Corporate Overview December 2016 - NASDAQ: ITI - Iteris, Inc.
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NASDAQ: ITI
Corporate Overview
December 2016
© 2016 Iteris, Inc. All rights reserved. © 2016 Iteris, Inc. All rights reserved.
Safe Harbor Statement
• This presentation may contain forward-looking statements within the meaning of the federal securities
laws, including the Private Securities Litigation Reform Act of 1995. These forward-looking statements
may include the potential growth of the markets in which we compete, the development status and
planned availability of new products and features, and guidance provided on future revenue, gross
margins and certain operating expenses. In fact, all statements that we make or incorporate by
reference in the presentation, other than statements or characterizations of historical fact, are forward-
looking statements. It should be clearly understood that these forward-looking statements, and our
assumptions about the factors that influence them, are based on the limited information available to
us at this date. Such information is subject to change, and we may not inform you when changes
occur. We undertake no obligation to revise or update publicly any forward-looking statement to
reflect future events or circumstances.
• Forward-looking statements are not guarantees of future results and are subject to risks, uncertainties
and assumptions that are difficult to predict. Therefore, our actual results could differ materially and
adversely from those described in the statements you hear today as a result of various factors. We
refer you to our Form 10-K for the year ended March 31, 2015, subsequent and forthcoming 10-Qs
and other filings with the SEC, which discuss some of the important risk factors that could contribute
to such differences or otherwise affect our business, results of operations and financial condition.
• For additional financial and statistical information, including the information disclosed in accordance
with SEC Regulation G, please see the Investors section of our website.
1 © 2016 Iteris, Inc. All rights reserved.
Iteris At-a-Glance
• $87M TTM Revenue*
‒ Fiscal 3-year CAGR 8.2% Strategic Footprint in Large
‒ $60M transportation backlog (up 41% y/y) and Dynamic Markets
‒ $8M+ free cash flow funding SaaS initiatives
• 425+ Employees
$4B-$5B $1B-$2B
• More than 15,000 Customers
Connected Digital
• Strong IP – 53 Patents issued or in process Transportation Agriculture
• HQ Santa Ana, CA
• NASDAQ: ITI
* ITI fiscal year ends Mar 31
2 © 2016 Iteris, Inc. All rights reserved.
Our Vision
“ Iteris is the leading provider of
essential applied informatics that
enable Smart Transportation and
Digital Agriculture worldwide
“
3 © 2016 Iteris, Inc. All rights reserved.
Applying Big Data To Big Problems
$140B+ 35K 27%
Wasted on Traffic Deaths in US of Green House
Transportation Congestion Annually Gas Emissions
100% 0.2% 70%
Required Growth in Ag Loss of Arable of Water Used
Agriculture Production by 2050 Land Each Year for Agriculture
4 © 2016 Iteris, Inc. All rights reserved.
Click to edit Master title style
Transportation
$600B+ global Historically, investment Connected and smart
transportation constrained by infrastructure will reshape
infrastructure market agency budgets market dynamic
5 © 2016 Iteris, Inc. All rights reserved.
Iteris Transportation Informatics
$82.9M TTM revenue with a combined Trusted advisor to 20 countries, 50 state
18.3% segment-level OI margin DOTs, 1,000+ counties, and 10,000+
municipalities
Market leader in emerging IoT segment
for transportation infrastructure Expanding suite of data aggregation and
analytics solutions
~325 people with unique expertise
Technical leadership:
‒ Sensor design, data analytics, image
‒ Univ of Michigan Mcity Founding Member*
analysis, wireless communication
‒ USDOT Connected Vehicle Reference
‒ Systems integration, transportation
Architecture Design
engineering design & planning
‒ Meteorology and physical sciences
* Members include Bosch, Delphi, Ford, General Motors,
Honda, State Farm, Toyota, Verizon
6 © 2016 Iteris, Inc. All rights reserved.
Defining the Pathway to
Connected Vehicles and Smart Cities
Iteris - Stage 2
• Cloud computing
Iteris - Stage 1
• Big data & analytics
• Ubiquitous, powerful
processing
Pre-Iteris
• Everything connected
• Shared economy
40s – 50s 60s – 70s 80s – 90s 90s – 10s 10s +
Traffic Actuated Synchronized ITS Smart Cities and
Signals Signals Signals Foundation Connected Vehicles
7 © 2016 Iteris, Inc. All rights reserved.
Supporting the Complete Life-Cycle
Plan Design Integrate Collect Analyze Visualize
Operate
Professional and Managed Service Hardware and Connected Data Service
8 © 2016 Iteris, Inc. All rights reserved.
Iteris Transportation Informatics Solutions
Informatics
Optimize Reduce Accidents Reduce Reduce Carbon Monitor Commercial Optimize Road
Routes /Incidents Congestion Emission Vehicle Compliance Maintenance
Iteris Software Analytics Iteris Consulting Services
CVIEW Plus iPeMS
Planning & Design
Analytics
TransitHelper ATIS Integration
Operations & Maintenance
VantageView Vantage Velocity
Inputs Iteris Sensors 3rd Party Sources
9 © 2016 Iteris, Inc. All rights reserved.Target Market Growth
Transportation Informatics Market
$3.9B growing to $5.1B in five years
$1,049 $189
$350
$800
$120
$200
$750
$3,046
$2,413 $476
$500
$350
CY 2016 CY 2020 CY 2016 CY 2020 CY 2016 CY 2020
Design Planning Sensor Analytics Operations Integration
*Derived from actual pipeline analysis, competitive research, and third-party market research
10 © 2016 Iteris, Inc. All rights reserved.Our Transportation Growth Drivers
• Smart Cities design and implementation
• Connected and autonomous vehicle advisory services
• Smart Sensors – intelligent edge processing
• Data aggregation and analytics services (subscription model)
• Intelligent operations management (BPO)
11 © 2016 Iteris, Inc. All rights reserved.Agriculture
$5T+ global market Industrywide focus New business models
with significant on Big Data and attract $4B+ in recent
structural challenges Cloud-based services Venture Capital
12 © 2016 Iteris, Inc. All rights reserved.Why Agriculture?
