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1Q 2020 Highlights and Operating Results
Build. Connect. Power. Protect. Services. Worldwide.
2© 2020 Anixter Inc.
Table of Contents
Page
3 Safe Harbor Statement and Non-GAAP Financial Measures
4 Financial Results
5 Sales Overview
6 Overview of Financial Performance and Trends
11 Segment Results and Trends
17 Working Capital and Adjusted ROTC
18 Leverage Metrics
20 Appendix
3© 2020 Anixter Inc.
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. 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 but are notlimited to the impact of the COVID-19 pandemic, general economic conditions, the level of customer demand particularly for capital projects in the markets we serve, changes in supplierrelationships or in supplier sales strategies or financial viability, risks associated with the sale of nonconforming products and services, political, economic or currency risks related toforeign operations, inventory obsolescence, copper price fluctuations, customer viability, risks associated with accounts receivable, risks associated with pension expense and funding,the impact of regulation and regulatory, investigative and legal proceedings and legal compliance risks, information security risks, disruption or failure of information systems, disruptionsto logistics capability or supply chain, risks associated with substantial debt and restrictions contained in financial and operating covenants in our debt agreements, the impact and theuncertainty concerning the timing and terms of the withdrawal by the United Kingdom from the European Union, unanticipated changes in our tax provision and tax liabilities related to theenactment of the Tax Cuts and Jobs Act, and risks associated with integration of acquired companies, including, but not limited to, the risk that the acquisitions may not provide us withthe synergies or other benefits that were 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 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 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 tobetter understand and evaluate our performance period over period and to analyze the underlying trends of our business. We have also excluded amortization of intangible assetsassociated with 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 leverageprovide relevant 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 andbusiness segment performance. Adjusted operating income provides an understanding of the results from the primary operations of our business by excluding the effects of certain itemsthat do not reflect the ordinary earnings of our operations. We use adjusted operating income to evaluate our period-over-period operating performance because we believe this providesa more comparable measure of our continuing business excluding certain items that are not reflective of expected ongoing operations. This measure may be useful to an investor inevaluating the underlying performance of our business. EBITDA provides us with an understanding of earnings before the impact of investing and financing charges and income taxes.Adjusted EBITDA further excludes the effects of foreign exchange and other non-cash stock-based compensation, and certain items that do not reflect the ordinary earnings of ouroperations and that are also excluded for purposes of calculating adjusted net income, adjusted earnings per share and adjusted operating income. EBITDA and Adjusted EBITDA areused by our management for various purposes including as measures of performance of our operating entities and as a basis for strategic planning and forecasting. Adjusted EBITDA andAdjusted EBITDA leverage may be useful to an investor because this measure is widely used to evaluate a company’s operating performance without regard to items excluded from thecalculation 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 bywhich 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 inaccordance 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-GAAPfinancial measures as reported by us may not be comparable to similarly titled amounts reported by other companies. The non-GAAP financial measures should be considered inconjunction with the Condensed Consolidated Financial Statements, including the related notes, and Management’s Discussion and Analysis of Financial Condition and Results ofOperations. Management does not use these non-GAAP financial measures for any purpose other than the reasons stated above.
4© 2020 Anixter Inc.
Financial Results
Three Months Ended
(In millions, except per share amounts)April 3,
2020March 29,
2019Percent Change
Select Reported Measures
Net Sales $ 2,071.7 $ 2,108.5 (2)%
Operating Income $ 71.4 $ 74.6 (4)%
Net Income $ 35.7 $ 39.1 (9)%
Diluted Earnings Per Share $ 1.03 $ 1.14 (10)%
Diluted Weighted Shares 34.6 34.2 1%
Select Non-GAAP Measures
Adjusted EBITDA $ 96.0 $ 96.5 (1)%
Adjusted Net Income $ 44.4 $ 45.4 (2)%
Adjusted Diluted Earnings Per Share $ 1.28 $ 1.33 (4)%
5© 2020 Anixter Inc.
