Dean Lindroth
Corporate Vice President,
Investor Relations
Safe Harbor
A number of forward-looking statements will be made during this presentation. Forward-
looking statements are ...
Ed Zander
Chairman,
Chief Executive Officer
Stu Reed
President,
Mobile Devices
Key Topics

 Market Share vs. Margin


 Product Portfolio/Roadmap


 Inventory Situation


 Double-Digit Operating Margins...
Market Environment
Margin Growth

                     Multimedia
Mass Market
Feature Phones       Productivity
          ...
Revenue
Revenue $B                          1H07 – By Region


                              2H
                   $28.4B
...
Strategy




 Still all about PROFITABLE market share
Our Priorities

We will be the premier supplier of
mobile devices and mobile experiences
to customers globally.

 THREE FO...
Enhance
the Portfolio
Ever Changing Regional +
Segment Profit Pools



Mass Market        Feature Phone       Multimedia             Productivit...
New Portfolio



Mass Market   Feature Phone   Multimedia       Productivity




  W Series       RAZR2          ROKR Z6 /...
New Portfolio Feedback/Response

                Feature Phone

                          “one of the best voice phones
  ...
New Portfolio Feedback/Response

                Multimedia

                             “The Z8 movie phone is a
       ...
New Portfolio Feedback/Response

                Productivity

                               “…a strong challenge to RIM’...
More To Come…Fall 2007



Mass Market    Feature Phone   Multimedia      Productivity




         Innovation is alive and...
Platforms Enable Quick Alignment
Efficient Software and Silicon Vision

                              SILICON DIRECTION

 ...
Go-to-Market
Effectiveness
Go-To-Market Effectiveness


                             Focused, prioritized
Focused, prioritized
                      ...
Go-To-Market Effectiveness


                             Focused, prioritized
Focused, prioritized
                      ...
Go-To-Market Effectiveness


                             Focused, prioritized
Focused, prioritized
                      ...
Differentiated Channel Enablement
              FROM                      TO


              Collaborative planning/   Mot...
Go-To-Market Effectiveness


                             Focused, prioritized
Focused, prioritized
                      ...
Retail Channel Management
Example: IT

FROM                TO

In-house system     Scalable commercial system



Data coll...
Drive Efficiency
in the Business
Drive Efficiency in the Business


                              Value-chain
Clarity and      Defined,
                   ...
What’s Next?

                                        Tomorrow                    Future
              Today
             ...
Key Topics

 Market Share vs. Margin


 Product Portfolio/Roadmap


 Inventory Situation


 Double-Digit Operating Margins...
Why Motorola and Mobile Devices?

                    Experience-driven portfolio to
                    provide more bala...
Gene Delaney
President,
Government & Public Safety


Kathy Paladino
President,
Enterprise
Gene Delaney
President,
Government & Public Safety
Enterprise Mobility Solutions
Enterprise Mobility Solutions
                    Complementary product portfolios, customer segments
                    ...
World Class Customers



              Retail &
                         Transportation   Utilities   Manufacturing   Othe...
Enterprise Mobility Solutions


Market of over $20B annually




First half 2007 revenues of $3.6B




Operating margin 12%
Government and Public Safety
Leadership


                                                                  Mobile Data
   Business                    ...
Leadership




 1939   1944   1950   1964   1979   1981   1999   2005
Leadership




 1939               2007




             2007
End-to-End Portfolio                            Fire &              Civil
                                             Pol...
End-to-End Portfolio

           TECHNOLOGY THAT’S SECOND NATURE


           Seamless
           Connectivity
           ...
End-to-End Portfolio

           TECHNOLOGY THAT’S SECOND NATURE


           Seamless
           Connectivity
           ...
Profitable Growth

Total Revenue $B

                    $5.2B
                                    2H
           $4.8B
   ...
Revenues

1H07 - By Solution

                      Applications
                      5%
                                ...
Revenues

1H07 - By Region
             Asia
             7%
 EMEA
 23%

                    North
                    Ame...
Attractive Market

                                     Market Drivers
Mission Critical Market
                           ...
Winning
Winning Today
                                          Motorola
          Today
                                         ...
Winning Tomorrow
                        Tomorrow                         Motorola
                        (2008-2009)    ...
Winning the Future

                               Future
                               (2010+)

                        ...
Winning the Future
                                           Tomorrow                          Future
          Today
   ...
Government and Public Safety

 Leadership

 End-to-End Portfolio

 Profitable Growth

 Attractive Markets

 Market Leader ...
Enterprise
Kathy Paladino
President, Enterprise
Enterprise



End-to-End Enterprise Mobility

White Collar and Blue Collar

Indoors and Outdoors

Motorola + Symbol + Good
Our Customers
The IT Evolution


        Age of Centralized                        Age of Personal
                                     ...
Delivering Enterprise Anywhere to
Enterprises Everywhere!



