Slide 1: First Quarter 2022 Earnings Conference Call
Tom Deitrich – President and Chief Executive Officer Joan Hooper – Senior Vice President and Chief Financial Officer Kenneth Gianella – Vice President, Investor Relations First Quarter 2022 Earnings Conference Call May 2, 2022 ©2022 ITRON PROPRIETARY ©2022 ITRON PROPRIETARY Q1 2022 Earnings Conferen
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 forwar d-looking statements relating to current or future financial performance, management's plans and objectives for future operations, product plans an
Slide 3: Conference Call Agenda
CONFERENCE CALL AGENDA » CEO – Business and Operations Update » CFO – Financial Results » Q&A
Slide 4: Q1'22 Performance Summary
Q1’22 PERFORMANCE SUMMARY » Revenue of $475 million » Adjusted EBITDA of $19 million » Non-GAAP diluted EPS of $0.11 » Free cash flow of $2 million ©2022 ITRON PROPRIETARY Q1 2022 Earnings Conference Call | 4
Slide 5: Bookings and Backlog
BOOKINGS AND BACKLOG » Q1’22 bookings of $417M $4.0 $3.9 * $3.4 $3.5 $3.4 » Book to bill of ~0.9 » Ending backlog of $3.9B * $1.6 $1.5 $1.3 $1.4 $1.4 » Record 12-month backlog of $1.6B Q1'21 Q2'21 Q3'21 Q4'21 Q1'22 12-Month Backlog Total Backlog Chart in Billions, actual currency rates. * Ending bac
Slide 6: Operational Insights
OPERATIONAL INSIGHTS » Completed divestiture of non-communicating mechanical C+I gas business » Continued focus on moving to an asset light model and data driven outcomes » Strong market demand continues for our solutions » Distributed intelligence enabled endpoints growing to over 4.2 million units
Slide 7: Consolidated GAAP Results: Q1'22
CONSOLIDATED GAAP RESULTS: Q1’22 $ in millions (except per share amounts) Q1 2022 Q1 2021 Change Revenue $475.3 $519.6 -9% Change in constant currency -6% Gross margin 28.4% 32.2% -380 bps Operating income $6.8 $30.9 -78% Net income attributable to Itron, Inc. $0.9 $12.6 -93% Earnings per share - di
Slide 8: Consolidated Non-GAAP & Cash Results: Q1'22
CONSOLIDATED NON-GAAP & CASH RESULTS: Q1’22 $ in millions (except per share amounts) Q1 2022 Q1 2021 Change Non-GAAP operating income $9.3 $38.9 -76% Non-GAAP operating margin 2.0% 7.5% -550 bps Non-GAAP net income attributable to Itron, Inc. $5.2 $21.9 -76% Adjusted EBITDA $18.9 $49.7 -62% Adjusted
Slide 9: Revenue Year-over-Year Bridge: Q1'22
REVENUE YEAR-OVER-YEAR BRIDGE: Q1’22 -14% -3% -1% -6% Chart in Millions, Quarterly totals reflect actual currencies; all variances other than FX exclude currency impact. Chart includes rounding. ©2022 ITRON PROPRIETARY Q1 2022 Earnings Conference Call | 9
Slide 10: Non-GAAP EPS Year-over-Year Bridge: Q1'22
NON-GAAP EPS YEAR-OVER-YEAR BRIDGE: Q1’22 US$ per share Quarterly totals reflect actual currencies; all variances other than FX exclude currency impact. Chart includes rounding. ©2022 ITRON PROPRIETARY Q1 2022 Earnings Conference Call | 10
Slide 11: Device Solutions Segment: Q1'22
DEVICE SOLUTIONS SEGMENT: Q1’22 Revenue, gross margin and operating margin $ in Millions, actual currency Revenue down 19% and 14% in constant currency $173 » Component shortages resulted in unfulfilled customer demand $140 18.7% » Product pruning and sale of our C&I gas business 15.6% Gross margin
Slide 12: Networked Solutions Segment: Q1'22
NETWORKED SOLUTIONS SEGMENT: Q1’22 Revenue, gross margin and operating margin $ in Millions, actual currency $288 $279 Revenue down 3% as reported and in constant currency » Component shortages resulted in significant unfulfilled demand 39.1% » Partially offset by ramp of new deployments 32.8% Gross
Slide 13: Outcomes Segment: Q1'22
OUTCOMES SEGMENT: Q1’22 Revenue, gross margin and operating margin $ in Millions, actual currency $58 Revenue down 3% and 1% in constant currency $57 » Decrease in product and software license sales 37.6% 38.8% » Growth in U.S. Networks as a Service Gross margin up 120 bps » Increased operational ef
Slide 14: Debt and Liquidity Overview: March 31, 2022
DEBT AND LIQUIDITY OVERVIEW: MARCH 31, 2022 US$M Debt $460 » Net leverage 3.1x at end of Q1’22 » Zero interest convertible notes $256 Free Cash Flow and Liquidity » Q1 Free cash flow of $2M » Cash and equivalents of $204M » $500M revolver 1 Total Debt Net Debt 1. Excludes amortization of debt fees.
Slide 15: Appendix
APPENDIX
Slide 16: Revenue: FX Impact Summary
REVENUE: FX IMPACT SUMMARY $ in Millions Average USD/Euro: $1.12 Q1’22 vs $1.21 Q1’21 YoY Change Revenue Q1'22 YoY Change Excluding FX Device Solutions $139.6 -19.2% -13.7% Networked Solutions $278.8 -3.3% -2.8% Outcomes $56.9 -2.6% -1.0% Total $475.3 -8.5% -6.3% Non-GAAP EPS - Diluted $0.11 -$0.41
Slide 17: 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 18: GAAP to Non-GAAP Reconciliations
GAAP TO NON-GAAP RECONCILIATIONS ©2022 ITRON PROPRIETARY Q1 2022 Earnings Conference Call | 18
Slide 19: GAAP to Non-GAAP Reconciliations
GAAP TO NON-GAAP RECONCILIATIONS ©2022 ITRON PROPRIETARY Q1 2022 Earnings Conference Call | 19
Slide 20: Thank You
INVESTOR RELATIONS CONTACTS Kenneth P. Gianella Vice President, Investor Relations 669-770-4643 ken.gianella@itron.com David Means Director, Investor Relations 737-242-8448 david.means@itron.com Rebecca Hussey Manager, Investor Relations Thank You 509-891-3574 rebecca.hussey@itron.com www.itron.com