ITI_IR_Deck_Sep2019_v03[1]NASDAQ: ITI
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.
2
© 2019 Iteris, Inc. All rights reserved.
Iteris At-a-Glance • $100M+ total revenue for TTM ending Jun. 30 • $64M+ net bookings for TTM ending Jun. 30
— Transportation Systems added backlog: $57.8M (41% YoY Growth)
— Ag and Weather Analytics added backlog: $6.5M (46% YoY Growth)
• FCF from transportation funding SaaS initiatives • 400 Employees • More than 15,000 Customers • Strong IP – Over 75 Patents issued/pending • HQ Santa Ana, CA • NASDAQ: ITI
Digital Agriculture
Smart Transportation
$4B-$5B $1B-$2B
© 2019 Iteris, Inc. All rights reserved.
Megatrends Are Transforming Both Transportation and Agriculture
4
Emerging models depend on seamless data integration and advanced analytics
© 2019 Iteris, Inc. All rights reserved.
Smart Transportation
market dynamic
Iteris Smart Transportation Segments • $94.4M TTM revenue (combined 14%
segment-level OI margin)
• 275 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* • Strategic Partnership with Cisco
6
* Members include Bosch, Delphi, Ford, General Motors, Honda, State Farm, Toyota, Verizon
© 2019 Iteris, Inc. All rights reserved.
Pioneering Technology for 20+ years Defining the pathway to Connected Vehicles and Smart Cities
7
2000’s 2010 2011 2012 2013 2014 2015 2016 2017
Video / Computer vision
(CVRIA)
ST1
ST1 h.264 video Streaming
National Intelligent Transportation System
ST1
2020
2018 2019
© 2019 Iteris, Inc. All rights reserved. 8
D I G I T A L B A C K B O N E
Energy &
Utilities
Iteris Smart City Framework
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
© 2019 Iteris, Inc. All rights reserved. 9
Multi modal data Traffic volume data
Signal phase data Travel time data
…
Iteris Smart Corridor Solutions
3rd Party Data • Probe data • Transit data • Other sensors data
Iteris Transportation Analytics
Traffic Management Evolution
Intersections with advanced detection capture significant amount of data,
which is not stored, aggregated, shared or analyzed
TOC / TMC
be stored, aggregated, shared and analyzed
Pervasive inter- connectivity
Centers will exist in the Cloud, creating significant operating efficiencies
© 2019 Iteris, Inc. All rights reserved.
Target Market Growth Smart Transportation Market
$5.0B growing to $7.3B in five years
12
CY2018 CY2023 CY2018 CY2023 CY2018 CY2023
De sig
n Pl
an ni
© 2019 Iteris, Inc. All rights reserved.
Our Smart Transportation Growth Drivers
13
Connected and autonomous vehicle advisory services
Smart Sensors – intelligent edge processing
Data aggregation and analytics services (subscription model)
Intelligent operations management (BPO)
14
structural challenges
© 2019 Iteris, Inc. All rights reserved.
is helping Companies unlock the value of ‘E’ in their Digital Ag transformation
15
through Data Science
Genetics
Weather Soil CropWater
timing and efficiency
© 2019 Iteris, Inc. All rights reserved.
Why Customers Need
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
Soil moisture / 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 & Field Readiness
processors
• Reduce harvest logistics and drying costs • Enhance marketing activities for perishable crops • Improve harvest scheduling activities
© 2019 Iteris, Inc. All rights reserved.
Solution Competitors
International, Multi-Channel Customer Base
Allied Data Providers
Our Digital Ag Growth Drivers
20
Optimizing worksite readiness for Ag Equipment companies
Predicting harvest timing and quality resulting in reduced waste and improved efficiency across the food value chain
Delivering environmental intelligence to Allied Providers
Advancing sustainability practices throughout Ag
© 2019 Iteris, Inc. All rights reserved.
Balance Sheet (at 3/31/19)
$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)
© 2019 Iteris, Inc. All rights reserved.
Key Statistics
Avg. Daily Vol. (3 mos.) 223,708
Shares Outstanding 40.5M
EV/Revenue (ttm) 2.1x
Total Debt (mrq) $0.0M
Total Liabilities (mrq) $36.9M
Source: Capital IQ. ITI fiscal year ends Mar 31.
© 2019 Iteris, Inc. All rights reserved.
Summary
23
in two high-growth, global markets
Poised for growth and favorable trends
organic growth with new SaaS revenue
© 2019 Iteris, Inc. All rights reserved.
Thank You!
NASDAQ: ITI