Zebra Technologies Corporation · NASDAQ:ZBRA
Zebra Technologies — Bernstein Strategic Decisions Conference 2019
27 slides from Zebra Technologies's conference presentation, May 31, 2019
Slide 1: Bernstein Strategic Decisions Conference
Bernstein Strategic Decisions Conference May 31, 2019 ZEBRA TECHNOLOGIES
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: Zebra: Compelling Investment Opportunity
Zebra: Compelling Investment Opportunity • Innovation & Expertise IMAGE AREA 7.5” h x 7.4”w • Industry Leadership • Capitalizing on Megatrends • Global Reach and Scale • Diversified Customer Base • Attractive Earnings Expansion ZEBRA TECHNOLOGIES 3
Slide 4: Evolution to Solutions Provider
Evolution to Solutions Provider Research & Development Savanna Data Intelligence Platform First Mobile RFID First Wearable Printing Solutions First Barcode Computer First Smart Printer First Laser- Environment Scannable First Enterprise for Thermal Two- Digital Assistant Printers First All-touch And
Slide 5: Industry Leader With Global Diversified Customer Base
Industry Leader With Global Diversified Customer Base Sales by Geography Sales by Vertical Market Sales by Segment Latin America Asset Other Asia Intelligence Pacific North Retail & and America Ecommerce Tracking Healthcare Enterprise Visibility Manufacturing and EMEA Mobility Transportation & Logis
Slide 6: Market Leadership
Market Leadership Asset Intelligence & Tracking (AIT) Enterprise Visibility & Mobility (EVM) #1 Market Share in Enterprise Mobile Computing (>45%) #1 Market Share in Barcode Printing (>40%) and Data Capture Solutions (~ 30%) Segment Sales1: $1.4B Segment Sales1: $2.9B Printing Enterprise Mobile Comp
Slide 7: 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 7
Slide 8: A Tech Leader in Attractive Markets
A Tech Leader in Attractive Markets $25B+ Addressable Market Opportunity 4-5% Annualized organic sales growth Expansion Expansion Extending our leadership position and $15B+ penetration in core markets $15B+ Faster growth markets Faster growth markets than the core than the core Evolving the portfol
Slide 9: Achieving Strong Profitable Growth Post Enterprise Acquisition
Achieving Strong Profitable Growth Post Enterprise Acquisition(1) FY15 FY16 FY17 FY18 1Q19 (2,3) Organic Net Sales Growth +7.5% +0.4% +6.5% +11.1% +7.9% Adjusted EBITDA Margin 16.2% 17.5% 18.6% 20.7% 21.1% Non-GAAP EPS Growth NM +10% +27% +56% +14% Free Cash Flow (Annual) $0M $303M $428M $721M $650M
Slide 10: Tariff Considerations
Tariff Considerations Zebra 4/30/19 Outlook Assumptions Potential List 4 Tariff Scenario • Sec 301 List 1-3 Tariffs @ 25% on certain • Tariffs remain a dynamic and fluid situation scanners, components, and accessories • Like many other companies, we currently import a manufactured in China substanti
Slide 11: Thank You
Thank You Investor Relations InvestorRelations@zebra.com (847) 793-5592 ZEBRA and the stylized Zebra head are trademarks of ZIH Corp, registered in many jurisdictions worldwide. All other trademarks are the property of their respective owners. ©2018 ZIH Corp and/or its affiliates. All rights reserve
Slide 12: Appendix
Appendix
Slide 13: 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 14: GAAP to Non-GAAP Reconciliation – Organic Net Sales Growth
GAAP to Non-GAAP Reconciliation – Organic Net Sales Growth Three Months Ended March 30, 2019 Consolidated Reported GAAP Consolidated Net sales growth 9.1 % Adjustments: Impact of foreign currency translation (1) 0.9 % (2) Impact of acquisition (2.1 )% Organic Net sales growth 7.9 % (1) Operating res
Slide 15: GAAP to Non-GAAP Reconciliation – Organic Net Sales Growth
GAAP to Non-GAAP Reconciliation – Organic Net Sales Growth Twelve Months Ended December 31, 2018 Reported GAAP Consolidated Net sales growth 13.3 % Adjustments: Impact of foreign currency translation (1) (1.6 )% (2) Impact of Xplore acquisition (0.6 )% Organic Net sales growth 11.1 % (1) Operating r
Slide 16: GAAP to Non-GAAP Reconciliation – Organic Net Sales Growth
