Slide 1: Investor Presentation 2023 Summer / Fall
INVESTOR PRESENTATION 2023 | SUMMER / FALL
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) • Market-leading provider of integrated technology $23.7 solutions to business, government, education and $20.8 healthcare customers for 35+ years $18.0 $18.5 $16.2 $14.8 • Coworkers: ~11,600 US and ~3,300 international; $13.0 $13.7 over 2/3 are cu
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 ~$1,400B traded IT solutions companies(1) represent less than 10% of CDW’s
Slide 5: Strategy Drives Sustained Market Share Growth
STRATEGY DRIVES SUSTAINED MARKET SHARE GROWTH THREE-PART STRATEGY FOR GROWTH CONSISTENT, FASTER-THAN-MARKET-GROWTH (1) US IT Spending CAGR CDW Net Sales CAGR 1 Capture share and acquire new customers 9.7% 320 bps 2 210 bps 8.1% Enhance capabilities in high-growth solutions areas 6.5% 6.0% 3 Expand s
Slide 6: 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 2022 NET SALES & Y/Y GROWTH % NET SALES GROWTH % ($23.7B, +14.1%) Other 11% 3% TOTAL CHANGE (UK, Canada) Great Recess
Slide 7: 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 8: Highly Complex and Interconnected Customer Experiences
HIGHLY COMPLEX AND INTERCONNECTED CUSTOMER EXPERIENCES 8 | INVESTOR PRESENTATION
Slide 9: Full Solutions Stack, Full Outcome and Full IT Lifecycle
FULL SOLUTIONS STACK, FULL OUTCOME AND FULL IT LIFECYCLE As a trusted advisor, we help customers navigate and be successful in an ever- MULTI-CLOUD changing world by providing them the technology advice and solutions they need, when they need them. SERVICES SOFTWARE HARDWARE 9 | INVESTOR PRESENTATIO
Slide 10: Broad Portfolio of Solutions and Services
BROAD PORTFOLIO OF SOLUTIONS AND SERVICES ON PREMISE ON JOURNEY ON MULTI-CLOUD The breadth of our product and solutions portfolio ensures we are well- SOLUTION TRANSFORMATION PLATFORM positioned to meet our customers’ DESIGNS DESIGNS DESIGNS DESIGN needs and pivot quickly to trends in customer deman
Slide 11: Proven Track Record of Execution to Accelerate Capabilities
PROVEN TRACK RECORD OF EXECUTION TO ACCELERATE CAPABILITIES Acquires Locus 2023 Recruiting and Enquizit Complexity / Productivity and Growth Benefits 2021 Acquires Amplified IT, Focal Point and Sirius Computer Solutions 2020 Acquires IGNW, Aeritae and Southern Dakota Solutions 2019 Acquires Scalar D
Slide 12: Highly Skilled Services and Sales Capabilities
HIGHLY SKILLED SERVICES AND SALES CAPABILITIES (1) ~10,600 CUSTOMER-FACING COWORKERS >6,300 TECHNICAL COWORKERS(3) Our strong technical organization includes approximately 6,300 technical coworkers, Services Non- including pre-sales specialists and advanced Delivery Customer- services delivery engin
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 11 countries Able to export to (2) No presence 1. As of December 31, 2022. 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 Robust Multinational Deep and Distribution and Footprint With Experienced Logistics International Management C
Slide 15: Strong Financial Performance
STRONG FINANCIAL PERFORMANCE (1) NET SALES $B GROSS PROFIT Netted down revenues as % of Gross profit (%)(2) Gross profit ($MM) $4,687 $4,685 $23.7 $22.9 $22.4 $4,163 $20.8 $3,569 $18.0 $18.5 $3,040 $3,210 $14.8 $16.2 $2,707 $13.0 $13.7 $2,116 $2,328 $2,450 $10.8 $12.1 $1,760 $1,921 30% 30% 31% 25% 2
Slide 16: Strong Return on Working Capital
STRONG RETURN ON WORKING CAPITAL (1) 65.0% 65.5% 66.1% 65.6% 58.0% 59.1% 54.9% 55.1% Highly focused on balancing working capital 51.5% 52.7% investments to support customers while 47.8% generating attractive returns on invested capital. ROWC (%) 2013 2014 2015 2016 2017 2018 2019 2020 2021 2022 Q2'2
Slide 17: 2023 Capital Allocation Priorities
2023 CAPITAL ALLOCATION PRIORITIES PRIORITIES OBJECTIVES ACTIONS Target ~25% payout of Non-GAAP 18% increase in November 2022 Increase Dividends Annually net income; grow in-line with earnings to $2.36/share annually Target ~2.0 to 3.0 times Net Leverage Maintain Net Leverage Ratio(1) Ratio; consist
