| ©2017 Belden Inc. belden.com @beldeninc1
Belden OverviewQ4 2018
| ©2017 Belden Inc. belden.com @beldeninc2Adjusted results. See investor.belden.com for reconciliation to comparable GAAP results.
1. 2005 – 2017
Belden Overview
Operational Excellence
Disciplined Capital Allocation
Proven Management Team
DEPLOYS A Robust Business System
Revenue CAGR +6%
FCF CAGR +15% DELIVERSStrong, Consistent Results1
EBITDA +970 bps
ROIC +910 bps
Bandwidth
Video ConsumptionBENEFITS From Favorable Secular Trends
Industrial Automation
Smart Buildings
What is Belden? A Leading Global Connectivity Company that …
SERVES Two Primary End-Markets
Enterprise
Industrial
| ©2017 Belden Inc. belden.com @beldeninc3
Belden Overview
KEY MARKETS
Industrial
Discrete Manufacturing
Process Facilities
Transportation
Energy
Enterprise
Smart Buildings
Final Mile Broadband
Live Media Production
Data
Audio
Video
Connectivity
Cable
Networking
Software
APPLICATIONS SOLUTIONS
A Leading Global Connectivity Company
| ©2017 Belden Inc. belden.com @beldeninc4
Transmitting and Securing Data, Sound, and Video in
Complex Enterprise and Media Networks
Fiber Copper A/V
KEY SOLUTIONS
Enterprise
Smart Buildings
KEY MARKETS
Cable Connectivity Networking Software
Fiber Copper A/V
Racks Connectivity Tools
Cameras Switchers Replay
Routing Playout
Extended LAN Commercial A/V Broadband Deployment (Fiber/Copper) Live News and Sports Production Stadium Infrastructure
Final Mile Broadband Live Media Production
Editing Playout Asset Management
Automated Production Control
Non-GAAP results. See investor.belden.com for reconciliation to comparable GAAP results.
1. 2017 Results
15.9% EBITDA Margins1
$1,356M Revenue1
| ©2017 Belden Inc. belden.com @beldeninc5
Fiber Copper
KEY SOLUTIONS
Industrial
Discrete Manufacturing Process Facilities Transportation Energy
KEY MARKETS
Cable Connectivity Networking Software
Active I/O Modules Passive Distribution
Boxes Connectors
Wireless Gateways Switches Routers Security Configuration Management Firewalls
Network Management Vulnerability Management
Factory Floor Automation Process Automation Transportation Control Systems
and Wireless
Smart Grid Infrastructure
Transmitting and Securing Data, Sound, and Video in
Harsh Industrial Environments20.6% EBITDA Margins1
$1,032M Revenue1
Non-GAAP results. See investor.belden.com for reconciliation to comparable GAAP results.
1. 2017 Results
| ©2017 Belden Inc. belden.com @beldeninc6
Proven Track Record
REVENUEEBITDA
MARGIN
FREE CASH
FLOW
RETURN
ON INVESTED
CAPITAL1
2005 $1.246B 8.5% $37M 4.1%
2017 $2.389B 18.2% $192M 13.2%
Variance 6% CAGRImprovement of
970 bps15% CAGR
Improvement of
910 bps
Non-GAAP results. See investor.belden.com for reconciliation to comparable GAAP results.
1. Excluding excess cash.
SIGNIFICANTLY IMPROVED FINANCIAL PERFORMANCE
| ©2017 Belden Inc. belden.com @beldeninc7
REVENUE MIX
Improved Portfolio Composition
DIVESTED Lower-margin cable
ACQUIRED Higher-margin software,
networking, and connectivityCABLE
CONNECTIVITY
CABLE
CONNECTIVITY
NETWORKING
SOFTWARE
REVENUE MIX
2005
2017
1.2BRevenues
Gross Profit
21
$
%
2.4BRevenues
Gross Profit
41
$
%
| ©2017 Belden Inc. belden.com @beldeninc8
EBITDA Margin (%)1
1. Non-GAAP results. See investor.belden.com for reconciliation to comparable GAAP results
Consistent Margin Progression
CONSISTENT MARGIN EXPANSION
9.4%
11.2%
13.6%
10.0%
11.8% 11.9% 11.7%
13.0%
15.7% 15.5%
17.0%
18.3% 18.2%
8.0%
10.0%
12.0%
14.0%
16.0%
18.0%
20.0%
22.0%
2005 2006 2007 2008 2009 2010 2011 2012 2013 2014 2015 2016 2017
EBITDA Margin Goal: 20 - 22%
Prior EBITDA Margin Goal: 18 - 20%
| ©2017 Belden Inc. belden.com @beldeninc9
Favorable Secular Trends
INDUSTRIAL
AUTOMATION
Increasing
pressure
to automate
production
SMART
BUILDINGS
Integrated
networks
require
connectivity
BANDWIDTH
Insatiable
demand for
high-speed
internet
VIDEO
CONSUMPTION
Increasing quality
and quantity
of video
consumption
| ©2017 Belden Inc. belden.com @beldeninc10
2017 Leverage onOrganic Growth
Mix Productivity 2020
Adjusted results. See investor.belden.com for reconciliation to comparable GAAP results.
