2010 Trimble Navigation Annual Report
MARKETS SERVED
PRODUCT EXAMPLES
REPRESENTATIVE CUSTOMERS
Engineering and
Construction
55% of revenue
Survey
Integrated surveying solutions combine technologies such as GNSS, optical, 3D laser
scanner & 3D spatial imaging with field-rugged, mobile computing, advanced mobile and
office software, and real-time communications, providing surveyors with productivity enhancing
solutions. The Trimble branded solutions are complemented by the Spectra PrecisionTM and Nikon
branded solutions which target a different market segment.
Construction
Connected SiteTM solutions utilize GNSS, optical, laser and advanced information technologies to
provide automated construction machine control, site positioning, measurement and alignment
systems, Building Information Modeling (BIM) and life cycle project management solutions.
These solutions enhance construction operations, provide project management and asset
management, reducing waste and improving efficiency.
Infrastructure
GNSS reference networks, software and service.
GeoSpatial
Integrated LiDAR, photogrammetry and GNSS/INS systems, coupled with advanced processing and
analysis tools, for road asset management, pavement inspection, mobile and airborne surveying.
Field Solutions
25% of revenue
Agriculture
Connected farm solutions provide manual and automated steering systems for farm vehicles and
implements to improve efficiency and reduce environmental impact; flow and overlap control for
efficient chemical, fertilizer and seed application; grade control systems for irrigation and drainage; all
coupled with farm reporting and planning software.
Mapping and GIS
Handheld GNSS data collectors with integrated field and office application software provide
accurate solutions for Geographic Information System and digital mapping users.
Utilities
Utility outage management, incident management, asset management, work management and
field inspection solutions enable utility operators to reduce outage times, improve safety and
meet compliance requirements.
Mobile Solutions
12% of revenue
Fleet and Mobile Worker Management
Integrated mobile resource management solutions for fleet operators provide scheduling and
dispatch, as well as vehicle diagnostic and field service solutions that enhance driver safety, reduce
fuel consumption costs and environmental impact, while improving customer service.
Surveyors & civil engineers in the public and
private sectors
Cities and governmental agencies
Cadastral agencies and companies
Utilities
Industrial plant engineers
Oil and gas engineers
Power generation facilities
Mapping contractors
Architects
Specialized applications such as railway tunneling,
monitoring and mining
Earthmoving contractors
General construction contractors
Concrete contractors
Mechanical, electrical, and
plumbing contractors
Wall and ceiling contractors
Transportation agencies
Civil engineering and design firms
Construction rental companies
Civil engineers
Public and private sector GNSS network operators
Utilities
Natural resource agencies
National & local government agencies
Survey and civil engineering companies
Transportation agencies
Aerial mapping companies
Government agencies
Farmers
Agricultural contractors
Agrichemical companies
Government agencies
Environmental/natural resource agencies
Utilities
Transportation companies
Water, electric and gas utilities
Construction supply contractors
Transportation and distribution companies
Private fleets
Communications companies
Direct store delivery
Field service
Energy
Utilities
Government agencies
Forestry
Connected forest solutions integrate fleet management with forestry management software and
measurement tools to optimize logging operations and improve efficiency.
Forestry management companies
Land management companies
Public Safety
Advanced public safety solutions provide systems for electronic citations and field-based reporting
to improve accuracy and efficiency, along with solutions for accident scene measurement and
investigation.
Police and sheriffs’ departments
National park, campus and business security
agencies
Embedded GNSS Products
GNSS and communications component solutions for original equipment manufacturers,
including GNSS chipsets, boards, embedded silicon and firmware.
Electronics OEMs
Portable appliance manufacturers
Systems integrators
Advanced Devices
8% of revenue
Timing
3G and 4G base station GNSS clocks for telecommunications network synchronization; time and
frequency boards and instruments for high-precision, GPS-based timing and synchronization.
Wireless infrastructure providers
Wireless location solution providers
Applanix
Very high precision integrated inertial/GNSS positioning and orientation systems used for positioning
in land, marine and airborne data collection applications. Trimble indoor mobile mapping solution
provides accurate and seamless 3D modeling of the interior of buildings and underground structures.
Land, marine and airborne surveying and
mapping contractors and systems integrators
Building owners and facility managers
Defense
Military specification GPS receivers for aircraft; military time and frequency boards.
Trimble Outdoors™ Service
Web-based mapping and outdoor enthusiast social networking software used on a wide variety
of GPS-enabled mobile phones.
