Zebra Technologies Corporation · NASDAQ:ZBRA
Zebra Technologies — Investor Day (May 2024)
53 slides from Zebra Technologies's investor day presentation, May 14, 2024
Slide 1: Celebrating 55 Years of Innovation
Celebrating 55 Years of Innovation 2024
Slide 2: Introduction
Introduction MIKE STEELE f\ VICE PRESIDENT, INVESTOR RELATIONS
Slide 3: 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 4: Agenda
Welcome 1:00 – 1:05 Mike Steele, Vice President, Investor Relations A Commitment to Innovation 1:05 – 1:15 Bill Burns, Chief Executive Officer Differentiated Portfolio of Solutions 1:15 – 1:30 Joe White, Chief Product & Solutions Officer Customer Value Proposition with Zebra Services 1:30 – 1:35 Jen
Slide 5: A Commitment to Innovation
A Commitment to Innovation BILL BURNS CHIEF EXECUTIVE OFFICER
Slide 6: Advancing Our Vision
Innovation Connected Ecosystem Rich history and track record Strategic, trusted relationships with of innovation customers and partners Advancing Our Vision Strong Secular Tailwinds Attractive $30B served market across Culture & Sustainability Strong inclusive culture and multiple industries commitm
Slide 7: Zebra by the Numbers
Zebra by the Numbers Years of Patents Issued Employees Partner Channel Innovation & Pending Worldwide Network Enterprise Industrial Data RFID Mobile Computing* Printing* Capture* Readers* *Source: VDC Research and Zebra Analysis 7
Slide 8: Zebra Recognized by Industry Analysts
Zebra Recognized by Industry Analysts A Leader in IDC MarketScape: A Leader in 2024 Gartner® Magic A Leader in 2024 Nucleus Research’s Worldwide Rugged Mobile Devices Quadrant™ for Indoor Location Workforce Management Value Matrix for 2023 Vendor Assessment* Services for the fifth year in a row** th
Slide 9: Zebra Optimizes Workflows
Zebra Optimizes Workflows Retail & Transportation Manufacturing Healthcare Other Markets E-Commerce & Logistics Elevated Customer Enhance Worker Production Throughput Safer Patient Outcomes Critical Communications Experience Productivity Operational Excellence Unified Staff Collaboration Outage and
Slide 10: Megatrends Support Zebra's Long-Term Growth Trajectory
Megatrends Support Zebra’s Long-Term Growth Trajectory Digitization & Mobile & On Demand Artificial Automation IoT Analytics Cloud Computing Economy Intelligence 2023 – 2026 CAGR 12% 10% 10% 8% 18% IoT Revenues Warehouse Footprint Ecommerce Ecommerce Sales AI Software Logistics Spend Sources: Gartne
Slide 11: Well-Positioned to Benefit from Trends to Digitize and Automate Workflows
Well-Positioned to Benefit from Trends to Digitize and Automate Workflows 11
Slide 12: Fostering a Strong, Inclusive Culture and Commitment to Sustainability
Fostering a Strong, Inclusive Culture and Commitment to Sustainability Human Capital Management Climate Resource Conservation Be the employer of choice in the Reduce carbon emissions and Focus on sustainable product communities where we work and live pursue clean energy projects and design, eco-pack
Slide 13: Vibrant Core Augmented by Attractive Adjacent and Expansion Market Opportunities
Core Vibrant Core Augmented by Attractive Adjacent Adjacent and Expansion Market Opportunities Expansion 13
Slide 14: Experienced Leadership Team with Us Today
Experienced Leadership Team with Us Today Chief Marketing Officer Chief Technology Officer Chief Strategy Officer Chief Revenue Officer Chief Legal Officer & Senior Vice President, Chief Product & Chief Financial Officer Corporate Secretary Customer Success & Services Solutions Officer 14
Slide 15: Differentiated Portfolio of Solutions
Differentiated Portfolio of Solutions 15
Slide 16: Product & Solutions Portfolio
Relentless Innovation Competitively Differentiated in our established markets expands the portfolio of solutions to advance competitive moat industry leadership Product & Solutions Proven Solutions Uniquely Positioned Portfolio for existing operations that drive a quick ROI for our customers to digi
Slide 17: Relentless Innovation is a Key Differentiator
Relentless Innovation is a Key Differentiator Building world-class products & solutions with market-leading share across the portfolio ~10% of Sales Expanding into near adjacencies Invested in Research and Development Annually & expansion areas to offer customers improved value through platform & po
Slide 18: Product & Solutions Portfolio Overview
Product & Solutions Portfolio Overview Mobile Computing Printing & Supplies Barcode Scanning Handhelds Tablets Wearables Mobile Desktop Industrial Handhelds Handsfree Vehicle Mount Mobility DNA Software Card Supplies Print DNA Fixed Data Capture DNA Robotics Automation RFID Machine Vision Retail Sof
Slide 19: ~30 Supply Chain Touch Points with Zebra
~30 Supply Chain Touch Points with Zebra WAREHOUSE LAST MILE Receiving Material Handling Material Movement Truck Quality Inspection Shipping / Receiving Delivery Digital Product Passport Shipping / Receiving Parts Back of Store Front of Store HOME FACTORY STORE 19
