ADI Global Distribution (ADIG) investor relations material

Business overview and strategic evolution

• Largest specialty distributor in commercial security, fire, life safety, and residential AV, with a strong presence in the Americas, Europe, Australia, and Malaysia.

• Business mix is 70% commercial and 30% residential; commercial is growing while residential faces macro headwinds.

• Transitioned from Honeywell to Resideo, then spun out as a standalone company in August, enabling independent capital allocation and strategic focus.

• Organic growth strategy focused on market share, new products, new customers, and GDP, leading to tripling business size since 2013.

• Commercial growth driven by technology advances and system convergence, making revenue less dependent on construction cycles.

Major initiatives and operational transformation

• Simultaneously executed Snap One acquisition, ERP overhaul, and company separation, culminating in a modern tech stack and operational independence.

• One ADI initiative aims to simplify operations, improve customer experience, and achieve $80M+ in run-rate cost savings by end of 2027.

• Plans include consolidating distribution centers from 15 to 9, reducing store locations from 140+ to 115, and streamlining ERP systems from 16 to 3 by early 2028.

• Brand rationalization from 22 to 12 exclusive brands and consolidation of e-commerce platforms to a single site.

• Focus on maximizing capital efficiency and management resources for higher returns post-transformation.

Snap One acquisition and product strategy

• Snap One was targeted to expand into residential AV and exclusive brands with higher margins.

• Residential AV market has remained soft, creating margin headwinds; strategy is to shift new product development toward light commercial applications.

• Goal is to make the product line more resilient by diversifying into commercial security, Pro AV, and Datacom.