Itron : August Investor Presentation

Investor Update

August 2020

©2020 ITRON PROPRIETARY

FORWARD LOOKING STATEMENTS

This presentation contains, and our officers and representatives may from time to time make, "forward-looking statements" within the meaning of the safe harbor provisions of the U.S. Private Securities Litigation Reform Act of 1995. Forward-looking statements are neither historical factors nor assurances of future performance. These statements are based on our expectations about, among others, revenues, operations, financial performance, earnings, liquidity, earnings per share, cash flows and restructuring activities including headcount reductions and other cost savings initiatives.

This document reflects Itron's/our current strategy, plans and expectations and is based on information currently available as of the date of our latest Form 10-K or Form 10-Q filed with the SEC. When we use words such as "expect," "intend," "anticipate," "believe," "plan," "goal," "seek," "project," "estimate," "future," "strategy," "objective," "may," "likely," "should," "will," "will continue," and similar expressions, including related to future periods, they are intended to identify forward-looking statements. Forward-looking statements rely on a number of assumptions and estimates. Although we believe the estimates and assumptions upon which these forward-looking statements are based are reasonable, any of these estimates or assumptions could prove to be inaccurate and the forward-looking statements based on these estimates and assumptions could be incorrect. Our operations involve risks and uncertainties, many of which are outside our control, and any one of which, or a combination of which, could materially affect our results of operations and whether the forward-looking statements ultimately prove to be correct. Actual results and trends in the future may differ materially from those suggested or implied by the forward-looking statements depending on a variety of factors.

Therefore, you should not rely on any of these forward-looking statements. Some of the factors that we believe could affect our results include our ability to execute on our restructuring plan, our ability to achieve estimated cost savings, the rate and timing of customer demand for our products, rescheduling of current customer orders, changes in estimated liabilities for product warranties, adverse impacts of litigation, changes in laws and regulations, our dependence on new product development and intellectual property, future acquisitions, changes in estimates for stock-based and bonus compensation, increasing volatility in foreign exchange rates, international business risks, uncertainties caused by adverse economic conditions, including, without limitation those resulting from extraordinary events or circumstances such as the COVID-19 pandemic and other factors that are more fully described in Item 1A: "Risk Factors" included in our Annual Report on Form 10-K for the year ended Dec. 31, 2019 and other reports on file with the Securities and Exchange Commission. We do not undertake any obligation to publicly update or revise any forward-looking statement, whether written or oral. These risks and uncertainties are detailed in the Company's filings with the Securities and Exchange Commission, including its most recently filed 10-K, copies of which may be accessed through the SEC's website at http://www.sec.gov.

The impact caused by the ongoing COVID-19 pandemic includes uncertainty as to the duration, spread, severity, and any recurrence of the COVID-19 pandemic, the duration and scope of related government orders and restrictions, impact on overall demand, impact on our customers' businesses and workforce levels, disruptions of our business and operations, including the impact on our employees, limitations on, or closures of, our facilities, or the business and operations of our customers or suppliers. Our estimates and statements regarding the impact of COVID-19 are made in good faith to provide insight to our current and future operating and financial environment and any of these may materially change due to factors outside our control. For more information on risks associated with the COVID-19 pandemic, please see Itron's updated risk in Part II, Item 1A, "Risk Factors" of our latest 10-Q filing with the SEC.

©2020 ITRON PROPRIETARY

Itron Investor Presentation August 2020 | 2

ITRON AT-A-GLANCE

Itron enables utilities and cities to safely, securely and reliably deliver critical infrastructure services that measure, manage, and provide data analytics that enable them to responsibly and efficiently manage resources in the communities they serve. With over 40 years of experience and over…

8,000	>200M	>60M
CUSTOMERS IN	COMMUNICATING	ENDPOINTS UNDER
100 COUNTRIES	ENDPOINTS	MANAGEMENT

~3M	~7,300	+250
STREETLIGHTS UNDER	PEOPLE	PARTNERS IN A BROAD
MANAGEMENT	ACROSS THE GLOBE	ECOSYSTEM OF SOLUTIONS

$2.5B 2019 REVENUE & REVENUE MIX OF:

