MSC Industrial Direct : FY21 Q3 Operational Statistics

MSC Industrial Direct Co., Inc.

Operational Statistics - updated quarterly on earnings release date

The following represents historical unaudited financial and statistical information regarding MSC's operations. MSC does not undertake any obligation to update any of the information presented below to reflect future events or circumstances.

This information should not be relied on as necessarily indicative of future trends or results.

During Q2 FY19, MSC formed MSC Mexico in conjunction with an acquisition, in Q3 FY18, MSC acquired All Integrated Solutions ("AIS"), and during Q4 FY17, MSC acquired DECO Tool Supply Co. ("DECO"), the results from these acquisitions are included in all Q1 FY19 to Q3 FY21 data below, unless otherwise noted.

Quarterly Sales (in
millions)	FY 21		FY 20	FY 19
Q1	$ 771.9	$	823.6	$ 831.6
Q2	774.0		786.1	823.0
Q3	866.3		835.0	866.5
Q4			747.7	842.7

Sales Growth by Month (Avg Daily Sales Basis) *

FY2021		Sept '20		Oct '20	Nov '20		Dec '20	Jan '21		Feb '21		Mar '21	Apr '21	****May '21	*****June '21	July '21	Aug '21
Net Sales (In Millions)	$	293.7	$	254.7	$	223.5	$	259.4	$	256.6	$	258.0	$	327.6	$	273.1	$	265.6	$	316.3	$	-	$	-
# Sales Days		24		20		18		21		20		20		25		20		20		24		19		20
Growth in ADS		-8.5%		-3.9%		-5.9%		3.1%		-4.0%		-3.4%		-0.7%		16.0%		-6.4%		15.4%		0.0%		0.0%
FY2020	Sept '193		Oct '193	Nov '193		Dec '193	Jan '203		Feb '20		Mar '20	Apr '20		May '20	June '20	July '20	Aug '20
Net Sales (In Millions)	$	321.0	$	265.0	$	237.6	$	251.5	$	267.4	$	267.2	$	329.9	$	235.5	$	269.6	$	274.2	$	233.3	$ 240.3
# Sales Days		24		20		18		21		20		20		25		20		19		24		20		20
Growth in ADS		-0.6%		-1.2%		-1.2%		-1.4%		-3.0%		-4.6%		-5.7%		-10.5%		6.3%		-15.1%	-12.6%	-9.7%
FY2019
Sept '181		Oct '181	Nov '181	**Dec '181	Jan '191	Feb '192	Mar '192	Apr '192	May '193	***June '193	July '193	Aug '193
Net Sales (In Millions)	$	323.0	$	268.1	$	240.4	$	267.1	$	275.8	$	280.1	$	349.9	$	263.0	$	253.7	$	309.6	$	267.0	$ 266.1
# Sales Days		24		20		18		22		20		20		25		20		19		23		20		20
Growth in ADS		7.3%		8.7%		8.7%		10.6%		6.9%		8.3%		9.6%		0.6%		2.4%		4.0%		4.0%	-1.7%

• Compared to same month, prior fiscal year. Canadian, Mexican, and U.K. selling days may differ from U.S. operations.
• December '18 contained one more selling day than December '19 and December '20 due to the Company closing on December 24 (Christmas Eve) in FY20 and FY21.
• June '19 had one less selling day due to the Company closing on the Friday following the July 4th holiday.
• May '21 had one more selling day than May '20 and May '19 due to the timing of the Memorial Day holiday which fell in June '21.
• June '21 is an estimate.

1. Includes acquisitive growth from AIS, which was acquired on April 30, 2018.
2. Includes acquisitive growth from AIS and MSC Mexico, which was formed in conjunction with an acquisition on February 1, 2019.
3. Includes acquisitive growth from MSC Mexico, which was formed in conjunction with an acquisition on February 1, 2019.

MSC Industrial Direct Co., Inc.

Operational Statistics - updated quarterly on earnings release date

Sales Growth by Regions
(Avg Daily Sales Basis)*		Fiscal 2021				Fiscal 2020
Midwest	Q1	Q2	Q3	Q4		Q1	Q2	Q3	Q4
-4.1%	0.9%	0.8%			-4.6%	-6.2%	-1.7%	-11.2%
Northeast	-7.0%	-3.0%	-4.3%		1.7%	-1.7%	-1.3%	-12.7%
Southeast	-10.4%	-5.8%	3.5%		-3.1%	-4.3%	-7.7%	-17.6%
West	-10.5%	-6.1%	-0.3%		0.5%	-1.8%	-5.5%	-11.4%
International & Other	27.8%	34.4%	33.1%		36.7%	30.1%	12.2%	13.7%

* International & Other ADS calculation reflects local selling days which may differ from US selling days.

Sales Growth by Customer
Type (Avg Daily Sales
Basis) *		Fiscal 2021				Fiscal 2020
Manufacturing	Q1	Q2	Q3	Q4		Q1	Q2	Q3	Q4
-13.5%	-4.9%	18.8%			-1.3%	-3.7%	-17.0%	-19.6%
Non-Manufacturing	10.8%	6.6%	-21.9%		-0.3%	-1.0%	26.2%	3.4%

* Beginning in Q3 FY20, the ADS calculations include United States selling days only. Prior periods have not been adjusted due to the insignificant impact of the change.

