Slide 1: First Quarter 2023 Results
Click to enter Presentation Title Subhead Copy here Zebra Technologies First Quarter 2023 Results May 2, 2023 Presenter Name 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 Q1 Highlights 01 Bill Burns, CEO Q1 Financials and 2023 Outlook 02 Nathan Winters, CFO Advancing Our Enterprise Asset 03 Intelligence Vision Bill Burns, CEO Q&A Bill Burns, CEO 04 Nathan Winters, CFO Joe Heel, Chief Revenue Officer ZEBRA TECHNOLOGIES
Slide 4: First Quarter 2023 P&L Highlights
Highlights First Quarter 2023 P&L Highlights (1) • Solid Q1 results in a challenging macro environment; sales and profitability above the midpoint of our outlook • Organic Net Sales (0.3)% ‒ Regional sales performance mixed; growth in APAC and NA offset declines in EMEA and LA ‒ Sales growth to smal
Slide 5: Agenda
Agenda Q1 Highlights 01 Bill Burns, CEO Q1 Financials and 2023 Outlook 02 Nathan Winters, CFO Advancing Our Enterprise Asset 03 Intelligence Vision Bill Burns, CEO Q&A Bill Burns, CEO 04 Nathan Winters, CFO Joe Heel, Chief Revenue Officer ZEBRA TECHNOLOGIES
Slide 6: First Quarter P&L Summary
Q1 Financials First Quarter P&L Summary(1) SEGMENT ORGANIC SALES GROWTH(2,3) In millions, except per share data 1Q23 1Q22 Change • EVM Segment (11.2)% • AIT Segment +28.4% Adjusted Net Sales $1,405 $1,432 -1.9% REGIONAL ORGANIC SALES GROWTH(2,3) Organic Net Sales Growth(2,3) -0.3% • North America +1
Slide 7: Cash Flow & Balance Sheet Highlights
Q1 Financials Cash Flow & Balance Sheet Highlights Cash Flow: 1Q23 Strong Balance Sheet: 1Q23 • Free cash flow of $(92)M, $132M lower YoY • $85M cash & cash equivalents ‒ Higher use of working capital due to higher payments for inventory • $2.1B total debt on balance sheet ‒ Higher cash taxes and in
Slide 8: Global Premium Supply Chain Costs
Q1 Financials Global Premium Supply Chain Costs In Millions of USD 68 63 56 44 30 25 21 12 15 15 Note: Premium supply chain costs calculation compared to pre-pandemic 2019 baseline ZEBRA TECHNOLOGIES 8
Slide 9: Outlook & Assumptions
2023 Outlook Outlook & Assumptions 2Q23 FY23 • Net sales decline between 9% and 11% YoY • Net sales decline between 2% and 6% YoY ‒ ~ 2 percentage point negative impact from ‒ ~ 1 percentage point negative impact from foreign currency changes foreign currency changes ‒ ~ 50 basis point additive impa
Slide 10: Agenda
Agenda Q1 Highlights, CEO Transition 01 Bill Burns, CEO Q1 Financials and 2023 Outlook 02 Nathan Winters, CFO Advancing Our Enterprise Asset 03 Intelligence Vision Bill Burns, CEO Q&A Bill Burns, CEO 04 Nathan Winters, CFO Joe Heel, Chief Revenue Officer ZEBRA TECHNOLOGIES
Slide 11: 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 11
Slide 12: Zebra Enables the Smart Warehouse and Manufacturing Automation
Advancing EAI Zebra Enables the “Smart Warehouse” and Manufacturing Automation Drive Increased Labor Productivity & Efficiency Through Industrial Automation Solutions Technology-Equipped Workers Enhance Supply Chain Agility Improve Production Quality & Yield Maximize Utilization & Productivity Machi
Slide 13: 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 14: Mitigating Actions for Current Challenges
Mitigating Actions for Current Challenges CHALLENGES ACTIONS Demand and Macroeconomic Uncertainty • Work closely with customers in deployment of o Tighter capex budgets solutions to drive efficiency o Elongated sales cycles and deployments o Lower sales into distribution as product lead • Accelerati
Slide 15: Agenda
Agenda Q1 Highlights, CEO Transition 01 Bill Burns, CEO Q1 Financials and 2023 Outlook 02 Nathan Winters, CFO Advancing Our Enterprise Asset 03 Intelligence Vision Bill Burns, CEO Q&A Bill Burns, CEO 04 Nathan Winters, CFO Joe Heel, Chief Revenue Officer ZEBRA TECHNOLOGIES
Slide 16: Q&A
Q&A ZEBRA TECHNOLOGIES
Slide 17: Appendix
Appendix ZEBRA TECHNOLOGIES 17
Slide 18: 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,” “adjusted gross margin,” “EBITDA,” “Adjusted EBITDA,” “Adjusted EBITDA margin,” “Adjusted EBITDA % of adjusted net sales,” “non-GAAP net
Slide 19: GAAP to Non-GAAP Organic Net Sales Growth Reconciliation
GAAP to Non-GAAP Organic Net Sales Growth Reconciliation (Unaudited) ZEBRA TECHNOLOGIES 19
Slide 20: GAAP to Non-GAAP Gross Margin Reconciliation
GAAP to Non-GAAP Gross Margin Reconciliation (In millions) (Unaudited) ZEBRA TECHNOLOGIES 20
Slide 21: 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 22: GAAP to Non-GAAP EBITDA Reconciliation
GAAP to Non-GAAP EBITDA Reconciliation (In millions) (Unaudited) ZEBRA TECHNOLOGIES 22
Slide 23: GAAP to Non-GAAP Free Cash Flow Reconciliation
GAAP to Non-GAAP Free Cash Flow Reconciliation (In millions) (Unaudited) ZEBRA TECHNOLOGIES 23
Slide 24: 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