Outcomes		APAC
9%		5%
	Device	EMEA
	Solutions
Networked	34%	27%
	AMERICAS
Solutions
	68%
57%

With a Q2'2020:

>$2.9B	>$1.3B
BACKLOG	12-MONTH BACKLOG

Note: Revenue reported year ending December 31, 2019 and Backlog and People as of June 30, 2020, all other data points rounded or estimated based on internal Itron source material at the time of publication

©2020 ITRON PROPRIETARY

Itron Investor Presentation August 2020 | 3

OUR VISION AND PURPOSE

ITRON IS DEDICATED TO CREATING A MORE RESOURCEFUL WORLD

• We believe that the way we manage energy and water will define this century.
• Our long-termview is that by delivering products and services that support sustainability, diversity and accountability of our key stakeholders we can create a more resourceful world.
• To achieve this, Itron leverages a holistic approach that integrates our strategic, operational and risk management efforts with our ESG initiatives.

©2020 ITRON PROPRIETARY

Itron Investor Presentation August 2020 | 4

ITRON'S FOUR ESG PILLARS

Our approach to a more resourceful world

ENVIRONMENTAL AND OPERATIONAL STEWARDSHIP

Energy Mix - Manufacturing Sites

Nuclear	Renewable	Non-Renewable
49.7%	31.7%	18.6%

Certified Locations:

ISO 9001 (20); IS0 14001 (15); ISO 27001 (13); OHSAS 18001 (6)

Full Time Employee Demographics - By Region

DIVERSITY AND

OUR HUMAN CAPITAL

PLEDGE

EFFECTIVE

SHAREHOLDER

ADVOCACY

Itron Board of Directors Key Statistics

SOLUTION IMPACT AND COMMUNITY ENGAGEMENT

Transforming Our Industry: Integrating Renewables

• One customer found it 87% less expensive and 29 weeks faster to connect distributed generation to the grid with Itron solutions.

Investing in our Communities & Education

• Itron-sponsoredprograms reached over 1.5 million students and 27.3 million consumers in 2019.

For more please visit: www.itron.com/ESG

©2020 ITRON PROPRIETARY

Itron Investor Presentation August 2020 | 5

STATE OF THE BUSINESS

Q2'20 and FY'2020 performance impacted by COVID-19

• Revenue and Gross Margin impacted by COVID-19 with reduced demand and factory under utilization
• Sufficient liquidity to fund operations with Cash and Equivalents of $545 million
• Total backlog of $2.9B and 12-month backlog of $1.3B as of June 30th

Outlook improving with the speed of recovery mixed by geography

• Our focus is the health and safety of our employees while supporting our customers recovery
• Our factories are operational; Supply Chain has stabilized; Teams beginning to return to customer sites
• Customers working toward recovery is mixed by region; Slowly improving toward future growth

Delivering on our long-term strategy

• Executed Latin America deal as part of our move to an "asset-light" strategy
• Extending our leadership in smart energy and smart city solutions with Distributed Intelligence platform
• Continued investment in technology for automation; resilience & reliability; data analytics and outcomes

©2020 ITRON PROPRIETARY

Itron Investor Presentation August 2020 | 6

COVID-19 OPERATIONAL UPDATE

Leading indicators to signal that Itron's operating environment is improving

Progress

• Itron global factories fully operational
• Global supply chain and logistics network stabilized

Early Stage Complete

• Ongoing customer projects and deployments
• Local "shelter-in-place" restrictions / business reopening

Early Stage Complete

• Customer capital is prioritized to new projects
• Regulatory cycle in current environment

Early Stage Complete

©2020 ITRON PROPRIETARY

Itron Investor Presentation August 2020 | 7

INDUSTRY AND ITRON OVERVIEW

©2020 ITRON PROPRIETARY

Itron Investor Presentation August 2020 | 8

DYNAMIC FORCES IMPACTING OUR INDUSTRY

Mega-trends highlight the critical role Itron technology plays in utility eco-system

