Motorola Solutions, Inc. · NYSE:MSI
Motorola Solutions — Investor Presentation (February 2021)
31 slides from Motorola Solutions's investor presentation, February 2021
Slide 1: Investor Overview: The Mission-Critical Ecosystem
INVESTOR OVERVIEW THE MISSION-CRITICAL ECOSYSTEM February 2021
Slide 2: Use of Non-GAAP Measures
USE OF NON-GAAP MEASURES In addition to the GAAP results in this presentation, 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 compariso
Slide 3: 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 4: MSI Estimated Addressable Market
MSI ESTIMATED ADDRESSABLE MARKET 2021 SAM $10B Motorola Solutions has created the mission critical ecosystem built for Public Safety & Enterprise. Its technologies create $15B $5B the lifeline your safety and mission depend on. Our mission is to never stop advancing that lifeline. $7B Source: IHS Ma
Slide 5: Our Scale Around the World
OUR SCALE AROUND THE WORLD 100K CUSTOMERS IN MORE THAN 100 COUNTRIES AROUND THE WORLD 68% 32% $7.4B NORTH AMERICA INTERNATIONAL ANNUAL REVENUE 2020 5
Slide 6: Who We Serve
WHO WE SERVE WE PROVIDE THE LIFELINE THAT KEEPS YOU SAFE AND EFFECTIVE HELPING GOVERNMENTS CREATE SAFER CITIES AND ENTERPRISES BUILD STRONGER BUSINESSES MINING, OIL FIRE UTILITIES POLICE & GAS NATIONAL EMERGENCY EDUCATION MANUFACTURING SECURITY MEDICAL PUBLIC HOSPITALITY TRANSPORTATION CRITICAL SERV
Slide 7: Segments
SEGMENTS PRODUCTS AND SYSTEM INTEGRATION SOFTWARE AND SERVICES LMR Products and Integration LMR Services Video Solutions Command Center Software Video Analytics $4.6B of 2020 Revenue $2.8B of 2020 Revenue (primarily recurring) 7
Slide 8: Products & System Integration
PRODUCTS & SYSTEM INTEGRATION LMR Mission-Critical Communications | LMR Products and Integration Video Security & Analytics | Devices and Video Solutions $5.1 $5.3 $4.6 LMR Products & Integration Video Security & Analytics 8
Slide 9: LMR Mission-Critical Communications
LMR MISSION-CRITICAL COMMUNICATIONS MISSION CRITICAL VOICE…LEADER IN PUBLIC SAFETY COMMUNICATIONS MISSION CRITICAL VOICE PUBLIC SAFETY BROADBAND PROFESSIONAL ASTRO DIMETRA COMMERCIAL PUBLIC SAFETY LTE • Based on APCO P25 standard • Based on TETRA standard • Collection of standards • Broadband for ri
Slide 10: LMR Mission-Critical Communications
LMR MISSION-CRITICAL COMMUNICATIONS HELPING PEOPLE BE THEIR BEST IN THE MOMENTS THAT MATTER MISSION-CRITICAL MEANS BUILT TO STANDARD POWER RESILIENCE PURPOSE-BUILT DEVICES ● Fewer sites are easier to ● Network design keeps ● Built to withstand harsh manage, especially in a teams connected, even if c
Slide 11: LMR Mission-Critical Communications: APX NEXT
LMR MISSION-CRITICAL COMMUNICATIONS APX NEXT...PUBLIC SAFETY’S FIRST SMART RADIO SMARTLOCATE ViQi SMARTPROGRAMMING SMARTCONNECT 11
Slide 12: Video Security & Analytics
VIDEO SECURITY & ANALYTICS BRINGING ATTENTION TO WHAT MATTERS MOST VIDEO SECURITY EQUIPMENT FIXED VIDEO & MOBILE VIDEO PHYSICAL SECURITY SYSTEMS CAMERAS & SENSORS BODY-WORN CAMERAS INFRASTRUCTURE IN-VEHICLE CAMERAS 12
Slide 13: Video Security & Analytics: Use Cases
VIDEO SECURITY & ANALYTICS BRINGING ATTENTION TO WHAT MATTERS MOST VIDEO ANALYTICS | HIGH PRIORITY USE CASES ACCESS ANOMALY SELF-LEARNING ANALYTICS CONTROL DETECTION Flag after-hours Protect ingress & egress Alert to potential safety threats or prohibited loitering points at a hospital at an airport
Slide 14: Software & Services
SOFTWARE & SERVICES LMR Mission-Critical Communications | LMR Managed and Support Services Command Center Software | 911 Software Suite Video Security & Analytics | Video Management Software and AI enabled Analytics $2.8 $2.6 $2.2 LMR Services Command Center Software Video Security & Analytics 14
Slide 15: CommandCentral
MOTOROLA SOLUTIONS SOFTWARE SUITE COMMANDCENTRAL An end-to-end software suite built for public safety. Incident Awareness Incident Management Post-Incident Resolution VOICE & REAL-TIME RECORDS COMMUNITY EMERGENCY CALL COMPUTER INTELLIGENCE FIELD RESPONSE & EVIDENCE ANALYSIS & JAIL & INMATE ENGAGEMEN