1. Assuming 4% organic revenue CAGR.
THE BELDEN BUSINESS SYSTEM WILL
CONTINUE TO DRIVE MARGIN EXPANSION
130 bps1
60 bps
90 bps 21.0%
A Path to Increased Profitability
18.2%
| ©2017 Belden Inc. belden.com @beldeninc11
SIGNIFICANTLY IMPROVED BALANCE SHEET
A Quality Balance Sheet with Long-Term Maturities
Fixed, Long-Term Maturities
Euro-Denominated
Debt Improves Earnings
Exposure to the Euro
Pre-Tax Cost of Debt
= 3.5%
(millions)
$340
$227
$510
$397
2018 2019 2020 2021 2022 2023 2024 2025 2026 2027 20281111
(millions)
As of 10.30.2018
1. Euro-denominated debt. Using 1.134 EUR / USD FX rate.
| ©2017 Belden Inc. belden.com @beldeninc12
Well-Capitalized and Strategically Advantaged
~$1.7 BILLION ~$430 million
≤ 3.0x
Management’s best estimate. 1. Estimated cash available for deployment.
| ©2017 Belden Inc. belden.com @beldeninc13
Organic Investments in capital
expenditures to support organic
growth and sustain core businesses
Highly selective M&A to expand
our product offering into our current
customer set and realize significant
synergies
Belden Capital Allocation Framework
Based on management’s best estimates.
Percent
of Capital
~25%
~55%
~20%
We invest only where we can leverage the Belden Business System
to generate best-in-class ROIC
Share Repurchase when the market
price is below the NPV of our strategic
plan and Dividends
| ©2017 Belden Inc. belden.com @beldeninc14
EPS Accretion from Capital Deployment
9%
$100M $0.16
$300M $0.48
$500M $0.80
$700M $1.12
ROIC
Assumes Tax Rate = 24%, Number of Shares = 48.9M, Depreciation = 2% of Revenues
Deployed Capital
YEAR 1
| ©2017 Belden Inc. belden.com @beldeninc15Adjusted results. Please see appendix for comparable GAAP results.
1. Constant currency. 2. ROIC excluding excess cash.
3-YEAR FINANCIAL GOALS
(2017 – 2020)
Revenue
CAGR1 5-7%
EBITDA Margin 20-22%
Free Cash Flow
CAGR13-15%
Return on
Invested Capital213-15%
3-Year Financial Goals
| ©2017 Belden Inc. belden.com @beldeninc16
Investment Thesis
Attractive Valuation3
Proven Track Record 2005-2017
EBITDA Margin Upside
Secular Tailwinds
Accretive M&A Potential
Revenue +6% CAGR to $2.4B | EBITDA +970 bps to 18.2% | FCF +15% CAGR to $192M | ROIC +910 bps to 13.2%
15.5% in 2014 | 18.2% in 2017 | 20-22% goal by 2020
Industrial Automation | Smart Buildings | Video Consumption | Bandwidth
$1.7B dry powder available 2018 – 20201 | ~$0.16 -$0.18 EPS accretion per $100M deployed2
7.5x EV/EBITDA | 9x P/E | 8% FCF Yield
Adjusted results. See investor.belden.com for reconciliation to comparable GAAP result.
1. Management’s best estimate. Estimated cash available for deployment from organic activities.
2. Expectations for year-one assuming 9 -10% ROIC.
3. Stock price as of 10/31/2018. Denominator based on 2018E
| ©2017 Belden Inc. belden.com @beldeninc17
Q3 2018 Earnings
| ©2017 Belden Inc. belden.com @beldeninc18
Q3 2018 Highlights
Adjusted results. See Appendix for reconciliation to comparable GAAP results..
