Zebra Technologies Corporation · NASDAQ:ZBRA
Zebra Technologies — Baird Global Industrial Conference 2019
27 slides from Zebra Technologies's conference presentation, Nov 7, 2019
Slide 1: Baird Global Industrial Conference
Baird Global Industrial Conference November 7, 2019 ZEBRA TECHNOLOGIES
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: Zebra: Compelling Investment Opportunity
Zebra: Compelling Investment Opportunity • Innovation & Expertise • Industry Leadership IMAGE AREA 7.5” h x 7.4”w • Capitalizing on Megatrends • Global Reach and Scale • Diversified Customer Base • Attractive Earnings Expansion ZEBRA TECHNOLOGIES 3
Slide 4: Evolution to Solutions Provider
Evolution to Solutions Provider Research & Development Savanna Data Intelligence Platform First Mobile RFID First Wearable Printing Solutions First Barcode Computer First Smart Workforce Connect Printer First Laser- Environment Enterprise Scannable First Enterprise for Thermal Communications Two- Di
Slide 5: Industry Leader With Global Diversified Customer Base
Industry Leader With Global Diversified Customer Base Sales by Geography Sales by Vertical Market Sales by Segment Latin America Asset Other Asia Intelligence Pacific North Retail & and America Ecommerce Tracking Healthcare Enterprise Visibility Manufacturing and EMEA Mobility Transportation & Logis
Slide 6: Market Leadership
Market Leadership Asset Intelligence & Tracking (AIT) Enterprise Visibility & Mobility (EVM) #1 Market Share in Enterprise Mobile Computing (~50%) #1 Market Share in Barcode Printing (>40%) and Data Capture Solutions (~ 30%) Segment Sales1: $1.47B Segment Sales1: $2.96B Printing Enterprise Mobile Co
Slide 7: Zebra Enables Enterprise Asset Intelligence
Zebra Enables Enterprise Asset Intelligence SENSE ANALYZE ACT Apply Insight to Identity | Location | Status Enable the Best Next Move Real-Time Analytics Savanna Data Intelligence Platform Our Competitive Differentiation = Hardware + Software + Cloud ZEBRA TECHNOLOGIES 7
Slide 8: Advancing Our Enterprise Asset Intelligence Vision
Advancing Our Enterprise Asset Intelligence Vision Framework Recent Examples Area of Opportunity Act Intelligent Direct Best Next Move Automation Developer Partner Ecosystem Analyze Machine Learning / Real-Time Analytics Artificial Intelligence Sense Computer Vision Identity | Location | Status Impr
Slide 9: A Technology Leader in Attractive Markets
A Technology Leader in Attractive Markets $25B+ Addressable Market Opportunity 4-5% annualized organic sales growth Expansion Expansion Extending our leadership position and $15B+ penetration in core markets $15B+ Faster growth markets Faster growth markets than the core than the core Evolving the p
Slide 10: Achieving Strong Profitable Growth
Achieving Strong Profitable Growth (1) FY15 FY16 FY17 FY18 YTD 3Q19 (2,3,4) Organic Net Sales Growth +7.5% +0.4% +6.5% +11.1% +5.9% Adjusted EBITDA Margin 16.2% 17.5% 18.6% 20.7% 21.7% Non-GAAP Diluted EPS Growth NM +10% +26% +56% +18% Free Cash Flow (Annual) $0M $303M $428M $721M $685M(5) (6) Free
Slide 11: Thank You
Thank You Investor Relations InvestorRelations@zebra.com (847) 793-5592 ZEBRA and the stylized Zebra head are trademarks of ZIH Corp, registered in many jurisdictions worldwide. All other trademarks are the property of their respective owners. ©2018 ZIH Corp and/or its affiliates. All rights reserve
Slide 12: Appendix
Appendix
Slide 13: 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,” “Non-GAAP net income,” “Non-GAAP earnings per share,” “free cash flow,” “organic net sales growth,” and “adj
Slide 14: GAAP to Non-GAAP Reconciliation – Organic Net Sales Growth
GAAP to Non-GAAP Reconciliation – Organic Net Sales Growth Nine Months Ended September 28, 2019 Consolidated Reported GAAP Consolidated Net sales growth 6.9 % Adjustments: Impact of foreign currency translation (1) 1.1 % (2) Impact of acquisitions (2.1 )% Organic Net sales growth 5.9 % (1) Operating
Slide 15: GAAP to Non-GAAP Reconciliation – Organic Net Sales Growth
