Trimble Annual Report 2006

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FY2006 Annual Report · Trimble

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International Sales Centers
Europe
Trimble Benelux
Meerheide 45
5521DZ Eersel
Netherlands

Trimble France
32, rue de la Fontaine du Vaisseau
94120 Fontenay-sous-Bois
France

Trimble Germany
Am Prime Parc 11
65479 Raunheim
Germany

Trimble Italy
Cento Torri Bianche
Palazzo Larice, 3
20059 Vimercate (MI)
Italy

Trimble Russia
23, 1st Tverskaya-Yamskaya
Moscow, 125047
Russia

Trimble Spain
Via de las Dos Castillas No. 33
Atica, Edificio 6
Despacho B-2
28224 Pozuelo de Alarcon Madrid
Spain

Trimble Nordic
Box 64, Rinkebyvägen 17
182 11, Danderyd
Sweden

Trimble UK
Trimble House
Meridian Office Park
Osborn Way, Hook
Hampshire RG27 9HX
United Kingdom

International Sales Centers
Middle East
Trimble Dubai
LOB 14 Office 322
PO Box 17760
Jebel Ali Free Zone, Dubai
United Arab Emirates

International Sales Centers
Asia and Pacific Rim
Trimble Australia
Level 1/120 Wickham Street
Fortitude Valley QLD 4006
Australia

Trimble China
Beijing Representative Office
Room 2602-05, Tengda Plaza
No. 168 Xiwai Street
Haidian District
Beijing 100044
China

Suite 7-B, Jinlinghaixin Building
666 Fuzhou Road
Shanghai 200001
China

311 Fute (M) Road, 3/F
Wai Gaoqiao Free Trade Zone
Pudong, Shanghai 200131
China

Trimble India
SF – 04, JMD Regent Plaza
M.G. Road
Gurgaon 122001 New Delhi
India

Trimble Korea
10F, Dongsung Bldg., 158-24
Samsung-Dong
Gangnam-Gu, Seoul 135-090
Korea

Trimble Singapore
80 Marine Parade Road
22-06, Parkway Parade
Singapore 449269

International Sales Centers
The Americas
Trimble Canada
208 Evans Avenue, #104 & 204
Toronto, Ontario M8Z 1J7
Canada

Joint Ventures
Caterpillar Trimble Control
Technologies LLC
5475 Kellenburger Road
Dayton, Ohio 45424

Nikon-Trimble Co., Ltd.
Technoport Mitsuiseimei Building
16-2, Minamikamata 2-chome
Ota-ku
Tokyo 144-0035
Japan

Corporate Headquarters
Trimble Navigation Limited
935 Stewart Drive
Sunnyvale, California 94085

United States Operations
Trimble Tempe
7850 South Hardy Drive, Suite 122
Tempe, Arizona 85284

Trimble Rockies
10355 Westmoor Drive
Westmoor Technology Park
Building 4
Westminster, Colorado 80021

Trimble Dayton
5475 Kellenburger Road
Dayton, Ohio 45424

Trimble Chantilly
3650 Concorde Parkway, Suite 150
Chantilly, Virginia 20151

@Road, Inc.
47071 Bayside Parkway
Fremont, California 94538

Advanced Public Safety, Inc.
500 Fairway Drive, Suite 204
Deerfield Beach, Florida 33441

Apache Technologies, Inc.
8261 State Route 235
Huber Heights
Dayton, Ohio 45424

Eleven Technology, Inc.
119 Mount Auburn Street
4th Floor
One Mifflin Place
Cambridge, Massachusetts 02138

Meridian Project Systems, Inc.
8775 Folsom Corners
Folsom, California 95630

MobileTech Solutions, Inc.
19111 N Dallas Parkway
Suite 350
Dallas, Texas 75287

Pacific Crest Corporation
990 Richard Avenue, Suite 110
Santa Clara, California 95050

Tripod Data Systems, Inc.
345 SW Avery Avenue
Corvallis, Oregon 97333

XYZ Solutions, Inc.
2500 Northwinds Parkway
Suite 625
Northwinds Business Center
Alpharetta, Georgia 30004

