Slide 1: First Quarter 2023 Earnings Conference Call
Tom Deitrich – President and Chief Executive Officer Joan Hooper – Senior Vice President and Chief Financial Officer Paul Vincent – Vice President, Investor Relations First Quarter 2023 Earnings Conference Call May 4, 2023 ©2023 ITRON PROPRIETARY ©2023 ITRON PROPRIETARY Q1 2023 Earnings Conference C
Slide 2: Forward Looking Statements
FORWARD LOOKING STATEMENTS Certain matters in this presentation and being discussed today, that are not statements of historical fact, constitute forward-looking statements relating to current or future financial performance, management's plans and objectives for future operations, product plans and
Slide 3: Conference Call Agenda
CONFERENCE CALL AGENDA » CEO – Business and Operations Update » CFO – Financial Results and Q2’23 Outlook » Q&A
Slide 4: Q1'23 Performance Summary
Q1’23 PERFORMANCE SUMMARY » Revenue in Q1’23 of $495 million » Adjusted EBITDA in Q1’23 of $39 million » Non-GAAP diluted EPS in Q1’23 of $0.49 ©2023 ITRON PROPRIETARY Q1 2023 Earnings Conference Call | 4
Slide 5: Bookings and Backlog
BOOKINGS AND BACKLOG » Q1’23 bookings of $428M $4.2 $4.6 $4.6 $4.1 $3.9 » Book to bill of 0.9 » Ending backlog of $4.6B $2.1 $1.9 $1.6 $1.7 $1.6 Q1'22 Q2'22 Q3'22 Q4'22 Q1'23 12-Month Backlog Total Backlog Note: Chart in US$ billions, the revenue from Q1’23 12-month backlog may vary based on actual
Slide 6: Operational Insights
OPERATIONAL INSIGHTS » Market environment remains robust » Supply chain improving » Strong operational execution and agility » Near term visibility improvement ©2023 ITRON PROPRIETARY Q1 2023 Earnings Conference Call | 6
Slide 7: Consolidated GAAP Results: Q1'23
CONSOLIDATED GAAP RESULTS: Q1’23 $ in millions (except per share amounts) Q1 2023 Q1 2022 Change Revenue $494.6 $475.3 4% Change in constant currency 6% Gross margin 31.6% 28.4% 320 bps Operating income (loss) ($10.4) $6.8 NM Net income (loss) attributable to Itron, Inc. ($11.8) $0.9 NM Earnings (lo
Slide 8: Consolidated Non-GAAP & Cash Results: Q1'23
CONSOLIDATED NON-GAAP & CASH RESULTS: Q1’23 $ in millions (except per share amounts) Q1 2023 Q1 2022 Change Non-GAAP operating income $31.3 $9.3 237% Non-GAAP operating margin 6.3% 2.0% 430 bps Non-GAAP net income attributable to Itron, Inc. $22.4 $5.2 333% Adjusted EBITDA $39.5 $18.9 109% Adjusted
Slide 9: Revenue Year-over-Year Bridge: Q1'23
REVENUE YEAR-OVER-YEAR BRIDGE: Q1’23 -11% +13% +12% +6% Chart in millions, Quarterly totals reflect actual currencies; all variances other than FX exclude currency impact. Chart includes rounding. ©2023 ITRON PROPRIETARY Q1 2023 Earnings Conference Call | 9
Slide 10: Non-GAAP EPS Year-over-Year Bridge: Q1'23
NON-GAAP EPS YEAR-OVER-YEAR BRIDGE: Q1’23 US$ per share Quarterly totals reflect actual currencies; all variances other than FX exclude currency impact. Chart includes rounding. ©2023 ITRON PROPRIETARY Q1 2023 Earnings Conference Call | 10
Slide 11: Device Solutions Segment: Q1'23
DEVICE SOLUTIONS SEGMENT: Q1’23 Revenue, gross margin and operating margin $ in millions, actual currency Revenue down 15% and 11% in constant currency $140 » Sale of mechanical C&I gas business $118 » Discontinued lines of business / purposeful product pruning 20.1% 15.6% Gross margin up 450 bps 11
Slide 12: Networked Solutions Segment: Q1'23
NETWORKED SOLUTIONS SEGMENT: Q1’23 Revenue, gross margin and operating margin $ in millions, actual currency $313 Revenue up 12% and 13% in constant currency $279 » Largely due to improving component supply 32.8% 33.7% Gross margin up 90 bps » Favorable product and solutions mix 23.9% » Improved ope
Slide 13: Outcomes Segment: Q1'23
OUTCOMES SEGMENT: Q1’23 Revenue, gross margin and operating margin $ in millions, actual currency Revenue up 10% and 12% in constant currency $63 » Higher software license and managed services $57 42.7% 38.8% Gross margin up 390 bps » Favorable mix » Increased operational efficiencies 20.5% Operatin
Slide 14: Debt and Liquidity Overview: March 31, 2023
DEBT AND LIQUIDITY OVERVIEW: MARCH 31, 2023 US$M Debt $460 » Net leverage 2.3x at end of Q1’23 » Zero interest convertible notes $264 Free Cash Flow and Liquidity » Free cash flow of ($5M) » Cash and equivalents of $196M » $500M revolver 1 Total Debt Net Debt 1. Excludes amortization of debt fees. ©
Slide 15: Q2'23 Outlook
Q2’23 OUTLOOK Revenue of $510 - $525 million • At the midpoint, up $86M or 20% vs. Q2 2022 Non-GAAP diluted EPS of $0.25 - $0.35 • At the midpoint, up $0.23 vs. Q2 2022 ©2023 ITRON PROPRIETARY Q1 2023 Earnings Conference Call | 15
Slide 16: Appendix
APPENDIX
Slide 17: FX Impact Summary
FX IMPACT SUMMARY $ in millions Average USD/Euro: $1.07 Q1’23 vs $1.12 Q1’22 YoY YoY Change Revenue Q1’23 Excluding Change FX Device Solutions $118 -15.3% -11.0% Networked Solutions $313 12.4% 13.0% Outcomes $63 10.4% 12.4% Total $495 4.1% 5.9% Non-GAAP EPS - diluted $0.49 $0.38 $0.39 Chart includes
Slide 18: Non-GAAP Financial Measures
NON-GAAP FINANCIAL MEASURES To supplement our consolidated financial statements, which are prepared in accordance with accounting principles generally accepted in the United States (GAAP), we use certain adjusted or non- GAAP financial measures, including non-GAAP operating expense, non-GAAP operati
Slide 19: GAAP to Non-GAAP Reconciliations
GAAP TO NON-GAAP RECONCILIATIONS ©2023 ITRON PROPRIETARY Q1 2023 Earnings Conference Call | 19
Slide 20: GAAP to Non-GAAP Reconciliations
GAAP TO NON-GAAP RECONCILIATIONS ©2023 ITRON PROPRIETARY Q1 2023 Earnings Conference Call | 20
Slide 21: Thank You
INVESTOR RELATIONS CONTACTS Paul Vincent Vice President, Investor Relations 512-560-1172 paul.vincent@itron.com David Means Director, Investor Relations Thank You 737-242-8448 david.means@itron.com www.itron.com