Trimble Inc. · NASDAQ:TRMB
Trimble — Investor Presentation (September 2023)
25 slides from Trimble's investor presentation, September 2023
Slide 1: Trimble Inc. Investor Presentation September 2023
Trimble Inc. Investor Presentation September 2023 © 2023 Trimble, Inc - All Rights Reserved - Confidential and Proprietary Information
Slide 2: Forward-looking statements
Forward-looking statements Certain statements made in this presentation and any subsequent Q&A period are forward-looking statements, within the meaning of Section 21E of the Securities Exchange Act of 1934, as amended, and are made pursuant to the safe harbor provisions of the Securities Litigation
Slide 3: Trimble at a glance
Trimble at a glance Company Financial Highlights ● Integrated technology and software Revenue $M Annualized recurring revenue $M provider to the world’s largest industries ● >1,000 unique patents; $3,132 $3,271 $3,152 $3,659 $3,676 $1,107 $1,193 $1,296 $1,409 $1,604 $2,649 >$540 million/year on R&D
Slide 4: Investment Highlights
Investment We have We are purpose driven 1 Highlights 5 a compelling business model We serve We have attractive markets 2 4 the right team 3 We have a differentiated strategy 4
Slide 5: Investment highlights
1 We are purpose driven ● Enabling our customers to do their life’s work, better ● Delivering compelling customer outcomes: better, faster, safer, cheaper, greener 2 We serve attractive markets Investment ● Serving $64B addressable global market highlights - underserved and underpenetrated ● Focusin
Slide 6: Investment highlights
4 We have the right team ● Building and nurturing a world class culture ● Executing our Connect & Scale strategy with disciplined capital allocation Investment highlights 5 We have a resilient and compelling business model ● Growth potential in the form of market growth + penetration + cross-sell +
Slide 7: We serve industries that improve how we live, eat and move
We serve industries that improve how we live, eat and move for a better quality of life and a better world Construction Geospatial Transportation Agriculture Building tomorrow’s Building a digital model of Delivering the goods Enabling a safe and infrastructure the earth of commerce reliable food su
Slide 8: Technology company, by design
Technology company, by design >1,000 13–15% of sales domain experts spent on R&D >1,000 >65% of R&D unique patents in software >4,600 employees >$540M in R&D of 2022 R&D spend Investing in analytics, cloud, autonomy
Slide 9: Trimble is transforming the way the world works
Trimble is transforming the way the world works 9
Slide 10: We leverage our technology stack across Trimble
We leverage our technology stack across Trimble, Physical Digital which enables us to competitively differentiate at the intersection of the physical and digital worlds Geometry: Customer outcomes: Positioning and Analytics and Optimization Sensing 1978 - present 2020 - present Attributes: Planning
Slide 11: Trimble Construction is uniquely positioned to connect the digital and physical worlds
Physical Trimble Construction is uniquely positioned Digital to connect between the digital and physical worlds Positioning, Construction Sensing & Control, Management, Business Field Data Analytics and Optimization Sensing, measuring & Enterprise resource planning, dynamically controlling in a sche
Slide 12: Trimble Agriculture is uniquely positioned to connect the digital and physical worlds
Physical Trimble Agriculture is uniquely positioned Digital to connect between the digital and physical worlds Field Execution Reporting Automating equipment to Visualization of operations for accurately execute operations financial and sustainability tasks in the field reporting Common Data Environ
Slide 13: Trimble Transportation is uniquely positioned to connect the digital and physical worlds
Physical Trimble Transportation is uniquely positioned Digital to connect between the digital and physical worlds Equipment location & status updates, driver Order to Cash, Business workflows, and compliance Analytics and Optimization Near real time positioning, Enterprise resource planning, fault c
Slide 14: Connect & Scale is our customer-driven strategy
