2016 investor deck february

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

February 2016

BeldenLeading 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 IndustrialConnectivity

Industrial ITSolutions

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

• Routers and Interfaces

• Broadcast Connectors

• 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 EnterpriseConnectivity

IndustrialConnectivity Industrial IT Network

Security

Market Size1 $4.9B $3.3B $4.0B $1.3B $4.3B

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

Market Share1 19% 14% 16% 20% 4%

2015 Revenue $900.6M $445.2M $603.3M $244.3M $167.1M

2015 EBITDA Margin 15.8% 16.1% 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% 17.1% 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

• >15% Cash ROIC on acquisitions made before 2012

2015 ROIC* = 12.0%

Deploy capital to highest ROIC project

* ROIC excluding excess cash


Connectivity Peers

Cable Peers

2005 2006 2007 2008 2009 2010 2011 2012 2013 2014 201510.0%

20.0%

30.0%

40.0%

50.0%

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


2010 2011 2012 2013 2014 201510%

12%

14%

16%

18%

20%

Consistent Margin Progression

We have shown the ability to consistently improve margins in a low-growth environment

EBITDAMarginGoal:18 - 20%

11.9% 11.7%

13.0%

15.7% 15.5%

EBITDA Margin (%)1

17.0%Peer Average2

1. Non-GAAP results. See appendix for reconciliation to comparable GAAP results2. Peer Average margin based on 2015 expectations


10 Year EPS Growth

Peer A S&P 500 Peer B Peer C Peer D Belden0%

5%

10%

15%

20%

25%

Since 2005, Belden has generated upper quartile EPS growth of 22%

1. Peer EPS based on 2015 expectations


High Quality Earnings: Free Cash Flow Generation

Delivering 21.4% CAGR in free cash flow per share

2005 2006 2007 2008 2009 2010 2011 2012 2013 2014 20150

1

2

3

4

5

6

FCF per Share1

1. Non-GAAP results. See appendix for reconciliation to comparable GAAP results2. 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

$4.942

$3.03 $3.16

$4.28$4.46

21.4% CAGR


The Cost of Capital Has Decreased

Belden’s cost of capital has benefited from a more balanced capital structure

2010 2011 2012 2013 2014 2015 20160.0x

0.5x

1.0x

1.5x

2.0x

2.5x

3.0x

3.5x

4.0x

5.0%

7.0%

9.0%

11.0%

13.0%

0.9x0.7x

3.0x

2.2x

2.6x

3.6x

3.0x

12.1% 12.2%

10.7%

9.3%9.7%

8.5% 8.5%

Net Leverage Ratio WACC


2010 2011 2012 2013 2014 2015 20160.0x

1.0x

2.0x

3.0x

4.0x

5.0x

6.0x

4.2x

4.9x 4.9x 4.7x 4.6x4.2x

4.7x

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 andconnectivity

Network Security Security

Broadcast

Enterprise

Industrial

Networking

Connectivity

Cable


Transformation To Drive Continued Margin Expansion

2015 Leverage Mix Productivity Inorganic 201814%

16%

18%

20%

140 bps 20 bps

110 bps 20 bps 20.0%

17.1%


Opportunity Exists to Drive Increased Shareholder Value*

4x

8x

12x

16xEV

/EB

ITD

A M

ultip

le

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

EBITDA-Capex Margin

A

B

C

Increased free cash flow margin drives multiple expansion

Legacy Peers

EC D

A

B

Best In ClassPeers

F

R2 = 0.8165

2008

Today


Business Model GoalsTHREE 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 Growth1-3%

Share Capture2%

Inorganic Activity2%

TotalGrowth5-7%

=+ +


Continued Focus on Productivity ImprovementIndustrial 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

Impact2016 $23M $6M $0.11

2017 $15M $17M $0.32

2018 - $22M $0.41


$2,363 ($68) $0 - $50 $2,295 -

$2,345

$4.85

$0.08 $0.04

$0.00 - $0.30 $0.29 $5.10 - $5.40

Revenues and EPS BridgeAdjusted Revenue ($M)

Adjusted EPS


2016 Assumptions

Copper price of $2.05 for 2016 versus $2.50 in 2015

Euro of $1.05 in 2016 vs. $1.11 in 2015

Interest expenses of ~$95 million for 2016

Tax rate of 20% for 2016

$0.29 of favorable impact to EPS from productivity improvement programs

1: Source: Approximate IMF Crude Oil forecast.


Q1 and Full Year 2016 Guidance*

Fiscal Year 2016

Revenues of between

$530 and $550 million

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

Q1 2016

EPS of between $0.90 and $1.00 per

diluted share

Revenues of between $2.295 and

$2.345 billion

EPS of between $5.10 and $5.40 per

diluted share


GAAP to Non-GAAP Reconciliation

Year Ended Three Months EndedDecember 31, 2016 April 3, 2016

Adjusted revenues $2.295 - $2.345 billion $530 - $550 millionDeferred revenue adjustments ($7 million) ($2 million)

GAAP revenues $2.288 - $2.338 billion $528 - $548 million

Adjusted income from continuing operations per diluted share attributable to Belden stockholders $5.10 - $5.40 $0.90 - $1.00Amortization of intangible assets ($1.71) ($0.45)Severance, restructuring, and acquisition integration costs ($0.60) ($0.30)Deferred gross profit adjustments ($0.11) ($0.04)

GAAP income from continuing operations per diluted share attributable to Belden stockholders $2.68 - $2.98 $0.11 - $0.21

Our guidance for revenues and income from continuing operations per diluted share attributable to Belden stockholders is based upon information currentlyavailable regarding events and conditions that will impact our future operating results. In particular, our results are subject to the factors listed under the SafeHarbor Statement in this slide presentation. 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) recognizedon the disposal of tangible assets, gains (losses) on debt extinguishment, discontinued operations, and other gains (losses) related to events or conditions that arenot yet known.


