1q 2020 highlights and operating resultss21.q4cdn.com/.../2020/q1/...presentation-slides.pdf7.0%...

1Q 2020 Highlights and Operating Results

Build. Connect. Power. Protect. Services. Worldwide.

2© 2020 Anixter Inc.

Table of Contents

Page

3 Safe Harbor Statement and Non-GAAP Financial Measures

4 Financial Results

5 Sales Overview

6 Overview of Financial Performance and Trends

11 Segment Results and Trends

17 Working Capital and Adjusted ROTC

18 Leverage Metrics

20 Appendix


Safe Harbor Statement and Non-GAAP Financial MeasuresSafe Harbor StatementThe statements in this release other than historical facts are forward-looking statements made in reliance upon the safe harbor of the Private Securities Litigation Reform Act of 1995. These forward-looking statements are subject to a number of factors that could cause our actual results to differ materially from what is indicated here. These factors include but are notlimited to the impact of the COVID-19 pandemic, general economic conditions, the level of customer demand particularly for capital projects in the markets we serve, changes in supplierrelationships or in supplier sales strategies or financial viability, risks associated with the sale of nonconforming products and services, political, economic or currency risks related toforeign operations, inventory obsolescence, copper price fluctuations, customer viability, risks associated with accounts receivable, risks associated with pension expense and funding,the impact of regulation and regulatory, investigative and legal proceedings and legal compliance risks, information security risks, disruption or failure of information systems, disruptionsto logistics capability or supply chain, risks associated with substantial debt and restrictions contained in financial and operating covenants in our debt agreements, the impact and theuncertainty concerning the timing and terms of the withdrawal by the United Kingdom from the European Union, unanticipated changes in our tax provision and tax liabilities related to theenactment of the Tax Cuts and Jobs Act, and risks associated with integration of acquired companies, including, but not limited to, the risk that the acquisitions may not provide us withthe synergies or other benefits that were anticipated. These uncertainties may cause our actual results to be materially different than those expressed in any forward looking statements. We do not undertake to update any forward looking statements. Please see our Securities and Exchange Commission (“SEC”) filings for more information.

Non-GAAP Financial MeasuresIn addition to the results provided in accordance with U.S. Generally Accepted Accounting Principles (“GAAP”) above, this release includes certain financial measures computed usingnon-GAAP components as defined by the SEC. Specifically, net sales comparisons to the prior corresponding period, both worldwide and in relevant segments, are discussed in thisrelease both on an U.S. GAAP and non-GAAP basis. We believe that by providing non-GAAP organic growth, which adjusts for the impact of acquisitions (when applicable), foreignexchange fluctuations, copper prices and the number of billing days (when applicable), both management and investors are provided with meaningful supplemental sales information tounderstand and analyze our underlying trends and other aspects of our financial performance. Historically and from time to time, we may also exclude other items from reported financialresults (e.g., impairment charges, inventory adjustments, restructuring charges, tax items, currency devaluations, pension settlements, etc.) in presenting adjusted operating expense,adjusted operating income, adjusted income taxes and adjusted net income so that both management and financial statement users can use these non-GAAP financial measures tobetter understand and evaluate our performance period over period and to analyze the underlying trends of our business. We have also excluded amortization of intangible assetsassociated with purchase accounting from acquisitions from the adjusted amounts for comparison of the non-GAAP financial measures period over period.