Americas Regional Fulfillment
Center
5475 Kellenburger Road
Dayton, Ohio 45424

International Operations
Trimble TerraSat
Haringstrasse 19
D-85635 Höhenkirchen-
Siegertsbrunn
Germany

Trimble Jena
Carl-Zeiss Promenade 10
D-07740 Jena
Germany

Trimble Kaiserslautern
Am Sportplatz 5
D-67661 Kaiserslautern
Germany

Trimble New Zealand
11 Birmingham Drive
P.O. Box 8729
Riccarton, Christchurch
New Zealand

Trimble Sweden
Box 64, Rinkebyvägen 17
182 11, Danderyd
Sweden

@Road, Ltd.
Level 8, 15 Talavera Road
North Ryde NSW 2113
Australia

@Road, Ltd.
901 (A1) & 902 (A2), Tidel Park
No. 4 Canal Bank Road
Taramani, Chennai 600 113
India

@Road, Ltd.
North Felaw Maltings
Ipswich IP2 8HE
United Kingdom

Applanix Corporation
85 Leek Crescent
Richmond Hill, Ontario L4B 3B3
Canada

Inpho GmbH
Smaragdweg 1
70174 Stuttgart
Germany

Trimble GeoNav
An der Feldmark 16
D-31515 Wunstorf
Germany

Meridian Project Systems, Inc.
221 West Esplanade
3rd Floor, Suite 300
B.C. Rail Centre, North Vancouver
British Columbia V6E 3V7
Canada

Quantm, Ltd.
Level 4, 333 Flinders Lane
Melbourne VIC 3000
Australia

Visual Statement, Inc.
1055 Dunsmuir Street, Suite 2300
PO Box 49122
Four Bental Centre, Vancouver
British Columbia V7X 7J1
Canada

