Sensus Usa 8-K Future of Energy Conference

Credit Suisse

Future of Energy Conference

June 3, 2010

1

Exhibit 99.1

Peter Mainz-CEO and President

Jeff Kyle-

CFO

Jim Hilty-

VP, Business Development

2

Safe Harbor Statement

The

statements

made

during

this

presentation,

other

than

historical

facts,

are

made

in

reliance

on

the

safe-

harbor

provisions

of

the

Private

Securities

Litigation

Reform

Act

of

1995.

These

statements

involve

risks

and

uncertainties

and

are

subject

to

change

at

any

time.

These

statements

reflect

the

Company’s

current

expectations

regarding

its

financial

position,

revenues,

cash

flow

and

other

operating

results,

business

strategy,

financing

plans,

forecasted

trends

related

to

the

markets

in

which

the

Company

operates,

legal

proceedings

and

similar

matters.

We

cannot

assure

you

that

the

expectations

expressed

or

implied

in

these

forward-looking

statements

will

turn

out

to

be

accurate.

Our

actual

results

could

be

materially

different

from

our

operations

because

of

various

risks.

These

risks

include

our

susceptibility

to

macroeconomic

downturns

in

the

United

States

and

abroad,

conditions

in

the

residential,

commercial

and

industrial

construction

markets

and

in

the

automotive

industry,

our

dependence

on

new

product

development

and

intellectual

property,

and

our

dependence

on

independent

distributors

and

third-party

contract

manufacturers,

automotive

vehicle

production

levels

and

schedules,

our

substantial

financial

leverage,

debt

service

and

other

cash

requirements,

liquidity

constraints

and

risks

related

to

future

growth

and

expansion.

Other

important

risk

factors

that

could

cause

actual

events

or

results

to

differ

from

those

contained

or

implied

in

the

forward-looking

statements

include,

without

limitation,

our

ability

to

integrate

acquired

companies,

general

economic

and

business

conditions,

competition,

adverse

changes

in

the

regulatory

or

legislative

environment

in

which

we

operate,

customer

cancellations

and

other

factors

beyond

the

Company’s

control.

We

encourage

you

to

review

our

annual

report

on

Form

10-K,

which

discusses

in

greater

detail

our

results

of

operations

for

the

most

recently

completed

fiscal

year

and

consider

the

risks

that

relate

to

any

of

our forward-

looking

statements.

3

Experience

Over

a

century

of

experience

serving

global

utilities

and

100

million

meters

installed

A

leader

in

innovative

technology

solutions

that

enable

intelligent

use

and

conservation

of

critical

energy

and

water

resources.

Technology

Advanced

technology

and

communications

for

data

collection,

control

and

metering

Global

Global

footprint

on

five

continents

with

operations

and

activities

in

many

countries

Proven

Proven

technology

with

7

Million

SmartPoint™

devices

deployed

at

over

225

utilities

4

About Sensus

•

Record $866 million of Net Sales

in FY 2010; 9% 5 yr. CAGR

•

Record $128 million Adjusted

EBITDA*; 15% margin

•

A market leader in the

•

NA Smart Grid market

•

Global Water market

•

NA Gas market

•

Nearly 4,000 employees

worldwide

•

Headquarters in Raleigh, N.C.

* See Appendix: Non-GAAP Measures

5

Market Environment

6

•

Energy and water -

under pressure

•

Utilities -

under pressure

•

Consumers -

increased control

•

Politicians and regulators -

under pressure

•

Aging infrastructure -

upgrade required

•

Demand growth certain -

local and global

•

Electric cars, renewable/distributed generation

•

Conservation and efficiency -

being mandated

•

Evolving market drivers require innovative technology solutions

–

Technology enables massive scale deployments

–

Governments’

stimulants to accelerate on a global basis

7

Today’s Market Environment

8

•

Extensive

portfolio

of

advanced

metering

products

for

all

utility

types

–

iCON

®

-

advanced

solid

state

electric

meter

–

iPERL™

-

next

generation

water

measurement

technology

–

SONIX

®

-

ultrasonic

gas

meter

•

Advanced

long-range,

high-powered

radio

communications

network

(FlexNet™)