EBITDA is defined as net income before interest, income taxes, depreciation and amortization. Adjusted EBITDA is defined as EBITDA before foreign exchange and other non-operatingexpense and non-cash stock-based compensation, excluding the other items from reported financial results, as defined above. Adjusted EBITDA leverage is defined as the percentagechange in Adjusted EBITDA divided by the percentage change in net sales. We believe that adjusted operating income, EBITDA, Adjusted EBITDA, and Adjusted EBITDA leverageprovide relevant and useful information, which is widely used by analysts, investors and competitors in our industry as well as by our management in assessing both consolidated andbusiness segment performance. Adjusted operating income provides an understanding of the results from the primary operations of our business by excluding the effects of certain itemsthat do not reflect the ordinary earnings of our operations. We use adjusted operating income to evaluate our period-over-period operating performance because we believe this providesa more comparable measure of our continuing business excluding certain items that are not reflective of expected ongoing operations. This measure may be useful to an investor inevaluating the underlying performance of our business. EBITDA provides us with an understanding of earnings before the impact of investing and financing charges and income taxes.Adjusted EBITDA further excludes the effects of foreign exchange and other non-cash stock-based compensation, and certain items that do not reflect the ordinary earnings of ouroperations and that are also excluded for purposes of calculating adjusted net income, adjusted earnings per share and adjusted operating income. EBITDA and Adjusted EBITDA areused by our management for various purposes including as measures of performance of our operating entities and as a basis for strategic planning and forecasting. Adjusted EBITDA andAdjusted EBITDA leverage may be useful to an investor because this measure is widely used to evaluate a company’s operating performance without regard to items excluded from thecalculation of such measure, which can vary substantially from company to company depending on the accounting methods, book value of assets, capital structure and the method bywhich the assets were acquired, among other factors. They are not, however, intended as an alternative measure of operating results or cash flow from operations as determined inaccordance with U.S. GAAP.

Non-GAAP financial measures provide insight into selected financial information and should be evaluated in the context in which they are presented. These non-GAAP financial measureshave limitations as analytical tools, and should not be considered in isolation from, or as a substitute for, financial information presented in compliance with GAAP, and non-GAAPfinancial measures as reported by us may not be comparable to similarly titled amounts reported by other companies. The non-GAAP financial measures should be considered inconjunction with the Condensed Consolidated Financial Statements, including the related notes, and Management’s Discussion and Analysis of Financial Condition and Results ofOperations. Management does not use these non-GAAP financial measures for any purpose other than the reasons stated above.


Financial Results

Three Months Ended

(In millions, except per share amounts)April 3,

2020March 29,

2019Percent Change

Select Reported Measures

Net Sales $ 2,071.7 $ 2,108.5 (2)%

Operating Income $ 71.4 $ 74.6 (4)%

Net Income $ 35.7 $ 39.1 (9)%

Diluted Earnings Per Share $ 1.03 $ 1.14 (10)%

Diluted Weighted Shares 34.6 34.2 1%

Select Non-GAAP Measures

Adjusted EBITDA $ 96.0 $ 96.5 (1)%

Adjusted Net Income $ 44.4 $ 45.4 (2)%

Adjusted Diluted Earnings Per Share $ 1.28 $ 1.33 (4)%


Sales Overview

1Q20 Segment and Geographic Mix

NSS 52%

EES 26%

UPS 22%

NA 81%

EMEA 7%

EM 12%

1Q20 Sales: $2.1 billion

YOY Sales Growth

GAAP Organic

North America (0.7)% (0.6)%EMEA (2.8)% (1.2)%

Emerging Markets (8.1)% (5.8)%Anixter International (1.7)% (1.3)%

YOY Sales Growth

GAAP Organic

Network and Security Solutions (NSS) (2.9)% (2.3)%Electrical and Electronic Solutions (EES) (4.2)% (3.5)%

Utility Power Solutions (UPS) 4.4% 4.4%Anixter International (1.7)% (1.3)%


$ M

illio

ns

GAAP Sales -1.7%, Organic Sales -1.3%$2,109

$(8) $(2)

$(27)

$2,072

1Q19 Currency Copper OrganicGrowth

1Q20

Overview of Financial Performance and Trends

1Q20 Sales Performance G

AA

P S

ales

($ M

illio

ns) O

rganic Sales G

rowth %

Sales Growth Trend

$1,964$2,138 $2,179 $2,119 $2,109

$2,263 $2,222 $2,252$2,072

1.6%

4.9%

7.4%

5.1%7.7% 6.0%

2.6%

6.5%

(1.3)%

1Q18 2Q18 3Q18 4Q18 1Q19 2Q19 3Q19 4Q19 1Q20

• First quarter sales were $2.1B

• Organic sales decreased 1.3%

• On an average daily sales basis, organic daily sales were down 2.8%



Gross Margin Trend

• Gross profit decreased 0.6%, to $416.4M• Gross margin of 20.1% increased 20 basis points YOY as the long term strategies that have been

implemented continue to show strong results• Six consecutive quarters of year-over-year gross margin improvement

