1q 2019 highlights and products. technology. operating...

Products. Technology. Services. Delivered Globally.

1Q 2019 Highlights andOperating Results

Build. Connect. Power. Protect. Services. Worldwide.

2© 2019 Anixter Inc.

Table of Contents

Page

3 Safe Harbor Statement and Non-GAAP Financial Measures

4 Sales Overview

9 Overview of Financial Performance and Trends

13 Segment Results and Trends

16 Working Capital and Adjusted ROTC

17 Leverage Metrics

18 Outlook

23 Appendix


Safe Harbor Statement and Non-GAAP Financial MeasuresSafe Harbor StatementThe statements in this release other than historical facts are forward-looking statements made in reliance upon the safe harbor of the Private Securities Litigation Reform Act of 1995. Theseforward-looking statements are subject to a number of factors that could cause our actual results to differ materially from what is indicated here. These factors include but are not limited togeneral economic conditions, the level of customer demand particularly for capital projects in the markets we serve, changes in supplier relationships or in supplier sales strategies or financialviability, risks associated with the sale of nonconforming products and services, political, economic or currency risks related to foreign operations, inventory obsolescence, copper pricefluctuations, customer viability, risks associated with accounts receivable, risks associated with pension expense and funding, the impact of regulation and regulatory, investigative and legalproceedings and legal compliance risks, information security risks, disruption or failure of information systems, disruptions to logistics capability or supply chain, risks associated withsubstantial debt and restrictions contained in financial and operating covenants in our debt agreements, the impact and the uncertainty concerning the timing and terms of the withdrawalby the United Kingdom from the European Union, unanticipated changes in our tax provision and tax liabilities related to the enactment of the Tax Cuts and Jobs Act, and risks associatedwith integration of acquired companies, including, but not limited to, the risk that the acquisitions may not provide us with the synergies or other benefits that were anticipated. Theseuncertainties may cause our actual results to be materially different than those expressed in any forward looking statements. We do not undertake to update any forward looking statements.Please see our Securities and Exchange Commission (“SEC”) filings for more information.

Non-GAAP Financial MeasuresIn addition to the results provided in accordance with U.S. Generally Accepted Accounting Principles (“GAAP”) above, this release includes certain financial measures computed using non-GAAP components as defined by the SEC. Specifically, net sales comparisons to the prior corresponding period, both worldwide and in relevant segments, are discussed in this releaseboth on an U.S. GAAP and non-GAAP basis. We believe that by providing non-GAAP organic growth, which adjusts for the impact of acquisitions (when applicable), foreign exchangefluctuations, copper prices and the number of billing days (when applicable), both management and investors are provided with meaningful supplemental sales information to understandand analyze our underlying trends and other aspects of our financial performance. Historically and from time to time, we may also exclude other items from reported financial results (e.g.,impairment charges, inventory adjustments, restructuring charges, tax items, currency devaluations, pension settlements, etc.) in presenting adjusted operating expense, adjusted operatingincome, adjusted income taxes and adjusted net income so that both management and financial statement users can use these non-GAAP financial measures to better understand andevaluate our performance period over period and to analyze the underlying trends of our business. We have also excluded amortization of intangible assets associated with purchaseaccounting from acquisitions from the adjusted amounts for comparison of the non-GAAP financial measures period over period.

