Quarterhill Inc · TSX:QTRH
Quarterhill — Shareholder Meeting (May 2023)
22 slides from Quarterhill's shareholder meeting presentation, May 8, 2023
Slide 1: Annual Meeting
Annual Meeting May 8, 2023 TSX: QTRH OTCQX: QTRHF
Slide 2: Shareholder's Meeting: Formal Business
Shareholder’s Meeting FORMAL BUSINESS John K. Gillberry Chair, Board of Directors Interim CEO 2
Slide 3: Matters to be Considered / Voted On
Matters to be Considered / Voted On ▪ Presentation of Quarterhill’s Financial Statements for 12 months ended December 31, 2022 ▪ Election of Members to Quarterhill’s Board of Directors ▪ Appointment of Ernst & Young LLP as Quarterhill’s Auditors for Fiscal 2023 and Authorization of Quarterhill’s Boa
Slide 4: Nominees to Quarterhill's Board of Directors - 2023
Nominees to Quarterhill’s Board of Directors - 2023 ▪ Roxanne Anderson ▪ Dr. Michel Tewfik Fattouche ▪ Rusty Lewis – Lead Independent Director ▪ Pamela Steer ▪ Anna Tosto 4
Slide 5: Matters to be Considered / Voted On
Matters to be Considered / Voted On ▪ Presentation of Quarterhill’s Financial Statements for 12 months ended December 31, 2022 ▪ Election of Members to Quarterhill’s Board of Directors ▪ Appointment of Ernst & Young LLP as Quarterhill’s Auditors for Fiscal 2023 and Authorization of Quarterhill’s Boa
Slide 6: Matters to be Considered / Voted On
Matters to be Considered / Voted On ▪ Presentation of Quarterhill’s Financial Statements for 12 months ended December 31, 2022 ▪ Election of Members to Quarterhill’s Board of Directors ▪ Appointment of Ernst & Young LLP as Quarterhill’s Auditors for Fiscal 2023 and Authorization of Quarterhill’s Boa
Slide 7: Annual Meeting: Management Presentation
Annual Meeting MANAGEMENT PRESENTATION May 8, 2023 TSX: QTRH OTCQX: QTRHF
Slide 8: Important cautionary notes
Important cautionary notes Certain statements in this presentation, other than statements of historical fact, may special charges and other one-time items; (v) depreciation of right-of-use assets include forward-looking information that involves various risks and uncertainties and property, plant an
Slide 9: 2022 Highlights
2022 Highlights Revenue: $305.7mm ETC and IRD won > $200mm in long-term Adjusted EBITDA: $64.6mm contracts, including: Cash from operations: $39.6mm ▪ Alameda and Orange County (ETC) ▪ NY State and Indiana (IRD) WiLAN ITS contracted revenue backlog > USD$500mm Revenue: $146.4mm at year-end, which in
Slide 10: Quarterhill Today
Quarterhill Today World class ITS assets: ITS market is growing ▪ Tolling (ETC) ▪ Enforcement (IRD) ITS revenue backlog provides revenue visibility Licensing business with long-term track record for Visibility into expanding generating cash flow ITS margins (WiLAN) 10
Slide 11: ITS is a stable, growing global industry
ITS is a stable, growing global industry Total Road Segment Addressable Market* ITS Market Share by Region $2.5 $3.0 $7.8 Road segment of ITS is North America 37% 2021 $22B forecasted to grow at a 5-year $3.1 CAGR of 10.3% $5.6 Europe 29% Asia-Pac 24% $4.3 $12.5 The CVO/enforcement and Rest of World
Slide 12: ITS has compelling market tailwinds
ITS has compelling market tailwinds Wide & growing gap between Ever-increasing demands for both safer and infrastructure needs and funding more sustainable mobility US DoT reports 65% of all US roads are in poor condition Growing Congestion $5.6 trillion investment gap* in infrastructure will reduce
Slide 13: ITS helps solve important challenges
ITS helps solve important challenges Revenue Generation Safety $281T global debt, 9% growth in Road accidents result in 18.2 last 12 months; governments deaths per 100,000 and costs 3% need solutions to pay for debt of countries’ GDP on average Environment Efficiency Road vehicles produce 24 lbs of
Slide 14: Quarterhill has World-Class ITS Assets
Quarterhill has World-Class ITS Assets Tolling Enforcement ▪ First patented dynamic pricing system ▪ ITS leader in commercial vehicle enforcement ▪ Machine Learning/AI driven since 2018 ▪ Fastest growing segment in ITS road category ▪ Services extending from the toll lane to the ▪ Weigh-in-motion, t
Slide 15: Ohio River Bridges Back Office Solution
Ohio River Bridges Back Office Solution ▪ 3 bridges connecting Louisville KY with Indiana 10-year contract ▪ Customer complaints created conditions for new with two 3-year options provider ▪ ETC was selected from 9 bidders to provide the ~C$100mm back-office system and customer support services (WSP
Slide 16: Central Texas Regional Mobility Authority
Central Texas Regional Mobility Authority ▪ Toll roads in Central Texas (Austin and vicinity) 6-year contract ▪ ETC replaced incumbent provider with two 2-year options ▪ riteSuite™ roadside services deployed ▪ ETC selected for its technology, reputation, ~C$100mm expertise and relationships contract
Slide 17: Indiana DOT: ATR & VWS Systems
Indiana DOT: ATR & VWS Systems Problem Solution State lacks manpower to maintain Automatic Traffic Recorder IRD offers ongoing maintenance and data reporting as a service (ATR) systems to support data collection tied to FHWA funding. for 143 ATR systems, 56 WIM data systems and 23 Virtual Weigh Stat
Slide 18: Netherlands: Tire Safety Screening
Netherlands: Tire Safety Screening Problem Solution Vehicle breakdowns lead to congestion and delays on Dutch 41% of incidents involving commercial vehicles were caused by motorways. tire problems. TACS identifies unsafe tires – flat, missing, etc. The Netherlands agencies have goals to reduce emiss
Slide 19: WiLAN
WiLAN Select Attributes Investment Highlights Full-service IP monetization 475+ licenses Professionalism in business 70+ partners transactions Technical/Legal/Business 4,000+ patents expertise Reputation as a reasonable $28.7mm five-year and creative IP monetization Adj EBITDA average organization T
Slide 20: 2023 Priorities
2023 Priorities ▪ Positive Adjusted EBITDA in ITS business, inclusive of corporate segment costs ▪ ITS integration ▪ Hire CEO ▪ Complete WilAN strategic review process 20
Slide 21: AGM Q&A
QQ QUARTERHILL AGM Q&A
Slide 22: Head Office / Key Contacts
HEAD OFFICE KEY CONTACTS Quarterhill Inc. Investor Relations 25 King St. W., Suite 1101 Dave Mason Toronto, ON 416-247-9652 M5L 2A1 Canada ir@quarterhill.com ANALYST COVERAGE General Inquiries CIBC info@quarterhill.com Todd Coupland Raymond James Steven Li Cormark Gavin Fairweather M Partners Maxwel