Build. Connect. Power. Protect. Services. Worldwide.
INVESTOR PRESENTATION1ST QUARTER 2020
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Safe Harbor Statement andNon-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 of1995. These forward-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 butare not limited to general economic conditions, the level of customer demand particularly for capital projects in the markets we serve, changes in supplier relationships or in supplier salesstrategies or financial viability, risks associated with the sale of nonconforming products and services, political, economic or currency risks related to foreign operations, inventoryobsolescence, copper price fluctuations, customer viability, risks associated with accounts receivable, risks associated with pension expense and funding, the impact of regulation andregulatory, investigative and legal proceedings and legal compliance risks, information security risks, disruption or failure of information systems, disruptions to logistics capability or supplychain, risks associated with substantial debt and restrictions contained in financial and operating covenants in our debt agreements, the impact and the uncertainty concerning the timingand terms of the withdrawal by the United Kingdom from the European Union, unanticipated changes in our tax provision and tax liabilities related to the enactment of the Tax Cuts andJobs Act, and risks associated with integration of acquired companies, including, but not limited to, the risk that the acquisitions may not provide us with the synergies or other benefits thatwere anticipated. These uncertainties may cause our actual results to be materially different than those expressed in any forward looking statements. We do not undertake to update anyforward 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 usingnon-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 thisrelease both 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), foreignexchange fluctuations, copper prices and the number of billing days (when applicable), both management and investors are provided with meaningful supplemental sales information tounderstand and 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 financialresults (e.g., impairment charges, inventory adjustments, restructuring charges, tax items, currency devaluations, pension settlements, etc.) in presenting adjusted operating expense,adjusted operating income, adjusted income taxes and adjusted net income so that both management and financial statement users can use these non-GAAP financial measures to betterunderstand and evaluate our performance period over period and to analyze the underlying trends of our business. We have also excluded amortization of intangible assets associatedwith purchase accounting 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.Management does not use these non-GAAP financial measures for any purpose other than the reasons stated above.
© 2020 Anixter Inc.
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WESCO International and Anixter InternationalAnnounce Merger Agreement
© 2020 Anixter Inc.
01/13/2020
• For more Information read the full Press Release:– http://investors.anixter.com/news/news/press-release-details/2020/WESCO-International-and-Anixter-International-
Announce-Merger-Agreement-to-Create-a-Premier-Electrical-and-Data-Communications-Distribution-and-Supply-Chain-Services-Company/default.aspx
• For the latest SEC filings please visit– http://investors.anixter.com/financials/sec-filings/
TABLE OF CONTENTS
Invest in Anixter
Key Priorities & Long-term Financial Goals
Business Overview
Financial Profile
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664
© 2020 Anixter Inc.
1. Positioned for sustainable growth• Leading positions in large, growing, fragmented businesses
• Diverse solutions across converging businesses
• Balanced sector approach provides growth opportunities while minimizing exposure andrisk
2. Differentiators provide competitive advantage and barriers to entry• Global capabilities with local presence• Technical expertise• Customized and scalable supply chain solutions
3. Culture of ethics and integrity• The Blue Book guides our philosophy, culture and business style
4. Financial strength and capital efficiency• Strong free cash flow generation through the economic cycle
5. Innovation and Business Transformation• Will drive strong financial performance and shareholder value creation
INVEST IN ANIXTER
5© 2020 Anixter Inc.
KEY PRIORITIES FOR ANIXTER
Our Focus On The Customer Will Drive Improved Results While Enabling Value Creation
Above-Market Growth
Digital innovation will improvecustomer experience
Leverage customer access strategy
Pivot and shift to growth markets
Increase global and complexservices and revenue streams
Gross Margin Improvement
Relentless focus and training
Price optimization tools
Increase global and complexservices and revenue streams
Increase Earnings & Cash Flow
Leverage fixed cost base
Tools/technology to drive salesproductivity
Warehouse network optimization
Innovation and businesstransformation expected to have run
rate savings of $40 - $60 millionwhen fully implemented
6© 2020 Anixter Inc.
