Cubic Transportation Systems

Matthew J. Cole

Senior Vice President, Cubic Corporation

President, Cubic Transportation Systems

22

Market Dynamics

Growing urbanization, rising consumer expectations and changing demographics, together with declining

traditional funding streams, are driving innovations and valuations in mobility technology

CTS Business Overview 23

NextCity

Sub-Businesses

24

Addressing Customer Needs with Core Competencies

Increase Operational Efficiency and

Reduce Revenue Collection Cost

Lower Cost Of Operations Leader

Scale from majority market share

combined with first mover advantage

Remove friction from planning,

paying and traveling

Increase Customer Convenience Innovator

Have led every evolution in transit

payments, including most recent to

account-based and mobile

Confidence in project delivery and

service availability

Proven and Reliable Partner Deliverer

Stronger delivery and service

performance than any competitor

Strengthening market

share by harnessing

and galvanizing

existing strengths

Increasing Market

Leadership

Proven, trusted partner with strong transportation and information system expertise and global scale

Investing In Core Competencies 25

New York ($554m) Boston ($510m)

Mobile wins Singapore - Assisted

Service Kiosk (ASK)

Cloud based (Miami,

Atlanta, Baltimore, Boston)

57% mkt share

Top 5 U.S.

agencies

Improve Scale Leverage and Execution

Product-centric and engineering, services and test

transformation – increase re-use between customers,

increase execution efficiency and reduce labor rate of

performance

Innovation

Advanced mobile payment and information systems

Cloud-based solutions to reduce customer lifetime cost

and as a stepping stone to platform

Advance self-service – better traveler experience and

lower agency customer service costs

Data analytics to provide data driven insights to

customers and end users (e.g. NextBus 2.0, Transport

Management Platform, Urban Insights)

NextBus 2.0

26

Addressable Market and Key Opportunities

1. Queensland Next Generation Ticketing System (NGTS)

2. Metropolitan Transportation Commission – Clipper 2.0

3. Los Angeles County MTA – Maintenance Services

4. Sydney ICMP

5. Sydney RMS Tolling

6. San Diego MTS

7. Ohio Turnpike Back Office System

8. Paris OneAccount Back Office

9. Toronto AFC

10. Montreal AFC

0 1,000 2,000 3,000

NextBus

Tolling

Surface Tranport Management

Rail Ticketing

URM

Backlog US$m

0 1,000 2,000 3,000 4,000 5,000

NextBus

Tolling

Rail Ticketing

URM

Surface Tranport Management

Addressable Market US$m

Key Pipeline Opportunities

Strategic Priorities 27

Master Customer

Engagement Leverage

OneAccount

Lead Mobile

Payments and

Customer

Experience

Expand Into

Transportation

Operations and

Analytics

Transform the

Business and

Execute

Realize NextCity

Strategic Priorities

28

Strategy Execution

Realize NextCity

Revenue

Realize NextCity Innovation Master Customer Engagement Transform and Execute

Retain key contracts

Leverage customer footprint with upgrades

Gain market share in new cities

Leverage NextBus to access the small-mid market

Grow in adjacent markets of Congestion Management and Tolling

29

Strategy Execution

Realize NextCity

Innovation

Realize NextCity Revenue Master Customer Engagement Transform and Execute

Core Products

• AFC, OneAccount Back Office

New Solutions

• NextBus, TMP, Tolling, Mobile

Innovation

• CiBo, Virtual Ticket Agent, Gateless Gatelines

30

Strategy Execution

Master Customer

Engagement

Realize NextCity Revenue Realize NextCity Innovation Transform and Execute

Increase reputation advantage through new contract execution

Maximize market leadership through product orientation

Harness economies of scale by becoming a global team

Deliberate and interactive customer engagement program

Total customer responsiveness

31

Strategy Execution

Realize NextCity Revenue Realize NextCity Innovation Master Customer Engagement

Transform and Execute

Reduce risk through product orientation

Strict discipline and process around project execution and quality assurance

Integrated global engineering and growing lower-cost locations

Automating system testing, integrated global manual test organization

leveraging lower-cost locations

Global services organization with standard tools and process, leveraging

Global Operations Center

Total executive focus on delivery

Goal 2020 on Track

Goal 2020: summary for CTS 32

$579

2017 2020P

>$800

Revenue $m

8.4% margin

Adj. EBITDA Margin % New York

Boston

Brisbane, Bay Area

Mobile

Customer upgrades

Penetrate Tolling

Penetrate Congestion Management

Revenue Core Business Growth, Upsell to Cities, NextCity

Margin Transformation and Execution

Product orientation

Engineering

Test

Services

Avoid project

execution issues

13-15% margin

2017/2018 Highlights

LA Mobile

Bay Area extension

Vancouver completion

Chicago Mobile 2.0

WMATA/DC Mobile

New York win

Boston win

New Hampshire launch

London extension

ScotRail account-based

Singapore Thomson Line

Brisbane extension

Sydney open payments

22% increase in NPS

Execution readiness

33

NextCity 2.0

Before NextCity NextCity 1.0 NextCity 2.0

Agency 1

Agency 2

Agency 1

Agency 2

All agencies

on one instance

Connected with other city

infrastructure

Economies of scale

Payment Transaction Fees

Payment

Firm Fixed Price

Scope OneAccount, Cloud On Premise & Limited Connectivity

Delivery API & Cloud Solutions Proprietary Solutions

Partnerships & Collaboration COTS & Limited Vendors Platform

Succeed in NextCity 1.0 and

invest in the NextCity 2.0

platform to become the leading

provider of integrated payment

and information systems across

all modes of transport

Transformational

investments in

Product, Services

and Engineering

to improve ability

to scale, execution

performance and

to increase

efficiency in

operations

Well poised for

growth with 1.85

book-to-bill over

10 straight

quarters, record

backlog and more

key opportunities

in pipeline

Summary 34

NextCity

Execution Growth