Slide 1: Investor Presentation May 2021
Investor Presentation May 2021 TSX: QTRH OTCQX: QTRHF
Slide 2: We are investors in essential transportation technologies
We are investors in essential transportation technologies Building from our existing cash-generating businesses, we are investing in the Intelligent Transportation Systems sector to become a global leader 2
Slide 3: Building and enhancing the way we move every day
Building and enhancing the way we move every day Intelligent Transportation Systems (“ITS”) use technology to address the challenges in transportation infrastructure to make them safer, more efficient, cleaner for the environment, and less costly to maintain for governments at all levels 3
Slide 4: 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 o
Slide 5: A stable, growing global industry
… is a stable, growing global industry … 5 Year Compound Total Addressable Market Annual Growth Rate All ITS Road Segment 2020 Base Year * $3.1 Global ITS market is 15% $5.6 $2.6 forecasted to grow $3.1 $8.3 2020 $45B $23.3 $23B from $45B to $90B in $13.4 $3.3 annual sales by $6.0 2025* Road segment
Slide 6: And has compelling market tailwinds
… and has compelling market tailwinds Historically high levels of government stimulus to US Case Study combat COVID … US DoT reports 65% of all US $24 trillion roads are in poor condition WW stimulus Aging infrastructure costs the public ~$160B in wasted fuel 3X the amount spent by governments on th
Slide 7: Growth of our ITS business through M&A is our focus
Growth of our ITS business through M&A is our focus We are continuing to diversify through further investment into the attractive opportunities presented by the ITS industry to grow recurring annual revenue and profit streams and increase shareholder value 7
Slide 8: ITS Growth Roadmap
ITS Growth Roadmap Smart cities Other ITS segments Aviation Marine Rail Vehicle Target capital deployment Enforcement Road sub-segments up to $400M Route Optimization Public Transit over the next 5 years* Progress to date in 2021 Road Tolls Traffic Flow Closed January 5, 2021 Closed April 28, 2021 *
Slide 9: Our business is well positioned
Our business is well positioned … Stable and consistent, cash generating businesses with a strong balance sheet and no debt 2020 Fiscal Year Results Adjusted Working Long-Term Revenue EBITDA Capital* Debt* $145M $31M $160M $nil * As at December 31, 2020 * As at December 31, 2020 9
Slide 10: With strong operating platforms
… with strong operating platforms … International Road Dynamics 2020 2020 $66M Revenue $78M Revenue $14M Adjusted EBITDA $29M Adjusted EBITDA ▪ Well established, respected global player in ITS to ▪ Track record over many years of strong revenue serve as a platform for M&A growth and profitability ▪
Slide 11: To execute our growth strategy
… to execute our growth strategy … ITS platform positions us well to execute on M&A Acquisition Criteria ▪ Eyes and ears in the market to find attractive acquisition targets Profitable ▪ Sales channel and cost synergies ▪ Lower integration risk Accretive valuation ▪ Good home for sellers Experienced
Slide 12: And unlock value through scale
… and unlock value through scale Target Proforma Acquired Growth * QTRH Market Cap * Revenue Adjusted EBITDA 27% CAGR 2 $330M $950M $50M $292M $145M $43M Dec. 31, 2020 2025 2 Assumes 114M total shares outstanding 2020 2021 2022 2023 2024 2025 2020 2021 2022 2023 2024 2025 Base Business Acquired Busi
Slide 13: 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 14: Head Office and Key Contacts
HEAD OFFICE KEY CONTACTS Quarterhill Inc. Corporate Development 25 King St. W., Suite 1101 Paul Hill Toronto, ON paul.hill@quarterhill.com M5L 2A1 Canada Investor Relations ANALYST COVERAGE Dave Mason Canaccord 416-247-9652 Doug Taylor ir@quarterhill.com CIBC General Inquiries Todd Coupland info@qua