–

Protected,

primary-use

FCC

licensed

radio

spectrum

can

cover

all

utility

applications

–

Avoids

interference

in

the

crowded

public

spectrum

bands

used

by

mesh

networks

–

Reliable

for

utilities’

“mission

critical”

applications,

e.g.

distribution

automation

–

Software

defined

radio

enables

over-the-air

upgrades

•

Distribution

Automation

(DA)

devices

and

software

–

Connects

using

integrated

Sensus

communications

network

–

Interfaces

with

utility

SCADA

system

–

Integrated

with

all

major

DA

equipment

manufacturers

•

Demand

Response

and

Home

Area

Network

solutions

–

Connect

directly

to

the

network

or

through

electric

meter

via

other

communications,

e.g.

Zigbee

•

Fully

integrated

solution

–

Communications,

software,

meters,

distribution

automation

devices,

demand

response

and

Home

Area

Network

solutions

•

Extensive

offering

portfolio

for

all

utility

types

–

Electric,

water,

gas

and

combination

utilities

Sensus’

Differentiated Offering

Distributed Generation

Distributed Generation

(Wind/Solar/Other)

9

Home

Energy

Gateways

Backend

Backend

Endpoints

Layer

Control &

Management

Layer

Performance and

Supervisory

Layer

Thermostat

ZigBee

Chip

Thermostat

Redundant

RNI

TGB

Gas

Meter

Billing

Systems

Network

Performance

Load

Management

Gas

Water

Electric

Data

Backhaul

Distribution

Automation

and

Asset Management

TGB

The Sensus Smart Grid Solution

Water

Meter

Electric

Meter

10

•

Advanced long-range, high-power radio communications technology

–

Deployed

using

a

star-based

“point-to-point”

structure;

not

a

mesh

system

–

Cost

efficiently

covers

both

urban

and

rural

environments

and

all

terrains

•

Protected, primary-use FCC licensed radio spectrum

–

Eliminates

interference

inherent

in

crowded

public

spectrum

bands

•

Software defined radio

–

Enables

cost

efficient

and

flexible

over-the-air

upgradability,

unlike

a

chipset

based

radio

–

“Future-proofs”

the

utility’s

investment

•

Fast, dedicated, application specific communications channels

–

Essential

for

“mission

critical”

applications

requiring

low

latency,

e.g.

distribution

automation

•

Resilient, minimal infrastructure

–

Fully

redundant

end-to-end

architecture.

Robust

infrastructure

to

withstand

natural

disasters.

–

Lowest

initial

installation

and

ongoing

operating

and

maintenance

costs

•

Advanced security

–

State-of-the-art

key

encryption

at

meter

level;

set

at

point

of

manufacture

•

FlexNet™

communications solution can cover all utility applications

–

Metering,

distribution

automation,

demand

response,

Home

Area

Networks

and

emerging

technologies

–

2-way

direct

communications

with

battery

powered

water

and

gas

meters

Sensus’

Technology Advantages

Technology Transition Is Underway

•

Transition to AMI & Smart Meters is

underway

•

165 million of the estimated 355

million installed meters in NA have

been converted to some type of

automated metering

•

Estimated that only 15 million of the

165 million are 2-way “Smart

Meters”

•

Early 1-way AMR installations must

be replaced to make them

AMI/Smart Grid compatible

•

2.7 billion global meter installed

base is growing, but is mostly    

non-automated meters

Sources:  “The Scott AMR Report: AMR Deployments in North America, 4th Quarter 2009”, IMS       

Research “The World Market for Utility Meters –

2009 Edition”

; IMS Research “The Americas

Market  for Utility Meters & AMR Systems”

Report –

2006 Edition; and Management estimates.

Global Meter Installed Base (units in millions)