Gro

ss P

rofit

($ M

illio

ns)

Gross M

argin %

Gross Margin Trend

$385

$419$424

$430

$419

$450 $446

$461

$416

19.6% 19.6% 19.5%

20.3%19.9% 19.9%

20.1%20.4%

20.1%

1Q18 2Q18 3Q18 4Q18 1Q19 2Q19 3Q19 4Q19 1Q20300

350

400

450

500

+15 bps Y/Y +20 bps

Y/Y+60 bps

Y/Y+30 bps Y/Y

+30 bps Y/Y

+50 bps Y/Y



Operating Expense Trend$

Mill

ions

% of S

ales

Operating Expense Trend (GAAP)

$323

$348

$335$343 $344 $344 $345

$375

$345

16.5% 16.3%15.4%

16.2% 16.3%

15.2% 15.5%

16.7% 16.7%

Operating Expense (GAAP) Opex as % of sales (GAAP)

1Q18 2Q18 3Q18 4Q18 1Q19 2Q19 3Q19 4Q19 1Q20275

300

325

350

375 • 1Q20 operating expense was 16.7% of sales, a 40 basis point increase versus prior year

• 1Q20 operating expense increased by $0.6M

• 1Q20 had $2.9M of merger-related expenses

$ M

illio

ns

% of S

alesOperating Expense Trend (Non-GAAP)

$313 $324 $324 $334 $336 $335 $336 $354$333

16.0%

15.1% 14.9%

15.8% 15.9%

14.8%15.1%

15.7%16.1%

Adj Operating Expense Adj Opex as % of sales

1Q18 2Q18 3Q18 4Q18 1Q19 2Q19 3Q19 4Q19 1Q20

• Adjusted operating expense decreased 0.7%, and increased as a percentage of sales by 20 basis points

• Expenses were down sequentially



Operating Income Trend$

Mill

ions

% of S

ales

Operating Income and Operating Margin Trend (GAAP)

$62

$71

$90 $87

$75

$106$102

$85

$71

3.1% 3.3%

4.1% 4.1%

3.5%

4.7% 4.6%

3.8%3.4%

Operating Income (GAAP) Operating Margin (GAAP)

1Q18 2Q18 3Q18 4Q18 1Q19 2Q19 3Q19 4Q19 1Q2040

60

80

100

120

$ M

illio

ns

% of S

alesOperating Income and Operating Margin Trend (Non-GAAP)

$71

$96 $100 $96$83

$115 $111 $107

$83

3.6%

4.5% 4.6% 4.5%

3.9%

5.1% 5.0%4.7%

4.0%

Adj Operating Income Adj Operating Margin

1Q18 2Q18 3Q18 4Q18 1Q19 2Q19 3Q19 4Q19 1Q20

• Adjusted operating income of $82.9M compares to $83.1M. The corresponding adjusted operating margin of 4.0% compares to 3.9%

• Operating margin improved year over year even after absorbing the negative impact of the pandemic

• Operating income decreased 4.3% to $71.4M

• The corresponding operating margin of 3.4% compares to 3.5%, a 10 basis point decline



Net Income and Adjusted EBITDA TrendN

et In

com

e ($

Mill

ions

)

Net M

argin (%)

Net Income and Net Margin Trend (GAAP)

$32 $35

$48$42 $39

$64$59

$101

$36

1.6% 1.6%

2.2% 2.0% 1.9%

2.8% 2.7%

4.5%

1.7%

1Q18 2Q18 3Q18 4Q18 1Q19 2Q19 3Q19 4Q19 1Q200

15

30

45

60

75

90

105

Adj

EB

ITD

A ($

Mill

ions

)

