Wesco International, Inc. (NYSE:WCC) Q2 2021 Earnings Conference Call August 5, 2021 10:00 AM ET Company Participants Leslie Hunziker - SVP, IR & Corporate Communications John Engel - Chairman, President & CEO David Schulz - EVP & CFO Conference Call Participants Deane Dray - RBC Capital Markets Samuel Darkatsh - Raymond James & Associates Nigel Coe - Wolfe Research Robert Barger - KeyBanc Capital Markets Christopher Glynn - Oppenheimer David Manthey - Robert W. Baird & Co. Christopher Dankert - Loop Capita ...

UNITED STATES SECURITIES AND EXCHANGE COMMISSION Washington, D.C. 20549 FORM 10-Q (Mark One) ☑ QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 For the quarterly period ended June 30, 2021 or ☐ TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 For the transition period from to Commission File Number: 001-14989 WESCO International, Inc. (Exact name of registrant as specified in its charter) (State or other jurisdiction of incorpora ...

WESCO® 1 NYSE: WCC Second Quarter 2021 Webcast Presentation August 5, 2021 2 Forward-Looking Statements All statements made herein that are not historical facts should be considered as forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995. Such statements involve known and unknown risks, uncertainties and other factors that may cause actual results to differ materially. These statements include, but are not limited to, statements regarding the expected benefit ...

NYSE: WCC 1 First Quarter 2021 Webcast Presentation May 6, 2021 2 Forward-Looking Statements All statements made herein that are not historical facts should be considered as forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995. Such statements involve known and unknown risks, uncertainties and other factors that may cause actual results to differ materially. These statements include, but are not limited to, statements regarding the expected benefits and costs ...

UNITED STATES SECURITIES AND EXCHANGE COMMISSION Washington, D.C. 20549 FORM 10-Q (Mark One) ☑ QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 For the quarterly period ended March 31, 2021 or ☐ TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 For the transition period from to (Former name, former address and former fiscal year, if changed since last report) Commission File Number: 001-14989 WESCO International, Inc. (Exact name ...

UNITED STATES SECURITIES AND EXCHANGE COMMISSION WASHINGTON, D.C. 20549 FORM 10-K (Mark One) ☑ ANNUAL REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 For the fiscal year ended December 31, 2020 or ☐ TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 For the transition period from to Commission file number 001-14989 WESCO International, Inc. (Exact name of registrant as specified in its charter) (State or other jurisdiction of incorporation ...

Financial Data and Key Metrics Changes - In 2020, WESCO generated $586 million in free cash flow, which was more than 250% of adjusted net income, enabling a reduction in net debt by almost $400 million [23][31][33] - Adjusted gross margin was 19.6%, consistent with the prior quarter and up 10 basis points year-over-year [38] - Adjusted income from operations was $172 million in Q4, reflecting a decrease of $28 million from Q3 primarily due to increased SG&A costs [40][41] Business Line Data and Key Metrics Changes - Electrical and Electronic Systems (EES) segment sales were up 1% versus Q3 and up 6% on a comparable workday basis, driven by improving construction demand [48] - Communications and Security Solutions (CSS) segment sales were down 1% on a reported basis but up 3% on a comparable workday basis, benefiting from increased bandwidth needs [51] - Utility and Broadband Solutions (UBS) segment sales were slightly down versus Q3 but up 4% on a comparable workday basis, supported by strong utility demand [55] Market Data and Key Metrics Changes - The company expects market growth of roughly 3% to 5% in 2021, with potential sales growth of 3% to 6% overall [58][60] - The impact of divested businesses is expected to be a headwind of approximately 1% [60] - The company anticipates that foreign exchange rates will be neutral to slightly favorable for the full year [60] Company Strategy and Development Direction - The integration with Anixter is progressing well, with synergy capture exceeding expectations, raising the three-year post-merger cost synergy target from $200 million to $250 million [13][30] - The company aims to capitalize on secular growth trends in automation, electrification, and data center capacity, positioning itself as an industry leader [18][68] - WESCO plans to focus on cross-selling opportunities across its three strategic business units to drive growth [14][67] Management's Comments on Operating Environment and Future Outlook - Management expressed high confidence in the company's ability to deliver sustainable long-term value creation, despite the ongoing challenges posed by COVID-19 [25][66] - The company is optimistic about the economic recovery and expects demand to improve as vaccinations progress [58][66] - Management highlighted the importance of maintaining a strong cash flow generation model, especially during economic downturns [31][33] Other Important Information - The company completed a debt refinancing that reduces interest expense by $20 million per year, enhancing cash flow [24] - Liquidity at the end of Q4 was exceptionally strong at $1.1 billion, following an increase in bank credit facilities [35] Q&A Session Summary Question: Regarding the restoration of costs in fiscal '21 - Management clarified that the $150 million in resumed costs includes $50 million related to COVID and $100 million for incentive compensation, which was a surprise in scale [74][76] Question: On synergy recognition in Q1 - Management indicated that the expected benefits in Q1 will primarily come from SG&A, with limited cost of goods synergies anticipated in the first half of 2021 [78][80] Question: Impact of COVID-related cost actions on segments - Management noted that the electrical segment was disproportionately affected by the restoration of COVID-related costs, impacting margins [85][87] Question: Price increases due to commodity inflation - Management acknowledged the potential for passing through commodity price increases to customers but did not specifically include inflationary benefits in the 2021 outlook [95][96] Question: Expectations for adjusted EBITDA margins - Management indicated that Q4 serves as a good proxy for 2021 expectations, with Q1 typically being the lowest adjusted EBITDA margin quarter of the year [104][136] Question: Confidence in upside to sales and margins - Management confirmed high internal targets that exceed external guidance, emphasizing confidence in achieving synergy and margin expansion [144][146]

