Wesco International, Inc. · NYSE:WCC
Wesco International — EPG Conference 2018
13 slides from Wesco International's conference presentation, May 23, 2018
Slide 1: WESCO International - EPG Conference
WESCO International John Engel Chairman, President, and Chief Executive Officer EPG Conference – May 23, 2018
Slide 2: Safe Harbor Statement
Safe Harbor Statement All statements made herein that are not historical facts should be considered as “forward-looking statements” within the meaning of the Private Securities Litigation Act of 1995. Such statements involve known and unknown risks, uncertainties and other factors that may cause act
Slide 3: WESCO: A Leading Global Supply Chain Solutions Provider
WESCO: A Leading Global Supply Chain Solutions Provider Capital Projects MRO OEM Including new construction and retrofits, renovations, and upgrades Founded One of the world’s largest distributors $7.7 Billion in #370 of the 9,100 1922 in of electrical, industrial, and Revenue Fortune 500 employees
Slide 4: WESCO's Value Proposition
WESCO’s Value Proposition Combining our competitive …into customized supply …that result in: differentiators… chain solutions • Long-term customer relationships and • A broad product portfolio deep familiarity with their operations • Technical expertise and a wide – Extending solutions to new range
Slide 5: Competitive Differentiator: Service Capabilities
Competitive Differentiator: Service Capabilities 2017 Sales: $7.7B Capital Project Solutions Supply Chain Solutions Our services and technical expertise Technical Expert Solutions drive the majority of our product sales Customized Product Solutions All Other Sales …value-added services drive custome
Slide 6: Example of Services Provided to a Key Utility Customer
Example of Services Provided to a Key Utility Customer WESCO Integrated Supply Services Inventory Warehousing Transaction Strategic Sourcing Purchasing Management & Logistics Management • Define market basket • Spot purchases • Evaluate inventory • Staff augmentation • Invoice processing • Develop c
Slide 7: Three Demand Streams, Four End Markets
Three Demand Streams, Four End Markets Sales by demand stream Quarterly Sales Growth by End Market(1): Longer 5 quarters Industrial 3 quarters Construction of growth of growth Capital ~50% of Projects sales 5+ years 4 quarters Utility(2) of full-year of growth CIG growth MRO ~50% of sales Shorter OE
Slide 8: North America - Large and Growing Market for Capital Projects
North America - Large and Growing Market for Capital Projects 2017 Capital Expenditures Non-Residential and Investor-Owned Utility Favorable Conditions for Growth: ($588B) • Industrial recovery is only five quarters old, with $57 multiple sources of support: $66 Commercial Construction $212 ─ U.S. t
Slide 9: Capital Projects
Capital Projects Characteristics of Capital Projects • Higher return on assets • Lower inventory • Reduced handling and distribution cost • In-line operating margins WESCO Advantages Lighting Power Distribution, • Our portfolio spans all phases of construction Wire and Cable and transitions to opera
Slide 10: 2018 Year to Date Results
2018 Year to Date Results First Quarter Second Quarter YTD (through May 18) • Double-digit sales, operating profit and • April sales up low-double-digits EPS growth versus prior year • April backlog at a new all-time high level • Continued positive business momentum • May sales to date up low-double
Slide 11: Long-Term Growth Algorithm
Long-Term Growth Algorithm Annual Expectations over the Long-Term Sales EPS Free Cash Flow • Market growth • ~50% operating profit • Greater than 90% of pull-through on organic net income 1% to 2% from market • growth outperformance − gross margin 1% to 3% from • improvement acquisitions − operating
Slide 12: Invest in WESCO
Invest in WESCO • Industry leader with deep domain expertise in electrical, industrial, construction, and utility • Proven business model and well positioned in large, fragmented markets • Blue-chip customer and supplier base • Proven acquirer and integrator in a consolidating industry • Extensive g
Slide 13: WESCO International
WESCO INTERNATIONAL