Motorola Solutions, Inc. · NYSE:MSI
Motorola Solutions — Merger or Acquisition (April 2014)
16 slides from Motorola Solutions's merger presentation, Apr 15, 2014
Slide 1: MSI to Sell Enterprise Business, Leader in Mission-Critical Public Safety Communications
Exhibit 99.2 MSI to Leader Global Business APRIL Communications Sell 15, 2014 Enterprise in Mission-Critical Public Safety
Slide 2: Safe Harbor
SAFE A expectations and from Information SEC This rebroadcast, Page number should presentation filings the 2HARBOR statements ofnot available about retransmitted of forward-looking be Motorola isrelied factors being contained forupon free Solutions, that made or redistributed on statements as could
Slide 3: Use of Non-GAAP Measures
USE In investors operating evaluate Management are comparable should Details website Page addition inherent OF 3 consider of atresults NON-GAAP better performance these www.motorolasolutions.com/investor. toGAAP limitations uses theunderstand relative items these GAAP operating measures non-GAAP and
Slide 4: Transaction Overview
TRANSACTION Strategic Government Positions Great demonstrated Attractive $3.45B Provides Expect Subject franchise proceeds to valuation toopportunity rationale MSI close valuation customary and operating astransaction with to Enterprise ain OVERVIEW singularly be all for an for closing returned cash
Slide 5: Remaining Business Overview
MSI Products $4.1B 18.8% Core REMAINING devices 5 in Services sales* OE** *Worldwide Page Proforma public public $2.1B 18.0% leadership 2013 safety safetyBUSINESS sales and in Government OE** sales*OVERVIEW position are commercial systems and iDEN & Systems combined. integration, ** OEmanaged = Prof
Slide 6: Competitively Differentiated Business Position
COMPETITIVELY DOMAIN TECHNOLOGY GO STRONG SCALE Unparalleled More 800+ Global *$6B* Page Proforma TO 6sales than incustomer MARKET revenues, FINANCIAL EXPERTISE 70 force FY’13 product years & base 4.3% annual extensive of DIFFERENTIATED portfolio with public CAGR POSITION number 10,000+ safety partn
Slide 7: Diversified Revenue
DIVERSIFIED *2013 Apps Public 2% Europe 16% Revenue Integration Services 3% North IDEN safety Africa radio iDEN 2013 REVENUE PCRRevenue America 32% Support systems includes 63% Latin Managed Services2013 services America 8% Revenue Services 19%by **Accessories Proforma technology** Page Services 38%
Slide 8: Multiple Core Business Growth Drivers
MULTIPLE CORE UNDERPENETRATED VERTICAL ANALOG RADIO EXPECT Page 8 BUSINESS LIFECYCLE LOW TO EXPANSION GROWTH DIGITAL to MID GROWTH &DRIVERS SINGLE-DIGIT GEOGRAPHIES MANAGED MIGRATION GROWTH SMART PUBLIC LONG ADJACENCIES & DRIVE PUBLIC TERM SAFETY—LTE NEW GROWTH SAFETY PRODUCT SERVICES TRANSITIONS RE
Slide 9: Strong Network Installed Base Today, Migration Opportunity
STRONG 10,000+ NETWORK TODAY MUCH PRIVATE DATA “4G” ONALITY P25 “3G” DIGITAL FUNCTIONALITY “2G” ANALOG FEATURES CONVENTIONAL Page YEARS PHASE 9 +OF Systems NEXT FUTURE TRUNKING BROADBAND INSTALL TRUNKING MUCH 1-5 II MIGRATION GEN YEARS Globally OPPORTUNITY OF &BASE APPS P25 DIGITAL 33% “1G” 6-10 PHA
Slide 10: Resilient Government Growth and Operating Leverage
RESILIENT $5.99 CAGR=4.3% Government 14.4% 15.6% 18.5% 19.4% 12.6% *Excludes ** CAGR=12.1% 2007 Non-GAAP; 2008 $6.03 14.1% 12.6% iDEN 2009 $5.18 Segment GROWTH Excludes 2010 business $5.36 Revenues* Profitability** 2011 & $5.05 iDEN OPERATING 2012 $4.68 business 2013$4.80 Page and LEVERAGE 10 corpor
Slide 11: Demonstrated Track Record of Capital Deployment
DEMONSTRATED CUMULATIVE $M&A REDUCTION DIVIDENDS 343M $0.6B SHARE ~$6.7B $5.2B ~$1.7B254M 0.3B Total remaining REPURCHASE CAPEX Q2’11 26% CASH onQ4’13 TRACK current DEPLOYMENT repurchase RECORD OF authorization SHARE CAPITAL COUNT*RETURN Represents REDUCTION* ending share 2011-2013 count 2011-2013 f
Slide 12: Future Capital Structure
FUTURE Committed Capital Will Expect Page retain 12ongoing transaction expenditures CAPITAL sufficient to strong freeproceeds cash STRUCTURE ~20% flexibility balance flow oftosheet operating returned be to returned support and investment through cash “bolt-on” to flow shareholders share grade opport
Slide 13: Summary
Enterprise SUMMARY Expect MSI Strong Long-term Sustainable Page becomes 13competitive to return transaction growth capital a singularly transaction driven deployment differentiation expected by focused, proceeds large model to close with installed industry toaligned leading by shareholders end base,
Slide 14: Slide 14
Slide 15: Use of Non-GAAP Measures
USE In investors operating evaluate Management are comparable should Details website Page addition inherent OF 15consider of atresults NON-GAAP better performance these www.motorolasolutions.com/investor. toGAAP limitations uses theunderstand relative items these GAAP operating measures non-GAAP and
Slide 16: Supplemental Non-GAAP Measures
SUPPLEMENTAL Motorola FY TOTAL Above-OE Share-based Reorganization Intangibles Total Pro-forma Page2013 16 above-OE Products Solutions, revenues GAAP operating pro-forma amortization compensation of pro-forma Services operating business NON-GAAP $Inc. earnings non-GAAP 6,227 expense and non-GAAP exp
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