OVERVIEW

OVERVIEW AUGUST 8, 2011 MOTOROLA and the Stylized M Logo are trademarks or registered trademarks of Motorola Trademark Holdings, LLC. All other trademarks are the property of their respective owners. © 2011 Motorola Mobility, Inc. All rights reserved.

SAFE HARBOR A number of forward-looking statements are included in 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 Mobility, and we can give no assurance that any future results or events discussed in these statements will be achieved. Any forward-looking statements represent our views only as of the date on the cover and should not be relied upon as representing our views as of any subsequent date. Forward-looking statements are subject to a variety of risks and uncertainties that could cause our actual results to differ materially from the statements contained in this presentation. Information about factors that could cause, and in some cases have caused, such differences can be found on pages 13 through 34 of Motorola Mobility’s 2010 Annual Report on Form 10-K and other SEC filings, available for free on the SEC’s website at www.sec.gov and on Motorola Mobility’s Investor Relations website at http://investors.motorola.com. The content of this presentation contains time-sensitive information that is accurate only as of the date on the cover. If any portion of this presentation is redistributed at a later date, Motorola Mobility will not be reviewing or updating the material that is contained herein.

© 2011 Motorola Mobility, Inc.

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USE OF NON-GAAP MEASURES In this presentation, Motorola Mobility has presented certain non-GAAP measurements. Motorola Mobility has provided these non-GAAP measurements to help investors better understand Motorola Mobility’s core operating performance, enhance comparisons of Motorola Mobility’s core operating performance from period to period, and allow better comparisons of Motorola Mobility’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 certain incentive compensation targets. Management uses operating results, excluding these items, because it believes this measurement enables it to make better period-to-period evaluations of the financial performance of its core business operations. The non-GAAP measurements are intended only as a supplement to the comparable GAAP measurements and the Company compensates for the limitations inherent in the use of non-GAAP measurements by using GAAP measures in conjunction with the non-GAAP measurements. As a result, investors should consider these non-GAAP measurements in addition to, and not in substitution for or as superior to, measurements of financial performance prepared in accordance with GAAP. Details of these items and reconciliations of non-GAAP measurements to GAAP measurements can be found on Motorola Mobility’s Investor Relations website at http://investors.motorola.com.


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SEPARATION COMPLETED • Separated from Motorola January 4, 2011 • Independent, publicly-traded company • Distribution to shareholders : 1 MMI share for every 8 MOT shares • Included in S&P 500 Index • Separation expected to enable: – Improved strategic and operational flexibility – Improved focus on unique strategies, customers, and opportunities for growth


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CORE STRENGTHS OF THE COMPANY • Technology innovation • Global brand • Deep and strategic global customer relationships • Broad patent portfolio • Well-capitalized balance sheet


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WELL-POSITIONED FOR SUCCESS • Growing markets Smartphones

Home

• Driving new consumer experiences • Differentiating through software and services • Leading in the digital home • Increasing reach – retail, the enterprise, and international markets

Software and Services

Medios

Converged Experiences


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Financial Trends


MOTOROLA PHOTON™ 4G

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MOTOROLA TITANIUM™

IMPROVING FINANCIAL TRENDS REVENUES

GROSS MARGIN*

($ in billions) $3.4

$3.6 $2.8

$2.8

$2.7

$2.6

$2.5

$3.3

32%

$3.0

$2.9

$2.8

25.5%

$2.6

24%

24.3%

25.7%

27.2% 27.0%

25.0% 26.0%

20.8% 18.1% 15.4%

16%

$1.8

8%

$0.9

0%

$0.0

Q1'09 Q2'09 Q3'09 Q4'09 Q1'10 Q2'10 Q3'10 Q4'10 Q1'11 Q2'11

Q1'09 Q2'09 Q3'09 Q4'09 Q1'10 Q2'10 Q3'10 Q4'10 Q1'11 Q2'11

EARNINGS (LOSS) PER SHARE*

OPERATING CASH FLOW ($ in millions) $500

$0.37

$0.50 $0.13

$324

$232

$0.09

$4

$26

$31

$225

$107

$0

$0

$0.00 ($0.08) ($0.24)

($0.50)

($500)

($0.30)

($197)

($0.48) ($0.73)

($1.00)

($0.64) ($1,000) ($1,143)

($1.50)

($1,500)

($1.34) Q1'09 Q2'09 Q3'09 Q4'09 Q1'10 Q2'10 Q3'10 Q4'10 Q1'11 Q2'11

Q1'09 Q2'09 Q3'09 Q4'09 Q1'10 Q2'10 Q3'10 Q4'10 Q1'11 Q2'11

* Note: Gross margin and per share metrics shown are on a non-GAAP basis.


