Avnet, Inc. · NASDAQ:AVT
Avnet — Raymond James 38th Annual Institutional Investors Conference (March 2017)
17 slides from Avnet's conference presentation, Mar 7, 2017
Slide 1: Avnet Presentation Raymond James 38th Annual Institutional Investors Conference
William Amelio, Chief Executive Officer Vincent Keenan, Senior VP of Investor Relations March 7, 2017 Avnet Presentation Raymond James 38th Annual Institutional Investors Conference 1
Slide 2: Safe Harbor Statement
Safe Harbor Statement • This presentation contains certain “forward-looking statements” within the meaning of Section 27A of the Securities Act of 1933 and Section 21E of the Securities Exchange Act of 1934. These statements are based on management’s current expectations and are subject to uncertain
Slide 3: Historical Company Snapshot
Historical Company Snapshot Fast Facts An Industry Leader • Headquartered in Phoenix, AZ • FORTUNE Most Admired list for technology distribution, 2007-2017 • Founded in 1921 • Top Business Technology Innovator in 2016 InformationWeek Elite 100 • AVT listed on the NYSE in 1960 • No. 102 on the 2016 F
Slide 4: Avnet Addressable Market
Avnet Addressable Market Global total available Avnet market (Semi = w/o MPU, DRAM, Flash) Semi TAM and growth, by vertical $B CAGR 2017 ‘17-20 Vertical TAM, $B CAGR, ’17-20 4.9% p.a. 366 4.5% p.a. 348 332 317 Industrial 38 303 5.2% Automotive 34 IP&E Consumer 38 Data Proc. 122 4.8% Semi Mil/Aero 4
Slide 5: Avnet Role In The Value Chain
Avnet Role In The Value Chain Suppliers Customers ~600 ~110,000 78% OEM Semi- conductors 10% ODM Avnet Embedded Example EMS 12% end-customers: We provide EMS Cisco, EMC IP&E • Design chain • Supply chain Number of suppliers Number of customers • ~600 suppliers on our linecard • Serve ~110,000 EMS, O
Slide 6: Design Chain Process
Design Chain Process Concept to design Prototype-Test-Debug Product intro to End-of-life Lifecycle Opportunity ID Tech. sales + registration Build phase Fulfillment • Lead-generation • Rep.+ FAE • FAE design support • Production pipelining • Supplier marketing • Advice to customers • Small-scale shi
Slide 7: Premier Farnell Expands Avnet's Role In Product Lifecycle
Premier Farnell Expands Avnet’s Role In Product Lifecycle Maker Engineers Manufacturing Entrepreneur Customers Addition of Premier Volume Production Small Production Farnell Customer Base Mass Volume Prototype Technology Launch Design IDEA DESIGN PRODUCTION Premier Farnell, element14, MakerSource an
Slide 8: Three Key Objectives Of Our Digital Strategy
Three Key Objectives Of Our Digital Strategy Win new design customers with digital • Become the destination of choice for our customers, extending our net • Be best-in-class in the experience we offer including proposition behind the site Offer digital self-service • Seamless integration of digital
Slide 9: Connected Ecosystem With Distinct Brands
Connected Ecosystem With Distinct Brands Hackster ~200K registered users ~400K active customers / month Element14 ~450K registered users ~6m visits / month Online Community Online Resource E-commerce for Supply Chain & Education Sites Directory for Startups prototyping Support Learn & Design Create
Slide 10: Q2 FY2017 Financial Performance
Q2 FY2017 Financial Performance • Highlights • Revenue grew 4% year over year in constant currency, excluding: • Premier Farnell acquisition • High volume supply chain engagements in Asia • Premier Farnell sales exceed expectations and expanded margin • Both gross profit and operating income margins
Slide 11: Pro Forma Margin Enhancement
Pro Forma Margin Enhancement 14.0% 13.6% - 13.8% 1.2% - 1.3% 0.0% - 0.1% Gross Margin 13.5% 13.0% 12.5% 0.8% 12.0% 11.6% 11.5% 11.0% Avnet Status Quo Sale of TS Acquisition of PF Synergies from PF Avnet Pro Forma FY16 5.0% 4.2% - 4.6% Adj. Operating 4.6% 0.5% - 0.7% Margin (1) 4.2% 0.0% - 0.2% 0.3%
Slide 12: Pro Forma Adjusted EPS
Pro Forma Adjusted EPS 2 strategic Cost reductions Strategic capital transactions Initiatives ~ 2 years allocation $4.22 ($1.36) $0.18 - $0.20 $4.21 - $4.41 $0.15 $0.40 - $0.52 $0.40 - $0.46 $0.21 As Pro Reported Forma(4) FY16 As Reported TS Premier PF AVT Advantage Debt Stock Pro FY16(1) Sale(2) Fa
Slide 13: Capital Allocation
Capital Allocation • Priorities • Organic growth • Strategic value-creating acquisitions • Disciplined share repurchases • Dividend • Recent announcements • Increased quarterly dividend 5.9% to $0.18 per share • Increased share repurchase authorization $500M, $675M available Dividend & buy back retu
Slide 14: Key Investment Highlights
Key Investment Highlights • A global leader in value-added electronic component distribution • Combination with Premier Farnell creates an unmatched end-to-end model • Total addressable market in excess of $300 billion and growing(1) • Revenue stream from broad customer base and diverse market segme
Slide 15: Thank You
Thank You Accelerating Your Success”
Slide 16: Appendix
AVNET Appendix Accelerating Your Success”
Slide 17: Non-GAAP Reconciliation and Definitions
Non-GAAP Reconciliation and Definitions Non-GAAP Definitions In addition to disclosing financial results that are determined in accordance with generally accepted accounting principles in the United States (“GAAP”), the Company also discloses in this presentation certain non-GAAP financial informati
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