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1 2018 Investor Day Geospatial Reporting Segment Ron Bisio
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Page 1: 2018 Investor Day

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2018 Investor DayGeospatial Reporting SegmentRon Bisio

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Trimble differentiation in Geospatial

• Transforms the full lifecycle• Creating the digital model of the physical earth• Software enables an ecosystem that creates customer value and builds

competitive moats

• Built around end-users• Diverse end market exposure• Driving replacement cycle of surveyor technology

• Technology innovation drives growth• Source of Trimble innovation in positioning, visualization and orientation technologies • Source of Trimble innovation in automation and autonomy

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3SW, Services, Recurring refers to software, services and recurring revenues. Recurring revenue includes subscription, maintenance and support revenues. Software & services includes perpetual licenses and professional services.Addressable market refers to the total potential market size for technology, and is comprised of those users that have the potential to be addressed by Trimble and its competitors. Addressable market is based on internal estimates.Penetration refers to the current market penetration of technology, and represents Trimble revenue + competitor revenue as a percent of the addressable market. Penetration is based on internal estimates.Note: a reconciliation of non-GAAP financial measures to the comparable GAAP results can be found on the investor relations website at www.trimble.com.

Market size

• Revenue: $659 million

• Revenue growth rate: +4%

• Non-GAAP operating margin = 19.6%

Segment financials (2017)

Revenue mix (2017)

Business mix Geography

HW/SW/Recurring

• Total addressable market: $5 billion

• Global penetration <50%

Software, Services

Go-to-market

Geospatial reporting segment overview

Hardware

Software, Services

Recurring

North America

Europe

Asia-Pacific

Rest of World

Surveying

Autonomy

OEM

<15% OEM

>85% End-user / aftermarket

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Physical to digital

• Market leading, highly accurate solutions for the measurement and digitization of our 3D world by focusing on an ecosystem tailored to the needs of our global, multi-disciplined customer base

Terrestrial, Aerial, Mobile Mapping

Industry challenges

• Increasing demand for decision making with a geospatial context

• Continued pressure for timely and accurate data

• Need to deliver answers from disparate data sources

Geospatial context is transforming industries

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Trimble integrates physical to digital workflows

Terrestrial Aerial Mobile mapping

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• Emerging businesses

• Geographic expansion

• Enterprise sales

• Large projects

• Penetration/share of wallet

• Technology integration

• Technology extension

• Leverage domain, channel, brand• Humility and caution

Ne

wEx

isti

ng

PR

OD

UC

TS /

TEC

HN

OLO

GIE

S

Existing New

INDUSTRY/GEOGRAPHY/CUSTOMERS

Driving innovation across the Geospatial Ecosystem

Expanding into under penetrated emerging

markets

Pursuing autonomous vehicle opportunity across development, prototyping

and production phases

Growth through focus on end market needs

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Innovating to drive technology replacement cycle

Integrated surveying

• Enabling surveyors to diversify by offering scanning and image collection services to their customers

• Driving innovation increases the replacement cycle and the addressable market

• Integrated surveying and scanning solutions are highly leveraged by Trimble Building and Infrastructure business

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Growing software revenueand evolving to the cloud

• Customers benefit from integrated field and office software, positioning services and industry-leading GNSS

• Domain-rich software, positioning services and a global distribution network provide a significant barrier to entry for low-cost GNSS competitors

• Integrating UAV, mobile mapping and traditional survey data into a single software/cloud-based workflow dramatically improves productivity

Geospatial field & office software ecosystem buildscompetitive moats

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Trimble solution range maps to commercialization stage of autonomy efforts

Autonomy opportunity

• Mobile mapping solutions to precisely capture road infrastructure

• Inertial, OEM and correction services well positioned as autonomy evolves through test/development and prototyping phases into production roll-out

Innovation in autonomy: opportunity spans from capture of road corridor infrastructure to critical enabling technologies

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Growth example: emerging markets provide significant potential

Emerging markets

• Higher addressable market growth rates as new technology is adopted

• Pursuing opportunities with fit-for-market solutions, pricing and distribution network

