Slide 1: 2nd Quarter 2023 Earnings Results
2ND QUARTER 2023 EARNINGS RESULTS August 2023
Slide 2: Forward-Looking Statements and Non-GAAP Financial Measures
Forward-Looking Statements and Non-GAAP Financial Measures Forward-Looking Statements Our commentary and responses to your questions may contain forward-looking statements, including our outlook for the third quarter, full-year 2023, and adjusted EPS for 2025. Forward-looking statements include proj
Slide 3: Earnings Results
2nd QUARTER 2023 EARNINGS RESULTS 3
Slide 4: Record Revenue and EPS with Expanding Margins
Record Revenue and EPS with Expanding Margins Q2 2023 Key Messages +5% Organic Revenue Growth(2) Delivered another strong quarter with record revenue and EPS(1) • Record quarterly revenue of $692M, up 4% YoY (organic growth up 5% YoY) • Record quarterly EPS of $1.91, up 19% YoY • Gross Margins impro
Slide 5: Belden is the only provider able to meet client needs at every touchpoint
Belden is the only provider able to meet client needs at every touchpoint in the digitization journey COLLECT CONTEXTUALIZE DELIVER Data Data Data Data Sources Destinations Acquisition Transmission Orchestration Management Sensors Network infrastructure and solutions Control Motors Monitoring Camera
Slide 6: Belden Horizon brings data together in one place
With Belden Horizon™ clients can: Simplify Manage Scale OT device application connections remotely and securely industrial edge deployments management using a single, with on-demand Secure Remote with the ability to onboard, monitor, Belden Horizon modern, cloud interface Access and always-on Persis
Slide 7: Key Account Win in Automated Warehouse Market
Key Account Win in Automated Warehouse Market Order Award Summary Validation of Solution Transformation Largest Solution Highlights Award To Date Duration over 3 Years • Belden solutions received its largest solutions order to date, further validating our solutions Material Handling go-to-market str
Slide 8: Continued Expansion in Volatile Market Conditions
Continued Expansion in Volatile Market Conditions Q2 2023 - Financial Results Overview Revenue up 4% YoY with strength $ Millions Q2 2023(1) Q2 2022(1) YoY in solution sales within Industrial Automation Solutions Revenue $692.2 $666.6 +4% Gross Profit $263.7 $229.0 +15% Organic Revenue Growth 5%(4)
Slide 9: Both Segments Delivered Positive Revenue & EBITDA Growth
Both Segments Delivered Positive Revenue & EBITDA Growth Q2 2023 Segment Results Industrial Automation Solutions Segment Enterprise Solutions Segment Robust secular growth opportunities driven by customers shifting Multi-year investment cycle in Broadband, combined with growing to business outcomes
Slide 10: Healthy Free Cash Flow Generation with a Strong Balance Sheet
Healthy Free Cash Flow Generation with a Strong Balance Sheet Q2 2023 Balance Sheet and Cash Flow Highlights Cash and Cash Equivalent Net Leverage(1) TTM Free Cash Flow(2) Capital deployed in M&A and share Stable leverage as the business TTM FCF increased due to strong repurchases combined with seas
Slide 11: Increased Full-Year 2023 EPS Guidance
Increased Full-Year 2023 EPS Guidance Q3 and Full-Year 2023 Outlook, as of August 3, 2023 Full-Year 2023 Outlook 3Q 2023 Outlook Previous Updated Total Revenue $2.710B - $2.760B $2.695B - $2.725B $675M - $690M Organic Revenue Growth 3% - 5% 3% - 4% (1%) to +1% GAAP EPS $5.71 - $6.01 $5.95 - $6.15 $1
Slide 12: Belden - Value Creation Framework
Belden - Value Creation Framework GDP+ ~30% ORGANIC INCREMENTAL REVENUE GROWTH EBITDA MARGINS $8.00+ DISCIPLINED EPS by 2025 ROBUST FREE CASH CAPITAL ALLOCATION FLOW GENERATION net leverage allows cumulative over ~1.5x for substantial capital ~$1B next 4 years deployment over next 4 years (2022 – 20
Slide 13: Corporate Overview
CORPORATE OVERVIEW BELDEN INC. NYSE : BDC 13
Slide 14: Belden At-a-Glance
Belden At-a-Glance Belden delivers the infrastructure that makes 120+ Years the digital journey simpler, smarter and secure. in business Adjusted Adjusted Free 2Q-2023 Revenue EBITDA EPS Cash Flow Associates TTM Results (1) $2,664M $468M $7.11 $280M ~8,000 2Q-2023 TTM Segment Results Sales by Region
Slide 15: Key Growth Drivers