INFRASTRUCTUREENVIRONMENTAL

• Managing Demand Needs » Remote Pandemic Management

» Aging Infrastructure	» Extreme Weather
» Grid Security	» Resource Sustainability
» Clean Energy & Storage	» Safety and Prevention
» Electric Vehicles	» Monitoring and Management

SOCIAL

• Supporting Critical Need Customers
• Enhanced Customer Experience
• Global Urbanization
• Internet of Things
• Generating "Big Data"

Itron enables customers to leverage the power of a smart platform

©2020 ITRON PROPRIETARY

Itron Investor Presentation August 2020 | 9

OUR MODEL SUPPORTS CRITICAL INFRASTRUCTURE

Solutions via open standards-based technology that transcend multiple verticals

Rapid/profitable growth… Value & reach expansion

Network coverage … Footprint expansion

High quality…

Margin expansion

TARGET

DEVICES

	BILLIONS	BROADER
	INDUSTRIAL INTERNET OF THINGS
HIGHER
GROWTH	100s OF	SMART CITY INFRASTRUCTURE
	MILLIONS

INCREASING

MARGINS10s OFSMART UTILITY NETWORKS

MILLIONS

OPEN, SECURE, STANDARDS BASED,

PLATFORM

Unified go-to-market organization, focused on accelerating growth and delivering customer success

©2020 ITRON PROPRIETARY

Itron Investor Presentation August 2020 | 10

OUR STRATEGIC PRIORITIES

1 EXPANDING OUR FOOTPRINT

Increasing coverage

2 EXPANDING OUR VALUE

Empowering our customers

3 EXPANDING OUR REACH

Enabling as many sensors & devices on our platform as possible

CREATING THE OPPORTUNITY TO ENHANCE VALUE WITH…..

OPERATIONAL LEVERAGE	IMPROVING
FREE CASH FLOW	INCREASING
TECHNOLOGY	LEADERSHIP
©2020 ITRON PROPRIETARY	Itron Investor Presentation August 2020 | 11

OUR TECHNOLOGY IS INDUSTRY LEADING

PROVEN	Proven solutions drive shorter development, integration
SOLUTIONS	and deployment times

CUSTOMER	Technology is not enough-deep engagement with
ENGAGEMENT	customers is critical to ensure benefits are realized

MULTI-APPLICATION	Deploying a unified platform decreases systems integration
PLATFORM	complexities and accelerates benefit capture

INTEROPERABILITY Standards based technologies decreases deployment complexity and ensures timely benefit delivery

©2020 ITRON PROPRIETARY

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OUR SMART PLATFORM PROPOSITION

An intelligent Industrial IoT platform that is solution, device and transport agnostic

ENDPOINT

TRANSPORT

SOLUTION

BEYOND SMART. ACTIVE.

• Strong foundation with backwards compatibility
• Multi-endpointnetworking + distributed intelligence
• One network with multi-solution capabilities
• Highly-integrated,transport-agnostic platform
• High-resolutiondata management; enabling near real-time decision making; integrating an ecosystem of over 250 partners

PROVEN AT	OPEN	RESILIENT AND	FUTURE PROOF	A TRUSTED
SCALE	ECOSYSTEM	SECURE	TECHNOLOGY	PARTNER

©2020 ITRON PROPRIETARY

Itron Investor Presentation August 2020 | 13

INDUSTRY IIOT PURE PLAY WITH MULTIPLE SOLUTIONS

DEVICE AGNOSTIC AUTOMATED METER READING

BILLING ACCURACY & EFFICIENCY FOR GAS, ELECTRIC, & WATER

ADVANCED METERING INFRASTRUCTURE

NETWORKING & TWO-WAY COMMUNICATIONS

MULTI-APPLICATION NETWORK

READING ELECTRIC GAS & WATER UNDER ONE NETWORK

DISTRIBUTED INTELLIGENCE

THEFT & OUTAGE DETECTION, TRANSFORMER

MANAGEMENT, DEMAND RESPONSE & MORE

DISTRIBUTION AUTOMATION

ADVANCED GRID CONTROL & MANAGEMENT

STREETLIGHT CANOPY

INTELLIGENT LIGHTING & INCREASED NETWORK

COVERAGE AND RESILIENCY

SMART CITY SOLUTIONS

CONNECTING COMMUNITIES & CITIZENS TO OUTCOMES

SERVICES & ANALYTICS

SOLVING PROBLEMS & DELIVERING VALUABLE OUTCOMES

©2020 ITRON PROPRIETARY

Itron Investor Presentation August 2020 | 14

INTANGIBLE* BENEFITS OF BEING SMART

Many operational benefits of the smart grid can be easily quantified-but some are more intangible

