Tom Deitrich - President and Chief Executive Officer

Joan Hooper - Senior Vice President and Chief Financial Officer

Kenneth Gianella - Vice President, Investor Relations

Third Quarter 2021

Earnings Conference Call

November 4, 2021

©2021 ITRON PROPRIETARY

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 performance, management's assessment of market factors, expectations of market growth and statements regarding the strategy and plans of the Company. Such forward-looking statements are made pursuant to the safe harbor provisions of the Private Securities Litigation Reform Act of 1995. These statements are not guarantees of Itron's future performance. The Company undertakes no obligation to update or revise any forward-looking statements in this presentation after the date they are made. We caution that all forward-looking statements are subject to a number of risks and uncertainties that could cause the Company's actual results in the future to differ materially from these forward-looking statements. 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.

Current data and other statistical information used throughout this presentation are based on independent industry publications, government publications, and reports by market research firms or other published independent sources. Some data are also based on our good faith estimates, which are derived from our review of internal surveys as well as the independent sources listed above. We believe that these sources are reliable.

In an effort to provide additional information regarding the Company's financial results as determined by generally accepted accounting principles (GAAP), this presentation contains certain non-GAAP financial measures such as constant currency, non-GAAP operating income and margin, adjusted EBITDA and margin and free cash flow. The rationale for management's use of non-GAAP information and a reconciliation of the non-GAAP measures and the most directly comparable GAAP measures are included in the Appendix of this presentation. Non-GAAP performance measures should be considered in addition to, and not as a substitute for, results prepared in accordance with GAAP.

The impact caused by the ongoing COVID-19 pandemic includes uncertainty as to the duration, spread, severity, and any resurgence of the COVID-19 pandemic including other factors contributing to infection rates, such as reinfection or mutation of the virus, the effectiveness or widespread availability and application of any vaccine, 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 I, Item 1A: Risk Factors of our latest 10-K filing with the SEC.

©2021 ITRON PROPRIETARY

Q3 2021 Earnings Conference Call | 2

CONFERENCE CALL AGENDA

  • CEO - Business and Operations Update
  • CFO - Financial Results
  • Q&A

EXECUTING OUR STRATEGY

Updates since Investor Day on October 5th

Acquisition of SELC to grow smart city and lighting solutions

Sale of European C&I mechanical

A restructuring project to drive

gas meter business; Gas stations

reductions in certain locations and

metering and pressure regulation

support areas

business; global gas regulator

business

©2021 ITRON PROPRIETARY

Q3 2021 Earnings Conference Call | 4

CONSOLIDATED GAAP RESULTS: Q3'21

$ in millions (except per share amounts)

Q3 2021

Q3 2020

Change

Revenue

$486.9

$540.2

-10%

Change in constant currency

-11%

Gross margin

27.7%

26.5%

+120 bps

Operating income (loss)

$4.2

($24.0)

NM

Net income (loss) attributable to Itron, Inc.

($1.9)

($25.4)

+93%

Net loss per share - diluted

($0.04)

($0.63)

+94%

  • Revenue down due to 2021 component constraints, which reduced revenue by approximately $100 million
  • Gross margin of 27.7% up 120 bps due to favorable product mix
  • GAAP operating income improved vs the prior year loss primarily due to lower restructuring expenses
  • GAAP net loss improved vs the prior year due to operating income in 2021 and lower interest expense, partially offset by a higher tax rate

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

©2021 ITRON PROPRIETARY

Q3 2021 Earnings Conference Call | 5

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Itron Inc. published this content on 04 November 2021 and is solely responsible for the information contained therein. Distributed by Public, unedited and unaltered, on 04 November 2021 13:54:02 UTC.