Q3 2007 Motorola, Inc. Earnings Conference Call Presentation

Q3 2007 Earnings Release- October 25, 2007MOTOROLA and the Stylized M Logo are registered in the US Patent & Trademark Office. .

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Motorola Q3 2007 Motorola Q3 2007 Earnings Conference CallEarnings Conference Call

October 25, 2007October 25, 2007


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Dean LindrothDean LindrothInvestor Relations OfficerInvestor Relations Officer

Q3 2007 Earnings Release- October 25, 2007MOTOROLA 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 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 25th of October 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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Ed Ed ZanderZanderChairman & Chief Executive OfficerChairman & Chief Executive Officer


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Q3 2007 Q3 2007 Earnings CallEarnings Call


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Tom MeredithTom MeredithChief Financial OfficerChief Financial Officer

Liquidity

Profitability Growth


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Q3 2007 Financial ResultsQ3 2007 Financial Results($ Millions) Q3 2007 Q2 2007 Q3 2006GAAPSales 8,811$ 8,732$ 10,603$

Operating Earnings (Loss) (10)$ (158)$ 968$

Operating Margin -0.1% -1.8% 9.1%

Earnings (Loss) from Continuing Operations 40$ (38)$ 727$

EPS from Continuing Operations 0.02$ (0.02)$ 0.29$

Excluding Highlighted ItemsOperating Earnings (Loss) 169$ (32)$ 1,172$ *

Operating Margin 1.9% -0.4% 11.1% *

Earnings (Loss) from Continuing Operations 147$ 41$ 792$ *

EPS from Continuing Operations 0.06$ 0.02$ 0.32$ *

* Excludes previously highlighted item for stock compensation expense of $62M from Q3 2006


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Cash Flow and Net CashCash Flow and Net CashQ3 Q2 Q3

($ in Millions) 2007 2007 2006

Net Earnings (Loss) 40$ (38)$ 727$

Depreciation, Amortization and Other, net 161 132 517

Change in Assets and Liabilities, net 141 (129) 346

Net Cash provided by (used for) Operating Activities 342$ (35)$ 1,590$

($ in Billions)

Cash* 8.4$ 8.7$ 14.9$

Short-term & Current Debt** (1.5) (1.8) (0.5)

Long-Term Debt (2.7) (2.6) (3.8)

Total Debt (4.2) (4.4) (4.3)

Net Cash 4.2$ 4.3$ 10.6$

*Cash and cash equivalents, Sigma funds, and Short-term investments**Notes payable and current portion of long-term debt


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Cash Conversion CycleCash Conversion Cycle

Qtr1 '06 Qtr2 '06 Qtr3 '06 Qtr4 '06 Qtr1 '07 Qtr2 '07 Qtr3 '07Mobile Devices 18 26 21 26 48 49 37 Home & Networks Mobility 71 67 73 62 71 50 52 Enterprise Mobility Solutions 52 57 60 65 65 53 47 Total Motorola 31 36 35 38 56 50 43

Cash Conversion Cycle

15

25

35

45

55

65

75

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

Cas

h C

onve

rsio

n D

ays

Mobile Devices Home & Networks Mobility Enterprise Mobility Solutions Total Motorola


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Return on Invested CapitalReturn on Invested Capital

17%

7%

13%

21%

5%

30%31%

0%

5%

10%

15%

20%

25%

30%

35%

2003 2004 2005 2006 Q1 '07 Q2 '07 Q3 '07

ROIC

Return on Invested Capital (ROIC)

= (12mth Rolling Operating Earnings excluding Highlighted Items and including Foreign Currency Gain/(Loss)) Tax Affected / 4 Quarter Average of (Shareholder’s Equity + Total Debt - Excess Cash**)

*Tax rate used is the GAAP tax less taxes on highlighted items divided by the PBT excluding highlighted items for the rolling 12 month period.

**Excess Cash = Rolling 4 Quarter Average of Total Cash & Short-term Investments – 5% of Rolling Net Sales


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Greg BrownGreg BrownPresident & Chief Operating OfficerPresident & Chief Operating Officer


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Mobile Devices FinancialsMobile Devices Financials($ Millions) Q3 2007 Q2 2007 Q3 2006GAAPSales 4,496$ 4,273$ 7,034$

Operating Earnings (Loss) (248)$ (332)$ 843$


Excluding Highlighted ItemsOperating Earnings (Loss) (138)$ (264)$ 843$


Units (M) 37.2 35.5 53.7Market Share (Estimate) 13.0% 13.5% 22.4%


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Mobile Devices HighlightsMobile Devices Highlights• Shipped 37.2M units

• Improvements in channel inventory

• Improvement in gross margin %

• Reduction in operating expenses

• Progress in software and silicon

• Introduced WiMAX chipset optimized for size, cost, power and speed


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Mass Market Feature Multimedia Productivity

Product SegmentationProduct Segmentation

W175 / W175 / W180W180

W385W385

Z6mZ6m

NEWNEW

W377W377

W156 / W156 / W160W160

NEWNEW

U9U9

NEWNEW

V8 V8 LuxLux. Edition. Edition

NEWNEWNEWNEW

Q700Q700

W220W220

W375W375

NEWNEW

NEWNEW

W206 / W206 / W213W213

C115C115

A1200A1200

K1mK1mV3V3

V9mV9m V9V9Z8Z8

iC602iC602

NEWNEW

Z6Z6NEWNEW

NEWNEW

Q9hQ9h

Q9mQ9m

Z6tvZ6tv

NEWNEWNEWNEW NEWNEW

Q8Q8

NEWNEW

C139C139


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Home and Networks Mobility FinancialsHome and Networks Mobility Financials($ Millions) Q3 2007 Q2 2007 Q3 2006GAAPSales 2,389$ 2,564$ 2,262$

Operating Earnings 159$ 191$ 181$

Operating Margin 6.7% 7.4% 8.0%

Excluding Highlighted ItemsOperating Earnings 165$ 207$ 231$



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Home and Networks Mobility HighlightsHome and Networks Mobility Highlights

• Maintained market leadership in digital entertainment devices

• Shipped two-millionth IP set top device

• Introduced DSR-6000 product line

• Conducted world’s first WiMAX 802.16e mobile handoff


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Enterprise Mobility Solutions FinancialsEnterprise Mobility Solutions Financials($ Millions) Q3 2007 Q2 2007 Q3 2006GAAPSales 1,954$ 1,920$ 1,329$

Operating Earnings 328$ 303$ 254$


Excluding Highlighted ItemsOperating Earnings 336$ 302$ 280$



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Enterprise Mobility Solutions HighlightsEnterprise Mobility Solutions Highlights

• Strong performance in Government & Public Safety and Enterprise markets

• TETRA and MOTOTRBO two-way radio successes

• Shipped one-millionth MC9000, rugged mobile computer

• Shipping the new MC17 mobile computer

• Good software integrated on new enterprise devices


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Q&A ParticipantsQ&A Participants

Ed ZanderChairman and Chief Executive Officer

Greg BrownPresident and Chief Operating Officer

Tom MeredithChief 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 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 25th of October 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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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.

Economy & Finance

Q3 2007 Motorola, Inc. Earnings Conference Call Presentation