Slide 1: 2nd Quarter 2024 Earnings Results
2ND QUARTER 2024 EARNINGS RESULTS August 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 third quarter of 2024 and beyond. Forward-looking statements include projections of sales, earnin
Slide 3: Earnings Results
2nd QUARTER 2024 EARNINGS RESULTS 3
Slide 4: Exceeded Expectations with Sequential Order Growth
Exceeded Expectations with Sequential Order Growth Q2 2024 Key Messages $1.51 (-21% YoY) Q2 2024 Q2 Revenue and EPS exceeded the high end of guidance Adjusted EPS(1) • Revenue of $604M (exceeded high end of guidance) • Adjusted EPS(1) of $1.51 (exceeded high end of guidance) • Adjusted Gross Margin
Slide 5: Growing Fiber Business
Growing Fiber Business What we do: Fiber Solutions Targeting High-Growth Applications We provide connectivity solutions utilizing a broad portfolio of fiber products, optical transceivers, and related products and applications. Our solutions support end-to-end network TTM Revenue by Market (Proforma
Slide 6: Sequential Order Growth with Stable Margins
Sequential Order Growth with Stable Margins Q2 2024 – Adjusted Financial Results Overview Orders +9% sequentially Book-to-Bill 1.00 $ Millions Q2 2024(1) Q2 2023(1) YoY Revenue $604.3 $692.2 -13% Revenue -13% YoY ahead of expectations set forth in prior Gross Profit $230.6 $263.7 -13% guidance Gross
Slide 7: Performance In Line with Expectations
Performance In Line with Expectations Q2 2024 Segment Results Industrial Automation Solutions Segment Enterprise Solutions Segment Temporary softness persisted during the quarter with orders up Continued moderation in demand with orders up sequentially sequentially despite ongoing destocking amid de
Slide 8: Consistent Free Cash Flow Generation with a Healthy Balance Sheet
Consistent Free Cash Flow Generation with a Healthy Balance Sheet Q2 2024 Balance Sheet and Cash Flow Highlights Cash and Cash Equivalent Net Leverage(1) TTM Free Cash Flow(2) Capital deployed towards share Stable leverage as the business Strong TTM free cash flow driven by repurchases and strategic
Slide 9: Q3 2024 Guidance
Q3 2024 Guidance Guidance as of August 1, 2024 Q3 2024 Guidance Total Revenue ($million) $635 to $650 GAAP EPS $1.00 to $1.10 Adjusted EPS $1.55 to $1.65 Q3 2024 Assumptions Interest Expense Tax Rate Share Count $11.1M 20.0% 41.4M Adjusted Outlook. See Appendix for reconciliation to comparable GAAP
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 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 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 Solutions Smart Buildings Solutions Broadband Solutions 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 connecti
Slide 14: 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 15: 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 16: Appendix
APPENDIX BELDEN
Slide 17: Statement of Operations
Statement of Operations Unaudited Three Months Ended Six Months Ended June 30, 2024 July 2, 2023 June 30, 2024 July 2, 2023 (In thousands, except per share data) Revenues $ 604,336 $ 692,245 $ 1,140,011 $ 1,334,034 Cost of sales (377,530) (430,917) (711,609) (826,601) Gross profit 226,806 261,328 42
Slide 18: Operating Segment Information
Operating Segment Information Unaudited Industrial Enterprise Automation Total Solutions Solutions Segments (In thousands, except percentages) For the three months ended June 30, 2024 Segment Revenues $ 270,473 $ 333,863 $ 604,336 Segment EBITDA 31,456 67,737 99,193 Segment EBITDA margin 11.6 % 20.3
Slide 19: Operating Segment Reconciliation to Consolidated Results
Operating Segment Reconciliation to Consolidated Results Unaudited Three Months Ended Six Months Ended June 30, 2024 July 2, 2023 June 30, 2024 July 2, 2023 (In thousands) Total Segment and Consolidated Revenues $ 604,336 $ 692,245 $ 1,140,011 $ 1,334,034 Total Segment EBITDA $ 99,193 $ 122,587 $ 18
Slide 20: Balance Sheet
Balance Sheet June 30, 2024 December 31, 2023 Unaudited (Unaudited) (In thousands) ASSETS Current assets: Cash and cash equivalents $ 564,751 $ 597,044 Receivables, net 396,850 413,806 Inventories, net 374,991 366,987 Other current assets 75,951 79,142 Total current assets 1,412,543 1,456,979 Proper
Slide 21: Cash Flow Statement
Cash Flow Statement Unaudited Six Months Ended June 30, 2024 July 2, 2023 (In thousands) Cash flows from operating activities: Net income $ 86,344 $ 131,720 Adjustments to reconcile net income to cash flows from operating activities: Depreciation and amortization 52,968 49,044 Share-based compensati
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 Twelve Months Ended items, including: asset impairments; a
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 assets. We believe free Three Months Ended Six Months Ended cash
Slide 27: Reconciliation of Non-GAAP Measures - Guidance
Reconciliation of Non-GAAP Measures Guidance 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- Looking Statements" in this release. In
Slide 28: Thank You
Thank You Aaron Reddington CFA Vice President Investor Relations investor.relations@belden.com 28