Sales Overview
1Q20 Segment and Geographic Mix
NSS 52%
EES 26%
UPS 22%
NA 81%
EMEA 7%
EM 12%
1Q20 Sales: $2.1 billion
YOY Sales Growth
GAAP Organic
North America (0.7)% (0.6)%EMEA (2.8)% (1.2)%
Emerging Markets (8.1)% (5.8)%Anixter International (1.7)% (1.3)%
YOY Sales Growth
GAAP Organic
Network and Security Solutions (NSS) (2.9)% (2.3)%Electrical and Electronic Solutions (EES) (4.2)% (3.5)%
Utility Power Solutions (UPS) 4.4% 4.4%Anixter International (1.7)% (1.3)%
6© 2020 Anixter Inc.
$ M
illio
ns
GAAP Sales -1.7%, Organic Sales -1.3%$2,109
$(8) $(2)
$(27)
$2,072
1Q19 Currency Copper OrganicGrowth
1Q20
Overview of Financial Performance and Trends
1Q20 Sales Performance G
AA
P S
ales
($ M
illio
ns) O
rganic Sales G
rowth %
Sales Growth Trend
$1,964$2,138 $2,179 $2,119 $2,109
$2,263 $2,222 $2,252$2,072
1.6%
4.9%
7.4%
5.1%7.7% 6.0%
2.6%
6.5%
(1.3)%
1Q18 2Q18 3Q18 4Q18 1Q19 2Q19 3Q19 4Q19 1Q20
• First quarter sales were $2.1B
• Organic sales decreased 1.3%
• On an average daily sales basis, organic daily sales were down 2.8%
7© 2020 Anixter Inc.
Overview of Financial Performance and Trends
Gross Margin Trend
• Gross profit decreased 0.6%, to $416.4M• Gross margin of 20.1% increased 20 basis points YOY as the long term strategies that have been
implemented continue to show strong results• Six consecutive quarters of year-over-year gross margin improvement
Gro
ss P
rofit
($ M
illio
ns)
Gross M
argin %
Gross Margin Trend
$385
$419$424
$430
$419
$450 $446
$461
$416
19.6% 19.6% 19.5%
20.3%19.9% 19.9%
20.1%20.4%
20.1%
1Q18 2Q18 3Q18 4Q18 1Q19 2Q19 3Q19 4Q19 1Q20300
350
400
450
500
+15 bps Y/Y +20 bps
Y/Y+60 bps
Y/Y+30 bps Y/Y
+30 bps Y/Y
+50 bps Y/Y
8© 2020 Anixter Inc.
Overview of Financial Performance and Trends
Operating Expense Trend$
Mill
ions
% of S
ales
Operating Expense Trend (GAAP)
$323
$348
$335$343 $344 $344 $345
$375
$345
16.5% 16.3%15.4%
16.2% 16.3%
15.2% 15.5%
16.7% 16.7%
Operating Expense (GAAP) Opex as % of sales (GAAP)
1Q18 2Q18 3Q18 4Q18 1Q19 2Q19 3Q19 4Q19 1Q20275
300
325
350
375 • 1Q20 operating expense was 16.7% of sales, a 40 basis point increase versus prior year
• 1Q20 operating expense increased by $0.6M
• 1Q20 had $2.9M of merger-related expenses
$ M
illio
ns
% of S
alesOperating Expense Trend (Non-GAAP)
$313 $324 $324 $334 $336 $335 $336 $354$333
16.0%
15.1% 14.9%
15.8% 15.9%
14.8%15.1%
15.7%16.1%
Adj Operating Expense Adj Opex as % of sales
1Q18 2Q18 3Q18 4Q18 1Q19 2Q19 3Q19 4Q19 1Q20
• Adjusted operating expense decreased 0.7%, and increased as a percentage of sales by 20 basis points
• Expenses were down sequentially
9© 2020 Anixter Inc.
Overview of Financial Performance and Trends
Operating Income Trend$
Mill
ions
% of S
ales
Operating Income and Operating Margin Trend (GAAP)
$62
$71
$90 $87
$75
$106$102
$85
$71
3.1% 3.3%
4.1% 4.1%
3.5%
4.7% 4.6%
3.8%3.4%
Operating Income (GAAP) Operating Margin (GAAP)
1Q18 2Q18 3Q18 4Q18 1Q19 2Q19 3Q19 4Q19 1Q2040
60
80
100
120
$ M
illio
ns
% of S
alesOperating Income and Operating Margin Trend (Non-GAAP)
$71
$96 $100 $96$83
$115 $111 $107
$83
3.6%
4.5% 4.6% 4.5%
3.9%
5.1% 5.0%4.7%
4.0%
Adj Operating Income Adj Operating Margin
1Q18 2Q18 3Q18 4Q18 1Q19 2Q19 3Q19 4Q19 1Q20
• Adjusted operating income of $82.9M compares to $83.1M. The corresponding adjusted operating margin of 4.0% compares to 3.9%
• Operating margin improved year over year even after absorbing the negative impact of the pandemic
• Operating income decreased 4.3% to $71.4M
• The corresponding operating margin of 3.4% compares to 3.5%, a 10 basis point decline
10© 2020 Anixter Inc.