• Leveraging dual brand strategy as a gateway to the Trimble brand

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Case study: one of North America’s largest surveying & engineering companies is leveraging Trimble cloud solutions to optimize surveying operations

Customer requirements Trimble value delivery

• Drive consistency across hundreds of field crews across the country

• Increase deliverable quality and decrease time to deliverable

• Automate repetitive tasks and alerting office personnel to potential data issues

• Cloud-based transfer of data between field and office

• Movement of manual desktop software processes to the cloud

• Custom workflow definition to facilitate automated QA and data preparation

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• Technology penetration

• Geographic expansion

• Integrated offerings

• Account management

• Recurring/subscription SW model expansion

• Innovation (e.g., autonomy)

Large and global addressable

markets…

…with attractive set of growth drivers

Surveying &mapping

Autonomy OEM+ + Geospatial=

…enables Trimble to outperform underlying industry growth

The addressable market opportunity in Geospatial is compelling

Addressable market refers to the total potential market size for technology, and is comprised of those users that have the potential to be addressed by Trimble and its competitors. Addressable market is based on internal estimates.Penetration refers to the current market penetration of technology, and represents Trimble revenue + competitor revenue as a percent of the addressable market. Penetration is based on internal estimates.Source: Company analysis.

$4B <$1B $1B $5B

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<50%

Addressable market refers to the total potential market size for technology, and is comprised of those users that have the potential to be addressed by Trimble and its competitors. Addressable market is based on internal estimates.Penetration refers to the current market penetration of technology, and represents Trimble revenue + competitor revenue as a percent of the addressable market. Penetration is based on internal estimates.Source: Company analysis.

AutonomySurveying OEM

New product categories(e.g., SX10)

Optical,GNSS Receivers, GIS

Embeddedtechnologies

AutonomyNew product categories

Network effect opportunities

• Software:hardware

• Digital:physical

• Office:field

• Integratedofferings

Global

GlobalEmbedded technologies

Global

Inertialtechnologies

Optical, GNSS Receivers, GIS

Developed economies

Rest of world

Low technology penetration

Geographic penetration opportunity

+<25% <75%

<75%

<75% <50%

Significant penetration opportunity in Geospatial

<50%

<50%

<33%

<33%

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Joint ventures & dealer partnerships

Interoperability

Direct sales & e-commerce

Market reach: unmatched scale and scope

~200Distribution

partners

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Trimble differentiation in Geospatial

• Transforms the full lifecycle• Creating the digital model of the physical earth• Software enables an ecosystem that creates customer value and builds

competitive moats

• Built around end-users• Diverse end market exposure• Driving replacement cycle of surveyor technology

• Technology innovation drives growth• Source of Trimble innovation in positioning, visualization and orientation technologies • Source of Trimble innovation in automation and autonomy

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2018 Investor DayBuildings & Infrastructure Roz Buick, Ph.D.

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• Transforms the full lifecycle• Plan design engineer estimate construct operate• Uniquely connecting digital and physical worlds• Impacting hundreds of billions in capital projects and millions of users

• Built around end-users• >95% end-user revenue; <5% OEM revenue• Serving the “mixed fleet” globally• Delivering productivity within tasks and across systems

• Technology innovation drives growth• More than 50% software, services and recurring revenue• $17B addressable market with low penetration and attractive adjacencies

Trimble differentiation in Buildings and Infrastructure

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18SW, Services, Recurring refers to software, services and recurring revenues. Recurring revenue includes subscription, maintenance and support revenues. Software & services includes perpetual licenses and professional services.Addressable market refers to the total potential market size for technology, and is comprised of those users that have the potential to be addressed by Trimble and its competitors. Addressable market is based on internal estimates.Penetration refers to the current market penetration of technology, and represents Trimble revenue + competitor revenue as a percent of the addressable market. Penetration is based on internal estimates.Note: a reconciliation of non-GAAP financial measures to the comparable GAAP results can be found on the investor relations website at www.trimble.com.

