Motorola Solutions, Inc. · NYSE:MSI
Motorola Solutions — Q4 2021 Earnings Presentation
25 slides from Motorola Solutions's earnings presentation, Feb 9, 2022
Slide 1: Earnings Presentation Q4 and Full-Year 2021 Results
EARNINGS PRESENTATION Q4 AND FULL-YEAR 2021 RESULTS | February 9, 2022
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: Highlights Q4 2021
• Sales of $2.3B, up 2% vs. the prior year HIGHLIGHTS ○ Software and Services up 8% on growth in Land Mobile Radio Q4 2021 (“LMR”) services, video security and command center software ○ Products and Systems Integration down 1% due to supply constraints. Growth in video security and public safety LMR
Slide 4: Highlights FY 2021
• Sales of $8.2B, up 10% vs. the prior year HIGHLIGHTS ○ Products and Systems Integration up 9% on growth in LMR and video FY 2021 security ○ Software and Services up 13% on growth in LMR services, video security and command center software • Video security and access control sales up 32%; up 21% or
Slide 5: Financial Results
FINANCIAL RESULTS Q4 20 Q4 21 CHANGE 2020 2021 CHANGE REVENUE $2,273 $2,320 2% $7,414 $8,171 10% NON-GAAP $667 $670 – $1,835 $2,117 15% OPERATING EARNINGS* NON-GAAP 29.3% 28.9% (40 bps) 24.8% 25.9% 110 bps OPERATING MARGIN* NON-GAAP $2.86 $2.85 – $7.69 $9.15 19% EARNINGS PER SHARE* ($M) excluding pe
Slide 6: Cash Flow
CASH FLOW FY 20 FY 21 ($M) ACT ACT CHANGE OPERATING CASH FLOW $1,613 $1,837 $224 CAPITAL EXPENDITURES ($217) ($243) ($26) FREE CASH FLOW* $1,396 $1,594 $198 * Free Cash Flow is a non-GAAP financial measure and is calculated as Net cash provided by operating activities - Capital Expenditures.
Slide 7: Products & SI Q4 2021
• Revenue down 1% driven by supply constraints. Growth in video PRODUCTS & SI security and public safety LMR was offset by a decline in PCR. Q4 2021 • Non-GAAP Operating margin* down 170 bps driven by higher Revenue operating expenses, inclusive of incentive compensation and acquisitions, as well as
Slide 8: Software & Services Q4 2021
• Revenue up 8%, driven by growth in LMR services, video security SOFTWARE & and command center software SERVICES • Non-GAAP operating margin* up 150 bps driven by higher sales, Q4 2021 higher gross margins and improved operating leverage, inclusive Revenue of higher incentive compensation and acqui
Slide 9: Regional Revenue Q4 2021
REGIONAL ($M) Q4 20 Q4 21 CHANGE REVENUE NORTH AMERICA $1,548 $1,615 4% Q4 2021 INTERNATIONAL $725 $705 (3%) TOTAL $2,273 $2,320 2% ● North America growth driven by video security and LMR ● International decline driven by LMR, partially offset by growth in video security and command center software
Slide 10: Regional Revenue FY 2021
REGIONAL ($M) 2020 2021 CHANGE REVENUE NORTH AMERICA $5,024 $5,561 11% FY 2021 INTERNATIONAL $2,390 $2,610 9% TOTAL $7,414 $8,171 10% ● North America growth driven by LMR, video security, and command center software ● International growth driven by LMR, video security, and command center software
Slide 11: Backlog Trend
BACKLOG Software and Services TREND • Y/Y up $1.3B primarily driven by an extension of the Airwave contract and growth in software and services contracts in North America ($B) • Q/Q up $1.8B primarily driven by an extension of the Airwave contract and growth in services and software $13.6 $11.4 $11.
Slide 12: Outlook
OUTLOOK * Q1 2022 Q1 Details (NON-GAAP) Revenue Growth Approx. 3% • Effective tax rate approx. 17% • Fully diluted share count between Non-GAAP EPS $1.53 - $1.59 173M and 174M shares FULL-YEAR 2022 Full-Year Details Revenue Growth Approx. 7% • Effective tax rate 21% to 22% • Fully diluted share coun
Slide 13: Q&A Participants
Q&A PARTICIPANTS GREG BROWN Chairman and CEO JACK MOLLOY Executive Vice President and COO JASON WINKLER Executive Vice President and CFO MAHESH SAPTHARISHI Executive Vice President and CTO TIM YOCUM Vice President, Investor Relations
Slide 14: 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") included in this presentation, Motorola Solutions, Inc. (the “Company”) also has included non-GAAP measurements of results, including free cash flow, non-GAAP
Slide 15: Supplemental Disaggregation of Revenue
SUPPLEMENTAL DISAGGREGATION OF REVENUE
Slide 16: Supplemental Non-GAAP Measures: Non-GAAP Trend
SUPPLEMENTAL NON-GAAP MEASURES Motorola Solutions, Inc. and Subsidiaries Non-GAAP Trend (In millions, except for per share amounts)
Slide 17: Reconciliation of Operating Cash Flow to Free Cash Flow
SUPPLEMENTAL NON-GAAP MEASURES Reconciliation of Net cash provided by operating activities to Free cash flow
Slide 18: Supplemental Non-GAAP Measures
SUPPLEMENTAL NON-GAAP MEASURES
Slide 19: Supplemental Non-GAAP Measures
SUPPLEMENTAL NON-GAAP MEASURES
Slide 20: Supplemental Non-GAAP Measures
SUPPLEMENTAL NON-GAAP MEASURES
Slide 21: Supplemental Non-GAAP Measures
SUPPLEMENTAL NON-GAAP MEASURES
Slide 22: Supplemental Non-GAAP Measures
SUPPLEMENTAL NON-GAAP MEASURES
Slide 23: Supplemental Non-GAAP Measures
SUPPLEMENTAL NON-GAAP MEASURES
Slide 24: EBITDA, Net Debt and Leverage Reconciliation
Reconciliation of GAAP Net Earnings to EBITDA and Adjusted EBITDA SUPPLEMENTAL NON-GAAP MEASURES Net Debt Calculation Net Debt to Adjusted EBITDA Calculation
Slide 25: Thank You
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