U.S. Department of Defense
Allied defense ministries
Defense contractors
Outdoor enthusiasts
TO OUR SHAREHOLDERS:
Letter to Shareholders
2010 In Review
2010 represented a transition from a badly damaged
marketplace in 2009 to an environment with oppor-
tunities. Although some of our markets remained
constrained throughout the year we were able to
demonstrate meaningful improvement in 2010 with
revenue up 15 percent, non-GAAP operating income
up 27 percent, and non-GAAP EPS up 55 percent.
Entering 2011, we find conditions that are undoubt-
edly better than they have been for almost three years
but that cannot yet be described as universally robust.
This improvement has allowed us to turn our relative
focus from cost control and margin maintenance back
to growth.
Our experience across the reported segments varied:
• Engineering and Construction segment results
demonstrated the most significant recovery with rev-
enue growth of 24 percent and non-GAAP operating
earnings growth of 84 percent. The most significant
improvement was demonstrated in our heavy and
highway business. Although most other businesses in
the segment also demonstrated some level of recovery, a
return to our historical growth trajectory awaits some
recovery in commercial and residential construction in
the U.S. and Europe.
• Field Solutions segment results also demonstrated
recovery with particularly strong results in the second
half of the year. Revenue growth was 9 percent and
non-GAAP operating earnings grew by 12 percent.
Agriculture benefited from an improving farm econ-
omy and GIS also reflected the improving economy,
partially offset by the effects of lower government
spending.
• Mobile Solutions segment results remained unim-
pressive. Revenue was effectively flat and operating
earnings reflected a significant decline. The key issues
in this segment were the loss of a large key account
early in the year, the continued effects of the economy
and, in some cases, our own execution.
• Advanced Devices segment results reflected small
revenue and operating earnings increases. Slower
economic conditions and price pressure constrained
the performance of the segment.
Looking Forward
We currently expect 2011 revenue growth to accelerate
closer to 20 percent as a result of organic growth and
acquisitions. We expect the growth in non-GAAP oper-
ating income will be consistent with operating leverage
of approximately 25 percent. This scenario assumes
economic conditions remain relatively unchanged. Any
economic shocks would moderate growth while any
revival in commercial and residential construction, or
an acceleration in U.S. or European economies, could
provide us with meaningful upside.
From 1999 through 2008 we demonstrated a com-
pound annual revenue growth rate of almost 20
percent. The economic meltdown that intensified in
late 2008 negatively impacted this trajectory. Regaining
our long-term growth momentum will require us to
demonstrate a combination of traditional growth
enablers as well as new capabilities. Let me describe
some of these requirements.
Adjacencies
One factor that enables Trimble’s growth strategy is the
aggressive application of the concept of adjacency.
Adjacencies can be either vertical or horizontal. A vertical
adjacency is the expansion of solutions provided to our
existing customers, leveraging our brand, our channel,
and our domain knowledge. A horizontal adjacency
occurs when we bring our existing product platforms
into new market segments. Our current efforts in forestry,
railroads, and utilities represent horizontal extensions.
End-to-End Solutions
We differentiate ourselves by emphasizing solutions
that meet the total continuum of customer require-
ments. The solution extends beyond the physical
product and includes support, applications software,
service, documentation, and training. One continuing
example of this commitment is the Trimble Dimensions
user conference, which provides a comprehensive ed-
ucational forum for our users. The 2010 conference
was held in Las Vegas with over 2,900 participants.
Internationalization
Our market opportunities are global and Trimble’s
success is intimately tied to our increasingly global
footprint. This is reflected in our physical and orga-
nizational infrastructure with more than 100 facilities
in 26 countries and dealer representation in virtually
every country. We also emphasize a strong element of
localization in our product solutions, particularly in the
emerging economies. In many of those cases, we must
be humble enough to reinvent ourselves when our
world solution is not appropriate for the local market.
Channels
A number of fundamental long-term trends favor
Trimble. These include infrastructure development in
emerging economies, higher fertilizer costs, increasing
environmental regulation, higher fuel prices, escalating
labor costs, and higher expectations for supply chain
performance. Our challenge will be to develop
effective go-to-market strategies that can successfully
capture the resulting opportunities. Central to the
strategy is a strong and viable channel which will
remain heavily reliant on third-party dealers. However,
pioneering and penetrating our markets will require
us to be conceptually flexible. In most cases we do
not sell a product in competition with other products
but we sell an alternative way of performing work.
