Slide 1: CDW Investor Presentation
CDW INVESTOR PRESENTATION 2020 | SUMMER / FALL http://investor.cdw.com/
Slide 2: Disclaimers
DISCLAIMERS Forward-Looking Statements Statements in this presentation that are not statements of historical fact are forward-looking statements within the meaning of the safe harbor provisions of the Private Securities Litigation Reform Act of 1995, including, without limitation, statements regardi
Slide 3: Track Record of Profitable Growth
TRACK RECORD OF PROFITABLE GROWTH NET SALES ($B)(2) $18.0 • Market-leading provider of integrated technology $16.2 $14.8 solutions to business, government, education and $13.7 $13.0 healthcare customers for 35+ years $12.1 $10.8 $9.6 $10.1 $8.8 • Coworkers: ~7,800 US and ~2,300 international; ~2/3 a
Slide 4: Large and Growing Market Opportunity
LARGE AND GROWING MARKET OPPORTUNITY TOTAL ADDRESSABLE MARKET The majority of the market is fragmented across thousands of value-added resellers. Total US, UK and Canada IT Market(2): CDW plus the next three largest publicly ~$1,100B traded IT solutions companies(1) represent less than 10% of CDW’s
Slide 5: Sustained Market Share Gains Across Business Cycles
SUSTAINED MARKET SHARE GAINS ACROSS BUSINESS CYCLES CONSISTENT, FASTER-THAN-MARKET-GROWTH PARTNERS INCREASINGLY RELIANT ON THE INDIRECT CHANNEL US IT Spending CAGR(1) CDW Net Sales CAGR 9.7% 7.8% 440 bps Direct 290 bps 40% Indirect 4.9% 5.3% 60% Indirect increased 2006-2019 2009-2019 ~300 bps since
Slide 6: Uniquely Positioned to Deliver Customer and Partner Value
UNIQUELY POSITIONED TO DELIVER CUSTOMER AND PARTNER VALUE CDW Sits Between Customers and Vendor Partners, Creating Value for Both VALUE TO CUSTOMERS: • Broad selection of products and multi-branded IT solutions • Value-added services with integration capabilities CUSTOMER • Highly-skilled specialist
Slide 7: Balanced Portfolio Offers Multiple Growth Drivers
BALANCED PORTFOLIO OFFERS MULTIPLE GROWTH DRIVERS DIVERSE CUSTOMER CHANNELS AND GEOGRAPHY CREATE MULTIPLE DRIVERS OF GROWTH AND DIVERSIFICATION AGAINST MACRO AND EXOGENOUS HEA DWINDS 2019 NET SALES ($18.0B) NET SALES GROWTH % 11% 3% Other 0% ’08–’09 Growth (UK, Canada) Corporate (Other includes ATS
Slide 8: CDW Is Mission-Critical for Key Vendor Partners
CDW IS MISSION-CRITICAL FOR KEY VENDOR PARTNERS MAJOR VENDOR PARTNERS EMERGING VENDOR PARTNERS 8 | INVESTOR PRESENTATION
Slide 9: Proven Track Record of Evolving With IT Trends
PROVEN TRACK RECORD OF EVOLVING WITH IT TRENDS Highly Integrated and Interconnected Technology Ecosystem Hardware and Software Products Security Complexity / Productivity And Growth Benefits CDW AMPLIFIEDTM Printers Storage Networking SERVICES Infrastructure Workspace Computers Accessories Servers S
Slide 10: Highly Skilled Services and Sales Capabilities
HIGHLY SKILLED SERVICES AND SALES CAPABILITIES (1) 100% PRE-SALE SPECIALISTS >3,000 TECHNICAL Our strong technical organization includes COWORKERS(2) more than 3,000 technical coworkers, SERVICES DELIVERY including pre-sales specialists and advanced services delivery engineers, allowing CDW ~6,800 C
Slide 11: Broad Portfolio of Solutions and Services
BROAD PORTFOLIO OF SOLUTIONS AND SERVICES CLOUD SOFTWARE DIGITAL WORKSPACE • Cloud Planning Services • Software Lifecycle Advisory Services • Network Solutions • World Class Portfolio • Design and Optimization Services • Consult, Design and Architect • Migration, Integration and Managed • Portfolio
Slide 12: Comprehensive Suite of Cloud Solutions
COMPREHENSIVE SUITE OF CLOUD SOLUTIONS With a portfolio of more than 250 cloud offerings, CDW is able to help customers with private, public or hybrid cloud solutions. 12 | INVESTOR PRESENTATION
Slide 13: International Presence to Better Serve Customers
INTERNATIONAL PRESENCE TO BETTER SERVE CUSTOMERS Able to provide IT solutions to 150+ countries (1) Located in 10 countries Able to export to (2) No presence 1. As of December 31, 2019. 2. Includes countries in the trailing 24 months that CDW has exported to or is able to supplement export capabilit
Slide 14: Sustainable Competitive Advantages