Slide 18: 2023 Outlook
2023 OUTLOOK (1), (2) 2023 US IT Market to decline at a high single-digit rate Net Sales Growth plus ~200 to 300 bps CDW premium in constant currency Non-GAAP Operating Income Margin(3) In the range of 9% Non-GAAP Earnings Per Diluted Share Growth In the range of flat year-over-year 1. Certain annua
Slide 19: Returned Approximately $6.1B in Cash to Shareholders Since 2013
(1) RETURNED APPROXIMATELY $6.1B IN CASH TO SHAREHOLDERS SINCE 2013 DIVIDENDS PAID ($MM) SHARE REPURCHASES ($MM)(2) IN 2022 CDW PAUSED SHARE (3) REPURCHASES $283 $1,500 $235 $220 $657 $183 $534 $522 $139 $107 $367 $341 $79 $241 $53 $34 $7 2013 2014 2015 2016 2017 2018 2019 2020 2021 2022 2015 2016 2
Slide 20: Investment Highlights
INVESTMENT HIGHLIGHTS • ~$460B addressable market opportunity with attractive growth potential • Market-leading provider of integrated technology solutions in a highly fragmented IT Solutions Industry • Proven ability to evolve and capitalize on IT trends • Flexible, nimble performance-driven cultur
Slide 21: Appendix
APPENDIX 21 | INVESTOR PRESENTATION
Slide 22: Expanding Capabilities Through Recent Acquisitions
EXPANDING CAPABILITIES THROUGH RECENT ACQUISITIONS Acquisition completed on February 21, 2023 Acquisition completed on June 6, 2023 • Expands talent orchestration to support the full technology lifecycle • Experienced provider of AWS cloud services (AWS Premier Consulting for customers through servi
Slide 23: ESG at CDW
WE MAKE TECHNOLOGY WORK SO PEOPLE CAN DO GREAT THINGS ESG AT CDW ESG PILLARS AND MATERIAL TOPICS In ate 2022, we initiated an ESG materiality assessment refresh that will be completed in 2023 and will guide our strategic focus for the coming years. So far, we have noticed ahigh degree of consistency
Slide 24: CDW's 2022 ESG Milestones and Highlights
CDW’S 2022 ESG MILESTONES AND HIGHLIGHTS Created a cross-functional, geographically diverse Climate Task Force Derived 98% of our overall electricity usage from renewable sources and 100% renewable energy sourcing for single- tenant buildings in the UK Enhanced customer access to an expanded portfol
Slide 25: Recognitions
WE MAKE TECHNOLOGY WORK SO PEOPLE CAN DO GREAT THINGS RECOGNITIONS The following awards recognize our commitment toa proactive ESG agenda and our dedication to making a positive impact for all our stakeholders and the world we share with them. OVERALL ESG RECOGNITION 2022 NASDAQ 100 ESG, RANKED #11
Slide 26: Non-GAAP Operating Income Reconciliation: 2013 – 2018
NON-GAAP OPERATING INCOME RECONCILIATION: 2013 – 2018 26 | INVESTOR PRESENTATION
Slide 27: Non-GAAP Operating Income Reconciliation: 2019 – TTM Q2 2023
NON-GAAP OPERATING INCOME RECONCILIATION: 2019 – TTM* Q2 2023 27 | INVESTOR PRESENTATION
Slide 28: Non-GAAP Net Income Reconciliation: 2013 – 2018
NON-GAAP NET INCOME RECONCILIATION: 2013 – 2018 28 | INVESTOR PRESENTATION
Slide 29: Non-GAAP Net Income Reconciliation: 2019 – TTM Q2 2023
NON-GAAP NET INCOME RECONCILIATION: 2019 – TTM Q2 2023 29 | INVESTOR PRESENTATION
Slide 30: Return on Working Capital Calculation: 2013 – TTM Q2 2023
RETURN ON WORKING CAPITAL CALCULATION: 2013 – TTM Q2 2023 30 | INVESTOR PRESENTATION
Slide 31: Non-GAAP Operating Income Margin Reconciliation: 2013 – TTM Q2 2023
NON-GAAP OPERATING INCOME MARGIN RECONCILIATION: 2013 – TTM Q2 2023 31 | INVESTOR PRESENTATION
Slide 32: Debt Maturity Profile
DEBT MATURITY PROFILE As of June 30, 20231 ($MM) Weighted Average Rate: 4.1% Weighted Average Maturity: 4.5 years $1,000 $735 $984 $500 $1,000 $575 $600 $616 $600 $700 2023 2024 2025 2026 2027 2028 2029 2030 2031 Senior Notes 5.5% Due 2024 $1.6B RLF2 - Floorplan Senior Notes 2.670% Due 2026 Senior N
Slide 33: CDW investor relations website
For a copy of this presentation, please access CDW’s investor relations website at: http://investor.cdw.com/