MANAGEMENT PRESENTATION APRIL 15, 2014 ENTERPRISE ASSET INTELLIGENCE FOR THE CONNECTED AGE Exhibit 99.3 |
Enterprise Asset Intelligence for the Connected Age FORWARD-LOOKING STATEMENT 2 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 from those expressed or implied in the company’s forward-looking 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 the completion of the acquisition of the Enterprise Business from Motorola Solutions, including the successful financing of the transaction, the successful integration of the operations by Zebra, and Zebra’s ability to implement plans, forecasts and other expectations with respect to the Enterprise Business after the acquisition is completed. Customer acceptance of Zebra’s products and solutions and competitors’ product offerings, and the potential effects of technological changes are inherent risks associated with the combined business. Foreign exchange rates and uncertainty over future global economic conditions will have an effect on financial results. 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. |
Enterprise Asset Intelligence for the Connected Age TODAY’S SPEAKERS 3 Anders Gustafsson Chief Executive Officer Michael C. Smiley Chief Financial Officer |
Enterprise Asset Intelligence for the Connected Age WE SIT AT THE INTERSECTION OF THE PHYSICAL AND THE DIGITAL 4 |
Enterprise Asset Intelligence for the Connected Age CREATING THE GLOBAL LEADER IN ENTERPRISE ASSET INTELLIGENCE 5 CIO’s first call for enterprise asset intelligence Solutions for the smart enterprise Riding well-defined secular growth waves • Global leader in specialty printing, RFID and location & motion tracking solutions • Enabling businesses to translate the physical into digital insights • Culture of innovation • Established leader in mobile enterprise computing, data capture and RFID • Strong services component • Scale in procurement, manufacturing and logistics • Strong and broad global partner network Motorola Solutions Enterprise Business |
Enterprise Asset Intelligence for the Connected Age ACQUISITION HIGHLIGHTS 6 • Acquisition of the Enterprise Business of Motorola Solutions • Excludes iDEN, the professional commercial radio product line • Includes ~3,700 issued and pending patents • Includes ~4,500 employees • Attractive financial proposition for shareholders |
Enterprise Asset Intelligence for the Connected Age TRANSACTION DETAILS 7 • All-cash transaction of $3.45 billion • Multiple of 10.9x on last 12 month EBITDA; 8.3x with synergies • $100 million in run-rate synergies • Fund with $3.25 billion in debt and $200 million of cash on hand • Efficient use of off-shore cash • Accretive in first full year on a cash EPS basis, post closing • Deal ROIC exceeds cost of capital by year three • Fully underwritten financing commitment from Morgan Stanley • $250 million revolver |
Enterprise Asset Intelligence for the Connected Age TRANSACTION DETAILS 8 • Debt to adjusted EBITDA ratio of approximately 5x at closing • Rapid debt pay-down strategy • Target: leverage of less than 3x by year three • Significant free cash flow generation • Long-term expectations – 4-5% sales growth, before sales synergies – 18-20% EBITDA margin |
Enterprise Asset Intelligence for the Connected Age CLEARLY DEFINED ROADMAP TO INTEGRATION 9 • Mike Terzich to head Integration Management Office – Senior leader with 25 years of industry experience • Execution plan and calendar in place to ensure Day One readiness • Complete transaction by end of 2014 |
Enterprise Asset Intelligence for the Connected Age THE ENTERPRISE INTERNET OF THINGS 10 • Data sensing, tracking and capturing devices • Secure wireless and wireline networks • Flexible, cloud-based applications • Big data analytics for actionable business insights |
Enterprise Asset Intelligence for the Connected Age WE ARE UNITING LEADERS IN SIX KEY TECHNOLOGIES 11 Cloud-Based Device Management RFID Location and Motion Sensing Data Capture and Scanning Barcode & Card Printing Mobile Computing |
product development engineers worldwide 1,700 INNOVATION IS IN OUR DNA 12 60 major solution releases in 2013 4,500 patents issued and pending 12 Enterprise Asset Intelligence for the Connected Age |
Enterprise Asset Intelligence for the Connected Age Used by retailers with over 70,000 retail stores in the US WE MAKE RETAIL WORK 13 Self Service Solutions Mobile Payment Solutions RFID Tag Solutions Customer Engagement Solutions Access ID Solutions |
MODERN MANUFACTURING AND T&L ENTERPRISES In facilities for all top 10 global manufacturers Over 9 billion packages delivered in 2013 14 Put Away Solutions Cycle Counting Solutions Shipping/Receiving Solutions Picking Solutions Enterprise Asset Intelligence for the Connected Age |
Enterprise Asset Intelligence for the Connected Age … AS WELL AS TODAY’S HEALTHCARE WORKSPACE Providers using our devices handle over 300 million patient visits per year 15 Bedside Medication Administration Solutions Specimen Label Solutions Positive Patient ID Solutions Personnel ID Solutions Blood Labeling Solutions |
Enterprise Asset Intelligence for the Connected Age SOLUTIONS TO 95% OF FORTUNE 500 COMPANIES 16 |
COMBINING TWO GREAT BUSINESSES Making the SMART and CONNECTED ENTERPRISE a Reality |
QUESTIONS? |
APPENDIX |
Enterprise Asset Intelligence for the Connected Age LTM EBITDA—UNAUDITED 20 LTM (last 12 months) EBITDA is computed as follows: LTM 3/31/2014 ($ millions) Motorola Enterprise Business Zebra Proforma Operating Income 201 $ 187 $ 388 $ Plus: Depreciation & amortization 69 $ 34 $ 103 $ Exit and restructuring costs 46 $ 14 $ 60 $ EBITDA 316 $ 235 $ 551 $ |
THANK YOU |