WESCO International 2016 Investor Day 2016 WESCO INVESTOR DAY Safe - PowerPoint PPT Presentation

2016 WESCO INVESTOR DAY Summary 2015 Results 2016 Priorities • Increased economic and end market • Increase market share headwinds (oil & gas, metals & mining, − One WESCO sales growth industrial, foreign exchange) initiatives • One WESCO successes − Acquisitions • Cost reduction and SG&A leverage • Sustain margins − Organizational streamlining • Strong free cash flow − Lean operational excellence • Completed Hill Country, initiatives Lumigent/Aelux, and Needham Electric − Pricing and sourcing initiatives acquisitions − Supplier and product rationalization • Initiated/increased share repurchases − Branch network optimization efforts • Strong additions to leadership team • Maintain strong cash generation and solid capital structure; manage leverage within the targeted range …providing world class brands when and where needed 16 ID16 ALL

2016 WESCO INVESTOR DAY 2016 WESCO Investor Day Agenda Key Messages Developing a high-performance sales organization to drive Sales & Marketing profitable growth Streamlining the business and leveraging the supply chain Supply Chain & to expand profitability Operations Accelerating One WESCO initiatives with strengthened U.S. business leadership team New business leader and seasoned team managing in tough Canada environment 2016 update and performance goals for next 5 years Financial Overview …focused on improving our execution 17 ID16 ALL

2016 INVESTOR DAY Sales and Marketing David Bemoras Vice President, Global Sales and Marketing

2016 WESCO INVESTOR DAY WESCO Strategy Strategy Competitive Performance Differentiators Goals Accelerate One WESCO Grow faster than Growth Initiatives Product portfolio the market Strengthen Product and Services Portfolio Double digit Service capabilities EPS growth Streamline Business Free cash flow Global Supply Chain Global footprint 90%+ of net income Management Superior investor Effective Capital Allocation Talent and culture returns 19 ID16 ALL

2016 WESCO INVESTOR DAY Driving Sales Growth Sales Leadership Effectiveness 1. Recruit, retain, and develop top sales and marketing talent 2. Fully utilize WESCO customer relationship management (CRM) tool 3. Implement effective sales planning and goal setting 4. Coach, inspire, and recognize goal achievement 5. Sponsor and cultivate key customer executive relationships Execute Sales Growth Strategies 1. Operationalize One WESCO sales initiatives 2. Expand customer share 3. Pursue new global account contracts across a diverse set of end markets 4. Utilize supply chain solutions as a key differentiator 5. Capitalize on growth market opportunities …empowering our leaders and creating the “WESCO Way” 20 ID16 ALL

2016 WESCO INVESTOR DAY High-Performance Sales Culture 2014 and 2015 2016 Key Accomplishments Priorities • Improve sales management and  Implemented CRM platform execution  Developed sales planning and performance management process • Institute sales leadership training  Built category management team • Implement supplier planning process  Expanded supplier relations • Expand global accounts and field sales capacity  Developed enhanced demand creation marketing programs • Commercialize eCommerce solutions  Designed “Precision Selling” tactics  Added technical product specialists  Built supply chain services organization  Formalized One WESCO sales initiatives …building a foundation to deliver long-term organic sales growth 21 ID16 ALL

2016 WESCO INVESTOR DAY Salesbook CRM Platform SUPPLIER PLANNING ACCOUNT MANAGEMENT • Branch supplier plan management • ERP integration • Joint sales call tracking/reporting • Customer 360 • Pipeline by suppler and category • Customer activity tracking • Sales call tracking • Lead management • Opportunity management CONTACT MANAGEMENT • Value creation event tracking • Customer contact activity • Dodge/IIR lead integration • Outlook synchronization • Marketing campaigns GENERAL ANNUAL SALES PLANNING • Automated reporting • Mobile application functionality • OSR plans by account/supplier • OSR action plans by supplier • Monthly forecasting • Sales performance management …web-based application supporting over 2,000 sales associates 22 ID16 ALL

2016 WESCO INVESTOR DAY Sales Planning and Performance Management • Objectives • 2016 Deployment • 1,200 outside sales reps across the • Create a uniform planning process U.S. and Canada across the organization • Develop strategic account • 16,000 accounts planned assignments by sales person • 4,500 target accounts identified • Establish sales and margin targets • 15 core supplier targets established • Establish core supplier targets • Measure and track performance • Performance management process established • Manage performance against plans …sum of individual targets exceeds overall WESCO sales growth plan 23 ID16 ALL

2016 WESCO INVESTOR DAY Product Category and Supplier Management Communications & Lighting & MRO & Electrical Security Sustainability General Supplies …enabling higher levels of sales productivity and customer service 24 ID16 ALL

2016 WESCO INVESTOR DAY Marketing and Demand Creation 1 Research to develop 6 deep segment and 2 Measure results and value proposition Identify growth opportunities refine programs to understanding with sales and product maximize ROI category leaders 5 Business Development qualifies leads and distributes to sales leadership 3 team for 4 Develop demand creation assignment Launch campaigns at targeted programs to support growth customer segments – opportunities End Users, Contractors, Utilities, and Government …deliver message, qualify leads, track customers through the pipeline 25 ID16 ALL