1,277

976

442

2,695

11

Building the Smart Grid…Today

•

225 Smart Grid projects completed

or in-process

•

37 States

•

2 Canadian Provinces

•

2 European countries

•

7 million SmartPoint™

devices

installed

•

13 million SmartPoint™

devices

when all current projects complete

12

Sensus

SmartPoint™

Deployments

•

Dramatic growth in electric

Sensus

SmartPoint

TM

device

deployments

•

Electric growth driven by 2-way

Smart Grid deployments, not

basic AMR

•

Electric AMI market share

increased from 3% to 23% in

two years

•

Water market transitioning from

basic AMR to 2-way smart

metering

•

Tier-I CEM approach enables

rapid scalability

Source:  The Scott Report: AMR Deployments in North America and Sensus

13

A Global Water Metering Leader

Global Market

Market Size: $2.3 billion

•

Scarcity of water and conservation

initiatives are global factors

•

Key markets of North America (22%

share) and Europe (25% share) are driven

by water meter replacement programs

•

Technology is a driver both for residential

and commercial & industrial applications

–

2-Way water communications network

–

iPERL™

water management device

Source:

IMS Research Report 2008; management estimates.

Note:

Market shares based on revenue.

14

16%

Financial Overview

15

Water Metering

39%

Gas Metering

7%

Precision

Die Casting

7%

Clamps &

Couplings

7%

Water Metering

60%

Gas Metering

12%

Precision

Die Casting

7%

Clamps &

Couplings

10%

Evolution of Net Sales

Fiscal Year 2004 Net Sales

Fiscal Year 2010 Net Sales

Conservation Solutions

11%

$59M

Conservation Solutions

40%

$348M, up 490%

Net Sales: $529M

Net Sales: $866M

(Fiscal year ended March 31)

16

Global Reach

Over 40 facilities on five continents and nearly 4,000 people

Text

FY10 $611

FY04 $349

FY10 $15

FY04 $7

FY10 $28

FY04 $12

FY10 $43

FY04 $9

17

Net Sales by Geography (US$ in millions)

FY10 $169

FY04 $152

$92

$97

$94

$91

$102

$128

16%

16%

15%

13%

13%

15%

0%

5%

10%

15%

20%

25%

$0

$20

$40

$60

$80

$100

$120

FY

2005

FY

2006

FY

2007

FY

2008

FY

2009

FY

2010

$34

$47

$29

$51

$61

$73

$0

$10

$20

$30

$40

$50

$60

$70

$80

FY

2005

FY

2006

FY

2007

FY

2008

FY

2009

FY

2010

$572

$614

$631

$722

$792

$866

$0

$100

$200

$300

$400

$500

$600

$700

$800

$900

$1,000

FY

2005

FY

2006

FY

2007

FY

2008

FY

2009

FY

2010

Strong Financial Track Record

Net Sales

(1)

Net cash provided by operating activities as reported in the

Company SEC filings.

Adjusted EBITDA* margins improving as

leverage and scale drive operating results.

R&D investment rate increase approximately

25% from 2008 levels to 4.8% of net sales as

technology is introduced across the Utility

Infrastructure Systems product portfolios.

2008 Sensus launches FlexNet™

systems

and enters AMI Electric markets.

2009 revenue traction attained as market

share expands rapidly to 23% with 7 million

SmartPoint™

devices shipped within just over

2 years.

Fiscal Year Ended March 31 (US$ in millions)

Adjusted EBITDA *

Operating Cash Flow

(1)

Continued drive on balance sheet efficiency

through working capital initiatives. Days sales

cycle improved over 100% since 2008.

Maintained investments in infrastructure and

software to support market strategies and

commitments.

* See Appendix: Non-GAAP Measures

18

Fiscal Year End March 31

(US$ in millions)

FY 2009

FY 2010

Percent

Change

Net Sales

$792

$866

+ 9.3%

Gross Profit

$199

$247

+ 24.1%

Gross Profit %

25.1%

28.5%

R&D Investment / Net Sales %

3.9%

4.8%

Adjusted EBITDA *

$102

$128

+ 25.5%

Adjusted EBITDA % *

12.9%

14.8%

Backlog

$124

$134

+ 8.1%

Average Sales Cycle (days)**

26

15

+ 42.3%

Financial Highlights

*   See Appendix: Non-GAAP Measures

**  Sales Cycle =  Days Sales + Days  Inventory  -

Days Payable

19

20

Over a Century

of providing

Technology to

Utilities

Serve Electric,

Water, Gas and

Combination

Utilities

Global

Business

Market

Leadership

Positions

Integrated

Metering and

Communications

Solutions

Protected,

FCC

Licensed

Spectrum

100 Million

Meters

deployed

Globally

7 Million

SmartPoint™

Devices

Deployed

Proven Business

Model with Solid

Financial Results

A

leader

in

innovative

technology

solutions

that

enable

intelligent

use

and

conservation

of

critical

energy

and

water

resources.