☑ QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 For the quarterly period ended September 30, 2020 or ☐ TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 For the transition period from to Commission File Number: 001-14989 UNITED STATES SECURITIES AND EXCHANGE COMMISSION Washington, D.C. 20549 FORM 10-Q (Mark One) WESCO International, Inc. (Exact name of registrant as specified in its charter) (State or other jurisdiction of inco ...

Financial Performance - Net sales for the second quarter of 2020 were $2.1 billion, a decrease of 2.9% compared to $2.2 billion in the second quarter of 2019, with organic sales declining by 12.3%[147] - The merger with Anixter contributed positively to net sales by 10.3% during the second quarter of 2020[149] - Net loss for the second quarter of 2020 was $35.8 million, resulting in a loss per diluted share of $0.84, compared to net income of $63.5 million and earnings per diluted share of $1.45 in the same quarter of 2019[157] - Net sales for the first six months of 2020 were $4.1 billion, a decrease of 1.4% compared to the same period in 2019, with organic sales declining by 7.3%[163] - The merger with Anixter positively impacted net sales by 5.6% during the first six months of 2020[165] - Adjusted net income attributable to common stockholders for the six months ended June 30, 2020, was $95.6 million, compared to $106.0 million for the same period in 2019, reflecting a decrease of approximately 10.3%[175] Expenses and Costs - Cost of goods sold as a percentage of net sales was 81.1% for the second quarter of 2020, compared to 81.0% for the same period in 2019[150] - SG&A expenses for the second quarter of 2020 totaled $359.8 million, representing 17.2% of net sales, up from 13.8% in the second quarter of 2019[151] - Adjusted for merger-related transaction costs, SG&A expenses were $286.4 million, or 13.7% of net sales, for the second quarter of 2020[151] - SG&A expenses for the first six months of 2020 totaled $659.1 million, or 16.3% of net sales, up from $592.4 million and 14.4% in the same period of 2019[167] - Net interest and other expenses for the first six months of 2020 were $77.1 million, including $45.3 million of merger-related financing and interest costs[170] Cash Flow and Liquidity - Operating cash flow generated for the first six months of 2020 was $132.7 million[141] - Cash generated from operations for the first six months of 2020 was $132.7 million, a turnaround from a cash usage of $8.8 million in the first half of 2019[195] - The company had $584.8 million in available borrowing capacity under its Revolving Credit Facility and $65.0 million under its Receivables Facility, totaling liquidity of $818.5 million as of June 30, 2020[181] - The company anticipates maintaining sufficient liquidity through credit facilities and cash balances for at least the next twelve months[181] Assets and Liabilities - Total assets increased to $11.7 billion as of June 30, 2020, from $5.0 billion at December 31, 2019, while total liabilities rose to $8.6 billion from $2.8 billion in the same period[180] - Current liabilities increased to $3,013.4 million as of June 30, 2020, compared to $3,578.4 million at the end of 2019[217] Mergers and Acquisitions - The company incurred $3,708.3 million in investing activities to fund the merger with Anixter[141] - The company incurred merger-related transaction costs of $78.0 million and financing costs of $45.3 million, impacting the adjusted earnings per diluted share, which was $2.28 for the six months ended June 30, 2020[175] - The company made payments of $27.7 million to acquire Sylvania Lighting Solutions during the first half of 2020[197] - The company anticipates potential risks related to the integration of Anixter and the divestiture of legacy businesses, which may affect future financial performance[223] Taxation - The effective tax rate for the second quarter of 2020 was 24.0%, compared to 21.6% in the prior year, primarily due to merger-related costs[155] - The provision for income taxes was a benefit of $0.6 million for the first six months of 2020, compared to an expense of $29.1 million in the same period of 2019[171] Other Considerations - Inflation did not have a material impact on sales for the six months ended June 30, 2020[202] - The company’s operating results are not significantly affected by seasonal factors, with sales typically increasing beginning in March[203]

WESCO® Second Quarter 2020 Webcast Presentation August 13, 2020 Forward-Looking Statements All statements made herein that are not historical facts should be considered as forward-looking statements within the meaning of the Private Securities Libjation Reform A Such statements involve known and unknown risks, uncertainties and other factors that may cause actual resuls to differ materially. These statements include, but are not li statements regarding the process to divest the legacy WESCO Utility and Data ...