GAAP to Non-GAAP Reconciliation – Organic Net Sales Growth Twelve Months Ended December 31, 2017 December 31, 2016 Reported GAAP Consolidated Net sales growth 4.1 % (2.1)% Adjustments: Impact of Wireless LAN Net sales (1) 3.2 % 1.4 % Impact of foreign currency translation(2) (0.6)% 1.3 % Corporate,
Slide 17: GAAP to Non-GAAP Reconciliation – EBITDA
GAAP to Non-GAAP Reconciliation – EBITDA Three Months Ended March 30, 2019 Net income $ 115 Add back: Depreciation 19 Amortization of intangible assets 28 Total Other expenses, net 28 Income tax expense 16 EBITDA (Non-GAAP) 206 Adjustments to Cost of sales Purchase accounting adjustments 1 Share-bas
Slide 18: GAAP to Non-GAAP Reconciliation – EBITDA
GAAP to Non-GAAP Reconciliation – EBITDA Twelve Months Ended December 31, 2018 Net income (loss) $ 421 Add back: Depreciation 78 Amortization of intangible assets 97 Total Other expenses, net 86 Income tax expense 103 EBITDA (Non-GAAP) 785 Adjustments to Net sales Purchase accounting adjustments — T
Slide 19: GAAP to Non-GAAP Reconciliation – EBITDA
GAAP to Non-GAAP Reconciliation – EBITDA ZEBRA TECHNOLOGIES 19
Slide 20: GAAP to Non-GAAP Reconciliation – EBITDA
GAAP to Non-GAAP Reconciliation – EBITDA Twelve Months Ended December 31, EBITDA Reconciliation 2015 Operating income $ 37 Depreciation 69 Amortization of intangible assets 251 EBITDA (Non-GAAP) 357 Adjustments to Net sales Purchase accounting adjustments 16 Total adjustments to Net sales 16 Adjustm
Slide 21: GAAP to Non-GAAP Reconciliation – Net Income
GAAP to Non-GAAP Reconciliation – Net Income Three Months Ended March 30, March 31, 2019 2018 Net income $ 115 $ 109 Adjustments to Cost of sales (1) Purchase accounting adjustments 1 — Share-based compensation 1 1 Total adjustments to Cost of sales 2 1 Adjustments to Operating expenses (1) Amortiza
Slide 22: GAAP to Non-GAAP Reconciliation – Net Income
GAAP to Non-GAAP Reconciliation – Net Income Trailing Twelve Three Months Ended Months Ended March 30, 2019 December 31, 2018 September 29, 2018 June 30, 2018 March 30, 2019 Net income $ 115 $ 115 $ 127 $ 70 $ 427 Adjustments to Cost of sales1 Purchase accounting adjustments 1 2 1 - 4 Share-based co
Slide 23: GAAP to Non-GAAP Reconciliation – Net Income
GAAP to Non-GAAP Reconciliation – Net Income Twelve Months Ended December 31, 2018 Net income (loss) $ 421 Adjustments to Net sales (1) Purchase accounting adjustments — Total adjustment to Net sales — Adjustments to Cost of sales (1) Purchase accounting adjustments 3 Share-based compensation 4 Tota
Slide 24: GAAP to Non-GAAP Reconciliation – Net Income
GAAP to Non-GAAP Reconciliation – Net Income Twelve Months Ended December 31, December 31, December 31, 2017 2016 2015 Net income (loss) $ 17 $ (137 ) $ (158 ) Adjustments to Net sales (1) Purchase accounting adjustments 3 10 16 Total adjustment to Net sales 3 10 16 Adjustments to Cost of sales (1)
Slide 25: GAAP to Non-GAAP Reconciliation – Free Cash Flow
GAAP to Non-GAAP Reconciliation – Free Cash Flow Trailing Twelve Three Months Ended Months Ended March 30, 2019 December 31, 2018 September 29, 2018 June 30, 2018 March 30, 2019 Net cash provided by operating activities $ 42 $ 325 $ 194 $ 150 $ 711 Less: Purchases of property, plant and equipment (1
Slide 26: GAAP to Non-GAAP Reconciliation – Free Cash Flow
GAAP to Non-GAAP Reconciliation – Free Cash Flow Twelve Months Ended December 31, 2018 Net cash provided by operating activities $ 785 Less: Purchases of property, plant and equipment (64) Free cash flow (Non-GAAP) (1) $ 721 (1) Free cash flow is defined as Net cash provided by operating activities
Slide 27: GAAP to Non-GAAP Reconciliation – Free Cash Flow
GAAP to Non-GAAP Reconciliation – Free Cash Flow Twelve Months Ended December 31, December 31, December 31, 2017 2016 2015 Net cash provided by operating activities $ 478 $ 380 $ 122 Less: Purchases of property, plant and equipment (50 ) (77 ) (122 ) Free cash flow (Non-GAAP)(1) $ 428 $ 303 $ 0 Free
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