Market size

• Revenue: $829 million

• Revenue growth rate: +12%

• Non-GAAP operating margin = 21.2%

Segment financials (2017)

Revenue mix (2017)

Business mix Geography

HW/SW/Recurring

• Total addressable market: $17 billion

• Global penetration <33%

Go-to-market

Buildings and Infrastructure reporting segment overview

Building Construction

Civil Engineering & Construction

Hardware

Software, Services

Recurring

North America

Europe

Asia-Pacific

Rest of World

<5% OEM

>95% End-user / aftermarket

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Large, siloed and inefficient Skilled labor shortages

Poor communication, planning and collaboration

Increasing technology, acceptance and ubiquity

The construction industry is transforming

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CONNECTED

CONSTRUCTION

Mixed fleet & interoperability

• Machines & vehicles

• Tools

• Labor

• Interoperable models

Customer ROI

• Task productivity

• System productivity

• Quality

• Safety

• Visibility

• Sustainability

Connected construction integrates workflow and stakeholders

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Own, operate& maintain

Fabricate & construct

Schedule & project manage

Design & engineering

Estimate, bid & award

Procure & deliver

Plan & feasibility analysis

To connect construction we serve the entire lifecycle

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Trimble constructible models transform workflow

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Machine control Labor, equipment and materials management

Accurate layout Production tracking

Inspection Quality assurance

Field workflows — do the work & capture progress

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One-Stop-Shop for General Contractors, Civil and Sub-Contractors

Arch.

Sub.

PM

Office

Team

CFO

OwnerEngineer Super QA

“Serial Owners” and enterprise General Contractors demanding dedicated project management software

Owner solutions Construction management systems

Program Management

Platform

Planning

Operations

Construction Procurement

Design

Field

Project management and controls for owners & contractors

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Between stakeholdersOwner ⇔ architect-engineer ⇔General contractors ⇔ sub-contractors

In the officeBusiness ⇔ project/team ⇔ fieldBetween departmentsBuilding product manufacturer supply

In the fieldScope ⇔ actual ⇔ handover Labor ⇔ equipment ⇔materialsModels/production vs. documents

Reporting

Procurement

Job Cost

Scheduling Labor

Material

Equipment

Instrument

Supervise

FabricationPre-fab

Project capital program management

Project document & contracts management

Production schedule, work order mgmt

as-built QA

Trimble connected construction delivers systemproductivity by optimizing project delivery

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Transforms task / system productivity while enabling a project performance ecosystem

Conceptual plan Design & engineering Estimate & procure Fabricate & construct

Electrical

model

Structural

model

Mechanical

model

Detailed

AE model

Trimble Connect

> 1 million users > 60 integrations

Trimble connect streamlines coordination

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20% improvement

in excavation productivity

Improving productivity

“The system worked great from the first day. It is amazing for what it can do all around.”

Rock Structures Utility & Excavating

“With this system, you don’t have to slow down [to hit grade]. It will make our operators at least 20% faster.”

Beaver Excavating 40% to 50% faster

with Trimble Earthworks

+ improved accuracyfinal grade to 3/10”

reduces over-excavation

and yields 50% less

backfill

Our value is transformative to the client’s business

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15%productivity hike in concrete rebar

”Partnering with Trimble is instrumental in helping us achieve our efficiency goals.”

Barton Malow Company

Over 90% fabricated offside

50% less labor required

Over $1M costs savings

”There is a real need for intelligent, fabrication-ready models that have the actual system components included.”

North Mechanical Contracting

Our value is transformative to the client’s businessImproving productivity

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33% reduction

in wasted material

”Trimble software has enabled us to reduce concrete waste by 33%.”

Haselden Construction

Efficiency through integrated workflowsOur value is transformative to the client’s business

$100 million Project Cost Savings

“e-Builder has made it much easier to coordinate schedule and manage the program. In short, everything is handledthrough e-Builder on thisProgram.”

Inova

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30Addressable market refers to the total potential market size for technology, and is comprised of those users that have the potential to be addressed by Trimble and its competitors. Addressable market is based on internal estimates.Penetration refers to the current market penetration of technology, and represents Trimble revenue + competitor revenue as a percent of the addressable market. Penetration is based on internal estimates.Source: Company analysis.

