Zebra Technologies Corporation · NASDAQ:ZBRA
Zebra Technologies — Robert W. Baird Growth Stock Conference 2009
19 slides from Zebra Technologies's conference presentation, May 12, 2009
Slide 1: Robert W. Baird Growth Stock Conference
Robert W. Baird Growth Stock Conference Zebra Technologies Corporation 12 May 2009 Chicago
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 Increase throughput throughput and and velocity velocity Measurable, Sustainable ROI Operate Operate more more Increase revenues efficiently efficiently Reduce operating expenses Avoid capital expenditures Increase Increase safety, safety, security security and and com
Slide 4: Attractive Global Trends
Attractive Global Trends • Globalization of the world economy – Supply chains are getting longer and more complex – Need for increased visibility • Increased focus on gaining efficiencies and cost reductions in supply chains – “Lean manufacturing” puts greater strain on the supply chain • Greater sa
Slide 5: Industry Leadership
Industry Leadership • Clear global industry and brand leadership – Product reliability and durability – Depth and breadth of product line – Technological and industry expertise • Diverse revenue base – Geographies – Products and solutions – Customers and end markets • Industry’s most comprehensive g
Slide 6: Financial Strength and Flexibility
Financial Strength and Flexibility • High profitability • Strong free cash flow generation – $112 million (2008) • Low capital investment requirements • $189 million in cash and investments • $100 million untapped line of credit • Zero debt 6
Slide 7: Navigating the Current Environment
Navigating the Current Environment • Reduced operating costs – 14% reduction in operating expense in 1Q09 vs. 1Q08 – Continuing investments in outsourcing and ERP to lower costs further and improve customer service • Investments to extend leadership – Products, channels, geographies and verticals •
Slide 8: Stockholder Value Creation
Stockholder Value Creation 1. Strengthen core with investments in new products, channels and geographic expansion 2. Move up the value chain 3. Enhance core with Zebra Enterprise Solutions Group (ESG) 4. Leverage operating model to enhance long-term profitability 5. Capital Allocation Discipline 8
Slide 9: 1. Invest in New Products and Solutions
1. 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 printers Desktop Printers management Value class card printers Card printer supplies software ; RFID
Slide 10: 1. Invest in Channels
1. Invest in Channels • Develop stronger ties with systems integrators • Introduce channel partners to new enterprise solutions • Build new channel relationships to reach targeted verticals 10
Slide 11: 1. Invest in International Expansion
1. Invest in International Expansion 2008 Sales Growth EMEA 12.1% LA 27.3% AP 35.0% Russia NA 6.8% Tot. 12.5% Brazil India China 11
Slide 12: 1. Focus on Vertical Markets
1. Focus on Vertical Markets Transport & Industrial Retail Government Aviation Manufacturing Logistics Healthcare Manufacturing Mobile Aerospace & Maritime Workforce Defence 12
Slide 13: 2. Move up the Value Chain
2. Move up the Value Chain Schedule How can we use it, Plan Software Optimize Optimize Analyze move it better? Automate • Integrated Monitor and unified Manage Manage Control / Direct (manual) solution Alert Services Report • Deep vertical expertise Visualize / Map (RT, historical) Integrate (multip
Slide 14: 3. Enhance Core With Enterprise Solutions
3. Enhance Core With Enterprise Solutions • Uniquely positioned as the only consolidated and well capitalized company in its space – Small, fragmented and often under-capitalized competition – Customers trust Zebra to provide and support business- critical solutions for the long term • Good underlyi
Slide 15: Enterprise Solutions
Enterprise Solutions Supply Chain Manufacturing Operations Node Execution Management Business Operations Solutions Marine TOS Solutions to accelerate and streamline the Material Flow process of moving assets through a facility or workflow Yard Management WIP Tracking Vehicle Tracking Equipment Manag
Slide 16: 4. Leveraging the Operating Model
4. Leveraging the Operating Model • Reduced operating expenses – Structural changes to drive greater efficiency • Supply chain outsourcing project – Increase gross margin 2.5-3 percentage points beginning in 2010 – Deliver better customer service – Lowers capital intensity • ERP implementation – On
Slide 17: 5. Capital Allocation Discipline
5. 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
Slide 18: Investment Proposition
Investment Proposition • 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 18
Slide 19: Robert W. Baird Growth Stock Conference
Robert W. Baird Growth Stock Conference Zebra Technologies Corporation 12 May 2009 Chicago
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