SECTOR: INDUSTRIALS COMPANY: BELDEN, INC. S R. A NALYSTS : H ELENE S AJER J R. A NALYSTS : M ALCOLM A NGUS, R AYMOND C HEN, T YRONE C HEUNG, S HIRIN K RALL, D EREK L OREN, J OHN S AAD, X IAO Y ANG

Investment Recommendation 2 CompanyBelden, Inc. RecommendationBUY Current Price $ yr Target Price $46.17 % Upside 25.8% 1 Infrastructure investments in emerging markets 2 Raw materials cost management and industry demand 3 Growing market share through acquisitions

The Communications Equipment Industry Consists of small cap companies who manufacture copper and fiber optic cable, networking, and connectivity products. Customers include OEMs and Distributors, and their products are used in Industrial automation, transportation, infrastructure, consumer electronics, and enterprises. 3

Industry Snapshot 1/17/2014BU Finance & Investment Club4 $6.1 billion in industry revenue in 2010 TickerCompany NameMarket Cap ($M)Revenue ($M)Sales GrowthEPS ($) BDCBelden, Inc %2.32 BGC General Cable Corp %1.33 PLPC Preformed Line Products Co %5.31

Company Definition Belden manufactures cable, networking, and connectivity solutions for a variety of markets including enterprise, industrial, and broadband Belden offers thousands of wire and cable products such as multi- conductor, paired, coaxial, flat and optical fiber cables, plus portable cordage, molded cable assemblies, hook-up and lead wire Product offerings also includes a complete selection of data network connectivity products and structured cabling systems and services, enclosures and racks, surface raceway systems, and cable management accessories 1/17/2014 BU Finance & Investment Club 5

Belden, Inc. 6 CAGR 5.3%

Revenue Breakdown: by Segment & Product

Supply Chain 1/17/2014 BU Finance & Investment Club 8

Products and Applications Vertical Markets IndustrialEnterpriseBroadcast Consumer Electronics Applications DataSoundVideo Product Platforms NetworkingConnectivityCable 1/17/2014 BU Finance & Investment Club 9

Trend: Developing Infrastructure in Asia 1/17/2014BU Finance & Investment Club10 Currently 23% of families have internet access in China China Telecom plans to increase number of optical fiber broadband from 30 million to 100 million in five years China plans to invest $300 billion over 5 years in infrastructure, 80% will be in broadband Indian government plans to spend 150 billion rupees ($3.3 Billion) on infrastructure over the next few years Belden Acquired LTK Wiring Based in Hong Kong

Belden in Emerging Markets 25% of Beldens portfolio benefits from E.M Rev from Brazil, India, China have 6-10% growth rates over 2010 On 4 April 2011 Belden Acquired Poliron Cabos Electricos Especiais Ltda in Brazil for $30 mil. "This acquisition allows us to be a legitimate player in one of the more attractive emerging markets

Belden in Asia Pacific 16% growth Year over Year, 6% of this is organic growth Asia has grown from 5% of Beldens business to 21%, and is expected to increase another 1% by 2013 The Networking Segment in Asia has grown 34% organically in 2010 In 2007 Belden Acquires Hirschmann Automation And Control with three manufacturing joint ventures in China

Belden In Asia Pacific 1/17/2014 BU Finance & Investment Club 13

Trend / Opportunities: Raw Materials Costs The cost of copper, BDCs principal raw material grew by 129% in 2010 Copper demand expected to increase by 6.4% China to increase copper imports by 17% Belden has historically shown its ability to pass on rising costs of raw materials to their consumers 14

Trend: Fiber Optics 1/17/2014BU Finance & Investment Club15

Belden: Signal Transmission Positioned as the technology leader in signal transmission, with the capability of solving customers end-to-end requirements for high-bandwidth solutions Broad casting: 25% growth last quarter Coax Connectivity Solutions acquisition Brand most trusted and used for all Olympics and major sporting events

Belden: Increasing Market Share through Acquisitions Feb 2007: Acquired Hong Kong Based LTK Wiring for $195 million (revenue of $220 Million) March 2007: Acquired Hirschmann Automation and control for $260 Million April 2007: Acquired Lumberg Automation Components in Germany for $75 million June 2008: Acquired Trapeze Networks for 133 million, and sold Trapeze in 2010 for a $20 million profit November 2010: Acquired GarretCom for $52 million and Tomas & Betts for $78 Million April 2011: Acquired Poliron Cabos Electricos Especiais in Brazil for $30 million, and expects the acquisition to break even in /17/2014 BU Finance & Investment Club 17

Financials & Stock Performance 1/17/2014 BU Finance & Investment Club 18 CompanyM. Cap ($m) Revenue ($m) Sales Growth EBITDA ($m) EPS ($)Inventory Turnover Belden Inc % x Belden, Inc. Total Debt ($m)551 Debt / Equity0.86x Current Ratio2.4x Quick Ratio1.8x

Valuation Year2011-e2012-e2013-e2014-e2015-e FCF ($MM)$ $ $ $ $ WACC10.84% Growth Rate2% DCF EV$ 2, yr Target Price$ DCF – 50% Comps – TEV/EBITDA 30% P/S 20% TEV/EBITDA9.5x 1yr Target Price$ yr Target Price $ % P/S1.1x 1yr Target Price$42.58

Risks & Sensitivities 1/17/2014 BU Finance & Investment Club 20

Company Analysis Increasing market share through two new acquisitions in 2010 and one in April 2011 Increasing revenue by developing manufacturing facilities abroad, focusing on growth in Asia segment and emerging markets Managing the cost of raw materials as copper prices reach all time highs 21 Investment Recommendation CompanyBelden, Inc. RecommendationBUY Current Price $ yr Target Price $46.17 % Upside 25.8%

Questions? 1/17/2014 BU Finance & Investment Club 22

Backup Slides 1/17/2014 BU Finance & Investment Club 23

Time Series 1 Yr Revenue Growth vs. P/S 1/17/2014 BU Finance & Investment Club 24