Tech Data — Q3 2014 Earnings Presentation
32 slides from Tech Data's earnings presentation, Feb 25, 2014
Slide 1: Fiscal Year 2014 Q3 Conference Call Supplemental Schedules
Fiscal Year 2014 Q3 Conference Call Supplemental Schedules Third Quarter and Nine Months Ended October 31, 2013 February 25, 2014 D lech Data Loreen
Slide 2: Company Speakers
Company Speakers Robert M. Dutkowsky Chief Executive Officer Jeffery P. Howells Executive Vice President and Chief Financial Officer ‘Pp ech Dat nye
Slide 3: Forward-Looking Statements and Non-GAAP Financial Information
Forward-Looking Statements and Non-GAAP Financial Information uncertainties furt filed February 25, ote and Annual Report on Form 16. mi fies pabiinany 5, 2014, copies of which can be cbtalied Thi presentation includes financial results prepared in accordance with ). In addition to GAAP results, Tec
Slide 4: Worldwide Sales
Worldwide Sales $ in Billions Quarterly Results Nine Month Results As Restatedt® $188 $179 $64 $63 $6.4 55% 60% 60% QIFY14.— Q2FY14—QBFYI4 3 YTD FY13 Q3 YTD FY14 Americas $2.3 $2.6 $2.6 Americas $72 $75 mEurope 3.7 $3.8 gEw $10.7 $112 Reported Y/Y Growth 4% 6% 6% Reported YY Growt 5% 5% FX-Adjusted
Slide 5: The Americas Sales
The Americas Sales $ in Billions Quarterly Results. $26 $2.3 QtFy14 Q2FYi4 —QSFY14 Reported YY Growth -7% 9% 9% Reported Y/Y Growth Nine Month Results As Restated”? © Q3 YTD FY13, 7% Q3 YTD FY14 4% ‘Pp ech Dat he Difernce In Dewbuton
Slide 6: Europe Sales (in USD)
Europe Sales (in USD) $ in Billions Quarterly Results Nine Month Results As Restated”) $113 QIFYI4— Q2FYI4.—QSFY14 Q3YTDFY13 G3 YTDFY14 Reported YY Growth 12% 4% 4% Reported YY Growth -3% 6% he Difernce In Dewbuton
Slide 7: Europe Sales (in euros)
Europe Sales (in euros) € in Billions Quarterly Results Nine Month Results As Restated!” €26 €8.3 QaFY14 QaFY14 QBYTDFYI3— Q3YTDFY14 Reported YY Growth 13% 0.4% 2% Reported YI Growth T% 3% Pech Data he Difernce In Dewbuton
Slide 8: Gross Profit and Margin
Gross Profit and Margin $ in Millions Quarterly Results Nine Month Results As Restated”? QiFvi4 @arvi4 aaryi14 CNT SACI imaGross Profit $922.4 $315.8 $926.1 manginss Prot $002.1 $0843) —onGross Margin 5.24% 4.99% 5.12% mercrese Marg, = {5.20% Sc12% P Rech Data 6 he Diference In Deuter
Slide 9: SG&A Expenses (non-GAAP)
SG&A Expenses (non-GAAP) $ in Millions Quarterly Results” Nine Month Results” 03 QIFY14— Q2FY14—GSFY14 FY13 mmENoN-GAAP SG&A exp $276.1 $2678 $262.7 MEmmINoN-GAAP SG&A exp $716.0 $806.7 Non-GAAP SG&A % 4.49% 4.23% 4.12% “Non-GAAP SG&A % 4.00% 4.28% GAAP SG8A exp $263.4 $2750 $270.1 GAAP SGBA exp $72
Slide 10: Worldwide Operating Income (non-GAAP)
Worldwide Operating Income (non-GAAP) Quarterly Results $ in Millions mmmmaNon-GAAP Operating Income o=Non-GAAP Operating Mose 0.75% 0.76% GAAP Operating Income $38.0 $299 GAAP Operating Margin 0.59% 0.07% © See the GAAP to Non-GAAP reconeilation in $63.9 1.00% Nine Month Results” As Restated”) mat
Slide 11: The Americas Operating Income (non-GAAP)
The Americas Operating Income (non-GAAP) $ in Millions [==INon-GAAP Operating Income —0—Non-GAAP Operating Margin GAAP Operating Income GAAP Operating Margin? Quarterly Results?) As Restated® Q3 YTD FY13 [==INon-GAAP Operating $29.0 $35.0 $33.7 incomes? , —2=Non-GAAP Operating 1.26% 1.33% 1.31% Marg
