NASDAQ: ITI Corporate Overview - Iteris · $8M+ free cash flow funding SaaS initiatives ... $120 . $189 . CY 2016. Operations. Integration ... party Professional Services

© 2016 Iteris, Inc. All rights reserved. © 2016 Iteris, Inc. All rights reserved.

NASDAQ: ITI

Corporate OverviewDecember 2016

© 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.

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Iteris At-a-Glance• $87M TTM Revenue*

‒ Fiscal 3-year CAGR 8.2%‒ $60M transportation backlog (up 41% y/y)‒ $8M+ free cash flow funding SaaS initiatives

• 425+ Employees

• More than 15,000 Customers

• Strong IP – 53 Patents issued or in process

• HQ Santa Ana, CA

• NASDAQ: ITI

* ITI fiscal year ends Mar 31

Digital Agriculture

Connected Transportation

$4B-$5B $1B-$2B

Strategic Footprint in Large and Dynamic Markets

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““Our Vision

Iteris is the leading provider of essential applied informatics that enable Smart Transportation and

Digital Agriculture worldwide

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Applying Big Data To Big Problems

0.2%Loss of Arable

Land Each Year

70%of Water Used for Agriculture

100%Required Growth in Ag

Production by 2050

Transportation

$140B+Wasted on Traffic

Congestion

35KDeaths in US

Annually

27%of Green House Gas Emissions

Agriculture

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Click to edit Master title styleTransportation

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$600B+ global transportation

infrastructure market

Connected and smart infrastructure will reshape

market dynamic

Historically, investment constrained by

agency budgets


Iteris Transportation Informatics $82.9M TTM revenue with a combined 18.3% segment-level OI margin

Market leader in emerging IoT segment for transportation infrastructure

~325 people with unique expertise‒ Sensor design, data analytics, image

analysis, wireless communication

‒ Systems integration, transportation engineering design & planning

‒ Meteorology and physical sciences

Trusted advisor to 20 countries, 50 state DOTs, 1,000+ counties, and 10,000+ municipalities

Expanding suite of data aggregation and analytics solutions

Technical leadership: ‒ Univ of Michigan Mcity Founding Member*

‒ USDOT Connected Vehicle Reference Architecture Design

* Members include Bosch, Delphi, Ford, General Motors, Honda, State Farm, Toyota, Verizon

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Defining the Pathway to Connected Vehicles and Smart Cities

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Pre-Iteris

40s – 50s

Actuated Signals

60s – 70s

Synchronized Signals

80s – 90s

Smart Cities and Connected Vehicles

Iteris - Stage 2

10s +

Iteris - Stage 1

ITS Foundation

90s – 10s

Traffic Signals

• Cloud computing• Big data & analytics• Ubiquitous, powerful

processing• Everything connected• Shared economy


Supporting the Complete Life-Cycle

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Analyze Plan Collect Integrate Visualize

Professional and Managed Service Hardware and Connected Data Service

Design

Operate


Iteris Transportation Informatics Solutions

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Iteris SensorsInputs 3rd Party Sources

Analytics

Informatics

Iteris Software Analytics

CVIEW Plus

TransitHelper

VantageView

iPeMS

ATIS

Vantage Velocity

Planning & Design

Integration

Operations & Maintenance

Iteris Consulting Services

ReduceCongestion

Optimize Road Maintenance

Reduce Accidents /Incidents

Monitor Commercial Vehicle Compliance

OptimizeRoutes

Reduce Carbon Emission


Target Market GrowthTransportation Informatics Market$3.9B growing to $5.1B in five years

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*Derived from actual pipeline analysis, competitive research, and third-party market research

$2,413 $3,046

$800

$1,049

CY 2016 CY 2020

Design Planning

$350 $476

$200

$350

CY 2016 CY 2020

Sensor Analytics

$500

$750

$120

$189

CY 2016 CY 2020

Operations Integration


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)

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Agriculture

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$5T+ global market with significant

structural challenges

Industrywide focus on Big Data and

Cloud-based services

New business models attract $4B+ in recent

Venture Capital


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

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What Does Iteris Do? –Real-time Global Model of Entire Agriculture Ecosystem

