Zebra Technologies Corporation · NASDAQ:ZBRA
Zebra Technologies — Investor Presentation (February 2010)
21 slides from Zebra Technologies's investor presentation, February 2010
Slide 1: Investor Presentation
Investor Presentation Zebra Technologies Corporation February 2010
Slide 2: The right asset in the right place at the right time
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 2
Slide 3: 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 3
Slide 4: 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 4
Slide 5: Industry Leadership
Industry Leadership • Clear global industry and brand leadership • Broadest range of on-demand thermal printer and asset tracking offerings • Industry’s most comprehensive go-to-market channel network • Financial strength 5
Slide 6: Diverse Revenue Base
Diverse Revenue Base Product Line Geography Business Unit 6
Slide 7: Vertical Markets
Vertical Markets Industrial Manufacturing Transport & Retail Logistics Aviation Government Healthcare Mobile Maritime Workforce Aerospace & Specialty Printing Defense Enterprise Solutions 7
Slide 8: Financial Benefits of Global Leadership
Financial Benefits of Global Leadership • High profitability • Strong free cash flow generation – $80 million (2009) • Low capital investment requirements • $246 million in cash and investments • $100 million untapped line of credit • Zero debt 8
Slide 9: Invest in New Products and Solutions
Invest in New Products and Solutions High Midrange Label design Performance Security performance printers software class card card printers printers printers Networking products Printer Mobile Desktop management Value class Card printer printers Printers software card printers supplies RFID printer/
Slide 10: New Product Introductions
New Product Introductions • New card and high-performance printers in 2009 • Increasing focus on meeting regional needs P4T RFID • Expand breadth of printers to mobile printer serve more applications HC100 wristband printer Xi4 High- ZXP Series 8 re- Performance transfer card G-series desktop 10 lab
Slide 11: Invest in Channels
Invest in Channels • Extend reseller base • Develop stronger ties with systems integrators • Build new channel relationships to reach targeted verticals Zebra • Introduce channel partners to new enterprise solutions Alliance Distributor OEMs Channel System VAR VAR Integrator End-User Customer 11
Slide 12: Invest in International Expansion
Invest in International Expansion Adding 35 sales associates in 2010 to accelerate geographic expansion Russia Brazil China India 12
Slide 13: Financial Highlights
Financial Highlights 13
Slide 14: Sales History
1000 800 ff} Sales ($ in mils) 400 4- 200 44 Annual Sales 30.0% 600 4 GamsPG Sales —e=Growth ry 20.0% + 10.0% Growth 7 0.0% r -10.0% r -20.0% Sales ($ in mils) 250 230 4- 210 4 190 + 170 + 150 ( Quarterly Sales 4Q07 2Q08 4008 2Q09 4Q09
Slide 15: Earnings Per Share (proforma)
Earnings Per Share (proforma) 15
Slide 16: Managing Through the Downturn
Managing Through the Downturn • Managed downturn better than most – Early, aggressive cost reductions – Benefiting from business diversity across geographies, products, customers and industries • Factors affecting 2009 results – Sales decline – Product mix – Duplicate overhead during manufacturing a
Slide 17: Capital Allocation Discipline
Capital Allocation Discipline • Invest in those activities that deliver the highest risk- adjusted returns • Priority to maintain financial strength and flexibility • Long-term model – Deploy 25% of cash flow to working capital and capital expenditure needs – Share remaining 75% between returning ca
Slide 18: Buy Back Shares
Buy Back Shares • Taking advantage of financial strength to buy back shares • Board authorization to purchase 5M shares in Oct. ’08 and an additional 3M in Feb. ’09 • 2M shares remaining in buyback • 16.2M shares purchased since ’05 18
Slide 19: Recent Business Trends
Recent Business Trends • Greater stability since the end of 2Q09 • Customers willing to re-engage in discussions on investments that have predictable, rapid paybacks • Acceleration of large-deal activity and run-rate business in 4Q09 • Improving product mix • Relative strength in healthcare, governm
Slide 20: Zebra is well positioned to accelerate growth and increase profitability!
Zebra is in a Great Business! • Leading company in an attractive industry • High profitability and strong cash flow generation • Opportunities and strategy to accelerate sales growth and increase profitability • Financial strength and flexibility Zebra is well positioned to accelerate growth and inc
Slide 21: Investor Presentation
Investor Presentation Zebra Technologies Corporation February 2010
Zebra Technologies — Investor Presentation (February 2010) on 6ix