LONG – TERM FINANCIAL GOALS
2019 Long-termGoals
Organic Sales Growth 5.6% 3% - 5%
Adjusted EBITDA Margin 5.3% >6.0%
Adjusted EBITDA Leverage 2.8x >1.5x
Working Capital as a % of Sales 18.2% <18%
Debt / Adjusted EBITDA 2.2x 2.5x - 3.0x
Debt-to-total Capital 36.3% 45% - 50%
7© 2020 Anixter Inc.
ANIXTER AT A GLANCE
2019 Key Metrics
Eletrical &ElectronicSolutions
27%
UtilityPower
Solutions20%
Network &SecuritySolutions
53%
2019 Sales by Segment
Sales $8.8B
Adjusted EBITDA $472M
Adjusted EBITDA margin 5.3%
Debt/Adjusted EBITDA 2.2x
Debt/Total Cap 36.3%
Fitch BBB-
Moody’s Ba3
S&P BB
NYSE Ticker AXE
NorthAmerica
81%
EMEA7%
EmergingMarkets
12%
2019 Sales by Geography
9© 2020 Anixter Inc.
10© 2020 Anixter Inc.
SALES OVERVIEW
FY19 SEGMENT AND GEOGRAPHIC MIX
FY19 Sales: $8.8 billion
YOY Sales Growth
GAAP Organic
Network and Security Solutions (NSS) 8.0% 7.8%Electrical and Electronic Solutions (EES) 0.4% 1.8%
Utility Power Solutions (UPS) 5.1% 5.4%Anixter International 5.3% 5.6%
YOY Sales Growth
GAAP Organic
North America 4.5% 5.0%EMEA (5.3)% (1.5)%
Emerging Markets 18.9% 15.2%Anixter International 5.3% 5.6%
EES27%
UPS20%
NSS53%
NA 81%
EMEA7%
EM12%
NETWORK & SECURITY SOLUTIONS (NSS)AT A GLANCE
NetworkInfrastructure
55%SecuritySolutions
45%
Product Mix
NorthAmerica
EMEA
EmergingMarkets
Geographic Mix
4Q19 2019Sales $1.2B $4.7B
Organic Sales Growth 8.0% 7.8%
Adjusted EBITDA $90.4M $354.0M
Adjusted EBITDAMargin
7.5% 7.5%
11© 2020 Anixter Inc. Product and Geographic Mix are based on FY19 Sales
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NETWORK & SECURITY SOLUTIONS
Products Growth Opportunities
Complex ServicesProjects
Programs
Emerging Technologies5GIoT
Inner Range Software
Professional A/V
Security
Smart Buildings
Smart Cities
Wireless
Data Center
AccessControl
VideoSurveillance
NetworkInfrastructure
Fire andLife Safety
Wireless
Network Infrastructure
Security Solutions
Our products are critical parts of a connected, controlled, and powered infrastructure that allow Anixter to pivotand shift into higher growth opportunities
© 2020 Anixter Inc.
ELECTRICAL & ELECTRONIC SOLUTIONS (EES)AT A GLANCE
Commercial &Industrial~60 - 65%
OEM~35 - 40%
Product Mix
NorthAmerica
EMEA
EmergingMarkets
Geographic Mix
4Q19 2019Sales $599M $2.4B
Organic Sales Growth 5.0% 1.8%
Adjusted EBITDA $40.6M $154.5M
Adjusted EBITDAMargin
6.8% 6.6%
13© 2020 Anixter Inc. Product and Geographic Mix are based on FY19 Sales
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ELECTRICAL & ELECTRONIC SOLUTIONS
Products Growth OpportunitiesComplex Services
ProjectsPrograms
Data Centers
Industrial Automation
Industry 4.0
IoT
Oil, Gas, Petrochemical
Public Transit
Renewable Energy
Smart Factories
AutomotiveWire and Cable
Control Cable
Medium-Voltage
Power Cable
ContractorSolutions
ElectricalSupplies
OEM
Commercial & Industrial
Switchgear
Our products are critical parts of a connected, controlled, and powered infrastructure that allow Anixter to pivotand shift into higher growth opportunities
© 2020 Anixter Inc.