All references to Earnings Per Share refer to adjusted net income per diluted share attributable to Belden common stockholders
• Revenues of $659.0M, increasing 6.0% year-over-year and
3.2% organically
• Record EBITDA of $126.7M, increasing 6.3% year-over-
year
• Record EPS of $1.72, increasing 15.4% year-over-year
• Updated full-year 2018 revenue guidance from $2.643 -
$2.673 billion to $2.595 - $2.615 billion and EPS guidance
from $6.28 - $6.48 to $6.00 - $6.10
| ©2017 Belden Inc. belden.com @beldeninc19
Revenue $266.9M
Organic Growth % (Y/Y) +6.2%
EBITDA Margin 20.1%
Revenue $392.1 M
Organic Growth % (Y/Y) +1.1%
EBITDA Margin 18.4%
Q3 2018 Segment Overview
Enterprise
Solutions
Industrial
Solutions
Key Markets
• Smart Buildings
• Final Mile Broadband
• Live Media Production
Key Markets
• Discrete Manufacturing
• Process Facilities
• Transportation
• Energy
| ©2017 Belden Inc. belden.com @beldeninc20
Q3 2018 Financial Summary
Adjusted results. See Appendix for reconciliation to comparable GAAP results.
(1) All references to Net Income refer to adjusted net income attributable to Belden
(2) All references to Earnings Per Share refer to adjusted net income per diluted share attributable to Belden common stockholders
Q3 2018 Q2 2018 Q3 2017
Revenue $659.0M $671.4M $621.7M
Gross profit $270.1M $268.9M $255.4M
Gross profit percentage 41.0% 40.0% 41.1%
EBITDA $126.7M $122.6M $119.2M
EBITDA percentage 19.2% 18.3% 19.2%
Net Income(1) $81.9M $72.6M $73.9M
Earnings Per Share(2) $1.72 $1.52 $1.49
| ©2017 Belden Inc. belden.com @beldeninc21
Q3 2018 Segment Results
Adjusted results. See Appendix for reconciliation to comparable GAAP results.
(1) Consolidated results include income / (loss) from our equity method investment, Non-operating pension costs and Eliminations
Enterprise
Solutions
Industrial
SolutionsConsolidated
Q3 2018
Revenue $392.1M $266.9M $659.0M
EBITDA(1) $72.2M $53.8M $126.7M
EBITDA Margin 18.4% 20.1% 19.2%
Q2 2018
Revenue $399.7M $271.7M $671.4M
EBITDA(1) $70.3M $53.2M $122.6M
EBITDA Margin 17.6% 19.6% 18.3%
Q3 2017
Revenue $360.8M $260.9M $621.7M
EBITDA(1) $62.1M $55.7M $119.2M
EBITDA Margin 17.2% 21.4% 19.2%
| ©2017 Belden Inc. belden.com @beldeninc22
Q3 2018 Balance Sheet Highlights
(1) Net leverage is 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.
Q3 2018 Q2 2018 Q3 2017
Cash and Cash Equivalents $329M $261M $461M
Working Capital Turns 6.2x 6.4x 7.1x
Days Sales Outstanding 66 63 64
Days Payable Outstanding 93 87 89
Inventory Turns 4.9x 5.2x 5.8x
PP&E Turns 7.5x 7.7x 7.7x
Total Debt Principal Amount $1.53B $1.51B $1.55B
Net Leverage(1) 2.5x 2.7x 2.3x
| ©2017 Belden Inc. belden.com @beldeninc23
Q3 2018 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.
(4) Includes a $19.3 million payoff of debt acquired from the acquisition of Snell Advanced Media (“SAM”).
Q3 2018 Q3 2017 YTD 2018 YTD 2017
Cash flows from operating
activities$130.2M $68.8M $100.9M $103.6M
Less: Net capital expenditures(1) $23.9M $11.2M $61.9M $33.4M
Free cash flow(2) $106.3M $57.6M $39.0M $70.2M
Cash used to acquire
businesses(3)(4)
$0.0M $0.0M $84.6M $166.9M
Dividends / Share Repurchases $35.4M $22.3M $157.4M $44.0M
| ©2017 Belden Inc. belden.com @beldeninc24
Outlook
(1) Adjusted Outlook. See Appendix for reconciliation to comparable GAAP outlook.
