Anixter IR Presentation 6s21.q4cdn.com/.../2019/06/Anixter-IR-Presentation-Q2-'19.pdf1(7:25. 6(&85,7< 62/87,216 3URGXFWV *URZWK 2SSRUWXQLWLHV &RPSOH[ 6HUYLFHV 3URMHFWV 3URJUDPV (PHUJLQJ7HFKQRORJLHV

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

INVESTOR PRESENTATION2ND QUARTER 2019

662

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 of1995. 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 butare not limited to general economic conditions, the level of customer demand particularly for capital projects in the markets we serve, changes in supplier relationships or in supplier salesstrategies or financial viability, risks associated with the sale of nonconforming products and services, political, economic or currency risks related to foreign operations, inventoryobsolescence, copper price fluctuations, customer viability, risks associated with accounts receivable, risks associated with pension expense and funding, the impact of regulation andregulatory, investigative and legal proceedings and legal compliance risks, information security risks, disruption or failure of information systems, disruptions to logistics capability or supplychain, risks associated with substantial debt and restrictions contained in financial and operating covenants in our debt agreements, the impact and the uncertainty concerning the timingand terms of the withdrawal by the United Kingdom from the European Union, unanticipated changes in our tax provision and tax liabilities related to the enactment of the Tax Cuts andJobs Act, and risks associated with integration of acquired companies, including, but not limited to, the risk that the acquisitions may not provide us with the synergies or other benefits thatwere 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 anyforward 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 to betterunderstand and evaluate our performance period over period and to analyze the underlying trends of our business. We have also excluded amortization of intangible assets associatedwith 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 leverage providerelevant 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 and businesssegment performance. Adjusted operating income provides an understanding of the results from the primary operations of our business by excluding the effects of certain items that do notreflect the ordinary earnings of our operations. We use adjusted operating income to evaluate our period-over-period operating performance because we believe this provides a morecomparable measure of our continuing business excluding certain items that are not reflective of expected ongoing operations. This measure may be useful to an investor in evaluating theunderlying performance of our business. EBITDA provides us with an understanding of earnings before the impact of investing and financing charges and income taxes. Adjusted EBITDAfurther excludes the effects of foreign exchange and other non-cash stock-based compensation, and certain items that do not reflect the ordinary earnings of our operations and that arealso excluded for purposes of calculating adjusted net income, adjusted earnings per share and adjusted operating income. EBITDA and Adjusted EBITDA are used by our managementfor various purposes including as measures of performance of our operating entities and as a basis for strategic planning and forecasting. Adjusted EBITDA and Adjusted EBITDA leveragemay be useful to an investor because this measure is widely used to evaluate a company’s operating performance without regard to items excluded from the calculation 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 by which 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 in accordance 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-GAAP financialmeasures as reported by us may not be comparable to similarly titled amounts reported by other companies. The non-GAAP financial measures should be considered in conjunction withthe Condensed Consolidated Financial Statements, including the related notes, and Management’s Discussion and Analysis of Financial Condition and Results of Operations included inthis release. Management does not use these non-GAAP financial measures for any purpose other than the reasons stated above.

© 2019 Anixter Inc.

TABLE OF CONTENTS

Invest in Anixter

Key Priorities & Long-term Financial Goals

Business Overview

Innovation & Business Transformation

Financial Profile

Invest in Anixter

12345666

3© 2019 Anixter Inc.

Build. Connect. Power. Protect. Services. Worldwide

INVEST IN

ANIXTER

1. Positioned for sustainable growth

• Leading positions in large, growing, fragmented businesses

• Diverse solutions across converging businesses

• Balanced sector approach provides growth opportunities while minimizing exposure and risk

2. Differentiators provide competitive advantage and barriers to entry

• Global capabilities with local presence

• Technical expertise

• Customized and scalable supply chain solutions

3. Culture of ethics and integrity

• The Blue Book guides our philosophy, culture and business style

4. Financial strength and capital efficiency

• Strong free cash flow generation through the economic cycle

5. Innovation and Business Transformation

• Will drive strong financial performance and shareholder value creation

INVEST IN ANIXTER



KEY

PRIORITIES &

LONG-TERM

FINANCIAL

GOALS

KEY PRIORITIES FOR ANIXTER

Our Focus On The Customer Will Drive Improved Results While Enabling Value Creation

