Zebra Technologies Corporation · NASDAQ:ZBRA
Zebra Technologies — Investor Presentation (March 2012)
24 slides from Zebra Technologies's investor presentation, March 2012
Slide 1: Investor Presentation
INVESTOR PRESENTATION ZEBRA TECHNOLOGIES CORPORATION MARCH 2012
Slide 2: Identify, track and manage assets, transactions and people
Zebra improves customers’ business performance through products and solutions that identify, track and manage assets transactions and people. Helping our customers gain visibility into their operations by giving their assets a digital voice 2 Zebra Confidential 2
Slide 3: What We Do
WHAT WE DO • Global leader in the design and sale of industrial printing for labels, receipts and tickets • Radio frequency identification • Location solutions • Supplies, accessories, aftermarket parts and services 3 Zebra Confidential 3
Slide 4: Value to the Customer
VALUE TO THE CUSTOMER Increase throughput and velocity Measurable, Sustainable ROI Operate more Increase revenues efficiently Reduce operating expenses Avoid capital expenditures Increase safety, security and compliance 4 Zebra Confidential 4
Slide 5: Case Study: Avis
CASE STUDY: AVIS • Attendants use Zebra ruggedized wireless mobile printers to speed rental returns • Reduces paperwork • Customers get to the terminal faster • Improves employee productivity 5 Zebra Confidential
Slide 6: Attractive Global Trends
ATTRACTIVE GLOBAL TRENDS Key secular trends continue to support growth • Complex supply chains • Focus on productivity enhancing investments • Industrialization of emerging markets Complementary growth opportunities • Ubiquitous wireless internet connectivity • Proliferation of connected devices • A
Slide 7: Foundational Strengths
FOUNDATIONAL STRENGTHS • Leading global brand • Broadest product line • Global reach • Large, diversified customer base • Financial strength 7 Zebra Confidential
Slide 8: Leading Global Brand
LEADING GLOBAL BRAND High performance Midrange Label design Performance ZXP Series 8 Networking printers printers software class card printers Retransfer card printer products Mobile printers Desktop printers Printer management ZSP Series 3 Card printer supplies RFID software card printers printer/e
Slide 9: Product and Geographic Diversity
PRODUCT AND GEOGRAPHIC DIVERSITY 19% 5% 1% 41% 35% 75% 15% 9% Hardware Supplies EMEA Latin America Service and Software Other Asia Pacific North America 9 Zebra Confidential
Slide 10: Strongest Global Channels
STRONGEST GLOBAL CHANNELS • Primarily an indirect go-to-market distribution model – Value-added resellers, distributors, independent software vendors, system integrators • Approximately 20% direct to retailers and small package delivery Zebra Alliance Distributor OEMs Channel System VAR VAR Integrat
Slide 11: Financial Benefits of Global Leadership
FINANCIAL BENEFITS OF GLOBAL LEADERSHIP • High profitability – Gross margin approximately 50% – Operating margin approaching 20% • Strong free cash flow generation – >$100 million annually • Low capital investment requirements • $326 million ($6.27 per share) in cash and investments (at 4Q11) • $100
Slide 12: Investing for Growth and Profitability
INVESTING FOR GROWTH AND PROFITABILITY
Slide 13: Zebra's Strategic Pillars
ZEBRA’S STRATEGIC PILLARS Further Penetrate Existing Markets Maximize Expand Operational Into New Effectiveness Markets Delight Customers Inspire Our Intensify People and Innovation Culture 13 Zebra Confidential
Slide 14: Zebra's Strategic Pillars
ZEBRA’S STRATEGIC PILLARS Further Penetrate Partnerships Existing for more complex Markets applications Maximize Expand Operational Into New Effectiveness Markets Vertical market and application Delight expansion Customers Deeper, more Inspire Our strategic Intensify People and customer Innovation C
Slide 15: Increase Our Share in Strategic Accounts
INCREASE OUR SHARE IN STRATEGIC ACCOUNTS Circa 2000: Circa 2011: 2 Applications 40 Applications $X in Revenue $4X in Revenue 15 Zebra Confidential
Slide 16: Zebra's Strategic Pillars
ZEBRA’S STRATEGIC PILLARS Further Penetrate Existing Markets Maximize Expand Operational Into New Effectiveness Markets Delight Customers Region Inspire Our specific Intensify People and products Innovation Culture 16 Zebra Confidential
Slide 17: Expand Into New Markets
EXPAND INTO NEW MARKETS Further Penetrate Existing Markets Expand Into New Markets 17 Zebra Confidential
Slide 18: Zebra's Strategic Pillars
ZEBRA’S STRATEGIC PILLARS Further Penetrate Out-invest competition Existing on R&D 4 to 1 Markets Maximize Expand Operational Into New Increased cadence of new Effectiveness Markets product introductions Delight Customers Better ways to meet customer needs Inspire Our Intensify People and Innovation
Slide 19: Supporting Technology Trends
SUPPORTING TECHNOLOGY TRENDS Trends 1 Media tablets and beyond 2 Mobile-centric applications and interfaces 3 Contextual and social user experience 4 Internet of Things 5 App stores and marketplaces 6 Next-generation analytics 7 Big data 8 In-memory computing 9 Extreme low-energy servers 10 Cloud co
Slide 20: Financial Highlights
FINANCIAL HIGHLIGHTS
Slide 21: Strong Track Record of Success
STRONG TRACK RECORD OF SUCCESS Net Sales and Pro Forma EPS Pro Forma Operating Margin $3.00 20.0% 1000 $2.50 800 15.0% $2.00 600 $1.50 10.0% 400 $1.00 5.0% 200 $0.50 0 $0.00 0.0% 06 07 08 09 10 11 06 07 08 09 10 11 Net Sales PF EPS 21 Zebra Confidential
Slide 22: 2011 Highlights
2011 HIGHLIGHTS • Sales growth in all geographic regions • Record sales in international territories • Impact of investments in geographic expansion • Success of take-share strategies • Deeper penetration of targeted verticals • Record sales in several product categories 22 Zebra Confidential
Slide 23: Capital Deployment
CAPITAL DEPLOYMENT • Used $160M in 2011 to buy back 4.4M shares • Reduced shares by 33% over five years • Invest in highest risk-adjusted returning activities 7.0 180.0 160.0 6.0 140.0 5.0 120.0 Shares (mils) 100.0 4.0 $ (mils) 80.0 3.0 60.0 40.0 2.0 20.0 1.0 0.0 2005 2006 2007 2008 2009 2010 2011 2
Slide 24: Positioned for Growth and Higher Returns
POSITIONED FOR GROWTH AND HIGHER RETURNS • Opportunity for further operating leverage – Maintain high gross margins – Manage growth in operating expenses • Growing impact of investments • Further investments in high-return activities – Geographic expansion – New products – Channel expansion • Focus
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