In Investor Presentation January 15, 2019 Forw rward Lo Lookin - - PowerPoint PPT Presentation

In Investor Presentation

January 15, 2019

This presentation may contain forward-looking statements and are intended to qualify for the safe harbor from liability established by the Private Securities Litigation Reform Act of 1995. Forward-looking statements are neither historical facts nor assurances of future

• performance. These forward-looking statements include, but are not limited to, future strategic plans and other statements that

describe our business strategy, outlook, objectives, plans, intentions or goals, and any discussion of future operating or financial performance, including, without limitation, the long-term growth of our revenue and gross margin. The words “may,” “will,” “expect,” “plan,” “anticipate,” “could,” “intend,” “target,” “project,” “estimate,” believe,” “predict,” “potential” or “continue” or the negative of these terms or other similar expressions are intended to identify forward-looking statements, although not all forward-looking statements contain these identifying words. Factors that could affect the outcome of forward-looking statements are uncertain and to some extent unpredictable, and involve known and unknown risks, uncertainties and other important factors that could cause actual results to differ materially from those expressed in such forward-looking statements. Any forward-looking statement is based on current plans and expectations of our management, expressed in good faith and believed to have a reasonable basis. However, there can be no assurance that anticipated results will be achieved. More information on factors that could cause actual results to differ materially from those anticipated is included in the Risk Factors section in our most recent Annual Report on Form 10-K, and other documents filed from time to time with the Securities and Exchange Commission. The forward-looking statements included in this presentation speak

• nly as of the date hereof, and we undertake no obligation to update or revise any forward-looking statements, whether as a result of

new information, future events or otherwise.

Forw rward Lo Lookin ing St Statements

1

Company Overvie iew

CalAmp is a telematics pioneer leading transformation in a global connected economy

Nasdaq: CAMP Irvine, CA headquarters 36% 36% SaaS revenue growth 5-year CAGR ~835 35 Employees $366M 66M revenue in FY18 (15% 5-year CAGR) International revenue growth: 10% 10% Y/Y to $100 00M in FY18

2

$236 $251 $281 $351 $366 $279

FY14 FY15 FY16 FY17 FY18 YTD FY19

Revenues ($ ($M) )

YTD FY19 represents nine months ended November 30, 2018

3

Multi-vertical IoT hardware & DBS Global telematics products & services Connected asset ecosystem solutions Global data & SaaS solutions

CalA alAmp Evolu lution

A company well-positioned for long-term growth and profitability FY18 FY14 FY1 Y10

$1 $112 12M Revenu nue Gros

• ss Mar

argin n 20 20% $236M Rev evenu nue Gros

• ss Mar

argin n 34% $3 $366 66M Revenu nue Gros

• ss Mar

argin n 41 41%

Long-Term rm Tar arget t Model

+1 +10% 0% Y/Y Revenue Growth Gros

• ss Mar

argin n ~5 ~50% 0%

2010 2011 2012 2013 2014 2015 2016 2017 2018

CalA alAmp Tele lematics Lif Lifecycle le

4

Dollar Sales Years Original Uses Subsequent Extensions of Life Cycles A B C D #1 #2 #3 #4

An overarching strategy to drive increased SaaS revenue and accelerated growth

$15B $10B $5B

Lar Large an and Gr Growing Mar arket Opportunitie ies

5

Fleet Man anagement t pr prod

• ducts and

nd ser servic ices En Enterpris ise Asset Trac ackin king pr prod

• ducts and

nd ser servic ices Ecos

• system Opp

ppor

• rtunit

itie ies around Vehic icle le Li Lifecycle le

Targeting $30B+ global industrial IoT and connected vehicle TAM

*Source: James Brehm & Associates; C.J. Driscoll & Associates; and Berg Insight

$15B $10B $5B

Lar Large an and Gr Growing Mar arket Opportunitie ies

6

Fleet Man anagement t pr prod

• ducts and se

servic ices

• CrashBoxx +

Telematics Devices

• CTC + Telematics Devices
• FleetOutlook: Full Bundle

Targeting $5B+ global fleet management TAM

$15B $10B $5B

Lar Large an and Gr Growing Mar arket Opportunitie ies

7

En Enterpris ise Asset Trac acki king pr prod

• ducts and

nd se services

Targeting $10B+ global enterprise asset tracking TAM

Fleet Management products and services

• CrashBoxx +

Telematics Devices

• CTC + Telematics Devices
• FleetOutlook: Full Bundle
• Over the top service:

