2016 investor deck july v1

© 2016 Belden Inc. | belden.com | @BeldenInc

July 2016

Belden

Leading the Way to an

Interconnected World

© 2016 Belden Inc. | belden.com | @BeldenInc 2

Leading The Way to an Interconnected World

Delivering highly-engineered signal transmission

solutions for mission-critical applications in a diverse set of global markets

Business Platforms Applications Vertical Markets

Data

Sound

Video

Industrial

Enterprise

Broadcast


Five Business Platforms Delivering

Innovative Connectivity Solutions

Broadcast Enterprise Industrial

Connectivity

Industrial IT

Solutions

Network

Security

• Industrial and I/O Connectors

• Industrial Cable

• Distribution Boxes

• Customized Connectivity Solutions

• Ethernet Switches

• Wireless Systems

• Routers and Gateways

• Security Devices

• Network Management Software

• Copper and Fiber Connectivity

• Racks and Enclosures

• Ethernet, Fiber Optic

and Coaxial Cabling

• Custom Infrastructure Solutions

• Broadcast Connectors

• Routers and Interfaces

• Broadband Connectivity

• Multi-Viewers and

Monitoring and Control Systems

• Playout Systems

• Vulnerability Assessment

• Security Configuration Management

• Log Intelligence

• Analytics and Reporting

http://www.alphawire.com/en/default.aspx


A Global Signal Transmission Solutions Company

Broadcast Enterprise

Connectivity

Industrial

Connectivity Industrial IT

Network

Security

Market Size1 $4.0B $4.2B $4.0B $1.3B $4.3B

3-Year Market

Growth Rate 1-3% 1-3% 0-2% 1-3% 10-12%

Market Share1 18% 14% 16% 20% 4%

2015 Revenue $740.0M $605.9M $603.3M $244.3M $167.1M

2015 EBITDA

Margin 15.4% 16.5% 16.6% 17.7% 26.7%

Key Markets

• Broadband

• Broadcast

Studios

• Mobile

Production

• Finance

• Healthcare

• Commercial

Buildings

• Discrete

• Process

• Energy

• Transportation

• Finance

• Energy

• Retail

• Government

• Industrial

1. Served addressable market..


Financial Performance

Revenues (M) EBITDA Margin1 Return on

Invested Capital2 Free Cash Flow3

2005 $1,246 8.5% 4.1% $37M

2015 $2,361 17.0% 12.0% $182M

Variance 6.6% CAGR Improvement of

850 bps

Average of

13.1% 17.3% CAGR

Driving best-in-class shareholder value

1. Non-GAAP results. See appendix for reconciliation to comparable GAAP results.

2. Excluding excess cash, Average of 2012-2015.

3. See appendix for reconciliation to comparable GAAP results.


A Disciplined Capital Deployment Strategy

Innovation and

Market Expansion

Share

Repurchase M&A

Invest in

growth opportunities

Repurchase Belden stock

at attractive prices

Identify product and market

opportunities, and acquire with

a disciplined approach

• Product innovation

• Productivity

improvement

• Capital expenditure

• Repurchased 7.4 million shares at $47.43 average

• ~16% of outstanding shares

• $350M invested since 2011

• >$2.8 billion invested

since 2007

• >13% Cash ROIC on

acquisitions made

before 2015

2015 ROIC* = 12.0%

Deploy capital to highest ROIC project

* ROIC excluding excess cash


Connectivity Peers

Cable Peers

10.0%

20.0%

30.0%

40.0%

50.0%

2005 2006 2007 2008 2009 2010 2011 2012 2013 2014 2015

A Common Misperception About Belden

“Belden is a Wire and Cable company.”

Improvement of

1,930 bps

Belden’s Gross Profit Margin Exceeds Connectivity Peers

1. Adjusted results. See appendix for reconciliation to comparable GAAP results.

2. Peer margin based on 2015 expectations


10%

12%

14%

16%

18%

20%

2010 2011 2012 2013 2014 2015

Consistent Margin Progression

We have shown the ability to consistently

improve margins in a low-growth environment

EBITDA

Margin

Goal:

18 - 20%

11.9% 11.7%

13.0%

15.7% 15.5%

EBITDA Margin (%)1

17.0% Peer Average

1. Non-GAAP results. See appendix for reconciliation to comparable GAAP results


10 Year EPS Growth

0%

5%

10%

15%

20%

25%

Peer A S&P 500 Peer B Peer C Peer D Belden

Since 2005, Belden has generated

upper quartile EPS growth of 22%


High Quality Earnings: Free Cash Flow Generation

Delivering 21.3% CAGR in free cash flow per share

0

1

2

3

4

5

6

2005 2006 2007 2008 2009 2010 2011 2012 2013 2014 2015

FCF per Share1

1. Non-GAAP results. See appendix for reconciliation to comparable GAAP results

2. Excludes the cash payments for the Broadcast restructuring program that began in Q3 2015.

$2.41

$3.07 $3.38

$2.47

$0.71

$1.80

$4.882

$3.03 $3.16

$4.28 $4.46

21.3% CAGR


4.2x

4.9x 4.9x 4.7x 4.6x

4.2x 4.5x

0.0x

1.0x

2.0x

3.0x

4.0x

5.0x

6.0x

2010 2011 2012 2013 2014 2015 2016

Net Interest Coverage Ratio Has Been Consistent

Incurrence

Covenant

Belden generates more than 2x the required EBITDA

Net Interest Coverage Ratio


2008 Versus 2015

Market

Broadcast

Enterprise

Industrial

Product

Networking

Connectivity

Cable

2008

Market Product

2015

Divested cable

Acquired software,

networking and

connectivity

Network Security Security

Broadcast

Enterprise

Industrial

Networking

Connectivity

Cable


Transformation To Drive Continued Margin Expansion

14%

16%

18%

20%

2015 Leverage Mix Productivity Inorganic 2018

140 bps 20 bps

120 bps 20 bps 20.0%

17.0%


Opportunity Exists to Drive Increased Shareholder Value

4x

8x

12x

16x E

V/E

BIT

DA

Mu

ltip

le

10% 15% 20% 25% 30% 5%

EBITDA-Capex Margin

A

B

C

Increased free cash flow margin drives multiple expansion

Legacy Peers

E

C D

A

B

Best In Class

Peers

F

2008

Today


Business Model Goals

THREE YEAR FINANCIAL GOALS

Growth 5 - 7%

EBITDA 18 - 20%

Return on Invested Capital 13 - 15%

Free Cash Flow Exceed Net Income

• Headwinds

− Weak global growth

− Strong US dollar

− Sustained low oil prices

• Tailwinds

− Cybersecurity

− Broadband demand

− Strength in enterprise

Market Growth

1-3%

Share Capture

2%

Inorganic Activity

2%

Total

Growth

5-7% = + +


Continued Focus on Productivity Improvement Industrial Platform Cost Measures

Industrial Tailwinds

• Internet of Things

• Industrial automation

• Market-leading portfolio

Industrial Headwinds

• Stronger US dollar

• Industrial production

• Continued low oil prices

• Capacity utilization rates

Year Cash

Investment Savings

EPS

Impact

2016 $23M $6M $0.11

2017 $15M $17M $0.32

2018 - $22M $0.41


Q3 and Full Year 2016 Guidance*

Fiscal Year 2016

Revenues of between

$595 and $615

million

*Non-GAAP results. See appendix for reconciliation to comparable GAAP results

Q3 2016

EPS of between

$1.20 and

$1.30 per

diluted share

Revenues of between

$2.355 and

$2.385 billion

EPS of between

$5.15 and

$5.35 per

diluted share


GAAP to Non-GAAP Reconciliation

Year Ended Three Months Ended

December 31, 2016 October 2, 2016

Adjusted revenues $2.355 - $2.385 billion $595 - $615 million

Deferred revenue adjustments ($7 million) ($2 million)

GAAP revenues $2.348 - $2.378 billion $593 - $613 million

Adjusted income per diluted share attributable to Belden stockholders $5.15 - $5.35 $1.20 - $1.30

Amortization of intangible assets ($1.61) ($0.41)

Severance, restructuring, and acquisition integration costs ($0.55) ($0.26)

Deferred gross profit adjustments ($0.11) ($0.02)

GAAP income per diluted share attributable to Belden stockholders $2.88 - $3.08 $0.51 - $0.61

Our guidance for revenues and income per diluted share attributable to Belden stockholders 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 addition, our actual results are likely to be impacted by other

additional events for which information is not available, such as asset impairments, purchase accounting effects related to acquisitions,

severance, restructuring, and acquisition integration costs, gains (losses) recognized on the disposal of tangible assets, gains (losses) on

debt extinguishment, discontinued operations, and other gains (losses) related to events or conditions that are not yet known.


Q2 2016 Earnings Release

Conference Call Presentation


Our commentary and responses to your questions may contain forward-looking

statements, including our outlook for the 2016 third quarter, second half and full year.

Forward-looking statements also include projections of sales, earnings, general

economic conditions, market conditions, working capital, market shares, free cash flow,

pricing levels, and effective tax rates. Belden undertakes no obligation to update any

such statements to reflect later developments, except as required by law. Information on

factors that could cause actual results to vary materially from those discussed today is

available in the press release announcing 2016 second quarter results, our most recent

Annual Report on Form 10-K as filed with the SEC on February 25, 2016 (including

those discussed under “Risk Factors” in Part I, Item 1A and in “Management’s

Discussion and Analysis of Financial Condition and Results of Operations” in Part II,

Item 7), and our subsequent filings with the Securities and Exchange Commission.

Safe Harbor Statement

Non-GAAP Measures

On this call we will discuss some non-GAAP measures (denoted by footnote) in discussing Belden’s performance, and the reconciliation of those measures to the most comparable GAAP measures is contained within this presentation or available at our investor relations website, investor.belden.com.

investor.belden.com

investor.belden.com

investor.belden.com

investor.belden.com

investor.belden.com


• Achieved revenues of $603.4 million, an increase of 2.6%

organically from the prior-year period;

• Generated EBITDA margins of 17.9%, increasing 120 basis

from 16.7% in the year-ago period;

• Achieved EPS of $1.54, up 27% over last year’s $1.21;

• Generated an additional $57.5 million in free cash flow year-

to-date compared to the year-ago period;

Q2 2016 Highlights

Adjusted results. See Appendix for reconciliation to comparable GAAP results.

