Slide 1: Q3 FY 2015 Financial Results Conference Call
Q3 FY 2015 FINANCIAL RESULTS CONFERENCE CALL April 30, 2015 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, costs or beliefs about future events and other statements that are not descriptions of historical facts, may
Slide 3: Highlights – Q3 FY15
HIGHLIGHTS – Q3 FY15 3 Net sales for third quarter 2015 of $763 million, up 12% Y/Y, and non-GAAP diluted EPS of $0.52* Below our expected range, principally from foreign exchange (FX) impacts Worldwide Barcode & Security sales decreased 7% Y/Y, or 2% excluding FX Worldwide Communications &
Slide 4: Q3 FY15 Highlights: GAAP and Non-GAAP Results
Q3 FY15 Q3 FY14 GAAP Non- GAAP* GAAP Non- GAAP* Y/Y Change (non-GAAP): Net sales $763.2 $763.2 $683.0 $683.0 12% increase; 16% excl. FX Gross profit 80.0 80.0 73.4 73.4 9% increase Gross profit margin % (of net sales) 10.5% 10.5% 10.7% 10.7% 26 bp margin decrease SG&A expenses 53.2 53.2 45.8 4
Slide 5: Q3 FY15 Sales Mix
Q3 FY15 SALES MIX 5 By Technology By Geography 55% Barcode & Security 45% Communications & Services 70% North America* 30% International Barcode & Security = Worldwide Barcode and Security Communications & Services = Worldwide Communications and Services As a % of Q3 FY15 net sales of $763.2 million
Slide 6: WW Barcode & Security
Q3 FY15 Q3 FY14 Net sales $422.1 $455.8 Gross profit $38.7 $43.0 Gross margin 9.2% 9.4% Operating income $10.3 $13.8 Operating income % 2.4% 3.0% Non-GAAP operating income $11.0 $15.4 Non-GAAP operating income % 2.6% 3.4% WW BARCODE & SECURITY 6 $456 $422 Q3 FY14 Q3 FY15 Net Sales, $ in millions Dow
Slide 7: WW Communications & Services
Q3 FY15 Q3 FY14 Net sales $341.1 $227.2 Gross profit $41.3 $30.3 Gross margin 12.1% 13.3% Operating income $11.5 $11.8 Operating income % 3.4% 5.2% Non-GAAP operating income $13.2 $12.2 Non-GAAP operating income % 3.9% 5.4% WW COMMUNICATIONS & SERVICES 7 Q3 FY14 Q3 FY15 Net Sales, $ in millions Up 5
Slide 8: Q3 FY15 Key Measures
Q3 FY15 Q2 FY15 Q3 FY14 Return on invested capital (“ROIC”)* 12.1% 14.8% 15.3% Cash and cash equivalents (Q/E) $93.6 $121.5 $183.6 Operating cash flow, trailing 12-months $39.1 $36.7 $86.1 Days sales outstanding in receivables 57 55 55 Inventory (Q/E) $485.6 $518.4 $479.9 Inventory turns 5.4 5.8 5.1
Slide 9: Summary of ERP Costs
ERP Costs, $2.2 ERP Costs, $2.6 SAP- related, $2.6 SAP- related, $1.9 $- $1.0 $2.0 $3.0 $4.0 $5.0 Q3 FY15 Actual* Q4 FY15 Forecast* SUMMARY OF ERP COSTS 9 $ in millions * Following 2/2/15 implementation in Europe, we can no longer capitalize ERP project costs; reflects amounts included in SG&A expen
Slide 10: Q4 FY15 Outlook
Q4 FY15 OUTLOOK* 10 * Outlook as of April 30, 2015. Non-GAAP diluted EPS excludes amortization of intangible assets, change in fair value of contingent consideration, and acquisition costs. Reflects the following FX rates: $1.08 to EUR 1.00 for the Euro, $0.336 to R$1.00 for the Brazilian real (R$2.
Slide 11: WW Barcode & Security
WW BARCODE & SECURITY 11 $456 $422 Q3 FY14 Q3 FY15 Net Sales, $ in millions Down 7.4% Excluding FX, Down 2.0%* * See Appendix for reconciliation of net sales excluding impact of foreign exchange to a GAAP measure. 55% of overall sales Lower big deals across all geographies Strong growth for pa
Slide 12: WW Communications & Services
WW COMMUNICATIONS & SERVICES 12 Q3 FY14 Q3 FY15 Net Sales, $ in millions Up 50.2% Excluding FX and Acquisitions, Up 16.7%* $341 $227 Acqs. 45% of overall sales First full quarter with Network1; added over 60 vendors and 7,000 customers Y/Y sales growth for all business units in local currency
Slide 13: Appendix: Non-GAAP Financial Information
APPENDIX: NON-GAAP FINANCIAL INFORMATION 13 ($ in thousands) Quarter Ended March 31, 2015 Operating Income Pre-tax income Net income Diluted EPS GAAP measure $ 21,496 $ 19,821 $ 12,943 $ 0.45 Adjustment: Amortization of intangible assets 2,114 2,114 1,464 0.05 Change in fair value of contingent cons
Slide 14: Appendix: Non-GAAP Financial Information
APPENDIX: NON-GAAP FINANCIAL INFORMATION 14 ($ in thousands) Quarter Ended March 31, 2015 WW Barcode & Security WW Comms. & Services Corporate Consolidated Net sales $ 422,061 $ 341,142 $ - $ 763,203 GAAP operating income $ 10,327 $ 11,461 $ (292) $ 21,496 Adjustments: Amortization of intangible ass
Slide 15: Appendix: Non-GAAP Financial Information
APPENDIX: NON-GAAP FINANCIAL INFORMATION 15 ($ in thousands) Q3 FY15 Q2 FY15 Q3 FY14 Return on invested capital (ROIC), annualized (a) 12.1% 14.8% 15.3% Reconciliation of Net Income to EBITDA Net income - GAAP $ 12,943 $ 16,821 $ 16,949 Plus: Income taxes 6,878 9,117 9,031 Plus: Interest expense 891
Slide 16: Appendix: Non-GAAP Financial Information
APPENDIX: NON-GAAP FINANCIAL INFORMATION 16 ($ in thousands) WW Barcode & Security WW Comms. & Services Consolidated Q3 FY15 net sales, as reported $ 422,061 $ 341,142 $ 763,203 Foreign exchange impact 24,794 3,084 27,878 Q3 FY15 net sales, excluding FX impact 446,855 344,226 791,081 Less: Acquisiti