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IMPROVING TRENDS – BY BUSINESS MOBILE DEVICES REVENUES & SMARTPHONE UNITS ($ in billions)

MOBILE DEVICES OPERATING MARGIN*

(units in millions)

$3.2

6.0 $2.4

$2.4 $1.8

$1.8

$1.7

$1.8

$2.0 $1.6

4.9

$2.4

4.1

3.8

4.0

4.4

2.0

0%

-6.4% -13.0%

3.0

2.7 $0.8

0.1%

5.0

$2.1

$1.7

$1.6

16%

2.0

(16%)

-10.8%

-9.0%

2.3% -2.9% -1.3%

-6.3%

-21.4%

2.3 1.0

$0.0

0.0

(32%) Q1'09 Q2'09 Q3'09 Q4'09 Q1'10 Q2'10 Q3'10 Q4'10 Q1'11 Q2'11

Q1'09 Q2'09 Q3'09 Q4'09 Q1'10 Q2'10 Q3'10 Q4'10 Q1'11 Q2'11 Sales

Smartphone Units

HOME REVENUES

HOME OPERATING MARGIN*

($ in billions) $1.2

$1.0

$1.0

$0.8

$0.9

12%

$1.0

$1.0 $0.9

$0.9

$0.9

$0.9

9.9%

$0.9

8.4% 9%

7.1%

$0.6

4.5%

6%

5.1%

9.0%

9.0%

6.5% 5.6%

3.5% $0.3

3% ($0.0) Q1'09

Q2'09

Q3'09

Q4'09

Q1'10

Q2'10

Q3'10

Q4'10

Q1'11

Q2'11

0% Q1'09 Q2'09 Q3'09 Q4'09 Q1'10 Q2'10 Q3'10 Q4'10 Q1'11 Q2'11

Improved Operating Margins through Growth and Cost Management *Note: Operating Margin metrics are on a non-GAAP basis.


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2010 Business Results


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MOBILE DEVICES: 2010 SUMMARY 2010 UNIT SHIPMENTS BY PHONE TYPE Smartphones 37%

Other Handsets 63%

2010 REVENUES BY REGION

• $7.8 billion in revenues, up 9% vs. 2009 Asia 14%

• Increased average selling price and gross margin

EMEA 5%

• Profitable in Q3 and Q4(1) • 23 new smartphone launches • Shipped 13.7 million smartphones vs. 2.0 million in 2009 • Ranked #2 in smartphone satisfaction by J.D. Power 1 2

Latin America 16%

North America 65%

(2)

Non-GAAP basis J.D. Power and Associates 2010 Wireless Satisfaction Study Volume 2. © 2011 Motorola Mobility, Inc.

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HOME: 2010 SUMMARY 2010 REVENUES BY PRODUCT Programmer & Headend

Service Provider Networks

Cable Home

Infrastructure 25%

Home Devices 75%

IPTV Home

Video Headend

Access

CPE

End-to-End Capability 2010 REVENUES BY REGION

• $3.6 billion in revenues vs. $3.9 billion in 2009 • Worldwide leader in sales of set tops & video solutions • Improved profitability vs. 2009 • Expanded set-top and software solutions portfolio

Asia EMEA 5% 10% Latin America 10% North America 75%

(3D, Medios, EDGE)


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Q2 2011 Business Results


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MOBILE DEVICES: Q2 2011 SUMMARY TOTAL UNITS (M) 14.0 12.0

11.0 0.44

10.0

9.3 0.25

4.4

8.0 6.0 4.0

Motorola XT882

Motorola MT870

Motorola MT620

Motorola DROID 3 XT316 by Motorola / XT883

HIGHLIGHTS • Shipped 4.4M smartphone units and over 440K tablets. • Expanded Motorola DROID family at Verizon with introduction of DROID X2 and DROID 3 by Motorola.

6.2

2.0

• Forged renewed relationship with Sprint and its prepaid brands, Boost Mobile and Virgin Mobile USA, with the planned introduction of 10 new devices including the iconic Motorola PHOTONTM 4G.

4.1

2.7

4.9

5.6

0.0 Q2 2011

Q1 2011

Feature Phones

Q2 2010

Smartphones

Tablets

REVENUE MIX BY REGION 100% 80%

4% 4% 9%

4% 5% 15%

10% 9%

17%

14% 20%

60%

• Launched four powerful mobile devices in the China market – XT882, MT870, MT620, and XT316 – and announced Motorola XT883 with China Telecom.

