Motorola Solutions, Inc. · NYSE:MSI
Motorola Solutions — Investor Presentation (June 2025)
51 slides from Motorola Solutions's investor presentation, June 2025
Slide 1: Investor Overview
Investor Overview June 2025 ● Investment thesis ● Total addressable market ● Who we serve ● Segments and technologies ● Financials ● Capital allocation
Slide 2: Solving for safer
Solving for safer We build and connect technologies to help protect 36% people, property & places. of 2024 revenue from Software & Services, a proxy for ARR Video Security & LMR Command 17% CAGR Access Control Communications Center Non-GAAP EPS growth since 2015 5M+ 13K 3.6K of 6K fixed video cameras
Slide 3: Segments & Technologies
Segments & Technologies 2024 Annual Revenue Products & Software & Systems Integration Services Segment Segment (primarily recurring) LMR Products LMR Services and Integration Command Center Video Security & LMR Command Video Products Video Software Access Control Communications Center $6.9B $3.9B $1
Slide 4: A technology ecosystem for public safety and enterprise security with $72B TAM
A technology ecosystem for public safety and enterprise security with $72B TAM* Video Security & Access Control LMR Communications Command Center Our video security and access control Our critical communications devices and networks Our command center technologies can bring systems, powered by AI, c
Slide 5: Investment thesis
Investment thesis Revenue growth Cash flow generation ● Nearly half of revenue now Video, software, and ● Durable cash flows driven by recurring and recurring Services reoccurring revenue ● Cloud and SaaS revenue growing rapidly ● 152% growth in annual free cash flow since 2015 ● Increased demand for s
Slide 6: Who we serve
Public Safety Who we serve We enable the collaboration between public EMERGENCY POLICE FIRE MEDICAL safety agencies and enterprises for a proactive approach to safety and security. NATIONAL PUBLIC CRITICAL SECURITY SERVICES EDUCATION INFRASTRUCTURE $10.8B ~70% of revenue 2024 Annual Revenue Enterpri
Slide 7: Revenue by Geographic Region
Revenue by Region International Geographic $10.8B* of Revenue $3.0B of Revenue Region 2024 Annual Revenue 72% 28% ● North America ● EMEA/Australia & NZ ● International ● Other * China revenues represent <1% of 2024 Annual Revenue
Slide 8: Revenue Who we serve
Revenue 2024 Public Safety Who we serve $10.8B of Revenue ~70% of Revenue 2024 Annual Revenue 12% ~30% ~70% 62% 26% ● Public Safety ● North America state and local ● Enterprise ● U.S. federal agencies ● International public safety
Slide 9: Ongoing Portfolio Transformation
Ongoing 2015 2024 Portfolio $5.7B of Revenue $10.8B of Revenue Transformation Nearly half of revenue now video, software and recurring services Total Addressable Market Total Addressable Market ~$13B ~$72B* ● LMR Products and Systems Integration ● Services, Command Center, Video Security & Access Co
Slide 10: Strong backlog driven by multi-year agreements
Strong backlog driven by multi-year agreements ($B) Backlog growth drivers ● Multi-year service agreements ● Cloud and SaaS acceleration ● North America and International ● Software & Services ● Products & SI
Slide 11: Strong Financial Track Record
Strong +10% Y/Y +8% Y/Y +8% +10% Y/Y +5% Y/Y Y/Y Financial +13% +12% Y/Y Y/Y +9% +10% +14% Y/Y +7% Y/Y Y/Y Y/Y (6%) +20% Track Record +15% Y/Y Y/Y Y/Y +14% +6% +41% Y/Y Y/Y +6% Y/Y Y/Y Summary Total Revenue Growth ($B) Software & Services Segment Revenue Growth* ($B) ● Consistent compounded revenue
Slide 12: 2025 Guidance
2025 Guidance $14.64 - May 1, 2025 +~5.5% $13.84 $14.74 $10.8 FY guidance E ● Revenue growth of approx. 5.5% ● Non-GAAP EPS $14.64 - $14.74 E E ● $2.65B of Operating Cash Flow Total Revenue Growth ($B) Non-GAAP EPS
Slide 13: Capital allocation framework drives shareholder value
Capital allocation framework drives shareholder value Based on operating cash flow Capex Asset light model Share repurchases or acquisitions ~$8.3B* of share repurchases, retiring 23% of share float at average cost of $99.37 Annual Dividend since 2015** Double digit annual ~$7B*** increases since 2015
Slide 14: Accretive Acquisitions
Accretive ~$7B invested since 2015* Acquisitions Video Security & Access Control Command Center LMR Communications Estimated 2025 2018 2015 2016 2016 contribution 2019 2019 2017 2018 ~$3B 2017 Revenue 2020 2020 High-single digit 2020 2021 2019 Growth rate 2021 2021 ~20% 2022 2022 2022 2024 2022 Adj.
Slide 15: Video Security & Access Control
Video Security & Access Control Our video security and access control systems, powered by AI, can alert you when action is needed, focusing human attention to help cover more ground and act with more certainty.
