© 2019 Badger Meter, Inc. 1

BADGER METERSECOND QUARTER 2019 EARNINGS

July 18, 2019

FORWARD LOOKING STATEMENTS

Certain statements contained in this presentation as well as other information provided from time to time by the Company or its employees, may contain forward looking statements that involve risks and uncertainties that could cause actual results to differ materially from those in the forward looking statements. Please refer to our Form 10-K and other SEC filings for a list of words or expressions that identify such statements.

In this presentation certain non-GAAP financial measures may be used. Please see the supplemental financial schedules at the end of this presentation for a reconciliation to the appropriate GAAP measure.

© 2019 Badger Meter, Inc. 2

SECOND QUARTER HIGHLIGHTS

• Gross profit and EBITDA margin improvement year-over-year with favorable product and SaaS mix, as well as positive price/cost

• Strong cash flow and working capital management

• Lower year-over-year sales with innovation pause - continued customer pilots and testing resulting in deferred orders for newer technology solutions

© 2019 Badger Meter, Inc. 3

$0.42 $0.39

$0.68$0.76

Adj. EPS

2018 2019

19.5%20.4%

17.8%

20.0%

Adj. EBITDA Margin %

*Adjusted figures exclude $8.2M pre-tax ($6.1M or $0.21 per share after-tax) of pension settlement charges in 2018. See appendix for reconciliation of GAAP to Non-GAAP measures

Q2 YTD

Q2 YTD

SECOND QUARTER FINANCIAL SNAPSHOT

• Municipal water sales down 9.6% year-over-year – new product order deferrals due to innovation pause more than offset favorable mix to higher technology products and services

• Flow instrumentation sales down 6.6% with lower volumes across various industrial end markets

• Strong margins on positive product and regional sales mix, as well as favorable price/cost

• Free cash flow increase of 28%

© 2019 Badger Meter, Inc. 4

Q2 2019 Q2 2018* Change

Sales $103.5 $113.6 -8.9%

Gross Margin 40.3 41.5 -3.0%38.9% 36.5% 240 bps

SEA 25.2 25.2 0.3%24.4% 22.1% 230 bps

Adj. Op Income 15.0 16.3 -8.1%14.5% 14.4% 10 bps

Adj. Income Tax Rate 23.8% 23.6%

Adj. EBITDA 21.1 22.2 -5.0%20.4% 19.5% 90 bps

Adj. EPS 0.39 0.42 -7.1%

Free Cash Flow $20.8 $16.2

(US$ in millions, except per share data)

*Figures exclude $8.2M pre-tax ($6.1M or $0.21 per share after-tax) of pension settlement charges. See appendix for reconciliation of GAAP to Non-GAAP measures

CUSTOMER CENTRIC - INNOVATION AND QUALITY

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Customers Selecting Next Generation Advanced Solutions for Significantly Enhanced Features and Benefits

• Technology innovations with significant feature and benefit enhancements can result in deferred order patterns

o LTE-M radio endpoints; path to 5G

• Infrastructure free, multiple daily read intervals, two way communication

• Coverage analysis and pilots continuing

o Extended launch of 3 and 4 inch E-Series Ultrasonic Meters with D-Flow technology

• Low flow detection, temperature & pressure sensing

• Final phase gate testing

• Shift out in timing – Aurora and Columbia

E-Series Commercial Ultrasonic Meters

ORION Cellular End Points

PROGRESS ON STRATEGIC INITIATIVES

© 2019 Badger Meter, Inc. 6

• Quote activity, opportunity funnel and backlog to support our growth plans

• Positive backdrop with municipal spending trends and our competitive share and positioning

• Organization structure changes to better leverage global functional expertise

• New product development – metric driven phase gate processes

• E.g. - increasing interest in E-Series with integrated remote flow limiting capability – development in process

• Continuous improvement in global operations and supply chain, working capital, etc

Prototype: E-Series with Integrated Flow Limiting Valve

© 2019 Badger Meter, Inc. 7

Q & A

Note: For your planning purposes, our Q3 2019 earnings release/call is tentatively scheduled for October 17, 2019

GAAP TO NON-GAAP RECONCILIATIONS

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Q2 2019 Q2 2018 YTD 2019 YTD 2018

Net Earnings (GAAP) $11.4 $6.2 $22.2 $13.7Pension settlement charge, net 0.0 6.1 0.0 6.1Interest expense 0.1 0.4 0.2 0.7Income tax provision 3.5 3.8 6.9 5.9Depreciation 3.1 2.7 6.0 5.9Amortization 3.0 3.0 6.3 6.5Adj. EBITDA $21.1 $22.2 $41.6 $38.9

EBITDA(US$ in millions)

Q2 2019 Q2 2018

Cash from Ops (GAAP) $23.1 $18.4Capital Expenditures (2.3) (2.2)Free Cash Flow $20.8 $16.2

Free Cash Flow(US$ in millions)

GAAP TO NON-GAAP RECONCILIATIONS

© 2019 Badger Meter, Inc. 9

GAAP Adjustments Adjusted GAAP Adjustments Adjusted

Sales $113.6 $113.6 $218.7 $218.7

Gross Margin 41.5 41.5 78.2 78.2

SEA 25.2 25.2 51.9 51.9

Operating Income 16.3 16.3 26.3 26.3

Pension Settlement Charge (8.2) 8.2 0.0 (8.2) 8.2 0.0

Income Taxes 1.8 (2.0) 3.8 3.9 (2.0) 5.9

Net Earnings 6.1 6.2 12.3 13.7 6.2 19.8

EPS $0.21 $0.21 $0.42 $0.47 $0.21 $0.68

YTD 2018Q2 2018(US$ in millions except per share data)