EBITDA is defined as net income before interest, income taxes, depreciation and amortization. Adjusted EBITDA is defined as EBITDA before foreign exchange and other non-operatingexpense and non-cash stock-based compensation, excluding the other items from reported financial results, as defined above. Adjusted EBITDA leverage is defined as the percentagechange in Adjusted EBITDA divided by the percentage change in net sales. We believe that adjusted operating income, EBITDA, Adjusted EBITDA, and Adjusted EBITDA leverage providerelevant and useful information, which is widely used by analysts, investors and competitors in our industry as well as by our management in assessing both consolidated and businesssegment performance. Adjusted operating income provides an understanding of the results from the primary operations of our business by excluding the effects of certain items that do notreflect the ordinary earnings of our operations. We use adjusted operating income to evaluate our period-over-period operating performance because we believe this provides a morecomparable measure of our continuing business excluding certain items that are not reflective of expected ongoing operations. This measure may be useful to an investor in evaluating theunderlying performance of our business. EBITDA provides us with an understanding of earnings before the impact of investing and financing charges and income taxes. Adjusted EBITDAfurther excludes the effects of foreign exchange and other non-cash stock-based compensation, and certain items that do not reflect the ordinary earnings of our operations and that arealso excluded for purposes of calculating adjusted net income, adjusted earnings per share and adjusted operating income. EBITDA and Adjusted EBITDA are used by our managementfor various purposes including as measures of performance of our operating entities and as a basis for strategic planning and forecasting. Adjusted EBITDA and Adjusted EBITDA leveragemay be useful to an investor because this measure is widely used to evaluate a company’s operating performance without regard to items excluded from the calculation of such measure,which can vary substantially from company to company depending on the accounting methods, book value of assets, capital structure and the method by which the assets were acquired,among other factors. They are not, however, intended as an alternative measure of operating results or cash flow from operations as determined in accordance with U.S. GAAP.

Non-GAAP financial measures provide insight into selected financial information and should be evaluated in the context in which they are presented. These non-GAAP financial measureshave limitations as analytical tools, and should not be considered in isolation from, or as a substitute for, financial information presented in compliance with GAAP, and non-GAAP financialmeasures as reported by us may not be comparable to similarly titled amounts reported by other companies. The non-GAAP financial measures should be considered in conjunction withthe Condensed Consolidated Financial Statements, including the related notes, and Management’s Discussion and Analysis of Financial Condition and Results of Operations included inthis release. Management does not use these non-GAAP financial measures for any purpose other than the reasons stated above.


Sales Overview

1Q19 Segment and Geographic Mix

NSS 53%

EES 27%

UPS 20%

North America81%

EMEA7%Emerging

Markets12%

1Q19 Sales: $2.1 billion

YOY Sales Growth

GAAP Organic

North America 5.3% 6.4%EMEA (9.5)% (3.8)%

Emerging Markets 41.0% 27.6%Anixter International 7.3% 7.7%

YOY Sales Growth

GAAP Organic

Network and Security Solutions (NSS) 11.8% 10.7%Electrical and Electronic Solutions (EES) (0.4)% 2.3%

Utility Power Solutions (UPS) 7.2% 7.9%Anixter International 7.3% 7.7%


GAAP Sales Up 7.3%, Organic Sales Growth of 7.7%

2,079

2,029

1,979

1,929

1,879

$M

illio

ns

1Q18 Acquisition 1Q18Adjusted

Currency Copper OrganicGrowth

1Q19

$1,964

$27 $1,991

$(30) $(6)

$154 $2,109

Sales Overview

1Q19 Sales Growth

Sales Growth Trend

2,200

2,000

1,800

1,600

1,400

1,200

GA

AP

Sal

es($

Mill

ions

)

Org

anic

Sal

esG

row

th%

1Q17 2Q17 3Q17 4Q17 1Q18 2Q18 3Q18 4Q18 1Q19

$1,896$2,001 $2,016 $2,014

$1,964

$2,138 $2,179$2,119 $2,109

4.0%

2.6%

1.5%

4.2%

1.6%

4.9%

7.4%

5.1%

7.7%

• Record first quarter sales of $2.1B

• Growth driven by strong NSS results, fueledby global accounts and our security businessas well as growth with IOU and Public Powercustomers in our UPS segment.

• Organic sales growth of 7.7% reflects organicgrowth in all segments and in North Americaand Emerging Markets geographies

• 1Q19 marks the 10th consecutive quarter oforganic growth


Sales Overview

Network & Security Solutions Sales

• NSS sales increased 11.8% to $1,112M,driven by our security acquisitions that closedin 2Q18, global accounts, complex integratedsupply programs and growth initiativesincluding security, wireless and professionalaudio video

• Strong growth in North America and EmergingMarkets partially offset by a decline in EMEA

