Slide 1: Q4 FY 2014 and Full Year Financial Results Conference Call
Q4 FY 2014 AND FULL YEAR FINANCIAL RESULTS CONFERENCE CALL August 21, 2014 at 5:00 pm ET Exhibit 99.2
Slide 2: Safe Harbor
Safe Harbor This presentation may contain certain comments, which are “forward-looking” statements that involve plans, strategies, economic performance and trends, projections, expectations, or beliefs about future events and other statements that are not descriptions of historical facts, may be for
Slide 3: Highlights – Q4 FY14
Highlights – Q4 FY14 3 Fourth quarter 2014 net sales of $ 758 million, up 6% Y/Y, and adjusted EPS of $0.60*; both above our expected range Record sales quarter for Worldwide Barcode & Security, up 10% Y/Y Record sales quarters for North America POS & Barcode and Security Another solid sales
Slide 4: About Network1
About Network1 Description Leading value-added distributor of communications products and services in Brazil Established in 2004; HQ in Brazil (Sao Paulo) Key Vendors ~ 65 vendors and >8,000 customers Avaya, Checkpoint, Dell, Extreme, F5, HP, Juniper, Microsoft, Polycom, Riverbed, Schneider-
Slide 5: Announces Agreement to Acquire Network1
Announces Agreement to Acquire Network1 Great fit with existing Brazil operations; adds Communications and platform for Latin America business Aligned with leading vendors and growth technologies in attractive LATAM markets Transaction summary: Purchase Price All-cash share purchase Debt-f
Slide 6: About Imago
About Imago Description Europe’s leading value-added video and voice communications distributor Established in 1991; HQ in UK (Thatcham, Berkshire) Key Vendors Largest Polycom distributor in Europe Polycom, Barco, Samsung, NEC Key Talent/ Employees Ian Vickerage, Imago’s Managing Director,
Slide 7: Announces Letter of Intent to Acquire Imago
Announces Letter of Intent to Acquire Imago Next step in strategy to be the leading value-added distributor of video, voice and data solutions for resellers in Europe In 2013, Polycom named Imago its distributor of the year in EMEA Transaction summary: Purchase Price All-cash share purchase
Slide 8: Proposed Acquisitions – Strategic Focus Areas
Proposed Acquisitions – Strategic Focus Areas As a % of FY14 net sales of $2.9 billion * Pro Forma reflects proposed acquisitions using estimated FY14 net sales for Network1 and Imago translated into US$ average FX rates for FY14 ** Includes the United States and Canada. 64% Barcode & Security 75% N
Slide 9: Income Statement Highlights – Fourth Quarter
Q4 FY14 Q4 FY13 GAAP Non- GAAP* GAAP Non- GAAP* Y/Y Change (non-GAAP): Net sales $758.1 $758.1 $712.7 $712.7 6.4% increase Gross margin % (of net sales) 9.8% 9.8% 10.6% 10.6% 86 bp margin decrease SG&A expenses $49.0 $49.0 $46.8 $46.8 4.5% higher SG&A Legal recovery, net (15.5) -- -- -- Impair
Slide 10: Income Statement Highlights – Full Year
FY14 FY13 GAAP Non- GAAP* GAAP Non- GAAP* Y/Y Change (non-GAAP): Net sales $2,914 $2,914 $2,877 $2,877 1.3% increase Gross margin % (of net sales) 10.3% 10.3% 10.2% 10.2% 15 bp margin increase SG&A expenses $192.5 $192.5 $189.1 $189.1 1.8% higher SG&A Legal recovery, net (15.5) -- -- -- Impair
Slide 11: Q4 FY14 Sales Mix
Q4 FY14 Sales Mix Barcode & Security = Worldwide Barcode and Security Communications & Services = Worldwide Communications and Services As a % of Q4 FY14 net sales of $758.1 million * Includes the United States and Canada. 65% Barcode & Security 76% North America* 35% Communications & Services 11 By
Slide 12: WW Barcode & Security Net Sales – Q4
