Trimble Inc. · NASDAQ:TRMB
Trimble — Investor Day (May 2018)
52 slides from Trimble's investor day presentation, May 30, 2018
Slide 1: 2018 Investor Day: Resources & Utilities Reporting Segment
2018 Investor Day Resources & Utilities Reporting Segment Darryl Matthews
Slide 2: Trimble differentiation in Resources & Utilities
Trimble differentiation in Resources & Utilities • Transforms the full lifecycle • From field to fork • Delivering productivity within tasks and across systems • Transformative productivity on hundreds of thousands of farms and hundreds of millions of acres • Built around end-users • >75% aftermarke
Slide 3: Resources & Utilities reporting segment overview
Resources & Utilities reporting segment pverview Market size Revenue mix (2017) Business mix Geography • Total addressable market: $14 billion • Global penetration < 25% Forestry / Utilities North America Europe Segment financials (2017) Rest of World AgAgriculture IFS / Mueller Asia- Pacific • Reve
Slide 4: The agriculture industry is transforming
The agriculture industry Is transforming Increasing global Food traceability food demand High input costs Farm consolidation 4
Slide 5: Farm consolidation fueling demand for technology
Farm consolidation fueling demand for technology Farms are consolidating Technology implications of farm consolidation (# of farms) • As farms consolidate, they become larger and more complex • Trimble value proposition to increase yield and reduce cost is more compelling on larger farms 725,000 far
Slide 6: Connected farm integrates workflow and stakeholders
Connected farm integrates workflow and stakeholders Mixed fleet & Customer ROI interoperability • Machines & vehicles • Task productivity • Tools • System productivity • Labor • Quality • Interoperable models • Safety • Visibility • Sustainability 6
Slide 7: Trimble connected farm
Trimble connected farm Connecting the physical and digital world from field to fork 10 7
Slide 8: Connecting field workflows in the physical world
Connecting field workflows in the physical world Trimble RTX corrections reduces overlap by up to 95% Trimble machine control guidance Trimble variable rate delivers xxx and xx% irrigation saves up to savings in 55% in water use 8
Slide 9: Connecting field workflows in the physical world
Connecting field workflows in the physical world Trimble RTX corrections reduces overlap by up to 95% Trimble machine control guidance delivers xxx and xx% savings in 9
Slide 10: Connecting the farm in the digital world
Connecting the farm in the digital world 10
Slide 11: Connecting the farm supply chain
Connecting the farm supply chain 10 11
Slide 12: Our value is transformative to our customers
Our value is transformative to our customers Improving productivity with variable rate Improving productivity with corrections “We converted all of our ag equipment over to “I’ve been running CenterPoint RTX for Trimble. Since then, I've gained an acre an hour about a year now, and I’ve lost service
Slide 13: Our value is transformative to our customers
Our value is transformative to our customers Improving efficiency with guidance Improving efficiency with cloud-based software “We needed to rely on new ways of managing the operations and providing the team with access to more data so it would be easier for them to make decisions at all levels.” Du
Slide 14: Our value is transformative to our customers
Our value is transformative to our customers Improving productivity with variable rate Improving productivity with vertical accuracy 20% more continuous “The field we use VRI on goes from sand to “uptime” for land leveling black dirt soil. Irrigate-IQ allowed us to deliver operations the right amoun
Slide 15: The addressable market opportunity in Resources and Utilities is compelling
The addressable market opportunity in Resources and Utilities is compelling Agriculture Agriculture Emerging Resources Large and global addressable markets… on-machine hardware + off-machine software & services + industries (forestry & utilities) = and utilities $5B $6B $3B $14B • Software / service
Slide 16: Significant penetration opportunity in Resources and Utilities
Significant penetration opportunity in Resources and Utilities On-machine Off-machine Network effect Emerging industries hardware software & services opportunities Guidance Variable Ag SW & Forestry Low technology hardware rate services & utilities penetration • Software:hardware • Digital:physical
Slide 17: Improved geographic balance in agriculture positions Trimble well
Improved geographic balance in agriculture positions Trimble well for an improvement in the ag economy 2013 revenue distribution Drivers of shift • US farmers reduction in crop receipts Europe coupled with strong European subsidies North have aided in geographic revenue shift ROW America Brazil 2017
Slide 18: Technology innovation in Resources & Utilities
Technology innovation in Resources & Utilities Automate Automate Automate equipment workgroup workflows & tasks System level 18
Slide 19: Network effect opportunity: unmatched ecosystem coverage
Network effect opportunity: unmatched ecosystem coverage ≈150M ≈335,000 >90,000 Acres using Trimble Customers Trimble guidance subscribing to technology displays in Trimble correction the field services 19
