Trimble Inc. · NASDAQ:TRMB
Trimble — Investor Day (May 2018)
37 slides from Trimble's investor day presentation, May 30, 2018
Slide 1: 2018 Investor Day
Trimble 2018 Investor Day May 30, 2018 (Trimble. CONNECTING THE PHYSICAL AND DIGITAL WORLDS
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: Agenda
Agenda 9:00 Introduction Michael Leyba Company Overview and Strategy Steve Berglund, President and CEO Digitization Driving Innovation Doug Brent Geospatial Overview Ron Bisio Buildings & Infrastructure Overview Roz Buick Ron Antevy, e-Builder e-Builder and Viewpoint Manolis Kotzabasakis, Viewpoint
Slide 4: Company Overview
2018 Investor Day Company Overview Steve Berglund, President & CEO 4
Slide 5: 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 6: Investment highlights
Investment highlights • Construction, agriculture, transportation industries undergoing technology driven transformation • Network effects amplify opportunities to deliver system productivity • Trimble is uniquely positioned to play a central role in the transformation • Deep domain insight coupled
Slide 7: Trimble - 40 years of innovation with strategic and managerial continuity
Trimble - 40 years of innovation with strategic and managerial continuity Trimble Historical Eras 1978 – 1998 1999 – 2018 Focus: Focus: Technology (GPS) User Productivity Points of Differentiation: Points of Differentiation: Innovation Domain + Innovation 7
Slide 8: Trimble's financial model has evolved – effectively combining organic and acquisition elements
Trimble’s financial model has evolved – effectively combining organic and acquisition elements 1999 2010 2017 $271M revenue, primarily hardware $1.3B revenue, <15% SW, services, recurring $2.65B revenue, 47% SW, services, recurring 53% gross margin 52% gross margin 56% gross margin 7.5% operating ma
Slide 9: A consistent strategy has delivered long-term shareholder returns
A consistent strategy has delivered long-term shareholder returns Trimble Inc. Cumulative Total Return vs. S&P 500 Cumulative Total Return Trimble Inc. Cumulative Total Return vs. S&P 500 Cumulative Total Return +2,772% +219% Trimble Inc. Cumulative Total Return S&P 500 Cumulative Total Return 9 Sou
Slide 10: Trimble brings scope and scale to its markets
Trimble brings scope and scale to its markets Geospatial Construction Agriculture Transportation • >70% of POB1 top 100 geospatial • >28 million unique SketchUp • ≈150M acres using Trimble • Trimble technology on >85% of companies use Trimble activations / year technology top 200 trucking companies
Slide 11: Common platforms are leveraged across targeted industries
Common platforms are leveraged across targeted industries Core industries served Vertical markets Geospatial Transportation Industry-specific distribution Agriculture Construction Industry-specific solutions Emerging industries Shared resources Rail Forestry Common platforms Water and Field service
Slide 12: We differentiate at the connection of the digital and physical worlds
We differentiate at the connection of the digital and physical worlds Construction Agriculture Transportation 3D model at anchor bolt level detail drives pinpoint construction accuracy during fabrication and construction Construction Real time road, vehicle, and driver verification against condition
Slide 13: Trimble strategy integrates workflows and stakeholders across industry continuums
Trimble strategy integrates workflows and stakeholders across industry continuums Mixed Fleet & Customer ROI Interoperability • Machines & vehicles CONNECTED • Task productivity • Tools • System productivity • Labor • Quality • Interoperable models • Safety INDUSTRY • Visibility • Sustainability 13
Slide 14: Attractive end markets support organic growth, supplemented by acquisitions
Attractive end markets support organic growth, supplemented by growth from acquisitions Buildings & Resources Transportation Geospatial Large and global addressable markets $17B + Infrastructure $14B + $14B + $5B = $50B & Utilities Market penetration Underpenetrated by technology <33% <25% <33% <50%
Slide 15: Our organization model is entrepreneurial, accountable and adaptive
Our organization model is entrepreneurial, accountable and adaptive Reporting segments Core industries served Emerging industries Geospatial Geospatial Water and Resources Agriculture Forestry electric & Utilities utilities Transportation Transportation Field service Rail management Buildings & Cons
Slide 16: Historical organic growth validates future growth expectations
Historical organic growth validates future growth expectations Revenue FY2003-2017 FY2017 Organic ~7% ~10% M&A/FX ~5% ~2% Total +12% +12% 16
