Slide 1: 4th Quarter and Full Year 2023 Earnings Results
4TH QUARTER AND FULL YEAR 2023 EARNINGS RESULTS February 2024
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 first quarter of 2024 and beyond. Forward-looking statements include projections of sales, earnin
Slide 3: Earnings Results
4th QUARTER & FULL YEAR 2023 EARNINGS RESULTS 3
Slide 4: Q4 & FY 2023 Key Messages
Q4 Exceeded Guidance + Record Full Year EPS Q4 & FY 2023 Key Messages $6.83 (+7%) Q4 Revenue and EPS exceeded the high end of guidance, orders positive Record FY EPS(1) • Revenue of $551M (exceeded high end of guidance) • EPS(1) of $1.46 (exceeded high end of guidance) • Orders for Q4 were positive,
Slide 5: Solid Performance Through the Cycle
Solid Performance Through the Cycle Solutions Transformation Leading to Improved Margin Profile and Record EPS Revenue(1) ($billions) EBITDA Margin(1) % Earnings Per Share(1)(2) Strong revenue growth through the cycle Solutions strategy benefiting margins Leading to an impressive EPS increase 6% Rev
Slide 6: Our Capital Allocation Priorities in Action
Our Capital Allocation Priorities in Action Meaningful Cash Flow Reinvested for Growth and Margin Expansion Cash Flow Generation Capital Allocation In Action (2019 – 2023) (2019 – 2023) Strategic Divestiture Reduction in Leverage(1) Returned Capital $0.4 B $0.4 B to Shareholders $0.5 B ~$1.3 Billion
Slide 7: Noteworthy Customer Wins
Noteworthy Customer Wins Key Wins Highlighting our Solutions Transformation Industrial Automation Solutions Enterprise Solutions Key win in the $6 million win in the Cross market selling of enterprise mass transit vertical healthcare vertical as an and broadband products with key in a targeted geogr
Slide 8: Soft Demand with Stable Margins
Soft Demand with Stable Margins Q4 2023 - Financial Results Overview Revenue down 16% YoY due to temporary weakness aligned with expectations set forth in prior $ Millions Q4 2023(1) Q4 2022(1) YoY guidance Revenue $551.2 $659.1 -16% Organic Revenue Growth -18%(4) Gross Profit $210.6 $248.8 -15% • I
Slide 9: Dynamic Market Conditions with Record EPS
Dynamic Market Conditions with Record EPS FY 2023 - Financial Results Overview Revenue down 4% YoY due to temporary weakness aligned with expectations set forth in prior $ Millions FY 2023(1) FY 2022(1) YoY guidance Revenue $2,512.1 $2,606.5 -4% Organic Revenue Growth -4%(4) Gross Profit $966.4 $931
Slide 10: Performance In Line with Expectations: Q4 2023 Segment Results
Performance In Line with Expectations Q4 2023 Segment Results Industrial Automation Solutions Segment Enterprise Solutions Segment As expected, temporary softness persisted during the quarter As expected, continued moderation in demand as orders are with orders stable amid ongoing destocking roughly
Slide 11: Solid Results During Dynamic Market Conditions: FY 2023 Segment Results
Solid Results During Dynamic Market Conditions FY 2023 Segment Results Industrial Automation Solutions Segment Enterprise Solutions Segment Long-term secular trends remain intact - driven by customers Long-term secular trends remain intact - multi-year investment shifting to business outcomes suppor
Slide 12: Consistent Free Cash Flow Generation with a Healthy Balance Sheet
Consistent Free Cash Flow Generation with a Healthy Balance Sheet Q4 2023 Balance Sheet and Cash Flow Highlights Cash and Cash Equivalent Net Leverage(1) TTM Free Cash Flow(2) Capital deployed towards share Stable leverage as the business Strong full year free cash flow driven repurchases combined w
Slide 13: Q1 2024 Guidance
Q1 2024 Guidance Guidance as of February 8, 2024 Q1 2024 Guidance Total Revenue ($million) $505 to $520 GAAP EPS $0.65 to $0.75 Adjusted EPS $1.00 to $1.10 Q1 2024 Assumptions Interest Expense Tax Rate Share Count $10.0M 20.0% 41.6M Adjusted Outlook. See Appendix for reconciliation to comparable GAA
Slide 14: Corporate Overview
CORPORATE OVERVIEW BELDEN INC. NYSE : BDC 14
Slide 15: 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 4Q-2023 Revenue EBITDA EPS Cash Flow Associates TTM Results (1) $2,512M $438M $6.83 $217M ~8,000 4Q-2023 TTM Segment Results Sales by Region
Slide 16: 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 17: 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 18: 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 19: 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 20: 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 21: Appendix
APPENDIX BELDEN
Slide 22: Statement of Operations
Statement of Operations Unaudited Three Months Ended December 31, December 31, Twelve Months Ended December 31, December 31, 2023 2022 2023 2022 (In thousands, except per share data) Revenues $ 551,243 $ 659,072 $ 2,512,084 $ 2,606,485 Cost of sales (344,878) (412,594) (1,557,118) (1,690,196) Gross
Slide 23: Operating Segment Information
Operating Segment Information Unaudited Industrial Enterprise Automation Total Solutions Solutions Segments (In thousands, except percentages) For the three months ended December 31, 2023 Segment Revenues $ 251,054 $ 300,189 $ 551,243 Segment EBITDA 30,253 57,666 87,919 Segment EBITDA margin 12.1 %
Slide 24: Operating Segment Reconciliation to Consolidated Results
Operating Segment Reconciliation to Consolidated Results Unaudited Three Months Ended Twelve Months Ended December 31, December 31, December 31, December 31, 2023 2022 2023 2022 (In thousands) Total Segment and Consolidated Revenues $ 551,243 $ 659,072 $ 2,512,084 $ 2,606,485 Total Segment EBITDA $
Slide 25: Balance Sheet
Balance Sheet December 31, 2023 December 31, 2022 Unaudited (Unaudited) (In thousands) ASSETS Current assets: Cash and cash equivalents $ 597,044 $ 687,676 Receivables, net 413,806 440,102 Inventories, net 366,987 341,563 Other current assets 79,142 66,866 Total current assets 1,456,979 1,536,207 Pr
Slide 26: Cash Flow Statement
Cash Flow Statement Unaudited Twelve Months Ended December 31, 2023 December 31, 2022 (In thousands) Cash flows from operating activities: Net income $ 242,556 $ 254,822 Adjustments to reconcile net income to net cash from operating activities: Depreciation and amortization 99,446 88,738 Share-based
Slide 27: 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 Three Months Ended Twelve Months Ended items, including: asset impairm
Slide 28: 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 29: 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 30: 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 31: 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 Twelve Months Ended proceeds from the disposal of assets. We believe free De
Slide 32: 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 Three Months Ended results are subject to the factors listed under "Forward- March 31, 2024 Looking Stateme
Slide 33: Thank You
Thank You Aaron Reddington CFA Vice President Investor Relations investor.relations@belden.com 33