Slide 1: Fourth Quarter and Full Year 2022 Results
Click to enter Presentation Title Subhead Copy here Zebra Technologies Fourth Quarter and Full Year 2022 Results February 16, Presenter Name 2023 Date
Slide 2: Safe Harbor Statement
Safe Harbor Statement Statements made in this presentation which are not statements of historical fact are forward-looking statements and are subject to the safe harbor provisions created by the Private Securities Litigation Reform Act of 1995. Actual results may differ from those expressed or impli
Slide 3: Agenda
Agenda Q4 Highlights, CEO Transition 01 Anders Gustafsson, CEO Q4 Financials and 2023 Outlook 02 Nathan Winters, CFO Advancing Our Enterprise Asset 03 Intelligence Vision Bill Burns, Chief Product & Solutions Officer Q&A Anders Gustafsson, CEO 04 Bill Burns, Chief Product & Solutions Officer Joe Hee
Slide 4: Fourth Quarter 2022 P&L Highlights
Highlights Fourth Quarter 2022 P&L Highlights (1) • Strong finish to a challenging year, with sales and profitability near the high end of our outlook • Organic Net Sales Growth +3.9% ‒ Recovered from challenges with N.A. distribution center transition ‒ Outperformance in NA and LA, EMEA declined ‒
Slide 5: CEO Transition On Track
CEO Transition CEO Transition On Track Previously Announced on December 8 Bill Burns • Incoming CEO, effective March 1, 2023 • Current Chief Product and Solutions Officer • Joined Zebra in 2015 to lead acquired Enterprise business Anders Gustafsson • Transitioning to Executive Chair effective March
Slide 6: Agenda
Agenda Q4 Highlights, CEO Transition 01 Anders Gustafsson, CEO Q4 Financials and 2023 Outlook 02 Nathan Winters, CFO Advancing Our Enterprise Asset 03 Intelligence Vision Bill Burns, Chief Product & Solutions Officer Q&A Anders Gustafsson, CEO 04 Bill Burns, Chief Product & Solutions Officer Joe Hee
Slide 7: Fourth Quarter P&L Summary
Q4 Financials Fourth Quarter P&L Summary(1) SEGMENT ORGANIC SALES GROWTH(2,3) In millions, except per share data 4Q22 4Q21 Change • EVM Segment (0.2)% • AIT Segment +13.5% Adjusted Net Sales $1,503 $1,467 +2.5% REGIONAL ORGANIC SALES GROWTH(2,3) • North America +11% Organic Net Sales Growth(2,3) +3.
Slide 8: Cash Flow & Balance Sheet Highlights
Q4 Financials Cash Flow & Balance Sheet Highlights Cash Flow: FY 2022 Strong Balance Sheet: FYE 2022 • $413M free cash flow, $597M lower YoY • $105M cash & cash equivalents ‒ Higher use of working capital due to elevated • $2,032M total debt on balance sheet inventory ‒ Higher incentive compensation
Slide 9: Global Premium Supply Chain Costs
Q4 Financials Global Premium Supply Chain Costs In Millions of USD 68 63 56 44 30 25 21 20 12 Note: Premium supply chain costs calculation compared to pre-pandemic 2019 baseline ZEBRA TECHNOLOGIES 9
Slide 10: 2023 Outlook & Assumptions
2023 Outlook Outlook & Assumptions 1Q23 FY23 • Net sales decline between (4)% and (1)% YoY • Net sales to be in the range of a 3% decline and 1% growth YoY ‒ ~ 3 percentage point negative impact from ‒ ~ 1 percentage point negative impact from foreign currency changes foreign currency changes ‒ ~ 50
Slide 11: Agenda
Agenda Q4 Highlights, CEO Transition 01 Anders Gustafsson, CEO Q4 Financials and 2023 Outlook 02 Nathan Winters, CFO Advancing Our Enterprise Asset 03 Intelligence Vision Bill Burns, Chief Product & Solutions Officer Q&A Anders Gustafsson, CEO 04 Bill Burns, Chief Product & Solutions Officer Joe Hee