Slide 16: Video Security & Access Control: Current environment, Our approach
Video Security & Access Control Current environment Our approach ● 5M+ fixed cameras across More than just cameras and footage, our video 300k+ installations solutions combine computer vision with AI, helping to recognize what’s important and what’s not. ● Less than 20% of events are detected after t
Slide 17: Video Security & Access Control product families
Video Security & Access Control Fixed video Access control In-car Body License plate security management video systems cameras analytics Embedded AI locates Video, biometrics, In-car video combines Radios automate Patented analytics help persons or vehicles, weapons detection, with body-worn and cam
Slide 18: Video Security & Access Control Portfolio
Video Security & Access Control Portfolio Fixed Video & Mobile Video Access Control ● Body cameras ● Avigilon Unity on-prem suite ● In-car cameras $1.9B ● License plate recognition ● Avigilon Alta cloud suite 2024 Revenue Mobile Video ● Specialized cameras solutions and services ● Specialty sensors
Slide 19: ~50% of total video sales in government & public safety, education and healthcare
~50% of total video sales in government & public safety, education and healthcare Financial Services Gov’t & Public Safety Additional Verticals ● Manufacturing ● Commercial Buildings $1.9 Billion 2024 ● Retail Video Revenue ● Utilities ● Entertainment ● Transportation Education ● Hospitality Healthc
Slide 20: SVX with Assist
SVX with Assist Features ● Enhances APX NEXT family with advanced AI capabilities through an integrated body-worn camera ● Provides secure, P25 superior audio that significantly improves AI experience and evidence capture ● Streamlines operations and improves user experience through a converged speak
Slide 21: Video Security & Access Control Growth and Monetization
Video Security & Access Control Growth and Monetization Gaining share in video security ● $1.9B+ in sales growing double digits in $34B TAM ● 5M+ fixed video cameras deployed across 300K+ sites ● 90% of our fixed video camera portfolio has embedded AI capabilities ● Broad on-prem and cloud fixed video
Slide 22: Land Mobile Radio Communications
Land Mobile Radio Communications Our critical communications devices and networks are designed for the harshest conditions, helping you stay connected and communicate with clarity when it matters most - from everyday routines to a crisis unfolding.
Slide 23: LMR Communications: Current environment, Our approach
LMR Communications Current environment Our approach ● When disaster strikes, cellular networks can Secure and resilient communications unify voice fail or get overloaded - Hurricanes Helene and and multimedia collaboration for critical events Milton, Los Angeles wildfires ● 13K+ LMR networks globally
Slide 24: LMR Communications offerings
LMR Communications Public safety Enterprise LMR software & Public safety communications communications services cloud core Highly survivable networks, total Secure, encrypted networks Strong adoption for managed Streamlining radio management, control of coverage, capacity, protect sensitive communic
Slide 25: LMR Portfolio
LMR Portfolio 2024 Majority of LMR revenue driven by $8.1B of LMR Revenue recurring services and multi-year public safety device refresh cycles Public Safety Devices Services ● Critical networks with expanded ● Multi-year refresh cycles across scope and new value-added services thousands of customer
Slide 26: LMR Communications Growth and Monetization
LMR Communications Growth and Monetization A global leader in critical communications ● Platform business growing by low to mid-single digits ● 13k+ LMR networks globally, 50+ nationwide & statewide systems ● Networks monetized with recurringf services and devices replaced every 6-8 years ● Multi-ye
Slide 27: Command Center
Command Center Our command center technologies can bring voice, video and data into a single view to help simplify workflows and provide the overarching perspective to make decisions with greater focus, accuracy and speed.