2016 WESCO INVESTOR DAY One WESCO • Driving better than market growth • Expanding customer relationships and differentiating WESCO across a diverse set of end markets • Leveraging the industry’s One WESCO is about broadest product offering, integrating our multi-company expansive services portfolio, heritage and capabilities into and organizational resources one operating company, where • Delivering measurable business the whole is greater than the value sum of our parts. 26 ID16 ALL

2016 WESCO INVESTOR DAY One WESCO Sales Initiatives Established over ten One WESCO initiatives built on • Business unit collaboration • Customer share expansion • Organizational resource utilization Two Key Initiatives Checkerboard Cross Selling Execution …leveraging our portfolio and resources to grow with existing customers 27 ID16 ALL

2016 WESCO INVESTOR DAY Datacom / Electrical Cross Selling Servicing Existing Datacom Datacom Branch Datacom OSR ISR Customer Servicing Existing Branch Electrical Electrical Electrical OSR ISR Customer Specialized support for OSRs and customers across all product categories  Enables efficient customer share expansion  Cost-effectively increases sales capacity  Enhances the customer experience  Creates supplier advocacy …generating incremental organic sales growth 28 ID16 ALL

29 Checkerboard Strategy LOCATION 5 LOCATION 4 LOCATION 3 LOCATION 2 LOCATION 1 New business Penetration % Sales < 20% ~ 50% >80% Security Comm & DATA COMMUNICATIONS Data …resulted in 40% sales increase with a mature global account WIRE DATA COMMUNICATIONS Oil and Gas Global Account Customer with Trapped Potential CONDUIT ‐ METAL Wire & Cable CONDUIT ‐ NON METALLIC CONDUIT & CABLE FITTINGS RACEWAYS, WIREWAYS,STRUT,CABLE TRAY WIRE, POWER, CORDS & BUILDING BOXES METALLIC & NON ‐ METALLIC CIRCUIT BREAKERS CUTOUT, ARRESTOR, CAPACITORS & H.V. SWITCHES ENCLOSURES Electrical Distribution & Controls ENGINEER SERVICES & (W) RENEWAL PARTS FUSES, FUSE BLOCKS & FUSE HOLDERS LOADCENTERS/BREAKERS/METER CENTER PRODUCT CATEGORY PENETRATION METERING/INSTRUMENT TRANSFORMERS PANELBOARDS/SWITCHGEAR/BUSDUCT T&D UTILITY PRODUCTS TERMINATIONS,LUGS,CONNECTORS & ACCESSORIES TRANSFORMERS TRANSFORMERS:DISTRIBUTION TRANSFORMERS:POWER WIRING DEVICES MOTOR CONTROL CENTERS Automation MOTORS & DRIVES SAFETY SWITCHES CONTROL ‐ OPEN & CLOSED PROGRAMMABLE CONTROLLERS Safety & Industrial Supplies ELECTRICAL SUPPLIES 2016 WESCO INVESTOR DAY FANS,HEATERS,VENTING EQUIP. INDUSTRIAL MAINTENANCE MISC ELECTRICAL TOOLS TAPE,INSULATING MATERIAL,HEAT SHRINK TUBING,SEALANTS & ADHESIVES OEM Lighting FACTORY PRODUCTS BALLASTS LAMPS ID16 ALL LIGHTING

2016 WESCO INVESTOR DAY Checkerboard Execution Data Analysis Discovery Execution Across 27 product segments Validate opportunities Execute sales plan Strategy Supply Chain Solution • One WESCO Phase 1 Scope • Product expansions 256 Sites • Capital projects • Outsourcing Double digit growth in the following Over $45M of product categories: incremental sales Results • Communications and security in 2015… • Safety & industrial • Wire & cable ~30% growth • Electrical distribution & controls …targeting key global account sites to unlock untapped sales opportunities 30 ID16 ALL

2016 WESCO INVESTOR DAY 2015 Global Accounts New Contracts / Agreements Renewals Finance Aerospace General Electrical Metals and Paper Aerospace Solar Mining Food Oil and Gas Transportation Technology Transportation Oil and Gas Paper Health OEM Food Retail Metals OEM General Electrical 95% Renewal Rate Over $500M Total Value* $875M Total Value* *reflects sales over the total life of the agreement …winning diversified new business while retaining current customers 31 ID16 ALL

2016 WESCO INVESTOR DAY WESCO Supply Chain Solutions 4-Step Value Creation Process 1. Understand the customer’s business 2. Match WESCO’s capabilities to customer needs 3. Uncover additional opportunities to create value 4. Deliver measurable business value …providing customized and scalable solutions 32 ID16 ALL

2016 WESCO INVESTOR DAY Supply Chain Solution Success Story National Solar Provider Supply Chain Services • WESCO developed a procurement and material management program for this customer, including: − A commodity procurement program delivering commodity price stability − A customized e-Commerce solution − Jobsite material management services, deployed through vendor managed inventory • Due to WESCO’s unique program and value proposition: − WESCO’s scope of services was expanded to support the customer’s commercial solar business. − WESCO was designated as a preferred distributor for commercial and residential solar in 2016. 33 ID16 ALL

2016 WESCO INVESTOR DAY Capitalize on Growth Markets Critical Infrastructure Cloud Computing Protection Intelligent Buildings LED Lighting Retrofit Alternative Energy Physical Security Broadband Industrial Networking Communications …developing core competencies and resources in growth markets 34 ID16 ALL

