Earnings Release Conference Calls2.q4cdn.com/591876415/files/doc_presentations/2015/1Q15...Cable and Connectivity Monitoring Systems Automation Playout & Branding Systems Industrial

© 2015 Belden Inc. | belden.com | @BeldenInc PROPRIETARY AND CONFIDENTIAL. COPYING RESTRICTED. FOR INTERNAL USE ONLY.

April 30, 2015

1st Quarter 2015 Earnings Release Conference Call

© 2015 Belden Inc. | belden.com | @BeldenInc 2

Our commentary and responses to your questions may contain forward-looking statements, including our outlook for the 2015 second quarter and full year. Forward-looking statements include statements regarding future financial performance (including revenues, expenses, earnings, margins, cash flows, dividends, capital expenditures and financial condition), plans and objectives and related assumptions. Belden undertakes no obligation to update any such statements to reflect later developments, except as required by law. Information on factors that could cause actual results to vary materially from those discussed today is available in the press release announcing 2015 first quarter results, our most recent Annual Report on Form 10-K as filed with the SEC on February 23, 2015 (including those discussed under “Risk Factors” in Part I, Item 1A and in “Management’s Discussion and Analysis of Financial Condition and Results of Operations” in Part II, Item 7), and our subsequent filings with the Securities and Exchange Commission.

Safe Harbor Statement

Non-GAAP Measures On this call we will discuss some non-GAAP measures (denoted by footnote) in discussing Belden’s performance, and the reconciliation of those measures to the most comparable GAAP measures is contained within this presentation or available at our website www.Belden.com under Investor Relations.

http://www.belden.com/


• Grew revenues by 16.6% year-over-year; • Achieved record gross profit margins of 40.6%, increasing 450

basis points from 36.1% in the year-ago period; • Expanded EBITDA margins to 15.5%, increasing 40 basis points

from 15.1% in the year-ago period; • Generated income from continuing operations per diluted share of

$1.00, up 25% over last year’s $0.80; and • Completed the acquisition of Tripwire, a leading global provider of

advanced threat, security and compliance solutions.

Q1 2015 Highlights

Adjusted results. See Appendix for reconciliation to comparable GAAP results.


Revenue $37.1M EBITDA Margin 26.7% Operating Profit Margin 24.1%




1st Quarter Segment Overview Revenue $213.6M EBITDA Margin 13.7% Operating Profit Margin 11.8%

Broadcast

Enterprise Connectivity

Industrial Connectivity

Industrial IT

Network Security

Camera Mounted Fiber Solutions

Signal Processing & Routing

Precision A/V Cable and Connectivity

Monitoring Systems

Automation Playout & Branding Systems

Industrial and I/O Connectors

Industrial Cables

IP/Networking Cables

I/O Modules/ Active

Distribution Boxes

Customer-Specific Wiring

Copper and Fiber Connectivity

Racks and Enclosures

Ethernet, Fiber Optic and Coaxial

Cables, Security & Routing Wireless Switches Connectivity

Vulnerability Assessment Targeted Attack Detection Threat Analytics



Q1 2015 Q4 2014 Q1 2014

Revenue $569.5M $613.7M $488.3M

Gross profit $231.0M $229.4M $176.1M

Gross profit percentage 40.6% 37.4% 36.1%

EBITDA $88.5M $99.8M $73.5M

EBITDA percentage 15.5% 16.3% 15.1%

Operating income $77.1M $88.8M $64.0M

Operating income percentage 13.5% 14.5% 13.1%

Income from continuing operations $43.3M $53.9M $35.4M

Income from continuing operations per diluted share $1.00 $1.24 $0.80

Q1 2015 Financial Summary



Segment Results

Broadcast Enterprise Connectivity

Industrial Connectivity Industrial IT Network

Security Consolidated

Q1 2015 Revenue $213.6M $104.7M $153.0M $61.1M $37.1M $569.5M

EBITDA(1) $29.2M $13.9M $24.2M $11.1M $9.9M $88.5M

EBITDA Margin 13.7% 13.3% 15.8% 18.2% 26.7% 15.5%

Q4 2014(2) Revenue $253.2M $110.8M $173.7M $76.0M $613.7M

EBITDA(1) $43.4M $14.5M $26.5M $15.9M $99.8M

EBITDA Margin 17.1 % 13.1% 15.2% 20.9% 16.3%

Q1 2014(2) Revenue $166.5M $108.4M $159.3M $54.1M $488.3M

EBITDA(1) $26.2M $14.2M $23.7M $9.6M $73.5M

EBITDA Margin 15.7% 13.1% 14.9% 17.7% 15.1%

Adjusted results. See Appendix for reconciliation to comparable GAAP results. (1) Consolidated results include income from our equity method investment. (2) Consolidated results for these periods exclude the impact of Security as Tripwire acquisition was completed in 2015


Q1 2015 Q1 2014

Cash and cash equivalents $166.7M $569.6M

Inventory turns 5.7x 5.7x

Days sales outstanding 63 days 57 days

Working capital turns 6.2x 6.0x

PP&E Turns 6.9x 6.5x

Total debt principal amount $1.90B $1.37B

Q1 2015 Balance Sheet Highlights


Cash Flow Highlights

(1) Capital expenditures, net of proceeds from the disposal of tangible assets. See Appendix for reconciliation. (2) Free cash flow is not a term defined by generally accepted accounting principles (GAAP) and our definition may or may not be used consistently with other companies that define

this term. See Appendix for reconciliation to comparable GAAP results. (3) Net of cash acquired.

Q1 2015 Q1 2014

Cash flows from operating activities $ (48.2)M $ (20.4)M

Less: Net capital expenditures(1) $ 15.5M $ 10.3M

Free cash flow (2) $ (63.7)M $ (30.8)M

Cash used to acquire businesses(3) $ 695.3M $ 4.7M

Share repurchases and dividends $ 2.1M $ 2.2M


Q2 2015(1)

• Revenue of $605 - $625 million

• Adjusted income from continuing operations per diluted share of $1.15 - $1.25

Outlook

2015 Full Year(1)

• Revenue of $2.450 - $2.500 billion

• Adjusted income from continuing operations per diluted share of $5.28 - $5.48

(1) Adjusted outlook. See Appendix for reconciliation to comparable GAAP outlook.


Appendix


Statements of Operations and Comprehensive Income


Balance Sheet


Cash Flow Statement


Free Cash Flow GAAP to Non-GAAP Reconciliation


GAAP to Non-GAAP Reconciliation - Consolidated


GAAP to Non-GAAP Reconciliation - Consolidated


GAAP to Non-GAAP Reconciliation – Q1 2015 Segments






Reconciliation of Non-GAAP Measures 2015 Revenue and Earnings Guidance

Documents

Earnings Release Conference Calls2.q4cdn.com/591876415/files/doc_presentations/2015/1Q15...Cable and Connectivity Monitoring Systems Automation Playout & Branding Systems Industrial