Large and global addressable

markets…

…with attractive set of growth drivers

+ + Construction=

• Technology penetration

• Geographic expansion

• Integrated offerings

• Account management

• Recurring/subscription SW model expansion

• Innovation

BuildingConstruction

CivilConstruction

Program / Project

Management

…enables industry outperformance scaling from marketleadership position of > $1B in revenues

Trimble + e-Builder + Viewpoint

The addressable market opportunity in Buildings & Infrastructure is compelling

$8B $4B $5B $17B

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<50%

<50%

<25%

<25%<25%

Low technology penetration

Geographic penetration opportunity

Addressable market refers to the total potential market size for technology, and is comprised of those users that have the potential to be addressed by Trimble and its competitors. Addressable market is based on internal estimates.Penetration refers to the current market penetration of technology, and represents Trimble revenue + competitor revenue as a percent of the addressable market. Penetration is based on internal estimates.Source: Company analysis.

+

Building construction

Civil construction /machine control

Building and civilconstruction

ExcavatorDozers /graders

Program / projectmanagement

Constructible model

Dozers / graders

Network effect opportunities

• Software:hardware

• Constructible BIM

• Digital:physical

• Office:field

• Integrated offerings

Global

N. America/Australia

Rest ofworld

Program / project management

Global

Constructible model

Excavator

Global

<25%

<25%

Low penetration in Buildings and Infrastructure provides upside

<33%

<50%

<50%

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Technology innovation in Buildings & Infrastructure

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~500Direct sales personnel

~50%Revenues by

e-commerce B2B +B2C

~120 Dealer partnerships

Joint ventures & dealer partnerships

Interoperability

OEM relationshipsfor mixed fleet

Direct sales & e-commerce

Market reach: unmatched scale and scope

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$

$

10,000+ contractors rely on Trimble field technology

Specialty contractors

500,000+ heavy equipmentwith Trimble technology

Equipment & field Operations

$300 billion and 250,000 capital projects managed with Trimble

Architect - engineer - general contractor

Owner

Trimble can connect:

5 million+ people using Trimble software for design & construction

• Physical & digital worlds

• Construction supply chain from owner to general contractor to specialty contractor

• Automate payments & progress measurement from owner to GC to operator paycheck

Connected construction network effect opportunity :unmatched ecosystem coverage

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• Transforms the full lifecycle• Plan design engineer estimate construct operate• Uniquely connecting digital and physical worlds• Impacting hundreds of billions in capital projects and millions of users

• Built around end-users• >95% end-user revenue; <5% OEM revenue• Serving the “mixed fleet” globally• Delivering productivity within tasks and across systems

• Technology innovation drives growth• More than 50% software, services and recurring revenues• $17B addressable market with low penetration and attractive adjacencies

Trimble differentiation in Buildings and Infrastructure

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2018 Investor Daye-Builder OverviewRon Antevy

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e-Builder company overview

Cost & schedule overruns

Manual processes

Limited transparency

Poor stakeholder integration

Uninformed decisions due to disparate data

Process inconsistency

Common business challenges

Program Management

Platform

Business results

Optimized productivity & efficiency

Reduced costs &higher profitability

Improved risk management & compliance

Increased automation & lowered cycle times

Enhanced collaboration & communication

Capital program management improves project outcomes through better visibility and process control

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2017 Business profile (Pre-Trimble)

>25%5 Yr. revenue

CAGR

Based in Florida, USA

with 230+ employees

~$53M2017

Revenue

>25%2017

EBITDA

105%Net

retention

>65%SaaS revenue

1995: Founded with Jon Antevy’s Master’s thesis

2002: Focus shifts to owners

Early yrs. (‘95–‘05)$2.2MFY 2005A

Revenue

Growth (‘06–’17)$53M

FY 2017A

Revenue

2001: Profitable

2017: North America leading

owner PMIS

$300B+Projects

managed

>100,000Users

e-Builder company history & business profile

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Extend customer reach with Trimble

Richer value proposition with Trimble constructible

model and field technologies

Compelling possibilities with Viewpoint workflows

• International markets, large general contractors, State Departments of Transportation

• Owner influence on contractor technology selection

• Accelerate payments and reduce change order risk

• Real-time progress data and early issue detection

• Improved efficiency between project participants reduces cost and schedule

• Reduce risk and increase transparency by eliminating duplicate data entry

• Accelerate time to payment for the contractor while reducing risk and cost for the owner by providing accurate project progress and financial data

Compelling growth opportunities

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Page 41: 2018 Investor Day

Construction productivity through office, team and field Integration

vs.