European Regional Fulfillment
Center
Meerheide 45
5521DZ Eersel
Netherlands

T R I M B L E A N N U A L R E P O R T

2006

J U S T T H E F A C T S
FOR S HARE HO LDE RS

F I N A N C I A L & C O M P A N Y H I G H L I G H T S

TRIMBLE APPLIES TECHNOLOGY TO MAKE FIELD AND MOBILE WORKERS IN BUSINESSES AND GOVERNMENT

SIGNIFICANTLY MORE PRODUCTIVE. SOLUTIONS ARE FOCUSED ON APPLICATIONS REQUIRING POSITION OR

LOCATION—INCLUDING SURVEYING, CONSTRUCTION, AGRICULTURE, FLEET AND ASSET MANAGEMENT, PUBLIC

SAFETY AND MAPPING. IN ADDITION TO UTILIZING POSITIONING TECHNOLOGIES, SUCH AS GPS, LASERS AND

OPTICS, TRIMBLE SOLUTIONS MAY INCLUDE SOFTWARE CONTENT SPECIFIC TO THE NEEDS OF THE USER. WIRE-

LESS TECHNOLOGIES ARE UTILIZED TO DELIVER THE SOLUTION TO THE USER AND TO ENSURE A TIGHT COUPLING

OF THE FIELD AND THE BACK OFFICE. NASDAQ: TRMB

REVENUE
In $ millions

CASH FLOW FROM OPERATIONS
In $ millions

EBITDA
In $ millions

1,000

900

800

700

600

500

400

300

200

100

140

120

100

180

160

140

120

100

02 03 04 05 06

C O N S I S T E N T G R O W T H
SINCE 2002

Executive Management
Steven W. Berglund
President and Chief Executive Officer

Rajat Bahri
Chief Financial Officer

Richard A. Beyer
Vice President
Mobile Solutions

Bryn Fosburgh
Vice President
Engineering and Construction

Alan R. Townsend
Vice President
Field Solutions

Dennis L. Workman
Vice President
and Chief Technology Officer
Advanced Devices

Ann Ciganer
Vice President
Strategic Policy

Joseph F. Denniston, Jr.
Vice President
Operations

Mark A. Harrington
Vice President
Strategy and Business Development

Debra Hirshlag
Vice President
Human Resources

Irwin L. Kwatek
Vice President and General Counsel

Michael W. Lesyna
Vice President
Business Transformation

Bruce E. Peetz
Vice President
Advanced Technology and Systems

Julie Shepard
Vice President of Finance

John E. Huey
Treasurer

Board Of Directors
Robert S. Cooper, Ph.D
Chairman
Aerospace Business Consultant

Steven W. Berglund
President and Chief Executive Officer

Shareholder Information
Corporate Headquarters
Trimble Navigation Limited
935 Stewart Drive
Sunnyvale, California 94085
Phone: (408) 481-8000
www.trimble.com

John B. Goodrich
Secretary
Chief Executive Officer
MaxSP Corporation

William Hart
Venture Capital Investor and
Business Consultant

Ulf J. Johansson, Ph.D
Director
Telefon AB LM Ericsson

Bradford W. Parkinson, Ph.D
Professor (Emeritus)
Stanford University

Nickolas W. Vande Steeg
Chief Operating Officer
Parker Hannifin Corporation

Independent Auditors
Ernst & Young LLP
Palo Alto, California

Transfer Agent & Registrar
American Stock Transfer & Trust
Company
59 Maiden Lane
Plaza Level
New York, New York 10038
1 (800) 937-5449

Investor Relations Contact
(408) 481-7838
investor_relations@trimble.com

Additional Information
The Company’s annual report on
Form 10-K, as filed with the Securities
Exchange Commission accompanies
this annual report to shareholders
and is also available on the Investor
Relations section of the Company’s
website at: www.trimble.com

Trimble Investor Information
Traded: The NASDAQ Stock Exchange
Symbol: TRMB

©2007, Trimble Navigation Limited.
All rights reserved. Trimble, the Globe
and Triangle logo, AgGPS, EZ-Guide
and TrimTrac are trademarks of
Trimble Navigation Limited regis-
tered in the United States Patent
and Trademark Office. Autopilot,
TrimView, Trimble Outdoors and VRS
are trademarks of Trimble Navigation
Limited. All others trademarks are
property of their respective owners.

P/N: 022540-026

l e t t e r t o o u r s h a r e h o l d e r s

To our shareholders

TO OUR SHAREHOLDERS, EMPLOYEES AND PARTNERS:

2006 was another strong year for Trimble. Total revenues

concepts. At Dimensions 2006 we educated over 2,000

grew 21 percent for the year, baseline adjusted operating

contractors, surveyors and engineers on the potential of

income grew 36 percent and adjusted earnings per share

using technology to transform the nature of the work on

grew 48 percent. Our baseline operating leverage (the ratio

the construction site.

of non-GAAP incremental operating profits to incremental

revenues), which is key to continued margin expansion, was

29 percent for the year. Beyond financials, our strategic

trajectory during the year strengthened and we enter 2007

with good momentum.

Revenue in Field Solutions grew by 9 percent and adjusted

earnings by 21 percent, with stronger revenue growth

occurring in the second half of the year. Revenue from

Geographical Information Systems (GIS) was comparatively

strong relative to the prior year based on an improved

Looking at our results by reporting segment:

product portfolio and a more capable distribution channel.

The business trends in Engineering and Construction (E&C)

continue to be positive with over 21 percent revenue

growth for the year and adjusted earnings up more than

Our agricultural business reflected specific conditions

which resulted in a cosmetically weak first half followed

by a stronger second half.

33 percent year over year. Aside from the residential construc-

Precision Agriculture has been a significant contributor to

tion slowdown in the U.S.— which has not had a material

Trimble’s growth for several years. Our product focus has

impact on our results — external conditions remained rela-

been on providing GPS guidance solutions which enable

tively constant during the year. This steady environment,

more precise operation of farm equipment in the field.

coupled with focused marketing, new products, and new

During 2006, we extended our agricultural product portfolio

product categories, continued to drive segment results.

by creating a new, flow controls product line to leverage the

The Connected Construction Site initiative continues to prog-

ress as we extend the concept of digitizing the information

infrastructure for the engineering and construction process

through both internal development and acquisition. Eight

acquisitions during 2006—including Meridian Systems, XYZ

GPS and computing capabilities now resident on farm equip-

ment as a result of our guidance products. These actions are

taking place against what appears to be more favorable

trends in the agricultural market as a result of investments

in ethanol, strengthening prices, and lower fuel costs.