        Retail & Wholesale            Manufacturing          ...
End-to-End Solutions

                     Connect          Communicate            Control
  Capture

Mobile              ...
Our Go-to-Market Partners




Retail & Wholesale   Manufacturing   Transportation   Healthcare
Profitable Growth

           Total Revenue $B                                                                        2H
 ...
Revenue

Key Drivers               1H07 – By Region


Refresh & new business
investment

                                 ...
Revenue

Business Mix             1H07 – By Product


                                                       10%
Margin ri...
Expanding Market

                                                        Key Drivers
Total Available Market

            ...
Success in the Enterprise
Enterprise Opportunity

Growing TAM
Unique position
Solid growth & margins

Our Priorities

Cust...
Enterprise Mobility Solutions




                                69
Enterprise Mobility Solutions

Growing TAM                     Industry
                                Leadership




Mid...
Dan Moloney
President,
Home & Networks Mobility
Home & Networks Mobility

 Market Landscape

 Newly Aligned End-to-End Portfolio

 Delivery and Performance

 Consumer/Mar...
Market Landscape –
 Customer and Technology Convergence
        At Home         Mobile /        Internet
                 ...
Market Landscape –
 Customer and Technology Convergence
        At Home              Mobile /        Internet       1
    ...
End-to-End Solutions & Expertise
                                      Customer         Customer
                  Access ...
Home & Networks Mobility Performance
Revenue $B

                       $9.2B
               $9.0B
 $8.2B
                ...
Revenue – Home
Revenue $B                             1H07 - By Solution

                                                ...
Revenue – Networks
Revenue $B                             1H07 - By Solution
                                             ...
The Next Wave –
Media Mobility
Consumers Demanding Media Mobility

Mainstream                 Cutting Edge        Tomorrow
                              ...
Driver #1:
Video Explosion
Video Explosion
Trend
Total HD                           Total HD STB &
Households                         DVR Shipments
 ...
Video Explosion
Motorola Solutions                              Acquisition      Customer    Solution


IPTV


MPEG-4 Enco...
Driver #2:
From Prime Time
To ‘My Time’
From Prime Time To ‘My Time’
Trend
Cable                 VOD                     DVR                     Impact
Advertisin...
From Prime Time To ‘My Time’
Motorola Solutions                        Acquisition     Customer    Solution

Personalized ...
Driver #3:
Broadband On
The Go
Broadband On The Go
Trend
Mobile Video          Mobile                                      Impact
                       ...
Broadband On The Go
Motorola Solutions                               Acquisition   Customer   Solution



Leadership in Wi...
Motorola WiMAX Leadership
     30 Active Trials Worldwide
     20 Additional Trials Pending                               ...
The Opportunity
Market Opportunity –
Home and Networks Mobility
TAM $B


                                                                 ...
Focused Approach
Expanded Leadership in End-to-End Video
Next generation technology and applications
IPTV and MPEG4
Global...
Keys to Success

Deliver           Manage and
next-generation   exploit the portfolio
solutions




Exceed customer   Deli...
Greg Brown
President,
Chief Operating Officer
Our Markets

Industry Sales $B

                                $328B
   CAGR 8%
                        $302B
           ...
Our Financial Performance

Total Revenue $B                          1H07 - By Region

                                   ...
Our Progress

Customer-Focused Structure

New Operating Leadership Team

Gross Margin Expansion

Lower Cost Structure

Red...
Pillars for Sustainable Growth

 Innovation
                           Economic
                          Value Drives
 Op...
Challenges



Consistent Innovation and Financial
Performance in MDB

MDB Silicon and Software Platforms

iDEN Decline

GS...
Leveraging Our Strengths

          Brand and Global Distribution

          Design Leadership

          Comprehensive Vi...
Goals

Sustainable Profitability in MDB

Expand MDB Product Portfolio

Improve Operating Margins

Lower Cost Structure

Le...
Operating Business Model ─ Segments
                Mid-to-high single-digit                                              ...
“The quality of our
 expectations determines
the quality of our action.”
          - André Godin
Tom Meredith
Executive Vice President,
Chief Financial Officer
Value is created when a company
performs at a level IN EXCESS OF WACC
Agenda

Balance         Speed             Agility




Liquidity       Cash Conversion   Business Model
Profitability   Val...
Balance
Delivering Economic Value
All About Delivering Balance and Cash Conversion Cycle




                Liquidity




Profita...
Delivering Economic Value
All About Delivering Balance and Cash Conversion Cycle

                                     Ope...
Delivering Economic Value
All About Delivering Balance and Cash Conversion Cycle

                                     Ope...
Delivering Economic Value
All About Delivering Balance and Cash Conversion Cycle

                                     Sal...
Speed
Cash Conversion Cycle




DSO + DSI - DPO = CCC
Cash Conversion Cycle
GAAP


                          80
 Days Sales
                                                    ...
Cash Conversion Cycle
GAAP

                                       90
Mobile Devices                         80
          ...
Cash Conversion Cycle
The Best of the Best

                        30
Dell
                        20
                   ...
Cash Conversion Cycle




                                     85M
                                 $
 Improving Motorola’...
Cash Conversion Cycle


      Improving Motorola’s 2007 CCC to:

 25 Days           0 Days      -25 Days

      2.0B      ...
Value Chain

            1.6 Months                               0.6 Months                                   3.3 Months
...
Value Chain
Assembly by EMS



                                                                                           ...
Linearity – Enterprise Mobility (EMB)