SOCIETALOPERATIONAL

• Improved customer satisfaction and engagement
• Reduced environmental impact
• Increased economic output
• Increased fairness and transparency
• Improved service quality

Note: Intangible benefits are typically not quantified as part of the smart grid or smart city business case.

• Increased safety for workers and customers
• Enhanced visibility into the operations
• Improved integration of new energy generation & storage sources
• More effective pricing / rate design
• Reduced time to execution with more insights to planning and management

©2020 ITRON PROPRIETARY

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ITRON EXPANDS BUSINESS CASE VALUE

Our smart grid platform enables increased benefits by adding applications

AVERAGE NORTH AMERICAN SMART GRID BUSINESS CASE*

$/customer, electric only, PV over 20 years

300	330		AMI

Cost Benefits

B/C ratio: ~1.1

Operational benefits from AMI are now nearing breakeven

		75
		60
		90		DI
		100
22			SL
30		290		EE
15			DR
100
30			DA
	300	330		AMI

Cost Benefits

B/C ratio: ~1.9

Distributed applications create additional benefits and new

business model opportunities

Note: Based on publicly available U.S. smart grid business/rate cases and includes Itron internal estimates.

AMI: Advanced Metering Infrastructure; DA: Distribution Automation; CVR: Conservation Voltage Reduction; DR: Demand Response; EE: Energy Efficiency (Portal); SL: Streetlights; DI: Distributed Intelligence Apps

©2020 ITRON PROPRIETARY

Itron Investor Presentation August 2020 | 16

OVER +250 PARTNERS AND COUNTING

A key differentiator for Itron solutions

DISTRIBUTED ENERGY	GRID	METERING
MANAGEMENT	MANAGEMENT	SOLUTIONS

SMART	UTILITY IOT	NETWORKING &	DISTRIBUTED INTELLIGENCE
CITIES	SOLUTIONS	COMMUNICATIONS	APPLICATIONS

©2020 ITRON PROPRIETARY

Itron Investor Presentation August 2020 | 17

FINANCIAL PERSPECTIVES

©2020 ITRON PROPRIETARY

Itron Investor Presentation August 2020 | 18

ITRON INVESTMENT THESIS

POSITIONED TO NAVIGATE NEAR-TERM

Support a Resilient Industry

with Critical Utility and

Smart City Infrastructure

Only U.S.-based	Sufficient Liquidity and
Industrial IoT "pureplay"	no Debt payments due
in our industry	in 2020

BUILT FOR THE LONG-TERM

Improving Operating

Leverage and Earnings Power

Positioned for	ESG Principles
Free Cash Flow	Embedded in DNA
Growth

©2020 ITRON PROPRIETARY

Itron Investor Presentation August 2020 | 19

FOCUSED ON GROWTH AND MARGIN EXPANSION

GROWTH IN OUR		OPERATIONAL LEVERAGE	CASH FLOW
HIGHER MARGIN		WITH MOVE TO AN	OPTIMIZATION
SOLUTIONS		ASSET LIGHT MODEL

©2020 ITRON PROPRIETARY

Itron Investor Presentation August 2020 | 20

FINANCIAL OPERATING PERSPECTIVE

Multiple levers driving long-term financial benefits and increased earnings power