Solutions, and Quantm International—filled in many of the

Our GIS business has been a steady profit generator for

remaining technology gaps on the Connected Construc-

Trimble for many years, albeit with growth rates typically

tion Site continuum. Our annual user’s conference, Trimble

lower than the Trimble average. To extend our capabilities

Dimensions, continues to provide us with a unique venue

in GIS and to provide a new source of growth, we acquired

in which to establish industry leadership in the emerging

Spacient Technologies late in 2006 which extends our soft-

ware presence in the utilities market.

l e t t e r t o o u r s h a r e h o l d e r s

P E R F O R M A N C E
delIVered

The Mobile Solutions segment had a dynamic 2006 and is

and we are seeing more top-line buoyancy than we have

poised to have an even more dynamic 2007. Reported revenues

for some time. The component business reflected record

grew 93 percent for the year as a result of the combined

unit shipments, in spite of the continuing decline in sales to

effects of organic growth and acquisitions. Reported operating

the automotive industry. Although the rest of this report

profits swung by over $5.6 million during the year—from a

is focused on our end-user markets, the Advanced Devices

loss in 2005 to a profit in 2006.

segment remains a key element in our overall technology

This segment remains a promising emerging arena for

Trimble and a point of strategic emphasis. Our focus remains

picture and provides unique insight into potential tech-

nologies and markets.

on providing solutions for commercial vehicles carrying

Our fundamental corporate mission is to transform the way

valuable loads, and mobile workers performing complex

work is done in our targeted markets through the innova-

tasks. The advantages we provide to the user include the

tive application of technology. Our two overriding goals are

ability to more efficiently perform tasks in the field and, as

to achieve compelling leadership in those markets while

importantly, to more effectively tie the back office and the

delivering financial performance well within the top quartile

field together into a more productive whole.

of the relevant universe of comparable companies. The key

In February 2007 we closed the acquisition of @Road. In dollar

terms this is the most significant acquisition in Trimble’s

history. The transaction is a consistent extension of the

strategic course Trimble has been on since 2001 in this

segment and reflects our belief in the significant potential

of this market and the expectation that the development of

the market will accelerate in the next two to three years. In

elements of our strategy to achieve these goals, which we

established a number of years ago, remain relevant as we

enter 2007. We are fortunate that these fundamental, longer-

term strategies, although constantly being refined and inter-

nally challenged, remain relevant and consistent. We have

therefore been able to focus on the key points of executing

that strategy.

addition to our underlying views of the market, we believe

As Trimble approaches a billion dollar revenue rate, we will

@Road has built a strong product portfolio, has estab-

encounter new opportunities as well as new challenges that

lished a world-class scalable software infrastructure and

result from our growth. On the one hand, increasing size pro-

pioneered new channels. With this transaction, Trimble

vides us with the advantages of scale and additional degrees

achieves a leadership position in terms of capabilities and

of freedom. On the other hand, we face the accompanying

products and can use that position to accelerate the further

potential for increased complexity, less transparency, and

penetration of the market. From that leadership position,

less control if we do not respond effectively to changing

we believe we can make this combination highly successful

circumstances. Our first order response is to intensify our

financially with returns well above our cost of capital.

commitment to the core organizational values that have

The Advanced Devices segment grew 13 percent for the

year but had lower profitability. Although we are not sat-

isfied with the profit picture for the segment, the internal

dynamics of this business are showing improved potential

served us well—including disciplined entrepreneurship, focus

and flexibility in responding to our markets, and tight

coupling across the company to enable faster innova-

tion. In addition, we are expanding the investment in our

employees’ development which will enable them to perform

21%effectively on a larger stage. Beyond that, we are continually

• Rapidly develop the Connected Construction Site concept,

challenging ourselves to improve the basic “plumbing”

with the expectation it will begin to beneficially contribute

of the company from a process and systems perspective.