What Does Linearity Mean?
To evenly distribute over the period measured (quarter)
O...
Agility
Business Model




  Sales    Gross    R&D as    SG&A as     OE as
  Growth   Margin   % Sales    % Sales    % Sales



 8...
Operating Business Model ─ MOT

For 2008, expect:
» CCC of 20-30 days

» Profitable in all businesses

» Significantly imp...
Q&A
quot;Winning isn't everything,
   but wanting to is.quot;
         - Vince Lombardi
Safe Harbor
A number of forward-looking statements will be made during this presentation. Forward-
looking statements are ...
	2007 Financial Analyst Meeting Presentation Please Note: This is a large document. Allow ample time for
	2007 Financial Analyst Meeting Presentation Please Note: This is a large document. Allow ample time for
	2007 Financial Analyst Meeting Presentation Please Note: This is a large document. Allow ample time for
	2007 Financial Analyst Meeting Presentation Please Note: This is a large document. Allow ample time for
	2007 Financial Analyst Meeting Presentation Please Note: This is a large document. Allow ample time for
	2007 Financial Analyst Meeting Presentation Please Note: This is a large document. Allow ample time for
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2007 Financial Analyst Meeting Presentation Please Note: This is a large document. Allow ample time for

  1. 1. Dean Lindroth Corporate Vice President, Investor Relations
  2. 2. 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 on pages 16 through 24 in item 1A of Motorola’s 2006 Annual Report on Form 10-K and in Motorola’s other SEC filings. This presentation is being made on the 7th of September 2007. 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. 2007
  3. 3. Ed Zander Chairman, Chief Executive Officer
  4. 4. Stu Reed President, Mobile Devices
  5. 5. Key Topics Market Share vs. Margin Product Portfolio/Roadmap Inventory Situation Double-Digit Operating Margins Why Motorola and Mobile Devices?
  6. 6. Market Environment Margin Growth Multimedia Mass Market Feature Phones Productivity Large and growing market Shift towards experiences Rapidly migrating profit zones Punishing without a comprehensive, constantly refreshed portfolio 2007 2008 2009 2010 Source: Motorola
  7. 7. Revenue Revenue $B 1H07 – By Region 2H $28.4B 1H Latin $14.8B America Asia Pac 16% $21.5B 21% $12.2B $17.1B $9.0B $13.6B EMEA $9.7B $9.3B 16% $8.1B North America 47% 2006 2007 2004 2005
  8. 8. Strategy Still all about PROFITABLE market share
  9. 9. Our Priorities We will be the premier supplier of mobile devices and mobile experiences to customers globally. THREE FOCUS AREAS: Enhance the Product Portfolio Silicon/Software Platforming Go-To-Market Effectiveness Drive Efficiency in the Business
  10. 10. Enhance the Portfolio
  11. 11. Ever Changing Regional + Segment Profit Pools Mass Market Feature Phone Multimedia Productivity Communication Iconic Optimized: voice + Mobile office one extreme connectivity for Centric, simple High-end feature experience prosumers and feature sets enabled businesses Converged: voice + multiple experiences Organization, investments, and brand franchises aligned to margin pools
  12. 12. New Portfolio Mass Market Feature Phone Multimedia Productivity W Series RAZR2 ROKR Z6 / Z8 Q8 / Q9h
  13. 13. New Portfolio Feedback/Response Feature Phone “one of the best voice phones this year…” Editors Choice “ We came. We saw. We fell in love.” “ we broke out the stopwatch” RAZR2 beats iPhone on broadband speeds “ RAZR is reborn...a new level of usability”
  14. 14. New Portfolio Feedback/Response Multimedia “The Z8 movie phone is a blockbuster…a big screen idol.” MOTO S9 “kick out great waterproof sound” Top 100 hottest gadgets “MOTOROKR is not just a few letters, it is spirit that symbolizes freedom and taste.” A musical smartphone, aiming to increase the cool quotient
  15. 15. New Portfolio Feedback/Response Productivity “…a strong challenge to RIM’s expanding family of Blackberries…” Editors Choice “(Q9 h) ”Revenge of the blackberry killer…” “… an excellent full QWERTY keypad.” quot;Q9 beats them all on the strength of its keypad alone. It's one of the best we have ever used.quot;
  16. 16. More To Come…Fall 2007 Mass Market Feature Phone Multimedia Productivity Innovation is alive and well at Motorola!
  17. 17. Platforms Enable Quick Alignment Efficient Software and Silicon Vision SILICON DIRECTION Multisource on a controlled architecture Multisource = competitiveness Controlled architecture = flexibility SOFTWARE DIRECTION Single, open platform for mid/high tier Single, open platform for lower tiers Short term resource shift to user interface Short term benefit from aggressively managed spend on “end of life” platforms