Adj E

BITD

A %

Adjusted EBITDA and Adjusted EBITDA Margin Trend (Non-GAAP)

$83

$108 $111 $109$97

$129 $126 $121

$964.2%

5.0% 5.1% 5.1%

4.6%

5.7% 5.6%5.4%

4.6%

1Q18 2Q18 3Q18 4Q18 1Q19 2Q19 3Q19 4Q19 1Q20

• Net income decreased from $39.1M to $35.7M

• Foreign exchange impact to net income was expense of $5.3M compared to $2.4M of expense in 1Q19

• Adjusted EBITDA margin of 4.6% is flat compared to 1Q19

• Sequentially, adjusted EBITDA margin of 4.6% compares to 5.4%


Segment Results and Trends

Network & Security Solutions Sales

• NSS first quarter sales decreased 2.9% to $1.1B

YO

Y C

hang

e

NSS Organic Sales Growth Trend

(0.5)%

4.7%

6.4%

4.7%

10.7%

8.4%

4.3%

8.0%

(2.3)%

1Q18 2Q18 3Q18 4Q18 1Q19 2Q19 3Q19 4Q19 1Q20-2.0%

0.0%

2.0%

4.0%

6.0%

8.0%

10.0%

$ M

illio

ns

NSS GAAP Sales -2.9%, Organic Sales -2.3%

$1,113

$(7)

$(25)

$1,081

1Q19 FX OrganicSales

1Q20

• NSS organic sales decreased 2.3%,

• Organic average daily sales were down 3.8%

• 1Q two-year cumulative growth of 8% compares to 13% in 4Q

• Organic sales decreased in North America 2.3% and EMEA 7.2%. Emerging Markets organic sales grew 0.3%



NSS Operating Income and Adjusted EBITDA $

Mill

ions

Margin %

NSS Operating Income and Operating Margin Trend (GAAP)

$54

$66

$75$78

$71

$86 $85 $84

$63.2

5.4%6.0%

6.6% 6.9%6.4%

7.2% 7.2% 6.9%

5.8%

NSS Operating Income (GAAP) NSS Operating Margin (GAAP)

1Q18 2Q18 3Q18 4Q18 1Q19 2Q19 3Q19 4Q19 1Q20

50

60

70

80

90 • NSS operating income decreased 10.8% to $63.2M

• The corresponding operating margin was 5.8%

$ M

illio

ns

Margin %

NSS Adjusted EBITDA and Adjusted EBITDA Margin (Non-GAAP)

$59

$76$82 $84

$78

$94 $92 $90

$70

5.9%

6.9% 7.2% 7.5%7.0%

7.8% 7.8% 7.5%

6.5%

Adjusted EBITDA Adj EBITDA Margin

1Q18 2Q18 3Q18 4Q18 1Q19 2Q19 3Q19 4Q19 1Q20

• NSS adjusted EBITDA decreased 9.7% to $70.4M

• The corresponding adjusted EBITDA margin was 6.5%.



Electrical & Electronic Solutions Sales Y

OY

Gro

wth

EES Organic Sales Growth Trend

3.7%4.7%

9.0%

0.5% 2.3% 2.3%

(2.2)%

5.0%

(3.5)%

1Q18 2Q18 3Q18 4Q18 1Q19 2Q19 3Q19 4Q19 1Q20

0%

3%

6%

9%

$ M

illio

ns

EES GAAP Sales -4.2%, Organic Sales -3.5%

$566

$(2)

$(21)

$542

1Q19 Currency Copper OrganicSales

1Q20

• EES first quarter sales decreased 4.2% to $542.2

• EES organic sales decreased 3.5%

• Organic average daily sales were down 5.0%

• Organic sales grew in EMEA 8.3% and declined in North America by 2.1% and the Emerging Markets 24.0%

$(1)



EES Operating Income and Adjusted EBITDA$

Mill

ions

Margin %

EES Adjusted EBITDA and Adjusted EBITDA Margin Trend (Non-GAAP)

