Investor Presentation

Transcription

1 NASDAQ: ITI Investor Presentation January 2018

2 Safe Harbor Statement This presentation may contain forward-looking statements within the meaning of the federal securities laws, including the Private Securities Litigation Reform Act of These forward-looking statements may include the potential growth of the markets in which we compete, the development status and planned availability of new products and features, and guidance provided on future revenue, gross margins and certain operating expenses. In fact, all statements that we make or incorporate by reference in the presentation, other than statements or characterizations of historical fact, are forward-looking statements. It should be clearly understood that these forward-looking statements, and our assumptions about the factors that influence them, are based on the limited information available to us at this date. Such information is subject to change, and we may not inform you when changes occur. We undertake no obligation to revise or update publicly any forwardlooking statement to reflect future events or circumstances. Forward-looking statements are not guarantees of future results and are subject to risks, uncertainties and assumptions that are difficult to predict. Therefore, our actual results could differ materially and adversely from those described in the statements you hear today as a result of various factors. We refer you to our Form 10-K for the year ended March 31, 2016, subsequent and forthcoming 10-Qs and other filings with the SEC, which discuss some of the important risk factors that could contribute to such differences or otherwise affect our business, results of operations and financial condition. For additional financial and statistical information, including the information disclosed in accordance with SEC Regulation G, please see the Investors section of our website. 2

3 Iteris At-a-Glance $100M+ total revenue for TTM ending September 30 16% organic annual revenue growth $61.7M total backlog Free cash flow from transportation segments funding SaaS initiatives Cash ending September 30 = $14.9M 425+ Employees More than 15,000 Customers Strong IP Over 75 Patents issued or in process HQ Santa Ana, CA NASDAQ: ITI Strategic Footprint in Large and Dynamic Markets $4B-$5B Smart Transportation $1B-$2B Digital Agriculture * ITI fiscal year ends Mar 31 3

4 Megatrends Are Transforming Both Transportation and Agriculture organic eco-friendly Consumer Preferences arable land EV local sustainable shared mobility connected farm CV / AV IoT sensors everywhere Ubiquitous Connectivity global regulations drought / floods Climate Change 4 Emerging models depend on seamless data integration and advanced analytics

5 Our Vision Iteris is the leading provider of essential applied informatics that enable Smart Transportation and Digital Agriculture worldwide 5

6 Smart Transportation $600B+ global transportation infrastructure market Historically, investment constrained by agency budgets Connected and smart infrastructure will reshape market dynamic 6

7 Iteris Smart Transportation Segments $95.6M TTM revenue (combined 19% segment-level OI margin) Market leader in emerging IoT segment for transportation infrastructure 325 people with unique multi-disciplinary expertise Sensor design, data analytics, image analysis, wireless communication Systems integration, transportation engineering design & planning Meteorology and physical sciences Trusted advisor to 20 countries; 50 state DOTs; 1,000+ counties; and 10,000+ municipalities Expanding suite of data aggregation and analytics solutions Technical leadership: Over 20 patents issued or submitted USDOT Connected Vehicle Reference Architecture Design Univ of Michigan Mcity Founding Member* * Members include Bosch, Delphi, Ford, General Motors, Honda, State Farm, Toyota, Verizon 7

8 1 ST 1 ST National Intelligent Transportation System (ITS) Architecture ST 1 Personalized Traveler Information System deployed ST system with weather overlay State wide 511 system Video / Computer vision Traveler info Pioneering Technology for 20+ years Defining the pathway to Connected Vehicles and Smart Cities ST 1 h.264 video Streaming ST 1 Connected Vehicle Reference Implementation Architecture (CVRIA) ST 1 Wide Dynamic Range camera Connected / Autonomous Vehicles ST 1 Advanced Weather/ Pavement Treatment Advisor ClearPath 1 ST 1 Hybrid Video / Radar detection system Advanced Sensors ST Bicycle detection ST 1 Comprehensive SaaS Traffic Analytics system 1 Advanced Analytics ST Integrated Pedestrian Counting Smart Cities 1990 s 2000 s

9 Iteris Smart City Framework Energy & Utilities Citizen E-Services Transportation & Mobility Public Safety & Security Buildings & Real-Estate I n t e l l i g e n t I n f r a s t r u c t u r e D I G I T A L B A C K B O N E 9

10 Iteris Smart Transportation Solutions Optimize Routes Reduce Accidents /Incidents Reduce Congestion Reduce Carbon Emission Monitor Commercial Vehicle Compliance Optimize Road Maintenance Analytics Vantage Velocity ATIS ipems CVO Platform Iteris Software Iteris Sensors 10 SPM VantageLive! Planning & Design Integration BPO Iteris Consulting Services 3rd Party Sources

11 A Smart Intersection at work Multi modal data Traffic volume data Signal phase data Travel time data 11

12 Iteris Services Iteris Apps A Smart City at work 3 rd Party Data Probe data Transit data Other sensors data Iteris Sensors Data Iteris Transportation Analytics Vantage Live! ATIS ipems SPM 12