SUSTAINABLE COMPETITIVE ADVANTAGES SUPERIOR VALUE DIFFERENTIATED GROWTH STRONG ROWC Highly-Skilled Highly Engaged Scale and Sales and Performance - Scope Service Driven Culture Capabilities Multinational Robust Deep and Footprint With Distribution Experienced International Capabilities Management Ca
Slide 15: Strong Financial Performance
STRONG FINANCIAL PERFORMANCE (1) NET SALES $B OPERATING INCOME AND MARGIN(2) $18.0 $18.2 GAAP operating income ($MM) Non-GAAP Margin (%) $17.0 $16.2 Non-GAAP operating income ($MM) $1,368 $1,365 0.14 $14.8 $1,279 $13.7 $1,217 $13.0 $1,107 0.12 $12.1 $1,048 $10.8 $961 $9.6 $10.1 $747 $851 0.1 $8.8 $6
Slide 16: Strong Return on Working Capital
STRONG RETURN ON WORKING CAPITAL (1) 65.0% 65.5% 58.6% 54.9% 55.1% Highly focused on balancing working capital 51.5% 52.7% investments to support customers while 47.2% 47.8% generating attractive returns on invested 41.8% capital. ROWC (%) 32.5% 2010 2011 2012 2013 2014 2015 2016 2017 2018 2019 Q2'2
Slide 17: Capital Allocation Priorities
CAPITAL ALLOCATION PRIORITIES • Reassessed capital priorities to enhance liquidity position • Remain confident in liquidity position with $2.0 billion in cash plus revolver availability(1) PRIORITIES OBJECTIVES 2020 ACTIONS Target ~25% Payout of Non-GAAP Increase Dividends Annually Declared Q2’20 di
Slide 18: Returned More Than $3.1B Since 2013
RETURNED MORE THAN $3.1B SINCE 2013 (1),(2) DIVIDENDS PAID ($MM) SHARE REPURCHASES ($MM) $183 $657 $534 $522 $139 $107 $367 $79 $241 $53 $34 $7 2013 2014 2015 2016 2017 2018 2019 2015 2016 2017 2018 2019 1. From IPO through June 30, 2020. 2. Share repurchases were suspended in Q1 2020. 18 | INVESTOR
Slide 19: Investment Highlights
INVESTMENT HIGHLIGHTS • ~$360B addressable market opportunity with attractive growth potential • Clear leader with sustained market share gains in a highly fragmented market • Proven ability to evolve and capitalize on IT trends • Flexible, nimble performance-driven culture generating a strong finan
Slide 20: Appendix
APPENDIX 20 | INVESTOR PRESENTATION
Slide 21: CDW COVID-19 Response
CDW COVID-19 RESPONSE PRIORITIES ACTIONS • Cross-functional response team led by Executive Committee members • Continue to evaluate when and how to return to the office and where our Safeguard the health and well- coworkers will work in the future being of our coworkers • Distribution centers deemed
Slide 22: ESG Framework at CDW – IT Matters
ESG FRAMEWORK AT CDW – IT MATTERS SUSTAINING ENGAGING INSPIRING A Successful Business Our Coworkers, Trust and Confidence in and a Healthy Planet Communities and Partners All Our Stakeholders ▪ Economic performance ▪ Coworkers ▪ Governance and ethics ▪ Environment ▪ Local communities ▪ Customer priv
Slide 23: 2019-2020 Recognition Snapshot
2019-2020 RECOGNITION SNAPSHOT 2020 Best Best for Vets Corporate The CDW Way sets forth the shared values Places to Work Employer Equality Index that guide our behavior. by Glassdoor by Military Times Perfect Score by Human Rights We run our business with passion America’s Most Best Place to Campaig
Slide 24: Non-GAAP Operating Income Reconciliation: 2010-2015
NON-GAAP OPERATING INCOME RECONCILIATION: 2010-2015 24 | INVESTOR PRESENTATION
Slide 25: Non-GAAP Operating Income Reconciliation: 2016-2020
NON-GAAP OPERATING INCOME RECONCILIATION: 2016-2020 25 | INVESTOR PRESENTATION
Slide 26: Non-GAAP Net Income Reconciliation: 2010-2015
NON-GAAP NET INCOME RECONCILIATION: 2010-2015 26 | INVESTOR PRESENTATION
Slide 27: Non-GAAP Net Income Reconciliation: 2016-2020
NON-GAAP NET INCOME RECONCILIATION: 2016-2020 27 | INVESTOR PRESENTATION
Slide 28: Return on Working Capital Calculation
RETURN ON WORKING CAPITAL CALCULATION 28 | INVESTOR PRESENTATION
Slide 29: Non-GAAP Operating Income Margin Reconciliation
NON-GAAP OPERATING INCOME MARGIN RECONCILIATION 29 | INVESTOR PRESENTATION
Slide 30: Debt Maturity Profile
DEBT MATURITY PROFILE As of June 30, 2020 ($MM) Weighted Average Rate: 3.6% Weighted Average Maturity: 5.7 years $967 $600 $1,431 $575 $600 $600 $432 $57 $50 2020 2021 2022 2023 2024 2025 2026 2027 2028 $1.45B ABL - Drawn $1.45B ABL - Floorplan $1.45B ABL - Undrawn Senior Notes 4.25% Due 2028 Term L
Slide 31: Investor Relations Website
For a copy of this presentation, please access CDW’s investor relations website at: http://investor.cdw.com/