$35

$40$37

$34 $33

$42$40 $41

$32

6.1%

6.7%

6.1%5.9% 5.8%

6.9% 6.8% 6.8%

5.9%

EES Adj EBITDA EES Adj EBITDA Margin

1Q18 2Q18 3Q18 4Q18 1Q19 2Q19 3Q19 4Q19 1Q20

• EES adjusted EBITDA increased 1.5% to $32.1M

• The corresponding adjusted EBITDA margin increased 10 basis points to 5.9%, due to strong gross margin performance

$ M

illio

ns

Margin %

EES Operating Income and Operating Margin Trend (GAAP)

$31

$36$34

$31$29

$38$35

$37

$29

5.5%5.9% 5.7% 5.5%

5.1%

6.3% 6.1% 6.2%

5.3%

EES Operating Income (GAAP) EES Operating Margin (GAAP)

1Q18 2Q18 3Q18 4Q18 1Q19 2Q19 3Q19 4Q19 1Q200

15

30

45

• EES operating income decreased 1.5% to $28.7M

• The corresponding operating margin increased 20 basis points to 5.3% due to strong gross margin performance


• UPS record first quarter sales increased 4.4% to $449M

• UPS organic sales growth was 4.4%, which marks the 13th consecutive quarter of organic sales growth for UPS

• Organic average daily sales growth was 2.8%

• 1Q two-year cumulative growth of 12% compares to 18% in 4Q


Utility Power Solutions Sales $

Mill

ions

UPS GAAP Sales +4.4%, Organic Sales +4.4%

$430

$19 $449

1Q19 Currency Copper OrganicSales

1Q20

YO

Y G

row

th

UPS Organic Sales Growth Trend

4.0%

5.8%

8.1%

13.3%

7.9%

5.0%4.4% 4.4% 4.4%

1Q18 2Q18 3Q18 4Q18 1Q19 2Q19 3Q19 4Q19 1Q200%

4%

8%

12%


• UPS operating income of $22.0M compares to $18.5M

• The corresponding operating margin of 4.9% increased from 4.3%


UPS Operating Income and Adjusted EBITDA$

Mill

ions

Margin %

UPS Adjusted EBITDA and Adjusted EBITDA Margin Trend (Non-GAAP)

$21$23 $24

$26$23

$27 $28

$23

$275.2% 5.3% 5.4%

5.9%5.3%

6.0% 6.1%

5.0%

5.9%

UPS Adj EBITDA UPS Adj EBITDA margin

1Q18 2Q18 3Q18 4Q18 1Q19 2Q19 3Q19 4Q19 1Q20

$ M

illio

ns

Margin %

UPS Operating Income and Operating Margin Trend (GAAP)

$16

$18

$20$21

$19

$23$24

$18

$22

4.1% 4.1% 4.5%4.9%

4.3%5.1% 5.1%

4.0%4.9%

UPS Operating Income (GAAP) UPS Operating Margin (GAAP)

1Q18 2Q18 3Q18 4Q18 1Q19 2Q19 3Q19 4Q19 1Q2010

15

20

25

• UPS adjusted EBITDA increased 17.2% to $26.6M

• The corresponding adjusted EBITDA margin increased 60 basis points to 5.9%


Working Capital and Adjusted ROTCA

dj R

OTC

%

Adjusted ROTC

25.4%

23.9%

25.0%

24.0%

2017 2018 2019 1Q 20

% o

f Sal

es

Working Capital as Percent of Sales

18.7%18.4% 18.2%

21.3%

2017 2018 2019 1Q 20

• Working capital ratio of 21.3% increased 310 basis points compared to 2019

* Working capital ratio of 19.0% represents pro forma results assuming a $75M normalized cash balance. We proactively increased cash levels to provide additional flexibility during the disruption in the financial markets in March.

