Slide 1: Avnet Fiscal First Quarter 2021 Financial Results
Avnet Fiscal First Quarter 2021 Financial Results October 28, 2020
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 Interim Chief Executive Officer
Slide 4: Q1 FY 2021 highlights
Q1 FY 2021 highlights Executing on our priorities: • Focusing on primary components distribution operations while taking steps to accelerate profitable growth of Farnell • Streamlining the organization, aligning operations and processes, driving productivity Our enhanced focus is reflected in the re
Slide 5: Electronic components business
Electronic components business $4.4B • Revenues were up QoQ and YoY; operating margins were $4.3B up QoQ across all regions and down YoY except in Asia • Sequential growth across all three geographic regions $3.9B • Book-to-bill ratio at end of Q1 above parity • Design activity at an all-time high w
Slide 6: Continuing to invest in the future of Farnell
Continuing to invest in the future of Farnell • Revenues up 13.3% sequentially on a constant currency basis • Added 28,000 SKUs of the 80,000 already invested in over past 12 months – progressing on plans to add 250,000 through FY22 • Completed rollout of our pricing optimization tool to enhance onl
Slide 7: Rebalancing our strategy
Rebalancing our strategy Sharpening focus on primary components distribution operations while strategically investing in Farnell Increasing market share in key target areas Growing revenue streams with comprehensive customer and supplier solutions Aligning structure, operations and processes to driv
Slide 8: Financial Overview
Financial Overview Tom Liguori Chief Financial Officer
Slide 9: Q1 FY 2021 financial priorities
Q1 FY 2021 financial priorities • Drive market share and revenue growth • Improve profitability through increased operating efficiency • Earn a return on capital greater than our cost of capital $4.7B 9.6% <80 QoQ revenue Op ex as a percent of Reduction in working growth of 13.5% revenues declined c
Slide 10: Q1 FY 2021 financial highlights
Q1 FY 2021 financial highlights $4.7B Revenues were up QoQ and YoY; above guidance range $0.36 Adjusted diluted EPS(1) was above guidance range $122M Cash flow from operations; positive metric for 8th consecutive quarter 10.9% Gross margin; down 49 bps from last quarter $451M Adjusted operating expe
Slide 11: Key metrics by business segment and region
Key metrics by business segment and region Electronic • Revenues of $4.4B, up 13.3% sequentially and 2.1% YoY Components • Operating margins of 1.9% compared to 1.5% last quarter Americas • Revenues of $1.2B, up 4.9% sequentially and down 0.8% YoY EMEA • Revenues of $1.5B, up 10.2% sequentially and
Slide 12: Q1 FY 2021 balance sheet and cash flow performance
Q1 FY 2021 balance sheet and cash flow performance $483M Cash balance $1.36B Debt 3.4x Gross debt leverage ratio at end of quarter 2.2x Net debt leverage ratio at end of quarter $38 Net book value per share $30 Tangible book value per share 12
Slide 13: Looking ahead
Looking ahead Reiterating our financial priorities & tracking against our expense reduction targets Operating Expense Working Capital targeting $75M $245M mid 70-day range 13
Slide 14: Outlook for Q2 FY 2021
Outlook for Q2 FY 2021 (ending on January 2, 2021) Metric Guidance Range Midpoint Sales $4.0B - $4.4B $4.2B Non-GAAP Adjusted Diluted EPS(1) $0.33 - $0.43 $0.38 Estimated Annual Tax Rate 13% - 17% 15% Note: Included in guidance are TI revenues of $40-$60M. (1) Non-GAAP measure. See Non-GAAP Definiti
Slide 15: Q&A Session
Q&A Session
Slide 16: Celebrating 100 years
Celebrating 100 years INVNE TIVO Reach Further® Together IAVNET
Slide 17: Thank you
Thank you AVNET
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