Slide 1: Avnet Fiscal Second Quarter 2021 Financial Results
Avnet Fiscal Second Quarter 2021 Financial Results January 27, 2021
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
Slide 4: Executing against our strategic priorities
Executing against our strategic priorities Building on positive momentum from the past two quarters Streamlining the business Capturing market share Leveraging the core & Farnell Growing revenue streams Investing in our business Enhancing our global digital footprint Growing customer & supplier Inve
Slide 5: Q2 FY21 highlights
Q2 FY21 highlights • Achieved revenues of $4.7B, up YoY, driven by: Total Revenues • Improving conditions in Americas & $4,630 $4,723 $4,668 EMEA $4,535 $4,310 $4,160 • Record sales in Asia • Improved operating margins at Farnell • Strong demand in auto & industrials sectors • Tightly managing backl
Slide 6: Leveraging the core electronic components business
Leveraging the core electronic YoY Revenue Growth components business $4.3 $4.2 • Revenues of $4.3B were up YoY: • Asia was growth driver with 9% growth QoQ • Americas seeing incremental improvement Q2 FY20 Q2 FY21 • EMEA impacted by Brexit and UK lockdowns Operating Income Margin Improvement • Seco
Slide 7: Continuing to invest in the future of Farnell
Continuing to invest in the future of Farnell • Revenues down sequentially & YoY; higher gross Sequential Margin Improvement margins from prior quarter 4.5% • Increased operating margins to 4.5%, tracking towards 3.5% goal of 10% • Added 49,100 SKUs through the first half of FY21 – progressing on pl
Slide 8: Celebrating 100 years
Celebrating 100 years • Building on Avnet’s core foundations • Adapting to wave after wave of change • Sustaining decades of trusted partnerships • Supporting customer business needs • Proven time and again the ability to adapt and evolve 8
Slide 9: Financial Overview
Financial Overview Tom Liguori Chief Financial Officer
Slide 10: Q2 FY21 financial achievements
Q2 FY21 financial achievements $4.7B $75M 75 Revenue Op ex plan Working capital days fully implemented achieved Delivered $0.48 Adjusted Diluted EPS 10
Slide 11: Q2 FY21 financial highlights
Q2 FY21 financial highlights $4.7B Revenues were up YoY; above guidance range $0.48 Adjusted diluted EPS(1) was above guidance range $85M Cash flow from operations; positive metric for 9th consecutive quarter 11% Gross margin; flat sequentially primarily due to higher Asia revenues $432M Adjusted op
Slide 12: Key metrics by business segment and region
Key metrics by business segment and region Electronic • Revenues of $4.3B, down 0.9% sequentially and up 3.3% YoY Components • Operating margins of 2.4% compared to 1.9% last quarter Americas • Revenues of $1.1B, down 8.7% sequentially and down 7.2% YoY EMEA • Revenues of $1.4B, down 9.1% sequential
Slide 13: Q2 FY21 balance sheet and cash flow performance
Q2 FY21 balance sheet and cash flow performance $376M Cash balance $1.21B Debt 3.0x Gross debt leverage ratio at end of quarter 2.1x Net debt leverage ratio at end of quarter $39 Net book value per share $30 Tangible book value per share 13
Slide 14: Execution is driving momentum
Execution is driving momentum Implementation of pricing analytics tool at Farnell yielded gross margin benefits Expanded operating margins in the Americas Replaced nearly all TI revenue with sales to new/existing customers in Asia Reduced net working capital days to 75 Added nearly $100 million of i
Slide 15: Outlook for Q3 FY 2021
Outlook for Q3 FY 2021 (ending on April 3, 2021) Metric Guidance Range Midpoint Sales $4.3B - $4.7B $4.5B Non-GAAP Adjusted Diluted EPS(1) $0.52 - $0.58 $0.55 Factors impacting our Q3 FY 2021 outlook: • Seasonally lower revenues in Asia due to Chinese New Year • Higher profitability due to: • Mix sh
Slide 16: Q&A Session
Q&A Session
Slide 17: Thank you
Thank you IAVNETIO™
Slide 18: 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