Q4 2015 Earnings Release Conference Call Presentation


• Delivered revenues of $602.5 million;

• Expanded gross profit margins to a record 43.1%, up 570 basis points year over year;

• Generated record EBITDA of $114.6 million, an improvement of 14.9% year over year, representing 19.0% of revenue in the quarter;

• Achieved record EPS of $1.63 in the quarter, increasing more than 31% from the prior year period; and

• Paid down $150 million of long-term debt during the period.

Q4 2015 Highlights

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


• Achieved revenues of $2.36 billion, an increase of 7.4% year-over-year in constant currency;

• Expanded gross profit margins to a record 41.6%, increasing 460 basis points from 37.0% in the year-ago period;

• Drove EBITDA margins to a record 17.0%, increasing 150 basis points from 15.5% in the year-ago period; and

• Delivered record adjusted EPS of $4.98, up 17.7% over last year’s $4.23.

FY 2015 Highlights



4th Quarter Segment Overview

Revenue $48.9M

EBITDA Margin 30.0%

Revenue $62.8M

EBITDA Margin 18.4%

Revenue $109.4M

EBITDA Margin 16.7%

Revenue $141.8M

EBITDA Margin 16.8%

Revenue $239.5M

EBITDA Margin 19.5%Broadcast

EnterpriseConnectivity

IndustrialConnectivity

IndustrialIT

NetworkSecurity

Camera MountedFiber Solutions

Signal Processing& Routing

Precision A/VCable and Connectivity

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 AssessmentTargeted Attack Detection Threat Analytics



Q4 2015 Financial Summary


Q4 2015 Q3 2015 Q4 2014

Revenue $602.5M $590.1M $613.7M

Gross profit $259.6M $240.7M $229.4M

Gross profit percentage 43.1% 40.8% 37.4%

EBITDA $114.6M $97.5M $99.8M

EBITDA percentage 19.0% 16.5% 16.3%

Income from continuing operations $69.3M $48.9M $ 53.9M

Income from continuing operations per diluted share $1.63 $1.14 $1.24


Segment Results

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

Q4 2015Revenue $239.5M $109.4M $141.8M $62.8M $48.9M $602.5M

EBITDA(1) $46.7M $18.3M $23.9M $11.5M $14.7M $114.6M

EBITDA Margin 19.5% 16.7% 16.8% 18.4% 30.0% 19.0%

Q3 2015Revenue $228.1M $113.8M $147.7M $59.2M $41.4M $590.1M

EBITDA(1) $34.9M $18.2M $23.2M $10.5M $11.2M $97.5M

EBITDA Margin 15.3% 16.0% 15.7% 17.7% 27.2% 16.5%

Q4 2014Revenue $253.2M $110.8M $173.7M $76.0M $613.7M

EBITDA(1) $43.4M $14.5M $26.5M $15.9M $99.8M

EBITDA Margin 17.5% 13.1% 15.2% 20.9% 16.3%


Q4 2015 Balance Sheet Highlights

Q4 2015 Q3 2015 Q4 2014

Cash and cash equivalents $217M $242M $741M

Inventory turns 7.1x 6.7x 6.9x

Days sales outstanding 62 days 63 days 59 days

PP&E turns 7.7x 7.4x 7.7x

Total debt principal amount $1.75B $1.91B $1.77B

Net Leverage 3.6x1 4.0x 2.7x

(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. The net leverage calculation for Q3 2015 includes Adjusted EBITDA for companies acquired in Q4 2014 and Q1 2015.


Cash Flow Highlights

(1) Adjusted for non-recurring cash payments of $37.7M in 2014 ($15.9M in Q4 2014) related to the integration of Grass Valley. See Appendix for reconciliation to comparable GAAP results.(2) Capital expenditures, net of proceeds from the disposal of tangible assets. See Appendix for reconciliation.(3) 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.(4) Net of cash acquired.

Q4 2015 Q4 2014 FY 2015 FY 2014

Cash flows from operating activities $ 144.4M $ 145.2M(1) $236.4M $ 231.7M(1)

Less: Net capital expenditures(2) $ 15.5M $ 14.3M $ 54.4M $ 43.6M

Free cash flow (3) $ 129.0M $ 130.9M $ 182.0M $ 188.2M

Cash used to acquire businesses(4) $ 0.0M $ 34.8M $ 695.3M $ 347.8M

Share repurchases and dividends $ 2.0M $ 32.2M $ 47.4M $ 100.9M


Q1 2016(1)

• Revenue of $530 - $550 million

• Income from continuing operations per diluted share of $0.90 - $1.00

Outlook

2016 Full Year(1)

• Revenue of $2.295 - $2.345 billion

• Income from continuing operations per diluted share of $5.10 - $5.40

(1) Adjusted Outlook. See Appendix for reconciliation to comparable GAAP outlook.

Investor Relations

2016 investor deck february