Overview of Financial Performance and Trends
Net Income and Adjusted EBITDA TrendN
et In
com
e ($
Mill
ions
)
Net M
argin (%)
Net Income and Net Margin Trend (GAAP)
$32 $35
$48$42 $39
$64$59
$101
$36
1.6% 1.6%
2.2% 2.0% 1.9%
2.8% 2.7%
4.5%
1.7%
1Q18 2Q18 3Q18 4Q18 1Q19 2Q19 3Q19 4Q19 1Q200
15
30
45
60
75
90
105
Adj
EB
ITD
A ($
Mill
ions
)
Adj E
BITD
A %
Adjusted EBITDA and Adjusted EBITDA Margin Trend (Non-GAAP)
$83
$108 $111 $109$97
$129 $126 $121
$964.2%
5.0% 5.1% 5.1%
4.6%
5.7% 5.6%5.4%
4.6%
1Q18 2Q18 3Q18 4Q18 1Q19 2Q19 3Q19 4Q19 1Q20
• Net income decreased from $39.1M to $35.7M
• Foreign exchange impact to net income was expense of $5.3M compared to $2.4M of expense in 1Q19
• Adjusted EBITDA margin of 4.6% is flat compared to 1Q19
• Sequentially, adjusted EBITDA margin of 4.6% compares to 5.4%
11© 2020 Anixter Inc.
Segment Results and Trends
Network & Security Solutions Sales
• NSS first quarter sales decreased 2.9% to $1.1B
YO
Y C
hang
e
NSS Organic Sales Growth Trend
(0.5)%
4.7%
6.4%
4.7%
10.7%
8.4%
4.3%
8.0%
(2.3)%
1Q18 2Q18 3Q18 4Q18 1Q19 2Q19 3Q19 4Q19 1Q20-2.0%
0.0%
2.0%
4.0%
6.0%
8.0%
10.0%
$ M
illio
ns
NSS GAAP Sales -2.9%, Organic Sales -2.3%
$1,113
$(7)
$(25)
$1,081
1Q19 FX OrganicSales
1Q20
• NSS organic sales decreased 2.3%,
• Organic average daily sales were down 3.8%
• 1Q two-year cumulative growth of 8% compares to 13% in 4Q
• Organic sales decreased in North America 2.3% and EMEA 7.2%. Emerging Markets organic sales grew 0.3%
12© 2020 Anixter Inc.
Segment Results and Trends
NSS Operating Income and Adjusted EBITDA $
Mill
ions
Margin %
NSS Operating Income and Operating Margin Trend (GAAP)
$54
$66
$75$78
$71
$86 $85 $84
$63.2
5.4%6.0%
6.6% 6.9%6.4%
7.2% 7.2% 6.9%
5.8%
NSS Operating Income (GAAP) NSS Operating Margin (GAAP)
1Q18 2Q18 3Q18 4Q18 1Q19 2Q19 3Q19 4Q19 1Q20
50
60
70
80
90 • NSS operating income decreased 10.8% to $63.2M
• The corresponding operating margin was 5.8%
$ M
illio
ns
Margin %
NSS Adjusted EBITDA and Adjusted EBITDA Margin (Non-GAAP)
$59
$76$82 $84
$78
$94 $92 $90
$70
5.9%
6.9% 7.2% 7.5%7.0%
7.8% 7.8% 7.5%
6.5%
Adjusted EBITDA Adj EBITDA Margin
1Q18 2Q18 3Q18 4Q18 1Q19 2Q19 3Q19 4Q19 1Q20
• NSS adjusted EBITDA decreased 9.7% to $70.4M
• The corresponding adjusted EBITDA margin was 6.5%.
