Wesco International, Inc. · NYSE:WCC
Wesco International — Investor Presentation (March 2024)
16 slides from Wesco International's investor presentation, Mar 5, 2024
Slide 1: Wesco International Investor Overview March 2024
© 2022 Wesco International 1 Wesco International Investor Overview March 2024
Slide 2: Forward-Looking Statements
All statements made herein that are not historical facts should be considered as “forward-looking statements” within the meaning of the Private Securities Litigation Reform Act of 1995. Such statements involve known and unknown risks, uncertainties and other factors that may cause actual results to
Slide 3: Wesco Overview
U.S. 74% Canada 13% ROW 13% 3 Sales By Business Unit Sales By Geography Leading global provider of business-to-business distribution, logistics services and supply chain solutions Leading value proposition with millions of products, an expanding portfolio of services, and complete supply chain solut
Slide 4: Transformational Combination of Wesco + Anixter
$0.4 $0.4 $0.9 $0.9 $1.2 $1.7 $1.7 ~$1.75 2017 2018 2019 2020 2021 2022 2023 2024… Target • Leading Scale • Secular Trends • Cross Sell • Share Gains • Margin Improvement • Cost Synergies • Lean Practices • Agile Development • Digital Transformation • M&A Wesco + Anixter Generating the value of the
Slide 5: First Quarter Update
First Quarter Update 5 2024 outlook: reported sales growth 1% – 4% and free cash flow $600 – $800 million • January down ~5%1 YOY • February flat1 YOY • Divestiture of integrated supply • Accelerates mix-shift to higher margin markets • Proceeds to be used to reduce debt and repurchase shares • Repu
Slide 6: Key Messages
6 Key Messages • Transformational combination of Wesco + Anixter exceeded expectations • Broadest portfolio in the industry and largest channel partner for our key suppliers • Step function increase in cash generation and enterprise value creation • Leading player in a consolidating industry • Secul
Slide 7: Secular Trends + Share Growth Leads to Market Outperformance
7 • $1.2T Infrastructure Investment and Jobs Act (IIJA) • $369B Inflation Reduction Act (IRA) related to energy and climate investments • $53B CHIPS and Science Act • $20B Rural Digital Opportunity Fund (RDOF) • Canada Broadband Investments • Leading Portfolio of Products, Services, and Solutions •
Slide 8: Digitally Transforming Our Company
Digitally transforming our company Front Office Mid Office Back Office Products and PlatformOmnichannel Enterprise Systems Big Data Our Digital Transformation Innovating Across Our Entire Technology Landscape 8 Digital Services Data Office Supplier/OEM/Product Data Sets Wesco’s Data Sets Customer an
Slide 9: Annual Value Creation Framework
9 Annual Value Creation Framework = Invest for Above Market Growth Increase Return of Capital to Shareholders and Reduce Leverage Long-term Growth MSD+ Organic Sales Growth ~14% Incremental EBITDA1 Margin Margin Expansion 2x Sales Growth Sustainable Cash Flow Generation Over the Long Term EBITDA Gro
Slide 10: Why Invest in Wesco
Focused on delivering superior results and achieving a premium multiple 10 Why Invest in Wesco • Fortune 200 B2B Supply Chain Solutions Leader ‒ Global capabilities and leading scale ‒ Higher growth and higher margin end-markets ‒ Cross-sell combined with attractive long-term secular growth trends •
Slide 11: Appendix
Appendix Ww? wesco
Slide 12: EES Overview
U.S. 70% Canada 22% ROW 8% Construction 41% Industrial 36% OEM 23% Sales By End-Market Sales By Geography Provider of electrical, MRO, safety, and automation solutions Broad range of products and solutions primarily to the construction, industrial and OEM markets Uniquely positioned to provide the c
Slide 13: CSS Overview
66% 6% 28% U.S. ROW Canada CSS Overview 13 Sales By End-Market Sales By Geography 50+ Countries 39% 39% 22% Enterprise Network Infrastructure S e c u r i t y Deliver comprehensive solutions that provide 24/7/365 connectivity Approximately 25% of sales from data centers and expected to grow double-di
Slide 14: UBS Overview
U.S. 89% Canada 9% ROW 2% UBS Overview Sales By End-Market Sales By Geography Supply chain management, services and solutions for investor-owned utilities, public power companies, and municipalities, as well as global service providers, wireless providers, broadband operators and the contractors tha
Slide 15: Adjusted EBITDA Reconciliation
Adjusted EBITDA Reconciliation 15 Wesco International Twelve Months Ended December 31, Pro Forma Pro Forma ($ millions) 2017 2018 2019 2020 2021 2022 2023 Operating income 319.0 352.4 713.7 461.3 801.8 1,438.1 1,406.4 Add: Depreciation and amortization 64.0 63.0 138.7 153.5 198.5 179.0 181.3 Less: O
Slide 16: Organic Sales Growth by Quarter
16 Organic Sales Growth by Quarter: Three Months Ended Growth/(Decline) March 31, 2023 March 31, 2022 Reported Acquisition Impact Foreign Exchange Impact Workday Impact Organic Growth Wesco Sales 5,521.9 4,932.2 12.0 % 2.8 % (1.6) % — % 10.8 % Organic Sales Growth by Quarter $ millions Three Months
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