Slide 20: Market reach: unmatched scale and scope
Market reach: unmatched scale and scope Dealer partnerships ~300 Dealer Partnership Partnerships Interoperability 20
Slide 21: Trimble differentiation in resources & utilities
Trimble differentiation in resources & utilities • Transforms the full lifecycle • From field to fork • Delivering productivity within tasks and across systems • Transformative productivity on hundreds of thousands of farms and hundreds of millions of acres • Built around end-users • >75% aftermarke
Slide 22: 2018 Investor Day: Transportation Reporting Segment
2018 Investor Day Transportation Reporting Segment Tom Fansler
Slide 23: Trimble differentiation in transportation
Trimble differentiation in transportation • Transforms the full lifecycle • Connecting supply (carriers) and demand (shippers) • Serving 85% of the top 200 North American trucking companies • Impacting millions of vehicles and assets • Enterprise level solution delivery (ELD market <15% of segment r
Slide 24: Transportation reporting segment overview
Transportation reporting segment overview Market size Revenue mix (2017) Business mix Geography • Total addressable market: $14 billion • Global penetration < 33% Rail, FSM, Rest of World Other Asia-Pacific Europe Enterprise Mobility Mobility North Segment financials (2017) America • Revenue: $678 m
Slide 25: The transportation industry is transforming
The transportation industry is transforming Low driver retention and Regulatory compliance is increasing vehicle maintenance increasing expense Average driving hours are Lack of shipper visibility to decreasing freight in transit 25
Slide 26: Trimble serves the entire supply chain lifecycle
Trimble serves the entire supply chain lifecycle Raw material source Consumer Carrier Transportation is not Store Rail Supply chain execution just “A to B.” It is much Private fleet Carrier more complex… Global flow of goods for typical Selling organization internationally sourced Factory warehouse
Slide 27: Connected transportation integrates workflow and stakeholders across the lifecycle
Connected transportation integrates workflow and stakeholders across the lifecycle Mixed fleet & Customer ROI interoperability • Machines & vehicles CONNECTED • Task productivity • Tools • System productivity • Labor • Quality • Interoperability • Safety • Visibility SUPPLY CHAIN • Sustainability 27
Slide 28: Field and model based workflows
Field and model based workflows Field workflows Field and mobility analytics Transportation model workflows (telematics and fleet management) • Fleet/driver utilization: Automated • Predictive driver retention, including • Industry standard for routing, mileage workflows in and out of cab root cause
Slide 29: Transportation management and shipper visibility
Transportation management and shipper visibility Shipper Transportation Transportation management visibility analytics systems • Peak visibility: real-time data and • Industry specific data model across • Planning and execution platform analytics across the global supply chain multiple data sources
Slide 30: Trimble helps trucking fleets make better decisions
Trimble helps trucking fleets make better decisions ● DATA integration (lifecycle breadth and depth)… ● …combined with deep DATA SCIENCE + ● DOMAIN knowledge ● Understanding of future state informs decisions in the current state = ● Maximized asset utilization ● Optimization of capacity & demand ● S
Slide 31: Trimble data science understands future state conditions to optimize current decisions
Trimble data science understands future state conditions to optimize current decisions Optimized backhaul Netwise TM based on true ETA 5 examples of uniquely integrated Assets Trimble solutions…. Informs current state Future state MatchAdvice TM Load assignment Order Available load Predictive driver
Slide 32: Uniquely integrated solutions create Trimble-only insights
Uniquely integrated solutions create Trimble-only available insights Predictive driver retention Domain Driver data Data science & machine learning knowledge Driver profile Loads Dispatch Pay Productivity Home Transform Safety Predictors Predictive Prescriptive engine engine Hours of service Driver
Slide 33: Trimble delivers tangible ROI to the transportation industry
Trimble delivers tangible ROI to the transportation industry D C 1 2 3 4 % 1 0 Fleet management Operational planning & execution Analytics Reduction in operations costs with Asset utilization improvement 10- Reduction in asset operating 10- 5- 15% 15% improved data accuracy and 10% through optimal p
Slide 34: Our value is transformative to the client's business
Our value is transformative to the client’s business Ruan Transport Corporation supply Beelman Truck Co. operates specialized rock chain and logistics leader with more and bulk commodities vehicles throughout than 11,000 total assets North America 10-12% Final mile optimization 69th 9th Video inte
Slide 35: The addressable market opportunity in Transportation is compelling
The addressable market opportunity in Transportation is compelling Trucking mobility + + = Large and global Trucking ELD Emerging Transportation addressable & enterprise markets… <$1B $9B $4B $14B • Technology penetration • Account management …with attractive set • Geographic expansion • Recurring/S
