Slide 1: Q3 2022 Earnings Release
Q3 2022 EARNINGS RELEASE Conference Call | November 2, 2022
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 and full- year 2022. Forward-looking statements include projections of sales, earn
Slide 3: Executive Summary
Executive Summary Delivered another strong quarter and record EPS • Exceeded expectations for revenue and delivered record EPS of $1.77 1 • Continued strong execution resulted in 15% organic growth with double-digit organic growth in both segments • Expanded EBITDA margins by 90 basis points to 17.6
Slide 4: Strategic Customer Wins
Strategic Customer Wins Discrete Automation Integrator Location: Canada Business Problem: Lack of secure remote access and lower operational efficiency We are Solution: Connecting and controlling diverse production collaborating with assets linked to diverse automation systems into cloud customers t
Slide 5: Q3 2022 Highlights
Q3 2022 Highlights Revenue increased 11% EBITDA increased 17% Generated $110M free year over year year over year to $118M cash flow in the quarter to $670M EBITDA margin of 17.6%, Repurchased 2.6M shares Organic growth of compared to 16.7% in the for $150M year-to-date 15% year over year year ago pe
Slide 6: Q3 2022 Financial Summary
Q3 2022 Financial Summary Q3 2022 Q2 2022 Q3 2021 Revenue $670.5M $666.6M $605.3M Gross profit $242.8M $229.0M $207.6M Gross profit percentage 36.2% 34.4% 34.3% EBITDA $118.1M $111.0M $101.3M EBITDA percentage 17.6% 16.6% 16.7% Net Income(1) $78.1M $71.5M $60.6M Earnings Per Share(2) $1.77 $1.60 $1.
Slide 7: Q3 2022 Segment Results
Q3 2022 Segment Results Industrial Enterprise Automation Consolidated(2) Solutions Solutions Q3 2022 Revenue $351.3M $319.2M $670.5M EBITDA(1) $71.1M $46.1M $118.1M EBITDA Margin 20.2% 14.4% 17.6% Q2 2022 Revenue $359.1M $307.4M $666.6M EBITDA(1) $68.1M $41.9M $111.0M EBITDA Margin 19.0% 13.6% 16.6%
Slide 8: Q3 2022 Balance Sheet Highlights
Q3 2022 Balance Sheet Highlights Q3 2022 Q2 2022 Q3 2021 Cash and Cash Equivalents $547M $528M $456M Days Sales Outstanding 59 59 60 Inventory Turns 4.9x 4.5x 5.1x Total Debt Principal Amount $1.06B $1.15B $1.51B Net Leverage(1) 1.1x 1.4x 2.9x (1) Net leverage is calculated as (A) total debt less ca
Slide 9: Q3 2022 Cash Flow Highlights
Q3 2022 Cash Flow Highlights Q3 2022 Q3 2021 Cash flows from operating activities $87.4M $75.0M Less: Capital expenditures $19.2M $24.7M Plus: Proceeds from disposal of assets $42.1M _ Free cash flow(1) $110.3M $50.3M (1) Free cash flow is not a term defined by generally accepted accounting principl
Slide 10: Outlook
Outlook Q4 2022 • Revenue of $635 - $650 million • Earnings Per Share(1) of $1.60 - $1.70 Full Year 2022 • Revenue of $2.583 - $2.598 billion • Earnings Per Share(1) of $6.27 - $6.37 • Organic growth of 15% - 16% Full Year 2022 Assumptions • Interest expense of $45 million • Tax rate of 19.3% • Shar
Slide 11: Value Creation Framework
VALUE CREATION FRAMEWORK ORGANIC REVENUE INCREMENTAL GROWTH EBITDA MARGINS GDP+ ~30% DISCIPLINED CAPITAL ALLOCATION $8.00+ ROBUST FREE CASH FLOW GENERATION EPS by 2025 ~1.5x ~$1.0B net leverage allows for cumulative over next 4 years substantial capital deployment (2022 – 2025) over next 4 years 1
Slide 12: Our customers are building the future. We build the network that makes it possible.
Our customers are building the future. We build the network that makes it possible. Let’s Build The Future. 12
Slide 13: Questions?
BELDEN QUESTIONS?
Slide 14: Appendix
BELDEN APPENDIX
Slide 15: Statement of Operations
Statement of Operations Three Months Ended Nine Months Ended October 2, October 3, October 2, October 3, 2022 2021 2022 2021 (In thousands, except per share data) Revenues $ 670,491 $ 604,761 $ 1,947,413 $ 1,689,301 Cost of sales (431,845) (401,384) (1,277,602) (1,125,387) Gross profit 238,646 203,3
Slide 16: Operating Segment Information
Operating Segment Information Industrial Enterprise Solutions Automation Solutions Total Segments (In thousands, except percentages) For the three months ended October 2, 2022 Segment Revenues $ 319,201 $ 351,290 $ 670,491 Segment EBITDA 46,110 71,055 117,165 Segment EBITDA margin 14.4 % 20.2 % 17.5
Slide 17: Operating Segment Reconciliation to Consolidated Results
Operating Segment Reconciliation to Consolidated Results Three Months Ended Nine Months Ended October 2, October 3, October 2, October 3, 2022 2021 2022 2021 (In thousands) Total Segment Revenues $ 670,491 $ 605,263 $ 1,947,413 $ 1,690,652 Adjustments related to acquisitions — (502) — (1,351) Consol
Slide 18: Balance Sheet
Balance Sheet October 2, 2022 December 31, 2021 (In thousands) ASSETS Current assets: Cash and cash equivalents $ 547,466 $ 641,563 Receivables, net 436,715 383,444 Inventories, net 351,440 345,203 Other current assets 48,987 58,283 Current assets of discontinued operations — 449,402 Total current a
Slide 19: Cash Flow Statement
Cash Flow Statement Nine Months Ended October 2, 2022 October 3, 2021 (In thousands) Cash flows from operating activities: Net income $ 192,807 $ 114,030 Adjustments to reconcile net income to net cash from operating activities: Depreciation and amortization 65,730 65,028 Share-based compensation 18
Slide 20: Reconciliation of Non-GAAP Measures
Reconciliation of Non-GAAP Measures Three Months Ended Nine Months Ended October 2, 2022 October 3, 2021 October 2, 2022 October 3, 2021 (In thousands, except percentages and per share amounts) In addition to reporting financial results in accordance with accounting principles GAAP revenues $ 670,49
Slide 21: Reconciliation of Non-GAAP Measures (continued)
Reconciliation of Non-GAAP Measures (continued) In addition to reporting financial results in accordance with accounting principles generally accepted in the United States, we provide non-GAAP operating results adjusted for certain items, including: asset impairments; accelerated depreciation expens
Slide 22: Free Cash Flow GAAP to Non-GAAP Reconciliation
Free Cash Flow GAAP to Non-GAAP Reconciliation Three Months Ended Nine Months Ended October 2, October 3, October 2, October 3, 2022 2021 2022 2021 (In thousands) GAAP net cash provided by operating activities $ 87,381 $ 74,982 $ 78,800 $ 101,919 Capital expenditures (19,240) (24,703) (50,250) (55,5
Slide 23: Reconciliation of Non-GAAP Measures: 2022 Guidance
Reconciliation of Non-GAAP Measures 2022 Guidance Year Ended Three Months Ended December 31, 2022 December 31, 2022 (In thousands) GAAP income from continuing operations per diluted share attributable to Belden common stockholders $5.89 - $5.99 $1.27 - $1.37 Amortization of intangible assets 0.71 0.