Slide 1: Zebra Technologies Second Quarter 2022 Results
Zebra Technologies Second Quarter 2022 Results August 2, 2022 ZEBRA TECHNOLOGIES
Slide 2: Safe Harbor Statement
Insert Section Title Here 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 fro
Slide 3: Agenda
Agenda 01 Q2 Highlights Anders Gustafsson, CEO 02 Q2 Financials and 2022 Outlook Nathan Winters, CFO 03 Advancing Our Enterprise Asset Intelligence Vision Anders Gustafsson, CEO 04 Q&A Anders Gustafsson, CEO Nathan Winters, CFO Joe Heel, Chief Revenue Officer ZEBRA TECHNOLOGIES
Slide 4: Second Quarter 2022 P&L Highlights
Second Quarter 2022 P&L Highlights (1) • Delivered sales and earnings results that exceeded our outlook in a challenging macro environment • Organic Net Sales +6.9% ‒ Broad-based demand for our solutions that help our customers automate & digitize their operations in the increasingly on-demand globa
Slide 5: Agenda
Agenda 01 Q2 Highlights Anders Gustafsson, CEO 02 Q2 Financials and 2022 Outlook Nathan Winters, CFO 03 Advancing Our Enterprise Asset Intelligence Vision Anders Gustafsson, CEO 04 Q&A Anders Gustafsson, CEO Nathan Winters, CFO Joe Heel, Chief Revenue Officer ZEBRA TECHNOLOGIES
Slide 6: Second Quarter P&L Summary
Second Quarter P&L Summary(1) SEGMENT ORGANIC SALES GROWTH(2,3) In millions, except per share data 2Q22 2Q21 Change • EVM Segment +5.6% • AIT Segment +9.7% Adjusted Net Sales $1,468 $1,380 +6.4% REGIONAL ORGANIC SALES GROWTH(2,3) • North America (2)% Organic Net Sales Growth(2,3) +6.9% • EMEA +17% A
Slide 7: Cash Flow & Balance Sheet Highlights
Cash Flow & Balance Sheet Highlights Cash Flow: 1H22 Strong Liquidity Position: 2Q22 • $123M free cash flow, $391M lower YoY • $98M cash & cash equivalents ‒ Higher use of working capital (timing of sales) ‒ Higher incentive compensation payment due to • $2,171M total debt on balance sheet exception
Slide 8: Global Premium Supply Chain Costs Have Sequentially Improved From Peak
Global Premium Supply Chain Costs Have Sequentially Improved From Peak Abating as Component Supply and Freight Capacity Improves 68 Estimate In Millions USD 63 ~$200M FY22 56 Impact, Net of Price 44 45 Increase 21 -4 -1 2 -1 -3 -4 -4 ZEBRA TECHNOLOGIES 8 Note: Premium supply chain costs calculation
Slide 9: Outlook & Assumptions
Outlook & Assumptions 3Q22 FY22 • Adjusted net sales growth ~ 4-6% YoY • Adjusted net sales growth ~ 2-4% YoY ‒ approximately 150 basis point additive impact from recently acquired ‒ approximately 2 point additive impact from businesses recently acquired businesses ‒ approximately 225 basis point ne
Slide 10: Agenda
Agenda 01 Q2 Highlights Anders Gustafsson, CEO 02 Q2 Financials and 2022 Outlook Nathan Winters, CFO 03 Advancing Our Enterprise Asset Intelligence Vision Anders Gustafsson, CEO 04 Q&A Anders Gustafsson, CEO Nathan Winters, CFO Joe Heel, Chief Revenue Officer ZEBRA TECHNOLOGIES
Slide 11: Zebra Digitizes & Automates the Front Line of Business
Zebra Digitizes & Automates the Front Line of Business Transforming Workflows: Purpose-Built Hardware + Software + Cloud Analytics Real-Time Actionable Insights ZEBRA TECHNOLOGIES 11
Slide 12: Zebra Optimizes Workflows for the On-Demand Economy
Zebra Optimizes Workflows for the On-Demand Economy Trusted Strategic Partner to Industry Leaders Retail & Transportation Other Markets Manufacturing Healthcare Includes Government, Ecommerce & Logistics Education, Hospitality This is a sample text. Insert your desired text here. This is a sample te
Slide 13: Agenda
Agenda 01 Q2 Highlights Anders Gustafsson, CEO 02 Q2 Financials and 2022 Outlook Nathan Winters, CFO 03 Advancing Our Enterprise Asset Intelligence Vision Anders Gustafsson, CEO 04 Q&A Anders Gustafsson, CEO Nathan Winters, CFO Joe Heel, Chief Revenue Officer ZEBRA TECHNOLOGIES
Slide 14: Q&A
Q&A ZEBRA TECHNOLOGIES
Slide 15: Appendix
Appendix ZEBRA TECHNOLOGIES 15
Slide 16: Use of Non-GAAP Financial Information
Use of Non-GAAP Financial Information This earnings release 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
Slide 17: GAAP to Non-GAAP Organic Net Sales Growth Reconciliation
GAAP to Non-GAAP Organic Net Sales Growth Reconciliation (Unaudited) ZEBRA TECHNOLOGIES 17
Slide 18: GAAP to Non-GAAP Gross Margin Reconciliation
GAAP to Non-GAAP Gross Margin Reconciliation ZEBRA TECHNOLOGIES 18
Slide 19: GAAP to Non-GAAP Net Income Reconciliation
(In millions, except GAAP to Non-GAAP Net Income Reconciliation share data) (Unaudited) ZEBRA TECHNOLOGIES 19
Slide 20: GAAP to Non-GAAP EBITDA Reconciliation
(In millions) GAAP to Non-GAAP EBITDA Reconciliation (Unaudited) ZEBRA TECHNOLOGIES 20
Slide 21: GAAP to Non-GAAP Free Cash Flow Reconciliation
(In millions) GAAP to Non-GAAP Free Cash Flow Reconciliation (Unaudited) ZEBRA TECHNOLOGIES 21
Slide 22: About Zebra
About Zebra Zebra (NASDAQ: ZBRA) empowers the front line of business in retail, manufacturing, transportation and logistics, healthcare, and other industries to achieve a performance edge. We deliver industry-tailored, end-to-end solutions that intelligently connect people, assets and data to help o