Slide 12: Europe Operating Income (non-GAAP)
Europe Operating Income (non-GAAP) $ in Millions Quarterly Results™2) 4 Q2FY 14 Non-GAAP aevoneaine Income® $20.4 $153 $31.3 Non-GAAP Operating Margin® 053% 0.41% 0.82% iroomen? S119 $0.4 $122 aap onan ens 0.00% ons in © Before stock compensation ex @ See the GAAP to non-GAAP. Nine Month Results‘ As
Slide 13: Net Income and EPS (non-GAAP)
Net Income and EPS (non-GAAP) in Millions except EPS Quarterly Results” Nine Month Results“ As Restated GBYTDFYISQ3YTDFY14 EEEINON-GAAP Net Income Income “o-Non-GAAP EPS - “o-Non-GAAP EPS - alee $0.66 $0.73 $1.04 Sea $3.61 $2.42 GAAP Net Income S178 9147 $377 GAAP Net Income 9131.8 $702 SAAPEPS-dilu
Slide 14: Cash Conversion Cycle
Cash Conversion Cycle QtFY14 onFy14 OsFY14 ‘Pp ech Dat 14 he Dilference
Slide 15: Cash Flow and Balance Sheet Highlights
Cash Flow and Balance Sheet Highlights $ in Millions Debt to Total Capital Cash Flow from Operations $258.0 $134.2 $126.3 QtFY14 Q2FY14 OsFY14
Slide 16: Return On Invested Capital
Return On Invested Capital” Weighted Average Cost of Capital ~10% Q1FY14 Q2FY14 Q3FY14 ‘Pp ech Dat nye
Slide 17: Customer and Product Mix
Customer and Product Mix Customers Products % of total sales % of total sales Retail/Direct Marketers 27% Broadline 46% Data Center 23% Corporate Resellers 21% Consumer Electronics 5% ‘Pp ech Dat he Difernce In Dewbuton
Slide 18: Appendix
APPENDIX GSES
Slide 19: Reconciliation: SG&A
GAAP to Non-GAAP Reconciliation SG&A Selling, general and adm ‘Three months ended July 31, 2013 GAAP SG&A expenses ‘April 30, 2013 October 31, 201: $ 283,360 $ 27 , 275,018 431 Acquisition-related amortization of intangibles (7,219) (7,205) (7,407) Non-GAAP SG&A expenses $ 27681 $ 267,813 $ 262,724
Slide 20: Reconciliation: Operating Income - Q1 FY14
GAAP to Non-GAAP Reconciliation Operating Income - Q1 FY14 (QUFY44= Three months ended April30, Stod ‘cast o eis Americas Europe Comsresion carcdtined Net Sales $ 2,292,782 $ 3,854,975 $ 6,147,757 GAAP operating income" $ 27,231 $ 11,891, $ (3,091) $ 36,031, Restatement expenses 1,760 41,263 3,023 A
Slide 21: Reconciliation: Operating Income - Q2 FY14
GAAP to Non-GAAP Reconciliation Operating Income — Q2 FY14 Q2FYi4/ Three months ended July 31, 2013 Stock Americas"? Europe!) Compensation Consolidated (In thousands) Expense Net Sales $ 2,624,546 $ 3,702,930 $ 6,327,476 GAAP operating income!” S$ 31988 $ 9S (2.227) $ 29,859 Restatement expenses 3,0
Slide 22: Reconciliation: Operating Income - Q3 FY14
GAAP to Non-GAAP Reconciliation Operating Income — Q3 FY14 (Q3 FY14” Three months ended October 31, 2013 Stock ‘Americas Europe” Compensation Consolidated (in thousands) ee Net Sales $ 2,571,750 $ 3,801,814 $ 6,373,564 ‘GAAP operating income” $ $3297 $124 (1631) $ 63,880 Restatement expenses 3331 11
Slide 23: Reconciliation: Operating Income - Q3 YTD FY14
GAAP to Non-GAAP Reconciliation Operating Income — Q3 YTD FY14 (Q3 YTD FY14- Nine months ended October 34, 2013 Stock ‘Americas Europe” Compens: Consolidated (in thousands) aes Net Sales $ 7,489,078 $ 11,359,719 $ 18,948,797 GAAP operating income! $ 112sie $= © 24,208 $= (6,949) $129,770 Restatement
