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MSC INDUSTRIAL SUPPLY CO. INVESTOR PRESENTATION FISCAL 2026
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2investor.mscdirect.com CAUTIONARY NOTE REGARDING FORWARD-LOOKING STATEMENTS Statements in this presentation may constitute “forward-looking statements” under the Private Securities Litigation Reform Act of 1995. All statements, other than statements of present or historical fact, that address activities, events or developments that MSC expects, believes or anticipates will or may occur in the future, including statements about results of operations and financial condition, expected future results, expected benefits from our investment and strategic plans and other initiatives, and expected future growth and profitability, are forward-looking statements. The words “will,” “may,” “believes,” “anticipates,” “thinks,” “expects,” “estimates,” “plans,” “intends” and similar expressions are intended to identify forward-looking statements. Forward-looking statements involve risks and uncertainties that could cause actual results to differ materially from those anticipated by these forward-looking statements. In addition, statements which refer to expectations, projections or other characterizations of future events or circumstances, statements involving a discussion of strategy, plans or intentions, statements about management’s assumptions, projections or predictions of future events or market outlook and any other statement other than a statement of present or historical fact are forward-looking statements. The inclusion of any statement in this presentation does not constitute an admission by MSC or any other person that the events or circumstances described in such statement are material. In addition, new risks may emerge from time to time and it is not possible for management to predict such risks or to assess the impact of such risks on our business or financial results. Accordingly, future results may differ materially from historical results or from those discussed or implied by these forward-looking statements. Given these risks and uncertainties, the reader should not place undue reliance on these forward-looking statements. These risks and uncertainties include, but are not limited to, the following: general economic conditions in the markets in which we operate; changing customer and product mixes; volatility in commodity, energy and labor prices, and the impact of prolonged periods of low, high or rapid inflation; competition, including the adoption by competitors of aggressive pricing strategies or sales methods; industry consolidation and other changes in the industrial distribution sector; the applicability of laws and regulations relating to our status as a supplier to the U.S. government and public sector; the credit risk of our customers; our ability to accurately forecast customer demands; interruptions in our ability to make deliveries to customers; supply chain disruptions; our ability to attract and retain sales and customer service personnel; the risk of loss of key suppliers or contractors or key brands; changes to trade policies or trade relationships, including tariff policies; risks associated with opening or expanding our customer fulfillment centers; our ability to estimate the cost of healthcare claims incurred under our self-insurance plan; interruption of operations at our headquarters or customer fulfillment centers; products liability due to the nature of the products that we sell; impairments of goodwill and other indefinite-lived intangible assets; the impact of climate change; operating and financial restrictions imposed by the terms of our material debt instruments; our ability to access additional liquidity; the significant influence that our principal shareholders will continue to have over our decisions; our ability to execute on our E-commerce strategies and maintain our digital platforms; costs associated with maintaining our information technology (“IT”) systems and complying with data privacy laws; disruptions or breaches of our IT systems or violations of data privacy laws, including such disruptions or breaches in connection with our E-commerce channels; risks related to online payment methods and other online transactions; the retention of key management personnel; litigation risk due to the nature of our business; failure to comply with environmental, health, and safety laws and regulations; and our ability to comply with, and the costs associated with, social and environmental responsibility policies. Additional information concerning these and other risks is described under “Risk Factors” and “Management’s Discussion and Analysis of Financial Condition and Results of Operations” in our Annual and Quarterly Reports on Forms 10-K and 10-Q, respectively, and in the other reports and documents that we file with the United States Securities and Exchange Commission. We expressly disclaim any obligation to update any of these forward- looking statements, except to the extent required by applicable law.
