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INVESTOR PRESENTATION ZEBRA TECHNOLOGIES CORPORATION SEPTEMBER 2012


FORWARD-LOOKING STATEMENT Statements made in this presentation which are not statements of historical fact are forwardlooking 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 implied. These statements represent estimates only as of the date they were made. 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 subject to the risks and uncertainties inherent in Zebra’s industry, market conditions, general domestic and international economic conditions, and other factors. These factors include market conditions in North America and other geographic regions and market acceptance of Zebra’s printer and software products and competitors’ product offerings and the potential effects of technological changes. Other factors include U.S. and foreign regulations that pertain to electrical and electronic equipment. Profits and profitability will be affected by the company’s ability to control manufacturing and operating costs. Interest rates and financial market conditions will also have an impact on results. Foreign exchange rates will have an effect on financial results. The outcome of litigation in which Zebra is involved, and particularly litigation or claims related to alleged infringement of third-party intellectual property rights, is another factor. In addition, the acquisitions have risks relating to integrating these companies’ businesses and operations with Zebra’s. 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


ZEBRA POSITIONED FOR GROWTH

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More than 40 years of technology expertise, innovation and industry leadership



Sales close to $1 billion in a high-margin business



Diverse customer base, products and solutions, and geographies



Diverse, growing channels that are expanding opportunities


Zebra improves customers’ business performance through solutions that give their assets a digital voice Enable visibility into the extended supply chain.

4

Identify, track and manage assets, transactions and people.


INNOVATION DRIVING RELEVANT SOLUTIONS 

Broad portfolio of enabling technologies – – – – –

Robust line of print solutions Printer management, connectivity and asset management software Printer consumables and services Radio frequency identification Real time location solutions



Deep vertical expertise



Global alliance partnerships


VALUE TO THE CUSTOMER

Operate more efficiently

Improved Business Performance Measurable, sustainable ROI

Improve customer experience

Increase safety, security and compliance

6

Increase asset throughput and velocity Deeper customer engagement and loyalty

6


GLOBALIZATION DRIVING GROWTH

7



Industrialization of emerging markets



Increasing global competition driving productivity



Growing middle class in emerging markets



Focus on gaining efficiencies and cost reductions in increasingly complex supply chains



Demand for real-time information


KEY TECHNOLOGY TRENDS Gartner: Top 10 Strategic Technology Trends for 2012 Human Experience

IT Department Experience

1*

Media tablets and beyond

2*

Mobile-centric applications and interfaces

3*

Contextual and social user experience

4*

Internet of Things

5*

App stores and marketplaces

6*

Next-generation analytics

7*

Big data

8

In-memory computing

9 10*

* Extreme low-energy servers Cloud computing Gartner: IT's Top 10 Technology Trends Oct 18, 2011

8

Business Experience

= Areas where ZBRA’s current work aligns


LEADING GLOBAL BRAND

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High performance printers

Midrange printers

Label design software

Performance class card printers

ZXP Series 8 Retransfer card printer

Networking products

Mobile printers

Desktop printers

Printer management software

ZSP Series 3 card printers

Card printer supplies

RFID printer/encoders

Kiosk printers

Print engines

Specialty supplies

Aftermarket

Location Solutions


PRODUCT DIVERSITY

Other Service and 1% Software 5%

Category 1 Category 2

Supplies 19%

Hardware 75%

Category 3 Category 4 Category 5 Category 6

*Based on LTM sales of $991.6 million.

10


GEOGRAPHIC DIVERSITY 





Sales into approximately 100 countries around the world Recent 45% increase in sales representation in emerging markets 22% of sales into emerging markets (LTM)

11

43% 34% 14%

EMEA Asia Pacific

9%

Latin America North America


WORLDWIDE PRESENCE Worldwide Headquarters | Lincolnshire, IL USA Regional Headquarters | Vernon Hills, IL USA | Bourne End, UK | Doral, FL, USA | Singapore

12


STRONGEST GLOBAL CHANNELS 

Primarily an indirect go-to-market distribution model –

Value-added resellers, distributors, independent software vendors, system integrators



Approximately 20% direct to retailers and small package delivery



Distributors fulfill customer demand from via thousands of VARs

Zebra OEMs

Channel

Alliance

Distributor

VAR

VAR

System Integrator

End-User Customer

13


VERTICAL MARKET FOCUS

Retail

Healthcare

Manufacturing

Government

Mobile Workforce

Transportation & Logistics


INVESTING FOR GROWTH AND PROFITABILITY


DRIVING FOR GROWTH AND RETURNS 

8-10% organic sales growth over a business cycle – – – –



Operating leverage – –



Deeper penetration of high-growth markets and regions Take share strategies Attractive industry fundamentals Improving cadence of product development

High return on investments in geographic expansion Benefits of scale

Capital deployment – – –

Internal investment – grow the core Stock buybacks – cutting the pie into larger pieces Acquisitions – growing the pie