× Distributed & complex workflows create inefficiencies, resulting in project delays

× Lack of collaboration between contractor, project team, and job site

× Disparate, manual processes and workflows

× Prone to significant error and information loss

Key issues

Connects data and workflows, between office, team, and field

Collaborative solutions connect contractor HQ, project team, and job site

Enables productivity and minimizes errors

Project transparency leads to faster results

One central platform for all workflows

Owner

Sub.

Arch.

Super

Project Manager creates change order

PM

Send

s cha

ng

e ord

er via

ema

il to o

wn

er

Calls subcontractor on change order request

Foreman emails Engineer, who accidentally deletes message

Owner does not respond to change order request

Architect sends new drawings via email

Emails PM to request update for Sub

Key benefits

Arch.

Sub.

Engineer

PM

Office

Team Field

Super

CFO

QA

Executive and business mgmt. Team Project ecosystem incl. owners & subs Field Job site project resourcesKey:

BEFORE

Disconnectedworkflow

AFTER

Integrated workflow

with Viewpoint

Engineer

Owner

Office

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Page 42: 2018 Investor Day

Viewpoint at a glance

1. Excludes the impact of fair value accounting of Viewpoint’s deferred revenue.; 2. Reflects addressable market; 3. Source: Viewpoint internal construction volume analysis.; 4. Dollar retention on North American office solutions (Vista and Spectrum). Represents increased revenue from customer upsells and price increases, less reduced revenue from churn.; 5. Recurring revenue includes SaaS, maintenance, and hosting revenue.; 6. Source: Viewpoint.7. Reflects Team, Field, and Cloud ERP solutions as of February, 2018.; 8. Represents year over year growth from Q1 2017 to Q1 2018 of SaaS bookings.; 9. Reflects named customers of the flagship Vista and Spectrum product lines.

Company overview Key business highlights

≈$200M2019P non-GAAP revenue1

>$50M2019P Operating cash flow

≈$3B+Market opportunity2

>$250B+Construction volume3

≈105%+Net dollar retention4,6

≈70%Recurring revenue5,6

≈8,000Customers worldwide6

420,000+Total users6,7

128%SaaS bookings growth6,8

>95%Customer retention6,9

▪ 40+ year history exclusively focused on construction software

▪ Provides the industry's only construction management solution for multiple verticals that links pre-construction, operations, accounting and resource management, project team collaboration and mobility

▪ Natively integrates customers’ field and projects with back office controls for full project visibility

▪ Deeply embedded solutions, serving contractor workflows across General Contractors (GCs), Heavy Civil Construction, and Specialty Contractors (e.g. mechanical, electrical, and plumbing (MEP))

▪ Unique scale and market presence across all construction verticals with 46% customer penetration into ENR400 (largest GC’s) and 34% customer penetration into ENR600 (Largest MEPs and Specialty contractors)6

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Compelling growth opportunities

Extend customer reach with Trimble

Richer valuation proposition with

Trimble constructible model and field

workflows

International expansion

Share of wallet from integrated solutions that connect Trimble field activities to financial tracking of contracts, resources and costs in Viewpoint

Interoperability: Trimble estimating and content-enabled procurement with Viewpoint financial, MRP, and project management

Integration: Viewpoint project and financial controls with Trimble labor, equipment and materials tracking to optimize equipment utilization, labor workforce management, resource availability and cost allocations

Collaboration: Viewpoint workflows in Trimble Connect for lifecycle collaboration

Data transparency provides Owners with near real time visibility into project progress and delivery, including progress to budget

Data transparency enables network effects by driving bilateral (contractor/owner) demand for Viewpoint and e-Builder solutions

Compellingpossibilities with

e-Builder workflows

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Why Trimble?

accelerates vision ideal cultural fit


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