REVENUE

SUPPLY

CHAIN

OPERATIONAL

LEVERAGE

OPEX

EFFICIENCIES

OPERATING MARGIN

		Opportunity
• Higher value solutions driving growth
• Continue rotation to higher margin segments
• New product introductions in SaaS solutions	More	Less
• Product rationalization and value engineering
• Manage component & commodity cycles
• Continue shifting towards more strategic outsourcing	More	Less
• Rationalization of manufacturing and service delivery
• Optimizing our product portfolio
• Growth of recurring revenue in the Outcomes business	More	Less
• Unified global sales organization
• Disciplined discretionary spending
• Restructuring benefits & integration synergies	More	Less

Initiatives will continue to drive significant margin improvement

©2020 ITRON PROPRIETARY

Itron Investor Presentation August 2020 | 21

CAPITAL ALLOCATION STRATEGY

Current Focus is Cash Preservation

NEAR-TERM

CAPITAL

DEPLOYMENT

FRAMEWORK

DE-LEVER

• Anticipate sufficient cash flow for de-levering
• Path to achieve net leverage of <2.0x

ORGANIC

INVESTMENT

• Continuing shift to asset- lite business model
• R&D fully expensed and reflected in existing margin profile

CAPITAL

ALLOCATION

• No change in our capital allocation strategy anticipated in current estimates
• Potential small, opportunistic bolt-on M&A possible though nothing currently planned

©2020 ITRON PROPRIETARY

Itron Investor Presentation August 2020 | 22

ITRON OPERATING MODEL

Rotation to higher margin contribution and increased free cash flow

		Target Operating
		Model
	Revenue	3 to 5% CAGR
	Gross Margin	33 to	35%
	OPEX	22 to	23%
	of Revenue
	Adjusted EBITDA	13 to	15%
	of Revenue
	Free Cash Flow	6 to	8%
	of Revenue
	Net Debt to Adj. EBITDA Ratio	< 2.0x
©2020 ITRON PROPRIETARY			Itron Investor Presentation August 2020 | 23

Q2'2020 ITRON SUMMARY OF RESULTS

©2020 ITRON PROPRIETARY

Itron Investor Presentation August 2020 | 24

CONSOLIDATED GAAP RESULTS - Q2'20

$ in Millions (except per share amounts)	Q2 2020	Q2 2019	Change
Revenue	$509.6	$635.0	-20%
Change in constant currency			-18%
Gross margin	27.2%	30.1%	-290 bps
Operating income (loss)	($45.4)	$43.6	-204%
Net income (loss) attributable to Itron, Inc.	($62.8)	$19.4	-423%
Earnings (loss) per share - diluted	($1.56)	$0.49	-418%

• Revenue down primarily due to COVID-19 related delays
• Gross margin of 27.2% decreased 290 bps primarily due to COVID-19 induced operating inefficiencies
• GAAP operating income and net income decreased due to lower gross profit and a $57M loss on sale of business related to the divestiture of Itron's manufacturing and sales operations in Latin America

Reconciliation of GAAP to Non-GAAP results in Appendix and also available on our website.

©2020 ITRON PROPRIETARY

Itron Investor Presentation August 2020 | 25

CONSOLIDATED NON-GAAP & CASH RESULTS - Q2'20

$ in Millions (except per share amounts)	Q2 2020	Q2 2019	Change
Non-GAAP operating income	$20.3	$63.2	-68%
Non-GAAP operating margin	4.0%	9.9%	-590 bps
Non-GAAP net income attributable to Itron, Inc.	$1.3	$34.6	-96%
Adjusted EBITDA	$31.2	$73.0	-57%
Adjusted EBITDA margin	6.1%	11.5%	-540 bps
Non-GAAP earnings per share - diluted	$0.03	$0.87	-97%
Net cash provided by operating activities	$6.9	$53.1	-87%
Free cash flow	($9.6)	$38.0	-125%

• Non-GAAPop inc and adj EBITDA decreased due to lower gross profit
• Non-GAAPnet income decreased primarily due to lower non-GAAP operating income and a higher non-GAAP tax rate
• Free cash flow decreased to ($10M) from $38M in the prior year due to lower profitability and increase in working capital

Reconciliation of GAAP to Non-GAAP results in Appendix and also available on our website.

