Zebra Technologies Corporation · NASDAQ:ZBRA
Zebra Technologies — William Blair Growth Stock Conference 2010
20 slides from Zebra Technologies's conference presentation, June 2010
Slide 1: William Blair Growth Stock Conference
William Blair Growth Stock Conference Zebra Technologies Corporation June 2010 The right asset. In the right place. At the right time.
Slide 2: Zebra improves customers' business performance through products and solutions
Zebra improves customers’ business performance through products and solutions that identify, track and manage assets, transactions and people. The right asset in the right place at the right time Inventory Assets and Equipment Movement Vehicles Transactions People 2
Slide 3: Attractive Global Trends
Attractive Global Trends Globalization of the world economy Increased focus on gaining efficiencies and cost reductions in supply chains Greater safety and security concerns Greater demand for asset information • What is it? • Where is it? • When is it going to arrive? 3
Slide 4: Investment Appeals
Investment Appeals Industry-leading brand of specialty printers and locating technologies Broadest product line Largest installed base Global reach to serve customers’ worldwide needs Loyal customers and channel partners Breadth of channel Industry’s highest ranked channel program Hi
Slide 5: Financial Benefits of Global Leadership
Financial Benefits of Global Leadership High profitability • 47.9% five-year average gross margin • 14.1% five-year average operating margin* Strong free cash flow generation • $80 million (2009) • $458 million over past five years Low capital investment requirements $254 million in cash and
Slide 6: Strategy for Growth and Shareholder Value Creation
Strategy for Growth and Shareholder Value Creation 6
Slide 7: Strategy for Growth
Strategy for Growth 1. Accelerate geographic expansion in under-served regions with high growth potential 2. Focus on greater innovation in new products to meet regional and industry needs 3. Build stronger relationships with systems integrators and independent software vendors (ISVs) 4. Leverage ch
Slide 8: 1. Accelerate Geographic Expansion
1. Accelerate Geographic Expansion Developing market economies in Asia, Latin America and Eastern Europe offer above average growth business opportunities Proven low-risk, high-return activity Adding 40 sales associates in 2010 to build international channels • Primary focus on China, Brazil,
Slide 9: 2. Focus on Product Innovation
2. Focus on Product Innovation Serve new applications Meet specific regional needs Zebra Location Appliance Printers with superior features, functionality and performance New design center opened in China IQ Color Labels Xi4 High- ZXP Series 8 HC100 P4T RFID wristband Performance retransfer
Slide 10: 3. Systems Integrators and ISVs
3. Systems Integrators and ISVs Program to recruit, manage and support Global Partners for incremental sales opportunities • Partners who can work across the breadth of Zebra products and solutions • Biggest opportunities in transportation, supply chain, government and RFID Comprehensive ISV pro
Slide 11: 4. Zebra Enterprise Solutions
4. Zebra Enterprise Solutions Investing in product and channel development Zebra Location Appliance • Enables easy integration of Zebra’s technologies by channel partners • Connects network of distributed location sensors • Forwards data to the application back end Building business pipeline 1
Slide 12: Zebra is Well Positioned to Extend Leadership
Zebra is Well Positioned to Extend Leadership Zebra’s strategic position Strong Zebra’s financial position Strong Zebra’s ability to take advantage of the impact of downturn on the Large industry Zebra’s strong strategic and financial position coupled with the economic downturn creates an opportunit
Slide 13: Financial Highlights
Financial Highlights 13
Slide 14: Key Milestones Achieved
Key Milestones Achieved Completed two-year printer outsourcing initiative • Achieving projected 250 basis improvement to gross margin • Improving efficiency of Zebra’s global distribution Lower cost structure from early actions • Reduces operating expenses • Provides operating leverage for growt
Slide 15: Recent Business Trends
Recent Business Trends Customers re-engaging on investments with predictable, rapid paybacks Acceleration of large-deal activity Improved gross profit margins from outsourcing, product mix and volume Accelerating earnings growth from controlled expenses Supply chain challenges related to e
Slide 16: Sales History
( Sales History ZEBRA TECHNOLOGIES Annual Sales Quarterly Sales $1,000 OO + 30% $260 $800 + 20% $240 2 $600 + 10% ze $220 E 5 2 £ = = e 2 £ rf Oe oO n = oO © $400 + 0% B $200 $200 + -10% $180 $0 r -20% $160 a ise) = ite) o S ce) 2) f=) S (=) f=) f=) (=) f=) f=) So f=) So f=) f=) f=) f=) f=) a a a a
Slide 17: Earnings Per Share (proforma)
Earnings Per Share (proforma) 17
Slide 18: Buy Back Shares
Buy Back Shares Invest in highest risk- adjusted returning activities Using financial strength to buy back shares 1.4M shares remaining in buyback Bought 750,000 shares in 1Q10 18
Slide 19: Zebra is in a Great Business
Zebra is in a Great Business Leading company in an attractive industry High profitability and strong cash flow generation Opportunities and strategy extend industry leadership, accelerate sales growth and increase profitability Financial strength and flexibility Zebra is well positioned to a
Slide 20: The right asset. In the right place. At the right time.
The right asset. In the right place. At the right time.
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