• Adjusted ROTC of 24.0% compares to 25.0% in 2019

Working Capital as Percent of Sales - current assets less current liabilities divided by rolling four-quarter sales (excluding current portion of operating lease liability related to the 1Q19 adoption of ASC 842, Leases)

Adjusted ROTC - rolling four-quarter adjusted operating income divided by average tangible capital (excluding right-of-use operating lease assets related to the 1Q19 adoption of ASC 842, Leases)

19.0%*


Debt / Adjusted EBITDA

3.9 4.0

2.6

2.9

2.22.0

2.3

3.4

2.8

2.0

2.42.1

2.9

3.83.5

3.1 3.0

2.2

2.8

2002 2003 2004 2005 2006 2007 2008 2009 2010 2011 2012 2013 2014 2015* 2016 2017 2018 2019 1Q201.5

2

2.5

3

3.5

4

4.5

Leverage Metrics

Strategic Leverage Targets

Debt-to-Capital

41% 41% 35%

47%

46% 46%

51%

45%

47%

45%

50%

45%

52%

58%

52%

46%44%

36%

41.8%

2002 2003 2004 2005 2006 2007 2008 2009 2010 2011 2012 2013 2014 2015 2016 2017 2018 2019 1Q2030%

35%

40%

45%

50%

55%

60%

* 2015 includes 12 months of Power Solutions earnings on a pro forma basis ** 1Q20 debt balance adjusted by approximately $200M to reflect normalized cash balance as we proactively increased cash levels to provide additional flexibility during the disruption in the financial markets in March.

Target range:2.5x - 3.0x

Target range:45% - 50%

2.4**

37.7%**


• For more information read the full press release:

– http://investors.anixter.com/news/news/press-release-details/2020/WESCO-International-and-Anixter-International-Announce-Merger-Agreement-to-Create-a-Premier-Electrical-and-Data-Communications-Distribution-and-Supply-Chain-Services-Company/default.aspx

• For information on the Anixter shareholder approval of the merger please visit:

– http://investors.anixter.com/news/news/press-release-details/2020/Anixter-Stockholders-Approve-Merger-with-WESCO/default.aspx

• For the latest SEC filings please visit:

– http://investors.anixter.com/financials/sec-filings/

WESCO International and Anixter InternationalAnnounce Merger Agreement


Appendix


Glossary

1H first half of fiscal yearB billionsM millionsFx foreign exchangeGAAP U.S. GAAPNSS Network & Security SolutionsEES Electrical & Electronic SolutionsUPS Utility Power SolutionsETR effective tax rateOpex total operating expenseEMEA Europe, middle east and AfricaEM Emerging marketsCALA Central and Latin AmericaAPAC Asia Pacific, Australia and ChinaOEM original equipment manufacturerIOU investor owned utilityY/Y year-over-yearUSD U.S. dollarWC working capitalROTC return on tangible capitalFree Cash Flow cash from operations less capital expenditures


In millions (except per share amounts)

Favorable (Unfavorable) ImpactThree Months Ended

April 3, 2020 March 29, 2019

Items impacting comparability of results:Items impacting operating expense and operating income:Amortization of intangible assets $ (8.6) $ (8.8)Merger costs (2.9) —Acquisition and integration costs — 0.3Total of items impacting operating expense and operating income $ (11.5) $ (8.5)Total of items impacting pre-tax income $ (11.5) $ (8.5)Items impacting income taxes:

Tax impact of items impacting pre-tax income above $ 2.8 $ 2.2Total of items impacting income taxes $ 2.8 $ 2.2Net income impact of these items $ (8.7) $ (6.3)

Diluted EPS impact of these items $ (0.25) $ (0.19)

Anixter International Inc

Items Impacting Comparability


In millions (except per share amounts)

Favorable (Unfavorable) ImpactThree Months Ended

April 3, 2020 March 29, 2019

U.S. GAAP to Non-GAAP Net Income and EPS Reconciliation:Net income – U.S. GAAP $ 35.7 $ 39.1Items impacting net income 8.7 6.3Net income – Non-GAAP $ 44.4 $ 45.4

Diluted EPS – U.S. GAAP $ 1.03 $ 1.14Diluted EPS impact of these items 0.25 0.19Diluted EPS – Non-GAAP $ 1.28 $ 1.33


Items Impacting Comparability (continued)



