Slide 1: 3rd Quarter 2023 Earnings Results
3RD QUARTER 2023 EARNINGS RESULTS November 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 fourth quarter, full-year 2023, and adjusted EPS for 2025. Forward-looking statements include pro
Slide 3: 3rd Quarter 2023 Earnings Results
3rd QUARTER 2023 EARNINGS RESULTS 3
Slide 4: Strong Margins Despite Challenging Environment
Strong Margins Despite Challenging Environment Q3 2023 Key Messages -9% Margins improved - however challenging environment impacted revenues Organic Revenue YoY(1) • Revenue of $627M, down 7% YoY (organic growth(1) down 9% YoY) • EPS(2) of $1.78, up 1% YoY • Gross Margins improved 280 basis points Y
Slide 5: Current Situation: Perspective by Market
Current Situation Perspective by Market Industrial Automation Solutions Smart Buildings Broadband Solutions Orders Down Orders Down -21% Orders Down -2% -28% 1Q23 2Q23 3Q23 1Q23 2Q23 3Q23 1Q23 2Q23 3Q23 3Q-2023 Trends 3Q-2023 Trends 3Q-2023 Trends • Decline in end customer purchases during the • Per
Slide 6: Volatile Market Conditions with Strong Margins
Volatile Market Conditions with Strong Margins Q3 2023 - Financial Results Overview Revenue down 7% YoY with temporary weakness in orders in Industrial Automation and $ Millions Q3 2023(1) Q3 2022(1) YoY Broadband Revenue $626.8 $670.5 -7% Organic Revenue Growth -9%(4) Gross Profit $244.2 $242.8 +1%
Slide 7: Challenging Short-Term Headwinds: Q3 2023 Segment Results
Challenging Short-Term Headwinds Q3 2023 Segment Results Industrial Automation Solutions Segment Enterprise Solutions Segment Long-term secular trends remain intact - driven by customers Long-term secular trends remain intact - multi-year investment shifting to business outcomes supported by full so
Slide 8: Strong Free Cash Flow Generation with a Healthy Balance Sheet
Strong Free Cash Flow Generation with a Healthy Balance Sheet Q3 2023 Balance Sheet and Cash Flow Highlights Cash and Cash Equivalent Net Leverage(1) TTM Free Cash Flow(2) Capital deployed in M&A and share Stable leverage as the business TTM FCF increased due to strong repurchases combined with seas
Slide 9: Q4 2023 Guidance
Q4 2023 Guidance Guidance as of November 2, 2023 Q4 2023 Guidance Total Revenue ($million) $510 to $530 GAAP EPS $0.49 to $0.64 Adjusted EPS $1.05 to $1.20 Full-Year 2023 Assumptions Interest Expense Tax Rate Share Count $35.0M 18.9% 42.9M Adjusted Outlook. See Appendix for reconciliation to compara
Slide 10: Corporate Overview
CORPORATE OVERVIEW BELDEN INC. NYSE : BDC 10
Slide 11: 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 3Q-2023 Revenue EBITDA EPS Cash Flow Associates TTM Results (1) $2,620M $465M $7.11 $260M ~8,000 3Q-2023 TTM Segment Results Sales by Region
Slide 12: 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 13: 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 14: Belden's solution strategy simplifies digital transformation
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 15: 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 16: 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 17: Appendix
APPENDIX BELDEN
Slide 18: Statement of Operations
Statement of Operations Unaudited Three Months Ended October 1, October 2, Nine Months Ended October 1, October 2, 2023 2022 2023 2022 (In thousands, except per share data) Revenues $ 626,807 $ 670,491 $ 1,960,841 $ 1,947,413 Cost of sales (385,639) (431,845) (1,212,240) (1,277,602) Gross profit 241
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 October 1, 2023 Segment Revenues $ 283,905 $ 342,902 $ 626,807 Segment EBITDA 37,693 77,244 114,937 Segment EBITDA margin 13.3 % 2
Slide 20: Operating Segment Reconciliation to Consolidated Results
Operating Segment Reconciliation to Consolidated Results Unaudited Three Months Ended Nine Months Ended October 1, October 2, October 1, October 2, 2023 2022 2023 2022 (In thousands) Total Segment and Consolidated Revenues $ 626,807 $ 670,491 $ 1,960,841 $ 1,947,413 Total Segment EBITDA $ 114,937 $
Slide 21: Balance Sheet
Balance Sheet Unaudited October 1, 2023 December 31, 2022 (Unaudited) (In thousands) ASSETS Current assets: Cash and cash equivalents $ 530,971 $ 687,676 Receivables, net 481,125 440,102 Inventories, net 336,420 341,563 Other current assets 63,831 66,866 Total current assets 1,412,347 1,536,207 Prop
Slide 22: Cash Flow Statement
Cash Flow Statement Unaudited Nine Months Ended October 1, 2023 October 2, 2022 (In thousands) Cash flows from operating activities: Net income $ 204,047 $ 192,807 Adjustments to reconcile net income to cash flows from operating activities: Depreciation and amortization 73,974 65,730 Share-based com
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 Trailing 12 Months Ended accepted in the United States, we provide non-GAAP operating results adjusted for certain October 1, 2023 items, including:
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 Three Months Ended Nine Months Ended proceeds from the disposal of assets. We believe free Octo
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- Three Months Ended Looking Statements" in this re
Slide 28: Thank You
Thank You Aaron Reddington CFA Vice President Investor Relations investor.relations@belden.com 28