  18. 18. Go-to-Market Effectiveness
  19. 19. Go-To-Market Effectiveness Focused, prioritized Focused, prioritized regional engagement channel engagement Dramatic operational Differentiated channel improvement in retail enablement FOCUS ON SELL-THRU, NOT SELL-IN
  20. 20. Go-To-Market Effectiveness Focused, prioritized Focused, prioritized regional engagement channel engagement Dramatic operational Differentiated channel improvement in retail enablement FOCUS ON SELL-THRU, NOT SELL-IN
  21. 21. Go-To-Market Effectiveness Focused, prioritized Focused, prioritized regional engagement channel engagement Dramatic operational Differentiated channel improvement in retail enablement FOCUS ON SELL-THRU, NOT SELL-IN
  22. 22. Differentiated Channel Enablement FROM TO Collaborative planning/ Motorola owned inventory forecasting and OPERATORS Pay on consumption replenishment (CPFR) Sell-out CPFR to distributor Direct-to-retail Direct store delivery RETAIL Sell-in Sell-in with CPFR Ship direct / build to order DISTRIBUTOR
  23. 23. Go-To-Market Effectiveness Focused, prioritized Focused, prioritized regional engagement channel engagement Dramatic operational Differentiated channel improvement in retail enablement FOCUS ON SELL-THRU, NOT SELL-IN
  24. 24. Retail Channel Management Example: IT FROM TO In-house system Scalable commercial system Data collection Data collection + validation End-to-end analytics Limited analytics Real-time reporting Daily reporting
  25. 25. Drive Efficiency in the Business
  26. 26. Drive Efficiency in the Business Value-chain Clarity and Defined, extension accountability repeatable processes Variable Lower the cost-structure break-even
  27. 27. What’s Next? Tomorrow Future Today (2008-2009) (2010+) (2007) Music Presence Mobile Community Experiences Imaging Mobile TV Video Playback Video Editing Morphing UI Create + Share Mobile Search Fixed Mobile Convergence Web 2.0 Seamless 3G HSDPA, EVDO WiMAX Technology UMA LTE Bluetooth 4G Haptics WiFI Touchscreen Near-Field Communications Location-Based Services Application Services
  28. 28. Key Topics Market Share vs. Margin Product Portfolio/Roadmap Inventory Situation Double-Digit Operating Margins Why Motorola and Mobile Devices?
  29. 29. Why Motorola and Mobile Devices? Experience-driven portfolio to provide more balanced performance Progress on transition to optimized platform Focused, prioritized approach to enhance existing customer base More efficient technology team to lower break-even All the above, without mortgaging the future Tools to Execute: Talent, IP, Design/Innovation leadership, Brand
  30. 30. Gene Delaney President, Government & Public Safety Kathy Paladino President, Enterprise
  31. 31. Gene Delaney President, Government & Public Safety
  32. 32. Enterprise Mobility Solutions
  33. 33. Enterprise Mobility Solutions Complementary product portfolios, customer segments and distribution channels Government & Government Public Safety Mission Critical Public Safety Systems Devices Applications Services Enterprise Retail & Wholesale Energy & Utilities Business Critical Transportation Manufacturing Mobile Computing Warehousing Advanced Data Capture Healthcare Mobile Office Enterprise Networks
  34. 34. World Class Customers Retail & Transportation Utilities Manufacturing Other Government Wholesale
  35. 35. Enterprise Mobility Solutions Market of over $20B annually First half 2007 revenues of $3.6B Operating margin 12%
  36. 36. Government and Public Safety
  37. 37. Leadership Mobile Data Business Terminal DynaTAC 800x Pageboy II iDEN i600 Dispatch Radio Mobile Data Paging Cellular IDEN 2 Way Radio Solutions 1960’s 1970’s 1980’s 1990’s 2000 2010 2 Way Radio Semiconductor Cellular GSM Mobile Data Solutions Canopy Global System MC6800 ARDIS Network Mesh for Mobile HT220 Communications
  38. 38. Leadership 1939 1944 1950 1964 1979 1981 1999 2005
  39. 39. Leadership 1939 2007 2007
  40. 40. End-to-End Portfolio Fire & Civil Police Defense EMS Agency TECHNOLOGY THAT’S SECOND NATURE Seamless Connectivity Mission critical systems Services Real-time Information Mission critical applications In The Hands Of Users Mission critical devices
  41. 41. End-to-End Portfolio TECHNOLOGY THAT’S SECOND NATURE Seamless Connectivity Mission critical systems Services Technology that is second nature… Real-time Information Mission critical applications In The Hands Of Users Mission critical devices
  42. 42. End-to-End Portfolio TECHNOLOGY THAT’S SECOND NATURE Seamless Connectivity Mission critical systems …so first responders can focus on Services Real-time MISSION, not technology their Information Mission critical applications In The Hands Of Users Mission critical devices
