DEUTSCHE BANK LEVERAGED FINANCE CONFERENCE. 30 September 2015

Transcription

1 DEUTSCHE BANK LEVERAGED FINANCE CONFERENCE 30 September 2015

2 FORWARD LOOKING 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 Actual results may differ from those expressed or implied in the company s forwardlooking statements. Zebra may elect to update forward-looking statements but expressly disclaims any obligation to do so, even if the company s estimates change. These forward-looking statements are based on current expectations, forecasts and assumptions and are subject to the risks and uncertainties inherent in Zebra s industry, the Enterprise Business, market conditions, general domestic and international economic conditions, and other factors. These factors include customer acceptance of Zebra s hardware and software products and competitors product offerings, and the potential effects of technological changes. The continued uncertainty over future global economic conditions, the availability of credit, capital markets volatility, may have adverse effects on Zebra, its suppliers and its customers. In addition, a disruption in our ability to obtain products from vendors as a result of supply chain constraints, natural disasters or other circumstances could restrict sales and negatively affect customer relationships. Profits and profitability will be affected by Zebra s ability to control manufacturing and operating costs. Because of its debt, interest rates and financial market conditions will also have an impact on results. Foreign exchange rates will have an effect on financial results because of the large percentage of our international sales. The outcome of litigation in which Zebra may be involved is another factor. The success of integrating acquisitions, including the Enterprise business of Motorola Solutions, could also affect profitability, reported results and the company s competitive position in it industry. These and other factors could have an adverse effect on Zebra s sales, gross profit margins and results of operations. Descriptions of the risks, uncertainties and other factors that could affect the company s future operations and results can be found in Zebra s filings with the Securities and Exchange Commission. In particular, please refer to Zebra s latest filing of its Form 10-K. 2

3 INVESTMENT HIGHLIGHTS years of technological expertise and innovation 2 Clear leader focused solely on Enterprise Asset Intelligence 3 Poised to benefit from Mobility, Internet of Things & Cloud Trends 4 Global provider serving key industries and end customers 5 Positioned for long-term growth and value creation 3

4 ZEBRA S EVOLUTION Engineering company focused on hardware Innovator of solutions for the smart enterprise Revenue ($M) 3,500 Active RIFD Connectivity, Software, Device Management, Motion Management Mobile Computing, Data Capture, RFID and Wireless LAN Kiosk High-performance and Midrange Card, Desktop, RFID, Mobile MotionWorks 0 Zebra Technologies Corporation Class A 4

5 BROADEST AND DEEPEST PORTFOLIO Location and Motion Sensing Mobile Computing Cloud-based Device Management Sense Data Capture Enterprise Asset Intelligence Wireless LAN Barcode Printing RFID Card Printing 5

6 SERVING KEY INDUSTRIES & END CUSTOMERS RETAIL T & L MANUFACTURING HEALTHCARE SIMPLIFY Operations -- KNOW More About Your Business -- CAPTURE and Leverage Data -- EMPOWER Mobile Workers SERVE 95% OF CUSTOMERS 6

7 DIVERSIFIED BY INDUSTRY AND REGION Sales by Industry Sales by Region 35% 22% 21% 47% 34% 22% 6% 13% Retail T&L Manufacturing Other North America EMEA Asia Pacific Latin America 7

8 FORMIDABLE GROWTH DRIVERS Megatrends INTERNET OF THINGS MOBILITY CLOUD Industry Trends LASER TO IMAGING OS TRANSITION ac 8

9 STRATEGY FOR VALUE CREATION TRANSFORMATION EXECUTION GROWTH 9

10 2015 PRIORITIES Capitalize on revenue opportunities Achieve synergies Execute on integration Identify key areas for further growth De-lever the balance sheet 10

11 CURRENT UPDATE First half 2015 sales : +11% YoY growth, constant currency (incl. Pre-transaction Zebra +18%, Enterprise +7%) Industry leading portfolio in mobile computing, scanning, printing More strategic partner to customers Improved channel relationships Broad-based geo growth North America, EMEA, Asia Pacific Mobile computing OS migration On track to capture synergies $60 million 1H 2015; $150M by 2016 Further opportunities beyond 2016 Priority for excess cash : pay-down of debt $130M paid-down YTD Leverage goal : less than 3x by end 2017 Long-term model % sales growth over a business cycle 18-20% EBITDA margin

12 CURRENT UPDATE OS MIGRATION ~15 million unit mobile computing installed base >90% operate on Windows CE or Mobile Legacy MSFT OS support ending 2020 Migration underway to modern OS s est. $12B enterprise rugged MC SAM Migration progression Led by early adopters, including large reference accounts Drives partner confidence and market acceptance Channel business follows Early successes / Well positioned Industry leading Android portfolio / strong order growth Large deal wins - near term margin pressure, long term value generation Win 10 devices in 2016 / OS agnostic Margin enhancement opportunities, incl, cross selling and cost reduction 12

13 INVESTMENT HIGHLIGHTS years of technological expertise and innovation 2 Clear leader focused solely on Enterprise Asset Intelligence 3 Poised to benefit from Mobility, Internet of Things & Cloud Trends 4 Global provider serving key industries and end customers 5 Positioned for long-term growth and value creation 13

14 DEUTSCHE BANK LEVERAGED FINANCE CONFERENCE 30 September 2015