to E&C results in 2008, without losing focus on our existing

For example, during 2006 we launched “Trimble Delivers,”

product categories.

our program to create a step function improvement in our

execution. As part of that initiative we are training Trimble

employees to utilize conceptual tools to better analyze and

• Constructively combine @Road and Trimble in a manner

that puts us on the path to accretive performance in 2008.

solve complex problems, including Lean and Six Sigma tech-

• Aggressively enter new vertical and enterprise segments of

niques, which we used to successfully implement a number

the mobile resource management market where Trimble

of projects in 2006.

can provide significant value.

We believe we have a grasp of what we need to do to achieve

• Continue to penetrate the agricultural market through

our strategic future. Our first step towards that future is to

aggressive product innovation and extension, channel

effectively address the priorities of today. Some of the specific

refinement, and improvement in the cost-benefit equation

priorities of the next year include the following:

for the farmer.

• Ensure the E&C acquisitions of the last 18 months contri-

• Address additional growth segments in the GIS market,

bute with revenue growth and convergence on the Trimble

with particular emphasis on the utilities market, while

financial model while fulfilling their strategic role. We

continuing to accelerate the rate of our international

expect this contribution to become more meaningful in

development and expansion.

the second half of 2007 and accelerate into 2008.

Ultimately our future success is dependent upon building an

organization that is continually striving to do better and is

capable of doing so. Our more than 3,400 global employees

understand the fundamentals that lie behind our future

success and have the requisite work ethic, smarts, and com-

mitment to improvement necessary to achieve it. The efforts

of our employees in undertaking the difficult challenges

inherent in realizing our potential is, as always, appreciated.

STEVEN W. BERGLUND

President and Chief Executive Officer

revenue CAGR since 2002t r I M B l e a t W o r K

Trimble and
the Connected Construction Site

G P S
Was J us t the BeGINNI NG

20%more productivityTRIMBLE HAS BEEN COLLABORATING WITH ENGINEERING AND CONSTRUCTION PROFESSIONALS

SINCE ITS BEGINNING, ENABLING THEM TO USE POSITIONING TECHNOLOGY IN EACH STAGE OF THE

CONSTRUCTION PROCESS TO DRAMATICALLY IMPROVE PRODUCTIVITY AND ACCURACY. TRIMBLE’S

TECHNOLOGY PROVIDES USERS THE CAPABILITY TO PERFORM VIRTUAL FEASIBILITY AND PLANNING,

ADVANCED SURVEY, 3D MODELING AND DESIGN, AND MACHINE CONTROL-BASED EARTHWORK.

TRIMBLE IS EXTENDING ITS SCOPE THROUGH ITS FOCUS ON THE SEAMLESS CONNECTION OF

ENGINEERING, SURVEYING AND CONSTRUCTION PROCESSES BY TYING TOGETHER SPATIAL, PRODUCT

AND BUSINESS DATA ACROSS THE ENTIRE CONSTRUCTION PROCESS.

• Bechtel is the primary contractor building two new
615-megawatt generating units, a coal storage facility,
a water intake and cooling system, and a 550-foot (168
meter) chimney for the Oak Creek coal-generating
power plant in southeastern Wisconsin. The US$2.2
billion project is the largest lump-sum private construc-
tion project ever for both Wisconsin and Bechtel,
creating significant engineering challenges. Bechtel
is using Trimble’s Connected Construction Site approach
to seamlessly integrate data from its robotic and
GPS survey systems through one controller, greatly
enhancing workflow and site processes. Trimble’s GPS-
based grade control systems have been used for site
prep and connected with the survey work through
electronically shared design and survey files. A Trimble
RTK GPS base station provides a unified coordinate
system for all project contractors. Trimble’s technology
is integral to the Oak Creek project, which will
become a power plant capable of generating
electricity for more than one million customers.

