Slide 1: Fourth Quarter / Full Year 2022 Earnings
BADGER METER FOURTH QUARTER / FULL YEAR 2022 EARNINGS January 27, 2023 © 2023 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: Highlights
Sales HIGHLIGHTS Q4 Full Year $565.6 $147.3 $135.7 $505.2 • Strong fourth quarter results capped off outstanding year; full year sales growth of 12% to $566 million • Record utility water order pace in fourth quarter; record backlog exiting the year bodes well for 2023 2021 2022 • Disciplined operat
Slide 4: Fourth Quarter Financial Snapshot
FOURTH QUARTER FINANCIAL SNAPSHOT (US$ in millions, except per share data) • Utility water sales increased 9%, growth Q4 2022 Q4 2021 Change most notable in ultrasonic meters, cellular Sales $147.3 $135.7 8.5% endpoints and BEACON SaaS • Flow instrumentation sales up 8% despite Gross Margin 57.0 54.
Slide 5: Extending Capabilities with Addition of Syrinix Pressure Monitoring
EXTENDING CAPABILITIES WITH ADDITION OF SYRINIX PRESSURE MONITORING • Growth opportunity supported by: Syrinix Snapshot • Secular demand drivers (aging assets; climate change; • Technology start-up founded regulation) 2010, HQ in UK • Time-critical incidents (burst pipes) • Software-enabled hardware
Slide 6: Short and Longer Term Results Demonstrate Differentiated Execution of Growth Strategy
SHORT AND LONGER TERM RESULTS DEMONSTRATE DIFFERENTIATED EXECUTION OF GROWTH STRATEGY SaaS Growth Utility Water Sales Growth Full Year 2022 (linked to Cellular AMI) Y-o-Y Growth Revenue in Millions $ Revenue % of Sales 15% $40 10% 12% Sales 8% $30 Growth 10% 6% $20 4% 5% SaaS $10 2% revenue 6% $0 0%
Slide 7: Outlook / Macro-Trends
OUTLOOK / MACRO-TRENDS Well Positioned to Capitalize on Secular Tailwinds Driving Smart Water Solution Adoption; Growing Addressable Market • Innovation leader • “Choice matters” portfolio • Demonstrated benefits of efficiency, resiliency and sustainability Demonstrated Execution and Operational Rig
Slide 8: Q&A
Q&A Note: For your planning purposes, our First Quarter 2023 earnings release/call is tentatively scheduled for April 20, 2023 © 2023 Badger Meter, Inc. 8
Slide 9: GAAP to Non-GAAP Reconciliations
GAAP TO NON-GAAP RECONCILIATIONS EBITDA Free Cash Flow / Conversion (US$ in millions) (US$ in millions) Q4 2022 Q4 2021 2022 2021 Q4 2022 Q4 2021 Net Earnings (GAAP) $17.5 $17.3 $66.5 $60.9 Cash from Ops (GAAP) $29.7 $27.1 Interest (income) expense (0.5) 0.0 (0.6) 0.0 Capital Expenditures (1.2) (0.9