Badger Meter, Inc. · NYSE:BMI
Badger Meter — Investor Presentation (October 2024)
24 slides from Badger Meter's investor presentation, October 2024
Slide 1: General Investor Presentation, October 2024
Badger Meter General Investor Presentation* October 2024 *See separate Q3 2024 Earnings Slide Deck © 2024 Badger Meter, Inc. 1
Slide 2: Forward Looking Statements
Forward Looking Statements Certain statements contained in this presentation as well as other information provided from time to time by Badger Meter, Inc. (the “Company”) or its employees, may contain forward-looking statements that involve risks and uncertainties that could cause actual results to
Slide 3: Badger Meter is a Premier Smart Water Solutions Provider
Badger Meter is a Premier Smart Water Solutions Provider • Comprehensive suite of digital smart water offerings including flow measurement, water quality, pressure and network monitoring with software / analytics solutions $ • Industry leader in North American smart water solutions; global niche pos
Slide 4: "Choice Matters" Portfolio of Solutions to Solve Customer Challenges
“Choice Matters” Portfolio of Solutions to Solve Customer Challenges Secular Drivers Solutions Outcomes Revenue and Population Growth Workforce Churn / Capacity Demand Change Retirements Aging infrastructure Customer Experiences Efficiency Benefits Asset Maintenance Stakeholder Participation Regulat
Slide 5: BlueEdge by Badger Meter – Simplifying Customer Path to End-to-End Solutions
BlueEdge by Badger Meter – Simplifying Customer Path to End-to-End Solution Offerings • Introduced “umbrella” name for suite of tailorable solutions that integrate water technology, software and services for the management of water • BlueEdge is customizable to address applications across the water
Slide 6: Third Quarter Financial Snapshot Reflects Strong Performance Across an Array of Metrics
Third Quarter Financial Snapshot Reflects Strong Performance Across an Array of Metrics (US$ in millions, except per share data) Q3 2024 Q3 2023 Change • Utility water sales increased 14% with solid adoption across the tailorable BlueEdge suite of solutions Sales $208.4 $186.2 11.9% including meters
Slide 7: Longstanding Capital Allocation Priorities with Ample Liquidity to Execute
Longstanding Capital Allocation Priorities with Ample Liquidity to Execute • Strong free cash flow, working capital Internal Investment to support organic management 1 growth and sustain core business • No outstanding debt obligations and $259M of cash at September 30, 2024; $150M untapped revolver
Slide 8: Over the Past Five Years We've Evolved and Expanded Our Served Market
Over the Past Five Years We’ve Evolved and Expanded Our Served Market Capitalizing On Macro Growth Tailwinds • Strategy evolution aligned with customer desire for CEO Transition Early 2020s Today comprehensive and tailorable solutions from trusted source Defend and grow Premier AMI Comprehensive & s
Slide 9: We Have Fundamentally Improved Our Financial Profile
We Have Fundamentally Improved Our Financial Profile Delivering Strong Sales Growth, Recurring Revenue, Improving Margins and Cash Generation Q3 YTD 2024 Consolidated Sales Growth SaaS Revenue Growth Revenue in Millions $ Revenue in Millions $ $800 $50 19% Sales Growth $700 $40 $600 $30 SaaS $500 $2
Slide 10: 2023 Sustainability Report Highlights Continued Progress
2023 Sustainability Report Highlights Continued Progress to Mitigate Risk, Reduce Cost and Enable Customer Outcomes ↓ 18% • Demonstrated outperformance from both a financial and GHG emissions sustainability perspective intensity • Integral to our business – value creating (customers) and value prese
Slide 11: Creating Long-Term Shareholder Value by Capitalizing on Favorable Demand, Industry Dynamics and Execution
Creating Long-Term Shareholder Value by Capitalizing on Favorable Demand, Industry Dynamics and Execution • Innovation leader with • Durable macro trends • Strong cash flow and • Differentiated • Strong engagement expanding technology- support long-term borrowing capacity performance despite • Value
Slide 12: Background Information
Background Information 12
Slide 13: Providing Insight into Recent Investor Topics of Interest