EBITDA and Adjusted EBITDA Reconciliation

$ millions

EBITDA and Adjusted EBITDA

1Q 18 2Q 18 3Q 18 4Q 18 1Q 19 2Q 19 3Q 19 4Q 19 1Q 20

Net income $32.1 $34.8 $47.6 $41.8 $39.1 $63.5 $ 59.3 $ 101.0 $ 35.7Interest expense 18.2 19.0 19.3 19.8 20.4 19.4 18.5 18.8 16.8Income taxes 13.6 14.2 21.0 18.1 16.9 22.1 22.8 (31.3) 12.3Depreciation 7.4 7.7 8.2 8.4 9.3 9.7 9.7 8.5 8.5Amortization of intangible assets 9.3 9.7 9.6 8.7 8.8 8.8 8.8 8.6 8.6EBITDA $ 80.6 $ 85.4 $ 105.7 $ 96.8 $ 94.5 $ 123.5 $ 119.1 $ 105.6 $ 81.9EBITDA as a % of sales 4.1% 4.0% 4.9% 4.6% 4.5% 5.5% 5.4 % 4.7 % 4.0 %

EBITDA $ 80.6 $ 85.4 $ 105.7 $ 96.8 $ 94.5 $ 123.5 $ 119.1 $ 105.6 $ 81.9Foreign exchange and other non-operating expense (income) (2.3) 3.3 1.6 7.6 (1.8) 0.7 1.2 (3.1) 6.6

Stock-based compensation 4.6 7.2 3.2 3.9 4.1 5.2 5.2 5.5 4.6Merger costs — — — — — — — 12.8 2.9Restructuring charge — 9.2 0.2 — — — — — —Acquisition and integration costs 0.3 2.3 0.3 — (0.3) — — — —U.K. facility relocation costs 0.2 0.4 0.2 0.2 — — — — —Adjusted EBITDA $ 83.4 $ 107.8 $ 111.2 $ 108.5 $ 96.5 $ 129.4 $ 125.5 $ 120.8 $ 96.0Adjusted EBITDA as a % of sales 4.2% 5.0% 5.1% 5.1% 4.6% 5.7% 5.6 % 5.4 % 4.6 %


Network & Security Solutions


$ millions


1Q 18 2Q 18 3Q 18 4Q 18 1Q 19 2Q 19 3Q 19 4Q 19 1Q 20

Net income $53.5 $66.1 $75.0 $77.6 $70.9 $86.3 $ 84.8 $ 83.5 $ 63.2Interest expense — — — — — — — — —Income taxes — — — — — — — — —Depreciation 0.8 0.9 0.9 1.2 2.4 2.4 2.4 2.2 2.5Amortization of intangible assets 3.8 4.2 5.0 4.0 4.1 4.2 4.1 4.0 3.9EBITDA $ 58.1 $ 71.2 $ 80.9 $ 82.8 $ 77.4 $ 92.9 $ 91.3 $ 89.7 $ 69.6EBITDA as a % of sales 5.8% 6.5% 7.1% 7.4% 7.0% 7.7% 7.7 % 7.5 % 6.4 %

EBITDA $ 58.1 $ 71.2 $ 80.9 $ 82.8 $ 77.4 $ 92.9 $ 91.3 $ 89.7 $ 69.6Stock-based compensation 0.4 0.4 0.4 0.6 0.6 0.7 0.7 0.7 0.8U.K. facility relocation costs — 0.1 0.1 — — — — — —Restructuring charge — 2.1 — — — — — — —Acquisition and integration costs — 2.3 0.2 0.1 — — — — —Adjusted EBITDA $ 58.5 $ 76.1 $ 81.6 $ 83.5 $ 78.0 $ 93.6 $ 92.0 $ 90.4 $ 70.4Adjusted EBITDA as a % of sales 5.9% 6.9% 7.2% 7.5% 7.0% 7.8% 7.8 % 7.5 % 6.5 %