Slide 20: Our World-Class Hardware is Differentiated by Software with Zebra DNA
Our World-Class Hardware is Differentiated by Software with Zebra DNA Purpose Built Enterprise Quality Digital Platforms 20
Slide 21: Value-Added Capabilities through Software are Transforming Customer Workflows
Value-Added Capabilities through Software are Transforming Customer Workflows Optimizing Worker Productivity Improving Customer Operations Digitizing & Automating Workflows Zebra Workcloud Enterprise Collaboration Suite Zebra + Adaptive Vision + Matrox 21
Slide 22: Integrating Sustainability into Our Products and Solutions
Integrating Sustainability into Our Products and Solutions Low-Carbon Products Product Life Cycle Packaging Zebra’s science-based targets lower Longer life and circular economy Multipack and eco-packaging help carbon emissions end-of-life reuse maximizes impact customers meet their zero-landfill tar
Slide 23: Customer Value Proposition with Zebra Services
Customer Value Proposition with Zebra Services 23
Slide 24: Maximizing Technology Uptime with Zebra Services
Maximizing Technology Uptime with Zebra Services Repair | Software Support | LifeGuard | VisibilityIQ OneCare | Managed Spares Circular Economy Program Buy Back | Refurbish | Recycle Professional Functional Consulting | Design | Configuration | & Managed VisibilityIQ Foresight | Optimized Outcomes 5
Slide 25: Zebra Services Meet Customers' Design, Implementation and Ongoing Management Needs
Zebra Services Meet Customers' Design, Implementation and Ongoing Management Needs VisibilityIQ Foresight Labor Model & Task Management Design Demand Forecast & Loss Prevention Solution Design & Deployment Application Development Device Availability Insights Customized Accessories 25
Slide 26: Solving Our Customers' Biggest Challenges
Solving Our Customers’ Biggest Challenges 26
Slide 27: Solving Customers' Biggest Business Challenges
We serve 80%+ of the Fortune 500 helping them navigate through technology transitions and solving their biggest business challenges Solving Customers’ Biggest Business We are a “partner of choice” and scale new markets faster through our extensive complex go-to- Challenges market strategy and our lo
Slide 28: We Serve Brand Leaders Around the World
We Serve Brand Leaders Around the World 28
Slide 29: We Solve Customers' Biggest Business Challenges through Our Interconnected Ecosystem
We Solve Customers’ Biggest Business Challenges through Our Interconnected Ecosystem Zebra Team Partners Customer Success Customers Influenced Outcomes Solutions Specialists C-Suite Integrated Solutions Sales Engineers IT Configured Systems Vertical Specialists Operations Convenience Core Sellers Li
Slide 30: Specialized Partner Program
Solutions RFID SaaS Specialized Mobile Robotics Machine Vision Partner Technologies Program Supplies Printer Repair Card Printers Print Engines Tracks Location & Tracking Labeling Solutions Markets Healthcare Small & Medium Public Sector Business 30
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Slide 32: We are Helping Customers Across Verticals and Industries
We are Helping Customers Across Verticals and Industries Retail & Transportation Manufacturing Healthcare Government E-Commerce & Logistics & Public Safety 32
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Slide 34: Enabling Digital Innovation
Enabling Digital Innovation 34
Slide 35: Evolving Industry Dynamics…
Cost and Shortage of $8.5T Evolving Industry Diminished Dynamics… $1.8T Changing Customer 3,240 35
Slide 36: Rapid Technology Advancement…
Rapid Technology Advancement… Quantum Wearables Computing Cloud 3D Mobile Generative Printing IoT AI Robotics Autonomous Machine Machines Additive Learning Manufacturing Data Analytics 36
Slide 37: Rising expectations from customers have fueled an…
Rising expectations from customers have fueled an …and businesses are driving digital innovation as Robert C. Wolcott, Ph.D. Adjunct Professor of Innovation & Entrepreneurship, a result Chicago Booth School of Business, University of Chicago Kellogg School of Management, Northwestern 37
Slide 38: Digital innovation at the core of the enterprise…
Digital innovation …but it lives at the at the core of the enterprise… enterprise edge, where work gets done. Inventory Management System EDGE Workforce Warehouse Management CORE Management System System CORE Transportation Management System 38
Slide 39: Entering an Automation Imperative Powered by AI
Entering an Automation Imperative Powered by AI Delivered through Our Interconnected Capabilities Asset Connected Intelligent Visibility Frontline Automation Worker 39
Slide 40: Enabling Flawless Fulfillment
Enabling Flawless Fulfillment On average, only 65% of inventory reported through inventory management software is correct. 40
Slide 41: What if These Walls Could Talk?
