2014 Investor Day

Welcome and Overview

Gregory Kenny
President & Chief Executive Officer

April 3, 2014

Safe Harbor
Safe Harbor
Some slides and comments included herein, particularly related to estimates, comments
or expectations about future performance or business conditions, may contain forwardlooking statements. Important factors that may cause actual results to differ materially
from the content of the forward-looking statements are described in our safe harbor
caution. Please review our safe harbor caution in our Form 10-K filed with the SEC
on March 3, 2014 and subsequent filings with the SEC.

Adjusted EBITDA and Operating Income

The Company is providing certain supplemental Adjusted EBITDA (defined as earnings
before interest, taxes, depreciation, amortization, other expense/income, preferred stock
dividends and extraordinary, nonrecurring or unusual charges and other certain items)
and Adjusted Operating Income (defined as operating income before extraordinary,
nonrecurring or unusual charges and other certain items) comparisons, which are
non-GAAP financial measures.
These Company defined adjusted measures are being provided because management
believes they are useful in analyzing the underlying operating performance of the business.
A reconciliation of Adjusted EBITDA to GAAP Net Income and Adjusted Operating
Income to Reported Operating Income has been provided in the Appendix to the
Financial Update Presentation.
2

Agenda
Time

Description

Presenter

1:00 1:30

Welcome & Overview

Gregory Kenny, President & CEO

1:30 2:00

Financial Update

Brian Robinson, EVP, CFO

2:00 2:20

Q&A / Break

2:20 3:00

Turnkey Project Businesses

Submarine Power/Communications

Guenther Schoeffner, General Manager NSW - Germany

Underground EHV/HV

Marie Therese Blanot, General Manager Silec - France

Transportation Wire & Assemblies (TW&A)

Greg Ulewicz, Vice President & General Manager

Global Business

Transportation Wire & Assemblies

3:30 4:15

Americas

Greg Lampert, EVP, President & CEO, The Americas

4:15 4:30

Concluding Remarks

Gregory Kenny, President & CEO

4:30 5:00

Q&A

5:00 6:00

Reception

3:00 3:30

Deep Seasoned Management Team

Global Operating Committee

Gregory B.
Kenny

Peter
Campbell

Greg
Lampert

Sonya
Reed

President &
Chief Executive Officer
General Cable

Executive Vice President,

President & CEO
Asia Pacific

Executive Vice President,

President & CEO
The Americas

Senior Vice President,

Chief Human
Resources Officer

Brian
Robinson

Emmanuel
Sabonnadiere

Bob
Siverd

Executive Vice President,

Chief Financial Officer

Executive Vice President,

President & CEO
Europe & Mediterranean

Executive Vice President,

General Counsel &
Corporate Secretary

Leader in $170 Billion(1) Global Wire and

Cable Industry With Strong Growth Potential

Diversified and balanced portfolio serving nearly every wire and cable application
Well positioned in growth markets
Culture of continuous improvement driving productivity, asset optimization and
costs out of the business
Balanced capital deployment committed to delivering shareholder value
Solid financial position and balance sheet
Deep, seasoned management team

Source: CRU January 2014

Diversified Revenue Stream

Engaged in the development, design, manufacture, marketing and distribution of copper,
aluminum and fiber optic wire and cable products for the electric utility, electrical infrastructure
(including specialty), construction and communications markets

Revenue by Region

Revenue by Business Unit

Rod Mill Products 5%
Communications
11%

Sub-Saharan Africa
3%

Asia
Pacific
10%

Electric Utility
34%
Construction
24%

Europe &
Mediterranean
25%

Americas
62%

Electrical Infrastructure
26%

Global Footprint
Electric Utility | Electrical Infrastructure | Construction | Communications | Rod

ASIA PACIFIC
REGION
10% of General Cables Sales
1,840 Associates
10 Manufacturing Locations

AMERICAS
REGION

PRODUCT MIX
4% Electrical Infrastructure
53% Electric Utility
34% Construction
5% Communications
4% Rod

62% of General Cables Sales

7,990 Associates
35 Manufacturing Locations
PRODUCT MIX
30% Electrical Infrastructure
26% Electric Utility
23% Construction
15% Communications
6% Rod

EUROPE &
MEDITERRANEAN
REGION
25% of General Cables Sales
4,250 Associates
9 Manufacturing Locations
PRODUCT MIX
22% Electrical Infrastructure
47% Electric Utility
24% Construction
7% Communications

