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Page 1: Lenovo + Motorola = A Winning Combination › en › ir › corp_actions › a140130_pre.pdf · 5 Motorola Brings a History of Visionary Technology Innovation Companion products 1996
Page 2: Lenovo + Motorola = A Winning Combination › en › ir › corp_actions › a140130_pre.pdf · 5 Motorola Brings a History of Visionary Technology Innovation Companion products 1996

2

Lenovo + Motorola = A Winning Combination

US$33.9 billion revenue global technology

company

#3 smart connected device player globally

− #1 PC vendor globally

− #2 smartphone brand in China

− #4 smartphone player globally

Excellence in supply chain management and

operational efficiency

US$4.7 billion revenue* mobile phone company

30 years’ operating history in mobile industry

Portfolio of well known products with strong

brand awareness

Strong relationships with retailers and carriers in

North America and Latin America

Robust R&D capabilities and IP position

Creating a premier global smartphone player

* For the 4 quarters ended September 30, 2013, as reported in Google’s public filings

Page 3: Lenovo + Motorola = A Winning Combination › en › ir › corp_actions › a140130_pre.pdf · 5 Motorola Brings a History of Visionary Technology Innovation Companion products 1996

3

Transaction Summary

Structure

Consideration

Approvals Required

Lenovo to acquire 100% of Motorola Mobility, including:

− Mobile device business

− Approximately 3,500 technical and other resources across 33 locations globally

− Broad product portfolio covering premium (Moto X and Droid series) to value

segments (Moto G)

− License to a rich portfolio of mobile patents and ownership of over 2,000 additional

patents

Total consideration of US$2.91 billion, consisting of the following

− US$660 million in cash

− US$750 million in Lenovo stock

− US$1.5 billion 3-year interest-free promissory note

Approvals required include CFIUS and Antitrust Improvements Act of 1976 in the US, as well as customary regulatory approvals in other markets around the world

Closing The transaction is expected to close in late summer or early fall of this year, subject to the

satisfaction of regulatory requirements and customary closing conditions

Page 4: Lenovo + Motorola = A Winning Combination › en › ir › corp_actions › a140130_pre.pdf · 5 Motorola Brings a History of Visionary Technology Innovation Companion products 1996

4

Huge Growth Opportunities to be Captured in the Global Smartphone Market

350 420 461 502 536

326

422 516

614 709

334

366

395

420

441

1,010

1,208

1,372

1,536

1,686

2013 2014 2015 2016 2017

PRC Emerging Markets Mature Markets

CAGR

2013-17

13.7%

7.2%

21.4%

11.2%

(million units)

Global Smartphone Market Forecast

Source: IDC

Page 5: Lenovo + Motorola = A Winning Combination › en › ir › corp_actions › a140130_pre.pdf · 5 Motorola Brings a History of Visionary Technology Innovation Companion products 1996

5

Motorola Brings a History of Visionary Technology Innovation

Companion products

2013 1996

StarTAC

2009

Droid

Moto X & Moto G

2004

RAZR

1982

DynaTAC

Motorola’s transponder

aboard Apollo 11 relayed the

first words from the moon Value

Moto G Moto Razr D1 Moto Razr D3

Premium

Moto X Droid

Ultra

Droid

Mini

Droid

Maxx

History of Visionary Innovation Rich Product Portfolio

Page 6: Lenovo + Motorola = A Winning Combination › en › ir › corp_actions › a140130_pre.pdf · 5 Motorola Brings a History of Visionary Technology Innovation Companion products 1996

6

Complementary Strengths Resulting in Winning Combination

Global smartphone brand; well established in mature markets

Motorola brings… Lenovo brings…

IP and technical expertise – 2,500 engineers

+

Established smartphone brand in China & Asia Pacific

High value products at lower price points Software capability

Strong R&D capabilities

World class execution capability

Strong supply chain management and operational efficiency

Lenovo and Motorola have highly complementary capabilities

Complete product portfolio across all price points

Carrier and retailer relationships

Page 7: Lenovo + Motorola = A Winning Combination › en › ir › corp_actions › a140130_pre.pdf · 5 Motorola Brings a History of Visionary Technology Innovation Companion products 1996

7

Immediate Global Footprint from Combining Geographical Strengths

NA: 3.5%

LATAM: 8.0%

PRC: 11.8%

APeJ: 1.0%

WE: 0.3%

Rest of

EMEA: 0.5%

Motorola

Lenovo

Source: IDC (smartphone market share for CY 4Q2012 to 3Q2013)

Market share (by shipment)

Combined worldwide market share (CY 4Q2012-3Q2013): 5.4%

Page 8: Lenovo + Motorola = A Winning Combination › en › ir › corp_actions › a140130_pre.pdf · 5 Motorola Brings a History of Visionary Technology Innovation Companion products 1996

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A Great Leap toward Reaching Our Strategic Goals

Product Offerings & User Experience | Global Branding | Quality Focus | Business Model

Protect

Build Efficient Consumer Business Model | Improve E2E Speed | Focus on Customer Voice | LSS Focus

Meet Commitments / Take Ownership | Build a World Class Organization

Innovation Leadership

Attack

Operational Effectiveness

Global Culture

Commercial PC

China PC

Profit Pools

Mobile Internet and Digital Home (Smartphones)

Consumer PC

Enterprise Systems

Commercial PC

China Market

Profit Pools

Mobile Internet and Digital Home (Smartphones)

Consumer PC

Enterprise Systems

This acquisition is well aligned with Lenovo’s “Protect and Attack” strategy

Positions Lenovo to become a truly global smartphone player and to capture future market growth around the world, in mobile devices as well as the entire ecosystem

Page 9: Lenovo + Motorola = A Winning Combination › en › ir › corp_actions › a140130_pre.pdf · 5 Motorola Brings a History of Visionary Technology Innovation Companion products 1996