Trimble is the leader in the application of positioning
technologies for the engineering and construction
market. Coupled together with this focus on maintaining
technology leadership is an emphasis on the continual
improvement of our customer support capabilities.
Trimble’s goal is to assist our customers in determining
the best technological solutions and the optimal manner
in which to implement and fold these solutions onto the
daily workflow of the job site.

Trimble’s Connected Construction Site approach ensures
a more productive and efficient information workflow
throughout the entire construction process, as demon-
strated in these actual projects:

• The largest expressway reconstruction project in
Chicago history is currently underway on the Dan Ryan
Expressway. The project will cost the Illinois Depart-
ment of Transportation US$975 million and must be
completed in just three years. Trimble solutions are
being used throughout the project. Trimble VRS™
(Virtual Reference Station) technology is used to cover
5,000 square miles (12,950 square kilometers) and
provide 24-hour, real-time kinematic (RTK) GPS data,
allowing surveyors to use Trimble rovers without
setting up separate base stations. For earthmoving
and grading which require absolute precision —the
road model is downloaded in real-time into Trimble
GPS-based grade control equipment, and calibrated
to within 3/8 of an inch (~one centimeter) tolerance.
By job’s end, Trimble technology will help to set over
300,000 linear feet (91,440 meters) of construction
survey layout on the site, as well as move almost a
million cubic yards (765,000 cubic meters) of dirt.

t r I M B l e a t W o r K

Trimble and Managing
Mobile Resources

C O N V E R G I N G
MoBIle WorK, WorKForCe, aNd Fleet

managementEnabling best practices inmobileTRIMBLE PROVIDES THE INDUSTRY’S MOST COMPREHENSIVE SET OF MOBILE RESOURCE MANAGEMENT SOLUTIONS—

BRINGING TOGETHER THE TOOLS TO MANAGE THE ASSETS, THE MOBILE WORKER AND THE UNDERLYING WORK PROCESS

THROUGHOUT THE MOBILE ENTERPRISE. TRIMBLE’S HANDHELD AND IN-VEHICLE SOLUTIONS

COMBINE MOBILE WORKFORCE PRODUCTIVIT Y WITH FLEET MANAGEMENT ON AN

INTEGRATED, COMMON PLATFORM. COMPANIES IN THE CONSUMER PACKAGED

GOODS (CPG), TRANSPORTATION, DISTRIBUTION, CONSTRUCTION AND FIELD

SERVICE INDUSTRIES USE TRIMBLE PRODUCTS AND SERVICES TO MAXIMIZE

OPERATIONAL PRODUCTIVITY AND EFFICIENCY OF THEIR MOBILE WORK-

FORCE AND MINIMIZE FLEET OPERATING EXPENSES.

Trimble’s solutions are transforming industries that
traditionally relied on the clipboard and radio for
communication and record keeping in the field.
For example:

• A global building solutions company which produces
91.5 million cubic yards (70 million cubic meters)
of ready-mix concrete a year employs a team of
dispatchers who must constantly check incoming
customer orders against concrete production and
delivery capacities. Historically, drivers provided status
updates manually, but dispatchers often received
incomplete or inaccurate information from the field.
Trimble’s TrimView™ RM fleet management solution
automates this process by integrating GPS technology
with sensors on the truck. This solution provides the
dispatcher with real-time vehicle location and status
of all key operational steps including the loading
process, arrival, concrete pour start and end, exit,
and finally arrival back at the plant to complete the
delivery cycle. Beyond this dispatch capability the
solution provides the fleet manager with extensive
data on the fleet’s operation that enables significant
insight that, in turn, facilitates major improvements
in operational efficiencies. As a result, the system
paid for itself in only a few months.

• A worldwide consumer packaged goods (CPG) company
uses Trimble’s solutions to ensure the right mix of prod-
ucts are placed in the right stores, in the right quantities,
at the right time, and that they are appropriately mer-
chandized to maximize sales. The Trimble solution suite
for CPG combines handheld applications for direct store
delivery and retail execution enabling organizations to
better manage the battle for consumer attention at the
shelf where buying decisions are made. Combined with
in-vehicle fleet management solutions, Trimble provides
the CPG mobile worker with the tools they need to work
efficiently while on the road.