NSS Organic Sales Growth Trend

10.0%

8.0%

6.0%

4.0%

2.0%

0.0%

-2.0%

YO

YC

hang

e

1Q18 2Q18 3Q18 4Q18 1Q19

(0.5)%

4.7%

6.4%

4.7%

10.7%

NSS GAAP Sales Up 11.8%, Organic Sales Growth of 10.7%

1,150

1,100

1,050

1,000

950

$M

illio

ns

1Q18 Acquisition 1Q18Adjusted

FX OrganicGrowth

1Q19

$995

$27 $1,022

$(19)

$109 $1,112

• NSS organic sales growth was 10.7%, whichmarks the 4th quarter of consecutive organicgrowth for NSS

• Organic growth was broad based, and wasdriven by global accounts, complexintegrated supply programs, as well assecurity, wireless and professional AVcustomers

• NSS security sales, which representapproximately 43% of segment sales,increased 15.3% to $476M, driven bysecurity acquisitions and organic growth


Sales Overview

Electrical & Electronic Solutions Sales

EES Organic Sales Growth Trend

8%

5%

2%

-1%

YO

YG

row

th

1Q18 2Q18 3Q18 4Q18 1Q19

3.7%4.7%

9.0%

0.5% 2.3%

EES GAAP Sales (0.4)%, Organic Sales Growth of 2.3%

575

550

525

$M

illio

ns

1Q18 Currency Copper OrganicGrowth

1Q19

$568

$(9)$(6)

$13 $566

• EES sales decreased 0.4% to $566M• Currency and copper were headwinds for

the quarter• Flat sales in North America and declining

sales in EMEA were partially offset bygrowth in Emerging Markets

• EES organic sales growth was 2.3%, whichmarks the 6th consecutive quarter oforganic growth for EES

• Organic growth with Commercial andIndustrial (C&I) customers was partiallyoffset by a decline with OEM customers.


• UPS sales increased 7.2% to $430M,driven by broad-based growth acrossUS and Canada

Sales Overview

Utility Power Solutions Sales

UPS GAAP Sales up 7.2%, Organic Sales Growth of 7.9%

430

410

390

370

350

$M

illio

ns

1Q18 Currency Copper OrganicGrowth

1Q19

$401

$(3)

$0

$32 $430

UPS Organic Sales Growth Trend

12%

8%

4%

0%

YO

YG

row

th

1Q18 2Q18 3Q18 4Q18 1Q19

4.0%

5.8%

8.1%

13.3%

7.9%

• UPS organic sales growth was 7.9%,which marks the 9th consecutive quarterof organic sales growth for UPS

• Organic growth was broad based, withstrong sales results in IOU and PublicPower


Overview of Financial Performance and Trends

Gross Margin Trend

• Gross profit increased 8.9%, to $419M, resulting in gross margin of 19.9% • Gross margin increased 30 basis points, reflecting recently implemented sales actions to improve

margins• Sequential decrease of 40 basis points driven by normal seasonal trend from Q4 to Q1 as well as

customer and segment mix.

Gross Margin Trend

445

420

395

370

Gro

ssP

rofit

($M

illio

ns)

Gro

ssM

argi

n%

1Q17 2Q17 3Q17 4Q17 1Q18 2Q18 3Q18 4Q18 1Q19

$380

$396 $397 $398

$385

$419

$424

$430

$419

20.0%19.8% 19.7% 19.8%

19.6% 19.6% 19.5%

20.3%

19.9%



Operating Expense Trend

Operating Expense (GAAP) Opex as % of sales (GAAP)

Operating Expense Trend (GAAP)

375

350

325

300

275

$M

illio

ns

%of

Sal

es

1Q18 2Q18 3Q18 4Q18 1Q19

$323

$348$335

$343 $344

16.5% 16.3%15.4%

16.2% 16.3%• 1Q19 operating expense was 16.3% of

sales, a 20 bps improvement versus prioryear

• 1Q19 operating expense increased by$21.1M, driven by approximately $7.5million associated with the 2Q18 securityacquisitions, $7.0 million related to ourinvestment in innovation and businesstransformation strategies, combined withhigher volume-related costs

Adj Operating Expense Adj Opex as % of sales

Operating Expense Trend (Non-GAAP)

350

325

300

275

$M

illio

ns

%of

Sal

es

1Q18 2Q18 3Q18 4Q18 1Q19

$313

$324 $324

$334 $336

16.0%15.1% 14.9%

15.8% 15.9%

• Adjusted operating expense increased7.1%, and decreased as a percentage ofsales by 10 basis points