Above-Market Growth

Digital innovation will improve customer experience

Leverage customer access strategy

Pivot and shift to growth markets

Increase global and complex services and revenue streams

Gross Margin Improvement

Relentless focus and training

Price optimization tools

Maximize vendor rebates

Increase global and complex services and revenue streams

Increase Earnings & Cash Flow

Leverage fixed cost base

Tools/technology to drive sales productivity

Warehouse network optimization

Innovation and business transformation expected to have run

rate savings of $40 - $60 million


LONG – TERM FINANCIAL GOALS

2018 Long-termGoals

Organic Sales Growth 4.8% 3% - 5%

Adjusted EBITDA Margin 4.9% >6.0%

Adjusted EBITDA Leverage ~0.3x ~1.5x

Working Capital as a % of Sales 18.2% <18%

Debt / Adjusted EBITDA 3.0x 2.5x - 3.0x

Debt-to-total Capital 44.4% 45% - 50%


Anixter is a Services Company that Does Exceptional Distribution

Our Vision



BUSINESS

OVERVIEW

ANIXTER AT A GLANCE

2018 Key Metrics

Eletrical & Electronic Solutions

28%

Utility Power

Solutions20%

Network & Security Solutions

52%

2018 Sales by Segment

Sales $8.4B

Adjusted EBITDA $411M

Adjusted EBITDA margin 4.9%

Debt/Adjusted EBITDA 3.0x

Debt/Total Cap 44.4%

Fitch BBB-

Moody’s Ba3

S&P BB

NYSE Ticker AXE

North America

81%

EMEA8%

Emerging Markets

11%

2018 Sales by Geography



SALES OVERVIEW

1Q19 SEGMENT AND GEOGRAPHIC MIX

1Q19 Sales: $2.1 billion

YOY Sales Growth

GAAP Organic

Network and Security Solutions (NSS) 11.8% 10.7%

Electrical and Electronic Solutions (EES) (0.4)% 2.3%

Utility Power Solutions (UPS) 7.2% 7.9%

Anixter International 7.3% 7.7%

YOY Sales Growth

GAAP Organic

North America 5.3% 6.4%

EMEA (9.5)% (3.8)%

Emerging Markets 41.0% 27.6%

Anixter International 7.3% 7.7%

NETWORK & SECURITY SOLUTIONS (NSS) AT A GLANCE

Network Infrastructure

55%

Security Solutions

45%

Product Mix

North America

EMEA

Emerging Markets

Geographic Mix

2018 Q1 2019

Sales $4.3B $1.1B

Organic Sales Growth 3.9% 10.7%

Adjusted EBITDA $299.7M $78.0M

Adjusted EBITDA Margin

6.9% 7.0%13


14

NETWORK & SECURITY SOLUTIONS

Products Growth Opportunities

Complex ServicesProjects

Programs

Emerging Technologies5GIoT

Smart Buildings

Smart Cities

Security and Professional A/V

Wireless

Inner Range Software

Data Center

Access Control

Video Surveillance


Fire and Life Safety

Wireless


Security Solutions

Our products are critical parts of a connected, controlled, and powered infrastructure that allow Anixter to pivot and shift into higher growth opportunities


ELECTRICAL & ELECTRONIC SOLUTIONS (EES)AT A GLANCE

Commercial & Industrial~60 - 65%

OEM~35 - 40%

Product Mix

North America

EMEA

Emerging Markets

Geographic Mix

2018 Q1 2019

Sales $2.3B $566M




6.2% 5.8%


16

ELECTRICAL & ELECTRONIC SOLUTIONS



Programs

Smart Factories

IoT and Industry 4.0

Industrial Automation

Public Transit

Renewable Energy

Data Centers

Oil, Gas, Petrochemical

Automotive Wire and Cable

Control Cable

Medium-Voltage

Power Cable

Contractor Solutions

Electrical Supplies

OEM

Commercial & Industrial

Switchgear



UTILITY POWER SOLUTIONS (UPS)AT A GLANCE

Investor Owned Utilities~55%

Public Power~45%

Product Mix

North America

Geographic Mix

2018 Q1 2019Sales $1.7B $430M




5.5% 5.3%


18

UTILITY POWER SOLUTIONS



Programs

Electrical Grid Upgrade

Smart Grids

Smart Meters

Storm-Hardening Efforts

Natural DisastersHurricane rebuildWildfire rebuildStorm response

Pole Line

Gears Controls and Equipment

Fiber to the Home

Cybersecurity Wire and Cable Lighting

Video Surveillance


Public Power

Investor Owned Utilities

MRO



($0.9)

OUR STRATEGIC ACTIONS ADDED $1.8 BILLION TO OUR SALES RUN RATE

2017

$6.9

$0.6

$0.1

$2.0

2018CSD

Inner RangeAtlas Gentech

$6.2

2015 Net

impact

2014 Tri-Ed

2015 Fasteners

2015 Power

Solutions

2013

$0.2

$7.7

2016

Proforma Sales Bridge 2013 - 2018$Billions

+$2.2

2015

$7.6

($0.1)

$7.9

$0.3

$8.4

$0.4

$0.1

Acquisition Revenues

Organic Growth

Divestiture

STRATEGIC ACQUISITIONS2014 – 2018

Power Solutions(Carve out)

