2015 investor deck december v1

© 2015 Belden Inc. | belden.com | @BeldenInc

December 2015

BeldenLeading the Way to an Interconnected World

© 2015 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%

TTM Revenue2 $914.3M $446.6M $635.3M $257.5M $165.0M

TTM EBITDA Margin3 15.2% 15.2% 16.1% 18.5% 25.3%

Key Markets

• Broadband• Broadcast

Studios• Mobile

Production

• Finance• Healthcare• Commercial

Buildings

• Discrete• Process • Energy• Transportation

• Finance• Energy• Retail• Government• Industrial

1. Served addressable market.2. Based on 12 trailing months. Network Security figures are expected 2015 results.3. See appendix for additional operating segment information.


Financial Performance

Revenues (M) EBITDA Margin1 Return on Invested Capital2 Free Cash Flow4

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

2015E3 $2,363 17.1% 11.7% ~$180M

Variance 6.6% CAGR Improvement of 860 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. Based on midpoint of guidance.4. 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* = 11.7%

Deploy capital to highest ROIC project

* ROIC excluding excess cash based on mid-point of guidance


Connectivity Peers

Cable Peers

2005 2006 2007 2008 2009 2010 2011 2012 2013 2014 2015 YTD

10.0%

20.0%

30.0%

40.0%

50.0%

A Common Misperception About Belden

“Belden is a Wire and Cable company.”Improvement of

1,870 bps

Belden’s Gross Profit Margin Exceeds Connectivity Peers

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


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

17.1%2Peer Average

1. Non-GAAP results. See appendix for reconciliation to comparable GAAP results.2. 2015 based on mid-point of guidance


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%


High Quality Earnings: Free Cash Flow Generation

Delivering 22% 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. Based on

management’s best estimate.

$2.41

$3.07$3.38

$2.47

$0.71

$1.80

$4.872

$3.03 $3.16

$4.28$4.46

22% 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

3.1x12.1% 12.2%

10.7%

9.3%9.7%

8.8% 8.8%

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 4.4x

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 = 0.9705

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.


Outlook

Fiscal Year 2016*

Revenues of between

$2.295 billion and $2.345

billion

EPS of between

$5.10 and $5.40 per diluted share

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

Organic Growth of 0 to 2% Growth of 5 to 11%


GAAP to Non-GAAP Reconciliation

BELDEN INC.RECONCILIATION OF NON-GAAP MEASURES2016 REVENUES AND EARNINGS GUIDANCE

Year EndedDecember 31, 2016

Adjusted revenues $2.295 - $2.345 billionDeferred revenue adjustments ($7 million)

GAAP revenues $2.288 - $2.338 billion

Adjusted income from continuing operations per diluted share $5.10 - $5.40Amortization of intangible assets ($1.70)Severance, restructuring, and integration costs ($0.61)Deferred gross profit adjustments ($0.11)

GAAP income from continuing operations per diluted share $2.68 - $2.98

Our guidance for revenues and income from continuing operations per diluted share is based upon the extent of information currentlyavailable regarding events and conditions that will impact our future operating results for 2016. Our actual results are likely to beimpacted by other additional events for which information is not available, such as asset impairments, purchase accounting effectsrelated to acquisitions, severance and other restructuring 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 yetknown.


Appendix


Q3 2015 Earnings Release Conference Call Presentation


• Generated revenues of $590.1 million;• Achieved gross profit margins of 40.8%, increasing 320 basis

points from 37.6% in the year-ago period;• Expanded EBITDA margins to 16.5%, increasing 80 basis points

from 15.7% in the year-ago period;• Repurchased approximately 698,000 shares of Belden common

stock; and• Raised the expected range of full-year adjusted income from

continuing operations per diluted share to $4.80 – 4.90.

Q3 2015 Highlights

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


Revenue $41.4M

EBITDA Margin 27.2%

Revenue $59.2M

EBITDA Margin 17.7%

Revenue $113.8M

EBITDA Margin 16.0%

Revenue $147.7M

EBITDA Margin 15.7%

3rd Quarter Segment OverviewRevenue $228.1M

EBITDA Margin 15.3%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



Q3 2015 Q2 2015 Q3 2014

Revenue $590.1M $598.5M $613.1M

Gross profit $240.7M $249.5M $230.2M

Gross profit percentage 40.8% 41.7% 37.6%

EBITDA $97.5M $100.1M $96.3M

EBITDA percentage 16.5% 16.7% 15.7%

Income from continuing operations $48.9M $52.2M $50.4M

Income from continuing operations per diluted share $1.14 $1.21 $1.15

Q3 2015 Financial Summary



Segment Results

Broadcast Enterprise Connectivity

Industrial Connectivity Industrial IT Network

Security Consolidated

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%

Q2 2015Revenue $219.4M $117.3M $160.9M $61.3M $39.6M $598.5M

EBITDA(1) $31.6M $21.1M $28.7M $10.2M $8.8M $100.1M

EBITDA Margin 14.4% 18.0% 17.8% 16.6% 22.1% 16.7%

Q3 2014(2)