8.3

24%

40% 20%

66%

56%

43%

0% Q2 2011 North America

Latin America

Q1 2011 G. China

Q2 2010 EMEA

Rest of Asia


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HOME Q2: 2011 SUMMARY REVENUES BY PRODUCT 100% 80%

25%

24%

28%

75%

76%

72%

60% 40% 20% 0% Q2 2011

HIGHLIGHTS • Introduced Motorola TelevationTM, broadband video device enabling consumers to watch live TV on any connected IP device anywhere around the home. • Launched Medios Xperience platform providing consumers with more interactive functionality with broadcast TV and video-ondemand services. • Announced DCX3600M, Motorola’s first video gateway device. • Selected by ESPN to transition ESPN and ESPN-2 programming to MPEG-4 HD format using Motorola’s video distribution solution.

CPE

Q1 2011

Q2 2010

Infrastructure

REVENUE MIX BY REGION 100% 16 80%

3% 9% 2% 13%

2% 8% 2% 11%

3% 12% 2% 12%

73%

77%

71%

60% 40% 20% 0% Q2 2011 North America

Q1 2011 Latin America

Q2 2010

G. China EMEA Rest of Asia © 2011 Motorola Mobility, Inc. 16


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RAPIDLY GROWING SMARTPHONE & TABLET MARKETS WORLDWIDE SMARTPHONE OUTLOOK (millions of smartphones)

1,160

• Smartphone market is rapidly growing and evolving

’10 – ’15E CAGR

• Larger revenue and gross profit share for smartphones

404

34%

244

54%

OPPORTUNITIES

ROW

China

• Convergence of computing and mobility – Tablet market expected to reach 318 million units by 2015 * • 4G LTE Transition

230

22%

Western Europe

91

39%

Latin America

86 18 72

191

22%

North America

2010

2015

299 95 28

North America

Western Europe

• Growth opportunity attracts significant competition

– Competitors within Android

50% LatAm

CHALLENGES

– Multiple competitive platforms

Smartphones as a % of Mobile Market

19%

• Expansion in China, Latin America, and Europe

China

ROW

• Short product cycles

Source data: Gartner. Forecast: Mobile Devices, worldwide , 2008-2015 2Q11 Update * Gartner Forecast: Media Tablets by Operating System, Worldwide, 2010-2015 2Q11 Update


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WELL-POSITIONED FOR GROWTH KEY SUCCESS FACTORS

COMMENTARY

Hardware

Innovative and compelling offerings

Software

Differentiated experiences and cloud-based services for consumers and enterprise

Platform

Leveraging Android ecosystem

Carrier/Retail Relationships

Driving consumer adoption

Intellectual Property / Innovation

Industry leading patent portfolio

Brand

Highly recognizable and trusted


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VIDEO GROWTH BALANCED BY INDUSTRY SHIFTS VIDEO GROWTH 25,000

OPPORTUNITIES

($ in billions)

• Video and data subscriber growth • Increased bandwidth demand

$19.7

20,000

• HDTV, Multi-Room DVR, IP Video, and 3D adoption

$16.1 15,000

15.0 10,000

CPE growing at 3.5% CAGR

12.6

• International growth • Over the top solutions

5,000

3.5

• Management of increasing sources of content

4.7

Infrastructure growing at 6.1% CAGR

CHALLENGES • Economic conditions limiting housing growth and

0

2010 Infrastructure

2015 CPE

Source: Motorola Mobility management; Infonetics Research, IMS Research; ABI Research; Multimedia Research Group, Inc. (MRG) CPE Includes ATSC, DVB, IPTV set top boxes and Cable and Telco data devices. Infrastructure includes Cable access and Video delivery infrastructure.

consumer spending • Competitive pricing pressure and supplier

diversification • Over the top services


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WELL-POSITIONED FOR THE DIGITAL HOME KEY SUCCESS FACTORS

COMMENTARY

Innovation

Industry leader

End to End Capabilities

Optimized delivery of media experiences

Technology and Product Breadth

Leading provider of QAM and IP video and data solutions

Security

Trusted provider of high value content protection

Customer Relationships

Proven technology supplier

Intellectual Property

Substantial contributions to industry standards


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MOTOROLA MOBILITY: 2011 PRIORITIES • Consistent execution & product leadership • Deliver differentiated mobile experiences – 4G LTE devices, cloud-based experiences, Webtop, enterprise-ready devices

• Lead transition to IP video networks and devices • Diversify customer and geographic sales mix • Cost management • Improve profitability © 2011 Motorola Mobility, Inc.

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