Purchase Date Q3 2014 Q4 2015 Q2 2018

Purchase Price $420M $825M $151M

TTM Sales* $570M $1,900M $114M

Adjusted TTM EBITDA* $36M $79M $20M

EBITDA Synergies $15M $25M None disclosed publicly

New Products IntrusionFire & Life Safety Access Control

LV/HV – Switch Gear Transformers

LightingElectrical Bulks

IntrusionAccess Control

New Customers Security Dealers Commercial Construction, Utility Market (IOU &

Public Power)

Security Dealers

Other Benefits Branch Network Branch Network Software/Product Development

20

*Tri-Ed trailing twelve months ended June 4, 2014; HD Supply Power Solutions trailing twelve months from HD Supply Inc. SEC filings; CSD, Inner Range and Atlas Gentech trailing twelve months ended November 30, 2017


STRONG, DIVERSE AND GLOBAL SUPPLIERS AND CUSTOMERS

Suppliers Customers


LEADING POSITIONS IN ATTRACTIVE BUSINESSES


(NSS)

Electrical & ElectronicSolutions

(EES)

Utility PowerSolutions

(UPS)

LeadingMarket Positions

Global #1 Global Top 3 North America #1

Total Addressable Market (TAM)

~$55B ~$450B ~$31B

Expected Market Growth CAGR

3 - 4% 2 - 3% ~4%

Markets are Highly Fragmented

~7% Share <1% Share <4% Share



COMPETITIVE ADVANTAGES AND BARRIERS TO ENTRY


Electrical & Electronic Solutions

Utility PowerSolutions

Global Capabilities with Local Presence

Customized and Scalable Supply Chain Solutions

Technical Expertise


CORE TECHNOLOGIES

Network Infrastructure Data Centers | Cloud Physical Security Professional AV

Wireless LightingIndustrial Networking & Controls

Power

Wire & Cable Automation FTTX Internet of Things (IoT)

Smart Environments Edge Computing OT Cybersecurity

REDUCING RISKS AND COMPLEXITIES THROUGH OUR SERVICES

Installation Enhancement

Services

Project Deployment

Services

Supply Chain

Programs

Enhancing products through

services to reduce the total cost

of installation for our customers

Saving time, reducing costs,

mitigating risk and increasing

efficiencies through services for

multifaceted projects

Optimizing operational

efficiencies through an

integrated supply chain model


UNMATCHED GLOBAL CAPABILITIES WITH LOCAL PRESENCE

3,600+Technical Sales Specialists, Multi-Level Technical Support

130,000+Customers$1.0 Billion+ Inventory

600,000+Products~50 Countries

35+ Currencies

20+ Languages

Approximately 316Warehouses and Branches Worldwide


EXAMPLES OF OUR SERVICES THAT HELP LOWER COST, COMPLEXITY AND RISKIN OUR CUSTOMERS’ SUPPLY CHAINS

Source-proven, quality-controlled products

Manage manufacturer relationships and contracts

Access competitive pricing and product standardization

Reduce non-contract buying

Inventory management software

Decrease write-offs from scrap, overruns and

obsolescence

Reduce product shortages

Streamline warehouse investment

Provision inventory

IP addressing

Cable bundling

Cable labeling

Cutting to length

Kitting and custom packaging

Pre-assembly/sub-assembly

Last- mile delivery

Import / export documentation

preparation

B2B integration (EDI, JIT, ERP)

E-procurement Punchout catalog

Anixter.com (B2B)

eAnixter.com (contract)

Electronic invoices and payments

Automated order confirmation and shipment process

Sourcing Inventory Management

Product Enhancement and

Packaging

Global Logistics

E-commerce


INNOVATION AND BUSINESS TRANSFORMATION

Gross Margin Improvement Funds Innovation and Business Transformation while Enabling Operating Expense Leverage

• Digital Innovation

– Driven by focus on customer experience

– Best-in-class digital tools will make doing business with Anixter easier and will support growth and innovation in the business

• Business Transformation

– Streamline and standardize global processes

– Enabled by Oracle Cloud ERP

• De-risking

– Implementation plan designed and phased to minimize disruption

– CFO and CIO are the co-executive sponsors

– Experienced managers leading the project • Over 150 years of combined Anixter experience between Global Process Owners

– Current experience with Oracle database systems


DIGITAL INNOVATION DRIVES ACCELERATED REVENUE GROWTH

Inside salesrepresentative

B2B integration(EDI, JIT, ERP)

Electronic invoices and payments

Consolidated statements

Customer-brandede-commerce site with

contract pricing

Branchlocations

Automated order confirmation and

shipment notification

eProcurementpunchout catalog or custom catalog

Anixter.com (B2B)eAnixter.com (contract)

Making it easier and quicker for our customers to do business with us. Anywhere, any time, any way.