13 Design Sensor Operations Planning Analytics Integration Target Market Growth Smart Transportation Market $3.9B growing to $5.1B in five years Design Planning $1,050 $800 $3,050 $2,400 CY 2016 CY 2020 Sensor Analytics $350 $200 $480 $350 CY 2016 CY 2020 Operations Integration $190 $120 $750 $500 CY 2016 CY 2020 Professional Services Hardware & SaaS Professional & Managed Services *Derived from actual pipeline analysis, competitive research, and third-party market research 13

14 Our Smart Transportation Growth Drivers Smart Cities design and implementation Connected and autonomous vehicle advisory services Smart Sensors intelligent edge processing Data aggregation and analytics services (subscription model) Intelligent operations management (BPO) 14

15 Click to edit Master title style Digital Agriculture $5T+ global market with significant structural challenges Climate Change, Population Growth, and Traceability require new approaches Industry focus on Big Data and Cloudbased services 15

16 Digital Agriculture Market Dynamics Industry Consolidation Declining Commodity Prices Acceleration of AgTech Investments Data Proliferation & Analytics 16

17 Supports the Ag Value Chain Product Irrigation Harvest Improve product efficacy, development, & marketing Optimize water use Optimize harvest timing and efficiency Smart Content Weather Water Atmospheric Models Radar 17 Satellite Soil Agronomic Models Weather Stations Global Hydrologic University & National Crop Land Surface Models IoT Equipment End Users

18 Smart Content Value Vertical Solutions Adapting to Market Maturity Digital Agriculture Evolution harvest irrigation product Predictive Prescriptive What should we do to make it happen What will happen Diagnostic crop Why did it happen soil Descriptive What happened water weather Difficulty 18

19 Why Customers Need Solution TAM Customer Benefit Product $235M Seed Companies Crop Protection Integrated Food Companies Reduce R&D costs and improve product performance Reduce product liability exposure (risk management) Manage regulatory compliance (e.g., product registration) Enhance Supply Chain optimization Enhance Marketing campaign ROI Irrigation $735M Irrigation Equipment Companies Water Districts Ag Service Providers Optimize rate and timing of irrigation to increase yields and reduce water and energy costs Optimize water applications in deficit irrigation situations Improve forecasting and delivery of water to farms Harvest $700M Harvest Equipment Companies Ag Service Providers Grain/Food storage & processors Reduce harvest logistics and drying costs Enhance marketing activities for perishable crops Improve harvest scheduling activities 19

20 Competitive Landscape Solution Competitors Product Internal Development Irrigation Harvest Farmers Practices Internal Models Basic Weather Content 20

21 International, Multi-Channel Customer Base Seed & Crop Protection Ag Software Ag Services 21

22 Iteris Agriculture Opportunity Highly-leveraged SaaS products: target GMs of 80% Interdisciplinary team of ~100 experts Software engineering, Data science, Meteorology, Agronomy, Hydrology, Epidemiology, Biology ClearAg Patent portfolio (18 issued and 36 pending) Pioneering the application of weather data, land surface modeling and machine learning techniques to agriculture Leverage from prior $25M+ of investments and development Strong product brand equity 22

23 Financials Cash & Cash Equivalents ($Millions) Cash & Equiv. Bank Debt EBITDA $18.7 $18.7 $20.4 $22.0 $16.0 $18.2 $Millions FY 13 FY 14 FY 15 FY 16 FY 17 EBITDA $3.2 $3.5 $(1.0) $(2.3) $(0.9) $11.8 Cash from Operations $Millions FY 13 FY 14 FY 15 FY 16 FY 17 $3.0 $0.6 $0.0 $0.0 $0.0 $0.0 $0.0 Cash from operations $3.2 $3.3 $3.6 $(4.1) $3.6 FY 11 FY 12 FY 13 FY 14 FY 15 FY 16 FY17 23

24 Key Statistics Trading Data (at ) Stock Price $ Week Low/High $4.12/$8.17 Avg. Daily Vol. (3 mos.) 204,377 Shares Outstanding 33.1M Public Float, est. 82% Institutional Holdings 32% Financial Highlights (at ) Total Revenues (ttm) $100.4M Cash & Equivalents (mrq) $14.9M Total Assets (mrq) $62.4M Total Debt (mrq) $0.0M Total Liabilities (mrq) $22.2M Cash Per Share (mrq) $0.46 Valuation Measures Market Cap $247M Enterprise Value $232M EV/Revenue (ttm) 2.1x Three-year revenue CAGR 12% Source: Capital IQ. ITI fiscal year ends Mar

25 Summary Strategic footprint in two high-growth, global markets Strong performance and favorable trends organic growth with new SaaS revenue Solid balance sheet $8M+ in free cash flow from core businesses 25

26 Thank You! NASDAQ: ITI 26