Q2 2008 Motorola, Inc. Earnings Conference Call Presentation

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Q2 2008 Motorola, Inc. Earnings Conference Call Presentation

  1. 1. Motorola Q2 2008 Earnings Conference Call July 31, 2008 Q2 2008 Earnings Release- July 31, 2008 Slide - 1 MOTOROLA and the Stylized M Logo are registered in the US Patent & Trademark Office. .
  2. 2. Dean Lindroth Investor Relations Officer Q2 2008 Earnings Release- July 31, 2008 Slide - 2 MOTOROLA and the Stylized M Logo are registered in the US Patent & Trademark Office. .
  3. 3. 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 and there can be no assurance that such expectations will prove to be correct. Because forward-looking statements involve risks and uncertainties, Motorola’s actual results could differ materially from these statements. Information about factors that could cause, and in some cases have caused, such differences can be found in this morning’s press release, on pages 18 through 27 in item 1A of Motorola’s 2007 Annual Report on Form 10-K and in Motorola’s other SEC filings. This presentation is being made on the 31st of July 2008. 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 will not be reviewing or updating the material that is contained herein. MOTOROLA and the Stylized M Logo are registered in the US Patent & Trademark Office. All other product or service names are the property of their respective owners. © Motorola, Inc. 2008 Slide -- 3 Q2 2008 Earnings Release- July 31, 2008 MOTOROLA and the Stylized M Logo are registered in the US Patent & Trademark Office.
  4. 4. Greg Brown President and Chief Executive Officer Q2 2008 Earnings Release- July 31, 2008 Slide - 4 MOTOROLA and the Stylized M Logo are registered in the US Patent & Trademark Office. .
  5. 5. Q2 2008 Earnings Call Q2 2008 Earnings Release- July 31, 2008 Slide - 5 MOTOROLA and the Stylized M Logo are registered in the US Patent & Trademark Office. .
  6. 6. Paul Liska Chief Financial Officer Q2 2008 Earnings Release- July 31, 2008 Slide - 6 MOTOROLA and the Stylized M Logo are registered in the US Patent & Trademark Office. .
  7. 7. Q2 2008 Financial Results Q2 ($ in Millions) Q1 Q2 GAAP 2008 2008 2007 $ 8,082 Sales $ 7,448 $ 8,732 $ 5 Operating Earnings (Loss) $ (269) $ (158) 0.1% Operating Margin -3.6% -1.8% $ 4 Earnings (Loss) from Continuing Operations $ (194) $ (38) $ 0.00 EPS from Continuing Operations $ (0.09) $ (0.02) Excluding Highlighted Items $ 82 Operating Earnings (Loss) $ (140) $ (32) 1.0% Operating Margin -1.9% -0.4% $ 53 Earnings (Loss) from Continuing Operations $ (104) $ 41 $ 0.02 EPS from Continuing Operations $ (0.05) $ 0.02 Slide -- 7 Q2 2008 Earnings Release- July 31, 2008 MOTOROLA and the Stylized M Logo are registered in the US Patent & Trademark Office.
  8. 8. Cash Flow and Net Cash Q2 Q1 Q2 2008 ($ in Millions) 2008 2007 $ 4 Earnings (Loss) from Continuing Operations $ (194) $ (38) 186 Depreciation, Amortization, Deferred Income Taxes and Other, net (16) 132 14 Change in Assets and Liabilities, net (133) (129) $ 204 Net Cash provided by (used for) Operating Activities $ (343) $ (35) ($ in Billions) $ 7.8 Cash* $ 7.7 $ 8.7 (0.2) Short-term & Current Debt** (0.2) (1.8) (4.0) Long-Term Debt (4.0) (2.6) (4.2) Total Debt (4.2) (4.4) $ 3.6 Net Cash $ 3.5 $ 4.3 *Cash and cash equivalents, Sigma Fund (current and non-current) and Short-term investments **Notes payable and current portion of long-term debt Slide -- 8 Q2 2008 Earnings Release- July 31, 2008 MOTOROLA and the Stylized M Logo are registered in the US Patent & Trademark Office.
  9. 9. Mobile Devices Financials Q2 ($ in Millions) Q1 Q2 GAAP 2008 2008 2007 $ 3,334 Sales $ 3,299 $ 4,273 $ (346) Operating Loss $ (418) $ (332) -10.4% Operating Margin -12.7% -7.8% Excluding Highlighted Items $ (340) Operating Loss $ (347) $ (264) -10.2% Operating Margin -10.5% -6.2% 28.1 Units (M) 27.4 35.5 9.5% Market Share (Estimate) 9.5% 13.5% Slide -- 9 Q2 2008 Earnings Release- July 31, 2008 MOTOROLA and the Stylized M Logo are registered in the US Patent & Trademark Office.
  10. 10. Portfolio Segmentation E8 NEW NEW NEW U9 E8 V950 Z6w Z10 Q9c lime Z9 Q9c W156 / W161 W181 W160 NEW Q700 W5 Z8 Z6 V8 W755 V9 Q9h W230 W377 W375 NEW Z6m Z6tv Q9m W510 K1m A810 W270 NEW NEW A1800 W260 W362 W175 / NEW NEW W180 NEW ZN5 A1600 i877 V750 V3s Z8m Everyday Multitask Feature Multimedia/Music Communications Slide -- 10 Q2 2008 Earnings Release- July 31, 2008 MOTOROLA and the Stylized M Logo are registered in the US Patent & Trademark Office.