Sales by Customer Type		Fiscal 2021				Fiscal 2020
Manufacturing Heavy	Q1	Q2	Q3	Q4		Q1	Q2	Q3	Q4
45%	48%	48%			47%	47%	40%	44%
Manufacturing Light	20%	20%	21%		23%	23%	19%	21%
Government	11%	9%	9%		7%	7%	15%	11%
Retail/Wholesale	7%	7%	7%		6%	6%	7%	8%
Commercial Services	4%	5%	4%		5%	5%	5%	3%
Other (1)	13%	11%	11%		12%	12%	14%	13%

(1) The other category primarily includes individual customer and small business net sales not assigned to a specific industry classification.

MSC Industrial Direct Co., Inc.

Operational Statistics - updated quarterly on earnings release date

Growth Decomposition
(In Millions)		Q3 FY21
Large Accounts		Growth
$	(42.3)
Remaining Business		73.6
Total Growth	$	31.3	*

• We estimate that this $31.3 million increase in net sales is comprised of:
  (i) $14.0 million of higher sales volume;
  (ii) $13.3 million from an additional sales day in the current period; (iii) $2.8 million favorable foreign exchange impact; and
  (iv) $1.2 million from improved pricing, inclusive of changes in customer and product mix, discounting and other items

Growth Decomposition
(In Millions)	YTD FY21
Large Accounts		Growth
$	(73.7)
Remaining Business		41.2
Total Growth	$	(32.5)	*

• We estimate that this $32.5 million decrease in net sales is comprised of:
  (i) $71.4 million of lower sales volume;
  (ii) partially offset by $21.5 million from improved pricing, inclusive of changes in customer and product mix, discounting and other items; (iii) $13.3 million from an additional sales day in the current period; and
  (iv) $4.1 million favorable foreign exchange impact

Gross Margin Percentage	FY 21	FY 20	FY 19
Q1	41.9%	42.2%	43.0%
Q2	38.1%*	42.1%	42.7%
Q3	42.3%	42.4%	42.5%
Q4		41.6%	42.0%

* Gross margin in Q2 FY21 includes PPE-related inventory write-downs of $30.1 million.

MSC Industrial Direct Co., Inc.

Operational Statistics - updated quarterly on earnings release date

Operating Income (in
millions)		FY 21*	FY 20**		FY 19
Q1	$	53.9	$ 90.3	$	103.0
Q2		28.0	77.7		96.0
Q3		128.6	109.9		110.5
Q4			72.9		90.5

• Operating Income during FY21 includes an impairment loss of $26.7 million and restructuring costs of $4.0 million in Q1, PPE-related inventory write-downs of $30.1 million and restructuring costs of $21.6 million during Q2, and a loss recovery of $20.8 million and restructuring costs of $1.3 million in Q3.
• Operating Income during FY20 includes $17.0 million of restructuring costs. Restructuring costs by quarter were as follows: $2.6 million in Q1, $1.9 million in Q2, $1.4 million in Q3, and $11.1 million in Q4.

Operating Income
Percentage	FY 21*	FY 20**	FY 19
Q1	7.0%	11.0%	12.4%
Q2	3.6%	9.9%	11.7%
Q3	14.8%	13.2%	12.8%
Q4		9.8%	10.7%

• Operating Income during FY21 includes an impairment loss of $26.7 million and restructuring costs of $4.0 million in Q1, PPE-related inventory write-downs of $30.1 million and restructuring costs of $21.6 million during Q2, and a loss recovery of $20.8 million and restructuring costs of $1.3 million in Q3.
• Operating Income during FY20 includes $17.0 million of restructuring costs. Restructuring costs by quarter were as follows: $2.6 million in Q1, $1.9 million in Q2, $1.4 million in Q3, and $11.1 million in Q4.

Total eCOMM Sales (in						Total eCOMM Sales
					Annual Run Rate (in
millions) *		FY 21	FY 20		FY 19	millions) **	FY 21		FY 20		FY 19
Q1	$	468.7	$ 499.9	$	499.8	Q1	$ 1,897.5	$	2,023.8	$	2,023.4
Q2		458.1	478.7		493.9	Q2	1,885.0		1,969.7		1,999.5
Q3		521.8	461.3		520.5	Q3	2,015.0		1,809.3		2,041.3
Q4			448.5		505.5	Q4			1,759.0		2,014.0

This represents sales made through our eCommerce platforms, including sales made	** Equals the average daily sales for the quarter multiplied by
through Electronic Data Interchange systems, VMI systems, Extensible Markup Language	the number of business days in the fiscal year; 251 days
ordering based systems, vending machine systems, hosted systems and other electronic portals.	for FY21, FY20, and FY19.
* Total eCommerce sales does not include eCommerce sales from AIS and MSC Mexico.

MSC Industrial Direct Co., Inc.

Operational Statistics - updated quarterly on earnings release date

Total Associate Headcount		Fiscal 2021				Fiscal 2020
	Q1	Q2	Q3	Q4	Q1	Q2	Q3	Q4
Full Time	6,122	6,078	6,085		Full Time	6,473	6,487	6,430	6,153
Part Time	182	189	209		Part Time	149	145	157	162
Total	6,304	6,267	6,294		Total	6,622	6,632	6,587	6,315
Number of Field Sales
Associates *	Q1	FY 21	FY 20	FY 19
	2,313	2,349	2,417
	Q2	2,301	2,356	2,433
	Q3	2,320	2,341	2,411
	Q4		2,263	2,414

* Field Sales and Service Personnel includes all customer-facing associates in an external sales or service role.

Average Daily Sales (in
millions)*		FY 21		FY 20		FY 19
Q1	$	12.5	$	13.3	$	13.4
Q2	$	12.7		12.9		13.3
Q3	$	13.3		13.0		13.6
Q4				11.7		13.4

* Beginning in Q3 FY20, the ADS calculation includes United States selling days only. Prior periods have not been adjusted due to the insignificant impact of the change.