Q4 FY14 Q4 FY13 Net sales $490.5 $444.8 Gross profit $41.7 $43.3 Gross margin 8.5% 9.7% Operating income (loss) $12.8 $(1.7) Impairment charge – goodwill -- 15.1 Adjusted operating income $12.8 $13.5 Operating income % 2.6% 3.0% $445 $491 Q4 FY13 Q4 FY14 WW Barcode & Security Net Sales, $ in million
Slide 13: WW Barcode & Security Net Sales – Full Year
FY14 FY13 Net sales $1,873.2 $1.828.2 Gross profit $168.2 $168.1 Gross margin 9.0% 9.2% Operating income $51.5 $34.7 Impairment charge – goodwill -- 15.1 Adjusted operating income $51.5 $49.8 Operating income % 2.8% 2.7% $1,828 $1,873 FY13 FY14 WW Barcode & Security Net Sales, $ in millions Up 2.5%
Slide 14: WW Communications & Services Net Sales – Q4
Q4 FY14 Q4 FY13 Net sales $267.6 $267.9 Gross profit $32.3 $32.3 Gross margin 12.1% 12.1% Operating income $12.2 $9.5 Impairment charge – goodwill -- 5.4 Adjusted operating income $12.2 $14.9 Operating income % 4.5% 5.6% $268 $268 Q4 FY13 Q4 FY14 WW Communications & Services Net Sales, $ in millions
Slide 15: WW Communications & Services Net Sales – Full Year
FY14 FY13 Net sales $1,040.5 $1,048.7 Gross profit $132.9 $124.8 Gross margin 12.8% 11.9% Operating income $54.8 $44.6 Impairment charge – goodwill -- 5.4 Adjusted operating income $54.8 $50.0 Operating income % 5.3% 4.8% $1,049 $1,040 FY13 FY14 WW Communications & Services Net Sales, $ in millions
Slide 16: Q4 FY14 Key Measures
Q4 FY14 Q3 FY14 Q4 FY13 Return on invested capital (“ROIC”)* 13.9% 14.8% 17.2% Cash and cash equivalents (Q/E) $194.9 $183.6 $148.2 Uncleared checks (included in accounts payable) $84.2 $53.2 $65.9 Operating cash flow, trailing 12-months $47.7 $86.1 $129.4 Days sales outstanding in receivables 55 55
Slide 17: Q1 FY15 Outlook
Q1 FY15 Outlook* For the Quarter Ending September 30, 2014, excluding Acquisitions and acquisition costs: Net Sales Diluted Earnings Per Share Range from $750 million to $770 million Range midpoint: $760 million Range from $0.59 to $0.61 per share Range midpoint: $0.60 * Outlook as of August
Slide 18: WW Barcode & Security Highlights
WW Barcode & Security Highlights Net Sales, $ in millions Up 10.3% Excluding FX, Up 10.0% 18 * See Appendix for reconciliation of net sales excluding impact of foreign exchange to a GAAP measure. 65% of overall sales Record sales quarter for the segment Y/Y sales growth for all geographies, ex
Slide 19: WW Communications & Services Highlights
WW Communications & Services Highlights Net Sales, $ in millions Down (0.1)% Excluding FX, Down (0.4)% 19 * See Appendix for reconciliation of net sales excluding impact of foreign exchange to a GAAP measure. 35% of overall sales Increased 18% sequentially with Q/Q increases for all business uni
Slide 20: Appendix: Non-GAAP Financial Information
Appendix: Non-GAAP Financial Information 20 Q4 FY14 Q3 FY14 Q4 FY13 Return on invested capital (ROIC), annualized (a) 13.9% 14.8% 17.2% Reconciliation of Net Income (Loss) to EBITDA Net income (loss) - GAAP $ 27,105 $ 16,949 $ (13,315) Plus: Income taxes 13,774 9,031 (6,352) Plus: Interest expense 3
Slide 21: Appendix: Non-GAAP Financial Information – Year Ended June 30
Appendix: Non-GAAP Financial Information 21 Year Ended June 30. 2014 2013 Return on invested capital (ROIC), annualized (a) 15.4% 16.0% Reconciliation of Net Income (Loss) to EBITDA Net income - GAAP $ 81,789 $ 34,662 Plus: Income taxes 41,318 18,364 Plus: Interest expense 731 775 Plus: Depreciation
Slide 22: Appendix: Non-GAAP Financial Information – Net Sales Excluding FX
Appendix: Non-GAAP Financial Information 22 Worldwide Barcode & Security Net sales, excluding impact of foreign exchange (FX) - Y/Y Change: Q4 2014 net sales $ 490.5 Foreign exchange impact (1.1) Q4 2014 net sales, excluding FX impact $ 489.4 Q4 2013 sales $ 444.8 % Change 10.0% FY 2014 net sales $