Revenue $256.6M $115.3M $171.1M $70.1M $613.1M

EBITDA(1) $38.5M $17.7M $26.5M $13.6M $96.3M

EBITDA Margin 15.0% 15.4% 15.5% 19.4% 15.7%

Adjusted results. See Appendix for reconciliation to comparable GAAP results.(1) Consolidated results include income from our equity method investment.(2) Consolidated results for these periods exclude the impact of Network Security as Tripwire acquisition was completed in 2015


Q3 2015 Q2 2015 Q3 2014

Cash and cash equivalents $241.9M $208.4M $449.1M

Inventory turns 6.7x 6.0X 7.0 x

Days sales outstanding 63 days 64 days 62 days

PP&E turns 7.4x 7.3x 7.6x

Total debt principal amount $1.91B $1.92B $1.54B

Balance Sheet Highlights


Cash Flow Highlights

(1) Adjusted for cash payment of $9.0M in Q3 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.

Q3 2015 Q2 2015 Q3 2014

Cash flows from operating activities $ 86.9M $ 53.3M $ 63.2M(1)

Less: Net capital expenditures(2) $ 11.8M $ 11.7M $ 8.3M

Free cash flow (3) $ 75.1M $ 41.6M $ 54.9M

Cash used to acquire businesses(4) $ 0.0M $ 0.0M $ 1.6M

Share repurchases and dividends $ 41.2M $ 2.1M $ 33.2M


Broadcast Platform

Broadcast Platform

Broadcast Cable

Broadband Connectivity

Broadcast IT

42%

40%

18%

15%

35%

50%

20%

20%

16%8%

10%

6%

21%

Routers and Interfaces

Digital Media & Workflow (i.e. Content manager, graphics, branding)

CamerasProduction

Switchers

Monitoring & Control

Editing Systems

Software & Services

Grass Valley

Content Creation68%

Playout32%

Switchers, Cameras, Editing, DM&W, Routers & Interfaces, S&S

Monitoring & Control, Routers & Interfaces,S&S, DM&W


Changes Within the Grass Valley Market

Combined, these dynamics have created a perfect storm in 2015

Decreasing U.S. Advertising

Spend Impacts Capex

Decisions

Increased Digital/OTT

Viewing Impacts Capex

Decisions

Macro-Economic Headwinds Impacting

International Demand


Restructured the business for regional outlook

$30M of annual savings

Macro-Economic Headwinds Impact International Demand

What is happening? What does this mean for Grass Valley?

International Revenues

• Stronger USD reducing purchasing power

• Govt-sponsored broadcasters impacted by austerity measures and oil prices

~60%of Grass Valley (20%)

Upgrade cycle is elongatedLong-Term

Short-Term

USD/EUR Oil Prices


Live48%

News20%

Playout32%

Decreased U.S. Advertising Spend Impacts Capex Decisions


68% of product portfolio to Live Environment

Content creation continues in high demandLong-

Term

Short-Term

Live48%

News20%

Playout32%

National TV Advertising Growth1

1. Standard Media Index


Increased Digital/OTT Viewing Impacts Capex Decisions


2009 2010 2011 2012 2013 2014E10%

30%

50%

70%

30%

43%

49%

58%61%

64%Percent of Video

Over Internet1

Organic investment in Digital Media applications

Content creation continues in high demandLong-

Term

Short-Term

Live48%

News20%

Playout32%

Investment shifted to OTT platforms by current GV customers

1. Sandvine Global Internet Phenomena Report

Live48%

News20%

Playout32%


However, OTT Consumption Requires FasterInternet Speeds

Online Mr

10 a.m.2 p.m.

6 p.m.10 p.m.

2 a.m.

Streaming64%

Current Home Infrastructure

We provide unique, patented solutions for in-home connectivity. As consumption increases, the home and distribution network will need upgrades.

Average BroadbandSpeed is 16 Mbps

48 Mbps Average Fixed Broadband speed by 2018

BeldenEntry

Not Belden

2015 investor deck december v1

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