Slide 1: Third Quarter 2021 Results
Zebra Technologies Third Quarter 2021 Results November 2, 2021
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 Q3 Highlights 01 Anders Gustafsson, CEO Q3 Financials and Q4 Outlook 02 Nathan Winters, CFO Advancing Our Enterprise Asset 03 Intelligence Vision Anders Gustafsson, CEO Q&A 04 Anders Gustafsson, CEO Nathan Winters, CFO Joe Heel, Chief Revenue Officer
Slide 4: Third Quarter 2021 Highlights
Third Quarter 2021 Highlights (1) • Delivered sales, EBITDA margin, and earnings per share results that exceeded our outlook • Organic Net Sales increased 23% ‒ Robust broad-based demand for our solutions that help our customers automate & digitize their operations in the increasingly on-demand glob
Slide 5: Agenda
Agenda Q3 Highlights 01 Anders Gustafsson, CEO Q3 Financials and Q4 Outlook 02 Nathan Winters, CFO Advancing Our Enterprise Asset 03 Intelligence Vision Anders Gustafsson, CEO Q&A 04 Anders Gustafsson, CEO Nathan Winters, CFO Joe Heel, Chief Revenue Officer
Slide 6: Third Quarter P&L Summary
Third Quarter P&L Summary(1) In millions, except per share data 3Q21 3Q20 Change SEGMENT ORGANIC SALES GROWTH(2,3) • EVM Segment +27.9% Adjusted Net Sales $1,436 $1,134 +26.6% • AIT Segment +12.1% Organic Net Sales Growth(2,3) +23.2% REGIONAL ORGANIC SALES GROWTH(2,3) Adjusted Gross Profit $648 $497
Slide 7: Cash Flow & Balance Sheet Highlights
Cash Flow & Balance Sheet Highlights Cash Flow: YTD 3Q21 Strong Liquidity Position: 3Q21 • $798M free cash flow • $307M in cash & cash equivalents – $316M higher free cash flow YoY primarily • $1.0B total debt on balance sheet due to higher net income • Net-debt-to-adjusted-EBITDA ratio of 0.5x • Mo
Slide 8: Global Premium Freight Costs Have Escalated Through Pandemic
Global Premium Freight Costs Have Escalated Through Pandemic Expected to Abate as Component Supply and Freight Capacity Improves In Millions of USD Improve chart asthetics 21 Estimate 4Q21 YoY increase in 17 12 transitory COGS -3 items of ~ $58M, 11 a 4-point negative margin impact Q3-19 Q4-19 Q1-20
Slide 9: Outlook & Assumptions
Outlook & Assumptions 4Q21 FY21 • Adjusted net sales growth expected to be > 25% YoY • Adjusted net sales growth ~ 8-12% YoY (based on Q4 outlook) – ~ 2 percentage point additive impact from recently acquired business (1) and FX • Adjusted EBITDA margin ~ 23% (based on Q4 outlook) • Adj. EBITDA marg
Slide 10: Agenda
Agenda Q3 Highlights 01 Anders Gustafsson, CEO Q3 Financials and Q4 Outlook 02 Nathan Winters, CFO Advancing Our Enterprise Asset 03 Intelligence Vision Anders Gustafsson, CEO Q&A 04 Anders Gustafsson, CEO Nathan Winters, CFO Joe Heel, Chief Revenue Officer
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 ZEBRA TECHNOLOGIES 11 11
Slide 12: Investing To Advance Our Enterprise Asset Intelligence Vision: Retail & CPG
Investing To Advance Our Enterprise Asset Intelligence Vision: Retail & CPG Antuit.ai’s AI-Powered Demand Sensing Is Complimentary To Zebra’s Workflow Software Suite Real-Time Feedback on Execution STORE & SUPPLY CHAIN PLANNING WAREHOUSE & MERCHANDISING OPERATIONS Optimized Workflows, Inventory Work
Slide 13: Zebra Optimizes Workflows for the On-Demand Economy
Zebra Optimizes Workflows for the On-Demand Economy On-Demand Economy Retail & Intelligent Automation Other Markets Ecommerce Enterprise Mobility IoT / Cloud Computing Transportation & Healthcare Logistics ZEBRA TECHNOLOGIES 13 Manufacturing
Slide 14: Healthcare Providers Investing to Automate & Digitize Operations
Healthcare Providers Investing to Automate & Digitize Operations Empowering Clinicians with Mobile Technology Elevates Patient Care and Enhances Workflows More than 8 in 10 decision-makers agree that the Pandemic accelerated investment in technology at their hospital.1 …of IT decision- makers expect
Slide 15: Agenda
Agenda Q3 Highlights 01 Anders Gustafsson, CEO Q3 Financials and Q4 Outlook 02 Nathan Winters, CFO Advancing Our Enterprise Asset 03 Intelligence Vision Anders Gustafsson, CEO Q&A 04 Anders Gustafsson, CEO Nathan Winters, CFO Joe Heel, Chief Revenue Officer
Slide 16: Q&A
Q&A ZEBRA TECHNOLOGIES 16
Slide 17: Appendix
Appendix ZEBRA TECHNOLOGIES 17
Slide 18: Use of Non-GAAP Financial Information
Use of Non-GAAP Financial Information This earnings release 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
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
(In millions) GAAP to Non-GAAP Gross Margin Reconciliation (Unaudited) ZEBRA TECHNOLOGIES 20
Slide 21: GAAP to Non-GAAP Net Income Reconciliation
(In millions, except share data) (Unaudited) GAAP to Non-GAAP Net Income Reconciliation ZEBRA TECHNOLOGIES 21
Slide 22: GAAP to Non-GAAP EBITDA Reconciliation
(In millions) GAAP to Non-GAAP EBITDA Reconciliation (Unaudited) ZEBRA TECHNOLOGIES 22
Slide 23: GAAP to Non-GAAP Free Cash Flow Reconciliation
(In millions) GAAP to Non-GAAP Free Cash Flow Reconciliation (Unaudited) ZEBRA TECHNOLOGIES 23