57

MANUFACTURING
LOCATIONS
IN 26 COUNTRIES

09

TECHNOLOGY
CENTERS

13

SUB-SAHARAN AFRICA
REGION
3% of General Cables Sales
525 Associates
3 Manufacturing Locations
PRODUCT MIX
38% Electrical Infrastructure
13% Electric Utility
7% Construction
42% Rod

ALUMINUM
& COPPER
ROD MILLS

rd

LARGEST GLOBAL
WIRE & CABLE
MANUFACTURER

SALES REPRESENTATION
& DISTRIBUTION
WORLDWIDE

Clear Strategic Focus

A comprehensive approach to driving profitable, long-term performance and
delivering value

Capture Global
Opportunities
Faster Growing Developing
Regions
Population growth,
greater demand for
energy resources
Energy infrastructure
Power Generation
Energy Transmission
and Distribution
Construction
Demand for Greater
Communication Bandwidth
and Global Connectivity

Productivity
Improvement

Balanced Capital
Deployment

Execution of Greenfield
turnaround plans

Return of capital to
shareholders

Further asset optimization in

developed markets

Maintain stable capital

structure and debt profile with
the liquidity to support growth
and movements in working
capital

Pursuit of excellence through

continuous improvement
Safety, Quality, Service
Accelerated initiatives and
sharing of best practices
through Global Councils and
newly created global
roles/positions

Capital spending below

depreciation
Highly disciplined/
selective M&A

Product Innovation

Global Opportunities

Energy Usage Grows as

Countries Develop
Primary Energy Demand in Select Regions and Share of Growth(1)

Geographic growth strategy emphasizes investment in developing regions with a focus on

energy infrastructure

Source: WEO Outlook 2013

10

Energy Infrastructure
Annualized
Investment(1)

Power Sector Cumulative Investment

by Type from 2013 - 2035(1)

Annual Power Sector

investment $740
billion/year
New generating capacity
represents approx. 58%
or $430 billion/year
Electricity grid development
and reinforcement
represents the balance;
approx. 42% or $310
billion/year

General Cable offers premium products and solutions servicing the entire Power Sector;
approximately 50% of our portfolio is levered toward energy-related investment

Source: WEO Outlook 2013

11

Transmission & Distribution

Cabling and Systems
Existing & Additional Kilometers of T&D lines (1)

Power distribution networks

represent 90% of existing
networks globally
Distribution also represents
roughly 85% of growth during
the projection period
The aging of mature grids in
North America and Europe
remain an ongoing opportunity
with estimates suggesting 5060% will need to be reinforced
or replaced

General Cable has the full range of products and services to meet the needs of utilities
around the world

Source: WEO Outlook 2013

12

Power Generation
Fossil Fuels, Renewables, Nuclear
Installed capacity by source(1)

Fossil Fuels
Oil, Gas, and Coal are expected to
remain the most important energy
source at approximately 60% as a
percentage of global energy usage
Renewables
Estimated to increase rapidly over
the projection period growing more
than 2.5x and accounting for about
80% of the cumulative investment
or approximately $6.5 trillion
resulting in an estimated $260
billion investment for the
integration of new T&D lines
Nuclear
437 reactors in operation today
generate 394 GW projections
estimate nuclear generation
increases to 580 GW

General Cable is a leading global provider of specialized cables for the power
generation markets

Source: WEO Outlook 2013

13

Construction activity
Construction spending increases in 2014 (1)

IHS Construction Outlook

2013 2018 CAGR (1)

World
N. Am
Asia Pac
ME & A
E. Eur
W. Eur
S. & C. Am

Construction activity is an important driver to approximately 40% of the Companys product

portfolio including service cable, building wire, electric utility distribution cable, and numerous
electrical infrastructure and communications products
1

Resi Non-Resi
4.0%
4.5%
5.7%
5.1%
5.3%
5.7%
3.2%
4.1%
2.4%
2.8%
1.3%
2.2%
3.1%
3.9%

Source: IHS Global Construction Outlook 2014

14

Demand for Greater Communication

Bandwidth and Global Connectivity
Segment Description

Global Communications Market

Short Reach Data (<200 meters per connection)

Fiber and copper based links for short reach

connections within a premise or building

15%
29%

Long Reach Data and Telephony (>1000 meters)

Fiber and copper based links used for applications

such as Fiber to the Home, Copper Central Office,
and Long Distance Telephony and Data Connections

Broadcast and Electronics Cables (Up To 1000 meters)

Mainly copper based connections used in applications

such as Alarm and Security, Equipment and Devices,
and Low Voltage Signaling

56%
Short Reach Data
Long Reach Data and Telephony
Broadcast and Electronics Cable

General Cable participates in all major segments of the Global Communications

Infrastructure Market

15

Business Cycle Poised

to Accelerate
$500

$4,000
$250

$2,000

$-

Adjusted EBIT (in millions)

