Needham 11 th Annual Growth Conference January 6, 2009 NASDAQ: BBOX.

Needham 11th Annual Growth Conference

January 6, 2009

NASDAQ: BBOX

Company Confidential

2

Black Box Network Services

• Forward-Looking Statements - Any forward-looking statements contained in this presentation are made pursuant to the safe harbor provisions of the Private Securities Litigation Reform Act of 1995 and speak only as of the date of this presentation. You can identify these forward-looking statements by the fact that they use words such as "should," "anticipate," "estimate," "approximate," "expect," "target," "may," "will," "project," "intend," "plan," "believe" and other words of similar meaning and expression in connection with any discussion of future operating or financial performance. Forward-looking statements are inherently subject to a variety of risks and uncertainties that could cause actual results to differ materially from those projected. Risk factors are included in our Annual Report on Form 10-K for the fiscal year ended March 31, 2008 and our other filings with the Securities and Exchange Commission (the “SEC”). We can give no assurance that any goal, plan or target set forth in forward-looking statements can be achieved and readers are cautioned not to place undue reliance on such statements, which speak only as of the date made. We undertake no obligation to release publicly any revisions to forward-looking statements as a result of future events or developments.

• GAAP Reconciliation -This presentation also includes, as a supplement to United States Generally Accepted Accounting Principles (“GAAP”), certain non-GAAP financial measures. These non-GAAP financial measures exclude the impact of certain items and, therefore, have not been calculated in accordance with GAAP. Pursuant to the requirements of the SEC’s Regulation G, we provide in our SEC filings additional information regarding these non-GAAP financial measures, including a reconciliation of them to their most comparable GAAP financial measures, management’s explanations regarding the use and usefulness of non-GAAP financial measures and the limitations associated with the use of non-GAAP financial measures. The Company's non-GAAP financial measures are not meant to be considered in isolation or as a substitute for comparable GAAP financial measurements, and should be read only in conjunction with the Company's consolidated financial statements prepared in accordance with GAAP.

Terry Blakemore

President and CEO


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Black Box Network Services

» The largest independent provider of major communications and infrastructure technologies

HotlineProducts

DataInfrastructure

VoiceCommunications


5

A Global Company

191 offices in 141 countries

» Serving more than 70% of the Fortune 100


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Key Objectives

• Deliver the highest quality technical support services and products to our clients around the world.

• Achieve operating margin and cash flow targets.

• Supplement organic growth with high quality M&A activities.


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Capabilities

$1 billion annual revenue

VoiceCommunications

58%

DataInfrastructure

19%

HotlineProducts

23%

Source: Company 2008 Form 10-K.Source: Company 2008 Form 10-K.


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Capabilities

Remote Monitoring Network SecurityVoice over IP Unified CommunicationsTraditional Telephony

Voice Communications Solutions: 58% of revenue


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Strategic Advantage: Our Communications Portfolio & Partners

• 25-year relationship• 2M ports on maintenance • 289 certifications• Coverage: U.S., Canada,

U.S. Federal Government

• 25-year relationship• 2M ports on maintenance • 289 certifications• Coverage: U.S., Canada,

U.S. Federal Government

• Relationships around the globe

• 325,000 ports on maintenance

• 133 certifications• Coverage: U.S.

• Relationships around the globe

• 325,000 ports on maintenance

• 133 certifications• Coverage: U.S.

No. 1 U.S. channel partner• 25-year relationship• 1M+ ports on maintenance• Over 1,000 certifications• Coverage: U.S.

No. 1 U.S. channel partner• 25-year relationship• 1M+ ports on maintenance• Over 1,000 certifications• Coverage: U.S.

• Leader in Pure IP Telephony• Added to portfolio in 2007• 11,500 ports on maintenance• Coverage: U.S., Canada, UK

and Australia

• Leader in Pure IP Telephony• Added to portfolio in 2007• 11,500 ports on maintenance• Coverage: U.S., Canada, UK

and Australia

• No. 1 channel partner in North America

• 700,000+ ports on maintenance

• 167 certifications• Coverage: U.S., Canada

• No. 1 channel partner in North America

• 700,000+ ports on maintenance

• 167 certifications• Coverage: U.S., Canada


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Capabilities

Networking Data CentersData NetworkingStructured Cabling Digital Signage, CATV & Video

Data Infrastructure Services: 19% of revenue


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Capabilities

Custom Solutions

Hotline Products: 23% of revenue

Cables Cabinets & RacksKVM Routers, Switches


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Start-to-Finish Services

Entrance Facility

Equipment Room

Telecommunications Room

Backbone

Desktop

Horizontal Cabling

» From the cable entry point to the desktop

» Inside-the-building experts


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Infrastructure Services

Worldwide market size

Structured Cabling Services $8B

Telephony Services $12B

Total Infrastructure Services $20B


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A Recognized Industry Leader