An innovative new channel currently being rolled out
is the SITECH® Technology Dealership, a worldwide,
commonly branded distribution network developed
in collaboration with Caterpillar.
Acquisitions and Alliances
Although deal activity has never been central to our
strategy it has played a supporting role. In 2010 we
invested $147 million in acquisitions. In addition,
we finalized a number of joint ventures during the
year including the Rusnavgeoset joint venture with
Russian Space Systems, and Intelligent Construction
Tools, a joint venture with Hilti. These acquisitions and
joint ventures allow us to establish or expand market
beachheads and to fill in technology or product gaps.
Virtually all of the more than fifty acquisitions we
have made since 2000 have flourished under Trimble
ownership as they provided access to increased dis-
tribution, sources of new technology, and adequate
capital resources.
Innovation
Research and Development spending in 2010 was 11
percent of revenue, which is consistent with our busi-
ness model. Our challenge is to be alert to continually
evolving capabilities that can be useful in our user
applications. New wireless standards, faster proces-
sors, new materials technologies, high-speed networks,
and larger memory storage have all contributed to the
creation of products and solutions. We are continuously
evaluating new technologies that enable us either to create new classes of products and solutions or to
significantly extend the capabilities of current product categories. For example, we have recently added RFID
solutions to our range of capabilities.
Commitment to Financial Returns
The current Trimble portfolio is capable of generating a non-GAAP operating margin of greater than 20 percent—a
level we achieved prior to the late 2008 economic crisis. This margin performance, combined with our rela-
tively low level of capital intensity, has historically enabled us to generate superior long-term returns. Our
performance in 2009 and 2010 reflects the robustness of our financial model in adverse circumstances and
the adaptability of the Trimble organization.
Organization
The foundation for creating value is the Trimble organization. The quality, capabilities, and behavior of our
organization enable us to undertake challenges that our competitors may not be equipped to take on. Our
primary organizational challenge is to effectively map our significant technological capabilities onto a wide
range of market opportunities without losing our inherent entrepreneurial edge.
Our core organizational concept remains centered on focused divisions with an emphasis on responsiveness,
accountability and transparency. This has resulted in a relatively large number of businesses, with each as-
signed a clear market task and the resources necessary to achieve it. These relatively autonomous units have
been the engines that have created much of our market and financial success over the last ten years. We
continue to augment this core structure to better leverage the expanding Trimble technology capabilities,
to address the requirements of international markets, to pursue larger-scale industry opportunities, and to
more effectively participate in alliances with other companies.
We have been through a demanding three-year period which posed significant challenges and uncertainties.
The Trimble organization has responded to the challenges and elevated itself. My thanks to everyone who
contributed. In particular, I want to acknowledge the approximately 200 Trimble employees in Christchurch,
New Zealand. Christchurch suffered two major earthquakes within a six-month period in late 2010 and
early 2011, both of which have been followed by innumerable aftershocks. In spite of the disruption and
uncertainty, these Trimble employees have persevered in good Kiwi style.
Steve Berglund
President and CEO
FINANCIAL HIGHLIGHTS
Revenue
in $ millions
EBITDA
in $ millions
Cash Flow from Operations
in $ millions
1400
_
1200
_
1000
_
800
600
400
200
0
_
_
_
_
_
300
250
200
150
100
50
0
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_
_
_
_
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240
200
160
120
80
40
0
_
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_
_
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_
06 07 08 09 10
06 07 08 09 10
06 07 08 09 10
COMPARISON OF 5-YEAR CUMULATIVE TOTAL RETURN*
Among Trimble Navigation Limited, the NASDAQ composite index and the S&P information technology sector index
$250
$200
$150
$100
$50
$0
12/05 12/06 12/07 12/08 12/09 12/10
Trimble Navigation Limited
NASDAQ Composite
S&P Information Technology
The above graph compares the cumulative 5-year total return provided shareholders on Trimble Navigation Limited’s
common stock relative to the cumulative total returns of the NASDAQ Composite index and the S&P Information
Technology index. An investment of $100 (with reinvestment of all dividends) is assumed to have been made
in our common stock and in each of the indices on 12/31/2005 and its relative performance is tracked through
12/31/2010. The Company has never paid dividends on its common stock and has no present plans to do so.
* 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 2010 fiscal year end was December 31, 2010. 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.
