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Itron, Inc. - Special Call

Our presentation includes non-GAAP financial information that we believe enhances the overall understanding of our current and future performance. We have included a reconciliation between GAAP and non-GAAP operating income for the Water segment at the end of the presentation, and you can also find detailed reconciliation for Itron's consolidated results in our quarterly earnings press release available on our website at www.itron.com/investor.

Now please turn to Slide 3. Our goal for today's webcast is to provide investors more insight into our global water business. We will cover what we believe about the water market, what we do at Itron to help our water customers address their challenges and our key financial metrics for our newly formed global Water segment. Following our prepared remarks, we will answer questions sent in by investors, and we expect the call will conclude in under one hour's time.

Now please turn to Slide 4, and I will turn the call over to Marcel Regnier.

Marcel Regnier

Thank you, Barbara, and good morning, everyone. On Slide 4, you can see that IMS confirmed in its latest report published in 2011, Itron is the #1 provider of water metering products. We sold more than 9 million meters in 2011. That is basically one meter every 3.5 seconds. And by far, we are #1 in smart metering modules with 2.5 million units shipped last year, with about 50% of these shipped in North America, 30% in Europe and the rest in other countries like Australia, China, India. We have a large experienced employee base, serving our water customers around the world, and we have a global manufacturing network with significant presence over the 5 continents. We also have global R&D that allows us to design smart water metering platforms to customize to local requirements. This is one of Itron's core advantages.

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