Slide 16: Command Center Software: Current State
CURRENT STATE COMMAND CENTER SOFTWARE SAVE SECONDS. SAVE LIVES. 65% of 911 call centers don’t have the capability to receive a text 30% of officers’ time is spent on admin duties, equating to 1,000 officers in the field 10K lives could be saved each year by reducing 911 response times by just one minute
Slide 17: Command Center Software: Our Solution
OUR SOLUTION COMMAND CENTER SOFTWARE
Slide 18: Video Security & Analytics
VIDEO SECURITY & ANALYTICS VIDEO INTELLIGENCE APPEARANCE SEARCH Deep learning AI locates specific FOCUS OF ATTENTION persons or vehicles of interest, directed through simple physical descriptions. UNUSUAL MOTION DETECTION AI learns typical activity in a scene, detects and flags unusual motion without
Slide 19: LMR Services: Managed and Support
LMR SERVICES MANAGED AND SUPPORT EMERGENCY EMERGENCY TECHNICAL SYSTEM SYSTEM FIELD AWARENESS OPERATIONS SERVICE DESK MONITORING ENGINEERING SERVICES KEEPING TEAMS CONNECTED DURING A CRISIS IS COMPLEX HURRICANE IRMA, FLORIDA. SEPTEMBER, 2017 185 mph 7 trillion 50% cell sites $50 billion 6.5 million 9
Slide 20: LMR Services: Delivered Through Centralized Operations
LMR SERVICES DELIVERED THROUGH CENTRALIZED OPERATIONS SERVICE DESK & MONITORING & CYBERSECURITY TECHNICAL SUPPORT MANAGEMENT SERVICES SERVICES 20
Slide 21: LMR Services: Global Monitoring & Management
LMR SERVICES GLOBAL MONITORING & MANAGEMENT 4M USERS UNDER OUR SCHAUMBURG, IL UNITED KINGDOM NORWAY DENMARK AUSTRIA MANAGED SERVICE 20M EVENTS MONITORED EACH DAY 13K SYSTEMS INSTALLED 1M CUSTOMERS ACROSS 100 COUNTRIES 90+ PALMETTO, SC SANTIAGO, CL PENANG, MY MELBOURNE, AU YEARS OF EXPERIENCE *Count
Slide 22: Financials
FINANCIALS
Slide 23: Revenue and EPS Growth
REVENUE AND EPS GROWTH REVENUE ($B) NON-GAAP EPS ($) 23
Slide 24: Backlog
BACKLOG ($B) $11.4 $11.3 $10.6 BACKLOG GROWTH DRIVERS •Software and Services multi-year agreements •LMR system upgrades •North America SOFTWARE & SERVICES PRODUCTS & SI 24
Slide 25: Strong Cash Generation
STRONG CASH GENERATION ADJUSTED OPERATING CASH FLOW ($B) ADJUSTED FREE CASH FLOW ($B) 2 1 1 Operating Cash Flow for 2018 is adjusted to exclude the impact of $500M contribution to the pension plan. 2 Adjusted Free Cash Flow, also a non-GAAP financial measure, is defined as Operating Cash Flow less Cap
Slide 26: Capital Allocation
CAPITAL ALLOCATION BASED ON OPERATING CASH FLOW CAPEX 20% Asset light model SHARE REPURCHASES OR ACQUISITIONS 50% ONGOING $13.4B of share repurchases, retiring 51% of ANNUAL DIVIDEND share float at average cost of $61.47 30% since 2011 Double digit annual increases since 2011 ~$4.2B of acquisitions s
Slide 27: Strong Balance Sheet
STRONG BALANCE SHEET ● Investment grade ● Cash & equivalents $1.3B ● $2.2B committed undrawn capacity remaining on revolver ● High-quality receivables of $1.4B ● Balanced debt maturity *As of December 31, 2020 27
Slide 28: MSI Patent Portfolio Evolution
MSI PATENT PORTFOLIO EVOLUTION PATENT PORTFOLIO BY BUSINESS ~6,100 2015 2020 Total Patents Issued ~1,300 Total Patents Pending *Patent portfolio numbers are estimates 28
Slide 29: We Are Committed to Corporate Responsibility
WE ARE COMMITTED TO CORPORATE RESPONSIBILITY ESG ISS Quality Score - 1 MSCI ESG Rating - A -- PHILANTHROPY -- ENVIRONMENT No. 3 MOST No. 9, 100 MOST 2019: $12M+ supporting 2 million 2016 to 2019: ADMIRED COMPANY SUSTAINABLE COMPANIES students, teachers, first Waste production down 29% responders and
Slide 30: Supplemental Non-GAAP Measures
SUPPLEMENTAL NON-GAAP MEASURES P&L Motorola Solutions, Inc. and Subsidiaries Non-GAAP Trend (In millions, except per share amounts) 30
Slide 31: Supplemental Non-GAAP Measures: Cash Flow
SUPPLEMENTAL NON-GAAP MEASURES CASH FLOW 31
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