• On a sequential basis, adjusted operatingexpense increased by $2.0M, an increaseas a percentage of sales of 10 basis points



Operating Income Trend

Operating Income (GAAP) Operating Margin (GAAP)

Operating Income and Operating Margin Trend (GAAP)

120

100

80

60

40

$M

illio

ns

%of

Sal

es

1Q18 2Q18 3Q18 4Q18 1Q19

$62$71

$90 $87

$75

3.1% 3.3%

4.1% 4.1%3.5%

Adj Operating Income Adj Operating Margin

Operating Income and Operating Margin Trend (Non-GAAP)

120

100

80

60

40

$M

illio

ns

%of

Sal

es

1Q18 2Q18 3Q18 4Q18 1Q19

$71

$96 $100 $96

$83

3.6%

4.5% 4.6% 4.5%3.9%

• Adjusted operating income of $83.1Mcompares to $71.4M. The correspondingadjusted operating margin of 3.9%compares to 3.6%

• Sequentially, adjusted operating income of$83.1M decreased from $96.2M. Thecorresponding adjusted operating marginof 3.9% compares to 4.5%

• Operating income increased 21.1% to$74.6M

• The corresponding operating margin of3.5% compares to 3.1%, a 40 basis pointimprovement due to higher gross marginsand strong operating expense discipline



Net Income and Adjusted EBITDA Trend

Net Income and Net Margin Trend (GAAP)

60

45

30

15

0

Net

Inco

me

($M

illio

ns)

Net

Mar

gin

(%)

1Q18 2Q18 3Q18 4Q18 1Q19

$32$35

$48$42

$39

1.6% 1.6%2.2% 2.0% 1.9%

Adjusted EBITDA and Adjusted EBITDA Margin Trend

150

125

100

75

50

Adj

EB

ITD

A($

Mill

ions

)

Adj

EB

ITD

A%

1Q18 2Q18 3Q18 4Q18 1Q19

$83

$108 $111 $109

$97

4.2%

5.0% 5.1% 5.1%

4.6%

• The increase in net income from $32.1M to$39.1M was driven primarily by volumegrowth combined with gross marginimprovement

• The increase in adjusted EBITDA was drivenby volume growth and gross marginimprovement, offset by higher operatingexpense driven by innovation and businesstransformation

• Adjusted EBITDA margin of 4.6% comparesto 4.2%

• Sequentially, adjusted EBITDA margin of4.6% compares to 5.1%

Adjusted EBITDA excludes operating expense of $8.5M pre-tax and $6.3M after-tax, comprised primarily ofamortization of intangible assets and a restructuring charge. Prior year adjusted EBITDA excluded operatingexpense of $9.8M pre-tax and $7.6M after-tax comprised of amortization of intangible assets. Please see slide25 for details.


Segment Results and Trends

NSS Operating Income and Adjusted EBITDA


NSS Operating Income and Operating Margin Trend (GAAP)

85

75

65

55

45

$M

illio

ns

Mar

gin

%

1Q18 2Q18 3Q18 4Q18 1Q19

$54

$66

$75$78

$71

5.4%6.0%

6.6% 6.9%6.4%

• NSS operating income increased 32.5% to$70.9M, driven by strong sales growth,gross margin improvement, and thesecurity acquisitions that closed in 2Q18

• The corresponding operating marginincreased 100 basis points to 6.4%, with~10 bps of margin improvement driven bythe acquisition

Adjusted EBITDA Adj EBITDA Margin

NSS Adjusted EBITDA and Adjusted EBITDA Margin

85

75

65

55

45

$M

illio

ns

Mar

gin

%

1Q18 2Q18 3Q18 4Q18 1Q19

$59

$76$82 $84

$78

5.9%6.9% 7.2% 7.5% 7.0%

• NSS adjusted EBITDA increased 33.3% to$78.0M

• The corresponding adjusted EBITDA marginof 7.0% compares to 5.9%, driven by strongvolume growth and gross marginimprovement

