Professional Documents
Culture Documents
“Adjusted Operating Cash Flow,” “Free Cash Flow,” and “Adjusted Free Cash Flow” are non-GAAP measures and should not be considered as a replacement for results in accordance with accounting principles generally
accepted in the U.S. (“GAAP”). These non-GAAP measures may not be comparable to similarly-titled measures reported by other companies. The primary limitation of these measures are that they exclude the financial
impact of items that would otherwise either increase or decrease our reported results. These limitations are best addressed by using these non-GAAP measures in combination with the most directly comparable GAAP
measures in order to better understand the amounts, character and impact of any increase or decrease in reported amounts. The following provides additional information regarding these non-GAAP measures:
Adjusted Operating Cash Flow - Adjusted operating cash flow information reflects operating cash flow under GAAP excluding a $500 million voluntary, debt-funded U.S. pension contribution in the first quarter 2018. The
Company has excluded the impact of this contribution because the company believes that this item does not reflect expected future operating cash flows and does not contribute to a meaningful evaluation of the
company's current operating cash flow performance or comparisons to the company's past operating cash flow performance.
Free Cash Flow - Operating Cash Flow minus capital expenditures. We believe Free Cash Flow provides useful information to investors as it provides insight into the primary cash flow metric used by management to
monitor and evaluate cash flows generated from our operations. This measure is also used as a component of incentive compensation.
Adjusted Free Cash Flow - Free Cash Flow excluding a $500 million voluntary, debt-funded U.S. pension contribution in the first quarter 2018. The Company has excluded the impact of this contribution because the
company believes that this item does not reflect expected future free cash flows and does not contribute to a meaningful evaluation of the company's current free cash flow performance or comparisons to the
company's past free cash flow performance.
MOTOROLA, MOTOROLA SOLUTIONS and the Stylized M Logo are trademarks or registered trademarks of Motorola Trademark Holdings, LLC and are used under license.
All other trademarks are the property of their respective owners. ©2020 Motorola Solutions, Inc. All rights reserved
SAFE HARBOR
A number of forward-looking statements will be made during this presentation. Forward-looking statements are any statements that are not historical facts. These
forward-looking statements are based on the current expectations of Motorola Solutions, and we can give no assurance that any future results or events discussed in
these statements will be achieved. Any forward-looking statements represent our views only as of today and should not be relied upon as representing our views as of
any subsequent date. Forward-looking statements are subject to a variety of risks and uncertainties that could cause our actual results to differ materially from the
statements contained in this presentation.
Information about factors that could cause, and in some cases have caused, such differences can be found on pages 10 through 22 in Item 1A of Motorola Solutions’
2019 Annual Report on Form 10-K, page 34 in Item 1A of Motorola Solutions’ 2020 First Quarter Report on Form 10-Q, and in our other SEC filings available for free on
the SEC’s website at www.sec.gov, and on Motorola Solutions’ website at www.motorolasolutions.com/investor
This presentation was updated on the 21st day of August, 2020. The content of this presentation contains time-sensitive information that is accurate only as of the time
hereof. If any portion of this presentation is rebroadcast, retransmitted or redistributed at a later date, Motorola Solutions will not be reviewing or updating the material
that is contained herein.
Non-GAAP Statements: Where we have used non-GAAP financial measures, reconciliations to the most comparable GAAP measure are provided, along with a disclosure
on the usefulness of the non-GAAP measure, in the appendix of this presentation. These measures include “Adjusted Operating Cash Flow,“ “Free Cash Flow,” and
“Adjusted Free Cash Flow.“
MOTOROLA, MOTOROLA SOLUTIONS and the Stylized M Logo are trademarks or registered trademarks of Motorola Trademark Holdings, LLC and are used under license.
All other trademarks are the property of their respective owners. ©2020 Motorola Solutions, Inc. All rights reserved
MSI ESTIMATED ADDRESSABLE MARKET
2020 SAM
$11B
Motorola Solutions has created
the mission critical ecosystem
built for Public Safety &
Enterprise. Its four platforms
$16B $6B
create the lifeline your safety and
mission depend on.
Our mission is to never stop
advancing that lifeline.
$6B
72%
$7.9B 28%
5
WHO WE SERVE
WE PROVIDE THE LIFELINE THAT KEEPS YOU SAFE AND EFFECTIVE
HELPING GOVERNMENTS CREATE SAFER CITIES AND ENTERPRISES BUILD STRONGER BUSINESSES
MINING, OIL
FIRE UTILITIES
POLICE & GAS
NATIONAL
EMERGENCY EDUCATION MANUFACTURING
SECURITY
MEDICAL
6
SEGMENTS
7
PRODUCTS & SYSTEM INTEGRATION
Mission-Critical Voice | Devices, Infrastructure, and Integration
Video Security and Analytics | Devices and Video Solutions
$5.1 $5.3
8
MISSION-CRITICAL COMMUNICATIONS
MISSION CRITICAL VOICE…LEADER IN PUBLIC SAFETY COMMUNICATIONS
MISSION CRITICAL VOICE PUBLIC SAFETY BROADBAND
PROFESSIONAL
ASTRO DIMETRA COMMERCIAL PUBLIC SAFETY LTE
• Based on APCO P25 standard • Based on TETRA standard • Collection of standards • Broadband for rich media
• Used globally content
• 43 statewide & provincial systems • Primarily EMEA
• Systems & “peer to peer” • Data sharing to and from
• Primarily North America • Over 30 nationwide
command centers
deployments
9
MISSION-CRITICAL COMMUNICATIONS
HELPING PEOPLE BE THEIR BEST IN THE MOMENTS THAT MATTER
MISSION-CRITICAL MEANS BUILT TO STANDARD
POWER RESILIENCE PURPOSE-BUILT DEVICES
● Fewer sites are easier to ● Network design keeps ● Built to withstand harsh
manage, especially in a teams connected, even if conditions.
crisis or when the power no network is available. ● Long battery life so users can
goes out. ● Proven to withstand make it through a long shift.