2016 WESCO INVESTOR DAY Supporting eBusiness Requirements eCommerce Objectives Primary Secondary Selectively shift existing customer Win incremental business orders to digital channels − – Reduce costs and expand profitability Provide digital capabilities − – Expand share with existing customers Convert sales force time from order entry to prospecting – Strengthen customer retention …driving cost reduction and supporting customer retention 35 ID16 ALL

2016 WESCO INVESTOR DAY Summary • Organizational alignment driving improved levels of execution • Sales leadership driving higher performance sales culture • Operationalizing One WESCO sales initiatives • Collaborating more effectively with our key suppliers • Creating solutions to provide value for our customers • Executing demand creating marketing programs • Developing core competencies and resources in growth markets • Building eCommerce capabilities to reduce cost to serve and increase customer retention • Targeting at least 2% above market growth from sales and marketing initiatives 36 ID16 ALL

2016 INVESTOR DAY Supply Chain and Operations Hemant Porwal Vice President, Global Supply Chain and Operations

2016 WESCO INVESTOR DAY WESCO Strategy Strategy Competitive Performance Differentiators Goals Accelerate One WESCO Grow faster than Growth Initiatives Product portfolio the market Strengthen Product and Services Portfolio Double digit Service capabilities EPS growth Streamline Business Free cash flow Global Supply Chain Global footprint 90%+ of net income Management Superior investor Effective Capital Allocation Talent and culture returns 38 ID16 ALL

2016 WESCO INVESTOR DAY Supply Chain and Operations Our Mandate Deliver growth and increase profitability by leveraging the value chain from sourcing to customer fulfillment with the right people, process, infrastructure and technology. Our Values • Feel the heat of the businesses • Supply Chain leadership across value chain • Win with high level of integrity and respect for our supplier partners • Operational excellence via Lean …the nerve center of One WESCO 39 ID16 ALL

2016 WESCO INVESTOR DAY Supply Chain and Operations Organization designed for efficiency and effectiveness in sync with marketing demand creation, sales operations, and category management Sourcing Inventory Pricing Operations Transportation $90M+ spend $6B+ spend $800M+ 80,000+ 9 distribution inventory customers centers 12,000+ Special Pricing 1M+ products 500+ branches Agreements …focused on customer satisfaction and profitability 40 ID16 ALL

2016 WESCO INVESTOR DAY Roadmap to Deliver Step-Change Performance Sourcing Inventory Pricing Optimization Optimization Optimization Network Transportation Optimization Optimization …new capabilities and ways of working 41 ID16 ALL

2016 WESCO INVESTOR DAY Sourcing and Inventory Evolution 1 2 3 Assessed Continuous Best-In- Opportunities Improvement Class • Spend negotiated locally • Deep dives to • Strategic and diverse understand customer supply base • Costs negotiated at the specifications and • Spend managed by customer level preference Category • Limited strategic supplier • Consolidate • Centralized and base requirements and automated source to negotiate regionally/ pay transactions nationally • Higher product turns • Expand global sourcing and improved cash • Optimize inventory conversion cycle • Standardize pay terms …early stages of evolution 42 ID16 ALL

2016 WESCO INVESTOR DAY Supplier Spend Overview Grow Strategic Suppliers Leverage Spend Reduce Complexity …reducing complexity while improving cost and volume rebates 43 ID16 ALL

2016 WESCO INVESTOR DAY Reduce Complexity and Leverage Spend • Bags, Strapping, Tape, Filler Corrugate • Purchased by all branches • Purchased by all branches • 20+ suppliers to 1 • 20+ suppliers to 1 • From 175+ SKUs to <20 SKUs • From 200+ SKUs to <30 SKUs SAVINGS 25% total savings achieved …initial results are encouraging 44 ID16 ALL

2016 WESCO INVESTOR DAY Leverage Spend to Grow Strategic Suppliers • Today Steel Conduit Yesterday • 10+ suppliers • Commodity Center of Excellence • No spend leverage • 4 suppliers • Inconsistent pricing • Monthly awards • Every purchase order • Same unit cost on negotiated every purchase order COST COST REBATE REBATE 150+ bps 150+ bps 10+ % 10+ % …initial results are encouraging 45 ID16 ALL

2016 WESCO INVESTOR DAY Product Categories Products Automation Lighting & 9% Controls 10% 40% Distribution 11% Supplies Equipment 15% 15% Communications & Security Wire, Cable & Conduit …near term focus is on General Supplies and Wire, Cable & Conduit 46 ID16 ALL

2016 WESCO INVESTOR DAY Pricing Evolution 1 2 3 Assessed Continuous Best-In- Opportunities Improvement Class • Prices set primarily by • Region, Platform and • Pricing analytics and branch, initiating shift to Category pricing structure optimization tools category with KPIs in place • Price intelligence • Most customer orders • Expand use of pricing tool spanning product are priced at the local kit: categories, industry (branch / customer) level verticals and customer – Customer size segmentation • In-house developed – Gap-to-goal • Pricing established as a pricing analytics – Standard cost Center of Excellence – Floor pricing – Margin thresholds …early stages of evolution 47 ID16 ALL