Slide 17: Our go-to-market strategy is tailored to the market segment
Our go-to-market strategy is tailored to the market segment and accelerates market penetration Direct / • ~50% direct sales model, including key Account accounts and enterprise customers Management • ~50% best-in-class distribution channels specific to industry verticals Distribution • Dealers provi
Slide 18: The portfolio is positioned to provide balanced growth
The portfolio is positioned to provide balanced growth Diverse business mix Growing software mix Global opportunity 2017 2017 2017 7% 14% 26% 31% 47% 53% 53% 18% 26% 25% Buildings and Infrastructure Geospatial North America Europe Asia ROW Resources and Utilities Hardware/Firmware Transportation Sof
Slide 19: Focused acquisitions have provided platforms for organic growth
Focused acquisitions have provided platforms for organic growth Areas of M&A focus Key transactions • Market adjacencies Buildings & • Technology infrastructure • Geographic expansion • SW focused Qualitative criteria • Unique value proposition - transformative possibilities Transportation • Network
Slide 20: Investment highlights
Investment highlights • Construction, agriculture, transportation industries undergoing technology driven transformation • Network effects amplify opportunities to deliver system productivity • Trimble is uniquely positioned to play a central role in the transformation • Deep domain insight coupled
Slide 21: Technical Innovation at Trimble
2018 Investor Day Technical Innovation at Trimble Doug Brent, CTO 21
Slide 22: CTO key messages
CTO key messages 1 Developing and leveraging cutting edge technology 2 Executing a software & hardware platform strategy for integration and leverage 3 Fostering a global culture of innovation 22
Slide 23: Trimble builds systems...
Trimble builds systems... Trimble. 23
Slide 24: ...with sophisticated techniques
...with sophisticated techniques 24
Slide 25: Trimble builds software
Trimble builds software • Accommodate new cloud native services and Trimble legacy assets • Provide internal efficiency with goal to make services available to customers and partners • Enable incremental service adoption • Create basis for: • solution integration • deep, cross-industry data analytic
Slide 26: Building a Trimble cloud
Building a Trimble cloud Buildings | Infrastructure Transportation | Resources | Geospatial Transportation Architecture Agriculture GeoSpatial Structures Forestry MEP CEC ... ... ... Application Development Future Trimble Telematics Domain Services Trimble Connect Platform domain Services services G
Slide 27: Scale: application ecosystem
Scale: application ecosystem TPaaS applications vs. 150 193 27
Slide 28: Scale: Trimble identity system
Scale: Trimble identity system Trimble identity vs. system 5,330,000 1,400,000 28
Slide 29: Scale: Trimble data gateway
Scale: Trimble data gateway Trimble data gateway: vs. messages/day 44,000,000 44,000,000 29
Slide 30: Scale: weekly users of 3D warehouse
Scale: weekly users of 3D warehouse Number of 3D warehouse unique vs. weekly users 1,100,000 1,046,079 30
Slide 31: Delivering a Trimble cloud
Delivering a Trimble cloud Buildings | Infrastructure Transportation | Resources | Geospatial Transportation Architecture Agriculture GeoSpatial Structures Forestry MEP CEC ... ... ... Application Development Future Trimble Telematics Domain Services Trimble Connect Platform domain Services services
Slide 32: Livecount cloud case study: delivering value
Livecount cloud case study: delivering value eCognition TPaaS Connect 32
Slide 33: Building innovation globally
Building innovation globally • We’re scaled: 3,400 product developers • We’re multi-local: > 30 developers in 22 offices in 11 countries around the world • We’re innovative: 1,200 unique patents • We’re collaborative: Trimble Technology Conference, collaboration communities, tech talks, expert commu
Slide 34: We are innovating: augmented reality
We are innovating: augmented reality 34
Slide 35: We are innovating: blockchain
We are innovating: blockchain RFP/BID OPERATIONS FIELD SERVICE ACCOUNTING SHIPPER PRICING ANALYST OPERATIONS ANALYST CUSTOMER SERVICE FINANCE ANALYST Puts out RFP Tender Loads Track Progress Verify Invoice Negotiate Update Settle contracts Stakeholders Payments Award Lanes BROKER/ PRICING ANALYST DI
Slide 36: We are innovating: automation
We are innovating: automation 36
Slide 37: CTO key messages
CTO key messages 1 Developing and leveraging cutting edge technology 2 Executing a software & hardware platform strategy for integration and leverage 3 Fostering a global culture of innovation 37