• Adjusted EBITDA leverage was 2.8x



EES Operating Income and Adjusted EBITDA

Adj EBITDA Adj EBITDA Margin

EES Adjusted EBITDA and Adjusted EBITDA Margin Trend

40

35

30

25

20

$M

illio

ns

Mar

gin

%

1Q18 2Q18 3Q18 4Q18 1Q19

$35

$40$37

$34 $33

6.1%6.7%

6.1% 5.9% 5.8%• EES adjusted EBITDA decreased 6.0%

to $32.6M • The corresponding adjusted EBITDA

margin decreased 30 basis points to5.8%, due primarily to lower volume


EES Operating Income and Operating Margin Trend (GAAP)

40

35

30

25

20

$M

illio

ns

Mar

gin

%

1Q18 2Q18 3Q18 4Q18 1Q19

$31

$36$34

$31$29

5.5%5.9% 5.7% 5.5%

5.1% • EES operating income decreased 7.2%to $29.1M

• The corresponding operating margindecreased 40 basis points to 5.1% due tolower sales volume


• UPS operating income of $18.5Mcompares to $16.4M

• The corresponding operating margin of4.3% increased from 4.1% due tooperating expense leverage.


UPS Operating Income and Adjusted EBITDA

Adj EBITDA Adj EBITDA margin

UPS Adjusted EBITDA and Adjusted EBITDA Margin Trend

30

25

20

15

$M

illio

ns

Mar

gin

%

1Q18 2Q18 3Q18 4Q18 1Q19

$21$23 $24

$26

$23

5.2% 5.3% 5.4%5.9%

5.3%


UPS Operating Income and Operating Margin Trend (GAAP)

25

20

15

10

$M

illio

ns

Mar

gin

%

1Q18 2Q18 3Q18 4Q18 1Q19

$16$18

$20 $21$19

4.1% 4.1%4.5%

4.9%4.3%

• UPS adjusted EBITDA of $22.7Mcompares to $20.9M.

• The corresponding adjusted EBITDAmargin improved 10 basis points to5.3%, driven by volume growth andstrong operating leverage

• Adjusted EBITDA leverage was 1.2x


Working Capital and Adjusted ROTC

Adjusted ROTC

Adj

RO

TC

1Q17 2Q17 3Q17 4Q17 1Q18 2Q18 3Q18 4Q18 1Q19

22.5%

26.6%

24.6%

26.9%

18.3%

25.7% 26.3%25.4%

19.6%

Working Capital as % of Sales

%of

Sal

es

1Q17 2Q17 3Q17 4Q17 1Q18 2Q18 3Q18 4Q18 1Q19

18.9%18.5%

18.2% 18.4%

20.0%

17.8%17.4%

18.2%

19.6%

• Working capital ratio of 19.6% improved 40basis points, driven by ongoing workingcapital initiatives

• Working Capital as a Percent of Sales isdefined as the net of current assets lesscurrent liabilities divided by annualizedsales

• Adjusted ROTC of 19.6% compares to18.3% in 1Q18

• Adjusted Return on Tangible Capital isdefined as annualized adjusted operatingincome - Non-GAAP divided by averagetangible capital excluding right-of-useoperating lease assets related to the 1Q2019 adoption of ASC 842, Leases


Debt / Adjusted EBITDA

4.5x

4.0x

3.5x

3.0x

2.5x

2.0x

1.5x2001 2002 2003 2004 2005 2006 2007 2008 2009 2010 2011 2012 2013 2014 2015* 2016 2017 2018 1Q 19

2.3

3.9 4.0

2.6

2.9

2.22.0

2.3

3.4

2.8

2.0

2.42.1

2.9

3.83.5

3.1 3.03.2

Leverage Metrics

Strategic Leverage Targets

Debt-to-Capital

60%

55%

50%

45%

40%

35%

30%2001 2002 2003 2004 2005 2006 2007 2008 2009 2010 2011 2012 2013 2014 2015 2016 2017 2018 1Q 19

41% 41% 41%35%

47%

46% 46%

51%

45%

47%

45%

50%

45%

52%

58%

52%

46%44%

45.8%

*2015 includes 12 months of Power Solutions earnings on a pro forma basis

Target range:2.5x - 3.0x

Target range:45% - 50%


Outlook

Impact of Currency, Copper and Acquisition on1Q19 Sales

$ millions 1Q19

Prior Outlook Actual

Organic sales growth 3% - 5% 7.7%

Currency $(25 - 30) $(30.3)