Slide 36: Low penetration in Transportation provides upside
Low penetration in Transportation provides upside Network effect Trucking ELD Trucking technology Emerging opportunities Low ELD: Phase 1 of 2 Mobility Enterprise Rail technology penetration <75% <50% <50% <25% <33% + ELD: Phase 1 of 2 Trucking mobility • Software:hardware Emerging • Digital:physica
Slide 37: Network effect opportunity: unmatched ecosystem coverage
Network effect opportunity: unmatched ecosystem coverage Globally Managing ~1.2 MM ~3.2 MM telematics vehicles units Fast facts: 85% of top 200 North American fleets use Trimble 37
Slide 38: Market reach: unmatched scale and scope
Market reach: unmatched scale and scope 38
Slide 39: Interoperability: partner ecosystem creates competitive moats
Interoperability: partner ecosystem creates competitive moats Technology & EDI Document management Maintenance Visibility Safety & compliance Brokerage OEM Telematics TMS Routing & navigation 39
Slide 40: Trimble differentiation in transportation
Trimble differentiation in transportation • Transforms the full lifecycle • Connecting supply (carriers) and demand (shippers) • Serving 85% of the top 200 North American trucking companies • Impacting millions of vehicles and assets • Enterprise level solution delivery (ELD market <15% of segment r
Slide 41: 2018 Investor Day: Emerging Markets
2018 Investor Day Emerging Markets Sach Sankpal
Slide 42: Trimble differentiation in emerging industries
Trimble differentiation in emerging industries • Transforms the full lifecycle • Rail, forestry, utilities and field service management industries represent compelling markets to repeat the Trimble formula to drive industry lifecycle transformation • Built around end-users • Serving the “mixed fleet
Slide 43: Emerging industries replicate Trimble success formula
Emerging industries replicate Trimble success formula Industry characteristics Emerging markets • Low technology adoption • Inefficient markets • Asset intensive Trimble “DNA” Rail • Outdoor work • End-user relationships Forestry • Technology • Domain experience Energy Industry dynamics • End-user r
Slide 44: Meaningful problems to solve in rail
Meaningful problems to solve in rail Strong potential for capturing economic value High maintenance costs (1) Sub-optimal utilization (1) 50% of operating costs are 30% of time trains spend in workshop for maintenance taken up by manual failure diagnostics Safety concerns – USA, 2017 (2) 1,817 65% (
Slide 45: Connected rail integrates workflow and stakeholders
Connected rail integrates workflow and stakeholders 2014 2017 Mixed fleet & interoperability Customer ROI • Locomotives & rail cars • Task productivity • Tools • System productivity • Labor CONNECTED • Quality • Interoperable models • Safety • Visibility RAILWAY • Sustainability 45
Slide 46: Trimble rail solutions to improve operations and maintenance
Trimble rail solutions to improve operations and maintenance Remote monitoring Wayside monitoring Engineering asset management Nexala Remote monitoring SaaS Eng. maintenance Component Condition Performance Planning Control Unit Event Recorder Train Management System On-Board & Wayside Condition Been
Slide 47: Physical to digital in rail
Physical to digital in rail Condition monitoring: real-time digital condition monitoring of the physical world Fault detection Machine vision & learning: automatically identify failure in real-time in the physical world 47
Slide 48: Digital to physical in rail
Digital to physical in rail Maintenance optimization: digitizing processes & delivering rich analytics to troubleshoot Operational and performance improvement: energy savings, driver safety, improved on-time metrics 48
Slide 49: Our value is transformative to the client's business
Our value is transformative to the client’s business Improvements in safety, efficiency, uptime “Trimble's real-time remote “Trimble and Greater Anglia have worked diagnostic system has been together as strategic partners to provide a successfully rolled out across our complete train diagnostic syst
Slide 50: Competitive differentiation based on domain knowledge, market reach and business model
Competitive differentiation based on domain knowledge, market reach and business model NS Groep N.V. Competencies Business model • (+) Domain experience • (+) SaaS, hardware, professional services • (+) Innovation • (+) Agnostic to ERP systems • (+) Mixed fleet environment • (+) Modular approach to
Slide 51: Challenges (Forestry)
Forestry Safety: Timber security: $15-20B of leakage Evolution to investment Demographics: Capital Challenges inherently in harvested wood annually. fund ownership. difficult to recruit intensive: dangerous Requires investment youth to operate manufacturing work. Global Supply chain inefficiencies:
Slide 52: Trimble differentiation in emerging industries
Trimble differentiation in emerging industries • Transforms the full lifecycle • Rail, forestry, utilities and field service management industries represent compelling markets to repeat the Trimble formula to drive industry lifecycle transformation • Built around end-users • Serving the “mixed fleet