  43. 43. Profitable Growth Total Revenue $B $5.2B 2H $4.8B $2.8B 1H $4.6B $2.6B $2.4B $2.6B $2.4B $2.2B $2.2B 2005 2006 2007 2004
  44. 44. Revenues 1H07 - By Solution Applications 5% Device Portfolio 50% Services 29% Systems 16%
  45. 45. Revenues 1H07 - By Region Asia 7% EMEA 23% North America 63% Latin America 7%
  46. 46. Attractive Market Market Drivers Mission Critical Market Homeland security … $11B interoperability $1.5B Double digit international $3.0B $8B+ growth … nationwide deals $1.0B $2.0B Video adoption … $6.5B broadband growth $5.0B Analog technology … Asia going digital EMEA Americas 2006 2010
  47. 47. Winning
  48. 48. Winning Today Motorola Today Results (2007) Analog Systems 92% customer satisfaction P25 1st to market with digital radio Tetra Fixed Data & Wi4 Portfolio Wins: Portugal, Ireland, Norway, Denmark Int’l award backlog at an all time high Network Defined Radios Device MotoTRBO 83% of U.S. Military bases Laptops Mobile Computing >$250M in annual WiBB revenues Video solution in 100 systems today Text Base Data Apps 87% statewide/province wide systems in North America Biometrics, location, CAD, RMS, E911, Video Services
  49. 49. Winning Tomorrow Tomorrow Motorola (2008-2009) Results P25 Phase II Systems Network State of Mississippi Tetra II Riverside, CA High Speed Data ISSI (System Interoperability) Prince George’s Co, MD Next Generation Radios Device Independence, MO Multi-mode Multi-band Norway Los Angeles PD Providence, RI Imaging Apps Next Gen 911 Multi-Network Routing Services … Break/Fix | Integration | Managed
  50. 50. Winning the Future Future (2010+) Mission Critical Broadband Systems Mission Critical IMS Smart Radios Device Converged Cognitive Software Defined Live Imaging Apps Content Management Application Hosting Services … Break/Fix | Integration | Managed | Hosted | Professional
  51. 51. Winning the Future Tomorrow Future Today (2008-2009) (2010+) (2007) Systems Mission Critical Broadband Analog P25 Phase II Mission Critical IMS P25 Tetra II Tetra High Speed Data Fixed Data & Wi4 Portfolio ISSI (System Interoperability) Network Defined Radios Next Generation Radios Smart Radios Device MotoTRBO Multi-mode Converged Laptops Multi-band Cognitive Mobile Computing Software Defined Live Imaging Text Base Data Imaging Apps Content Management Biometrics, Location, CAD, Next Gen 911 Application Hosting RMS, E911, Video Multi-Network Routing Services … Break/Fix | Integration | Managed | Hosted | Professional
  52. 52. Government and Public Safety Leadership End-to-End Portfolio Profitable Growth Attractive Markets Market Leader Today Solutions For Tomorrow
  53. 53. Enterprise
  54. 54. Kathy Paladino President, Enterprise
  55. 55. Enterprise End-to-End Enterprise Mobility White Collar and Blue Collar Indoors and Outdoors Motorola + Symbol + Good
  56. 56. Our Customers
  57. 57. The IT Evolution Age of Centralized Age of Personal Age of Computing Computing Mobility 1960’s 1970’s 1980’s 1990’s 2000’s Age of Distributed Age of Networked Computing Computing
  58. 58. Delivering Enterprise Anywhere to Enterprises Everywhere! Retail & Wholesale Manufacturing Transportation Warehouse/Distribution from the shop floor at the loading dock on the road to the corner office Financial & Energy & Utilities Healthcare Professional Services
  59. 59. End-to-End Solutions Connect Communicate Control Capture Mobile Advanced Enterprise Computing Data Capture Networks Messaging | Management | Security Services | Repair & Maintenance | Professional Services | Managed Services
  60. 60. Our Go-to-Market Partners Retail & Wholesale Manufacturing Transportation Healthcare
  61. 61. Profitable Growth Total Revenue $B 2H 1H $1.9B $1.8B $1.7B $970M $880M $880M $1.0B $898M $885M $853M 2004 2005 2006 2007 Symbol Technologies, Inc. Motorola Enterprise The 2004-2006 results from Symbol Technologies, Inc. have not been included in Motorola's financial statements and are shown here for reference only.
  62. 62. Revenue Key Drivers 1H07 – By Region Refresh & new business investment EMEA Mobility outside the 28% Americas four walls 65% Emerging growth markets AP 7% Motorola
  63. 63. Revenue Business Mix 1H07 – By Product 10% Margin rich 66% Mobile Computing Attractive to partners 24% Enterprise Networks Attractive to carriers Advanced Data Capture Industry leader
  64. 64. Expanding Market Key Drivers Total Available Market $14.1B CAGR 14% Enterprise mobility momentum $2.9B $12.4B $2.2B $10.8B Growing mobile workforce $11.2B $9.6B $1.6B $10.2B $1.2B $9.2B $8.4B New markets; new opportunities CAGR 10% Expanded products & Voice & Messaging solution portfolio Core Consumerization of the Enterprise 2008 2009 2010 2007