UTILITY POWER SOLUTIONS (UPS)AT A GLANCE
InvestorOwnedUtilities~55%
Public Power~45%
Product Mix
North America
Geographic Mix
4Q19 2019Sales $449M $1.8B
Organic Sales Growth 4.4% 5.4%
Adjusted EBITDA $22.7M $100.9M
Adjusted EBITDAMargin
5.0% 5.6%
15© 2020 Anixter Inc. Product and Geographic Mix are based on FY19 Sales
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UTILITY POWER SOLUTIONS
Products Growth Opportunities
Complex ServicesProjects
Programs
Electrical Grid Upgrade
Natural DisastersHurricane rebuildWildfire rebuildStorm response
Smart Grids & Smart Meters
Security Upgrades
Storm-Hardening Efforts
Pole Line
Gears Controlsand Equipment
Fiberto theHome
Wire andCable
VideoSurveillance
Our products are critical parts of a connected, controlled, and powered infrastructure that allow Anixter to pivotand shift into higher growth opportunities
Public Power
Investor Owned Utilities
MRO
© 2020 Anixter Inc.
17© 2020 Anixter Inc.
($0.9)
OUR STRATEGIC ACTIONS ADDED $1.8 BILLIONTO OUR SALES RUN RATE
2017
$6.9
$0.6
$0.1
$2.0
2018CSD
Inner RangeAtlas Gentech
$6.2
2015Net
impact
2014Tri-Ed
2015Fasteners
2015Power
Solutions
2013
$0.2
$7.7
2016
Proforma Sales Bridge 2013 - 2019$Billions
+$2.6
2015$7.6
($0.1)
$7.9
$0.3
$8.4
$0.4
$0.1
Acquisition Revenues
Organic Growth
Divestiture
2019
$8.8
$0.4
STRATEGIC ACQUISITIONS2014 – 2019
Power Solutions(Carve out)
Purchase Date Q3 2014 Q4 2015 Q2 2018
Purchase Price $420M $825M $151M
TTM Sales* $570M $1,900M $114M
Adjusted TTM EBITDA* $36M $79M $20M
EBITDA Synergies $15M $25M None disclosed publicly
New Products IntrusionFire & Life SafetyAccess Control
LV/HV – Switch GearTransformers
LightingElectrical Bulks
IntrusionAccess Control
New Customers Security Dealers Commercial Construction,Utility Market (IOU &
Public Power)
Security Dealers
Other Benefits Branch Network Branch Network Software/ProductDevelopment
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*Tri-Ed trailing twelve months ended June 4, 2014; HD Supply Power Solutions trailing twelve months from HD Supply Inc. SEC filings; CSD, Inner Range and Atlas Gentech trailingtwelve months ended November 30, 2017
© 2020 Anixter Inc.
STRONG, DIVERSE AND GLOBALSUPPLIERS AND CUSTOMERS
Suppliers Customers
19© 2020 Anixter Inc.
LEADING POSITIONS IN ATTRACTIVEBUSINESSES
Network & SecuritySolutions
(NSS)
Electrical & ElectronicSolutions
(EES)
Utility PowerSolutions
(UPS)
LeadingMarket Positions Global #1 Global Top 3 North America #1
Total AddressableMarket (TAM) ~$55B ~$450B ~$31B
Expected MarketGrowth CAGR 3 - 4% 2 - 3% ~4%
Markets are HighlyFragmented ~7% Share <1% Share <4% Share
20© 2020 Anixter Inc.
21© 2020 Anixter Inc.
COMPETITIVE ADVANTAGES ANDBARRIERS TO ENTRY
Network & SecuritySolutions
Electrical & ElectronicSolutions
Utility PowerSolutions
Global Capabilitieswith Local Presence
Customized and ScalableSupply Chain Solutions
TechnicalExpertise
22© 2020 Anixter Inc.
CORE TECHNOLOGIES
NetworkInfrastructure Data Centers | Cloud Physical Security Professional AV
Wireless LightingIndustrialNetworking &Controls
Power
Wire & Cable Automation FTTX Internet of Things(IoT)
Smart Environments Edge Computing OT Cybersecurity
REDUCING RISKS AND COMPLEXITIES THROUGHOUR SERVICES
InstallationEnhancement
Services
ProjectDeployment
Services
SupplyChain
Programs
Enhancing products throughservices to reduce the total costof installation for our customers
Saving time, reducing costs,mitigating risk and increasing
efficiencies through services formultifaceted projects
Optimizing operationalefficiencies through an
integrated supply chain model
23© 2020 Anixter Inc.