• A leading global bottler with a fleet of 200 vehicles is
deploying Trimble’s solutions to electronically transmit
service calls with customer contact, service history, and
equipment data, to their field service representatives.
The service reps will be able to more efficiently execute
their work with less administration and improved
reporting of time, mileage, parts usage and service
call disposition. In addition to wirelessly reporting the
status and metrics of completed service calls, the reps
will be able to track the location and status of company-
owned assets such as coolers and vending machines,
and conduct equipment and retail outlet-based surveys
for more accurate and timely demographic and com-
petitive data.

t r I M B l e a t W o r K

Trimble and
Precision Agriculture

T R A N S F O R M I N G
FarMers’ WorK

onePayback inseasonTRIMBLE’S TECHNOLOGY MAKES IT POSSIBLE FOR FARMERS TO IMPROVE

THEIR OPERATIONS IN EVERY SEASON. TRIMBLE’S GPS AUTOMATED STEERING

SOLUTIONS ENABLE THE FARMER TO WORK HANDS FREE EVEN ON SLOPES AND

ROUGH TERRAIN. TRIMBLE’S ASSISTED GUIDANCE SYSTEMS LEAVE THE OPERATOR

IN CONTROL BUT PROVIDE SIGNIFICANTLY IMPROVED EFFICIENCY AND PRECISION.

ALL OF TRIMBLE’S AGRICULTURAL SYSTEMS GIVE THE FARMER EARLY PAYBACK,

MEASURABLE IN TERMS OF HOURS OF TIME, YIELD PER ACRE AND LOWER INPUT

COSTS. TRIMBLE SOLUTIONS ENABLE THE PRECISION AUTOMATION OF THE AGRICULTURAL

VEHICLE AND IMPLEMENT AND PROVIDE A KEY ELEMENT OF FUTURE BEST PRACTICE ON THE FARM.

Trimble GPS-enabled systems provide guidance capa-
bilities for farming operations, such as tillage, planting,
cultivation and irrigation. These capabilities were aug-
mented in 2006 with the introduction of flow controls
products that provide increased control of spraying.
Trimble also offers laser-based products for land-leveling
and sub-surface drainage.

Trimble’s agricultural systems allow farmers to better
manage their agricultural operations—from planting
to harvesting, and land leveling— to work their land by
the acre. Trimble’s agricultural solutions are used by both
small and large farmers for applications like these:

• A father and son farming team uses the EZ-Guide® Plus
lightbar guidance system on their 4,000-acre (1,619
hectare) farm. They attach it to a self-propelled sprayer
enabling them to finish spraying a 160-acre field in just
45 minutes. The EZ-Guide Plus system reduces overlap
and skip, making it easy to spray 28 rows at a time, with
a 90-foot boom. They also use the AgGPS® Autopilot™
system for planting twelve 38-inch rows and spraying
28 rows per pass to within an inch of accuracy. Together,
the two applications save the team about US$10.00 per
acre (~.5 hectare) by reducing the over application of
chemicals. Hence, they were able to recoup the cost
of the Trimble system two fold in less than six months.

• Grimmway Farms, a large carrot producer based in Cali-
fornia, uses eight AgGPS Autopilot systems to prepare
its crop beds on the 35,000 acres (14,164 hectares) of land
which it farms. Grimmway’s tractors use the AgGPS
Autopilot steering systems to automatically steer in
consistently straight rows ensuring minimum overlap.
The AgGPS Autopilot systems significantly increase pro-
ductivity, efficiency and quality by improving accuracy,
decreasing guess rows and reducing down time due to
fog or nightfall.

• A cotton grower who lost 6,200 acres (2,509 hectares)
of cotton due to heavy rain and hail was able to use
his Autopilot RTK system around the clock to replant
most of his acreage. In less than four days he replanted
4,800 acres (1,942 hectares) of cotton and planted 1,400
acres (566 hectares) of sunflowers. The Trimble equip-
ment allowed him to rapidly plant the acreage with pre-
cise row widths and accurate seed placement, resulting
in a good yield for what otherwise would have been a
completely unproductive season.