2016 WESCO INVESTOR DAY Disciplined Approach to Pricing Analyze Gap to Goal 1 • Top supplier deep dives • Cross-functional plan with • Best-in-class analysis ownership, action items, and completion dates • Stale invoice price Approach • Gross margin rate 4 2 analysis to Pricing • Price overrides • Rate / volume analysis • Target/floor performance • Top SKUs review dashboard • Margin clinics 3 • Customer segmentation • General and default price increase • Supplier increase management • Price recalibration • Strategic use of floor levels 48 ID16 ALL

2016 WESCO INVESTOR DAY Effective Collaboration – Powered by Pricing Analytics Eastern Pennsylvania Approach Measurement 1. Align customer segmentation 200+ bps 2. Top SKUs review margin improvement 3. Best-in-class analysis to build confidence on sell side Increased sales 4. Rate / volume analysis to by >10% drive sales growth …initial results are notable 49 ID16 ALL

2016 WESCO INVESTOR DAY Operations and Transportation Evolution 1 2 3 Assessed Continuous Best-In- Opportunities Improvement Class • One WESCO branch • Further develop and • Strategically located consolidations expand distribution branches, distribution center and network centers and sales offices • Transportation managed worldwide • Manage transportation by country • Transportation is a global spend to deliver improvements in service function with agile and capabilities capabilities for the “last mile” • Infrastructure that enables growth, exceeds customer requirements and delivers economic value …early stages of evolution 50 ID16 ALL

2016 WESCO INVESTOR DAY Our Network in North America Branch Changes (Since 2010) 97 47 New Merged/ Closed …meeting customer demands and driving operational synergies 51 ID16 ALL

2016 WESCO INVESTOR DAY Supply Chain and Operations Summary • Laid the groundwork in 2015 to support operating margin expansion • Early successes have validated our approach • Engaged with both local and global teams • Expecting to deliver at least 20 bps of annual margin improvement through Supply Chain and Operations initiatives 52 ID16 ALL

2016 INVESTOR DAY United States Andy Bergdoll Group Vice President & General Manager, United States

2016 WESCO INVESTOR DAY U.S. Business Profile WESCO is a leading $5.6B Annual Sales distributor with a large blue- • Industrial, Construction, Utility, and Commercial, chip customer and supplier Institutional, and Government (CIG) base and a strong local • 350 Branches presence across the U.S. • 5 Distribution Centers • 4 Value-Add Assembly operations ~$300B Addressable Market • Strategic Priorities • Leverage our competitive advantage as a premier supply chain solutions provider • Cultivate long-term customer and supplier partnerships which generate superior value • Attract, develop, engage, and retain talent • Return to organic sales growth and profitability expansion • Execute business integration initiatives …WESCO’s largest geographic market 54 ID16 ALL

2016 WESCO INVESTOR DAY U.S. Markets and Products Markets Products Automation Supplies Construction CIG 9% Lighting & 15% Controls 27% 9% Distribution 42% 9% 18% Equipment Utility 15% Wire, Cable 40% 16% & Conduit Communications Industrial & Security …diversified customer base and product lines 55 ID16 ALL

2016 WESCO INVESTOR DAY U.S. Growth Sales ($B) 5.6 5.6 • Organic sales down 2% 5.2 5.2 • Industrial sales decline partially 4.9 offset by solid growth in utility and CIG 4.2 • Completed three acquisitions Flat to low single-digit sales growth expected in 2016, including 2015 acquisitions 2010 2011 2012 2013 2014 2015 See appendix for non-GAAP reconciliations …execution and acquisitions mitigated by end market headwinds 56 ID16 ALL

2016 WESCO INVESTOR DAY 2016 U.S. Sales Outlook Flat to low single-digit growth 2% to 3% (2)% to (4)% $5.6B 2% to 3% • Hill Country • Needham • Sales management effectiveness • Aelux / Lumigent • Sales force effectiveness • Opportunity pipeline • Territory and account management • Sales force expansion 2015 Actual Growth Initiatives Acquisitions End Markets 2016 Outlook …improved execution and acquisitions partially mitigated by continued end market headwinds in 2016 57 ID16 ALL

2016 WESCO INVESTOR DAY 2016 U.S. End Market Expectations • Upstream Oil & Gas • Manufacturing • Downstream • Metals & Mining • Chemical Processing Oil & Gas Industrial • Food • Pharmaceutical • Industrial • Infrastructure • Residential • Commercial b Construction • Generation • Distribution • Renewable Energy • Transmission Utility • Federal Government • Data Centers • State and Local • Physical Security Government • Commercial Solar CIG • Education and • Lighting Renovation Institutions …sectors of market opportunity 58 ID16 ALL

2016 WESCO INVESTOR DAY 2016 U.S. Profitability Outlook Operating Margin • Stable billing margins Flat to +40 bps 0-15 bps • Supplier volume rebate 0-25 bps management • Carry-over benefit from 2015 structural cost reduction actions • Continued Lean productivity initiatives • Continued organizational streamlining and network rationalization 2015 Gross Operating 2016 Actual Margin Cost Outlook Leverage …leveraging our Supply Chain and Operations initiatives 59 ID16 ALL