13© 2020 Anixter Inc.
Segment Results and Trends
Electrical & Electronic Solutions Sales Y
OY
Gro
wth
EES Organic Sales Growth Trend
3.7%4.7%
9.0%
0.5% 2.3% 2.3%
(2.2)%
5.0%
(3.5)%
1Q18 2Q18 3Q18 4Q18 1Q19 2Q19 3Q19 4Q19 1Q20
0%
3%
6%
9%
$ M
illio
ns
EES GAAP Sales -4.2%, Organic Sales -3.5%
$566
$(2)
$(21)
$542
1Q19 Currency Copper OrganicSales
1Q20
• EES first quarter sales decreased 4.2% to $542.2
• EES organic sales decreased 3.5%
• Organic average daily sales were down 5.0%
• Organic sales grew in EMEA 8.3% and declined in North America by 2.1% and the Emerging Markets 24.0%
$(1)
14© 2020 Anixter Inc.
Segment Results and Trends
EES Operating Income and Adjusted EBITDA$
Mill
ions
Margin %
EES Adjusted EBITDA and Adjusted EBITDA Margin Trend (Non-GAAP)
$35
$40$37
$34 $33
$42$40 $41
$32
6.1%
6.7%
6.1%5.9% 5.8%
6.9% 6.8% 6.8%
5.9%
EES Adj EBITDA EES Adj EBITDA Margin
1Q18 2Q18 3Q18 4Q18 1Q19 2Q19 3Q19 4Q19 1Q20
• EES adjusted EBITDA increased 1.5% to $32.1M
• The corresponding adjusted EBITDA margin increased 10 basis points to 5.9%, due to strong gross margin performance
$ M
illio
ns
Margin %
EES Operating Income and Operating Margin Trend (GAAP)
$31
$36$34
$31$29
$38$35
$37
$29
5.5%5.9% 5.7% 5.5%
5.1%
6.3% 6.1% 6.2%
5.3%
EES Operating Income (GAAP) EES Operating Margin (GAAP)
1Q18 2Q18 3Q18 4Q18 1Q19 2Q19 3Q19 4Q19 1Q200
15
30
45
• EES operating income decreased 1.5% to $28.7M
• The corresponding operating margin increased 20 basis points to 5.3% due to strong gross margin performance
15© 2020 Anixter Inc.
• UPS record first quarter sales increased 4.4% to $449M
• UPS organic sales growth was 4.4%, which marks the 13th consecutive quarter of organic sales growth for UPS
• Organic average daily sales growth was 2.8%
• 1Q two-year cumulative growth of 12% compares to 18% in 4Q
Segment Results and Trends
Utility Power Solutions Sales $
Mill
ions
UPS GAAP Sales +4.4%, Organic Sales +4.4%
$430
$19 $449
1Q19 Currency Copper OrganicSales
1Q20
YO
Y G
row
th
UPS Organic Sales Growth Trend
4.0%
5.8%
8.1%
13.3%
7.9%
5.0%4.4% 4.4% 4.4%
1Q18 2Q18 3Q18 4Q18 1Q19 2Q19 3Q19 4Q19 1Q200%
4%
8%
12%
16© 2020 Anixter Inc.
• UPS operating income of $22.0M compares to $18.5M
• The corresponding operating margin of 4.9% increased from 4.3%
Segment Results and Trends
UPS Operating Income and Adjusted EBITDA$
Mill
ions
Margin %
UPS Adjusted EBITDA and Adjusted EBITDA Margin Trend (Non-GAAP)
$21$23 $24
$26$23
$27 $28
$23
$275.2% 5.3% 5.4%
5.9%5.3%
6.0% 6.1%
5.0%
5.9%
UPS Adj EBITDA UPS Adj EBITDA margin
1Q18 2Q18 3Q18 4Q18 1Q19 2Q19 3Q19 4Q19 1Q20
$ M
illio
ns
Margin %
UPS Operating Income and Operating Margin Trend (GAAP)
$16
$18
$20$21
$19
$23$24
$18
$22
4.1% 4.1% 4.5%4.9%
4.3%5.1% 5.1%
4.0%4.9%
UPS Operating Income (GAAP) UPS Operating Margin (GAAP)
1Q18 2Q18 3Q18 4Q18 1Q19 2Q19 3Q19 4Q19 1Q2010
15
20
25
• UPS adjusted EBITDA increased 17.2% to $26.6M
• The corresponding adjusted EBITDA margin increased 60 basis points to 5.9%
17© 2020 Anixter Inc.