● 5W radios save critical hurricane force, unlike ● Peer-to-peer communication
seconds with the power for other communications keeps users talking in remote
direct communication. which fail. or low coverage locations.
10
MISSION-CRITICAL COMMUNICATIONS
APX NEXT...PUBLIC SAFETY’S FIRST SMART RADIO
SMARTLOCATE
ViQi SMARTPROGRAMMING
SMARTCONNECT
11
VIDEO SECURITY & ANALYTICS
BRINGING ATTENTION TO WHAT MATTERS MOST
12
VIDEO SECURITY & ANALYTICS
BRINGING ATTENTION TO WHAT MATTERS MOST
VIDEO ANALYTICS | HIGH PRIORITY USE CASES
UNUSUAL MOTION
LICENSE PLATE APPEARANCE
DETECTION
RECOGNITION SEARCH
Identify a car traveling in the
Detect blacklisted cars Find a missing child at a
wrong direction
entering a school theme park
13
SOFTWARE & SERVICES
Software | Command Center Software, Video Analytics, and Data Platform for Analytics
Services | Managed and Support Services
$2.6
$2.2
Software Services
14
MOTOROLA SOLUTIONS SOFTWARE SUITE
COMMANDCENTRAL
An end-to-end software suite built for public safety.
Citizen 911 Call Taker Dispatcher Intelligence Frontline Records Crime Corrections
Analyst Responder Specialist Analyst Officer
COMMANDCENTRAL PLATFORM
15
CURRENT STATE
COMMAND CENTER SOFTWARE
SAVE SECONDS. SAVE LIVES.
16
OUR SOLUTION
COMMAND CENTER SOFTWARE
VIDEO SECURITY & ANALYTICS
VIDEO INTELLIGENCE APPEARANCE SEARCH
Deep learning AI locates specific
FOCUS OF ATTENTION persons or vehicles of interest, directed
through simple physical descriptions.
ACCESS CONTROL
Manage access to restricted areas using
a role-based system, with instant
No Motion Motion Detected Analytic Event Alarm Camera Down
detection of people at access points.
18
SERVICES
MANAGED AND SUPPORT
185 mph 7 trillion 50% cell sites $50 billion 6.5 million 90% buildings
winds for 37 hrs watts of energy inoperable cost of damage people evacuated damaged
19
SERVICES
DELIVERED THROUGH CENTRALIZED OPERATIONS
SERVICE DESK & MONITORING & CYBERSECURITY
TECHNICAL SUPPORT MANAGEMENT SERVICES SERVICES
20
SERVICES
GLOBAL MONITORING & MANAGEMENT
4M
USERS UNDER OUR SCHAUMBURG, IL UNITED KINGDOM NORWAY DENMARK AUSTRIA
MANAGED SERVICE
20M
EVENTS MONITORED
EACH DAY
13K
SYSTEMS
INSTALLED
1M
CUSTOMERS ACROSS
100 COUNTRIES
23
BACKLOG
$11.3
($B) $10.4
GROWTH DRIVERS
•Software and Services multi-year agreements
•LMR system upgrades
•North America & EMEA
PRODUCTS & SI
24
STRONG CASH GENERATION
ADJUSTED OPERATING CASH FLOW ($B) ADJUSTED FREE CASH FLOW ($B) 2
1
Operating Cash Flow for 2018 is adjusted to exclude the impact of $500M contribution to the pension plan.
2
Adjusted Free Cash Flow, also a non-GAAP financial measure, is defined as Operating Cash Flow less Capital Expenditures and adjusted to exclude the impact of $500M contribution to the pension plan for 2018. For more information, including the definition and the
reconciliation of this measure to our GAAP financials, see the Appendix to this presentation.
25
CAPITAL ALLOCATION
BASED ON OPERATING CASH FLOW
CAPEX
20% Asset light model
SHARE REPURCHASES
OR ACQUISITIONS 50% ONGOING
$13B
of share repurchases, retiring 50% of
ANNUAL DIVIDEND
share float at average cost of $60.48 30%
since 2011 Double digit annual increases since 2011
~$4B
of acquisitions since 2011
● Investment grade
● Cash & equivalents $1.3B
● $1.7B committed undrawn capacity
remaining on revolver
● High-quality receivables of $1.1B
● Balanced debt maturity
*As of June 30, 2020
27
MSI PATENT PORTFOLIO EVOLUTION
~1,500
Total Patents Pending
No. 92 SUSTAINABILITY
MANAGEMENT TOP 250 NORTH AMERICAN INDEX
-- --
SUPPLY CHAIN
RESPONSIBILITY EMPLOYEE VOLUNTEERISM GENDER-EQUALITY BEST PLACES
2019: 65K HOURS INDEX TO WORK
2019: 218 supplier
assessments
29
SUPPLEMENTAL NON-GAAP MEASURES
P&L Motorola Solutions, Inc. and Subsidiaries Non-GAAP Trend
(In millions, except per share amounts)
30
SUPPLEMENTAL NON-GAAP MEASURES
CASH FLOW
31