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3investor.mscdirect.com Founded in 1941 and listed on NYSE (MSM) since 1995 Leader in highly fragmented industrial distribution market >7,000 associates 37 warehouses, 9 regional inventory centers, 5 distribution centers and 5 manufacturing locations Broad offering: 2.5 million SKUs from 3,000+ suppliers Value-add solutions: metalworking expertise, supply chain management, e-commerce, productivity improvement and training MSC INDUSTRIAL DIRECT: COMPANY OVERVIEW 1Year Ended August 30, 2025 220-Year CAGR calculated through August 30, 2025 3Over the last three fiscal years ended August 30, 2025 *See appendix for non-GAAP reconciliations 8.4%* Adjusted Operating Margin1 4% 20-Year EPS CAGR2 $3.8B Total Revenues1 6% 20-Yr Sales CAGR2 $1,440M+ Operating Cash Flows (over the last 3 years) >$875M Returned to Shareholders3 (over the last 3 years) ✓ ✓ ✓ ✓ ✓ ✓ MSC is a leading value-add industrial distributor offering products, services and solutions that enable its customers to achieve higher levels of growth, productivity, and profitability
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4investor.mscdirect.com KEY MSC INVESTMENT HIGHLIGHTS Leader in the highly fragmented North American industrial distribution market with significant opportunities for organic and acquisitive growth Value-added solutions approach focuses on addressing customer total cost of ownership with highly technical expertise and broad portfolio of products and services The next chapter of Mission Critical is expected to generate results across the business over the cycle and has begun resulting in core customer growth Industry-leading customer satisfaction ratings driven by customer-centric culture and obsession with delivering solutions that enable customer success Growth and returns above original Mission Critical targets driven by successful execution 1 2 3 4 5 Eliminated dual class share structure in October 2023; completed repurchase of related share dilution 6
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5investor.mscdirect.com ~$215B of the MRO market in N. America directly addressable by MSC2 Highly fragmented with ~145K distributors in the US1 ✓ ✓ The North American industrial distribution market is very large and highly fragmented both across the addressable market and the customer landscape HIGHLY FRAGMENTED INDUSTRIAL DISTRIBUTION MARKET 1MDM Analytics (figures are approximate) 2Calculation performed by MSC (figures are approximate) Customer Count 1% 2% 11% 86% Revenue Potential 39% 26% 20% 16% Simple Transactions Complex Solutions Company Size (# employees) Medium (50-249) Small (10-49) Very Small (1-9) Large (>250) Industrial Distribution Customer LandscapeTotal Addressable Market MSC ~$215B IN SALES The top 50 distributors represent ~33% of the market
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6investor.mscdirect.com ~$215B of the MRO market in N. America directly addressable by MSC1,2 Addressable market is comprised of approximately ~19.5M total potential customers2 MSC’s target manufacturing market makes up about 50% of total addressable marketplace spend, making brand awareness and equity critical to attract and maintain customers MSC’S POSITION IN THE MARKET 1MDM Analytics (figures are approximate) 2Calculation performed by MSC (figures are approximate for N. America) ✓ ✓ Total Addressable Market MSC ~$215B IN SALES1,2 The top 50 distributors represent ~33% of the market ~$4.0BMRO VMI MSC Fiscal Year 2023 Sales Within the approximately ~19.5M total potential customers, MSC can serve the ~750k metalworking customers 2 These ~750k customers make up a large amount of the overall spend in manufacturing 2 ~205K are larger customers, while ~545K are smaller customers 2 ✓ ✓ ✓
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7investor.mscdirect.com MSC Solutions Approach (Total Cost of Ownership Focused) Industry Model (Product Price Driven) MSC’S DIFFERENTIATOR IN THE MARKET: BUILT TO MAKE YOU BETTER Inventory and Operational Costs Procurement Costs Product Price Inventory and Operational Costs Procurement Costs Product Price Customer Value Drivers Growth Profitability Productivity MSC’s value-added solutions approach focuses on addressing customer total cost of ownership with highly technical expertise across a broad portfolio of products and services
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8investor.mscdirect.com Obsession with delivering personalized and effortless customer experiences that enable success, measured directly from our customers MSC CUSTOMER CARE: ENSURING CUSTOMER SATISFACTION 1ForeSee– Web Browse Measurement Feb. 28, 2021 High-Touch Customer Care Technical and Sourcing Experts Consistent Customer Service Creative Problem Solving Focus on Customer Satisfaction Build Trust and Loyalty Customer Care Center Satisfaction LevelsCustomer Care Delivery Poor Excellent MSC Mean 4.4 Poor Excellent Other Contact Center Average Mean 4.0 CSAT Scale (1-5) 54321 ExcellentVery GoodGoodFairPoor