Working Capital and Adjusted ROTCA
dj R
OTC
%
Adjusted ROTC
25.4%
23.9%
25.0%
24.0%
2017 2018 2019 1Q 20
% o
f Sal
es
Working Capital as Percent of Sales
18.7%18.4% 18.2%
21.3%
2017 2018 2019 1Q 20
• Working capital ratio of 21.3% increased 310 basis points compared to 2019
* Working capital ratio of 19.0% represents pro forma results assuming a $75M normalized cash balance. We proactively increased cash levels to provide additional flexibility during the disruption in the financial markets in March.
• Adjusted ROTC of 24.0% compares to 25.0% in 2019
Working Capital as Percent of Sales - current assets less current liabilities divided by rolling four-quarter sales (excluding current portion of operating lease liability related to the 1Q19 adoption of ASC 842, Leases)
Adjusted ROTC - rolling four-quarter adjusted operating income divided by average tangible capital (excluding right-of-use operating lease assets related to the 1Q19 adoption of ASC 842, Leases)
19.0%*
18© 2020 Anixter Inc.
Debt / Adjusted EBITDA
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 3.0
2.2
2.8
2002 2003 2004 2005 2006 2007 2008 2009 2010 2011 2012 2013 2014 2015* 2016 2017 2018 2019 1Q201.5
2
2.5
3
3.5
4
4.5
Leverage Metrics
Strategic Leverage Targets
Debt-to-Capital
41% 41% 35%
47%
46% 46%
51%
45%
47%
45%
50%
45%
52%
58%
52%
46%44%
36%
41.8%
2002 2003 2004 2005 2006 2007 2008 2009 2010 2011 2012 2013 2014 2015 2016 2017 2018 2019 1Q2030%
35%
40%
45%
50%
55%
60%
* 2015 includes 12 months of Power Solutions earnings on a pro forma basis ** 1Q20 debt balance adjusted by approximately $200M to reflect normalized cash balance as we proactively increased cash levels to provide additional flexibility during the disruption in the financial markets in March.
Target range:2.5x - 3.0x
Target range:45% - 50%
2.4**
37.7%**
19© 2020 Anixter Inc.
• 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 information on the Anixter shareholder approval of the merger please visit:
– http://investors.anixter.com/news/news/press-release-details/2020/Anixter-Stockholders-Approve-Merger-with-WESCO/default.aspx
• For the latest SEC filings please visit:
– http://investors.anixter.com/financials/sec-filings/
WESCO International and Anixter InternationalAnnounce Merger Agreement
20© 2020 Anixter Inc.
Appendix
21© 2020 Anixter Inc.
Glossary
1H first half of fiscal yearB billionsM millionsFx foreign exchangeGAAP U.S. GAAPNSS Network & Security SolutionsEES Electrical & Electronic SolutionsUPS Utility Power SolutionsETR effective tax rateOpex total operating expenseEMEA Europe, middle east and AfricaEM Emerging marketsCALA Central and Latin AmericaAPAC Asia Pacific, Australia and ChinaOEM original equipment manufacturerIOU investor owned utilityY/Y year-over-yearUSD U.S. dollarWC working capitalROTC return on tangible capitalFree Cash Flow cash from operations less capital expenditures
22© 2020 Anixter Inc.
In millions (except per share amounts)
Favorable (Unfavorable) ImpactThree Months Ended
April 3, 2020 March 29, 2019
Items impacting comparability of results:Items impacting operating expense and operating income:Amortization of intangible assets $ (8.6) $ (8.8)Merger costs (2.9) —Acquisition and integration costs — 0.3Total of items impacting operating expense and operating income $ (11.5) $ (8.5)Total of items impacting pre-tax income $ (11.5) $ (8.5)Items impacting income taxes:
Tax impact of items impacting pre-tax income above $ 2.8 $ 2.2Total of items impacting income taxes $ 2.8 $ 2.2Net income impact of these items $ (8.7) $ (6.3)
Diluted EPS impact of these items $ (0.25) $ (0.19)
Anixter International Inc
Items Impacting Comparability
23© 2020 Anixter Inc.