©2020 ITRON PROPRIETARY

Itron Investor Presentation August 2020 | 26

DEVICE SOLUTIONS SEGMENT - Q2'20

REVENUE, GROSS MARGIN AND OPERATING MARGIN

$ in Millions, actual currency

$218

				$129
19.1%
				9.3%
13.0%			-0.9%
Q2'19			Q2'20
Revenue		Gross Margin		Operating Margin

• Revenue down 41% and 37% in constant currency
• • Decrease primarily due to COVID-19
• Gross margin down 980 bps
• • Due to COVID-19 induced operational inefficiencies and product mix
• Operating margin down
• • Fall through of lower gross profit

©2020 ITRON PROPRIETARY

Itron Investor Presentation August 2020 | 27

NETWORKED SOLUTIONS SEGMENT - Q2'20

REVENUE, GROSS MARGIN AND OPERATING MARGIN

$ in Millions, actual currency

$356

$324

35.5%				33.4%
27.5%
						23.8%
	Q2'19				Q2'20
	Revenue		Gross Margin		Operating Margin

• Revenue down 9% as reported and in constant currency
• • Decrease primarily due to COVID-19
• Gross margin down 210 bps
• • Primarily due to COVID-19 induced operational inefficiencies
• Operating margin down 370 bps
• • Fall through of lower gross profit
  • Increased investment in product development

©2020 ITRON PROPRIETARY

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OUTCOMES SEGMENT - Q2'20

REVENUE, GROSS MARGIN AND OPERATING MARGIN

$ in Millions, actual currency

$61

$56

38.1%

32.6%

23.4%

16.5%

Q2'19Q2'20

• Revenue down 9% and 8% in constant currency
• • Decrease in software license revenue
  • Partially offset by higher SaaS revenue
• Gross margin down 550 bps
• • Tough YoY compare with strong mix of higher-margin software in Q2'19
• Operating margin down 690 bps
• • Fall through of lower gross profit

Revenue		Gross Margin		Operating Margin

©2020 ITRON PROPRIETARY

Itron Investor Presentation August 2020 | 29

DEBT AND LIQUIDITY OVERVIEW

US$M

$805

1. Total debt includes unamortized prepaid debt fees.

Debt

• Net leverage 3.8x at end of Q2'20
• No debt payments due in 2020
• Term Loan due 2024 and Senior Note 2026
• Blended interest rate of 3.0%

Free Cash Flow and Liquidity

• Free cash flow of ($10M); low point of 2020
• $400M draw on revolving credit facility to ensure sufficient liquidity in an uncertain environment
• Cash and equivalents was $545M
• Capital priority is cash conservation

©2020 ITRON PROPRIETARY

Itron Investor Presentation August 2020 | 30

CONSOLIDATED GAAP RESULTS - YTD'20

$ in Millions (except per share amounts)	YTD 2020	YTD 2019	Change
Revenue	$1,108.0	$1,249.6	-11%
Growth in constant currency			-10%
Gross margin	28.0%	30.3%	-230 bps
Operating income (loss)	($19.0)	$64.4	-130%
Net income (loss) attributable to Itron, Inc.	($54.1)	$17.5	-409%
Earnings (loss) per share - diluted	($1.35)	$0.44	-407%

• Revenue down due to COVID-19 related delays
• Gross margin of 28.0% decreased 230 bps primarily due to COVID-19 induced operating inefficiencies
• GAAP net income decreased due to lower gross profit and $57M loss on sale of business related to the divestiture of Itron's manufacturing and sales operations in Latin America

Reconciliation of GAAP to Non-GAAP results in Appendix and also available on our website.

