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

In Investor Presentation January 15, 2019

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 ($ ($M) ) Nasdaq: CAMP $366 Irvine, CA headquarters $351 $281 $279 $366M 66M revenue in FY18 (15% 5-year CAGR) $251 $236 36% SaaS revenue growth 5-year CAGR 36% International revenue growth: 10% 10% Y/Y to $100 00M in FY18 FY14 FY15 FY16 FY17 FY18 YTD ~835 35 Employees FY19 YTD FY19 represents nine months ended November 30, 2018 2

CalA alAmp Evolu lution A company well-positioned for long-term growth and profitability Long-Term rm Tar arget t Model +10% +1 0% Y/Y Revenue Growth Gros oss Mar argin n ~5 ~50% 0% FY18 $3 $366 66M Revenu nue Gros oss Mar argin n 41 41% FY14 Global data & SaaS $236M Rev evenu nue solutions Gros oss Mar argin n 34% FY1 Y10 Connected asset $112 $1 12M Revenu nue ecosystem solutions Gros oss Mar argin n 20 20% Global telematics products & services Multi-vertical IoT hardware & DBS 2010 2011 2012 2013 2014 2015 2016 2017 2018 3

CalA alAmp Tele lematics Lif Lifecycle le An overarching strategy to drive increased SaaS revenue and accelerated growth #4 Subsequent Extensions of Life Cycles #3 D #2 C #1 B Dollar Sales A Original Uses 4 Years

Lar Large an and Gr Growing Mar arket Opportunitie ies Targeting $30B+ global industrial IoT and connected vehicle TAM $15B $10B Ecos osystem Opp ppor ortunit itie ies En Enterpris ise Asset Trac ackin king around Vehic icle le Li Lifecycle le pr prod oducts and nd ser servic ices $5B Fleet Man anagement t pr prod oducts and nd ser servic ices *Source: James Brehm & Associates; C.J. Driscoll & Associates; and Berg Insight 5

Lar Large an and Gr Growing Mar arket Opportunitie ies Targeting $5B+ global fleet management TAM $15B $10B $5B Fleet Man anagement t pr prod oducts and se servic ices • • • CrashBoxx + CTC + Telematics Devices FleetOutlook: Full Bundle Telematics Devices 6

Lar Large an and Gr Growing Mar arket Opportunitie ies Targeting $10B+ global enterprise asset tracking TAM En Enterpris ise Asset Trac acki king pr prod oducts and nd se services • Full Bundle Solutions $15B $10B - AssetOutlook - SC iOn + 24/7 Command Center • CTC + Sensor Tags + Telematics Devices • Over the top service: $5B Sensor Tags + Telematics Devices Fleet Management products and services • • • CrashBoxx + CTC + Telematics Devices FleetOutlook: Full Bundle Telematics Devices 7

Large an Lar and Gr Growing Mar arket Opportunitie ies Targeting $15B+ global vehicle ecosystem TAM Enterprise Asset Tracking products and service Ecos osystem opp pportu tunit itie ies around ve vehic icle le lifecycle le • Full Bundle Solutions • Full Bundle Solutions $15B $10B - SureDrive - AssetOutlook $15B $10B - AssetOutlook - SC iOn Command + - FleetOutlook 24/7 Command Center - LenderOutlook • • CrashBoxx & Driver Behavior CTC + Sensor Tags & Telematics Devices • • Over the top service: TransUnion & Others $5B $5B Sensor Tags & Telematics Devices - Data Monetization Fleet Management products and services • • • CrashBoxx + CTC + Telematics Devices FleetOutlook: Full Bundle Telematics Devices 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 Strong In International l Expansion CalAmp presence and International growth opportunities in key markets Investm tments for or Grow owth th U.S. & Canada Salesforce Geo-specific EMEA Realignment Investment APAC Latin America Dr Drivin ing Str trong Result lts $100 100M 25% 25% FY2018 5-year CAGR revenue Revenue Company HQ 10

Lo LoJa Jack Expands Its Its Se Services to Var arious Par artners Recognized Brand SVR and Crash response CTC LoJack SureDrive Superstores Direct Dealers Distributors 11

Case Study Chal alle lenge A major logistics company was struggling to find and provide status updates for each one of their trailers to optimize 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 Drive SaaS applications across vertical markets Monetize Installed base of telematics devices Continue International expansion 14

Financial Slides

Financial Fin l Hig ighli lights Consistent Annual Growth 1 Significant Software & Subscription Momentum 2 3 Expanding Gross Margins 4 Strong Free Cash Flow Generation Well-Capitalized Balance Sheet 5 16

Con onsis istent Top op Lin Line Gr Growth an and Mar argin in Expansion Solid track record of long-term revenue growth and margin expansion Revenue Gros oss Mar argin Adju djusted EB EBITDA $52 $52 41% 41% $49 $49 $49 $49 41% 41% 41% 41% $366 $366 $351 $351 37% 37% 35% 35% 34% 34% $38 $38 $37 $37 $281 $281 $279 $279 $251 $251 $236 $236 $29 $29 FY14 FY15 FY16 FY17 FY18 YTD FY14 FY15 FY16 FY17 FY18 YTD FY14 FY15 FY16 FY17 FY18 YTD FY19 FY19 FY19 Revenues ($M) Gross Margin % Adjusted EBITDA ($M) Note: Fiscal year ended 2/28. See Appendix for reconciliation of GAAP to Non-GAAP figures. YTD FY19 represents nine months ended November 30, 2018 17