  65. 65. Success in the Enterprise Enterprise Opportunity Growing TAM Unique position Solid growth & margins Our Priorities Customer success Profitable growth Business expansion What You Can Expect From Enterprise Integration efficiencies Double-digit growth Double-digit OM
  66. 66. Enterprise Mobility Solutions 69
  67. 67. Enterprise Mobility Solutions Growing TAM Industry Leadership Mid-to-high Double-digit OM single-digit sales growth 70
  68. 68. Dan Moloney President, Home & Networks Mobility
  69. 69. Home & Networks Mobility Market Landscape Newly Aligned End-to-End Portfolio Delivery and Performance Consumer/Market Growth Drivers Market Opportunity – Focused Approach Keys to Success
  70. 70. Market Landscape – Customer and Technology Convergence At Home Mobile / Internet Wireless Video DBS MSOs Consumer CE Services Data Muni WiFi Voice Telcos Cellular VoIP Providers
  71. 71. Market Landscape – Customer and Technology Convergence At Home Mobile / Internet 1 Wireless Telefonica, SingTel, BT, Verizon, AT&T …video launches Video DBS MSOs Consumer CE 2 Services MSOs launch triple play bundle 1 Telmex launches VoIP in Brazil Data 3 4 Muni WiFi Sprint/Cable JV begins offering mobile voice service (Pivot) 4 3 Voice Verizon launches mobile video broad- Telcos Cellular VoIP cast Providers 2 KDDI announces plans to launch IP video
  72. 72. End-to-End Solutions & Expertise Customer Customer Access Home-to-Go Home-to-Go Seamless Premises Premises Technologies Technology Experiences Mobility Technology Experiences Core MPEG4 IP Infrastructure Follow Me TVTM Video Entertain- Media Gateways Anywhere, Anytime ment Devices Access Switched FTTx, HFC, Seamless Voice Portable Media Digital Video Voice Gateways Players Media Mobility XDSL, Time Shifting Fixed Mobile Data Gateways Video NXT – Generation Remote Home Control Wi4/WiMAX Convergence Handsets Converged Media Personalized M-Wallet Cellular Network Gateways Content / Mobile TV Management Advertising End-to-End Services and Experience Management
  73. 73. Home & Networks Mobility Performance Revenue $B $9.2B $9.0B $8.2B $4.7B $4.4B $4.2B Maintain market leadership across key technology $4.9B categories $4.6B $4.5B $4.0B 2005 2006 2007 2004 2H 1H
  74. 74. Revenue – Home Revenue $B 1H07 - By Solution Video Solutions: 75% $3.3B Access Networks: 12% $2.9B $1.8B Broadband Solutions: 13% $1.5B $2.3B $1.3B $2.2B 1H07 - By Region $1.5B $1.4B North America: 83% $1.0B Asia: 3% EMEA: 7% 2005 2006 2007 2004 Latin America: 7% 2H 1H
  75. 75. Revenue – Networks Revenue $B 1H07 - By Solution GSM / UMTS: 34% $6.1B CDMA: 33% $5.9B $5.9B iDEN: 17% $2.9B $2.9B $2.9B Wireless Broadband: 3% ECC / Core: 13% 1H07 - By Region $3.2B $3.0B $3.0B $2.7B North America: 39% Asia: 31% EMEA: 25% 2005 2006 2007 2004 Latin America: 5% 2H 1H
  76. 76. The Next Wave – Media Mobility
  77. 77. Consumers Demanding Media Mobility Mainstream Cutting Edge Tomorrow Personalized Content Bundles Services Blended Services on Demand Converged Platform Content as a Service Fixed Mobile Dan’s Media Internet on TV Fixed Voice Internet Susan’s Media Social TV Mobile TV Mark’s Media Video Wireless Angie’s Media
  78. 78. Driver #1: Video Explosion
  79. 79. Video Explosion Trend Total HD Total HD STB & Households DVR Shipments Impact (M, WW) (M, WW) 148M 106M Added complexity in video delivery architecture 74M 51M 48M Increased demand for bandwidth 38M 35M 27M Requirement for deploying advanced compression technology 13M 18M 2007 2008 2009 2010 2011 2007 2008 2009 2010 2011 IMS, Motorola
  80. 80. Video Explosion Motorola Solutions Acquisition Customer Solution IPTV MPEG-4 Encoding, Compression, Transcoding Extending Switched-Digital Video (SDV) Cable Trials Advanced Bandwidth Solutions - Cable PON, Cable Trials GPON, 1GHz Network Management and Reliability Multimedia Over Multiple Networks and Devices
  81. 81. Driver #2: From Prime Time To ‘My Time’
  82. 82. From Prime Time To ‘My Time’ Trend Cable VOD DVR Impact Advertising Subscribers Households Revenue (M, WW) (M, WW) 165M $42B ($B, US) Changing TV viewing habits – what, when, where Increased personalized and $27B localized content 65M $21B 58M Local and networked DVRs become extended video libraries 33M 25M More powerful solutions for 14M voice & data bundle 2005 2007 2011 2005 2007 2011 2005 2007 2011 Forrester, Kagan, ABI, Motorola
  83. 83. From Prime Time To ‘My Time’ Motorola Solutions Acquisition Customer Solution Personalized and Targeted Advertising; First-to-Market in Digital Ad Insertion Start Over™ Time-Shifted TV Home Media DVR™ Motorola Follow Me TV™ Solution Mediacipher™ DRM Unparalleled Content Security Need For Speed - Ultrabroadband DOCSIS 3.0