Awards & Accolades

» One of North America’s Largest Solution Providers

» A Top Innovator in Business Technology

» ISO 9001:2000 Quality Assurance Global Certification

Mike McAndrew

Chief Financial Officer


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Well-Diversified Revenues

$1billion in annual revenueRevenues by

Industry

Revenues by

Size of Client

Revenues by

Geography

Large

45%

Medium

20%

Small

35%

Manufacturing

23%

Government

16%

Banking

11%

Business

Services

11%

Retail

9%

Utilities

7%

Distributors

6%

Education 6%

Other 4%

Social

Services

8%

North

America 82%

Europe

14%

Other 4%

Source: Company 2008 Annual Report.Source: Company 2008 Annual Report.


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Solid Sustainable Margins

$535

$721

$1,016 $1,017

6 Months$496

11.3%11.7%

10.4%10.6%

9.7%

$-

$200

$400

$600

$800

$1,000

$1,200

2005 2006 2007 2008 2009

Fiscal Year

Re

ve

nu

e (

M)

0.0%

2.0%

4.0%

6.0%

8.0%

10.0%

12.0%

14.0%

Ad

jus

ted

Op

era

tin

g In

co

me

P

erc

en

tag

e *

* See attached reconciliation* See attached reconciliationSource: Derived from Company data Source: Derived from Company data and Company’s 2006 and 2008 Forms and Company’s 2006 and 2008 Forms 10-K and Q2 2009 Form 10Q.10-K and Q2 2009 Form 10Q.


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GAAP/Non-GAAP Reconciliation

All dollar amounts in millions.

% of % of % of % of % of$ Rev. $ Rev. $ Rev. $ Rev. $ Rev.

Operating income 43$ 8.1% 55$ 7.6% 73$ 7.2% 85$ 8.3% 45$ 9.1%Non-cash reconciling items

Amortization of intangible assetson acquisitions 1 4 10 7 4 Stock-based compensation expense 5 11 9 3 1 Asset write-up depreciation expenseon acquisitions 2 2 3 2 1

Cash reconciling itemsRestructuring charges 5 5 2 9 - Historical stock option grantingpractices investigation costs - - 1 1 - 409A expenses - - - 1 1 Other 5 7 - - -

Total pre-tax reconciling items 17 3.2% 29 4.0% 25 2.5% 23 2.3% 7 1.3%

Adjusted operating income 61$ 11.3% 84$ 11.7% 98$ 9.7% 108$ 10.6% 52$ 10.4%

Annual Revenue 535$ 721$ 1,016$ 1,017$ 496$

6 MonthsFY 2009FY 2005 FY 2006 FY 2007 FY 2008

Source: Derived from Company data Source: Derived from Company data and Company’s 2006 and 2008 Forms and Company’s 2006 and 2008 Forms 10-K and Q2 2009 Form 10Q.10-K and Q2 2009 Form 10Q.


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Consistent Positive Cash Flow

$52 $52

$37

$81

6 Months $38

$-

$10

$20

$30

$40

$50

$60

$70

$80

$90

2005 2006 2007 2008 2009

Fiscal Year

Ca

sh

flo

w f

rom

Op

era

tio

ns

(M

)

Source: Derived from Company data Source: Derived from Company data and Company’s 2006 and 2008 Forms and Company’s 2006 and 2008 Forms 10-K and Q2 2009 Form 10Q.10-K and Q2 2009 Form 10Q.


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Balance Sheet Statistics

2005 2006 2007 20086 months

2009

DSO Days 57 54 53 55 50

Inventory Turns 6.4 7.3 7.2 7.1 8.0

Capex (M) $3.5 $4.1 $5.9 $3.2 $1.5

Capex as % of Rev. 0.6% 0.6% 0.6% 0.3% 0.3%

Headcount 3,371 3,295 4,581 4,313 4,445

Debt / Equity .3 to 1 .2 to 1 .4 to 1 .3 to 1 .3 to 1

Source: Derived from Company data Source: Derived from Company data and Company’s 2006 and 2008 and Company’s 2006 and 2008 Forms 10-K and Q2 2009 Form 10Q.Forms 10-K and Q2 2009 Form 10Q.


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Black Box Network Services (BBOX)

» Well-Diversified Revenues

» Solid, Sustainable Margins

» Consistent, Positive Cash Flow

NASDAQ: BBOX

Needham 11 th Annual Growth Conference January 6, 2009 NASDAQ: BBOX.

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Transcript of Needham 11 th Annual Growth Conference January 6, 2009 NASDAQ: BBOX.