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9investor.mscdirect.com MSC SolutionContinuous ImprovementSKU Consolidation 32 Oz. All Purpose Cleaner and Degreaser 22 Oz. Premium Degreaser 22 Oz. Multi-Purpose CleanerProduct $0.20$1.32$0.277Cost (per unit) 46,72879245,936Usage (units) $9,345.60 $1,048.32$12,740.88Total Cost $4,443.60Annual Cost Savings MSC SOLUTIONS: TURNING EXPERTISE AND DATA INTO INFORMATION AND SAVINGS Consolidate to a single Item and standardize in all locations. New Opportunity Capture (Ap Op )MSC MillMax® (Ap Op )Technical Solutions Medical DevicesAerospace & DefenseIndustry IscarKennametalManufacturer TurningSolid MillingApplication Improve Tool LifeReduce Cycle TimeObjective 32%50%Cycle Time Reduction 1,150 hours625 hoursCapacity Gained $179,998.50$78,125Annual Cost Savings MSC provides continuous improvement solutions for customers by combining technical expertise and data analytics, driving significant and documented customer cost savings
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10investor.mscdirect.com MSC CUSTOMER VALUE: TRUE STORIES. TRUE RESULTS. $2.7 million ▼ Annual Cost Savings Paper Manufacturing Large paper manufacturer realizes savings through MSC’s broad across multiple US locations Documentation program delivered ~$500 million in documented cost savings presented to: MSC customers in Fiscal 2024 > $370k ▲ Total Profit Improvement Aerospace Defense Contractor Reduced cycle time from 7 minutes to 1 minute, creating improved profit and increased capacity of over 1,000 hours annually > $310k ▲ Profit Improvement Contract Machine Shop A simple, 15-minute MSC MillMax® impact test in a milling operation improved profits while reducing cycle time from 98 seconds to 35 seconds $2.9 million ▼ Productivity Savings Global Truck Manufacturer One of North America’s largest producers of heavy-duty trucks, engines and transmissions annual savings across all MSC solutions $1.5 million ▼ Savings in Milling Process Firearms Manufacturer Reduced milling cycle time from 8 minutes to less than 3 minutes, saving time and enabling greater throughput on existing machine base
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11investor.mscdirect.com ESG HIGHLIGHTS AND LONG-TERM SUSTAINABILITY GOALS 15% Reduction in Scope 1 & 2 GHG emissions by 2030 Establishing long-term sustainability goals Military Recognition Military Partnerships 119,651 Tools re-ground 8,400 lbs Carbide recycled
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12investor.mscdirect.com Maintaining Momentum • Win in Metalworking • Expand Share of Wallet Across Existing Customer Base • Maximize Impact of Large Account Programs • Drive Innovative Solutions • Further Penetrate Attractive End Markets New Elements to Growth • Reenergize Core Customers Through… • Improved E-commerce Experience • Enhance Pricing Model • Increased Personalization • Execute on Cross-Selling Opportunities with a Focus on OEM Fasteners Optimizing Cost to Serve • Improve Network Performance and Productivity • Portfolio Optimization and Product Line Review Execution • Streamline Order-to-Cash and Procure-to-Pay Value Streams • Strategic Working Capital Management THE NEXT CHAPTER OF MISSION CRITICAL IS EXPECTED TO GENERATE FAVORABLE RESULTS ACROSS THE BUSINESS OVER THE CYCLE Performance Metrics Over the Cycle At Least 400 bps of Market Outgrowth Incremental Margins* of ~20% Adjusted Operating Margin* in the Mid-Teens Greater Than 20% ROIC* Extensive Digital Roadmap * Represents a non-GAAP financial measure. See appendix for non-GAAP reconciliations. Driving Achievable Long-Term Targets
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13investor.mscdirect.com PERFORMANCE AGAINST INDUSTRIAL PRODUCTION IMPROVING AS MOMENTUM BUILDS FROM GROWTH INITIATIVES • Data as of December 23, 2025; • Source: Federal Reserve 1Q’26Industry Group 2.4%Machinery & Equipment 3.8%Primary Metals 3.3%Fabricated Metals (2.6)%Automotive 29.3%Aerospace IP Index Performance YoY of MSC’s Top 5 Industries -20% -15% -10% -5% 0% 5% 10% 15% 20% 2015 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025 MSC Total Growth (3 Mo Avg) IP Growth (3 Mo Avg) MSC Total Organic Sales Growth 3-Month Average - IP Index
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14investor.mscdirect.com TRACK RECORD OF GROWTH AND RESILIENCE Billions 0% 10% 20% 30% 40% 50% $0.0 $0.5 $1.0 $1.5 $2.0 $2.5 $3.0 $3.5 $4.0 $4.5 2006 2008 2010 2012 2014 2016 2018 2020 2022 2024 2025 Revenue Operating Income Opex % of Revenue Operating Margin Gross Margin $0 $100 $200 $300 $400 $500 $600 $700 $800 2013 2014 2015 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025 Operating Cash Flow CapEx Millions
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15investor.mscdirect.com CLEAR CAPITAL ALLOCATION PRIORITIES Dividends and Share Repurchases 23% 7% 23% 47% ~$1.5B CAPITAL DEPLOYED (FY 2022 – FY 2025) Growth Spend Ordinary Dividends Long-Term Priorities Significant capital allocation optionality after deprioritizing special dividends; potential uses include organic growth investments, strategic M&A, debt paydown, or further deployment to shareholders Strategic Optionality Ongoing investment to strengthen operations, digital capabilities, and service offeringsCapex Bolt-on acquisitions with a focus on underserved regions, adjacent product categories, technologies, and high-growth end markets M&A Targeting to offset annual stock-based compensation dilution at a minimum Share Repurchases Targeting modest annual increases in the ordinary dividendOrdinary Dividend Disciplined focus on Return on Invested Capital* and value creation * Represents a non-GAAP financial measure. See appendix for non-GAAP reconciliations
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APPENDIX