GLOBAL BUSINESS PROCESS TRANSFORMATION

Transformation Outcomes

Enhance Reporting and Analytics

Increase Productivity Through Optimized Operating Model

Increase Speed to Market

Improve Customer Integration

Optimize Supply Chain

Innovation and Business Transformation

Reduce Operational Cost

Global multi-year business process transformation plan considering:

•Strategic Business Drivers

•Geographic Regions

•Business Process Cycle

•Business Segments

Standardize Global Business Process

Create a Single Global Platform for Growth


OUR JOURNEY TO ORACLE CLOUD ERP

2012 – 2018: Enhanced digital capabilities

2014 – 2015: Strategic M&A activity

– Created numerous operating systems, customer-facing platforms and back-office processes

2018: Evaluation and preparation

– Completed business integration of recent acquisitions

– Focused on global processes, staffing global business foundational design teams with internal and external expertise

– Selected Oracle cloud-based platform

2019: Global Processes

– Streamlining and standardizing global business processes which will result in global business process foundational design

– Developing implementation plan for the first wave conversion

2020 – 2023: Implementation

– Phased implementation plan to mitigate risk

– Initial phase of implementation in one US-based division

– Net benefits expected by second half of 2021

– Estimate net long-term run-rate savings of $40 - $60 million when fully implemented

– Investment will be funded through gross margin improvement



FINANCIAL

PROFILE

COUNTER-CYCLICAL FREE CASH FLOW PROVIDES FINANCIAL FLEXIBILITY

Generate Strong Free Cash Flow Throughout the Economic Cycle

Free cash flow: Defined as net cash provided by operating activities less capital expenditures. Free cash flow is not restated for acquisitions and divestitures

($ in millions)


0%

STRATEGIC LEVERAGE TARGETS

Target range:2.5x - 3.0x

Target range:45% - 50%


CONSERVATIVE FINANCIAL POLICY WITH A PRUDENT APPROACH TO CAPITAL ALLOCATION

Capital Allocation Priorities are Organic Growth, M&A, Debt Reduction and Opportunistic Return to Shareholders

• Strong free cash flow allows Anixter to maintain a conservative leverage profile and ample liquidity throughout the business cycle

• Periods of acquisitions are immediately followed up by periods of debt reduction

$32 $22 $20 $26 $34 $32 $40 $27$33

$41 $42

$105

$35

$41

$108

$59

$111 $151

$166

$180

$36 $55

$418$823

$5

$150$272

$82$152

$267 $133

$1

0%

20%

40%

60%

80%

100%

2008 2009 2010 2011 2012 2013 2014 2015 2016 2017 2018

CapEx Share Repurchases Total Dividends Acquisitions Debt Reduction Operating Cash Flow


DEBT MATURITY PROFILE

36

Total availability across all credit facilities was $484.1 million as of March 29, 2019


2019 FINANCIAL GOALS

Above market sales growth 4% - 6.5% organic growth

Increase gross margin 20 - 40 bps improvement

Improve profitability1.25x - 1.50x adjusted EBITDA leverage

~5.0% adjusted EBITDA margin

Generate Strong Cash Flow

Operating Cash Flow $150 million - $175 million

Capex $55 - $60 million

Free cash flow $95 - $115 million

Maintain strong balance sheet

Working capital ~18% of sales

Debt-to-Adjusted EBITDA: 2.5x - 3.0x

Debt-to-Capital: 45% - 50%


2019 SEGMENT ADJUSTED EBITDA GOALS

2018 Actuals 2019 Goals

NSS Adjusted EBITDA 6.9% 7.0 - 7.5%

EES Adjusted EBITDA 6.2% 6.0 - 6.5 %

UPS Adjusted EBITDA 5.5% 5.5 - 6.0%



INVEST IN

ANIXTER

1. Positioned for sustainable growth

• Leading positions in large, growing, fragmented businesses

• Diverse solutions across converging businesses

• Balanced sector approach provides growth opportunities while minimizing exposure and risk

2. Differentiators provide competitive advantage and barriers to entry

• Global capabilities with local presence

• Technical expertise

• Customized and scalable supply chain solutions

3. Culture of ethics and integrity

• The Blue Book guides our philosophy, culture and business style

4. Financial strength and capital efficiency

• Strong free cash flow generation through the economic cycle

5. Innovation and Business Transformation

• Will drive strong financial performance and shareholder value creation

INVEST IN ANIXTER



THANK YOU

Documents

Anixter IR Presentation 6s21.q4cdn.com/.../2019/06/Anixter-IR-Presentation-Q2-'19.pdf1(7:25. 6(&85,7< 62/87,216 3URGXFWV *URZWK 2SSRUWXQLWLHV &RPSOH[ 6HUYLFHV 3URMHFWV 3URJUDPV (PHUJLQJ7HFKQRORJLHV