Sensor Tags + Telematics Devices

• CTC + Sensor Tags + Telematics

Devices

• Full Bundle Solutions
• AssetOutlook
• SC iOn + 24/7 Command Center

Lar Large an and Gr Growing Mar arket Opportunitie ies

8

$10B $15B $5B

Enterprise Asset Tracking products and service Ecos

• system opp

pportu tunit itie ies around ve vehic icle le lifecycle le

• CrashBoxx & Driver Behavior
• Full Bundle Solutions
• SureDrive
• AssetOutlook
• FleetOutlook
• LenderOutlook
• TransUnion & Others
• Data Monetization

Targeting $15B+ global vehicle ecosystem TAM

• Over the top service:

Sensor Tags & Telematics Devices

• CTC + Sensor Tags & Telematics

Devices

• Full Bundle Solutions
• AssetOutlook
• SC iOn Command +

24/7 Command Center

Fleet Management products and services

• CrashBoxx +

Telematics Devices

• CTC + Telematics Devices
• FleetOutlook: Full Bundle

$15B $10B $5B

Representative Customer Bas ase

CalAmp technology - a hub for business critical data and decisions

9

Telematic ics Sy Systems So Soft ftware & & Sub ubscript ptio ion Servic ices

*CalAmp supplies its products, services, and solutions to these representative customers. The trademarks and trade names mentioned are the property of their respective owners.

Str Strong In International l Expansion

Revenue

U.S. & Canada EMEA

Latin America APAC

Company HQ

10

CalAmp presence and International growth opportunities in key markets

Investm tments for

• r Grow
• wth

th

Salesforce Realignment Geo-specific Investment 5-year CAGR

25% 25%

FY2018 revenue

$100 100M

Dr Drivin ing Str trong Result lts

Lo LoJa Jack Expands Its Its Se Services to Var arious Par artners

11

SVR and Crash response CTC LoJack SureDrive Recognized Brand Superstores Direct Dealers Distributors

Case Study

Chal alle lenge

A major logistics company was struggling to find and provide status updates for each one of their trailers to

• ptimize integration for their delivery service. It required

significant amounts of staff to scour depots nationwide to continuously capture utilization data

Solu lutio ion

CalAmp’s asset telematics solution was selected to help streamline the management of thousands of trailers, providing location and other data to the CalAmp Telematics Cloud for reporting and notification alerts. CalAmp’s TTU devices were installed on the trailers in a weekly rotation

Results ts

The company has benefited from real-time information, while reducing manual labor. They are now better able to schedule the trailers based on location and reduce idle time. The data helps them right-size their fleet and optimize utilization

Case Study

Chal alle lenge

A major insurance company was seeking to improve the manual processes of managing accident reporting by drivers and vehicle damage for almost 1,000 company taxis. Since drivers are liable for damages, the incidence rate of false reports filed was very high

Solu lutio ion

LMU-3050 telematics devices were installed on the taxis for a controlled pilot. The accident data was transmitted to two accident management systems, CalAmp’s CrashBoxx™ and an alternate solution

Results ts

• 1,000 connected taxis
• CrashBoxx detected all crash incidents within 90 seconds of
• impact. In comparison, the alternate system registered less

than half of the crashes

• CrashBoxx identified 6 accidents that were not called in to

dispatch

• Our solution provided more location aware data than the

driver could iterate

CalA alAmp Gl Global Gr Growth Dri Drivers

Uniquely positioned to drive adoption of telematics for emerging applications

14

Drive SaaS applications across vertical markets Monetize Installed base of telematics devices Continue International expansion

Financial Slides

Consistent Annual Growth Significant Software & Subscription Momentum Strong Free Cash Flow Generation Expanding Gross Margins Well-Capitalized Balance Sheet 1 2 3 4 5

16

Fin Financial l Hig ighli lights

Con

• nsis

istent Top

• p Lin

Line Gr Growth an and Mar argin in Expansion

Solid track record of long-term revenue growth and margin expansion

Note: Fiscal year ended 2/28. See Appendix for reconciliation of GAAP to Non-GAAP figures.

