Slide 1: Zebra Technologies Third Quarter 2023 Results
Click to enter Presentation Title Subhead Copy here Zebra Technologies Third Quarter 2023 Results October 31, Presenter 2023 Name Date
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 Q3 Summary and Actions 01 Bill Burns, CEO Q3 Financials and Q4 Outlook 02 Nathan Winters, CFO Advancing Our Enterprise Asset 03 Intelligence Vision Bill Burns, CEO Q&A Bill Burns, CEO 04 Nathan Winters, CFO Joe Heel, Chief Revenue Officer ZEBRA TECHNOLOGIES
Slide 4: Third Quarter 2023 P&L Summary
Q3 Summary Third Quarter 2023 P&L Summary (1) • Challenging sales and earnings results as expected, at high end of outlook • Net Sales $956M, (29.6)% organic o Weaker industry demand to customers of all sizes o Broad-based declines across all regions and major product categories o Distributor destoc
Slide 5: Demand Trends Across Our End Markets
Q3 Update Demand Trends Across Our End Markets Market Longer-Term Opportunity Served • Omnichannel / ecommerce growth with shorter lead time expectations Sales Mix Retail & • Automation necessary to address labor challenges • Reimagining checkout / point-of-sale and solutions to address shrink by Ve
Slide 6: Executing on Our Plans to Reduce Costs and Drive Growth
Actions Executing on Our Plans to Reduce Costs and Drive Growth • $100M net annualized opex savings - previously $85M o Restructuring plans ~$105M total charges; largely complete o Broad-based impact across the organization • Accelerating growth in under-penetrated markets (e.g., Japan, government,
Slide 7: Agenda
Agenda Q3 Summary and Actions 01 Bill Burns, CEO Q3 Financials and Q4 Outlook 02 Nathan Winters, CFO Advancing Our Enterprise Asset 03 Intelligence Vision Bill Burns, CEO Q&A Bill Burns, CEO 04 Nathan Winters, CFO Joe Heel, Chief Revenue Officer ZEBRA TECHNOLOGIES
Slide 8: Third Quarter P&L Summary
Q3 Financials Third Quarter P&L Summary(1) In millions, except per share data 3Q23 3Q22 Change SEGMENT ORGANIC SALES DECLINE(2) • EVM Segment (31.4)% Net Sales $956 $1,378 (30.6)% • AIT Segment (25.8)% Organic Net Sales Decline(2) (29.6)% REGIONAL ORGANIC SALES DECLINE(2) $428 $631 (32.2)% • North A
Slide 9: Cash Flow & Balance Sheet
Q3 Financials Cash Flow & Balance Sheet Cash Flow: YTD 3Q23 Strong Liquidity Position: 3Q23 • Free cash flow of ($193M), $363M lower YoY • $61M cash & cash equivalents o Lower earnings o Higher use of working capital • $2.3B total debt on balance sheet ▪ Higher cash taxes • Net-debt-to-adjusted-EBIT
Slide 10: Outlook & Assumptions
2023 Outlook Outlook & Assumptions 4Q23 FY23 • Net sales decline between 32% and 36% YoY • Net sales decline between 20.5% and 21.5% YoY (based on Q4 outlook) o Negligible impact from foreign currency o > 1 percentage point negative impact from foreign currency changes changes o ~ 50 basis points ad
Slide 11: Agenda
Agenda Q3 Summary and Actions 01 Bill Burns, CEO Q3 Financials and Q4 Outlook 02 Nathan Winters, CFO Advancing Our Enterprise Asset 03 Intelligence Vision Bill Burns, CEO Q&A Bill Burns, CEO 04 Nathan Winters, CFO Joe Heel, Chief Revenue Officer ZEBRA TECHNOLOGIES
Slide 12: Zebra Digitizes & Automates the Front Line of Business
Advancing EAI Zebra Digitizes & Automates the Front Line of Business Transforming Workflows: Purpose-Built Hardware + Software + Cloud Analytics Real-Time Actionable Insights Our solutions remain essential to our customers’ operations, and we are well positioned to benefit from secular trends to dig
Slide 13: Zebra Optimizes Workflows for the On-Demand Economy
Advancing EAI 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
Slide 14: Agenda
Agenda Q3 Summary and Actions 01 Bill Burns, CEO Q3 Financials and Q4 Outlook 02 Nathan Winters, CFO Advancing Our Enterprise Asset 03 Intelligence Vision Bill Burns, CEO Q&A Bill Burns, CEO 04 Nathan Winters, CFO Joe Heel, Chief Revenue Officer ZEBRA TECHNOLOGIES
Slide 15: Q&A
Q&A ZEBRA TECHNOLOGIES
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,” “adjusted gross margin,” “EBITDA,” “Adjusted EBITDA,” “Adjusted EBITDA margin,” “Adjusted EBITDA % of adjusted net sales,” “non-GAAP net
Slide 18: GAAP to Non-GAAP Organic Net Sales Growth (Decline) Reconciliation
GAAP to Non-GAAP Organic Net Sales Growth (Decline) 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
(In millions, except share data) GAAP to Non-GAAP Net Income Reconciliation (Unaudited) 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 (In millions) (Unaudited) ZEBRA TECHNOLOGIES 22
Slide 23: 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