R.W. Baird Global Industrial Conference November 7, 2018

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Presentation transcript:

R.W. Baird Global Industrial Conference November 7, 2018 John Engel, Chairman, President & CEO

Safe Harbor Statement All statements made herein that are not historical facts should be considered as “forward-looking statements” within the meaning of the Private Securities Litigation Act of 1995.  Such statements involve known and unknown risks, uncertainties and other factors that may cause actual results to differ materially. Such risks, uncertainties and other factors include, but are not limited to: adverse economic conditions; disruptions in operations or information technology systems; increase in competition; expansion of business activities; supply chain disruptions, changes in supplier strategy or loss of key suppliers; personnel turnover or labor cost increases; risks related to acquisitions, including the integration of acquired businesses; tax law changes or challenges to tax matters, including uncertainties in the interpretation and application of the Tax Cuts and Jobs Act of 2017; exchange rate fluctuations; debt levels, terms, financial market conditions or interest rate fluctuations; stock market, economic or political instability; legal or regulatory matters; litigation, disputes, contingencies or claims; and other factors described in detail in the Form 10-K for WESCO International, Inc. for the year ended December 31, 2017 and any subsequent filings with the Securities & Exchange Commission. The following presentation includes a discussion of certain non-GAAP financial measures. Information required by Regulation G with respect to such non-GAAP financial measures can be found in the appendix and obtained via WESCO’s website, www.wesco.com. 2

WESCO: A Leading Global Supply Chain Solutions Provider Capital Projects MRO OEM Including new construction and retrofits, renovations, and upgrades Founded 1922 in Pittsburgh, PA One of the world’s largest distributors of electrical, industrial, and communications products and services $7.7 Billion in Revenue #370 of the Fortune 500 9,100 employees …providing world-class brands and industry-leading service capabilities

Q3 2018 Highlights and FY19 Outlook Continued positive sales results and momentum Organic sales up 4%, 13% on a two-year stack basis Record Q3 backlog up 7% y/y Gross margin and operating margin expansion Double digit EBIT and EPS growth versus prior year Free cash flow of $80 million or 121% of net income Repurchased $25 million of shares Increased repurchase authorization to $400M Full year 2018 outlook:  sales growth of 6% – 8% and EPS $4.70 to $4.90, up 22% at the mid-point Preliminary 2019 Sales Outlook All end markets up 2%-5% Market outperformance 1%-2% Foreign exchange slightly unfavorable Total WESCO growth: 3%-6% Note: Organic growth excludes the impact of: acquisitions in the first year of ownership, foreign exchange rates and number of workdays. …double digit operating profit and EPS growth versus prior year in Q3