Motorola Solutions, Inc. · NYSE:MSI
Motorola Solutions — Shareholder Meeting (May 2018)
15 slides from Motorola Solutions's shareholder meeting presentation, May 4, 2018
Slide 1: Investor Presentation May 2018
Investor Presentation May 2018
Slide 2: Safe Harbor
SAFE HARBOR A number of forward-looking statements will be made during this presentation. Forward-looking statements are any statements that are not historical facts. These forward-looking statements are based on the current expectations of Motorola Solutions, and we can give no assurance that any f
Slide 3: Business Overview and Strategy
BUSINESS OVERVIEW AND STRATEGY Extend our leadership in mission-critical solutions Leverage our installed base in Public Safety platforms Deliver end-to-end solutions Grow recurring revenue of managed and support services and software Our Strategy Motorola Solutions is a leading global provider of m
Slide 4: Record Performance
RECORD PERFORMANCE Record Backlog of $9.6B Continue to Deliver Returns to Investors * These are the business performance factor results under the Short-Term Incentive Plan (“STIP”) 1 Operating Earnings is our reported Non-GAAP operating earnings, which excludes highlighted items, stock-based compens
Slide 5: Compensation Program Overview
COMPENSATION PROGRAM OVERVIEW Element Description Rationale Factors Influencing Amount 2017 CEO Pay1 Base Salary Fixed compensation Delivered in cash Provide base amount of market competitive pay Experience, role scope, market and individual performance $1.3M Short-Term Incentive Plan (“STIP”) Varia
Slide 6: Short Term Incentive Plan
SHORT TERM INCENTIVE PLAN Fundamental inputs used internally to measure profitability, business liquidity and rates of return for the business Appropriate measure of the strength and sustainability of our business model and driver of long-term, sustainable stockholder value Targets are aligned with
Slide 7: Long Term Incentive Plan
100% performance-based program demonstrates compensation is tied closely with Company performance LONG TERM INCENTIVE PLAN The Committee determines the total LTI value with reference to market levels through benchmarking completed by our independent consultant, Compensation Advisory Partners The Com
Slide 8: Performance vs. Peers
PERFORMANCE VS. PEERS Company Market Cap ($MM) Industry TSR (2015 – May 2018)1 Harris Corporation $18,021 Aerospace and Defense 127% Raytheon Company $58,047 Aerospace and Defense 101% Motorola Solutions, Inc. $17,541 Communications Equipment 74% Roper Technologies, Inc. $27,314 Industrial Conglomer
Slide 9: Skilled and Diverse Board
SKILLED AND DIVERSE BOARD GREGORY Q. BROWN KENNETH D. DENMAN EGON P. DURBAN CLAYTON M. JONES JUDY C. LEWENT GREGORY K. MONDRE ANNE R. PRAMAGGIORE SAMUEL C. SCOTT III JOSEPH M. TUCCI Relevant industry experience Public company CEOs and CFOs Financial and accounting expertise Information technology &
Slide 10: Governance & Compensation Practices
GOVERNANCE & COMPENSATION PRACTICES Active stockholder engagement process (contacted holders of 62% of shares since late 2017) Annual election of all directors Lead Independent Director Eight of nine director nominees are independent Board Committees comprised entirely of independent directors Commi
Slide 11: Use of Non-GAAP Measures
USE OF NON-GAAP MEASURES In addition to the GAAP results provided during this event, Motorola Solutions has provided certain non-GAAP measurements. Motorola Solutions has provided these non-GAAP measurements as a measure to help investors better understand its core operating performance, enhance com
Slide 12: Use of Non-GAAP Measures
USE OF NON-GAAP MEASURES “Free Cash Flow” and “Operating Earnings” are non-GAAP measures and should not be considered replacements for results in accordance with accounting principles generally accepted in the U.S. (“GAAP”). These non-GAAP measures may not be comparable to similarly-titled measures
Slide 13: Supplemental Non-GAAP Measures
SUPPLEMENTAL NON-GAAP MEASURES SUPPLEMENTAL NON-GAAP MEASURES 13 Motorola Solutions, Inc. and Subsidiaries Non-GAAP Trend (in millions, except per share amounts) Q1 '17 Q2 '17 Q3'17 Q4'17 2017 Net sales $ 1,281 $ 1,497 $ 1,645 $ 1,957 $ 6,380 GAAP gross margin 570 690 794 970 3,024 Non-GAAP gross ma
Slide 14: Supplemental Non-GAAP Measures
SUPPLEMENTAL NON-GAAP MEASURES Year Ended December 31, 2017 Operating Net earnings (loss) attributable to Motorola Solutions, Inc. $ (155) Earnings attributable to noncontrolling interests 4 Net earnings (loss) (151) Adjustments to reconcile earnings (loss) from continuing operations to net cash pro
Slide 15: Investor Presentation May 2018
Investor Presentation May 2018