Slide 28: Command Center: Current environment, Our approach
Command Center Current environment Our approach ● ~3.6K out of 6K 911 centers in the U.S. use Software solutions that support the complex our software solutions. process of the public safety workflow from "911 call to case closure." ● 10k more lives could be saved each year if 911 could get to caller
Slide 29: Detection, Response, Resolution
Command Center Detection Response Resolution Community tipping, mass notification, panic Dispatch & coordination, real-time intelligence & Centralized records, evidence buttons and 911 call handling & routing collaboration, field reporting and broadband management and investigative tools enabled solut
Slide 30: Command Center
Command Center 911 call handling & routing Collaborative workflow applications $0.8 Billion ● CommandCentral Aware ● Cloud-native, on-prem and hybrid ● Assistive AI enhances user 2024 Revenue ● Push to talk (PTT) broadband communications workflows and creates efficiencies ● Mass notification and alerting
Slide 31: Command Center Growth and Monetization
Command Center Growth and Monetization End-to-end platform offered in the cloud and on-prem ● Large software install base of 3.6k 911 centers in the U.S. creates significant expansion opportunity ● Sales of ~$0.8B growing double digits in $18B TAM ● More than 60% of our Command Center customers have
Slide 32: Solving with AI
Solving with AI Taking a proactive and responsible approach to enabling the use of AI and generative AI in our solutions and within our teams Human-Centered Application in 3 Areas Automate the mundane Accelerate analysis Protect privacy Human attention Human action Human judgement Detect key events
Slide 33: SVX & Assist
SVX & Assist Converging the incident workflow from APX NEXT through the Command Center enhances user productivity & drives software attachment opportunity APX NEXT SVX Command Center AI Platform Smart Applications Digital Evidence Mobile Apps Command Center SmartConnect CC DEMS Responder Platform Rec
Slide 34: Competitive Landscape
Competitive Video Security & Access Control LMR Communications Command Center Landscape Video Security Our mission-critical ecosystem across video, software and LMR creates competitive differentiation Access Control * This competitive landscape slide includes a non-exhaustive list of some key compet
Slide 35: Additional Financials
Additional Financials
Slide 36: Strong Balance Sheet
Strong +10% +5% Y/Y Balance Sheet Y/Y +8% Moody’s Baa2, Stable +13% Y/Y Y/Y +9% +14% Y/Y S&P BBB, Stable +20% Y/Y Y/Y +14% Fitch BBB, Stable +41% Y/Y Y/Y Summary Investment Grade Rating* Total Liquidity ● Total Liquidity of ~$3.81B ● Net Debt to Adj. EBITDA ratio of ~1.3X ● U.S. Pension ~87% funded
Slide 37: Balanced Debt Maturity Profile
Balanced Debt Maturity Profile* ($M) ● Average maturity ~8yr ● Average coupon under 4.5% ● All fixed-rate notes * As of March 29, 2025
Slide 38: Corporate Responsibility
Corporate Responsibility
Slide 39: We are committed to corporate responsibility
We are committed to corporate responsibility TIME Glassdoor 2024 2025 World’s Best Best Places Companies to Work Philanthropy Environment Employee-initiated giving raised Optimized our company-wide more than $300,000 for causes cloud usage to reduce our around the world carbon emissions Fast Company
Slide 40: Our impact
Our impact Our technologies can directly support some of the world’s largest societal challenges every day. Safer schools Natural disasters Rising retail theft and violence More than 394,000 students have been exposed to gun U.S. natural disasters have cost $2.915 trillion since 1980 Shoplifting inc
Slide 41: Appendix
Appendix
Slide 42: 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 43: Use of non-GAAP measures
Use of non-GAAP measures In addition to the results presented in accordance with accounting principles generally accepted in the U.S. (“GAAP”) in this presentation, Motorola Solutions, Inc. (“Motorola Solutions” or the “Company”) has provided certain non-GAAP measurements. Motorola Solutions has pro
Slide 44: Use of non-GAAP measures
Use of non-GAAP measures Adjusted Free Cash Flow - Represents Free Cash Flow excluding a $500 million voluntary, debt-funded U.S. pension contribution in the first quarter 2018. The Company has excluded the impact of this contribution because the Company believes that this item does not reflect expect
Slide 45: Solving for safer
Solving for safer communities schools hospitals businesses everywhere MOTOROLA, MOTO, MOTOROLA SOLUTIONS and the Stylized M Logo are trademarks or registered trademarks of Motorola Trademark Holdings, LLC and are used under license. All other trademarks are the property of their respective owners. ©
Slide 46: Appendix: Supplemental Non-GAAP Measures
Appendix: Supplemental Non-GAAP Measures * Amounts attributable to Motorola Solutions, Inc. common shareholders. ** Under U.S. GAAP, the accounting for a net loss from continuing operations results in the presentation of dilutive earnings per share equal to basic earnings per share, as any increase
Slide 47: Appendix: Supplemental Non-GAAP Measures
Appendix: Supplemental Non-GAAP Measures Reconciliation of GAAP operating cash flow to adjusted operating cash flow Reconciliation of GAAP operating cash flow to adjusted free cash flow
Slide 48: Appendix: Supplemental Non-GAAP Measures
Appendix: Supplemental Non-GAAP Measures Reconciliation of GAAP net earnings to EBITDA and adjusted EBITDA Net Debt calculation Net Debt to adjusted EBITDA calculation *** Refer to slide 46 for details of highlighted items
Slide 49: Appendix: Supplemental Non-GAAP Measures
Appendix: Supplemental Non-GAAP Measures Reconciliation of GAAP net earnings to EBITDA and adjusted EBITDA *** Refer to slide 46 for details of highlighted items
Slide 50: Appendix: Supplemental Non-GAAP Measures
Appendix: Supplemental Non-GAAP Measures Net Debt to adjusted EBITDA ratio calculation *** Refer to slide 46 for details of highlighted items
Slide 51: Our impact references
Our impact References for slide 40 ● Safer Schools: ○ Gun violence in schools, January 24, 2025: https://www.washingtonpost.com/education/interactive/school-shootings-database/ ○ Federal funding 2024: https://cops.usdoj.gov/pdf/2024AwardDocs/svpp/Post_Award_Fact_Sheet.pdf ● Natural Disasters: ○ Weat
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