Trimble Inc. · NASDAQ:TRMB

Trimble — FY2018 Earnings Presentation

14 slides from Trimble's earnings presentation, Feb 6, 2019

  1. Slide 1: Trimble Fourth Quarter and Full Year 2018 Results Summary

    Trimble Fourth Quarter and Full Year 2018 Results Summary

  2. 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

  3. Slide 3: Agenda

    Agenda ▪ CEO Overview ▪ CFO Review of Results ▪ Guidance ▪ Q&A Trimble Dimensions 2018 For additional information on emerging autonomous technologies, see https://www.youtube.com/watch?v=HWGzOfmcNeA. 3

  4. Slide 4: Fourth quarter 2018 / fiscal year 2018 overview

    Fourth quarter 2018 / fiscal year 2018 overview ▪ Fourth quarter non-GAAP revenue of $792.9 million, up 13% total, +4% organic Fourth ▪ Annualized recurring revenue of ≈$1.05 billion Quarter ▪ 56% operating leverage increased adjusted EBITDA margins to 23.6% and delivered $0.48 2018 EPS (+30% growth

  5. Slide 5: Fourth quarter 2018 financial summary

    Fourth quarter 2018 financial summary $M, Except Per Share Fourth Quarter of ▪ Non-GAAP Revenue: +13% y/y; Non-GAAP Income Statement Highlights 2017 2018 Y/Y Change – Organic +4% Revenue $701.1 $792.9 +13% – Currency translation -1% Gross Margin % of Revenue 55.3% 59.5% +420bps – Acquisitions/divest

  6. Slide 6: Fiscal year 2018 financial summary

    Fiscal year 2018 financial summary $M, Except Per Share Fiscal Year ▪ Non-GAAP Revenue: +18% y/y; Non-GAAP Income Statement Highlights 2017 2018 Y/Y Change Revenue $2,649.3 $3,132.0 +18% – Organic +9% Gross Margin % of Revenue 55.7% 58.0% +230bps – Currency translation +1% Adjusted EBITDA $535.6 $70

  7. Slide 7: Financial metric highlights

    Financial metric highlights Annualized recurring $1.6B in TTM software, services TTM cash flow from revenue ≈$1.05B and recurring revenue operations up +13% (+36% growth) (+30% growth) $935M in TTM recurring revenue Approx. $1.1B YE backlog (+26% growth) $387M deferred Net working capital +29% TTM s

  8. Slide 8: Non-GAAP revenue by reporting segment

    Non-GAAP revenue by reporting segment TTM Growth $M Q4’18 Q4’18 vs. Q4’17 Growth % (1) Key Factors CAGR % M&A/ Revenue Organic FX Total 1 Year 3 Year Divestiture  Viewpoint and e-Builder acquisitions performed ahead of Buildings & $287.0 +7% +34% -1% +40% +31% +16% plan Infrastructure  Strong orga

  9. Slide 9: M&A performance

    M&A performance ▪ Revenue and profitability entering FY19 ahead of plan ▪ FY18 total bookings(1) growth +35%; subscription bookings(2) growth +60% ▪ 70% subscription revenue in FY18 ▪ FY18 net dollar retention >100%(3) ▪ Revenue and profitability entering FY19 ahead of plan ▪ FY18 total bookings(4)

  10. Slide 10: Non-GAAP revenue by region

    Non-GAAP revenue by region % of Total % Change Q4’17 Q4’18 Y/Y Quarterly Y/Y TTM North America 51% 53% +16% +18% Europe 27% 28% +15% +27% Asia-Pacific 15% 13% -0% +10% Rest of World 7% 6% +11% +0% Total 100% 100% +13% +18% FY17 reflect the retrospective adoption of ASC 606, Revenue from Contracts wi

  11. Slide 11: Non-GAAP revenue mix, trailing 12 month growth

    Non-GAAP revenue mix, trailing 12 month growth [ Recurring + Software & Services = SW, Services, Recurring ] + Hardware = Total Revenue $1.6B $3.1B ≈$935M ≈$680M $1.5B $1.4B $2.6B ≈$740M $1.2B ≈$505M TTM Q4'17 TTM Q4'18 TTM Q4'17 TTM Q4'18 TTM Q4'17 TTM Q4'18 TTM Q4'17 TTM Q4'18 TTM Q4'17 TTM Q4'18

  12. Slide 12: Non-GAAP operating income by reporting segment

    Non-GAAP operating income by reporting segment $M, Non-GAAP Q4’18 TTM Q4’18 TTM Growth CAGR % Q4’18 Y/Y Key Factors Operating Operating Growth Operating Operating 1 Year 3 Year income $ income % vs. Q4’17 income $ income %  Mix transitioning to Buildings & Infrastructure $72.5 25.3% +73% $256.7 23.

  13. Slide 13: Guidance and outlook

    Guidance and outlook ▪ Non-GAAP revenue of $795-$820 million ▪ +7-10% total growth; +3-5% organic, +6-7% M&A, -2% FX First ▪ Non-GAAP EPS of $0.44 to $0.48 Quarter 2019 ▪ Income from equity method investments ≈$8M ▪ Net interest expense ≈$22M ▪ Non-GAAP tax rate of 20%, 254M shares outstanding ▪ +6-

  14. Slide 14: Q&A

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