Belden Inc · NYSE:BDC
Belden — Q1 2023 Earnings Presentation
28 slides from Belden's earnings presentation, May 3, 2023
Slide 1: 1st Quarter 2023 Earnings Results
1ST QUARTER 2023 EARNINGS RESULTS May 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 second quarter, full year 2023, and adjusted EPS for 2025. Forward-looking statements include pro
Slide 3: 1st Quarter 2023 Earnings Results
1st QUARTER 2023 EARNINGS RESULTS 3
Slide 4: Healthy Growth with Key Strategic Investments
Healthy Growth with Key Strategic Investments Q1 2023 Key Messages +7% Organic Revenue Growth Delivered another strong quarter with revenue growth and margin expansion(1) • Continued sound execution resulted in 7% organic growth(2) YoY with positive organic growth in both segments • Expanded Q1 EBIT
Slide 5: Belden Acquired Berthold Sichert GmbH
Belden Acquired Berthold Sichert GmbH Closed April 17, 2023 Berthold Sichert GmbH At-a-Glance Acquisition Highlights • Sichert designs, manufactures, and sells a range of polycarbonate street Berlin, Germany cabinets in outside plant Passive Optical Networks (PON) and 5G networks Headquarters • Expa
Slide 6: Belden's solution strategy simplifies digital transformation for customers
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 7: Meaningful Improvement in Customer KPI
Meaningful Improvement in Customer KPI Enhanced Delivery Solutions Example a subsidiary of Spanish electric distribution system operator EDP Challenge Solution Impact Belden Designed E-REDES, a subsidiary of EDP, spent With its new advanced fault locator Fault Locator System too long finding faults
Slide 8: Strong Execution in Complex & Volatile Market Conditions
Strong Execution in Complex & Volatile Market Conditions Q1 2023 - Financial Results Overview Revenue up 5% YoY with strength $ Millions Q1 2023(1) Q1 2022(1) YoY in solution sales within Industrial Automation Solutions Revenue $641.8 $610.4 +5% Gross Profit $247.8 $211.2 +17% Organic Revenue Growth
Slide 9: Both Segments Delivered Strong Revenue & EBITDA Growth
Both Segments Delivered Strong Revenue & EBITDA Growth Q1 2023 Segment Results Industrial Automation Solutions Segment Enterprise Solutions Segment Robust secular growth opportunities driven by customers shifting Multi-year investment cycle in Broadband, combined with growing to business outcomes su
Slide 10: Improved Cash Flow Generation with a Strong Balance Sheet
Improved Cash Flow Generation with a Strong Balance Sheet Q1 2023 Balance Sheet and Cash Flow Highlights Cash and Cash Equivalent Net Leverage(1) TTM Free Cash Flow(2) Capital deployed in share repurchases Significantly reduced leverage YoY as TTM FCF increased sequentially due combined with seasona
Slide 11: Increasing Full-Year 2023 Guidance with Recent Capital Deployment
Increasing Full-Year 2023 Guidance with Recent Capital Deployment Q2 and Full-year 2023 Outlook, as of May 3, 2023 Full Year 2023 Outlook 2Q 2023 Outlook Previous Updated Projections Total Revenue $2.670B - $2.720B $2.710B - $2.760B $675M - $690M Organic Revenue Growth 3% - 5% 3% - 5% 3% - 5% GAAP E
Slide 12: 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 13: Corporate Overview
CORPORATE OVERVIEW BELDEN INC. NYSE : BDC 13
Slide 14: 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 2022 Revenue EBITDA EPS Cash Flow Associates Results (1) $2,606M $444M $6.41 $220M 8,000 2022 Segment Results 2022 Sales by Region Industria
Slide 15: 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 16: Appendix
APPENDIX BELDEN
Slide 17: Statement of Operations
Statement of Operations Unaudited Three Months Ended April 2, 2023 April 3, 2022 (In thousands, except per share data) Revenues $ 641,789 $ 610,371 Cost of sales (395,684) (401,511) Gross profit 246,105 208,860 Selling, general and administrative expenses (121,574) (103,066) Research and development
Slide 18: Operating Segment Information
Operating Segment Information Unaudited Industrial Enterprise Automation Solutions Solutions Total Segments (In thousands, except percentages) For the three months ended April 2, 2023 Segment Revenues $ 275,343 $ 366,446 $ 641,789 Segment EBITDA 37,205 73,787 110,992 Segment EBITDA margin 13.5 % 20.
Slide 19: Operating Segment Reconciliation to Consolidated Results
Operating Segment Reconciliation to Consolidated Results Unaudited Three Months Ended April 2, 2023 April 3, 2022 (In thousands) Total Segment and Consolidated Revenues $ 641,789 $ 610,371 Total Segment EBITDA $ 110,992 $ 98,349 Total non-operating pension benefit 488 1,200 Eliminations (29) (55) Co
Slide 20: Balance Sheet
Balance Sheet Unaudited April 2, 2023 December 31, 2022 (In thousands) ASSETS Current assets: Cash and cash equivalents $ 589,045 $ 687,676 Receivables, net 417,868 440,102 Inventories, net 370,729 341,563 Other current assets 63,431 66,866 Total current assets 1,441,073 1,536,207 Property, plant an
Slide 21: Cash Flow Statement
Cash Flow Statement Unaudited Three Months Ended April 2, 2023 April 3, 2022 (In thousands) Cash flows from operating activities: Net income $ 62,945 $ 35,844 Adjustments to reconcile net income to cash flows from operating activities: Depreciation and amortization 23,416 21,083 Share-based compensa
Slide 22: 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 23: 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 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 accepted in the United States, we provide non-GAAP operating results adjusted for certain items, including: asset impairments; accelerated depreciat
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 proceeds from the disposal of tangible assets. We Three Months Ended believe free cash flow pro
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 Year Ended Three Months Ended results are subject to the factors listed under "Forward- December 31, 2023 J
Slide 28: Thank You
Thank You Aaron Reddington CFA Vice President Investor Relations investor.relations@belden.com 28