Slide 1: Zebra Technologies Third Quarter 2022 Results
Zebra Technologies Third Quarter 2022 Results November 1, 2022 ZEBRA TECHNOLOGIES
Slide 2: Safe Harbor Statement
Insert Section Title Here 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 fro
Slide 3: Agenda
Agenda 01 Q3 Highlights Anders Gustafsson, CEO 02 Q3 Financials and Q4 Outlook Nathan Winters, CFO 03 Advancing Our Enterprise Asset Intelligence Vision Anders Gustafsson, CEO 04 Q&A Anders Gustafsson, CEO Nathan Winters, CFO Joe Heel, Chief Revenue Officer ZEBRA TECHNOLOGIES
Slide 4: Third Quarter 2022 P&L Highlights
Third Quarter 2022 P&L Highlights (1) • Sales and earnings results unfavorable to outlook due to supply chain challenges and deferred projects from large customers • Organic Net Sales (3.2)% ‒ Supply chain challenges related to persistent component shortages for certain products and disruption in th
Slide 5: Agenda
Agenda 01 Q3 Highlights Anders Gustafsson, CEO 02 Q3 Financials and Q4 Outlook Nathan Winters, CFO 03 Advancing Our Enterprise Asset Intelligence Vision Anders Gustafsson, CEO 04 Q&A Anders Gustafsson, CEO Nathan Winters, CFO Joe Heel, Chief Revenue Officer ZEBRA TECHNOLOGIES
Slide 6: Third Quarter P&L Summary
Third Quarter P&L Summary(1) In millions, except per share data 3Q22 3Q21 Change SEGMENT ORGANIC SALES GROWTH(2,3) • EVM Segment (8.8)% Adjusted Net Sales $1,378 $1,436 (4.0)% • AIT Segment +12.4% Organic Net Sales Growth(2,3) (3.2)% REGIONAL ORGANIC SALES GROWTH(2,3) Adjusted Gross Profit $631 $648
Slide 7: Cash Flow & Balance Sheet Highlights
Cash Flow & Balance Sheet Highlights Cash Flow: YTD 3Q22 Strong Liquidity Position: 3Q22 • $170M free cash flow, $628M lower YoY • $81M cash & cash equivalents ‒ Higher use of working capital due to elevated • $2,170M total debt on balance sheet inventory and timing of sales ‒ Higher incentive compe
Slide 8: Global Premium Supply Chain Costs
Global Premium Supply Chain Costs Abating as Component Supply and Freight Capacity Improves In Millions of USD Estimate ~ $190M FY22 Impact, Net of Price Increase 68 63 56 44 35 30 Note: Premium supply chain costs calculation compared to pre-pandemic 2019 baseline ZEBRA TECHNOLOGIES 8
Slide 9: Outlook & Assumptions
Outlook & Assumptions 4Q22 FY22 • Adjusted net sales growth(1) expected to be >1% YoY (based on Q4 • Adjusted net sales growth(1) ~ (2)% to +1% YoY outlook) ‒ approximately 2 point additive impact from recently acquired businesses • Adjusted EBITDA margin ~ 21-22% (based on Q4 outlook) ‒ approximate
Slide 10: Agenda
Agenda 01 Q3 Highlights Anders Gustafsson, CEO 02 Q3 Financials and Q4 Outlook Nathan Winters, CFO 03 Advancing Our Enterprise Asset Intelligence Vision Anders Gustafsson, CEO 04 Q&A Anders Gustafsson, CEO Nathan Winters, CFO Joe Heel, Chief Revenue Officer ZEBRA TECHNOLOGIES
Slide 11: Zebra Digitizes & Automates the Front Line of Business
Zebra Digitizes & Automates the Front Line of Business Transforming Workflows: Purpose-Built Hardware + Software + Cloud Analytics Real-Time Actionable Insights ZEBRA TECHNOLOGIES 11
Slide 12: Zebra Optimizes Workflows for the On-Demand Economy
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 is a sample te
Slide 13: Summary Actions To Address Current Challenges
Summary Actions To Address Current Challenges SITUATION ACTIONS • Organizational changes and reallocation of resources to drive improved focus Supply Chain Challenges: and execution in our supply chain function N.A. Distribution Center • Initiated specific initiatives with our supply chain partners
Slide 14: Agenda
Agenda 01 Q3 Highlights Anders Gustafsson, CEO 02 Q3 Financials and Q4 Outlook Nathan Winters, CFO 03 Advancing Our Enterprise Asset Intelligence Vision Anders Gustafsson, CEO 04 Q&A Anders Gustafsson, CEO Nathan Winters, CFO Joe Heel, Chief Revenue Officer ZEBRA TECHNOLOGIES
Slide 15: Q&A
Q&A ZEBRA TECHNOLOGIES
Slide 16: Appendix
Appendix ZEBRA TECHNOLOGIES 16
Slide 17: 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 fl
Slide 18: GAAP to Non-GAAP Organic Net Sales Growth Reconciliation
GAAP to Non-GAAP Organic Net Sales Growth Reconciliation (Unaudited) ZEBRA TECHNOLOGIES 18
Slide 19: GAAP to Non-GAAP Gross Margin Reconciliation
(In millions) GAAP to Non-GAAP Gross Margin Reconciliation (Unaudited) ZEBRA TECHNOLOGIES 19
Slide 20: 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 adj
Slide 21: GAAP to Non-GAAP EBITDA Reconciliation
(In millions) GAAP to Non-GAAP EBITDA Reconciliation (Unaudited) ZEBRA TECHNOLOGIES 21
Slide 22: GAAP to Non-GAAP Free Cash Flow Reconciliation
(In millions) GAAP to Non-GAAP Free Cash Flow Reconciliation (Unaudited) ZEBRA TECHNOLOGIES 22
Slide 23: 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