Copper $(10 - 15) $(6.4)

Acquisition of security businesses ~$25 $27.0


Outlook

Estimated Sales Impacts of Currency, Copper andAcquisition

*Currency outlook estimated based on rates as of March 29, 2019 **Copper outlook estimated based on recent copper price of ~$2.90, which compares to 2Q18 average of $3.09 andFY18 average of $2.93

$ millions 2Q19 Outlook FY19 Outlook

Organic sales growth 3% - 5% 4% - 6.5%

Currency* $(20 - 25) $(55 - 65)

Copper** $(5 - 10) $(0 - 5)

Acquisition of security businesses ~$25 ~$50


Outlook

2019 Financial Goals

2019 Financial Goals

Above Market Sales Growth4% - 6.5% organic growth

Increased from previous FY outlook of 3 - 6%

Increase gross margin 20 - 40 bps improvement

Improve profitability1.25x - 1.50x adjusted EBITDA leverage

~5.0% adjusted EBITDA margin

Generate Strong Cash Flow

Operating Cash Flow $150 - $175 million

Capex $55 - $60 million

Free cash flow $95 - $115 million

Maintain strong balance sheetWorking capital ~18% of sales

Debt-to-Adjusted EBITDA: 2.5x - 3.0xDebt-to-Capital: 45% - 50%


Outlook

2019 Segment Adjusted EBITDA Goals

Adjusted EBITDA 2018 Actuals 2019 Segment Goals

NSS 6.9% 7.0 - 7.5%

EES 6.2% 6.0 - 6.5 %

UPS 5.5% 5.5 - 6.0%


Outlook

Long Term Financial Goals

Long Term FinancialOutlook

Organic Sales Growth 3% - 5%

Adjusted EBITDA Margin >6.0%

Adjusted EBITDA Leverage ~1.5x

Working Capital as a % of Sales <18%

Debt / Adjusted EBITDA 2.5x - 3.0x

Debt-to-total Capital 45% - 50%


Appendix


Glossary1H first half of fiscal year2H second half of fiscal yearB billionsM millionsFx foreign exchangeBps basis pointsGAAP U.S. GAAPNSS Network & Security SolutionsEES Electrical & Electronic SolutionsUPS Utility Power SolutionsETR effective tax rateOpex total operating expenseEMEA Europe, middle east and AfricaCALA Central and Latin AmericaAPAC Asia Pacific, Australia and ChinaOEM original equipment manufacturerIOU investor owned utilityMRO maintenance, repair and operationsYOY year-over-yearNA North AmericaVPY versus prior yearEM emerging marketsUSD U.S. dollarWC working capitalROTC return on tangible capitalFree Cash Flow cash from operations less capital expenditures


$ millions (except per share amounts)

Positive (Negative) Impact

Three Months Ended

March 29, 2019 March 30, 2018

Items impacting comparability of results:Items impacting operating expense and operating income:Amortization of intangible assets $(8.8) $(9.3)Acquisition and integration costs 0.3 (0.3)U.K. facility relocation costs — (0.2)Total of items impacting operating expense and operating income $(8.5) $(9.8)Total of items impacting pre-tax income $(8.5) $(9.8)

Items impacting income taxes:Tax impact of items impacting pre-tax income above $2.2 $2.2Total of items impacting income taxes $2.2 $2.2Net income impact of these items $(6.3) $(7.6)Diluted EPS impact of these items $(0.19) $(0.22)

Anixter International Inc

Items Impacting Comparability


$ millions (except per share amounts)

Positive (Negative) ImpactThree Months Ended

March 29, 2019 March 30, 2018

GAAP to Non-GAAP Net Income and EPS Reconciliation:Net income – GAAP $39.1 $32.1Items impacting net income 6.3 7.6Net income – Non-GAAP $45.4 $39.7

Diluted EPS – GAAP $1.14 $0.94Diluted EPS impact of these items 0.19 0.22Diluted EPS – Non-GAAP $1.33 $1.16


