Slide 1: Avnet First Quarter 2023 Financial Results
Avnet First Quarter 2023 Financial Results October 26, 2022
Slide 2: Safe Harbor Statement
Safe Harbor Statement This document contains forward-looking statements within the meaning of Section 27A of the Securities Act of 1933, as amended, and Section 21E of the Securities Exchange Act of 1934, as amended, with respect to the financial condition, results of operations and business of the
Slide 3: Executive Overview
Executive Overview Phil Gallagher Chief Executive Officer 3
Slide 4: Q1 FY23 Overview
Q1 FY23 Overview Revenue • Grew sales across all regions and improved profitability year over year despite headwinds Operating Income $6.8B Revenue +29% Y/Y • Third consecutive quarter of Operating Margin greater than 4% in constant currency • Operating Income grew three times greater than revenue Y
Slide 5: Q1 FY23 Operating Groups
Q1 FY23 Operating Groups Electronic Components (EC) • Growth in all regions $6.3B – Sixth consecutive quarter of record sales in Asia Revenue +31% Y/Y – Continued high growth in Americas and EMEA in constant currency • Well-diversified and focused on higher growth markets • – Transportation, Industr
Slide 6: Financial Highlights
Financial Highlights Ken Jacobson Chief Financial Officer 6
Slide 7: Q1 Revenue
Farnell Farnell Q1 Revenue 8% 6% Q1 Q1 FY22 FY23 EC EC Executing to support continued strong demand 92% 94% Avnet Electronic Components Farnell +28.9% in constant currency $6.75B +31.4% in constant currency $6.32B $5.58B $5.13B +1.6% in constant $0.46B currency $0.43B Q1 Q1 Q1 Q1 Q1 Q1 FY22 FY23 FY2
Slide 8: Q1 Income Statement
Q1 Income Statement Improving operational efficiency Reported revenues; changes in foreign currencies had a negative Adjusted Operating Expense $6.8B impact on sales of $150M QoQ and $450M YoY as % of Gross Profit (1) 72.9% -1108 bps Gross margin down 85 bps QoQ and down 43 bps YoY 61.8% 11.4% – hig
Slide 9: Q1 Adjusted Operating Income
Farnell Q1 Adjusted Operating Income EC+Farnell Farnell (1) OI$ share: 23% Q1 16% Q1 FY22 FY23 EC EC Operating income grew 3x revenues YoY 77% 84% Avnet Electronic Components Farnell $293M 12.1% $267M 10.9% $179M $163M 4.4% 4.2% 3.2% 3.2% $50M $52M Q1 Q1 Q1 Q1 Q1 Q1 FY22 FY23 FY22 FY23 FY22 FY23 9 (
Slide 10: Q1 Non-operating & EPS
Q1 Non-operating & EPS (1) EPS increased 3x revenue YoY Adjusted Diluted EPS (1) Interest expense up QoQ due to higher debt and increases in +63.9% $2.00 $45M borrowing rates – $0.12 QoQ negative impact on adjusted diluted EPS $1.22 23% Adjusted effective tax rate (1) $2.00 Adjusted diluted EPS (1)
Slide 11: Q1 Balance Sheet & Liquidity
Q1 Balance Sheet & Liquidity Increases to share buybacks and our dividend Inventory – investments to support sustained growth in Asia $4.7B and a single supply chain engagement Diluted Shares Outstanding 101M -5.4% 96M 73 WC days with good returns on working capital 1.9x Gross debt leverage $563M Av
Slide 12: Outlook for Q2 FY 2023
Outlook for Q2 FY 2023 (ending December 31, 2022) Metric Guidance Range Midpoint Sales $6.35B – $6.65B $6.50B Non-GAAP Adjusted Diluted EPS (1) $1.80 – $1.90 $1.85 Factors impacting our Q2 FY 2023 outlook • Based on current market conditions, including a $60 million negative impact on sales guidance
Slide 13: Q&A Session
Q&A Session 13
Slide 14: For more information, please visit https://ir.avnet.com/
For more information, please visit https://ir.avnet.com/ 14
Slide 15: Non-GAAP 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 certain non-GAAP financial information including (i) adjusted operating income, (ii) adjusted ope