————————————
MANAGEMENT INFORMATION
EXECUTIVE MANAGEMENT
BOARD OF DIRECTORS
SHAREHOLDER INFORMATION
Ulf J. Johansson, Ph.D
Chairman
Business Consultant
Director, Telefon AB LM Ericsson
Nickolas W. Vande Steeg
Vice Chairman
Trustee, Azusa Pacific University
Venture Capital Investor
Business Consultant Director, Wabtec
Corporation
Steven W. Berglund
President and Chief Executive Officer
John B. Goodrich
Secretary
Business Consultant
William Hart
Venture Capital Investor
Business Consultant
Merit E. Janow
Professor International Economic
Law and International Affairs,
Columbia University
Bradford W. Parkinson, Ph.D
Executive Consultant
Professor (Emeritus),
Stanford University
Mark S. Peek
Co-President, Business Operations and
Chief Financial Officer, VMware, Inc.
Corporate Headquarters
Trimble Navigation Limited
935 Stewart Drive
Sunnyvale, California 94085
Phone: (408) 481-8000
www.trimble.com
Independent Auditor
Ernst & Young LLP
San Jose, California
Transfer Agent & Registrar
American Stock Transfer & Trust Company
59 Maiden Lane
Plaza Level
New York, New York 10038
(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
©2011, Trimble Navigation Limited. All rights
reserved. Trimble, the Globe and Triangle logo,
SITECH and Spectra Precision are registered
trademarks of Trimble Navigation Limited or
its subsidiaries, registered in the United States
and/or in other countries. Connected Site and
Trimble Outdoors are trademarks of Trimble
Navigation Limited. All other trademarks are the
property of their respective owners.
Steven W. Berglund
President and Chief Executive Officer
Rajat Bahri
Chief Financial Officer
Bryn Fosburgh
Vice President
Christopher W. Gibson
Vice President
Mark A. Harrington
Vice President
James Veneziano
Vice President
Erik J. Arvesen
Vice President, Agriculture Division
Ann Ciganer
Vice President, Strategic Policy
Joseph F. Denniston, Jr.
Vice President,
Spectra Precision Division
John E. Huey
Treasurer
James A. Kirkland
Vice President and General Counsel
Jürgen D. Kliem
Vice President,
Strategy and
Business Development
Peter O. Large
Vice President, Channel Development
Bruce E. Peetz
Vice President,
Advanced Technology and Systems
Julie Shepard
Vice President, Finance
Mary Kay Strangis
Vice President, Human Resources
Trimble Navigation Limited
NASDAQ Composite
S&P Information Technology
Australia
Fortitude Valley, QLD
Melbourne, VIC
Sydney, NSW
Belgium
Leper
Brazil
Campinas
Canada
Kamloops, British Columbia
Vancouver, British Columbia
Toronto, Ontario
Montréal, Québec
Chile
Los Condes
China
Beijing
Shanghai
France
Fontenay-sous-Bois
Germany
Biberach an der Riß
Braunschweig
Höhenkirchen-Siegertsbrunn
Jena
Kaiserslautern
Kirchheim u.T.-Jesingen
Raunheim
Stuttgart
Wunstorf
India
Chennai
New Delhi
Pune
Ireland
Cork
Italy
Vimercate (MI)
Japan
Tokyo
Kenya
Nairobi
Korea
Seoul
Mexico
Tecate, BC
The Netherlands
Eersel
Sliedrecht
New Zealand
Christchurch
Russia
Moscow
Singapore
South Africa
Gauteng
Spain
Madrid
Sweden
Danderyd
Thailand
Bangkok
United Arab Emirates
Dubai
United Kingdom
Derby
Glossop
Hook
Ipswich
United States
Huntsville, AL
Tempe, AZ
Tucson, AZ
Folsom, CA
Long Beach, CA
Milpitas, CA
Redding, CA
Sunnyvale, CA
Ukiah, CA
Englewood, CO
Westminster, CO
Deerfield Beach, FL
Alpharetta, GA
Ames, IA
Mound City, IL
Hamilton, IN
Cambridge, MA
Waltham, MA
Dayton, OH
Corvallis, OR
Knoxville, TN
Plano, TX
Chantilly, VA
Liberty Lake, WA
CORPORATE HEADQUARTERS
Trimble Navigation Limited
935 Stewart Drive
Sunnyvale, California 94085
(408) 481-8000
www.trimble.com