  84. 84. Driver #3: Broadband On The Go
  85. 85. Broadband On The Go Trend Mobile Video Mobile Impact Mobile VOD Messaging Infotainment (Users - M, WW) (Users - M, WW) (Users - M, WW) 596M Media mobility driving incumbent operators to WiMAX or LTE (1,295 WiMAX licenses globally) 398M Incentive for new entrants to enter and 289M compete quickly 254M 168M Momentum in WiMAX embedded devices 83M 53M 28M Greater focus on fixed mobile 14M convergence 2011 2005 2007 2011 2005 2007 2011 2005 2007 Motorola, Strategy Analytics 2006
  86. 86. Broadband On The Go Motorola Solutions Acquisition Customer Solution Leadership in WiMAX End-to-End Solutions Broad CPE Portfolio - Anywhere, Anytime Access Complete Services Portfolio Mobile TV Solutions – Devices and Applications
  87. 87. Motorola WiMAX Leadership 30 Active Trials Worldwide 20 Additional Trials Pending Europe Russia & CIS 2.5, 3.5 GHz 2.3, 2.5, 3.5 GHz Canada Netherlands Canada 2.5, 3.5 GHz Russia Austria United States Ukraine USA France China 2.3, 2.5 GHz Japan UAE Israel Taiwan Bangladesh Pakistan Mexico Middle East & Asia Pacific Brazil Africa 2.3, 3.3, Malaysia Central & 2.5, 3.5 GHz 3.5 GHz South America 2.5, 3.5 GHz Australia South Africa Chile Deployments Trials Wateen Sprint Clearwire Agni VTR Neckarcom Worldmax TDF Mena Softbank Maxis Neotel TVA Pakistan USA Global Bangladesh Chile Germany Netherlands France Bahrain Japan Malaysia S. Africa Brazil
  88. 88. The Opportunity
  89. 89. Market Opportunity – Home and Networks Mobility TAM $B Converged Solutions 100 Voice & Data Video Systems & Solutions 80 WiMAX 60 LTE UMTS / HSDPA 40 CDMA iDEN 20 GSM ‘06 ‘07 ‘08 ‘09 ‘10 ‘11 ‘12 ‘13 ‘14 ‘15
  90. 90. Focused Approach Expanded Leadership in End-to-End Video Next generation technology and applications IPTV and MPEG4 Globalization of video business Capture Broadband Network Expansion Wave Global leadership in end-to-end WiMAX GPON for wireline operators globally Cable bandwidth expansion Position for LTE migration Optimization of 2G/3G/iDEN portfolio Growth in Service and Experience Management Leverage organic and acquired services solutions
  91. 91. Keys to Success Deliver Manage and next-generation exploit the portfolio solutions Exceed customer Deliver expectations double-digit OE
  92. 92. Greg Brown President, Chief Operating Officer
  93. 93. Our Markets Industry Sales $B $328B CAGR 8% $302B $282B $260B $239B Enterprise Mobility Home and Networks Mobility Mobile Devices 2006 2007 2008 2009 2010
  94. 94. Our Financial Performance Total Revenue $B 1H07 - By Region Latin 2H $42.8B America 11% 1H $22.4B $35.3B Asia $29.7B $19.1B 17% $15.6B North $20.4B America $18.2B 54% $16.2B $14.1B EMEA 18% 2005 2006 2007 2004
  95. 95. Our Progress Customer-Focused Structure New Operating Leadership Team Gross Margin Expansion Lower Cost Structure Reduced SIC and Channel Rationalization Symbol Integrated and Performing Well Cash Conversion Cycle – A Top Priority Margin-Driven vs. Revenue Orientation
  96. 96. Pillars for Sustainable Growth Innovation Economic Value Drives Operational Discipline Shareholder Value Execution
  97. 97. Challenges Consistent Innovation and Financial Performance in MDB MDB Silicon and Software Platforms iDEN Decline GSM Infrastructure
  98. 98. Leveraging Our Strengths Brand and Global Distribution Design Leadership Comprehensive Video Assets Carrier and Enterprise Customer Relationships Indirect Channels and Growing Retail Presence End-to-End Orientation WiFi, WiMAX, Cellular Experience and IP
  99. 99. Goals Sustainable Profitability in MDB Expand MDB Product Portfolio Improve Operating Margins Lower Cost Structure Leverage Leadership Position in Video Extend Category Leadership in Enterprise Mobility Lead in 4G
  100. 100. Operating Business Model ─ Segments Mid-to-high single-digit Revenue growth Single-digit sales growth EMS H&NM MDB sales growth Profitability High single-digit OM Solid double-digit OM improves to double digits EMB Networks GPS Home Declining sales Mid-to-high Double-digit Double-digit Gain profitable share in mature single-digit sales sales growth in sales growth over time technologies, growth core markets Double-digit OM Improved gross margin partially offset by Continued strong Double-digit OM contribution by product WiMAX and LTE double-digit OM as they scale Lower overall cost Continue to Focused structure optimize mature investments, Minimize operating technologies to further margin swings fund 4G international expansion Sales growth momentum 2009 and beyond
  101. 101. “The quality of our expectations determines the quality of our action.” - André Godin