• Agricultural production must double by 2050 despite huge challenges
‒ Scarce water and arable land
‒ Complex new regulatory requirements
‒ Diminishing returns from mechanical, chemical, and genetic technologies
• Low-cost, pervasive computing essential to next wave of ag innovation
‒ Active investment area: $8B in industry R&D and $4.6B of venture in 2015
• Iteris Transportation Weather Analytics provides a robust foundation to
address agricultural ecosystem
13 © 2016 Iteris, Inc. All rights reserved.What Does Iteris Do? –
Real-time Global Model of Entire Agriculture Ecosystem
14 © 2016 Iteris, Inc. All rights reserved.Iteris Digital Agriculture Platform
Modeling as
Iteris and 3rd-party Professional Services
Informatics Plant Scout Pest Harvest Timeline
a Service
Open
Access Advisories Components
Extensibility Application Programming Interfaces Extensible
Database Adaptive
Weather Water Soil Crop Health
Scalable
Atmospheric
Global Agronomic
Models
Land Surface Global
Inputs
Weather Global University UAV/ End
Radar Satellite Stations Hydrologic & National Drone Users
15 © 2016 Iteris, Inc. All rights reserved.Why Customers Need
End-Market Benefit
• Reduce R&D costs and improve product performance
• Reduce product liability exposure (risk management)
Seed & Crop
• Manage regulatory compliance (e.g., product registration)
Protection
• Enhance Supply Chain optimization
• Enhance Marketing campaign ROI
• OEM supplier of environmental content API’s and
Allied Providers + Ag Components
Integrators • Derive value-added service revenue
• Enhance product / service differentiation
• Capture “as applied” information and label compliance
• Supports Variable rate applications; optimize input costs
Growers & Retailers
• Increase crop yield and operational productivity
• Demonstrate regulatory compliance
16 © 2016 Iteris, Inc. All rights reserved.Mobile Products 17 © 2016 Iteris, Inc. All rights reserved.
Total Available Market for
$1.2B growing to $2.3B in five years
Seed & Crop Allied Ag Large Row Crop Large Specialty Other
Protection Providers Integrators Growers Growers
18 © 2016 Iteris, Inc. All rights reserved.Competitive Landscape
End-Market Competitor
Seed & Crop Protection Internal
Development
Allied Providers + Ag
Integrators
Acquired by IBM in 2015
for $2B
Growers
$100M venture funding; $41M venture funding
acquired by Monsanto in – last round 2016
2013 for $1B
19 © 2016 Iteris, Inc. All rights reserved.Initial GTM Progress
International, Multi-Channel Customer Base
Seed & Crop Allied Providers Growers, Agronomists
Protection and Ag Integrators and Ag Retailers
20 © 2016 Iteris, Inc. All rights reserved.Iteris Agriculture Opportunity
• Highly-leveraged SaaS products: target GMs of 80%
• Interdisciplinary team of ~100 experts
‒ Software engineering, Data science, Meteorology,
Agronomy, Hydrology, Epidemiology, Biology
• ClearAg Patent portfolio (14 issued and 21 pending)
‒ Pioneering the application of weather data, land Strong product
surface modeling and machine learning techniques
to agriculture brand equity
• Leverage from prior $25M+ of investments and
development
21 © 2016 Iteris, Inc. All rights reserved.Key Statistics
Trading Data (at 11-15-16) Financial Highlights (at 9-30-16)
Stock Price $3.40 Total Revenues (ttm) $87M
52 Week Low/High $1.89/$4.04 EBITDA (mrq) $0.2
Avg. Daily Vol. (3 mos.) 52,840 Cash & Equivalents (mrq) $15.7M
Shares Outstanding 32.2M Total Assets (mrq) $60.8M
Public Float, est. 82% Total Debt (mrq) $0.0M
Institutional Holdings 44% Total Liabilities (mrq) $16.8M
Insider Holdings 5% Cash Per Share (mrq) $0.49
Valuation Measures
Three-year revenue CAGR 8.2%
Market Cap $109M
Enterprise Value $93M
EV/Revenue (ttm) 1.1x
Source: Capital IQ. ITI fiscal year ends Mar 31.
22 © 2016 Iteris, Inc. All rights reserved.Financials
Cash & Cash Equivalents
($Millions)
EBITDA
Cash & Equiv. Bank Debt
$22.0 FY 17
$20.4 $Millions FY 13 FY 14 FY 15 FY 16
H1
$18.7 $18.7
EBITDA (loss) $3.2 $3.5 $(1.0) $(2.4) $0.4
$16.0 $15.7
$11.8 Cash from Operations
FY 17
$Millions FY 13 FY 14 FY 15 FY 16
H1
$3.0 Cash from
$3.2 $3.3 $3.6 $(4.1) $0.3
$0.6 operations
$0.0 $0.0 $0.0 $0.0 $0.0
FY 11 FY 12 FY 13 FY 14 FY 15 FY 16 Q2 FY17
23 © 2016 Iteris, Inc. All rights reserved.Summary
Solid Strong performance Strategic
balance sheet and favorable trends footprint
$8M+ in free cash flow accelerating growth and in two high-growth markets
from our core margin expansion with high-margin SaaS
business lines models
24 © 2016 Iteris, Inc. All rights reserved.Thank You!
NASDAQ: ITI
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