©2020 ITRON PROPRIETARY

Itron Investor Presentation August 2020 | 31

CONSOLIDATED NON-GAAP & CASH RESULTS - YTD'20

$ in Millions (except per share amounts)	YTD 2020	YTD 2019	Change
Non-GAAP operating income	$58.8	$119.9	-51%
Non-GAAP operating margin	5.3%	9.6%	-430 bps
Adjusted EBITDA	$83.2	$138.7	-40%
Adjusted EBITDA margin	7.5%	11.1%	-360 bps
Non-GAAP net income attributable to Itron, Inc.	$24.3	$62.5	-61%
Non-GAAP earnings per share - diluted	$0.60	$1.57	-62%
Net cash provided by operating activities	$25.8	$78.1	-67%
Free cash flow	($3.3)	$51.6	-106%

• Non-GAAPoperating income and adj EBITDA decreased due to lower gross profit
• Non-GAAPnet income decreased primarily due to lower non-GAAP operating income and higher effective tax rate
• Free cash flow decreased to negative ($3.3M) from $51.6M in the prior year due to lower profitability

Reconciliation of GAAP to Non-GAAP results in Appendix and also available on our website.

©2020 ITRON PROPRIETARY

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DEVICE SOLUTIONS SEGMENT - YTD'20

REVENUE, GROSS MARGIN AND OPERATING MARGIN

$ in Millions, actual currency

$439

$331

18.5%

13.4%

12.2%

5.2%

YTD'19YTD'20

Revenue		Gross Margin		Operating Margin

• Revenue down 25% and 21% in constant currency
• • Decrease primarily due to COVID-19
• Gross margin down 510 bps
• • Due to COVID-19 induced operating inefficiencies and product mix
• Operating margin down 700 bps
• • Fall through of lower gross profit

©2020 ITRON PROPRIETARY

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NETWORKED SOLUTIONS SEGMENT - YTD'20

REVENUE, GROSS MARGIN AND OPERATING MARGIN

$ in Millions, actual currency

$692	$665	» Revenue down 4% as reported and in constant currency

• Decrease primarily due to COVID-19

36.6%	34.6%	» Gross margin down 200 bps
		• Primarily due to COVID-19 induced operational inefficiencies
27.9%	25.0%	» Operating margin down 290 bps

• Fall through of lower gross profit
• Increased investment in product development

YTD'19YTD'20

Revenue		Gross Margin		Operating Margin

©2020 ITRON PROPRIETARY

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OUTCOMES SEGMENT - YTD'20

REVENUE, GROSS MARGIN AND OPERATING MARGIN

$ in Millions, actual currency

$118	$111		» Revenue down 6% and 5% in constant currency
37.1%				• Decrease due to timing of customer projects
32.1%		» Gross margin down 500 bps
					• Tough YoY compare with strong mix of higher-margin software in H1'19
21.0%				» Operating margin down 530 bps
		15.7%		• Fall through of lower gross profit
	YTD'19		YTD'20

Revenue		Gross Margin		Operating Margin

©2020 ITRON PROPRIETARY

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REVENUE - FX IMPACT SUMMARY

$ in Millions

Average USD/Euro:					Average USD/Euro:
$1.10 Q2'20 vs $1.12 Q2'19					$1.10 YTD'20 vs $1.12 YTD'19
Revenue	Q2'20	YoY Change YoY Change			Revenue	YTD'20	YoY Change YoY Change
			Excluding FX						Excluding FX
Device Solutions	$129.2	-40.7%	-36.5%		Device Solutions	$331.4	-24.6%	-20.8%
Networked Solutions	$324.5	-8.8%	-8.5%			Networked Solutions	$665.3	-3.9%	-3.7%
Outcomes	$55.9	-8.9%	-7.9%		Outcomes	$111.2	-5.6%	-4.7%
Total	$509.6	-19.8%	-18.1%		Total	$1,108.0	-11.3%	-9.8%