Electrical & Electronic Solutions


$ millions


1Q 18 2Q 18 3Q 18 4Q 18 1Q 19 2Q 19 3Q 19 4Q 19 1Q 20

Net income $31.4 $35.6 $34.1 $31.2 $29.1 $38.2 $ 35.3 $ 36.9 $ 28.7Interest expense — — — — — — — — —Income taxes — — — — — — — — —Depreciation 0.5 0.7 0.6 0.6 1.8 1.8 1.8 1.9 1.6Amortization of intangible assets 2.2 2.1 1.4 1.3 1.4 1.3 1.4 1.3 1.4EBITDA $ 34.1 $ 38.4 $ 36.1 $ 33.1 $ 32.3 $ 41.3 $ 38.5 $ 40.1 $ 31.7EBITDA as a % of sales 6.0% 6.3% 6.0% 5.8% 5.7% 6.8% 6.6 % 6.7 % 5.8 %

EBITDA $ 34.1 $ 38.4 $ 36.1 $ 33.1 $ 32.3 $ 41.3 $ 38.5 $ 40.1 $ 31.7Stock-based compensation 0.4 0.4 0.3 0.3 0.3 0.5 0.4 — 0.4Restructuring charge — 1.3 — — — — 0.5 0.5 —U.K. facility relocation costs 0.2 0.3 0.1 0.2 — — — — —Adjusted EBITDA $ 34.7 $ 40.4 $ 36.5 $ 33.6 $ 32.6 $ 41.8 $ 39.4 $ 40.6 $ 32.1Adjusted EBITDA as a % of sales 6.1% 6.7% 6.1% 5.9% 5.8% 6.9% 6.8 % 6.8 % 5.9 %


Utility Power Solutions


$ millionsEBITDA and Adjusted EBITDA

1Q 18 2Q 18 3Q 18 4Q 18 1Q 19 2Q 19 3Q 19 4Q 19 1Q 20

Net income $16.4 $17.9 $19.9 $21.2 $18.5 $23.1 $ 23.8 $ 18.2 $ 22.0Interest expense — — — — — — — — —Income taxes — — — — — — — — —Depreciation 0.9 0.9 1.1 0.7 0.9 0.9 1.0 0.9 1.1Amortization of intangible assets 3.3 3.4 3.2 3.4 3.3 3.3 3.3 3.3 3.3EBITDA $ 20.6 $ 22.2 $ 24.2 $ 25.3 $ 22.7 $ 27.3 $ 28.1 $ 22.4 $ 26.4EBITDA as a % of sales 5.1% 5.1% 5.4% 5.9% 5.3% 6.0% 6.1% 5.0% 5.9%

EBITDA $ 20.6 $ 22.2 $ 24.2 $ 25.3 $ 22.7 $ 27.3 $ 28.1 $ 22.4 $ 26.4Stock-based compensation 0.3 0.2 (0.1) 0.2 0.1 0.1 0.1 0.3 0.2Restructuring charge — 0.7 — — (0.1) — — — —Adjusted EBITDA $ 20.9 $ 23.1 $ 24.1 $ 25.5 $ 22.7 $ 27.4 $ 28.2 $ 22.7 $ 26.6Adjusted EBITDA as a % of sales 5.2% 5.3% 5.4% 5.9% 5.3% 6.0% 6.1 % 5.0 % 5.9 %


Supplemental Information

Billing Days and Average Copper Prices

Billing Days

Q1 Q2 Q3 Q4 FY

2017 64 64 63 62 2532018 64 64 63 62 2532019 64 64 63 66 * 2572020 65 63 64 61 253

Average Copper Prices

Q1 Q2 Q3 Q4 FY

2017 $2.65 $2.58 $2.89 $3.10 $2.802018 $3.14 $3.09 $2.73 $2.75 $2.932019 $2.81 $2.78 $2.62 $2.68 $2.722020 $2.54

Increase (Decrease) $(0.27)% Increase (Decrease) (10)%

*We estimate that, due to the timing of the holidays, the effective selling days in Q4 2019 were approximately 64 1/2 days

1q 2020 highlights and operating resultss21.q4cdn.com/.../2020/q1/...presentation-slides.pdf7.0%...

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