Arrow Electronics, Inc. · NYSE:ARW
Arrow Electronics — Investor Presentation (May 2022)
20 slides from Arrow Electronics's investor presentation, May 23, 2022
Slide 1: Investor Overview
Investor Overview
Slide 2: Safe harbor statement
Safe harbor statement This presentation may include forward-looking statements that are subject to numerous assumptions, risks and uncertainties, which could cause actual results or facts to differ materially from such statements for a variety of reasons, including, but not limited to: industry cond
Slide 3: We believe in helping the benefits of technology reach as many people as possible
We believe in helping the benefits of technology reach as many people as possible 3 3
Slide 4: Technology that serves everyone
Technology that serves everyone Semi Autonomous Mobility (SAM) DigiTruck Belle’s Dragon SAM Suit Student Drone Project Silicon Savanna 4
Slide 5: We specialize in managing complexity
We specialize in managing complexity 90+ Countries served 43 Distribution and value-added centers 245 Sales locations 5
Slide 6: Strength in numbers
Strength in numbers CUSTOMERS FORTUNE 500 RANK 220,000+ 104 NYSE TICKER SYMBOL EMPLOYEES ARW 20,700+ FOUNDED 1935 2020 GLOBAL REVENUE (USD) $34.48B GLOBAL HEADQUARTERS Centennial, CO, USA 6
Slide 7: Our network in numbers
Our network in numbers CONSOLIDATED SALES GROSS PROFIT ASIA COMPONENTS $ 34.48 $ 4.20B 12.28B $ B AMERICAS COMPONENTS $ 7.83B GLOBAL COMPONENTS OPERATING INCOME 26.36 1.56B EUROPE COMPONENTS $ B $ $ 6.25B AMERICAS ENTERPRISE COMPUTING SOLUTIONS GLOBAL ENTERPRISE COMPUTING SOLUTIONS EARNINGS PER SHAR
Slide 8: A history of improving lives
A history of improving lives Arrow Radio opens Incorporate as Arrow goes public Listed on 50+ acquisitions Arrow expands Arrow moves HQ Arrow tops category on Radio Row in Arrow Electronics NYSE (ARW) and expansion computer products to Colorado from in FORTUNE’s Most New York City into Europe busine
Slide 9: Filling the gaps
Filling the gaps AWOW
Slide 10: An omnichannel engineering approach
An omnichannel engineering approach Complex, bespoke solutions DOZENS OF CUSTOMERS eInfochips Core engineering service centers Off-the-shelf solutions Digital TENS OF THOUSANDS OF CUSTOMERS 10
Slide 11: Our services accelerate product commercialization
Our services accelerate product commercialization Media & SaaS Engineering Supply Chain Integration Managed ASPENCORE media Design & Validation Supply Chain Design Connectivity Financial Services house Hardware New Product Invoice & Payment Warranty Services Professional Services SiliconExpert data
Slide 12: We understand our audience and reach them at scale
We understand our audience and reach them at scale Arrow’s trusted brands reach 80% of global engineering community in print, online, and at events AWARD- WINNING MEDIA BRANDS 70+ Journalists 15M+ 50M+ 50K+ and Correspondents Monthly Visitors Monthly Page Views Attendees/Event 12
Slide 13: Industries we serve
Industries we serve Aerospace & Defense Medical Industrial Consumer Transportation Data Center Security IoT Business Intelligence Cloud Lighting Power Management Mobility 13
Slide 14: Global components serves smaller, faster-growing, higher-profit potential customers
Global components SHARE OF GLOBAL SEMICONDUCTOR CONSUMPTION1 serves smaller, faster- growing, higher-profit potential customers Top 10 Semi All Other Consumers Consumers 40% No customer 60% >2% of sales 1 Source: Gartner, “Market Insight: Top 10 Semiconductor Chip Buyers, Worldwide, 2018,” February
Slide 15: Global components' breadth reduces volatility
Global components’ breadth reduces ARROW SEMICONDUCTOR volatility ELECTRONICS INDUSTRY2 10% 78% semis 50% 50% 19% PEMCO1 90% 7% computer products and PCs & Mobile Devices PCs & Mobile Devices Memory Other Other 2% other 1 passive and electromechanical components; 2 Semiconductor Industry Association
Slide 16: Enterprise computing solutions' unique software-led approach
Enterprise computing ARROW ENTERPRISE COMPUTING solutions’ unique SOLUTIONS BILLINGS MIX software-led solutions Networking & Other approach 5% Servers 10% Software and Software Storage 50% 20% services are nearly 2/3rds Services of the business 15% 16
Slide 17: Enterprise computing solutions / ArrowSphere
Enterprise computing solutions / ArrowSphere The cloud management & delivery platform for powering digital growth • SaaS ArrowSphere • MyCloud • End • IaaS PA R T N E R P O R TA L Portal Customer • PaaS • Partner Marketplace • Cloud (API) Software 17
Slide 18: Attractive countercyclical cash flow
Attractive countercyclical cash flow • Cumulative 10-year cash flow from operations at 116% of GAAP net income • Cumulative 10-year cash flow from operations at 88% of non-GAAP net income 18
Slide 19: Disciplined approach to capital allocation
Disciplined approach to capital allocation $2.2B of cash returned to shareholders over the last 5 years through repurchases • 71% of CFFO returned • 92% of FCF returned • 22% reduction in shares 19
Slide 20: Investor Contact
Investor Contact Investor Relations P: +1 303 305 4936 E: investor@arrow.com