A

leader

in

innovative

technology

solutions

that

enable

intelligent

use

and

conservation

of

critical

energy

and

water

resources.

Thank You

For more information visit: www.sensus.com

21

Appendices

22

Appendix: Financial Position

Fiscal Year End March 31

(US$ in millions )

FY 2008

FY 2009

FY 2010

FY % of

Capitalization

Cash

$  38

$  38

$  59

Short-term loans

$    6

$  5

$    5

1%

Term loans

$174

$159

$186

26%

Sr. Subordinated Notes

$275

$275

$275

38%

Total Debt

$455

$439

$466

65%

Paid-in Capital

$243

$245

$252

35%

Total Book Capitalization

$698

$684

$718

100%

Adjusted EBITDA *

(1)

$  91

$102

$128

Adjusted EBITDA * / Interest

expense, net

(1)

2.4x

3.1x

2.9x

Net Debt / Adjusted EBITDA*

4.5x

3.7x

3.4x

* See Appendix: Non-GAAP Measures

(1)

As defined in the credit facility agreements.

23

Appendix: Non-GAAP Measures

•

To

enhance

the

comparability

and

usefulness

of

its

financial

information,

the

Company

provides

certain

non-GAAP

measures

to

describe

more

fully

the

results

of

its

underlying

business.

Specifically,

the

Company

utilizes

the

measure

of

Adjusted

EBITDA,

which

is

defined

as

follows:

–

Adjusted

EBITDA

is

defined

as

consolidated

earnings

before

interest

expense,

depreciation

and

amortization,

and

income

taxes

plus

(a)

restructuring

costs,

(b)

management

fees

and

(c)

acquisition-related

costs,

and

adjusted

for

other

nonrecurring

items.

•

Refer

to

the

Company’s

press

release

on

Form

8-K

dated

May

7,

2010

for

further

discussion

of

non-GAAP

measures.

24

Appendix: Non-GAAP Measures

A reconciliation of Adjusted EBITDA to consolidated net loss follows:

FY

FY

FY

FY

FY

FY

Ended

Ended

Ended

Ended

Ended

Ended

(US$ in millions)

3/31/2010

3/31/2009

3/31/2008

3/31/2007

3/31/2006

3/31/2005

Net sales

$       865.6

$       791.9

$       722.0

$       631.4

$       613.9

$       569.8

Adjusted Gross Profit

$       247.2

$       199.4

$       186.9

$       177.7

$       186.4

$       170.8

Consolidated net loss

$        (5.0)

$       (16.0)

$         (6.4)

$         (8.4)

$         (3.2)

$         (5.0)

Depreciation and amortization

45.5

46.6

47.7

48.1

42.4

39.8

Interest expense, net

43.6

39.9

41.8

42.4

39.3

36.7

Income tax provision (benefit)

7.7

0.7

(1.4)

0.5

8.2

8.3

Restructuring costs

25.9

9.9

7.0

8.5

7.2

8.1

Management fees

3.3

3.1

2.6

2.6

2.3

2.1

Acquisition-related costs

1.2

-

-

0.1  

-

-

Loss on debt extinguishment

5.9

-

-

-

-

-

Other non-recurring items

-

3.3

-

-

1.1

0.9

Goodwill impairment

-

14.4

-

-

-

-

(Gain) loss from discontinued operations

-

-

-

(0.1)

-

0.8

Adjusted EBITDA (excluding discontinued operations)

$       128.1

$       101.9

$         91.3

$         93.7

$         97.3

$         91.7

25