GAAP to Non-GAAP Reconciliation – Organic Net Sales Growth Twelve Months Ended December 31, 2018 Reported GAAP Consolidated Net sales growth 13.3 % Adjustments: Impact of foreign currency translation (1) (1.6 )% (2) Impact of Xplore acquisition (0.6 )% Organic Net sales growth 11.1 % (1) Operating r
Slide 16: GAAP to Non-GAAP Reconciliation – Organic Net Sales Growth
GAAP to Non-GAAP Reconciliation – Organic Net Sales Growth Twelve Months Ended December 31, 2017 December 31, 2016 Reported GAAP Consolidated Net sales growth 4.1 % (2.1)% Adjustments: Impact of Wireless LAN Net sales (1) 3.2 % 1.4 % Impact of foreign currency translation(2) (0.6)% 1.3 % Corporate,
Slide 17: GAAP to Non-GAAP Reconciliation – EBITDA
GAAP to Non-GAAP Reconciliation – EBITDA Nine Months Ended September September 28, 29, 2019 2018 Net income $ 375 $ 306 Add back: Depreciation 55 60 Amortization of intangible assets 84 71 Total Other expenses, net 85 55 Income tax expense 44 70 EBITDA (Non-GAAP) 643 562 Adjustments to Cost of sales
Slide 18: GAAP to Non-GAAP Reconciliation – EBITDA
GAAP to Non-GAAP Reconciliation – EBITDA Twelve Months Ended December 31, 2018 Net income (loss) $ 421 Add back: Depreciation 78 Amortization of intangible assets 97 Total Other expenses, net 86 Income tax expense 103 EBITDA (Non-GAAP) 785 Adjustments to Net sales Purchase accounting adjustments — T
Slide 19: GAAP to Non-GAAP Reconciliation – EBITDA
GAAP to Non-GAAP Reconciliation – EBITDA ZEBRA TECHNOLOGIES 19
Slide 20: GAAP to Non-GAAP Reconciliation – EBITDA
GAAP to Non-GAAP Reconciliation – EBITDA Twelve Months Ended December 31, EBITDA Reconciliation 2015 Operating income $ 37 Depreciation 69 Amortization of intangible assets 251 EBITDA (Non-GAAP) 357 Adjustments to Net sales Purchase accounting adjustments 16 Total adjustments to Net sales 16 Adjustm
Slide 21: GAAP to Non-GAAP Reconciliation – Net Income
GAAP to Non-GAAP Reconciliation – Net Income ZEBRA TECHNOLOGIES 21
Slide 22: GAAP to Non-GAAP Reconciliation – Net Income
GAAP to Non-GAAP Reconciliation – Net Income Twelve Months Ended December 31, 2018 Net income (loss) $ 421 Adjustments to Net sales (1) Purchase accounting adjustments — Total adjustment to Net sales — Adjustments to Cost of sales (1) Purchase accounting adjustments 3 Share-based compensation 4 Tota
Slide 23: GAAP to Non-GAAP Reconciliation – Net Income
GAAP to Non-GAAP Reconciliation – Net Income Twelve Months Ended December 31, December 31, December 31, 2017 2016 2015 Net income (loss) $ 17 $ (137 ) $ (158 ) Adjustments to Net sales (1) Purchase accounting adjustments 3 10 16 Total adjustment to Net sales 3 10 16 Adjustments to Cost of sales (1)
Slide 24: GAAP to Non-GAAP Reconciliation – Net Income
GAAP to Non-GAAP Reconciliation – Net Income Trailing Twelve Three Months Ended Months Ended September 28, June 29, March 30, December 31, September 28, 2019 2019 2019 2018 2019 Net income $ 136 $ 124 $ 115 $ 115 $ 490 (1) Adjustments to Cost of sales Purchase accounting adjustments 3 2 1 2 8 Share-
Slide 25: GAAP to Non-GAAP Reconciliation – Free Cash Flow
GAAP to Non-GAAP Reconciliation – Free Cash Flow Trailing Twelve Three Months Ended Months Ended September 28, June 29, March 30, December 31, September 28, 2019 2019 2019 2018 2019 Net cash provided by operating activities $ 225 $ 153 $ 42 $ 325 $ 745 Less: Purchases of property, plant and equipmen
Slide 26: GAAP to Non-GAAP Reconciliation – Free Cash Flow
GAAP to Non-GAAP Reconciliation – Free Cash Flow Twelve Months Ended December 31, 2018 Net cash provided by operating activities $ 785 Less: Purchases of property, plant and equipment (64) Free cash flow (Non-GAAP)(1) $ 721 (1) Free cash flow is defined as Net cash provided by operating activities i
Slide 27: GAAP to Non-GAAP Reconciliation – Free Cash Flow
GAAP to Non-GAAP Reconciliation – Free Cash Flow Twelve Months Ended December 31, December 31, December 31, 2017 2016 2015 Net cash provided by operating activities $ 478 $ 380 $ 122 Less: Purchases of property, plant and equipment (50 ) (77 ) (122 ) Free cash flow (Non-GAAP)(1) $ 428 $ 303 $ 0 Free
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