Q1 2008 Motorola, Inc. Earnings Conference Call Presentation

Motorola Q1 2008
Earnings Conference Call
April 24, 2008

Q1 2008 Earnings Release- April 24, 2008 Slide - 1
MOTOROLA and the Stylized M Logo are registered in the US Patent & Trademark Office.
.

Dean Lindroth
Investor Relations Officer

.

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 24rd of April 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
Q1 2008 Earnings Release- April 24, 2008

Greg Brown
President and
Chief Executive Officer

.

Q1 2008
Earnings Call

.

Paul Liska
Chief Financial Officer

.

Q1 2008 Financial Results
Q1
($ in Millions) Q4 Q1
GAAP 2008 2007 2007

$ 7,448
Sales $ 9,646 $ 9,433
$ (269)
Operating Earnings (Loss) $ (19) $ (366)
-3.6%
Operating Margin -0.2% -3.9%
$ (194)
Earnings (Loss) from Continuing Operations $ 111 $ (218)
$ (0.09)
EPS from Continuing Operations $ 0.05 $ (0.09)

Excluding Highlighted Items

$ (140)
Operating Earnings (Loss) $ 381 $ 11
-1.9%
Operating Margin 3.9% 0.1%
$ (104)
Earnings (Loss) from Continuing Operations $ 319 $ 49
$ (0.05)
EPS from Continuing Operations $ 0.14 $ 0.02

Slide -- 7

Cash Flow and Net Cash
Q1 Q4 Q1
2008 2007 2007
($ in Millions)

$ (194) $ 111
Earnings from Continuing Operations $ (218)
(16) 22
Depreciation, Amortization, Deferred Income Taxes and Other, net 224
(133) 337
Change in Assets and Liabilities, net 2
$ (343) $ 470
Net Cash provided by Operating Activities $ 8

($ in Billions)

$ 7.7 $ 8.6
Cash* $ 9.0
(0.2) (0.3)
Short-term & Current Debt** (1.8)
(4.0) (4.0)
Long-Term Debt (2.6)
(4.2) (4.3)
Total Debt (4.4)
$ 3.5 $ 4.3
Net Cash $ 4.6

*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

Cash Conversion Cycle
75

65
Cash Conversion Days

55

45

35

25

15
Qtr4 '06 Qtr1 '07 Qtr2 '07 Qtr3 '07 Qtr4 '07 Qtr1 '08

Mobile Devices Home & Networks Mobility Enterprise Mobility Solutions Total Motorola

Cash Conversion Cycle
Qtr4 '06 Qtr1 '07 Qtr2 '07 Qtr3 '07 Qtr4 '07 Qtr1 '08
Mobile Devices 26 48 49 37 26 45
Home & Networks Mobility 62 71 50 52 38 42
Enterprise Mobility Solutions 65 65 53 47 40 50
Total Motorola 38 56 50 43 33 46

Slide -- 9

Mobile Devices Financials
Q1
GAAP 2008 2007 2007

$ 3,299
Sales $ 4,811 $ 5,408
$ (418)
-12.7%


$ (347)
-10.5%

27.4
Units (M) 40.9 45.4

9.5%
Market Share (Estimate) 12.4% 17.5%

Slide -- 10

Portfolio Segmentation

NEW
NEW
Q9c lime
U9
E8 Z10 Q9c
W156 / Z9 V950 Z6w
W161 W181
W160

W5 Z8
Z6
V9 V9m V8
Q8
Q9h
W220
W377 W375

NEW
Z6m
Z6tv
W270
K1m
V8
W510
Q9m
Lux. Edition
Lux.

NEW
W175 / NEW
NEW A1200 Q700
W180 W362
W230
i877
iC602

Productivity
Multimedia
Feature
Mass Market

Slide -- 11

Home and Networks Mobility Financials

Q1
GAAP 2008 2007 2007

$ 2,383
Sales $ 2,724 $ 2,337
$ 153
Operating Earnings $ 192 $ 167
6.4%


$ 173
7.3%

Slide -- 12

Home and Networks Mobility Highlights
• Strong demand for HD and DVR devices
• Market leadership in digital entertainment
• DOCSIS 3.0 CMTS award
• Completed Dahua Digital acquisition
• WiMAX portfolio enhancements

SURFboard
DCX3400 WiMAX CPEi 750
Mobile TV
DOCSIS 3.0

Slide -- 13

Enterprise Mobility Solutions Financials

Q1
GAAP 2008 2007 2007

$ 1,806
Sales $ 2,138 $ 1,717
$ 250
13.8%


$ 259
14.3%

Slide -- 14

Enterprise Mobility Solutions Highlights
• Strong international growth
• Strong demand for MC70
• Largest public safety award for Motorola in Asia
• Launched CA50 device and RFS6000 wireless LAN

CA50 RFS6000
MC70 TETRA Radio
MTP850EX

Slide -- 15

Q&A Participants
Greg Brown Paul Liska
President and Chief Financial Officer
Chief Executive Officer

Dean Lindroth
Investor Relations Officer

Slide -- 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 24rd of April 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 -- 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 -- 18

Q1 2008 Motorola, Inc. Earnings Conference Call Presentation

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Q1 2008 Motorola, Inc. Earnings Conference Call Presentation