highlighted items, including share-bas

5. Slide 5: Cash Flow

   CASH FLOW (M$) Q1 21 Q1 22 CHANGE FY 21 FY 22E CHANGE OPERATING CASH $370 $152 ($218) $1,837 $1,875 $38 FLOW CAPITAL ($52) ($54) ($2) ($243) ($275) ($32) EXPENDITURES FREE CASH FLOW* $318 $98 ($220) $1,594 $1,600 $6 * Free Cash Flow is a non-GAAP financial measure and is calculated as Net cash provid

6. Slide 6: Products & SI Q1 2022

   PRODUCTS & SI • Revenue up 9% driven by growth in LMR and video security Q1 2022 • Non-GAAP operating margin* down 420 bps driven by increased Revenue direct material costs, partially offset by higher sales ($M) • Notable wins and achievements: • $60M+ nationwide P25 order for Taiwan National Police

7. Slide 7: Software & Services Q1 2022

   SOFTWARE & • Revenue up 4%, driven by growth in video security and command center software SERVICES • Non-GAAP operating margin* down 170 bps driven by mix and Q1 2022 higher M&A operating expenses, partially offset by higher sales Revenue ($M) • Notable multi-year wins and achievements: • $27M comm

8. Slide 8: Regional Revenue Q1 2022

   REGIONAL ($M) Q1 21 Q1 22 CHANGE REVENUE NORTH AMERICA $1,185 $1,305 10% Q1 2022 INTERNATIONAL $588 $587 – TOTAL $1,773 $1,892 7% ● North America growth driven by LMR, video security and command center software ● International flat with growth in video security and command center software, offset by

9. Slide 9: Backlog Trend

   BACKLOG Software and Services TREND • Y/Y up $1.3B primarily driven by an extension of the Airwave contract and growth in software and services contracts in North America ($B) • Q/Q down $221M primarily driven by revenue recognition for Airwave and ESN $13.6 $13.4 $11.3 Products and Systems Integrat

10. Slide 10: Outlook

    Q2 Details OUTLOOK * Q2 2022 • Effective tax rate of 22% to 23% (NON-GAAP) Revenue Growth 4% - 5% • Fully diluted share count of approx. 173M shares Non-GAAP EPS $1.83 - $1.88 • Approx. $50M FX headwind Prior Full-Year Details PRIOR FULL-YEAR 2022 • Effective tax rate 21% to 22% Revenue Growth Appro

11. Slide 11: Q&A Participants

    Q&A PARTICIPANTS GREG BROWN Chairman and CEO JACK MOLLOY Executive Vice President and COO JASON WINKLER Executive Vice President and CFO MAHESH SAPTHARISHI Executive Vice President and CTO TIM YOCUM Vice President, Investor Relations

12. Slide 12: Use of Non-GAAP Measures

    USE OF NON-GAAP MEASURES In addition to the results presented in accordance with accounting principles generally accepted in the U.S. ("GAAP") included in this presentation, Motorola Solutions, Inc. (the “Company”) also has included non-GAAP measurements of results, including free cash flow, non-GAAP

13. Slide 13: Supplemental Disaggregation of Revenue

    SUPPLEMENTAL DISAGGREGATION OF REVENUE

14. Slide 14: Supplemental Non-GAAP Measures

    SUPPLEMENTAL NON-GAAP MEASURES Motorola Solutions, Inc. and Subsidiaries Non-GAAP Trend (In millions, except for per share amounts)

15. Slide 15: Supplemental Non-GAAP Measures

    SUPPLEMENTAL NON-GAAP MEASURES

16. Slide 16: Supplemental Non-GAAP Measures

    SUPPLEMENTAL NON-GAAP MEASURES

17. Slide 17: Reconciliation of GAAP Net Earnings to EBITDA and Adjusted EBITDA

    RECONCILIATION OF GAAP NET EARNINGS TO EBITDA AND ADJUSTED EBITDA SUPPLEMENTAL NON-GAAP MEASURES NET DEBT CALCULATION NET DEBT TO ADJUSTED EBITDA CALCULATION *** Refer to slide 14 for details of highlighted items

18. Slide 18: Reconciliation of GAAP Net Earnings to EBITDA and Adjusted EBITDA

    RECONCILIATION OF GAAP NET EARNINGS TO EBITDA AND ADJUSTED EBITDA SUPPLEMENTAL NON-GAAP MEASURES *** Refer to slide 14 for details of highlighted items

19. Slide 19: Thank You

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