All references to EPS refer to income attributable to Belden stockholders per diluted share.


Precision A/V

Cable and Connectivity

Q2 2016 Segment Overview

Revenue $39.1M

EBITDA Margin 24.3%

Revenue $62.5M

EBITDA Margin 20.3%

Revenue $160.4M

EBITDA Margin 18.4%

Revenue $147.8M

EBITDA Margin 18.3%

Revenue $193.5M

EBITDA Margin 15.2%

Broadcast

Enterprise

Connectivity

Industrial

Connectivity

Industrial

IT

Network

Security

Camera Mounted

Fiber Solutions

Signal Processing

& Routing

Monitoring

Systems

Automation Playout

& Branding

Systems

Industrial and

I/O Connectors

Industrial

Cables

IP/Networking

Cables

I/O Modules/

Active

Distribution

Boxes

Customer-Specific

Wiring

Copper and Fiber

Connectivity

Racks and

Enclosures

Ethernet,

Fiber Optic and Coaxial

Cables, Security

& Routing Wireless Switches Connectivity

Vulnerability Assessment Targeted Attack Detection Threat Analytics

Drop, Headend and

Hardline Connectors


Q2 2016 Financial Summary

Q2 2016 Q1 2016 Q2 2015

Revenue $603.4M $543.8M $598.5M

Gross profit $252.0M $229.8M $249.5M

Gross profit percentage 41.8% 42.3% 41.7%

EBITDA $108.1M $89.1M $100.1M

EBITDA percentage 17.9% 16.4% 16.7%

Net Income1 $65.5M $42.7M $52.2M

Earnings Per Share1 $1.54 $1.01 $1.21

Adjusted results. See Appendix for reconciliation to comparable GAAP results.

(1) All references to Net Income and EPS refer to income attributable to Belden stockholders and income attributable to Belden

stockholders per diluted share.


Q2 2016 Segment Results

Consolidated are adjusted results. See Appendix for reconciliation to comparable GAAP results.

(1) Consolidated results include income from our equity method investment.

Broadcast Enterprise

Connectivity

Industrial

Connectivity Industrial IT

Network

Security Consolidated

Q2 2016

Revenue $193.5M $160.4M $147.8M $62.5M $39.1M $603.4M

EBITDA(1) $29.5M $29.6M $27.1M $12.7M $9.5M $108.1M

EBITDA Margin 15.2% 18.4% 18.3% 20.3% 24.3% 17.9%

Q1 2016

Revenue $171.3M $135.9M $141.1M $53.9M $41.7M $543.8M

EBITDA(1) $23.3M $23.7M $23.0M $8.6M $11.5M $89.1M

EBITDA Margin 13.6% 17.5% 16.3% 16.0% 27.5% 16.4%

Q2 2015

Revenue $174.9M $161.8M $160.9M $61.3M $39.6M $598.5M

EBITDA(1) $22.9M $30.0M $28.7M $10.2M $8.8M $100.1M

EBITDA Margin 13.1% 18.4% 17.8% 16.6% 22.1% 16.7%


Q2 2016 Balance Sheet Highlights

Q2 2016 Q1 2016 Q2 2015

Cash and cash equivalents $176M $146M $208M

Inventory turns 7.1x 5.9x 6.0x

Days sales outstanding 60 days 60 days 64 days

PP&E turns 7.6x 6.8x 7.3x

Total debt principal amount $1.71B $1.72B $1.92B

Net Leverage1 3.6x 3.7x 3.9x

(1) Net leverage calculated as (A) total debt less cash and cash equivalents divided by (B) trailing twelve months Adjusted EBITDA plus trailing twelve months stock based compensation

expense plus trailing twelve months long-term incentive plan expense for certain acquired companies.


Q2 2016 Cash Flow Highlights

(1) Capital expenditures, net of proceeds from the disposal of tangible assets. See Appendix for reconciliation.

(2) Free cash flow is not a term defined by generally accepted accounting principles (GAAP) and our definition may or may not be used consistently with other companies that define this term.

See Appendix for reconciliation to comparable GAAP results.

(3) Net of cash acquired.

Q2 2016 Q2 2015 YTD 2016 YTD 2015

Cash flows from operating activities $ 47.8M $ 53.3M $60.5M $ 5.0M

Less: Net capital expenditures(1) $ 11.7M $ 11.7M $ 25.1M $ 27.1M

Free cash flow (2) $ 36.1M $ 41.6M $ 35.4M $ (22.1M)

Cash used to acquire businesses(3) $ 2.5M $ 0.0M $ 17.8M $ 695.3M

Cash dividends paid $ 2.1M $ 2.1M $ 4.2M $ 4.2M

2016 investor deck july v1

Investor Relations