  11. 11. Home and Networks Mobility Financials Q2 ($ in Millions) Q1 Q2 GAAP 2008 2008 2007 $ 2,738 Sales $ 2,383 $ 2,564 $ 245 Operating Earnings $ 153 $ 191 8.9% Operating Margin 6.4% 7.4% Excluding Highlighted Items $ 248 Operating Earnings $ 173 $ 207 9.1% Operating Margin 7.3% 8.1% Slide -- 11 Q2 2008 Earnings Release- July 31, 2008 MOTOROLA and the Stylized M Logo are registered in the US Patent & Trademark Office.
  12. 12. Home and Networks Mobility Highlights • Record Home sales • Improved operating margin • Global market leader in digital video solutions • Leading position in GPON Slide -- 12 Q2 2008 Earnings Release- July 31, 2008 MOTOROLA and the Stylized M Logo are registered in the US Patent & Trademark Office.
  13. 13. Enterprise Mobility Solutions Financials Q2 ($ in Millions) Q1 Q2 GAAP 2008 2008 2007 $ 2,042 Sales $ 1,806 $ 1,920 $ 377 Operating Earnings $ 250 $ 303 18.5% Operating Margin 13.8% 15.8% Excluding Highlighted Items $ 380 Operating Earnings $ 259 $ 302 18.6% Operating Margin 14.3% 15.7% Slide -- 13 Q2 2008 Earnings Release- July 31, 2008 MOTOROLA and the Stylized M Logo are registered in the US Patent & Trademark Office.
  14. 14. Enterprise Mobility Solutions Highlights • Strong international demand • Improved operating margin • Solid growth from MOTOTRBO product line • Announced the MC75 and two TETRA radios • Announced intent to acquire AirDefense Slide -- 14 Q2 2008 Earnings Release- July 31, 2008 MOTOROLA and the Stylized M Logo are registered in the US Patent & Trademark Office.
  15. 15. Q&A Participants Greg Brown Paul Liska President and Chief Financial Officer Chief Executive Officer Dean Lindroth Investor Relations Officer Slide -- 15 Q2 2008 Earnings Release- July 31, 2008 MOTOROLA and the Stylized M Logo are registered in the US Patent & Trademark Office.
  16. 16. 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 and there can be no assurance that such expectations will prove to be correct. Because forward-looking statements involve risks and uncertainties, Motorola’s actual results could differ materially from these statements. Information about factors that could cause, and in some cases have caused, such differences can be found in this morning’s press release, on pages 18 through 27 in item 1A of Motorola’s 2007 Annual Report on Form 10-K and in Motorola’s other SEC filings. This presentation is being made on the 31st of July 2008. 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 will not be reviewing or updating the material that is contained herein. MOTOROLA and the Stylized M Logo are registered in the US Patent & Trademark Office. All other product or service names are the property of their respective owners. © Motorola, Inc. 2008 Slide -- 16 Q2 2008 Earnings Release- July 31, 2008 MOTOROLA and the Stylized M Logo are registered in the US Patent & Trademark Office.
  17. 17. Use of Non-GAAP Measures In addition to the GAAP results provided during this conference call, Motorola has presented certain non- GAAP measurements. Motorola has provided these non-GAAP measurements as a measure to help investors better understand its core operating performance, enhance comparisons of Motorola’s core operating performance from period to period and to allow better comparisons of Motorola’s operating performance to that of its competitors. Among other things, the Company’s management uses these operating results, excluding the identified items, to evaluate the performance of its businesses and to evaluate results relative to incentive compensation targets. Management uses operating results excluding these items because they believe this measure enables them to make better period-to-period evaluations of the financial performance of its core business operations. There are inherent limitations in the use of operating results excluding these items because the company’s GAAP results do not include the impact of these items. The non-GAAP measures are intended only as a supplement to the comparable GAAP measures and the company compensates for the limitations inherent in the use of non-GAAP measures by using GAAP measures in conjunction with the non-GAAP measures. As a result, investors should consider these non-GAAP measures in addition to, and not in substitution for, or as superior to, measures of financial performance prepared in accordance with GAAP. Details of these items and reconciliations of the non-GAAP measurements provided during this call to GAAP measurements can be found on Motorola’s website at www.motorola.com/investor. Slide -- 17 Q2 2008 Earnings Release- July 31, 2008 MOTOROLA and the Stylized M Logo are registered in the US Patent & Trademark Office.

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