2016 WESCO INVESTOR DAY U.S. Investments Organic Acquisitions since 2010 Dallas One WESCO Facility Opened 2012 Los Angeles One WESCO Facility Opened 2013 Seattle One WESCO Facility Opened 2015 Inside Sales Support Solar Resources Construction Resources 2015 Investment …strengthening our leadership position 60 ID16 ALL

2016 WESCO INVESTOR DAY U.S. Business Structure 2014 2016 East East Central West West EESCO EESCO OEM OEM MRO and Safety MRO and Safety Utility Utilities Broadband WESCO Integrated Supply WESCO Integrated Supply Manufactured Structures …streamlining and simplifying 61 ID16 ALL

2016 WESCO INVESTOR DAY U.S. Success Stories Public Utility Internet Service Provider Integrated Supply Value Creation Services • Largest and one of the fastest-growing • Existing customer with numerous data center electrical co-ops in the U.S. projects • Won a pilot project to manage and supply one • WESCO positioned as a trusted advisor of eight service centers, with opportunity to providing technical assistance, design cost expand to additional centers analysis, customer inventory management, training and education • First application of the Integrated Supply • Scope of supply expanding to include security, model in the public power market lighting, wire and customer product sourcing …growing customer share by expanding locations, products, and services 62 ID16 ALL

2016 WESCO INVESTOR DAY U.S. Summary • U.S. market provides attractive growth prospects and continued opportunities for industry consolidation • WESCO has strong capabilities, extensive infrastructure, and a broad product and services portfolio across the U.S. • Strengthening our competitive advantage with One WESCO • 2016 focus on returning to organic sales growth and profitability expansion • Improved execution is the key to success in 2016 63 ID16 ALL

2016 INVESTOR DAY Canada Nelson Squires Group Vice President and General Manager, Canada

2016 WESCO INVESTOR DAY Canada Business Profile WESCO is the largest distributor $1.5B USD Annual Sales with a strong presence across • Construction, Industrial, Utility, and CIG Canada. • 127 Branches • ~$7B+ Addressable Market • 4 Distribution Centers Strategic Priorities 1. Fully operationalize One WESCO strategy 2. Effectively operate WESCO and EECOL dual channel strategy 3. Diversify customer base 4. Maximize best-in-class supplier relationships 5. Accelerate Lean for continuous improvement and customer value creation …leadership position through organic growth and acquisitions 65 ID16 ALL

2016 WESCO INVESTOR DAY Canada Markets and Products Markets Products Automation CIG Construction 7% 8% Utility Supplies Lighting & 8% Controls 19% 35% 54% 30% 17% 7% Distribution Industrial 15% Equipment Communications & Security Wire, Cable & Conduit …diversified customer base and product lines 66 ID16 ALL

2016 WESCO INVESTOR DAY Canada Branch Locations WESCO 69 EECOL 58 Distribution Centers …strong national presence 67 ID16 ALL

2016 WESCO INVESTOR DAY Canada Growth Sales (U.S. $B) • Sales decreased 19% in 2015 1.9 1.9 – Down 7% organically – Down 12% due to foreign 1.5 exchange • Sales decline in the Prairies 1.1 was partially offset by growth in 0.9 Ontario and British Columbia 0.7 High single-digit to low double- digit decline expected in 2016, including foreign currency 2010 2011 2012 2013 2014 2015 translation C$ $0.7 $0.9 $1.1 $1.9 $2.1 $1.9 See appendix for non-GAAP reconciliations …challenging 2015, impacted by foreign exchange and commodity deflation 68 ID16 ALL

2016 WESCO INVESTOR DAY 2016 Canada Sales Outlook High single-digit to low double- $1.5B 5% to 6% digit decline (8)% to (10)% (6)% to (8)% • Territory and account management • Cross-sell safety offering • Focus on growth markets and categories outside of oil and gas • Expand Utility business 2015 Actual Growth Initiatives End Markets FX 2016 Outlook …improved execution overshadowed by continued end market headwinds and currency impact in 2016 69 ID16 ALL

2016 WESCO INVESTOR DAY 2016 Canada Market Expectations • Oil and Gas • Commercial Construction • Utility Alberta • Residential (multi-family) • Government (P3) • Oil and Gas • Commercial Construction • Utility • Mining Saskatchewan / • Government Spending Manitoba • Residential • Commercial Construction • Manufacturing • Government (P3) • Solar and Wind • Transportation • Multifamily Residential Ontario • Mining • Forestry • Utility • Mining • Forestry • Utility • Oil & Gas • Public, Private Partnerships • Government Spending British • Residential (multi+single) Columbia • Commercial Construction • OEM • Residential • Government spending • Commercial • Mining • Industrial projects Construction Quebec • Solar and Wind …sectors of market opportunity 70 ID16 ALL

2016 WESCO INVESTOR DAY 2016 Canada Profitability Outlook Operating Margin (20) to • Stable billing margins 30 bps 0 to 20 bps • Improvement in under- performing branches (20) to 10 bps • Carry-over benefit from 2015 structural cost reduction actions • Continued Lean productivity initiatives • Additional 2016 cost actions, as required 2015 Gross Operating 2016 Actual Margin Cost Outlook Leverage …leveraging our Supply Chain and Operations initiatives 71 ID16 ALL

