Wesco International, Inc. · NYSE:WCC
Wesco International — Investor Presentation (September 2023)
20 slides from Wesco International's investor presentation, Sep 6, 2023
Slide 1: Wesco International Investor Overview September 2023
Exhibit 99.1 Wesco International Investor Overview September 2023 © 2022 Wesco International 1
Slide 2: Forward-Looking Statements
Forward-Looking Statements All statements made herein that are not historical facts should be considered as “forward-looking statements” within the meaning of the Private Securities Litigation Reform Act of 1995. Such statements involve known and unknown risks, uncertainties and other factors that m
Slide 3: Wesco Overview
Sales Wesco Overview By Business Unit UBS Leading global provider of business-to-business 29% EES distribution, logistics services and supply chain solutions 41% Leading value proposition consisting of 1.5 million products, an expanding portfolio of services, and complete supply chain solutions CSS
Slide 4: Key Messages
Key Messages • Transformational combination of Wesco + Anixter exceeding expectations Created Fortune 200 Industry • Broadest portfolio in the industry and largest channel partner Leader with Global Scale for our key suppliers • Step function increase in cash generation and enterprise value creation
Slide 5: Third Quarter Update
Third Quarter Update Sales per workday tracking to expectations quarter-to-date 1 • Preliminary August QTD sales per workday up ~4% YOY • Book-to-bill at end of August >1.0 • No change to outlook; expect Q3 sales to be down sequentially versus Q2 Balanced capital allocation in the second half of 202
Slide 6: Value Creation Engine
Value Creation Engine Five Components of Our Growth Compounding Enterprise Upsized Cash Flow Supports Strategic Positioned In the Right End-Markets 1• Three leading global business units 5 Objectives • Exposure to attractive secular trends • Accelerating growth and margin expansion • Increasing infr
Slide 7: Value Creation of Wesco
Value Creation of Wesco More Resilient and Ideally Positioned for Secular Growth Trends 1 2022 Other • Mix-shifted into higher-growth, higher 8% Utility 2019 Security margin end-markets (Pre-Merger) 22% 9% • Created three balanced SBUs with diverse end-market exposure CIG OEM • Positioned the combin
Slide 8: Attractive Long-Term Growth Drivers
Attractive Long-Term Growth Drivers Increasing Public Wesco’s Uniquely Secular Growth Trends Sector Investment Strong Position a • Leading Portfolio of Products, U.S. Infrastructure Services, and Solutions Bills • Leading Positions in All Business Electrification Automation and IoT Rural Digital Uni
Slide 9: Wesco Data Center End-to-End Solutions
Wesco Data Center End-to-End Solutions Edge and Micro MTDC and Hyperscale Enterprise Data Centers Colocation Facilities Environments Supporting All Data Center Environments Expanded product End-to-end data center Increased global services, Extensive supplier and Focused expertise in white and soluti
Slide 10: Secular Trends + Share Growth Leads to Market Outperformance
Secular Trends + Share Growth Leads to Market Outperformance Base Market 1% to 2% 1% to 2% MSD+ Organic + + = Growth Secular Trends Share Gain Growth Increasing Public Sector Investment Strong Secular Growth Trends Wesco’s Uniquely Strong Position • Electrification • $1.2T Infrastructure Investment
Slide 11: Transformational Combination of Wesco + Anixter
Transformational Combination of Wesco + Anixter Future Wesco Wesco + Anixter 1 Adjusted EBITDA ($B) Generating the value of the combined and Adjusted EBITDA % enterprise 10%+ ~$1.8 $1.7 Wesco + Anixter • Leading Scale • Secular Trends (Pro Forma) 7.9% 8.1% • Cross Sell $1.2 • Share Gains Wesco • Mar
Slide 12: Our Digital Transformation
Our Digital Transformation Innovating Across Our Entire Technology Landscape Enterprise Systems Digital Services Front Office Mid Office Back Office Omnichannel Products and Platform Big Data Wesco’s Supplier/OEM/Product Customer and Industry Data Sets Data Sets Data Sets Data Office Digitally trans
Slide 13: Annual Value Creation Framework
Annual Value Creation Framework Long-term Growth Margin Expansion EBITDA Growth MSD+ ~14% 2x Sales Growth + = Incremental Organic Sustainable Cash Flow 1 EBITDA Margin Sales Growth Generation Over the Long Term Invest for Above Market Growth Increase Return of Capital to Shareholders Virtuous cycle
Slide 14: Step Function Increase in Cash Generation
Step Function Increase in Cash Generation 5-Year Operating Cash Flow 2.5x+ $3.5 – $4.5B Significant cash remaining after meeting dividend Drive Additional and investment needs Value Creation • Intend to redeem Preferred in 2025 ~40% • Additional investments, including M&A Capex ~$600-$700 million in
Slide 15: Why Invest
Why Invest • Fortune 200 B2B Supply Chain Solutions Leader in Wesco ‒ Global capabilities and leading scale ‒ Higher growth and higher margin end-markets ‒ Cross-sell combined with attractive long-term secular growth trends • Strategy Delivers Above-Market Growth ‒ Share gains ‒ Margin expansion ‒ D
Slide 16: Appendix
Appendix Ww wesco
Slide 17: EES Overview
Sales EES Overview By End-Market OEM Provider of electrical, MRO, safety, and automation 24% Construction solutions 40% Broad range of products and solutions primarily to the construction, industrial and OEM markets Uniquely positioned to provide the critical infrastructure expertise and solutions t
Slide 18: CSS Overview
Sales CSS Overview By End-Market Safety, A/V and Other 54% Deliver comprehensive solutions that provide 15% Network 24/7/365 connectivity Infrastructure Approximately 25% of sales from data centers and expected to grow double-digits in support of Security 31% increasing demands (including AI) World-
Slide 19: Integrated UBS Overview
Sales Integrated UBS Overview By End-Market Supply 12% Supply chain management, services and solutions Broadband for investor-owned utilities, public power 13% companies, and municipalities, as well as global service providers, wireless providers, broadband operators and the contractors that service
Slide 20: Adjusted EBITDA Reconciliation
Adjusted EBITDA Reconciliation Wesco International Twelve Months Ended December 31, Pro Forma Pro Forma ($ millions) 2017 2018 2019 2020 2021 2022 Operating income 319.0 352.4 713.7 461.3 8 01.8 1 ,438.1 Add: Depreciation and amortization 64.0 63.0 138.7 153.5 1 98.5 179.0 Less: Other (income) expen
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