In millions (except per share amounts)
Favorable (Unfavorable) ImpactThree Months Ended
April 3, 2020 March 29, 2019
U.S. GAAP to Non-GAAP Net Income and EPS Reconciliation:Net income – U.S. GAAP $ 35.7 $ 39.1Items impacting net income 8.7 6.3Net income – Non-GAAP $ 44.4 $ 45.4
Diluted EPS – U.S. GAAP $ 1.03 $ 1.14Diluted EPS impact of these items 0.25 0.19Diluted EPS – Non-GAAP $ 1.28 $ 1.33
Anixter International Inc
Items Impacting Comparability (continued)
24© 2020 Anixter Inc.
Anixter International Inc
EBITDA and Adjusted EBITDA Reconciliation
$ millions
EBITDA and Adjusted EBITDA
1Q 18 2Q 18 3Q 18 4Q 18 1Q 19 2Q 19 3Q 19 4Q 19 1Q 20
Net income $32.1 $34.8 $47.6 $41.8 $39.1 $63.5 $ 59.3 $ 101.0 $ 35.7Interest expense 18.2 19.0 19.3 19.8 20.4 19.4 18.5 18.8 16.8Income taxes 13.6 14.2 21.0 18.1 16.9 22.1 22.8 (31.3) 12.3Depreciation 7.4 7.7 8.2 8.4 9.3 9.7 9.7 8.5 8.5Amortization of intangible assets 9.3 9.7 9.6 8.7 8.8 8.8 8.8 8.6 8.6EBITDA $ 80.6 $ 85.4 $ 105.7 $ 96.8 $ 94.5 $ 123.5 $ 119.1 $ 105.6 $ 81.9EBITDA as a % of sales 4.1% 4.0% 4.9% 4.6% 4.5% 5.5% 5.4 % 4.7 % 4.0 %
EBITDA $ 80.6 $ 85.4 $ 105.7 $ 96.8 $ 94.5 $ 123.5 $ 119.1 $ 105.6 $ 81.9Foreign exchange and other non-operating expense (income) (2.3) 3.3 1.6 7.6 (1.8) 0.7 1.2 (3.1) 6.6
Stock-based compensation 4.6 7.2 3.2 3.9 4.1 5.2 5.2 5.5 4.6Merger costs — — — — — — — 12.8 2.9Restructuring 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 $ 96.5 $ 129.4 $ 125.5 $ 120.8 $ 96.0Adjusted EBITDA as a % of sales 4.2% 5.0% 5.1% 5.1% 4.6% 5.7% 5.6 % 5.4 % 4.6 %
25© 2020 Anixter Inc.
Network & Security Solutions
EBITDA and Adjusted EBITDA Reconciliation
$ millions
EBITDA and Adjusted EBITDA
1Q 18 2Q 18 3Q 18 4Q 18 1Q 19 2Q 19 3Q 19 4Q 19 1Q 20
Net income $53.5 $66.1 $75.0 $77.6 $70.9 $86.3 $ 84.8 $ 83.5 $ 63.2Interest expense — — — — — — — — —Income taxes — — — — — — — — —Depreciation 0.8 0.9 0.9 1.2 2.4 2.4 2.4 2.2 2.5Amortization of intangible assets 3.8 4.2 5.0 4.0 4.1 4.2 4.1 4.0 3.9EBITDA $ 58.1 $ 71.2 $ 80.9 $ 82.8 $ 77.4 $ 92.9 $ 91.3 $ 89.7 $ 69.6EBITDA as a % of sales 5.8% 6.5% 7.1% 7.4% 7.0% 7.7% 7.7 % 7.5 % 6.4 %
EBITDA $ 58.1 $ 71.2 $ 80.9 $ 82.8 $ 77.4 $ 92.9 $ 91.3 $ 89.7 $ 69.6Stock-based compensation 0.4 0.4 0.4 0.6 0.6 0.7 0.7 0.7 0.8U.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 $ 78.0 $ 93.6 $ 92.0 $ 90.4 $ 70.4Adjusted EBITDA as a % of sales 5.9% 6.9% 7.2% 7.5% 7.0% 7.8% 7.8 % 7.5 % 6.5 %
26© 2020 Anixter Inc.