What if These Walls Could Talk? Smart Sensor-Enabled Store 41
Slide 42: Reducing Food Waste
Reducing One-third of food produced Food Waste for human consumption is lost or wasted globally. This amounts to about 1.3 billion tons per year. World Food Programme 42
Slide 43: Automated Condition Monitoring
Automated Real-time Condition Environmental Sensing Monitoring 22° TEMPERATURE TOO HIGH! 43
Slide 44: Transforming the Frontline Experience
Transforming the Frontline Retail worker turnover stands at 95% while Experience average cost per hour has risen 14% YoY. 44
Slide 45: AI Assistant for the Frontline
AI Assistant for the Frontline Reduce cognitive Allow for better Reduce time to load just-in-time competency decisions Imagine if… …employees had real-time support in every moment of need, with an AI-enabled assistant to better manage their environment, customers, and themselves. 45
Slide 46: Investment in Innovation
Investment in Innovation NATHAN WINTERS CHIEF FINANCIAL OFFICER
Slide 47: Executing Our Financial Framework
Executing Our Financial Framework Drive profitable growth Invest to accelerate organic growth R&D at ~10% of sales Disciplined financial management Net leverage target range of 1.5 – 2.5x and operating efficiency Expected to be <2x by EOY '24 Systematic share repurchase Advance Enterprise Asset Inte
Slide 48: We Continue to Invest in Innovation
We Continue to Invest in R&D Venture Innovation ~10% of sales 2/3 current horizon Engage in emerging technologies & 1/3 next horizon Organic investments are a top priority M&A Enhance our vision & strategy 48
Slide 49: Core Augmented by Attractive Adjacent and Expansion Opportunities
Advanced Software, Smart Expansion Sensors and Cameras Core Augmented by Attractive Adjacent Smart Supplies Mobile Robots Adjacencies & Environmental Sensors and Expansion EMC Use Case Expansion Opportunities RFID & RTLS Rugged Tablets Data Capture Retail Execution & Core Demand Planning Thermal Pri
Slide 50: Our Financial Framework Drives Sustainable Value Creation
Our Financial Organic EBITDA Margin Framework Drives Sales Growth* Rate Expansion* Sustainable Value Creation FCF Conversion (FCF / Adj. NI)* EPS Growth* *Targets are annualized and over a cycle 50
Slide 51: We're Well-Positioned to Extend Our Lead in the Industry
We’re Well-Positioned to Extend Our Lead in the Industry, Offering a Compelling Investment Opportunity Secular Trends to Market Leader in Enhancing Profitable Global Reach Digitize & Automate Core Categories Growth Profile via & Scale through Operations with Track Record Expansion Markets Extensive
Slide 52: Q&A Panel
Q&A Panel Chief Executive Officer Chief Technology Officer Chief Revenue Officer Facilitated by: Vice President, Senior Vice President, Chief Product & Chief Financial Officer Investor Relations Customer Success & Services Solutions Officer 52
Slide 53: Celebrating 55 Years of Innovation
Celebrating 55 Years of Innovation 2024