Markets Served

Product Examples

Representative Customer

eNGINeerING aNd
CoNstruCtIoN

68% of total revenue

surVey
Integrated surveying solutions:
GNSS/GPS systems
Robotic, servo and mechanical total stations
Digital levels and theodolites

Spatial imaging:
3D laser scanners
Spatial stations

Enabling products:
Data collectors/field computers
Field and office application software

CoNstruCtIoN
Machine guidance systems
Laser and optical positioning and alignment tools
Field and office application software

INFrastruCture
GPS reference networks and software

FIeld solutIoNs

15% of total revenue

aGrICulture
Manual and automated steering systems
for farm vehicles and implements
Flow controls and boom switching for chemical application
Grade control systems for irrigation and drainage

MappING aNd GIs
Handheld GPS field data collectors
Field and office application software

adVaNCed deVICes

11% of total revenue

eMBedded Gps produCts
Chipsets and boards
Embedded silicon and firmware

tIMING
CDMA and WiMax base station clocks
Time and frequency boards and instruments

INteGrated produCts
TrimTrac® Locator

Surveyors
Civil engineers
Construction contractors
Transportation agencies
Utility companies
Plant engineers

Earthmoving contractors
General construction contractors
Utility contractors
Wall and ceiling contractors
Transportation agencies

Government and scientific agencies
General construction contractors
Surveyors

Farmers
Agricultural contractors

Utility companies
Natural resource agencies
Government agencies

Electronics OEMs
Portable appliance manufacturers

Wireless infrastructure providers
Wireless location solution providers

Automatic vehicle location
Asset tracking/logistics management

applaNIx
Integrated inertial/GPS positioning and orientation systems

Land, marine and aerial surveying and
mapping contractors

deFeNse
GPS receivers for aircraft
Military time and frequency boards

trIMBle outdoors™ serVICe
Mapping software on GPS-enabled mobile phones
Web-based mapping application

Fleet MaNaGeMeNt
GPS-enabled mobile devices and software

seCurIty
GPS-enabled mobile devices

MoBIle WorKer produCtIVIty tools
GPS-enabled mobile devices and software

U.S. Department of Defense
Allied defense ministries
Defense contractors

Outdoor enthusiasts

Local fleet operators
Municipal fleet operators

Commercial vehicles

Construction supply
Direct store delivery
Public safety

MoBIle solutIoNs

6% of total revenue

F O R M 1 0 K
trIMBle NaVIGatIoN lIM Ited

P E R F O R M A N C E G R A P H

The following graph shows a five-year comparison of the cumulative total return for the Company’s
Common Stock, the Nasdaq Composite Total Return Index (U.S.), and the Standard & Poor’s Information
Technology Sector Index: (1)

CoMparIsoN oF FIVe-year CuMulatIVe total returN*

among trimble Navigation limited, the NasdaQ Composite Index and the s & p Information technology Index

$ 500

450

400

350

300

250

200

150

100

12 /01

12 /02

12 /03

12 /04

12 /05

12 /06

trIMBle NaVIGatIoN lIMIted

NasdaQ CoMposIte

s & p INForMatIoN teChNoloGy

(1) The data in the above graph is presented on a calendar year basis through December 31, 2006 which is the most
currently available data from the indicated sources. The Company adopted a 52-53 week fiscal year effective upon
the end of fiscal year 1997 and the actual date of the Company’s 2006 fiscal year end was December 29, 2006. Any
variations due to any differences between the actual date of a particular fiscal year end and the calendar year end
for such year are not expected to be material.

* Assumes an investment of $100 on December 31, 2001 in the Company’s Common Stock, the Nasdaq Composite
Total Return Index (U.S.), and the Standard & Poor’s Information Technology Sector Index including reinvestment of
dividends. Total returns assume the reinvestment of dividends for the indexes. The Company has never paid dividends
on its Common Stock and has no present plans to do so.