q1 2008 motorola, inc. earnings conference call presentation

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

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Motorola Q1 2008 Motorola Q1 2008 Earnings Conference CallEarnings Conference Call

April 24, 2008April 24, 2008


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Dean LindrothDean LindrothInvestor Relations OfficerInvestor Relations Officer

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

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Safe HarborSafe HarborA 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


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Greg BrownGreg BrownPresident andPresident and

Chief Executive OfficerChief Executive Officer


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Q1 2008 Q1 2008 Earnings CallEarnings Call


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Paul Paul LiskaLiskaChief Financial OfficerChief Financial Officer


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Q1 2008 Financial ResultsQ1 2008 Financial Results($ in Millions) Q1 Q4 Q1GAAP 2008 2007 2007

Sales 7,448$ 9,646$ 9,433$

Operating Earnings (Loss) (269)$ (19)$ (366)$

Operating Margin -3.6% -0.2% -3.9%

Earnings (Loss) from Continuing Operations (194)$ 111$ (218)$

EPS from Continuing Operations (0.09)$ 0.05$ (0.09)$

Excluding Highlighted Items

Operating Earnings (Loss) (140)$ 381$ 11$

Operating Margin -1.9% 3.9% 0.1%

Earnings (Loss) from Continuing Operations (104)$ 319$ 49$

EPS from Continuing Operations (0.05)$ 0.14$ 0.02$


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Cash Flow and Net CashCash Flow and Net CashQ1 Q4 Q1

($ in Millions) 2008 2007 2007

Earnings from Continuing Operations (194)$ 111$ (218)$

Depreciation, Amortization, Deferred Income Taxes and Other, net (16) 22 224

Change in Assets and Liabilities, net (133) 337 2

Net Cash provided by Operating Activities (343)$ 470$ 8$

($ in Billions)

Cash* 7.7$ 8.6$ 9.0$

Short-term & Current Debt** (0.2) (0.3) (1.8)

Long-Term Debt (4.0) (4.0) (2.6)

Total Debt (4.2) (4.3) (4.4)

Net Cash 3.5$ 4.3$ 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


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Cash Conversion CycleCash Conversion Cycle

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

Cash Conversion Cycle

15

25

35

45

55

65

75

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

Cas

h C

onve

rsio

n D

ays

Mobile Devices Home & Networks Mobility Enterprise Mobility Solutions Total Motorola


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Mobile Devices FinancialsMobile Devices Financials($ in Millions) Q1 Q4 Q1GAAP 2008 2007 2007

Sales 3,299$ 4,811$ 5,408$






Units (M) 27.4 40.9 45.4

Market Share (Estimate) 9.5% 12.4% 17.5%


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Mass Market Feature Multimedia Productivity

Portfolio SegmentationPortfolio Segmentation

W175 / W175 / W180W180 Q700Q700

W220W220 W375W375

A1200A1200

Z10Z10

iC602iC602

Q9hQ9h

Q9mQ9m

Q8Q8

U9U9

W230W230

Z8Z8

E8E8 Q9cQ9cQ9c limeQ9c limeZ9Z9

NEWNEW

Z6wZ6wW181W181W161W161 V950V950

Z6tvZ6tv

V9V9

Z6mZ6m

Z6Z6V9mV9m V8V8

W377W377

W156 / W156 / W160W160

W510W510

W5W5

NEWNEW

W270W270

NEWNEW

NEWNEW

V8 V8 LuxLux. Edition. Edition

K1mK1m

NEWNEW

i877i877W362W362

NEWNEW


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Home and Networks Mobility FinancialsHome and Networks Mobility Financials

($ in Millions) Q1 Q4 Q1GAAP 2008 2007 2007

Sales 2,383$ 2,724$ 2,337$

Operating Earnings 153$ 192$ 167$

Operating Margin 6.4% 7.0% 7.1%





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Home and Networks Mobility HighlightsHome 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

Mobile TVMobile TV WiMAXWiMAX CPECPEii 750750SURFboardSURFboardDOCSIS 3.0DOCSIS 3.0

DCX3400DCX3400


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Enterprise Mobility Solutions FinancialsEnterprise Mobility Solutions Financials

($ in Millions) Q1 Q4 Q1GAAP 2008 2007 2007

Sales 1,806$ 2,138$ 1,717$







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Enterprise Mobility Solutions HighlightsEnterprise 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

MC70MC70 CA50CA50 RFS6000RFS6000 TETRA Radio TETRA Radio MTP850EXMTP850EX


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Q&A ParticipantsQ&A Participants

Greg BrownPresident and Chief Executive Officer

Paul LiskaChief Financial Officer

Dean LindrothInvestor Relations Officer


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Safe HarborSafe HarborA 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


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Use of NonUse of Non--GAAP MeasuresGAAP MeasuresIn 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.

q1 2008 motorola, inc. earnings conference call presentation

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