Q2 2008 Motorola, Inc. Earnings Conference Call Presentation

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.
.

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 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

Greg Brown
President and
Chief Executive Officer

.

Q2 2008
Earnings Call

.

Paul Liska
Chief Financial Officer

.

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%
$ 53
Earnings (Loss) from Continuing Operations $ (104) $ 41
$ 0.02
EPS from Continuing Operations $ (0.05) $ 0.02

Slide -- 7

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

Mobile Devices Financials
Q2
GAAP 2008 2008 2007

$ 3,334
Sales $ 3,299 $ 4,273
$ (346)
Operating Loss $ (418) $ (332)
-10.4%


$ (340)
Operating Loss $ (347) $ (264)
-10.2%

28.1
Units (M) 27.4 35.5

9.5%
Market Share (Estimate) 9.5% 13.5%

Slide -- 9

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

Home and Networks Mobility Financials

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%


$ 248
9.1%

Slide -- 11

Home and Networks Mobility Highlights

• Record Home sales

• Improved operating margin

• Global market leader in digital video solutions

• Leading position in GPON

Slide -- 12

Enterprise Mobility Solutions Financials

Q2
GAAP 2008 2008 2007

$ 2,042
Sales $ 1,806 $ 1,920
$ 377
18.5%


$ 380
18.6%

Slide -- 13

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

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

Dean Lindroth
Investor Relations Officer

Slide -- 15

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

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 Motorola, Inc. Earnings Conference Call Presentation

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Q2 2008 Motorola, Inc. Earnings Conference Call Presentation