UNMATCHED GLOBAL CAPABILITIES WITH LOCALPRESENCE
3,900+Technical SalesSpecialists, Multi-LevelTechnical Support
100,000+Customers$1.0 Billion+Inventory
~600,000Products50 Countries
35+ Currencies20+ Languages
Approximately 300+Warehousesand BranchesWorldwide
24© 2020 Anixter Inc.
EXAMPLES OF OUR SERVICES THAT HELPLOWER COST, COMPLEXITY AND RISKIN OUR CUSTOMERS’ SUPPLY CHAINS
Source-proven, quality-controlled products
Manage manufacturerrelationships and contracts
Access competitive pricingand product standardization
Reduce non-contract buying
Inventory managementsoftware
Decrease write-offs fromscrap, overruns and
obsolescence
Reduce product shortages
Streamline warehouseinvestment
Provision inventory
IP addressing
Cable bundling
Cable labeling
Cutting to length
Kitting and custompackaging
Pre-assembly/sub-assembly
Last- mile delivery
Import / exportdocumentation
preparation
B2B integration (EDI, JIT,ERP)
E-procurement Punchoutcatalog
Anixter.com (B2B)
eAnixter.com (contract)
Electronic invoices andpayments
Automated order confirmationand shipment process
Sourcing InventoryManagement
ProductEnhancement and
Packaging
GlobalLogistics
E-commerce
25© 2020 Anixter Inc.
COUNTER-CYCLICAL FREE CASH FLOWPROVIDES FINANCIAL FLEXIBILITY
Generate Strong Free Cash Flow Throughout the Economic Cycle
Free cash flow: Defined as net cash provided by operating activities less capital expenditures. Free cash flow is not restated for acquisitions and divestitures
26© 2020 Anixter Inc.
5.3%
27© 2020 Anixter Inc.
Leverage Metrics
Strategic Leverage Targets
*2015 includes 12 months of Power Solutions earnings on a pro forma basis
Target range:2.5x - 3.0x
Target range:45% - 50%
CONSERVATIVE FINANCIAL POLICY WITH APRUDENT APPROACH TO CAPITAL ALLOCATION
Capital Allocation Priorities are Organic Growth, M&A, Debt Reduction andOpportunistic Return to Shareholders
• Strong free cash flow allows Anixter to maintain a conservative leverage profile and ample liquidity throughoutthe business cycle
• Periods of acquisitions are immediately followed up by periods of debt reduction
$32 $22 $20 $26 $34 $32 $40 $27 $33$41 $42 $40
$105
$35$41
$108
$59
$111 $151
$166
$180
$36 $55
$418 $823
$5
$150$272
$82 $152
$267 $133
$1
$192
0%
20%
40%
60%
80%
100%
2008 2009 2010 2011 2012 2013 2014 2015 2016 2017 2018 2019
28© 2020 Anixter Inc.
DEBT MATURITY PROFILE
29
Total availability across all credit facilities was in excess of $750 million as of September 27, 2019
© 2020 Anixter Inc.
2020 FINANCIAL GOALS
Above market sales growth 1% - 5% organic growth
Increase gross margin 10 - 30 bps improvement
Improve profitability1.5x – 2.0x adjusted EBITDA leverage
5.3% to 5.6% adjusted EBITDA margin
Generate strong cash flow
Operating Cash Flow $175 - $225 million
Capex $45 - $50 million
Free cash flow $125 - $180 million
Maintain strong balance sheet
Working capital ~18% of sales
Debt-to-Adjusted EBITDA: 2.0x - 2.5x
Debt-to-Capital: 35% - 40%
30© 2020 Anixter Inc.
2020 SEGMENT ADJUSTED EBITDA GOALS
2019 Actuals 2020 Goals
NSS 7.5% 7.5% – 8.0%
EES 6.6% 6.6% – 7.0 %
UPS 5.6% 5.6% - 6.0%
31© 2020 Anixter Inc.