Zebra Technologies Corporation · NASDAQ:ZBRA

Zebra Technologies — Bernstein Strategic Decisions Conference 2019

27 slides from Zebra Technologies's conference presentation, May 31, 2019

  1. Slide 1: Bernstein Strategic Decisions Conference

    Bernstein Strategic Decisions Conference May 31, 2019 ZEBRA TECHNOLOGIES

  2. 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

  3. 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

  4. 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

  5. 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

  6. 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

  7. 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

  8. 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

  9. 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

  10. 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

  11. 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

  12. Slide 12: Appendix

    Appendix

  13. 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

  14. 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

  15. 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

  16. 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,

  17. 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

  18. 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

  19. Slide 19: GAAP to Non-GAAP Reconciliation – EBITDA

    GAAP to Non-GAAP Reconciliation – EBITDA ZEBRA TECHNOLOGIES 19

  20. 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

  21. 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

  22. 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

  23. 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

  24. 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)

  25. 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

  26. 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

  27. 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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