In Investor Presentation January 2020
Forw rward Lo Lookin ing St Statements 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 only 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. 1
Company Overvie iew CalAmp is a telematics pioneer leading transformation in a global connected economy Revenues s ($M ($M) ) 10% CAGR Nasdaq: CAMP $366 $364 Irvine, CA headquarters $351 $64 $76 $281 $62 $279 $96. 6.6M revenue in Third Quarter FY2020 $251 $36 $39 $90 SaaS revenue reached 35% of consolidated revenue $302 $289 $288 $245 $212 $189 18% 18% SaaS revenue growth CAGR (FY2015-FY2019) FY15 FY16 FY17 FY18 FY19 YTD FY20 ~1,22 226 6 Employees (with recent acquisitions) Telematics Systems SaaS 2
CalA alAmp Mod odel l Tran ansition with ith In Increased Saa aaS Revenue A company with solid foundation for long-term growth and profitability FY19 | Historical Financials Long Term Target Model $364M Revenue +10% Y/Y Revenue Growth 41% Gross Margin 50% Gross Margin 13% Adjusted EBITDA 20% Adjusted EBITDA 21% 40% SaaS 60% 79% Telematics Systems Connected Telematics Solutions SaaS Solutions and Data Monetization 3
Tran ansformation to o a a Gl Global l Saa aaS Solu lutions Provid ider M&A Approach Key Transactions / Grow SaaS recurring revenue base in the U.S. and International Markets / Scale telematics platform with expanded worldwide subscriber base of 1.3 million / Establish market leadership in international markets including EMEA and LATAM / Penetrate SaaS verticals including connected car, government fleets and transport & logistics 4
Tar argeted Saa aaS Verticals ls: Our Gr Growth Opportunity Enabling Telematics Applications for the Vehicle Area Cloud Solutions Government Fleets Transport and Logistics PULS PEG CalAmp Telematics Cloud Connected Car Industrial Machines Solutions 5
Lar Large an and Gr Growing Mar arket Opportunitie ies Targeting $30B+ global industrial IoT and connected vehicle TAM Other Telematics services and Transportation and Logistics monetization opportunities (~10% CAGR) products and services (~14% CAGR) $15B $10B Market Opportunities Full Bundle Solutions Value Added Solution Oriented Services Fleet Management $5B products and services Global Base of Connected (~13% CAGR) Telematic Devices *Source: James Brehm & Associates; C.J. Driscoll & Associates; and Berg Insight 6
CalA alAmp iO iOn for Se Service Fle Fleet with ith iO iOn Tag ag Mic icro Se Services EXIT • 6:00 00 am – Van has appropriate 6:15 15 am – • • Driver logs in mobile app tools for job Departing from yard • App automatically pairs driver with vehicle based on skill set 7: 00 am – • Driver arrived at worksite 2:02 02 pm pm – • Driver heads back to worksite to retrieve tool • Alert sent to driver on app 2:00 :00 pm pm – saying item is missing • Driver leaving worksite 3: 00 pm pm – • Driver arrived back to yard and disconnected from vehicle 7
CalA alAmp iO iOn for Ass sset Man anagement: The Car argo Jou Journey 6:00 am – Deployment Validation 6:30 am – • In-Transit Validation 6:51 am – 7:02 am – • • Shock Logging Temperature Logging 7:30 am – 7:23 am – 7:27 am – • Delivery Validation • • Location Logging Light Logging 8
Representative Customer Bas ase CalAmp technology – a hub for business critical data and decisions 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. 9
Str trong In International l Expansion CalAmp presence and International growth opportunities in key markets Investm tments for or Gr Grow owth th U.S. & Canada Salesforce Geo-specific EMEA Realignment Investment APAC Latin America Drivin ing Str trong Result lts $95 95M 16% 16 FY2019 5-year CAGR revenue Revenue Company HQ 10
CalA alAmp Gl Global Gr Growth Dri Drivers Uniquely positioned to drive adoption of telematics for emerging applications Drive SaaS applications across vertical markets Monetize installed base of telematics devices Continue international expansion 11
Financial Slides
Fin Financial l Hig ighli lights Accelerated SaaS Revenue Growth 1 Growth in Worldwide Subscriber Base 2 3 Path to Margin Expansion 4 Strong Free Cash Flow Generation Well-Capitalized Balance Sheet 5 13
Revenue an and Mar argin in Performance Solid track record of stable revenue and margin performance Gros oss Mar argin Revenue Adju djusted EB EBITDA $52 $52 41% 41% $49 $49 $49 $49 41% 41% 41% 41% $48 $48 39% 39% $366 $366 $364 $364 $351 $351 37% 37% 35% 35% $38 $38 $281 $281 $279 $279 $251 $251 $29 $29 YTD YTD FY15 FY16 FY17 FY18 FY19 YTD FY15 FY16 FY17 FY18 FY19 YTD FY15 FY16 FY17 FY18 FY19 YTD YTD FY20 (1) FY20 (1) FY20 (1) FY20 (1) FY20 (1) FY20 (1) Revenues ($M) Gross Margin % Adjusted EBITDA ($M) Note: Fiscal Third Quarter 2020 ended 11/30/2019. See Appendix for reconciliation of GAAP to Non-GAAP figures. (1) YTD FY20 GAAP revenue reflects approximately $7 million of purchase accounting adjustments which reduces gross margin and adjusted EBITDA margin by approximately 200 basis points. 14
Growin Gr ing Gl Global l Software an and Subscrip iption Bas ase Driving long-term predictable revenues 25% CAGR 1, 1,30 300 Global Subscriber Base 937 37 730 30 628 28 482 82 FY16 FY17 FY18 FY19 YTD FY20 (in Thousands) 22% CAGR $90 90 $78 78 $64 64 Application Subscriptions $59 59 $43 43 & Other Services Revenue FY16 FY17 FY18 FY19 YTD FY20 ($ in Millions) 15
His istorical l Fr Free Cash ash Flo Flow (F (FCF) Ge Generation Profitability and free-cash-flow conversion Adj. dj. Bas asis is FC FCF as a % % of Net Inc Net ncom ome Free Cas ash Flo low Adj. dj. Bas asis is Net Net Inc ncom ome $59 $59 139% 139% $43 $43 $42 $42 $42 $42 102% 102% $40 $40 $39 $39 90% 90% $36 $36 $35 $35 60% 60% $21 $21 46% 46% $18 $18 $14 $14 FY15 FY16 FY17 FY18 FY19 YTD FY15 FY16 FY17 FY18 FY19 FY15 FY16 FY17 FY18 FY19 FY20 Adj. Basis Net Income FCF as a % of Adj. Basis Net Income Free Cash Flow Note: Free cash flow is calculated as: net cash flow from operating activities less capital expenditures. See Appendix for reconciliation of GAAP to Non-GAAP figures. Free cash flow was negative in the first three quarters of FY20 due to our GAAP net loss of $23.5 million coupled with net cash outflow for working capital requirements and capital expenditures. The free cash flow metric year-to-date was not included in the presentation as we believe it is not representative of our continuing operations. 16
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