Connect & Scale is our customer-driven strategy to unlock the growth potential of Trimble Workflows Data / Models Connect Scale ● Lifecycles Products & ● Systems Services ● Workflows GTM ● Processes Industry Partner ● Solutions GTM Ecosystem ● Structure ● Data ● Culture User Platform Experience Deve
Slide 15: Connect & Scale transforms how we do business
Connect & Scale transforms how we do business and deliver breakthrough customer value Past Present Future Point solution Solution Bundles Ecosystem Product strategy Trimble HW or SW Trimble HW and SW XaaS Trimble & Partners Systems Customer value Task optimization optimization delivery “Book & burn”
Slide 16: The breadth and depth of Trimble's reach into served markets
The breadth and depth of Trimble’s reach into served markets provides the basis for a unique strategy to transform the way the world works ● >$1 trillion of capital funding managed with our technology ● >$500 billion of construction project value managed through our ERP Construction ● Majority of EN
Slide 17: Our go to market strategy is evolving
Our go to market strategy is evolving to provide customers a unified customer experience while optimizing global reach Point products -> Subscription bundles Unified Platform Customer Experience Division Division Division Division 1 2 3 4 Industry offers/services Ecosystem, partner value-add (develo
Slide 18: We deliver industry transformation better, faster, safer, cheaper, and greener
We deliver industry transformation better, faster, safer, cheaper, and greener 80/30 40/1 90/5 40/15 (1) (2) (3) (4) MMtCO2e/% efficiency MMtCO2e/% efficiency MMtCO2e/% efficiency MMtCO2e/% efficiency gains per year gains per year gains per year gains per year Fewer passes on Improved capacity Most
Slide 19: We have set ambitious carbon reduction goals
We have set ambitious carbon reduction goals for ourselves in line with the Paris Agreement and a net-zero future by 2050 SCIENCE BASED TARGETS: Transforming the Way We Work SCIENCEBASEDTARGETS.ORG Trimble solutions continue to support our customers 2030 + BEYOND to achieve their own climate goals 2
Slide 20: Revenue Breakdown - TTM Q2'23
Revenue Breakdown - TTM Q2’23 Subscription / SaaS Recurring approx. $990M (1) approx. $1,495M Included Software, Services, (Note: ARR=$1.88B) in ARR Recurring Maintenance & Support approx. $2,335M approx. $505M Term license approx. $200M Software, Professional Services, Other Perpetual license appro
Slide 21: Trimble's Financial Model Key Highlights
Trimble’s Financial Model Key Highlights We have transformed our … and our Connect & Scale business and financial model strategy points the way for over the last 10 years and continued and accelerated created significant transformation and value shareholder value… creation in the years ahead The fol
Slide 22: Business model evolution over time
Business model evolution over time Our business model has evolved with higher software, recurring revenue and significantly improved profitability Revenue ($ Millions) Annualized Recurring Revenue ($ Millions) Adjusted EBITDA ($ Millions) SW/Services/Recurring Revenue ARR Recurring % total Adjusted
Slide 23: Revenue mix
Revenue mix Trimble end markets are end-user/aftermarket focused and have a growing mix of software 2021 Aftermarket vs. OEM Revenue Mix by Segment 2021 Revenue Mix by Segment <5% <5% <15% <10% <25% 37% 18% >95% >95% >85% >90% >75% 45% Buildings & Geospatial Transportation Resources & Trimble Buildi
Slide 24: Margin expansion over time
Margin expansion over time Over time our margins have improved while we have continued to invest in future growth Adjusted EBITDA Margin Progression Over Time Drivers of margin growth: ● Gross margin % up > 500 1.9% 0.6% 0.1% bps; higher mix of software 5.2% 25.6% and competitive innovation (2.1)% ●
Slide 25: Going forward for the next 5 years: financial model drivers and implications
Going forward for the next 5 years: financial model drivers and implications Financial Model Drivers Financial Outlook Implications 1 We will have sustained high ARR growth The markets we serve are poised for 1 sustained growth Software and recurring will continue to grow as 2 % of total mix Our str