Slide 1: Zebra Technologies First Quarter 2022 Results
Zebra Technologies First Quarter 2022 Results May 3, 2022 ZEBRA TECHNOLOGIES
Slide 2: Safe Harbor Statement
Insert Section Title Here 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 fro
Slide 3: Agenda
Agenda 01 Q1 Highlights Anders Gustafsson, CEO 02 Q1 Financials and 2022 Outlook Nathan Winters, CFO 03 Advancing Our Enterprise Asset Intelligence Vision, Served Market Update Anders Gustafsson, CEO 04 Q&A Anders Gustafsson, CEO Nathan Winters, CFO Joe Heel, Chief Revenue Officer ZEBRA TECHNOLOGIES
Slide 4: First Quarter 2022 P&L Highlights
First Quarter 2022 P&L Highlights (1) • Delivered sales and earnings results that exceeded our outlook in an exceptionally challenging macro environment • Organic Net Sales increased 5% ‒ Broad-based demand for our solutions that help our customers automate & digitize their operations in the increas
Slide 5: Agenda
Agenda 01 Q1 Highlights Anders Gustafsson, CEO 02 Q1 Financials and 2022 Outlook Nathan Winters, CFO 03 Advancing Our Enterprise Asset Intelligence Vision, Served Market Update Anders Gustafsson, CEO 04 Q&A Anders Gustafsson, CEO Nathan Winters, CFO Joe Heel, Chief Revenue Officer ZEBRA TECHNOLOGIES
Slide 6: First Quarter P&L Summary
First Quarter P&L Summary(1) SEGMENT ORGANIC SALES GROWTH(2,3) In millions, except per share data 1Q22 1Q21 Change • EVM Segment +11.6% • AIT Segment (8.1%) Adjusted Net Sales $1,432 $1,350 +6.1% Organic Net Sales Growth(2,3) +5.4% REGIONAL ORGANIC SALES GROWTH(2,3) • North America +2% Adjusted Gros
Slide 7: Cash Flow & Balance Sheet Highlights
Cash Flow & Balance Sheet Highlights Cash Flow: Q1 2022 Strong Liquidity Position: Q1 2022 • $40M free cash flow • $141M cash & cash equivalents ‒ $174 lower YoY primarily due to higher incentive • $1,101M total debt on balance sheet compensation payment due to exceptional 2021 performance and incre
Slide 8: Global Premium Supply Chain Costs Have Escalated Through Pandemic
Global Premium Supply Chain Costs Have Escalated Through Pandemic Expected to Abate as Component Supply and Freight Capacity Improves 68 Estimate In Millions USD 63 ~$200M FY22 60 Impact, Net of Pending 44 Price Increase 21 12 2 -1 -3 -3 -4 -4 ZEBRA TECHNOLOGIES 8 Note: Premium supply chain costs ca
Slide 9: Outlook & Assumptions
Outlook & Assumptions(1) 2Q22 FY22 • Adjusted net sales growth ~ 3-7% YoY • Adjusted net sales growth 3-7% YoY ‒ ~50 basis point negative net impact from FX and recently ‒ Neutral net impact from recently acquired acquired businesses(2) business and FX(2) • Adjusted EBITDA margin ~ 22-23% • Adjusted
Slide 10: Agenda
Agenda 01 Q1 Highlights Anders Gustafsson, CEO 02 Q1 Financials and 2022 Outlook Nathan Winters, CFO 03 Advancing Our Enterprise Asset Intelligence Vision, Served Market Update Anders Gustafsson, CEO 04 Q&A Anders Gustafsson, CEO Nathan Winters, CFO Joe Heel, Chief Revenue Officer ZEBRA TECHNOLOGIES
Slide 11: Zebra Digitizes & Automates the Front Line of Business
Zebra Digitizes & Automates the Front Line of Business Transforming Workflows: Purpose-Built Hardware + Software + Cloud Analytics Real-Time Actionable Insights ZEBRA TECHNOLOGIES 11
Slide 12: Zebra Well Positioned for 5-7% L-T Organic Sales Growth in $30B Served Market
Zebra Well Positioned for 5-7% L-T Organic Sales Growth in $30B Served Market Attractive Adjacent & Expansion Opportunities Augment Our Vibrant Core Expansion Fixed Industrial Megatrends Scanning / Machine Vision Smart Cameras On-Demand Economy IoT & Asset Visibility Mobility & Cloud Computing Smart
Slide 13: Matrox Imaging Acquisition To Significantly Expand Machine Vision Portfolio
Matrox Imaging Acquisition To Significantly Expand Machine Vision Portfolio Enhanced Software Capabilities Accelerate Our Growth Opportunity (pending acquisition) INDUSTRIAL SCANNING ADVANCED MACHINE VISION FOUNDATIONAL MACHINE VISION PRODUCT PLATFORMS Smart Cameras Vision Controllers 3D Sensors Sma
Slide 14: Zebra Optimizes Workflows for the On-Demand Economy
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 is a sample te
Slide 15: Agenda
Agenda 01 Q1 Highlights Anders Gustafsson, CEO 02 Q1 Financials and 2022 Outlook Nathan Winters, CFO 03 Advancing Our Enterprise Asset Intelligence Vision, Served Market Update Anders Gustafsson, CEO 04 Q&A Anders Gustafsson, CEO Nathan Winters, CFO Joe Heel, Chief Revenue Officer ZEBRA TECHNOLOGIES
Slide 16: Q&A
Q&A ZEBRA TECHNOLOGIES
Slide 17: Appendix
Appendix ZEBRA TECHNOLOGIES 17
Slide 18: Use of Non-GAAP Financial Information
Use of Non-GAAP Financial Information This earnings release 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
Slide 19: GAAP to Non-GAAP Organic Net Sales Growth Reconciliation (Unaudited)
GAAP to Non-GAAP Organic Net Sales Growth Reconciliation (Unaudited) ZEBRA TECHNOLOGIES 19
Slide 20: GAAP to Non-GAAP Gross Margin Reconciliation
GAAP to Non-GAAP Gross Margin Reconciliation ZEBRA TECHNOLOGIES 20
Slide 21: GAAP to Non-GAAP Net Income Reconciliation
(In millions, except GAAP to Non-GAAP Net Income Reconciliation share data) (Unaudited) ZEBRA TECHNOLOGIES 21
Slide 22: GAAP to Non-GAAP EBITDA Reconciliation
(In millions) GAAP to Non-GAAP EBITDA Reconciliation (Unaudited) ZEBRA TECHNOLOGIES 22
Slide 23: GAAP to Non-GAAP Free Cash Flow Reconciliation (Unaudited)
(In millions) GAAP to Non-GAAP Free Cash Flow Reconciliation (Unaudited) ZEBRA TECHNOLOGIES 23
Slide 24: 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