(2) All references to Earnings Per Share refer to adjusted net income per diluted share attributable to Belden common stockholders.
Q4 2018
• Revenue of $657 - $677 million
• Earnings Per Share(1)(2) of $1.60 - $1.70
2018 Full Year
• Revenue of $2.595- $2.615 billion
• Earnings Per Share(1)(2) of $6.00 - $6.10
| ©2017 Belden Inc. belden.com @beldeninc25
Appendix
| ©2017 Belden Inc. belden.com @beldeninc26
Select Belden Peers
ENTERPRISE INDUSTRIAL
CommScope (COMM): Smart Buildings
Corning (GLW): Smart Buildings
Evertz (ET-T): Live Media Production
Harmonic (HLIT): Live Media Production
AVID (AVID): Live Media Production
Amphenol (APH): Cable and
Connectivity Products
TE Connectivity (TEL): Connectivity
Products
Cisco (CSCO): Networking Products
Qualys (QLYS): Security Products
Rockwell (ROK): Industrial Markets
| ©2017 Belden Inc. belden.com @beldeninc27
Industrial Automation
Sources: “The Skills Gap in Manufacturing”, Deloitte, 2015; Bureau of Economic Analysis;
Eurostat; Federal Reserve.
DRIVING IP ADOPTION
IP BENEFITS IP CHALLENGES
TRENDS ASSET REPLACEMENT INDICATORS
FLEXIBILITY …
LABOR SUBSTITUTION …
SHORTER LEAD-TIMES
LOWER COST OF CAPITAL
AGING EQUIPMENT …
CAPACITY UTILIZATION AT MULTI-YEAR HIGHS …
84%
EU
77%
UNITED STATESPRODUCT CUSTOMIZATION
2025
2MUnfilled
manufacturing
jobs globally
2015
SKILLS GAP AND WAGE INFLATION
Connect new technologies with legacy systems
Collaboration between operational
and information technologies
Manage security risks
Factory connected to the enterprise
Remote access
Open standards
2016 = 7.7 years
Average age of manufacturing assets highest since 1951
| ©2017 Belden Inc. belden.com @beldeninc28
Smart Buildings
Driving Investment …
High-Spec Copper CablingCat 6A
+26% CAGR1
(2015 – 2021)
ConnectivityLAN Connectivity Points
+3% CAGR1
(2015 – 2021)
Audio/
Visual
Lighting
Fire/
Alarm
HVAC
Control/
Instrumentation
Local Area
Network
Security
1. “Convergence and Digitization of Commercial Buildings in U.S.”, BSRIA, May 2017.
Deliver New User
Experiences
Enable Business
Analytics
Improve Efficiency
and Sustainability
| ©2017 Belden Inc. belden.com @beldeninc29
CREATING CHALLENGES
FOR OUR CUSTOMERS
LIVE BROADCAST63% of television ad spend is allocated to
live events vs. pre-produced content
BROADCASTERS NEED TO ADOPT IP TECHNOLOGIES
TO ADDRESS THESE CHALLENGES
Video Consumption
VIDEO CONSUMPTION
IS CHANGING
VIDEO QUALITY51% CAGR of UHD televisions installed
(2016 – 2021)
VIDEO FORMATS26% CAGR of over-the-top subscribers
(2014 – 2017)
UHD CONTENT CREATION
Requires higher bandwidth than
legacy protocols can provide
DELIVERING CONTENT ON
MULTIPLE PLATFORMS
Challenges existing workflow
Sources: Cisco VNI, 2017; Bloomberg; Major Networks.
PRODUCING LIVE EVENTS
Is complex and has the highest
cost of failure
| ©2017 Belden Inc. belden.com @beldeninc30
Bandwidth
Creating Opportunityfor our Customers …
… Driving Significant Investment
Internet traffic will grow 3x by 2021
Video traffic will exceed 80% in 2021
Today,the number of
NETWORKED
DEVICES
MSO revenue
per high-speed data user
= 2XGlobal
Population
2014 2017 2020E
$44.94
$52.75
$60.80
Sources: Cisco VNI, 2017; SNL Global Market Intelligence, 2017; Sell-side consensus estimates as of 10/9/17.
By 2021,the number of
NETWORKED
DEVICES
= 4XGlobal
Population
73% of internet traffic today is video
Global fixed broadband
speeds will double by 2021
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