Electrical & Electronic Solutions
EBITDA and Adjusted EBITDA Reconciliation
$ millions
EBITDA and Adjusted EBITDA
1Q 18 2Q 18 3Q 18 4Q 18 1Q 19 2Q 19 3Q 19 4Q 19 1Q 20
Net income $31.4 $35.6 $34.1 $31.2 $29.1 $38.2 $ 35.3 $ 36.9 $ 28.7Interest expense — — — — — — — — —Income taxes — — — — — — — — —Depreciation 0.5 0.7 0.6 0.6 1.8 1.8 1.8 1.9 1.6Amortization of intangible assets 2.2 2.1 1.4 1.3 1.4 1.3 1.4 1.3 1.4EBITDA $ 34.1 $ 38.4 $ 36.1 $ 33.1 $ 32.3 $ 41.3 $ 38.5 $ 40.1 $ 31.7EBITDA as a % of sales 6.0% 6.3% 6.0% 5.8% 5.7% 6.8% 6.6 % 6.7 % 5.8 %
EBITDA $ 34.1 $ 38.4 $ 36.1 $ 33.1 $ 32.3 $ 41.3 $ 38.5 $ 40.1 $ 31.7Stock-based compensation 0.4 0.4 0.3 0.3 0.3 0.5 0.4 — 0.4Restructuring charge — 1.3 — — — — 0.5 0.5 —U.K. facility relocation costs 0.2 0.3 0.1 0.2 — — — — —Adjusted EBITDA $ 34.7 $ 40.4 $ 36.5 $ 33.6 $ 32.6 $ 41.8 $ 39.4 $ 40.6 $ 32.1Adjusted EBITDA as a % of sales 6.1% 6.7% 6.1% 5.9% 5.8% 6.9% 6.8 % 6.8 % 5.9 %
27© 2020 Anixter Inc.
Utility Power Solutions
EBITDA and Adjusted EBITDA Reconciliation
$ millionsEBITDA and Adjusted EBITDA
1Q 18 2Q 18 3Q 18 4Q 18 1Q 19 2Q 19 3Q 19 4Q 19 1Q 20
Net income $16.4 $17.9 $19.9 $21.2 $18.5 $23.1 $ 23.8 $ 18.2 $ 22.0Interest expense — — — — — — — — —Income taxes — — — — — — — — —Depreciation 0.9 0.9 1.1 0.7 0.9 0.9 1.0 0.9 1.1Amortization of intangible assets 3.3 3.4 3.2 3.4 3.3 3.3 3.3 3.3 3.3EBITDA $ 20.6 $ 22.2 $ 24.2 $ 25.3 $ 22.7 $ 27.3 $ 28.1 $ 22.4 $ 26.4EBITDA as a % of sales 5.1% 5.1% 5.4% 5.9% 5.3% 6.0% 6.1% 5.0% 5.9%
EBITDA $ 20.6 $ 22.2 $ 24.2 $ 25.3 $ 22.7 $ 27.3 $ 28.1 $ 22.4 $ 26.4Stock-based compensation 0.3 0.2 (0.1) 0.2 0.1 0.1 0.1 0.3 0.2Restructuring charge — 0.7 — — (0.1) — — — —Adjusted EBITDA $ 20.9 $ 23.1 $ 24.1 $ 25.5 $ 22.7 $ 27.4 $ 28.2 $ 22.7 $ 26.6Adjusted EBITDA as a % of sales 5.2% 5.3% 5.4% 5.9% 5.3% 6.0% 6.1 % 5.0 % 5.9 %
28© 2020 Anixter Inc.
Supplemental Information
Billing Days and Average Copper Prices
Billing Days
Q1 Q2 Q3 Q4 FY
2017 64 64 63 62 2532018 64 64 63 62 2532019 64 64 63 66 * 2572020 65 63 64 61 253
Average Copper Prices
Q1 Q2 Q3 Q4 FY
2017 $2.65 $2.58 $2.89 $3.10 $2.802018 $3.14 $3.09 $2.73 $2.75 $2.932019 $2.81 $2.78 $2.62 $2.68 $2.722020 $2.54
Increase (Decrease) $(0.27)% Increase (Decrease) (10)%
*We estimate that, due to the timing of the holidays, the effective selling days in Q4 2019 were approximately 64 1/2 days