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Iteris Digital Agriculture Platform

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InputsEnd

UsersUAV/Drone

University & National

Global Hydrologic

Weather StationsRadar Satellite

Global Models Land Surface

AtmosphericAgronomic

Database

Application Programming InterfacesExtensibility

Weather Water Soil Crop Health

Access Components Advisories

Informatics Modeling as a ServiceScoutPlant Pest Harvest Timeline

Open

Extensible

Adaptive

Scalable

Global

Iteris and 3rd-party Professional Services


Why Customers Need

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End-Market Benefit

Seed & Crop Protection

• Reduce R&D costs and improve product performance• Reduce product liability exposure (risk management)• Manage regulatory compliance (e.g., product registration)• Enhance Supply Chain optimization• Enhance Marketing campaign ROI

Allied Providers + Ag Integrators

• OEM supplier of environmental content API’s and Components

• Derive value-added service revenue• Enhance product / service differentiation

Growers & Retailers

• Capture “as applied” information and label compliance• Supports Variable rate applications; optimize input costs• Increase crop yield and operational productivity• Demonstrate regulatory compliance


Mobile Products

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Total Available Market for $1.2B growing to $2.3B in five years


Allied Providers

Ag Integrators

Large Row CropGrowers

Large Specialty Growers

Other

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End-Market Competitor


Allied Providers + Ag Integrators

Growers

Competitive Landscape

$100M venture funding; acquired by Monsanto in 2013 for $1B

$41M venture funding – last round 2016

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Acquired by IBM in 2015 for $2B

Internal Development


Initial GTM ProgressInternational, Multi-Channel Customer Base


Allied Providers and Ag Integrators

Growers, Agronomists and Ag Retailers

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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

surface modeling and machine learning techniques to agriculture

• Leverage from prior $25M+ of investments and development

Strong product brand equity

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Key StatisticsTrading Data (at 11-15-16)

Stock Price $3.40

52 Week Low/High $1.89/$4.04

Avg. Daily Vol. (3 mos.) 52,840

Shares Outstanding 32.2M

Public Float, est. 82%

Institutional Holdings 44%

Insider Holdings 5%

Valuation MeasuresMarket Cap $109M

Enterprise Value $93M

EV/Revenue (ttm) 1.1x

Financial Highlights (at 9-30-16)

Total Revenues (ttm) $87M

EBITDA (mrq) $0.2

Cash & Equivalents (mrq) $15.7M

Total Assets (mrq) $60.8M

Total Debt (mrq) $0.0M

Total Liabilities (mrq) $16.8M

Cash Per Share (mrq) $0.49

Three-year revenue CAGR 8.2%

Source: Capital IQ. ITI fiscal year ends Mar 31.

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Financials

EBITDA

$11.8

$18.7 $18.7 $20.4

$22.0

$16.0 $15.7

$3.0

$0.6 $0.0 $0.0 $0.0 $0.0 $0.0

FY 11 FY 12 FY 13 FY 14 FY 15 FY 16 Q2 FY17

Cash & Cash Equivalents($Millions)

Cash & Equiv. Bank Debt

Cash from Operations

$Millions FY 13 FY 14 FY 15 FY 16 FY 17H1

EBITDA (loss) $3.2 $3.5 $(1.0) $(2.4) $0.4

$Millions FY 13 FY 14 FY 15 FY 16 FY 17H1

Cash from operations $3.2 $3.3 $3.6 $(4.1) $0.3

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Summary

Solid balance sheet

Strategic footprint

$8M+ in free cash flow from our corebusiness lines

in two high-growth markets with high-margin SaaS

models

Strong performance and favorable trends

accelerating growth and margin expansion

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NASDAQ: ITI

Thank You!

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NASDAQ: ITI Corporate Overview - Iteris · $8M+ free cash flow funding SaaS initiatives ... $120 . $189 . CY 2016. Operations. Integration ... party Professional Services