ZEBRA’S STRATEGIC PILLARS

Further Penetrate Existing Markets

Maximize Operational Effectiveness

Delight Customers

Intensify Innovation

17

Expand Into New Markets

Inspire Our People and Culture


FURTHER PENETRATE EXISTING MARKETS 

Success of take-share strategies



Recruit, manage and support systems integrators – –



Expand comprehensive Independent Software Vendor (ISV) program – –

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Partners who can work across the breadth of Zebra products and solutions Opportunities with customers with complex supply chains

Positions Zebra higher in the value chain Enables penetration of targeted verticals

Stronger ties with strategic accounts

PENETRATE


INCREASE OUR SHARE IN STRATEGIC ACCOUNTS

Circa 2000

Circa 2011

2 Applications $X in Revenue

40 Applications $4X in Revenue PENETRATE

19


EXPAND INTO NEW MARKETS 

Impact of more sales resources in emerging markets



Innovative new products enabling new business applications



Continue to expand global network of value-added resellers

EXPAND

20


GROWTH IN HEALTHCARE 

Attractive, under-penetrated vertical –



Acquired LaserBand to accelerate growth – – – –



Compliance and patient safety driving growth

Acquired in July 2012 Proprietary, patented wristbanding products for improved patient safety Strong relationships with hospital purchasing organizations Opportunity to leverage Zebra’s global distribution to accelerate sales growth

Building a sales and marketing platform EXPAND

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INTENSIFY INNOVATION 

Improved cadence of new product introductions – – –

Developed new platforms Introducing a common architecture Greater focus on innovation



On pace to introduce at least 12 new printer products in 2012



Enabling new growth opportunities through greater software content – – –

QLn mobile printer

Ease of use Connectivity Ease of integration INNOVATE


PRODUCT INNOVATION – ZT200 SERIES 

Built on Zebra’s newly developed Link OS advanced printer operating system – – – –



Redesigned using Zebra’s new common platform – – –

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Advanced printer integration capabilities and device management Customizable user interface Easy upgrades to new features due to platform commonality Access to new wireless standards, including 802.11n

“Good-better-best” design approach Increases cadence and improves quality Lowers design costs

INNOVATE


DRIVING OPERATIONAL EXCELLENCE 

Completed printer outsourcing in 2009 – –



Completed divestiture of Navis in 1Q11 – – –



Improved responsiveness to customers Lowered product costs

A good business but not strategic to core Sold for $190 million to Cargotec $67 million pretax gain on sale recognized in 1Q11

ERP implementation nearing completion – – –

Completed go-live in EMEA in January 2011 Completed go-live in North America in February 2012 Asia Pacific implementation in early 2013 24


ACCELERATING GROWTH / SHAREHOLDER VALUE

Contribution from addressable market expansion to increase over time and deliver shareholder value

2-3% 6-7%

Market* Growth

5 Pillar Growth Strategy

Zebra Growth Trajectory

Expand Addressable Market 2 – 5 Years EXPAND

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* Source: VDC


FINANCIAL OVERVIEW


FINANCIAL BENEFITS OF GLOBAL LEADERSHIP 

High growth – –



High profitability – –



Gross margin ~50% Operating margin ~20%

Strong free cash flow generation –

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+21% in 2010 +10% in 2011

>$100M annually



$386M in cash and investments (at 2Q12)



Responsible capital deployment


STRONG TRACK RECORD OF SUCCESS Sales and EPS

$1,000

$2.50

$800

$2.00

$600

$1.50

$400

$1.00

$200

$0.50

$0 Net Sales PF EPS

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$3.00

06

07

08

09

10

11

$760 $0.99

$860 $1.63

$910 $1.80

$738 $0.93

$894 $1.85

$983 $2.43

$0.00

PF EPS

Net Sales (in mils)

$1,200


STRONG TRACK RECORD OF SUCCESS Pro Forma Operating Margin 25.0%

Operating Margin

20.0%

15.0%

10.0%

5.0%

0.0%

Margin

29

06

07

08

09

10

11

19.4%

16.9%

18.5%

11.0%

16.7%

18.7%


HIGH PROFITABILITY EBITDA and EBITDA Margin

$200

20.0%

$150

15.0%

$100

10.0%

$50

5.0%

$EBITDA EBITDA Margin

30

25.0%

07

08

09

10

11

197.4

187.6

110.7

179.0

216.9

21.7%

20.6%

15.0%

20.0%

22.1%

0.0%

EBITDA Margin

EBITDA

$250


SOLID FINANCIAL CONDITION (At June 30, 2012; in millions) Liabilities and Stockholders’ Equity

Assets Cash and S-T investments Receivables, net

156.1

Inventories

116.7

Oth. curr. assets

56.2 Current liabilities

$ 94.3

Current assets

$581.8 Other liabilities

13.5

L-T investments

134.0 Total liabilities

107.8

Other assets

213.0 Stockholders’ equity

821.0

Tot. liabilities and $928.8 stockholders’ equity

$928.8

Total assets

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$252.8


POSITIONED FOR GROWTH AND HIGHER RETURNS 

Following a proven, winning strategy



Opportunity for further operating leverage – –



Growing impact of investments



Further investments in high-return activities – – –

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Maintain high gross margins Manage growth in operating expenses

Geographic expansion New, innovative products Channel expansion

Focus on capital allocation 32


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