Providing Insight into Recent Investor Topics of Interest (Please refer to transcript of the Q1 2024 earnings call for further details on each item) Common Investor Topics Badger Meter View An ultrasonic meter is a smart meter Meter measurement technology is not what makes a meter “smart” – it is th
Slide 14: Badger Meter Is the Smart Water Innovation Leader and Continues to Invest in R&D
Badger Meter Is the Smart Water Innovation Leader and Continues to Invest in R&D Driving Enhancements in Smarter Measurement & Actionable Data ➔ Enhanced Operational Efficiencies Ultrasonic Metering Water Quality Cellular & IoT Software & Analytics • Additional data elements – • Low maintenance, • M
Slide 15: Badger Meter Delivers on More Than a Century of Smart Water Innovation
Badger Meter Delivers on More Than a Century of Smart Water Innovation •Acquired Racine Federated, broadening industrial flow measurement applications •2013 Acquired AquaCue to advance smart water offerings - cellular radio and BEACON •Listed on the American software expertise Stock Exchange. Two Mi
Slide 16: Supporting Customers from Our Global Manufacturing and Innovation Footprint
Supporting Customers from Our Global Manufacturing and Innovation Footprint Ultrasonics: Cellular / IoT: Lulea, Sweden Milwaukee, WI, USA Milwaukee, WI, USA Software: ❖ Lulea, Sweden – Ultrasonic technology development Milwaukee, WI – Communication technologies, Los Gatos, CA, USA advanced metering
Slide 17: AMI Adoption Accelerating with Business Case for Utilities Well Understood
AMI Adoption Accelerating with Business Case for Utilities Well Understood; Timing Aligned to Meter Replacement Cycle Bringing Higher ASP Opportunity MANUAL READ MECHANICAL METER WITH REGISTER The Business Case The Solutions ~$70 Why are utilities willing to pay more? How our leading technologies de
Slide 18: Badger Meter Enjoys a Strong Market Position in North American AMI Adoption
Badger Meter Enjoys a Strong Market Position in North American AMI Adoption; Customer Diversity with Tailorable and Differentiated Offerings >50K Water Utilities AMI “Choice Matters” Differentiation in US Utility Size and their Share of Broadest Range of Offerings – • Brass and polymer Meter connect
Slide 19: Badger Meter Is the Undisputed Leader in Cellular Communication
Badger Meter Is the Undisputed Leader in Cellular Communication with Millions of Endpoints Deployed; Provides Myriad of Benefits to Utilities Cellular Network as a Service (NaaS) • Easy • Flexible • Resilient • Secure • Sustainable 19
Slide 20: Key Growth Strategies for Utility Smart Water
Key Growth Strategies for Utility Smart Water • Maintain leading position in the North American smart water market through continued development of leading- edge offerings • AMI adoption rate only at one third of connections • Leverage natural meter replacement cycle to upgrade customers (no radio o
Slide 21: Key Growth Strategies for Flow Instrumentation
Key Growth Strategies for Flow Instrumentation • Expand niche share by targeting water-related applications, predominately • Building Automation/HVAC/Sustainability • Wastewater treatment and distribution • Leverage addition of real-time water quality monitoring for industrial process and discharge
Slide 22: Strategic M&A is an Enabler to Expand Offerings and Accelerate Growth
Strategic M&A is an Enabler to Expand Offerings and Accelerate Growth Year Company Type Location Price Utility Water Instrumentation and Connectivity: • Technology solutions that can be 2024 Telog / Unity RTUs and software US $3M leveraged across both utility and flow 2023 Syrinix, Ltd. Pressure mon
Slide 23: Attractive Five Year Financial Trends Showcase Execution of Strategy
Attractive Five Year Financial Trends Showcase Execution of Strategy (US$ in millions, except per share data) • Sales growth driven primarily by smart water 2019 2020 2021 2022 2023 solution adoption Sales $424.6 $425.5 $505.2 $565.6 $703.6 • Communications and SaaS Adj Oper Earnings 62.2 65.2 78.7
Slide 24: GAAP To Non-GAAP Reconciliations
GAAP To Non-GAAP Reconciliations EBITDA Free Cash Flow (US$ in millions) (US$ in millions) Q3 2024 Q3 2023 YTD 2024 YTD 2023 Q3 2024 Q3 2023 Net Earnings (GAAP) $32.0 $26.0 $94.2 $67.9 Cash from Ops (GAAP) $45.1 $31.4 Interest income (2.3) (1.2) (5.7) (2.6) Capital Expenditures (3.1) (3.0) Income ta