$236 $236 $251 $251 $281 $281 $351 $351 $366 $366 $279 $279

FY14 FY15 FY16 FY17 FY18 YTD FY19 Revenues ($M)

34% 34% 35% 35% 37% 37% 41% 41% 41% 41% 41% 41%

FY14 FY15 FY16 FY17 FY18 YTD FY19 Gross Margin % 17

Revenue Gros

• ss Mar

argin Adju djusted EB EBITDA

$29 $29 $38 $38 $49 $49 $49 $49 $52 $52 $37 $37

FY14 FY15 FY16 FY17 FY18 YTD FY19 Adjusted EBITDA ($M)

YTD FY19 represents nine months ended November 30, 2018

Gr Growin ing Gl Global l So Software an and Su Subscrip iption Base ase

Driving long-term predictable revenues

App pplic licatio ion Sub ubscrip ipti tions & & Other Servic ices Revenue Soft

• ftware &

& Sub ubscrip iptio ion Servic ices Unit nits

18

$ in millions in thousands 463 63 494 94 482 82 628 28 730 30 862 62 FY14 FY15 FY16 FY17 FY18 Q3 FY19 $40 40 $41 41 $43 43 $59 59 $64 64 $58 58 FY14 FY15 FY16 FY17 FY18 YTD FY19

YTD FY19 represents nine months ended November 30, 2018

Str trong Fr Free Cas ash Flo Flow (F (FCF) Ge Generation

High free-cash-flow conversion due to limited CapEx requirements

19

Note: Fiscal year ended 2/28. Free cash flow calculated as: net cash flow from operating activities less capital expenditures. See Appendix for reconciliation of GAAP to Non-GAAP figures

$28 $28 $35 $35 $42 $42 $39 $39 $42 $42 $30 $30

FY14 FY15 FY16 FY17 FY18 YTD FY19

• Adj. Basis Net Income

$21 $21 $21 $21 $43 $43 $18 $18 $59 $59 $39 $39

FY14 FY15 FY16 FY17 FY18 YTD FY19 Free Cash Flow

Adj.

• dj. Bas

asis is Net Net Inc ncom

• me

Free Cas ash Flo low FC FCF as a % % of Adj.

• dj. Bas

asis is Net Net Inc ncom

• me

75% 75% 60% 60% 102% 102% 46% 46% 139% 139% 129% 129%

FY14 FY15 FY16 FY17 FY18 YTD FY19 FCF as a % of Adj. Basis Net Income

YTD FY19 represents nine months ended November 30, 2018

Appendix

21

Appendix: No Non-GAAP Reconcilia liations (1 (1 of

• f 2)

2)

(Unaudited; amounts in thousands except per share amounts)

CalAmp Corp. Recon

• ncili

liation ion of Non-GAAP Measures to GAAP (Una naudited) "GAAP" refers to financial information presented in accordance with U.S. Generally Accepted Accounting Principles. This presentation includes historical non-GAAP financial measures, as defined in Regulation G promulgated by the Securities and Exchange Commission. CalAmp believes that its presentation of historical non-GAAP financial measures provides useful supplementary information to investors. The presentation of historical non-GAAP financial measures is not meant to be considered in isolation from or as a substitute for results prepared in accordance with GAAP. In this presentation, CalAmp uses the non-GAAP financial measures of Adjusted basis net income, Adjusted basis net income per diluted share, Adjusted EBITDA (Earnings Before Investment Income, Interest Expense, Taxes, Depreciation, Amortization, Stock-Based Compensation, gain on legal settlement and other adjustments as identified below), as a substitute for results prepared in accordance with GAAP. Adjusted EBITDA margin and Free Cash Flow. CalAmp uses these non-GAAP financial measures to enhance the investor's

• verall understanding of the financial performance and future prospects of CalAmp's core business activities. Specifically, CalAmp believes that the use of these non-GAAP measures facilitates the comparison of results of core business operations between its current

and past periods. Adjusted Basis Net Incom

• me and

nd Net Incom

• me per Dilu

luted Sha hare The reconciliation of GAAP basis net income (loss) to Adjusted basis (non-GAAP) net income is as follows (in thousands except per share amounts):

22

(Unaudited; amounts in thousands except per share amounts)

Appendix: No Non-GAAP Reconcilia liations (2 (2 of

• f 2)

2)

Adjusted EBITDA and nd Adjusted EBITDA Margin The reconciliation of GAAP basis net income (loss) to Adjusted EBITDA, and the calculation of Adjusted EBITDA margin, are as follows (dollars in thousands):

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