Trimble (TRMB) Proxy Filing summary

Executive summary

• Quarterly report filing delayed due to ongoing assessment of internal controls and audit procedures related to revenue systems and IT controls.

• No errors identified to date that would require restatement of previously released financial results.

• Unaudited Q2 2024 results: revenue $870.8M (down from $993.6M YoY), GAAP net income $1,316.4M (up from $44.6M YoY), diluted EPS $5.34 (up from $0.18 YoY).

• Unaudited H1 2024 results: revenue $1,824.1M (down from $1,909.0M YoY), GAAP net income $1,373.6M (up from $173.4M YoY), diluted EPS $5.56 (up from $0.70 YoY).

• Financial results are subject to change pending completion of the Form 10-Q and audit procedures.

Audit committee and external auditor matters

• Audit Committee and management identified a material weakness in IT and revenue-related controls as of December 29, 2023.

• Ernst & Young LLP is conducting additional audit procedures in response to identified weaknesses.

• No withdrawal of audit report on prior financial statements; ongoing evaluation may reveal further weaknesses.

Risk oversight and compliance

• Management is implementing remedial actions and new controls to address material weaknesses in internal controls.

• Remediation includes enhanced review controls over third-party valuation specialists and reassessment of IT general and application controls.

• Material weaknesses will be considered remediated only after sufficient operation and testing of new controls.