Key Growth Drivers Industrial Automation Smart Buildings Broadband Investments in automation, Increasing digitization driving Ever-increasing industry 4.0, digital transformation a technology refresh cycle bandwidth usage High cost of labor, 5G & IoT increasing connectivity Network upgrades and rura
Slide 16: Belden's solution strategy simplifies digital transformation for customers
Belden’s solution strategy simplifies We help We provide We enable the digital transformation for our Optimize Productivity Safety customers by focusing on results Operations Enhancements Improvements Driven by unmatched product breadth and application expertise, Belden improves key KPIs for our cus
Slide 17: Appendix
APPENDIX BELDEN
Slide 18: Statement of Operations
Statement of Operations Unaudited Three Months Ended Six Months Ended July 2, 2023 July 3, 2022 July 2, 2023 July 3, 2022 (In thousands, except per share data) Revenues $ 692,245 $ 666,551 $ 1,334,034 $ 1,276,922 Cost of sales (430,917) (444,246) (826,601) (845,757) Gross profit 261,328 222,305 507,
Slide 19: Operating Segment Information
Operating Segment Information Unaudited Enterprise Solutions Industrial Automation Solutions Total Segments (In thousands, except percentages) For the three months ended July 2, 2023 Segment Revenues $ 312,529 $ 379,716 $ 692,245 Segment EBITDA 43,956 78,631 122,587 Segment EBITDA margin 14.1 % 20.7
Slide 20: Operating Segment Reconciliation to Consolidated Results
Operating Segment Reconciliation to Consolidated Results Unaudited Three Months Ended Six Months Ended July 2, 2023 July 3, 2022 July 2, 2023 July 3, 2022 (In thousands) Total Segment and Consolidated Revenues $ 692,245 $ 666,551 $ 1,334,034 $ 1,276,922 Total Segment EBITDA $ 122,587 $ 109,947 $ 233
Slide 21: Balance Sheet
Balance Sheet Unaudited July 2, 2023 December 31, 2022 (Unaudited) (In thousands) ASSETS Current assets: Cash and cash equivalents $ 514,767 $ 687,676 Receivables, net 509,801 440,102 Inventories, net 345,427 341,563 Other current assets 66,525 66,866 Total current assets 1,436,520 1,536,207 Propert
Slide 22: Cash Flow Statement
Cash Flow Statement Unaudited Six Months Ended July 2, 2023 July 3, 2022 (In thousands) Cash flows from operating activities: Net income $ 131,720 $ 94,486 Adjustments to reconcile net income to cash flows from operating activities: Depreciation and amortization 49,044 42,686 Share-based compensatio
Slide 23: Reconciliation of Non-GAAP Measures
Reconciliation of Non-GAAP Measures In addition to reporting financial results in accordance with accounting principles generally Unaudited accepted in the United States, we provide non-GAAP operating results adjusted for certain items, including: asset impairments; accelerated depreciation expense
Slide 24: Reconciliation of Non-GAAP Measures (continued)
Reconciliation of Non-GAAP Measures (continued) In addition to reporting financial results in accordance with accounting principles generally Unaudited accepted in the United States, we provide non-GAAP operating results adjusted for certain items, including: asset impairments; accelerated depreciat
Slide 25: Reconciliation of Non-GAAP Measures (continued)
Reconciliation of Non-GAAP Measures (continued) In addition to reporting financial results in accordance with accounting principles generally Unaudited accepted in the United States, we provide non-GAAP operating results adjusted for certain items, including: asset impairments; accelerated depreciat
Slide 26: Free Cash Flow GAAP to Non-GAAP Reconciliation
Free Cash Flow GAAP to Non-GAAP Reconciliation Unaudited We define free cash flow, which is a non-GAAP financial measure, as net cash from operating activities adjusted for capital expenditures net of the proceeds from the disposal of tangible assets. We Three Months Ended Six Months Ended believe f
Slide 27: Reconciliation of Non-GAAP Measures
Reconciliation of Non-GAAP Measures Our guidance is based upon information currently available regarding events and conditions that will impact our future operating results. In particular, our results are subject to the factors listed under "Forward- Looking Statements" in this release. In addition,
Slide 28: Thank You
Thank You Aaron Reddington CFA Vice President Investor Relations investor.relations@belden.com 28