Revenue (in millions)

$6,000

$FY02

FY03

FY04

FY05

FY06

FY07

FY08

FY09

FY10

FY11

Through the consistent execution of our growth strategy, trough to trough operating results
were more than 3x better in 2009 despite the challenging global operating environment that
has been far different than the normal business cycle

FY12

FY13

16

Positioned to Capture
Opportunities

Businesses Aligned With

End Market Growth Drivers
Electric Utility

Electricity consumption
Industrialization of emerging economies, urbanization
Legislation, mandated quality and reliability, investment incentives for utilities
Infrastructure expansion and replacement
Electricity grid integration
Incorporation of renewable energy, particularly faster growing offshore wind and solar
Construction activity

Electrical
Infrastructure

Industrialization of emerging economies

Global industrial production
Terrestrial and offshore oil and gas, development of renewable energy sources
Mining, transit, marine

Construction

Non-residential construction
Population growth
Housing starts

Communications

Greater bandwidth requirements as result of growing number of internet users

Non-residential construction
Infrastructure spending on upgrade and expansion in developing countries
Wireless alternatives

Overall, an important underlying influence on these end markets are consistent and healthy
GDP rates and construction cycles

18

Capturing Global Opportunities

Global Sales One Company
Regional Alignment
Local Relationships
Customer Driven
Organization

Breath of Product
Quality
Service
Leverage Supply Chain

Dedicated to the pursuit of excellence and exceeding customer expectations

19

Product Innovation

Process &
Tools

Material
Technology

Resources

Globally approximately 12% of products sold today have been launched or refreshed over
the past three years

New
Products

20

Productivity Improvement

Productivity Improvements
Operational Focus

Enhancing ROCE through productivity improvements and

asset optimization
Evaluating consolidation of production lines and/or facilities particularly
in developed markets
Announced permanent closure of two electric utility plants in North America

Turnaround initiatives of greenfield investments

India, Mexico, Peru, South Africa and product line expansion in Brazil
Key Performance milestones to be monitored and evaluated

Submarine turnkey project business performance improving under new

leadership in 2013
Effectively partnering in offshore wind projects leveraging joint assets/resources
Renewed focus on subsea communications cable and systems market

22

Execution of Greenfield turnaround plans and

further asset optimization in developed markets
Executing on actionable plans in the following areas

Supply Chain

Manufacturing

Sales

Sourcing

Acceleration of
Lean initiatives

Commercial
Realignment

Logistics

Cell Design &

Refurbishment

Standardization

Comprehensive approach driving performance improvement in emerging and

developed markets

23

Lean Toolset Driving Safety,

Quality, Service
Lean Toolset
A passionate belief that any work
process can be simplified
A continuous improvement methodology
that promotes engagement from all
using a common toolset
An approach that surfaces problems
(opportunities) as a means to
optimizing value
Continuous drive to identify and
eliminate waste

Outcomes
Safety record (ORIR) < 1 vs.
All industry average of 5.2

Pursuit of perfect product quality

Inventory reduction > $100M
(over time)
Service improvement
Entitlement capacity gained
without capital outlay
Controllable cost reductions
keep us competitive

After offsetting economic headwinds, the Company targets $10 million in Lean cost
savings annually

24

Reinforcing our Global ONE Company Culture

Accelerating the sharing of best practices globally

Launched Wired As OneSM: Strength at

the Core
Refreshed Environmental, Health &
Safety Policy
Enhanced Talent Recruitment and
Development Systems
Global Councils and newly created global
roles are reinforcing our Global One
Company Culture while facilitating the
rapid sharing of best practices focused
on improving daily execution and working
capital management

Safety
Corporate
Social
Responsibility

Technology

Global Councils
Sourcing

Construction

Communications
Products

Our Operating Philosophy: Act with the speed and agility of a small company but with
the strength and the power of a large company

Manufacturing

25

Balanced Capital Deployment

Solid Financial Position And

Balanced Capital Deployment
Return to Shareholders

Return of capital to shareholders

dividends and share repurchase program

Maintain capital structure

Maintain stable capital structure and debt

profile with the liquidity to support growth
and movements in working capital

Capital Investment

Acquisitions

Capital spending below depreciation

Highly disciplined/selective M&A

High commitment to returning capital to shareholders; launched a comprehensive balanced

capital deployment program in 2013 including a quarterly dividend and buyback; expects to
return $95 million to shareholders over the last 15 months