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17investor.mscdirect.com RECONCILIATIONS Non-GAAP Financial Measures To supplement MSC’s unaudited selected financial data presented consistent with accounting principles generally accepted in the United States (“GAAP”), the Company discloses certain non-GAAP financial measures, including non-GAAP operating expenses, non-GAAP income from operations, non-GAAP operating margin, non-GAAP incremental operating margin, non-GAAP provision for income taxes, non-GAAP net income and non-GAAP diluted earnings per share, that exclude items such as restructuring and other costs, loss on sale of property and share reclassification litigation costs, and tax effects, which is a measure calculated using free cash flow, which is a non-GAAP measure. These non-GAAP financial measures are not presented in accordance with GAAP or an alternative for GAAP financial measures and may be different from similar non-GAAP financial measures used by other companies. The presentation of this additional information is not meant to be considered in isolation or as a substitute for the most directly comparable GAAP financial measure and should only be used to evaluate MSC’s results of operations in conjunction with the corresponding GAAP financial measure. This presentation also includes certain forward-looking information that is not presented in accordance with GAAP, including adjusted operating margin, adjusted incremental operating margin and return on invested capital. The Company believes that a quantitative reconciliation of such forward-looking information to the most directly comparable financial measure calculated and presented in accordance with GAAP cannot be made available without unreasonable efforts because a reconciliation of these non-GAAP financial measures would require the Company to predict the timing and likelihood of potential future events such as restructurings, M&A activity, and other infrequent or unusual gains and losses. Neither the timing or likelihood of these events, nor their probable significance, can be quantified with a reasonable degree of accuracy. Accordingly, a reconciliation of such forward-looking information to the most directly comparable GAAP financial measure is not provided. Results Excluding Restructuring and Other Costs, Loss on Sale of Property, Share Reclassification Litigation Costs In calculating certain non-GAAP financial measures, we exclude items such as restructuring and other costs, loss on sale of property, share reclassification litigation costs, and tax effects. Management makes these adjustments to facilitate a review of the Company’s operating performance on a comparable basis between periods, for comparing with forecasts and strategic plans, for identifying and analyzing trends in the Company’s underlying business and for benchmarking performance externally against competitors. We believe that investors benefit from seeing results from the perspective of management in addition to seeing results presented in accordance with GAAP for the same reasons and purposes for which management uses such non-GAAP financial measures. Incremental Operating Margin and Adjusted Incremental Operating Margin The Company defines Incremental Operating Margin as the change in year-over-year Income from Operations as a percentage of the change in year-over-year Net Sales and Adjusted Incremental Operating Margin as Incremental Operating Margin adjusted to exclude restructuring and other costs and share reclassification litigation costs by excluding such items from Income from Operations. The Company’s management believes that Incremental Operating Margin is useful because it shows the direction that operating profit margins are moving as a result of changes in net sales between periods, and that, by excluding the aforementioned items, Adjusted Incremental Operating Margin helps to more clearly show, on a comparable basis between periods, trends in the Company’s underlying business and results of operations. The Company believes that investors benefit from seeing results from the perspective of management in addition to seeing results presented in accordance with GAAP for the same reasons and purposes for which management uses such non-GAAP financial measures. Return on Invested Capital (“ROIC”) ROIC is calculated using a non-GAAP financial measure. We calculate ROIC by dividing non-GAAP net operating profit after tax (“NOPAT”) by average invested capital, a GAAP measure. NOPAT is defined as tax effected income from operations. Average invested capital is defined as net debt plus shareholder’s equity using a trailing 13-month average. We believe that ROIC is useful to investors as a measure of performance and of the effectiveness of the use of capital in our operations. We use ROIC as one measure to monitor and evaluate operating performance. This method of determining non-GAAP ROIC may differ from other companies' methods and therefore may not be comparable to those used by other companies. ROIC should be considered in addition to, rather than as a substitute for, other information provided in accordance with GAAP. The financial measure calculated under GAAP which is most directly comparable to ROIC is considered to be the ratio of Net income to Average invested capital. See below for the calculation of ROIC and the reconciliation to the comparable GAAP measure.
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18investor.mscdirect.com RECONCILIATIONS
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