Slide 24: Reconciliation: Operating Income - Q3 YTD FY13
GAAP to Non-GAAP Reconciliation Operating Income — Q3 YTD FY13 As restated) (In thousands) (Q3YTDFY13- Nine months ended October 31, 2012 Stock Net Sales GAAP operating income!” Acquisition-related amortization of intangibles Non-GAAP operating income GAAP operating margin Americas? Europe” Compensa
Slide 25: Reconciliation: Operating Income - Q1 FY13
GAAP to Non-GAAP Reconciliation 3 Operating Income — Q1 FY1 Qi FY13- Three months ended April30, 2012 As restated Americas“ (In thousands) ales Net Sal $ 2,057,488 ‘GAAP operating income” $49,778 Acquisition-related amortization of intangibles “GAAP operating income $49,778 GAAP operating margin 2.0
Slide 26: Reconciliation: Operating Income - Q2 FY13
GAAP to Non-GAAP Reconciliation 3 Operating Income — Q2 FY1 Q2FY13- Three months ended July 31, 2012 As restated) Americas“ Stock Europe” (In thousands) Compensation Consolidated Expense Net Sales $ 2,407,168 $3,561,251 $ 5,968,419 ‘GAAP operating income” $ 29868 $ 34109 (3666) $ 60311 Acquisition-r
Slide 27: Reconciliation: Operating Income - Q3 FY13
GAAP to Non-GAAP Reconciliation Operating Income — Q3 FY13 (Q3 FYi3- Three months ended October 31, 2012 As restated) Stock Americas“ (In thousands) Net Sales $ 2,368,243 ‘GAAP operating income” $ 32,624 Acquisition-related amortization of intangibles “GAAP operating income $32,624 GAAP operating ma
Slide 28: Reconciliation: Net Income & EPS
GAAP to Non-GAAP Reconciliation Net Income & EPS Three months ended April 30, 2013 October 31, 2013 (in thousands, except pershare dea) Qperating_-Net__ Diluted erating Net Operating Net Diluted Income income _EPS inc "a Income Income EPS GAAP results $ 36,031 $ 17,760 $ 047 $ 29859 $ 14,695 $ 038 §
Slide 29: Reconciliation: Net Income & EPS (Nine Months)
GAAP to Non-GAAP Reconciliation Net Income & EPS Operating Net Income (thousands, Income Nine months ended October 31, 2012 (As restated)” Operating income _Netincome gps GAAP results $ 0 $ 70; $ 206,364 $ 131814 $ 3.33 D settlement (22,914) (14,207) (0.37) r: . 2 Acquisition-related amortization of
Slide 30: Return on Invested Capital
Return on Invested Capital (in thousands) Operating Profit After Tax TECD ROIC Formula: aaragen Invested Capital — Average Cash Twelve months ended ‘April 30, 2013 ‘April 30, 2012 (As Restated)” Tax (NOPAT): Non-GAAP Operating Income $ 210i ad $ 351,236 Non-GAAP Tax Provisior 95,843 EF ne 357 $ 186,
Slide 31: Return on Invested Capital
Return on Invested Capital (in thousands) Operating Profit After Tax Meco cietaciies aap Invested Capital — Average Cash Twelve months ended July 31, 2013 July 31, 2012 (As Restated)!" it Tax (NOPAT): Non-GAAP Operating Income $ 255,261 $ 338,254 Non-GAAP Tax Provisior 79,202 94,276 1,128 645 $ 174,
Slide 32: Return on Invested Capital
Return on Invested Capital (in thousands) TECD ROIC Formula: aa Invested Capital — Operating Profit After Tax ‘Average Cash Twelve months October 31, 2013 Sac, 2012 (As Restated)" Tax (NOPAT): Non-GAAP Operating Income $ 251,836 $ 318,432 Non-GAAP Tax Provisior 82,869 87,309 975 712 $ 167,992 § 230,