27

Highly Disciplined and

Successful M&A
In 1998 General Cable = $1.1 billion manufacturer of communications cables, building
wire, electrical cords, cordsets and harnesses with 2% of its revenue generated outside
of the U.S. and Canada

Transformed into a global manufacturer of electric utility, electrical infrastructure,

construction and communications cables - over $6.4 billion in annual revenue with
62% generated in Americas
2012 acquisitions of Alcan Cable North America, Alcan Cable China, Prestolite Wire,
Procables (Colombia) and Delphia - performed above investment case
Industry is under stress and there are many sellers in the market today
but we are employing a highly disciplined approach to our M&A program
28

Concluding Remarks

Clear Strategic Focus

Diversified and Balanced Portfolio
Strong Position in Growth Markets
Productivity Improvements Being Implemented
Commitment to Delivering Shareholder Value
Deep, Seasoned Management Team

29

Appendix

Electric Utility
$2.2 billion or 34% of 2013 total sales
BARE OVERHEAD CONDUCTORS LOW-VOLTAGE POWER CABLES MEDIUM-VOLTAGE POWER CABLES
UNDERGROUND HIGH- & EXTRA-HIGH-VOLTAGE CABLES & SOLUTIONS SUBMARINE TRANSMISSION & DISTRIBUTION

Our cables carry electricity across the worldthrough the air, underground and under
the sea. Increasing demand for energy is accelerating investment in exploration, extraction,
power generation, transmission and distributionwhether based on coal, natural gas, oil,
nuclear, wind, solar or water
31

Electric Infrastructure
$1.7 billion or 26% of 2013 total sales
INDUSTRIAL PORTABLE CORD PRODUCTS INDUSTRIAL CABLES RENEWABLE CABLES
SPECIALTY-AUTOMOTIVE HARNESSES & ASSEMBLIES MILITARY MINING NUCLEAR
OIL AND GAS TRANSIT/LOCOMOTIVE/RAILWAY ELECTRONICS

Our cables provide power to keep production flowing, assembly lines moving
and equipment and engines running. We offer the broadest line of cables in the industry
including high-performance industrial instrumentation, power and control cables serving
the full spectrum of requirements for the Industrial Distribution marketplace, power
generation, refining and petrochemical, factory automation, oil rigs, cars, trains, public
venues and countless special applications such as military, nuclear, marine and mining

32

Construction
$1.6 billion or 24% of 2013 total sales
ALUMINUM ALLOY FEEDER & ARMORED CABLES COPPER FEEDER CABLES & BUILDING WIRE

Our cables provide critical power from the ground up for residential and nonresidential projects alike. Whether its an office building, a hospital, a school, a factory, an
entertainment venue, a housing development, a multi-family unit or an entire citywhatever the
project, we have the products that provide the necessary power
33

Communications
$0.7 billion or 11% of 2013 total sales
BROADCAST, PROFESSIONAL & COMMERCIAL A/V FIBER OPTIC PREMISE
TELECOMMUNICATIONS TELECOM MINI-SUB CABLES

Our cables keep information flowing around the world. We meet the high-speed highbandwidth needs of global communications networks including fiber optic submarine
communications cables, copper, fiber aerial and underground products, enterprise cables,
sophisticated system solutions, professional broadcast and audio/visual systems solutions
34

Deep Seasoned Management Team

Global Operating Committee

Greg Kenny 1975 Foreign Service Officer, US Dept. of State, Washington, D.C. and
South America. 32 years with General Cable. Greg serves on the Boards of Cardinal
Health, Ingredion (Corn Products), United Way Executive Committee, Federal Reserve
Bank of Cleveland, Cincinnati Branch.

Brian Robinson Joined Deloitte & Touche, LLP in1991 working in U.S and London for
global clients. CPA certification in 1993. Brian has 15 years of progressive leadership
within General Cable finance, accounting and treasury functions.

Greg Lampert Chemical engineering degree with early experience with Dow Chemical
and Cintas Corporation. Joined General Cable in 1998. Greg serves on the Board of Xtek.

Peter Campbell Chemical Engineer who joined General Cable in 2010. Two decades of
leadership experience in Asia as a senior executive with BP Chemical and Fosroc
International. Peter is fluent in English and French.

Emmanuel Sabonnadiere A PhD physicist with extensive experience in the electrical

industry. Emmanuel joined General Cable 6 years ago directly building upon his work at
Schneider Electric and Alstom Transformers. He speaks English and French.

Sonya Reed 14 years experience with Zurich Financial Services, a global insurance
company. Human Resource experience in U.S., Europe and Latin America. Joined
General Cable as SVP Human Resources in 2011. Sonya is fluent in English and Spanish.
35

General Cable Corporation