©2020 ITRON PROPRIETARY

Itron Investor Presentation August 2020 | 36

NON-GAAP FINANCIAL MEASURES

To supplement our consolidated financial statements presented in accordance with GAAP, we use certain non-GAAP financial measures, including non-GAAP operating expense, non-GAAP operating income, non-GAAP net income, non-GAAP diluted EPS, adjusted EBITDA, adjusted EBITDA margin, constant currency and free cash flow. We provide these non-GAAP financial measures because we believe they provide greater transparency and represent supplemental information used by management in its financial and operational decision making. We exclude certain costs in our non- GAAP financial measures as we believe the net result is a measure of our core business. The company believes these measures facilitate operating performance comparisons from period to period by eliminating potential differences caused by the existence and timing of certain expense items that would not otherwise be apparent on a GAAP basis. Non-GAAP performance measures should be considered in addition to, and not as a substitute for, results prepared in accordance with GAAP. Our non-GAAP financial measures may be different from those reported by other companies. We strongly encourage investors and shareholders to review our financial statements and publicly-filed reports in their entirety and not to rely on any single financial measure. A more detailed discussion of why we use non-GAAP financial measures, the limitations of using such measures, and reconciliations between non-GAAP and the nearest GAAP financial measures are included in the quarterly earnings press release.

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GAAP TO NON-GAAP RECONCILIATIONS

©2020 ITRON PROPRIETARY

Itron Investor Presentation August 2020 | 38

GAAP TO NON-GAAP RECONCILIATIONS

©2020 ITRON PROPRIETARY

Itron Investor Presentation August 2020 | 39

APPENDIX

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ITRON ACRONYM GLOSSARY

AMI = Advanced Metering Infrastructure

AMM = Advanced Metering Manager, SSNI Product Name AMR = Automated Meter Reading

ASP = Average Selling Price AP = Access Point

BOM = Bill of Material(s)

BYOD = Bring Your Own Device BYOT = Bring Your Own Thermostat C & I = Commercial and Industrial

CAGR = Compounded Annual Growth Rate CCE = Commercial and Customer Enablement CDMA = Code Division Multiple Access CGR = Connected Grid Router

CM = Contract Manufacturer / Manufacturing DA = Distribution Automation

DEM = Distributed Energy Management

DER = Distributed Energy Resources

DERMs = Distributed Energy Resource Management DI = Distributed Intelligence

DNO = Device Solutions, Networked Solutions, Outcomes EDI = Electronic Data Interchange

ERP = Enterprise Resource Planning

ERT = Encoder Receiver Transmitter FAN = Field Area Network

GENX = Generation 2, 3, 4, and 5 of the Silver Spring Networks platform

GDPR = General Data Protection Regulation IaaS = Infrastructure as a Service

IEC = International Electrotechnical Commission IMP = Itron Mobile Platform

INS = Itron Networks Segment

IOU = Investor Owned Utility IoT = Internet of Things

LoRa = "LOng RAnge" (Marketing Alliance)

LPWAN = Low Power Wide Area Network LTE = Long Term Evolution

M2C = Meter to Cash

M2M = Machine to Machine MDM = Meter Data Management MV = Multi Vender

NaaS = Network as a Service

NB-IoT = Narrow Band Internet of Things

NEMA = National Electrical Manufacturers Association NIC = Network Interface Card

NMS = Network Management System OaaS = Outcome as a Service OCOGS = Operating Cost of Goods Sold

OFDM = Orthogonal Frequency Division Multiplexing

O&M = Operation and Maintenance OWR = OpenWay Riva

PaaS = Platform as a Service

PBU = Product Business Unit

PCBA = Printed Circuit Board Assembly PLC = Power Line Carrier

RF = Radio Frequency

RPMA = Random Phase Multiple Access S & OP = Sales and Operations Planning S & OE = Sales and Operations Execution SaaS = Software as a Service

SLV = Streetlight Vision

SS = Spread Spectrum

TAM = Total Available Market

TDMA = Time Division Multiple Access TCO = Total Cost of Ownership

TMC = Total Manufacturing Cost

UIQ = Utility IQ, Product Name Wi-Fi = Wireless Fidelity WW = World Wide

VAVE = Value Analysis and Value Engineering VVO = Voltage Var Optimization

©2020 ITRON PROPRIETARY

Itron Investor Presentation August 2020 | 41

THANK YOU

INVESTOR RELATIONS CONTACTS

Kenneth P. Gianella

Vice President, Investor Relations 669-770-4643 [e-mail]

©2020 ITRON PROPRIETARY

Rebecca Hussey

Manager, Investor Relations 509-891-3574 [e-mail]

Itron Investor Presentation August 2020 | 42