ITERIS CONFIDENTIAL AND PROPRIETARY INFORMATION © 2020 Iteris, Inc. All rights reserved.
Investor PresentationFebruary 2020
NASDAQ: ITI
ITERIS CONFIDENTIAL AND PROPRIETARY INFORMATION © 2020 Iteris, Inc. All rights reserved.
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 1995. 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 forward-looking 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.
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ITERIS CONFIDENTIAL AND PROPRIETARY INFORMATION © 2020 Iteris, Inc. All rights reserved.
Iteris At-a-Glance
• $109M+ total revenue for TTM ending Dec. 31– 25% of Total Revenue is Recurring Revenue (ARR)
• $117M+ total net bookings for TTM ending Dec. 31
• Targeted investments in SaaS initiatives
• 440 Employees
• More than 15,000 Customers
• Strong IP – Over 75 Patents issued/pending
• HQ Santa Ana, CA
• NASDAQ: ITI
Digital Agriculture
Smart Mobility
$5.1B $1.7B
Strategic Footprint in Large and Dynamic Markets
Note: ITI fiscal year ends Mar 31
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ITERIS CONFIDENTIAL AND PROPRIETARY INFORMATION © 2020 Iteris, Inc. All rights reserved.
Smart Mobility
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ITERIS CONFIDENTIAL AND PROPRIETARY INFORMATION © 2020 Iteris, Inc. All rights reserved.
Iteris Smart Mobility Segments
• $102.9M TTM revenue (combined 15% segment-level OI margin)
• Market leader in emerging IoT segment
for transportation infrastructure
• 322 employees 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; 1,000s of counties & municipalities
• Expanding suite of data aggregation and
analytics solutions
• Demonstrated record of technical leadership
• >20 patents issued or submitted
• USDOT Connected Vehicle Reference
Architecture Design
• Valuable strategic partnerships (e.g., Cisco
Systems)
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ITERIS CONFIDENTIAL AND PROPRIETARY INFORMATION © 2020 Iteris, Inc. All rights reserved.
Estimated Market Size and Growth
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The Smart Mobility Infrastructure Market is estimated at $5.1B in 2020 growing to $8.7B by 2025
Data derived from actual pipeline analysis, competitive research, and third-party market research
$605
$1,139
$1,050
$770
$360
$440
$550$220
$-
$1,000
$2,000
$3,000
$4,000
$5,000
$6,000
Traffic Sensors & Equipment
Transportation Planning
Design & Integration
SignalOperations
TransportationAnalytics
Network Monitoring & Operations
Road Safety& Security
Commercial Vehicle
Operations
$1.8B of the 2020 TAM represents potential recurring revenue
Growth Drivers:• Aging physical infrastructure• Outdated and inadequate
technology• Significant increase in traffic
congestion and fatalities• Urbanization, growth, and
regional competition• Adoption of connected and
electric vehicles
ITERIS CONFIDENTIAL AND PROPRIETARY INFORMATION © 2020 Iteris, Inc. All rights reserved.
Key Customer Challenges Drive Market Requirements
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Technology Proliferation
Technical Complexity
Inadequate Communications
InfrastructurePrivacy & Security
Skills Gap
Future-Ready
Intelligence
Plug-and-Play
Cloud-Enabled
ITERIS CONFIDENTIAL AND PROPRIETARY INFORMATION © 2020 Iteris, Inc. All rights reserved.
Iteris ClearMobility™ Platform
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SERV
ICES
Management OperationsPROCESS
INTELLIGENCE
Iteris
Con
sulti
ng S
ervi
ces
3RDPa
rty
Serv
ices
APPL
ICAT
ION
S
Network Monitoring
Asset Management
Traveler Information
Transportation AnalyticsSOFTWARE
Commercial Vehicle
Operations
INFR
ASTR
UCT
URE
DATA
COMMUNICATIONCell FiberBluetooth Wi-FiN
ETW
ORK
5G
DAS
HBO
ARD
S
Multi-Modal Analysis • Hot Spot Analysis • Weather Analysis Traffic Intelligence • Intersection Intelligence • Corridor Intelligence • Network Intelligence
Commercial Vehicle Operations
Roadway Sensors Other Equipment
Clou
d En
able
d
Other Data Feeds
Mesh
ITERIS CONFIDENTIAL AND PROPRIETARY INFORMATION © 2020 Iteris, Inc. All rights reserved.
Iteris ClearMobility™ Platform
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• Context aware intelligence provides critical smart mobility insights
• Managed services operate mission critical workflow on-premise or remote
• Apps analyze large data sets to support key operations and planning activities
• Design and integration services connect intersections to the Cloud and each other for visibility to entire network
• State-of-the-art sensors provide complete view of the transportation network
Management Operations
Network Monitoring
Asset Management
Traveler Information
Transportation Analytics
Commercial Vehicle
Operations
Cell FiberBluetooth Wi-Fi 5G
Roadway Sensors Other Equipment Other Data Feeds
Mesh
Multi-Modal Analysis • Hot Spot Analysis • Weather Analysis Traffic Intelligence • Intersection Intelligence • Corridor Intelligence • Network Intelligence
Commercial Vehicle Operations
ITERIS CONFIDENTIAL AND PROPRIETARY INFORMATION © 2020 Iteris, Inc. All rights reserved.