2016 WESCO INVESTOR DAY Canada Investments Organic Acquisitions since 2010 Edmonton Distribution Center Opened 2009; expanded 2012 Toronto Distribution Center Opened 2012 Montreal Distribution Center Opened 2013 5 new branches opened since 2012 Significant Lean engagement across all branches …strengthening our leadership position 72 ID16 ALL

2016 WESCO INVESTOR DAY EECOL Electric EECOL Electric Business Profile • Approximately $0.7B in annual sales in Canada • More than 20,000 customers − Commercial and Residential Construction − Industrial − Oil & Gas − Mining − Utility • Long-standing supplier relationships enable dual-channel strategy • EECOL Electric is headquartered in • Focusing on attractive growth opportunities Calgary, Alberta, Canada outside of the industrial end markets: • EECOL has been operating in Canada − British Columbia construction since 1919 − Utility − Renewable energy …transformative acquisition expanded national leadership position 73 ID16 ALL

2016 WESCO INVESTOR DAY Canada Success Stories Commercial Industrial Site Management Project and Warehouse • Five-year Global Account award – • Multi-year, single source agreement on National Lighting Upgrade Initiative and Electrical MRO and Capital Bulks MRO Supply • 11 customer site locations being served • Utilization of advanced WESCO Lighting • Situated throughout the Provinces of and Energy Management capabilities Alberta and Saskatchewan • Complete material supply program using • Incorporated all third party contractor third party service partners and installers spend • Over 10M sq. ft. under scope of work • 24/7 customer service and support …growing customer share by expanding locations, products and services 74 ID16 ALL

2016 WESCO INVESTOR DAY Canada Summary • WESCO is a market leader in Canada − Strong resources and capabilities, the broadest infrastructure and a diverse customer base − Attractive growth opportunities are available across the business − One WESCO provides a strategic advantage to further leverage Canadian acquisitions and deliver profitable growth • Oil & Gas markets will remain a headwind in 2016 • Continued focus on cost controls, margin improvement, and capturing profitable growth while providing exceptional service to our customers • Improved execution of our strategy and priorities is the key focus in 2016 75 ID16 ALL

2016 INVESTOR DAY Financials Ken Parks Senior Vice President and Chief Financial Officer

2016 WESCO INVESTOR DAY WESCO Strategy Strategy Competitive Performance Differentiators Goals Accelerate One WESCO Grow faster than Growth Initiatives Product portfolio the market Strengthen Product and Services Portfolio Double digit Service capabilities EPS growth Streamline Business Free cash flow Global Supply Chain Global footprint 90%+ of net income Management Superior investor Effective Capital Allocation Talent and culture returns 77 ID16 ALL

2016 WESCO INVESTOR DAY Financial Performance 8% 11% Sales EPS CAGR CAGR ($ Billions) ($) 7.9 5.18 7.5 7.5 5.02 6.6 4.38 4.18 6.1 3.96 5.1 2.50 2010 2011 2012 2013 2014 2015 2010 2011 2012 2013 2014 2015 97% of Free Cash Flow Total Shareholder Return Net Income on Average ($ Millions) (January 1, 2010 through December 31, 2015) 308 265 261 132% 126% 231 83% 82% 134 62% 112 54% WCC S&P RUT GWW FAST AXE 2010 2011 2012 2013 2014 2015 Note: See appendix for non-GAAP reconciliations. …solid long-term performance, including a challenging 2015 78 ID16 ALL

2016 WESCO INVESTOR DAY 2015 Highlights Organic Growth • Organic sales down 3% (%)  Down 2% in the U.S. 8.1  Down 7% in Canada 6.7 6.0 • Oil and gas sales down 3.2 approximately 25% 1.6 • Cost controls partially mitigated sales and gross margin declines (3.0) • Completed Hill Country, (5.3) Lumigent/Aelux and Needham acquisitions (7.6) • Repurchased 2.5 million shares Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 2014 2015 Note: Workday adjusted; see appendix for non-GAAP reconciliations. …challenging year, driven by industrial, Canada & foreign exchange …challenging year, driven by industrial, Canada & foreign exchange 79 ID16 ALL

2016 WESCO INVESTOR DAY Cost Leverage Sales per Employee SG&A ($ Thousands) (%) 19% NAED 2014 887 860 843 829 807 788 15.1 611 14.2 14.1 14.0 NAED 13.7 13.6 SG&A/ 119 122 125 114 115 113 Employee ($ thousands) 2010 2011 2012 2013 2014 2015 2010 2011 2012 2013 2014 2015 NAED: National Association of Electrical Distributors Note: See appendix for non-GAAP reconciliations …compares favorably to industry benchmarks 80 ID16 ALL

2016 WESCO INVESTOR DAY Cost Actions 2015 • Eliminated approximately 460 positions • Eliminated or consolidated 21 branches, including our businesses in Australia and Brazil. • Annual run-rate benefit of ~$50M or ~$0.70 per share • 2016 impact of ~$25M or ~$0.35 per share 2016 • Continued discretionary cost control • Further cost reduction actions to be implemented as we continue to streamline the business and to respond to a softer economic environment …managing operating costs to strengthen and streamline the business 81 ID16 ALL