Items Impacting Comparability (continued)



EBITDA and Adjusted EBITDA Reconciliation

$ millions

EBITDA and Adjusted EBITDA

1Q 18 2Q 18 3Q 18 4Q 18 1Q 19

Net income $32.1 $34.8 $47.6 $41.8 $39.1Interest expense 18.2 19.0 19.3 19.8 20.4Income taxes 13.6 14.2 21.0 18.1 16.9Depreciation 7.4 7.7 8.2 8.4 9.3Amortization of intangible assets 9.3 9.7 9.6 8.7 8.8EBITDA $80.6 $85.4 $105.7 $96.8 $94.5

EBITDA as a % of sales 4.1% 4.0% 4.9% 4.6% 4.5%

EBITDA $80.6 $85.4 $105.7 $96.8 $94.5Foreign exchange and other non-operating exp (inc) (2.3) 3.3 1.6 7.6 (1.8)Stock-based compensation 4.6 7.2 3.2 3.9 4.1Restructuring charge — 9.2 0.2 — —Acquisition and integration costs 0.3 2.3 0.3 — (0.3)U.K. facility relocation costs 0.2 0.4 0.2 0.2 —Adjusted EBITDA $83.4 $107.8 $111.2 $108.5 $96.5Adjusted EBITDA as a % of sales 4.2% 5.0% 5.1% 5.1% 4.6%


Network & Security Solutions


$ millions


1Q 18 2Q 18 3Q 18 4Q 18 1Q 19

Net income $53.5 $66.1 $75.0 $77.6 $70.9Interest expense — — — — —Income taxes — — — — —Depreciation 0.8 0.9 0.9 1.2 2.4Amortization of intangible assets 3.8 4.2 5.0 4.0 4.1EBITDA $58.1 $71.2 $80.9 $82.8 $77.4


EBITDA $58.1 $71.2 $80.9 $82.8 $77.4Stock-based compensation 0.4 0.4 0.4 0.6 0.6U.K. facility relocation costs — 0.1 0.1 — —Restructuring charge — 2.1 — — —Acquisition and integration costs — 2.3 0.2 0.1 —Adjusted EBITDA $58.5 $76.1 $81.6 $83.5 $78.0Adjusted EBITDA as a % of sales 5.9% 6.9% 7.2% 7.5% 7.0%


Electrical & Electronic Solutions


$ millions


1Q 18 2Q 18 3Q 18 4Q 18 1Q 19



EBITDA $34.1 $38.4 $36.1 $33.1 $32.3Stock-based compensation 0.4 0.4 0.3 0.3 0.3Restructuring charge — 1.3 — — —U.K. facility relocation costs 0.2 0.3 0.1 0.2 —Adjusted EBITDA $34.7 $40.4 $36.5 $33.6 $32.6Adjusted EBITDA as a % of sales 6.1% 6.7% 6.1% 5.9% 5.8%


Utility Power Solutions


$ millionsEBITDA and Adjusted EBITDA

1Q 18 2Q 18 3Q 18 4Q 18 1Q 19



EBITDA $20.6 $22.2 $24.2 $25.3 $22.7Stock-based compensation 0.3 0.2 (0.1) 0.2 0.1Restructuring charge — 0.7 — — (0.1)Adjusted EBITDA $20.9 $23.1 $24.1 $25.5 $22.7Adjusted EBITDA as a % of sales 5.2% 5.3% 5.4% 5.9% 5.3%


Supplemental Information

Billing Days and Average Copper Prices

Billing Days

Q1 Q2 Q3 Q4 FY

2016 65 64 63 62 2542017 64 64 63 62 2532018 64 64 63 62 2532019 64 64 63 66 257

Average Copper Prices

Q1 Q2 Q3 Q4 FY

2015 $2.67 $2.77 $2.39 $2.20 $2.502016 $2.11 $2.13 $2.16 $2.39 $2.202017 $2.65 $2.58 $2.89 $3.10 $2.802018 $3.14 $3.09 $2.73 $2.75 $2.932019 $2.81

Increase (Decrease) $(0.33)% Increase (Decrease) (11)%

1q 2019 highlights and products. technology. operating...

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