The Iteris Advantage
Most future-ready product and service portfolio leverages decade plus experience managing US DOT’s CAV reference architecture
Advanced analytics reflect a unique combination of technical skills, domain knowledge, and big data expertise
Recognized best-of-breed products and services that can be bundled together effortlessly to create end-to-end solutions
Cloud approach enables customers to leverage their legacy investments, realize operating efficiencies, and enhance performance of transportation network
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Future-Ready
Intelligence
Plug-and-Play
Cloud-Enabled
ITERIS CONFIDENTIAL AND PROPRIETARY INFORMATION © 2020 Iteris, Inc. All rights reserved.
Iteris Smart Mobility Strategic Objectives
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Streamline / automate workflow
Sustain double digit revenue growth
Increase share of recurring revenue
Expand operating margin
Increase scale of operation
ITERIS CONFIDENTIAL AND PROPRIETARY INFORMATION © 2020 Iteris, Inc. All rights reserved.
Digital Agriculture
ITERIS CONFIDENTIAL AND PROPRIETARY INFORMATION © 2020 Iteris, Inc. All rights reserved.
is helping Companies unlock the value of ‘E’ in their Digital Ag transformation
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is pioneering the Environmental
piece in this transformation
Digital Ag is transforming the world of Agriculture
through Data Science
across all 3 key factors
Genetics
Management Environment
ITERIS CONFIDENTIAL AND PROPRIETARY INFORMATION © 2020 Iteris, Inc. All rights reserved.
Applying E-Intelligence to Gain Insight
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OPERATIONS INSIGHTS
PRODUCT INSIGHTS
LOCATIONS INSIGHTS
AGRONOMIC INSIGHTS
SOIL CONDITIONS
WEATHER CONDITIONS
SENSOR INTEGRATION
ENVIRONMENTAL CONDITIONS
ENVIRONMENTAL DATA
PRE-PACKAGED MODELS
INDICES & NOTIFICATIONS
‘E’ IMPACT ANALYSIS
MODEL CREATION OR ENHANCEMENT
ITERIS CONFIDENTIAL AND PROPRIETARY INFORMATION © 2020 Iteris, Inc. All rights reserved.
International, Multi-Channel Customer Base
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Seed & Crop Protection
Farm ManagementInformation Systems
Ag Services
Select Customers by Business Category
Allied DataProviders
ITERIS CONFIDENTIAL AND PROPRIETARY INFORMATION © 2020 Iteris, Inc. All rights reserved.
Our Digital Ag Strategic Priorities
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Pursue all options to maximize shareholder value
Achieve breakeven performance
Continue to increase account penetration
Continue to promote pre-packaged models
Further develop leadership in E-Intelligence space
ITERIS CONFIDENTIAL AND PROPRIETARY INFORMATION © 2020 Iteris, Inc. All rights reserved.
Financial Objectives
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Double digit revenue growth
Increased mix of annual recurring revenue
Operating margin and adjusted EBITDA margin positive
Disciplined capital allocation to drive higher return on invested capital
Convert >100% of GAAP net income to cash starting in FY21 (begins April 2020)
ITERIS CONFIDENTIAL AND PROPRIETARY INFORMATION © 2020 Iteris, Inc. All rights reserved.
Summary
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Business Model Improvements
Strategic footprint
Improved revenue predictability AND
Positive cash flow from operations in FY21
Unique, highly valuable expertise
Favorable secular trends
Double digit revenue growth with increasing mix of ARR
ITERIS CONFIDENTIAL AND PROPRIETARY INFORMATION © 2020 Iteris, Inc. All rights reserved.
Thank You.
NASDAQ: ITI
ITERIS CONFIDENTIAL AND PROPRIETARY INFORMATION © 2020 Iteris, Inc. All rights reserved.
Key Statistics
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Trading Data (at 2-3-20)
Stock Price $5.1152 Week Low/High $3.81/$6.69
Avg. Daily Vol. (3 mos.) 143,187
Shares Outstanding 40.6M
Public Float, est. 93%
Institutional Holdings 48%
Market Cap $208M
Financial Highlights (at 12-31-19)
Total Revenue (ttm) $109.3MCash & Equivalents $10.2MShort-term Investments $17.1MTotal Assets $102.1MTotal Debt $0.0MTotal Liabilities $40.1MCash & Short-term Investments Per Share $0.67
Source: Capital IQ. ITI fiscal year ends Mar 31.
ITERIS CONFIDENTIAL AND PROPRIETARY INFORMATION © 2020 Iteris, Inc. All rights reserved.
Balance Sheet (at 3/31/19)
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EBITDA
$11.8
$18.7 $18.7
$20.4
$22.0
$16.0
$18.2
$15.5
$9.0
$3.0
$0.6$0.0 $0.0 $0.0 $0.0 $0.0 $0.0 $0.0
FY 11 FY 12 FY 13 FY 14 FY 15 FY 16 FY 17 FY 18 FY 19
Cash, Cash Equivalents & Short-term Investments ($Millions)
Cash & Equiv. Bank Debt
Cash from Operations
$Millions FY 15 FY 16 FY 17 FY 18 FY 19
EBITDA $(1.0) $(2.1) $(3.6) $(3.8) $(5.9)
$Millions FY 15 FY 16 FY 17 FY 18 FY 19
Cash from
operations$3.6 $(4.1) $2.9 $(0.3) $(5.8)
As of 12/31/19, Cash & Equivalents + Short-term Investments = $27.4M