2016 WESCO INVESTOR DAY Operating Margin 8% 6% 5.0% 4% 3.9% 2% 2.3% 0% 2000 2001 2002 2003 2004 2005 2006 2007 2008 2009 2010 2011 2012 2013 2014 2015 Note: See appendix for non-GAAP reconciliations. …sequentially raising the trough through scale and cost management 82 ID16 ALL

2016 WESCO INVESTOR DAY EPS Walk FY $5.18 ) 2014 Core operations (0.95) Foreign exchange impact (0.31) Acquisitions (0.10) Tax (0.06) Share count 0.22) $4.18 ) 2015 …sales, gross margin, and FX headwinds outweighed cost control and share repurchase activity 83 ID16 ALL

2016 WESCO INVESTOR DAY Effective Capital Allocation Leverage (Total Par Debt to TTM EBITDA) 5 Cash Deployment > $1B of free 4.5 cash flow over • Support organic growth last 4 years 4 • Fund accretive acquisitions 3.8X 3.5 Target Leverage 2.0x – 3.5x • Reduce financial leverage 3 2.5 • Share repurchases 2 • Dividends 1.5 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 2013 2014 2015 Note: See appendix for non-GAAP reconciliations. …maintaining fiscal discipline while funding growth 84 ID16 ALL

2016 WESCO INVESTOR DAY 2016 Anticipated Business Environment ‒ • Upstream oil and gas • Non-residential • Residential construction spending and impact, construction • Downstream oil and gas particularly on Canadian • U.S. electrical equipment economy • Consumer spending orders • Foreign currency • Canada government • U.S. utility spending translation spending • Industrial production • Metals & Mining • Energy prices • U.S. Government • China growth slowing • Canada utility spending spending • Renewable energy • Global growth • Credit availability and low • Raw material prices interest rates • Unemployment • Share shift to larger • Election impact players …continuation of the protracted economic recovery 85 ID16 ALL

2016 WESCO INVESTOR DAY Industrial End Market WESCO Industrial Sales Core Sales Growth versus Prior Year 42% 5.0% • Global Accounts • Integrated Supply (4.1%) 39% • OEM (10.2%) 2015 • General Industrial (11.3%) (14.2%) (16.7%) FY 2014 Q1 2015 Q2 2015 Q3 2015 Q4 2015 NOTE: Excludes acquisitions during first year of ownership. Workday adjusted; see appendix for non-GAAP reconciliations. Key Market Indicators U.S. industrial production ISM Purchasing Managers’ Index Capacity utilization Canadian industrial production Improving Flat Declining …expecting HSD to MSD sales decrease in 2016 86 ID16 ALL

2016 WESCO INVESTOR DAY Construction End Market Core Sales Growth versus Prior Year WESCO Construction Sales 42% 3.9% 1.5% • Non-Residential 2015 • Residential (7.3%) (7.7%) (10.5%) 32% (12.5%) FY 2014 Q1 2015 Q2 2015 Q3 2015 Q4 2015 NOTE: Excludes acquisitions during first year of ownership. Workday adjusted; see appendix for non-GAAP reconciliations. Key Market Indicators Architectural Billings Index NEMA electroindustry business confidence index Construction starts and put in place Canadian non-residential construction Improving Flat Declining … expecting LSD sales decline to LSD sales growth in 2016 87 ID16 ALL

2016 WESCO INVESTOR DAY Utility End Market Core Sales Growth versus Prior Year WESCO Utility Sales 6.6% 6.5% 5.7% • Investor Owned 2015 3.4% 15% • Public Power • Utility Contractors 1.7% 0.1% FY 2014 Q1 2015 Q2 2015 Q3 2015 Q4 2015 NOTE: Excludes acquisitions during first year of ownership. Workday adjusted; see appendix for non-GAAP reconciliations. Key Market Indicators Distribution grid maintenance and upgrades Generation MRO, upgrades, expansions Transmission line infrastructure build-out Non-residential and residential construction starts Improving Flat Declining … expecting flat to LSD sales growth in 2016 88 ID16 ALL

2016 WESCO INVESTOR DAY CIG End Market Core Sales Growth versus Prior Year WESCO CIG Sales 42% 4.5% 4.3% 14% • Commercial • Institutional 2015 (0.8%) • Government (0.5%) (3.0%) (3.5%) FY 2014 Q1 2015 Q2 2015 Q3 2015 Q4 2015 NOTE: Excludes acquisitions during first year of ownership. Workday adjusted; see appendix for non-GAAP reconciliations. Key Market Indicators Government spending Communications and security upgrades Education, healthcare, and financial Improving Flat Declining …expecting flat to LSD sales growth in 2016 89 ID16 ALL

2016 WESCO INVESTOR DAY 2016 Sales Outlook Sales Outlook Range End Market: Industrial (HSD) to (MSD) Construction (LSD) to LSD Utility Flat to LSD CIG Flat to LSD End Market Sales Growth (4)% to (1)% Market outperformance ~2% Foreign currency translation (3)% to (2)% Carryover impact of 2015 acquisitions 2% Contingency (2)% to (1)% WESCO (5)% to Flat Note: Excludes unannounced acquisitions. …expecting modest improvement in the second half of 2016 90 ID16 ALL

