Slide 1: Fourth-Quarter and Full-Year 2018 Results
Zebra Technologies Fourth-Quarter and Full-Year 2018 Results February 14, 2019 1
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 01 Q4 and Full-Year Highlights Anders Gustafsson, CEO 02 Q4 Financials and 2019 Outlook Olivier Leonetti, CFO 03 Progress on Strategic Priorities Anders Gustafsson, CEO 04 Q&A Anders Gustafsson, CEO │ Olivier Leonetti, CFO │ Joe Heel, SVP Global Sales ZEBRA TECHNOLOGIES 3
Slide 4: Financial Highlights
Financial Highlights 4Q18 +10.8% 21.1% $3.10 $309M NET SALES ADJUSTED NON-GAAP FREE CASH GROWTH EBITDA MARGIN DILUTED EPS FLOW +9.1%(1) Organic +120bps YOY Improvement +33% from 4Q17 FY18 +13.2% 20.7% $11.01 $721M ADJUSTED NET ADJUSTED NON-GAAP FREE CASH SALES GROWTH EBITDA MARGIN DILUTED EPS FLOW +
Slide 5: Agenda
Agenda 01 Q4 and Full-Year Highlights Anders Gustafsson, CEO 02 Q4 Financials and 2019 Outlook Olivier Leonetti, CFO 03 Progress on Strategic Priorities Anders Gustafsson, CEO 04 Q&A Anders Gustafsson, CEO │ Olivier Leonetti, CFO │ Joe Heel, SVP Global Sales ZEBRA TECHNOLOGIES 5 5
Slide 6: Fourth-Quarter P&L Summary
Fourth-Quarter P&L Summary(1) In millions, except per share data 4Q18 4Q17 Growth ORGANIC SEGMENT SALES GROWTH(2,3) $1,137 $1,026 +10.8% EVM Segment +11.6% Net Sales AIT Segment +4.3% Organic Net Sales Growth(2,3) +9.1% REGIONAL ORGANIC SALES GROWTH(2,3) North America +11% Adjusted Gross Profit $542
Slide 7: Balance Sheet and Cash Flow Highlights
Balance Sheet and Cash Flow Highlights Liquidity and Debt Debt Paydown Cash Flow • $44M in cash & cash • $657M in debt payments in • $721M free cash flow in 2018 equivalents as of year-end 2018 – Includes $33M from EMEA 2018 accounts receivable factoring • Achieved net-debt-to- program • $1.6B total
Slide 8: Excellent Progress on Debt Reduction
Excellent Progress on Debt Reduction $1.6 Billion of Debt Principal Paydown since the Enterprise Acquisition $3.25B $3.09B Net-Debt-to-Adjusted EBITDA Target Range: 1.5x–2.5x $2.70B 4.8x Leverage 4.1x $2.25B Leverage 3.2x Leverage $1.60B 1.8x Leverage 2014 2015 2016 2017 2018 NOTE: Total debt before
Slide 9: Outlook
Outlook (1) 1Q19 FY19 ASSUMPTIONS • Net sales growth 6-9% vs. LY; assumes ~ 150-200 basis • Net sales growth of 4-7% vs. 2018; assumes ~ 1 percentage point point additive impact from the acquisition of Xplore additive impact from the acquisition of Xplore Technologies(2), and Technologies(2) and ~ 1
Slide 10: Agenda
Agenda 01 Q4 and Full-Year Highlights Anders Gustafsson, CEO 02 Q4 Financials and 2019 Outlook Olivier Leonetti, CFO 03 Progress on Strategic Priorities Anders Gustafsson, CEO 04 Q&A Anders Gustafsson, CEO │ Olivier Leonetti, CFO │ Joe Heel, SVP Global Sales ZEBRA TECHNOLOGIES 10
Slide 11: Strategic Focus
Strategic Focus Extend Leadership in Core Markets, Outpacing the Competition Drive Growth in Attractive IMAGE AREA Adjacent Markets 7.5” h x 7.4”w Advance Enterprise Asset Intelligence Vision Enhance Financial Strength and Flexibility ZEBRA TECHNOLOGIES 11
Slide 12: Zebra Enables Enterprise Asset Intelligence
Zebra Enables Enterprise Asset Intelligence SENSE ANALYZE ACT Apply Insight to Status | Condition | Location Enable the Best Next Move Real-Time Analytics Savanna Data Intelligence Platform Our Competitive Differentiation = Hardware + Software + Cloud ZEBRA TECHNOLOGIES
Slide 13: Enabling Enterprise Visibility at the Enterprise Edge
Enabling Enterprise Visibility at the Enterprise Edge Megatrends • IoT • Enterprise Mobility • Cloud Computing • Automation • On-demand economy Option 01 • Empowering knowledge workers Option 04 This is a sample text. This is a sample text. Healthcare Option 02 Option 03 Retail & Ecommerce This is a
Slide 14: Agenda
Agenda 01 Q4 and Full-Year Highlights Anders Gustafsson, CEO 02 Q4 Financials and 2019 Outlook Olivier Leonetti, CFO 03 Progress on Strategic Priorities Anders Gustafsson, CEO 04 Q&A Anders Gustafsson, CEO │ Olivier Leonetti, CFO │ Joe Heel, SVP Global Sales ZEBRA TECHNOLOGIES 14
Slide 15: Q&A
Q&A ZEBRA TECHNOLOGIES 15
Slide 16: Appendix
Appendix ZEBRA TECHNOLOGIES 16
Slide 17: Use of Non-GAAP Financial Information
Use of Non-GAAP Financial Information This presentation 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 “adj
Slide 18: GAAP to Non-GAAP Organic Net Sales Growth Reconciliation
GAAP to Non-GAAP Organic Net Sales Growth Reconciliation ZEBRA TECHNOLOGIES 18
Slide 19: GAAP to Non-GAAP Gross Margin Reconciliation
GAAP to Non-GAAP Gross Margin Reconciliation ZEBRA TECHNOLOGIES 19
Slide 20: GAAP to Non-GAAP Net Income Reconciliation
GAAP to Non-GAAP Net Income Reconciliation ZEBRA TECHNOLOGIES 20
Slide 21: GAAP to Non-GAAP EBITDA Reconciliation
GAAP to Non-GAAP EBITDA Reconciliation ZEBRA TECHNOLOGIES 21
Slide 22: GAAP to Non-GAAP Free Cash Flow Reconciliation
GAAP to Non-GAAP Free Cash Flow Reconciliation ZEBRA TECHNOLOGIES 22