Slide 12: Zebra Digitizes & Automates the Front Line of Business
Advancing EAI Zebra Digitizes & Automates the Front Line of Business Transforming Workflows: Purpose-Built Hardware + Software + Cloud Analytics Real-Time Actionable Insights ZEBRA TECHNOLOGIES 12
Slide 13: Well Positioned for 5-7% L-T Organic Sales Growth in $30B Served Market
Advancing EAI Zebra Well Positioned for 5-7% L-T Organic Sales Growth in $30B Served Market Attractive Adjacent & Expansion Opportunities Augment Our Vibrant Core Expansion Fixed Industrial Megatrends Scanning / Machine Vision Smart Cameras On-Demand Economy IoT & Asset Visibility Mobility & Cloud C
Slide 14: Zebra Optimizes Workflows for the On-Demand Economy
Advancing EAI Zebra Optimizes Workflows for the On-Demand Economy Trusted Strategic Partner to Industry Leaders Retail & Transportation Other Markets Manufacturing Healthcare Includes Government, Ecommerce & Logistics Education, Hospitality This is a sample text. Insert your desired text here. This
Slide 15: The Modern Store by Zebra
Advancing EAI The Modern Store by Zebra Helping Retailers Solve Ongoing Store Challenges Engaged Associates Optimized Inventory Elevated Customer Experience Reduce employee turnover Reduce product waste shrink rates Improve customer satisfaction scores Reduce store labor spend Achieve inventory accu
Slide 16: Agenda
Agenda Q4 Highlights, CEO Transition 01 Anders Gustafsson, CEO Q4 Financials and 2023 Outlook 02 Nathan Winters, CFO Advancing Our Enterprise Asset 03 Intelligence Vision Bill Burns, Chief Product & Solutions Officer Q&A Anders Gustafsson, CEO 04 Bill Burns, Chief Product & Solutions Officer Joe Hee
Slide 17: Q&A
Q&A ZEBRA TECHNOLOGIES
Slide 18: Appendix
Appendix ZEBRA TECHNOLOGIES 18
Slide 19: Use of Non-GAAP Financial Information
Use of Non-GAAP Financial Information This presentation contains certain Non-GAAP financial measures, consisting of “adjusted net sales,” “adjusted gross profit,” “EBITDA,” “Adjusted EBITDA,” “Adjusted EBITDA margin,” “non-GAAP diluted net income,” “non-GAAP diluted earnings per share,” “free cash f
Slide 20: GAAP to Non-GAAP Organic Net Sales Growth Reconciliation
GAAP to Non-GAAP Organic Net Sales Growth Reconciliation (Unaudited) ZEBRA TECHNOLOGIES 20
Slide 21: GAAP to Non-GAAP Gross Margin Reconciliation
GAAP to Non-GAAP Gross Margin Reconciliation (In millions) (Unaudited) ZEBRA TECHNOLOGIES 21
Slide 22: GAAP to Non-GAAP Net Income Reconciliation
(In millions, except share data) GAAP to Non-GAAP Net Income Reconciliation (Unaudited) (1) Presented on a pre-tax basis. (2) Represents adjustments to GAAP income tax expense commensurate with pre-tax non-GAAP adjustments (including the resulting impacts to U.S. BEAT/GILTI provisions), as well as a
Slide 23: GAAP to Non-GAAP EBITDA Reconciliation
(In millions) GAAP to Non-GAAP EBITDA Reconciliation (Unaudited) ZEBRA TECHNOLOGIES 23
Slide 24: GAAP to Non-GAAP Free Cash Flow Reconciliation
GAAP to Non-GAAP Free Cash Flow Reconciliation (In millions) (Unaudited) ZEBRA TECHNOLOGIES 24
Slide 25: About Zebra
About Zebra Zebra (NASDAQ: ZBRA) empowers the front line of business in retail, manufacturing, transportation and logistics, healthcare, and other industries to achieve a performance edge. We deliver industry-tailored, end-to-end solutions that intelligently connect people, assets and data to help o