  102. 102. Tom Meredith Executive Vice President, Chief Financial Officer
  103. 103. Value is created when a company performs at a level IN EXCESS OF WACC
  104. 104. Agenda Balance Speed Agility Liquidity Cash Conversion Business Model Profitability Value Chain Growth Linearity
  105. 105. Balance
  106. 106. Delivering Economic Value All About Delivering Balance and Cash Conversion Cycle Liquidity Profitability Growth
  107. 107. Delivering Economic Value All About Delivering Balance and Cash Conversion Cycle Operating Cash Flow ($M) 2,000 Liquidity 1,800 2,600 1,400 1,200 1,000 800 600 400 200 Profitability Growth 0 -200 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 2004 2005 2006 2007
  108. 108. Delivering Economic Value All About Delivering Balance and Cash Conversion Cycle Operating Margins % Liquidity 20% 15% 10% 5% 0% Profitability Growth -5% Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 2004 2005 2006 2007
  109. 109. Delivering Economic Value All About Delivering Balance and Cash Conversion Cycle Sales Growth % 40% Liquidity 30% 20% 10% 0% -10% -20% Profitability Growth -30% Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 2004 2005 2006 2007
  110. 110. Speed
  111. 111. Cash Conversion Cycle DSO + DSI - DPO = CCC
  112. 112. Cash Conversion Cycle GAAP 80 Days Sales 56 Outstanding 60 50 Days Sales 38 40 36 of Inventory 35 35 31 26 20 Days Payable DAYS Outstanding 0 Cash Conversion Cycle -20 -40 -60 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 2005 2006 2007 117
  113. 113. Cash Conversion Cycle GAAP 90 Mobile Devices 80 70 Home & Networks 60 Mobility 50 DAYS 40 Enterprise Mobility 30 Solutions 20 10 Total Motorola 0 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 2005 2006 2007 19 13 18 26 21 26 48 49 Mobile Devices 72 65 77 67 73 62 71 50 Home & Networks Mobility 54 40 38 57 60 65 65 53 Enterprise Mobility Solutions Total Motorola 35 26 31 36 35 38 56 50
  114. 114. Cash Conversion Cycle The Best of the Best 30 Dell 20 10 Apple 0 DAYS -10 -20 Amazon -30 -40 Ebay -50 2004 2005 2006 Q2 ‘07 Dell -39 -36 -33 -33 Apple -26 -19 -27 -42 Amazon -23 -23 -18 -11 Ebay 16 18 21 22
  115. 115. Cash Conversion Cycle 85M $ Improving Motorola’s CCC by 1 day would increase cash by:
  116. 116. Cash Conversion Cycle Improving Motorola’s 2007 CCC to: 25 Days 0 Days -25 Days 2.0B 4.0B ~ 6.0B $ $ $ ~ ~
  117. 117. Value Chain 1.6 Months 0.6 Months 3.3 Months Total Supplier In- EMS Supplier Motorola Plants Plants In- Distribution In- Key Inventory Inventory Transit ODM Owned Buy / Sell Piece WIP Transit Center Transit Customers Investment Specific Inventory Parts & Inventory For “Hubbing” Finished in Channel MOT Goods 4-6 Points OE Supply Demand Closed Feedback Loop
  118. 118. Value Chain Assembly by EMS XCVR Packing & Total C/T MDO Shipping Flip Assy Packing Building Shipping 0.5 days LCD/Housing = I I Ship to Flip Packing XCVR XCVR Flip Assy Material internal/ & Shipping Packing Assembly in EMS Picking external from EMS Online Test Flip in Moto customer Hub WH 69 Capacity 5.5K/Shift(Supperlin)ne DJ qty 600 2hrs .5hrs hours 30hrs 12hrs 12hrs 12hrs .5hrs Total C/T Flip – BE – Packing One Piece Flow MDO Shipping One Piece Flow = I I Material Pallet & In-house Flip Assy/XCVR Assembly & Packing Online Picking & Shipping Unpacking Piece Moto part 15.5 WH inHub Capacity 5.5K/Shift(Supperlin)ne DJ qty 600 25hrs .5hrs hours 12hrs .5hrs 78% Cycle Time reduced by
  119. 119. Linearity – Enterprise Mobility (EMB) What Does Linearity Mean? To evenly distribute over the period measured (quarter) Objective is to ≥ 60% by end of week 8 Why Is Linearity Important? Improves margins Improves working capital Why Is EMB Good at It? Performance tracked and reported weekly Component of sales comp Sales commissions paid monthly
  120. 120. Agility
  121. 121. Business Model Sales Gross R&D as SG&A as OE as Growth Margin % Sales % Sales % Sales 8-10% 32-34% 9% 11% 12-14%
  122. 122. Operating Business Model ─ MOT For 2008, expect: » CCC of 20-30 days » Profitable in all businesses » Significantly improved cash flow and ROIC » 7,500-head reduction plan implemented » $1B cost savings in place – net of acquisitions and investments, expect $500M reduction in Opex, 2008 vs. 2007
  123. 123. Q&A quot;Winning isn't everything, but wanting to is.quot; - Vince Lombardi
  124. 124. 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 on pages 16 through 24 in item 1A of Motorola’s 2006 Annual Report on Form 10-K and in Motorola’s other SEC filings. This presentation is being made on the 7th of September 2007. 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. 2007

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