2016 WESCO INVESTOR DAY 2016 Margin Outlook Operating Margin 5.9% 5.9% 5.7% 5.0% 5.4% 5.0% 4.8% 4.2% 2010 2011 2012 2013 2014 2015 2016E Headwinds Strategies to Mitigate ‒ Continued pressure on pricing and mix + Restructuring cost savings ‒ Restoring commissions and incentives + Cost saving contingency planning ‒ Wage and benefit inflation + Pricing analytics, tools and tactics + Procurement strategies and systems Note: See appendix for non-GAAP reconciliations. …expecting to sustain current margin levels 91 ID16 ALL

2016 WESCO INVESTOR DAY 2016 Sales and Operating Profit Outlook Sales Operating Change Profit Change (%) ($M) U.S. [a] Flat to LSD 0 to 30 Canada [b] (LDD) to (HSD) (20) to (5) International [b] (MSD) (1) to 0 Cost management 6 to 0 Contingency (2)% to (1)% ~(20) WESCO (5)% to Flat (30) to 0 [a] Includes the impact of 2015 acquisitions [b] Includes the impact of foreign currency translation …built on robust business plans 92 ID16 ALL

2016 WESCO INVESTOR DAY 2016 Financial Outlook Sales Diluted EPS Free Cash Flow ($B) ($) ~7.5 7.9 5.02 5.18 7.5 7.5 ~7.1 4.20 6.6 4.38 4.18 6.1 3.96 3.75 5.1 At least 90% of 2.50 net income 2010 2011 2012 2013 2014 2015 2016E 2010 2011 2012 2013 2014 2015 2016E Sales Flat to (5)% Effective tax rate ~30% Operating margin 4.8% to 5.0% Diluted shares outstanding ~47M Note: See appendix for non-GAAP reconciliations. 93 ID16 ALL

2016 WESCO INVESTOR DAY Five Year Outlook Performance 2016 to 2020 Goals • Organic growth Grow faster than • Acquisitions the market • Stable gross margins Double digit • Cost structure optimization EPS growth • Working capital management Free cash flow • Controlled capex 90%+ of net income • Improving ROIC Superior investor • Consistent execution returns 94 ID16 ALL

2016 WESCO INVESTOR DAY 2016-2020 Outlook Sales EPS ($ B) ($) 7% to 9% 10+% CAGR CAGR 5.18 5.02 ~7.5 ~4.20 7.9 4.38 7.5 7.5 Average per year 4.18 ~7.1 3.96 • ~20 bps 6.6 3.75 Average per year 6.1 gross margin • 2% from • ~50% pull 5.1 organic growth through initiatives 2.50 • ~30% effective • 2-3% from tax rate acquisitions • Share • Market growth repurchase to manage dilution 2010 2011 2012 2013 2014 2015 2016E 2020E 2010 2011 2012 2013 2014 2015 2016E 2020E See appendix for non-GAAP reconciliations. • Free cash flow equal to at least 90% of Net Income • ROIC above WACC, including acquisitions …managing the business for double-digit EPS growth 95 ID16 ALL

2016 INVESTOR DAY WESCO International John Engel Chairman, President and Chief Executive Officer

2016 WESCO INVESTOR DAY Invest in WESCO • Industry leader with deep domain expertise in electrical, industrial, construction, and utility • Proven business model and well positioned in large, fragmented markets • Blue-chip customer and supplier base • Proven acquirer and integrator in a consolidating industry • Extensive global supply chain capability • Operational excellence culture founded on Lean • Operating margin expansion results and future potential • Strong free cash flow generation through economic cycle …strong company with proven and effective supply chain solutions 97 ID16 ALL

2016 WESCO INVESTOR DAY 98 ID16 ALL

2016 INVESTOR DAY Appendix

2016 WESCO INVESTOR DAY Sales Growth (%) 2013 2014 2015 Q1 Q2 Q3 Q4 FY Q1 Q2 Q3 Q4 FY Q1 Q2 Q3 Q4 FY Consolidated 12.6 13.2 16.6 14.3 14.2 0.2 5.9 7.6 6.1 5.0 0.3 (4.4) (7.4) (6.7) (4.7) Acquisition Impact 16.0 14.6 14.1 13.8 14.6 0.5 1.6 1.8 1.6 1.4 1.2 1.6 2.0 3.0 2.0 Core (3.4) (1.4) 2.5 0.5 (0.4) (0.3) 4.3 5.8 4.5 3.6 (0.9) (6.0) (9.4) (9.7) (6.7) FX Impact 0.0 (0.2) (0.7) (1.0) (0.4) (1.9) (1.7) (0.9) (2.0) (1.6) (2.5) (3.0) (4.1) (3.7) (3.4) Organic (3.4) (1.2) 3.2 1.5 0.0 1.6 6.0 6.7 6.5 5.2 1.6 (3.0) (5.3) (6.0) (3.3) WD Impact (1.6) 1.6 (1.6) (0.4) (1.6) 1.6 Normalized Organic (1.8) (1.2) 1.6 1.5 0.0 1.6 6.0 6.7 8.1 5.6 3.2 (3.0) (5.3) (7.6) (3.3) Estimated Price Impact 1.0 0.0 0.0 0.0 0.2 0.5 0.5 0.5 0.5 0.5 0.0 0.0 0.0 0.0 0.0 100 ID16 ALL