Arrow Electronics, Inc. · NYSE:ARW
Arrow Electronics — Investor Day (December 2025)
21 slides from Arrow Electronics's investor day presentation, Dec 2, 2025
Slide 1: Strategy Overview
Strategy Overview Bill Austen, Interim President and CEO December 2, 2025
Slide 2: Safe harbor
Safe harbor This presentation includes “forward-looking statements,” as the term is defined under the federal securities laws. Forward-looking statements are those statements which are not statements of historical or current fact. These forward-looking statements can be identified by forward-looking
Slide 3: Why Arrow
Why Arrow As the premier distributor of technology solutions, we guide innovation forward Leading Position in Differentiated Diversified Business Focused Large and Growing Capabilities Driving Model Provides Capital Allocation Markets Profitable Growth Financial Flexibility Strategy • Superior produ
Slide 4: Serving diverse end markets with enabling technology
Serving diverse end markets with enabling technology End Markets Arrow Technologies / Solutions Arrow Businesses Global Components Connecting Original Equipment Manufacturers IP&E2 (OEMs) and embedded solution providers with a Semiconductors comprehensive portfolio of electronic components Industria
Slide 5: Large addressable opportunity
Large addressable opportunity Operating in large and growing markets at the convergence of physical and digital solutions positions Arrow for long-term sustainable growth Superior execution in our foundational ‘indirect' markets (DTAM) • Serving large and growing end markets through foundational pro
Slide 6: Extending our value
Extending our value Building upon our strong foundation, we are extending our capabilities through our value-added offerings to enable profitable growth Contribution of Value-Add Solutions to Total Company Operating Income Supply Chain Solutions Engineering & Design Integration Services <20% ~30% HI
Slide 7: Global Components overview
GLOBAL COMPONENTS Global Components overview Product Distribution Value Add Solutions Distribute semiconductor components and interconnects, Industry leading engineering capabilities and supply chain passives & electromechanical devices (IP&E) services that accelerate customers’ go-to-market Providi
Slide 8: Global Components' role in the value chain
GLOBAL COMPONENTS Global Components’ role in the value chain Suppliers / Components Manufacturers Distributors End Customers Original Equipment Manufacturers (OEMs) Obtain components from OCMs and distributors for use in end-product Suppliers / Original manufacturing Component Manufacturers (OCMs) A
Slide 9: Supply Chain Services solves complexity
VALUE-ADD GLOBAL SOLUTIONS COMPONENTS Supply Chain Services solves complexity Value-Add Solutions The challenge we solve: The outcomes of our solution: Complexity and Chaos Control, Resilience and Visibility • OEMs have limited visibility and control • Improved visibility and control • Tactical acti
Slide 10: Engineering & Design Services help customers get to market quickly
VALUE-ADD GLOBAL SOLUTIONS COMPONENTS Engineering & Design Services help Value-Add Solutions customers get to market quickly Serve as extension of OEMs' and suppliers' Product Examples product development and design team World’s 1st Ideation to production capabilities, backed by Programmable Etherne
Slide 11: Integration Services delivering purpose-built solutions
VALUE-ADD GLOBAL SOLUTIONS COMPONENTS Integration Services delivering purpose- Value-Add Solutions built solutions Arrow Intelligent Solutions (AIS) builds and integrates technology solutions to bring innovative products to market faster by leveraging an ecosystem of world-class suppliers Customers
Slide 12: Global Enterprise Computing Solutions overview
GLOBAL ECS Global Enterprise Computing Solutions overview With access to hundreds of vendors, we enable our We deliver complex hardware, software, and cloud community of thousands of channel partners to deliver solutions. Our award-winning digital platform, modern IT solutions for their customers Ar
Slide 13: ECS' traditional role in the value chain
GLOBAL ECS ECS’ traditional role in the value chain Makers of Technology Channel End Partners Customers Focus on what they Focus on what we do best: do best: make distribution VARs and MSPs Focus on technology mid-market 13
Slide 14: Strategic outsourcing agreements ("beyond distribution")
GLOBAL ECS Strategic outsourcing agreements (“beyond distribution”) • Strategic outsourcing agreements expand Arrow’s addressable market through exclusivity, cross-sell opportunities, and stickier relationships • Arrow pays a fixed fee to become the exclusive partner of a supplier, assuming all or p
Slide 15: Case study: beyond distribution
GLOBAL ECS Case study: beyond distribution Overview Software provider wants to scale and accelerate a global market presence SOFTWARE PROVIDER Consideration They don’t want to dedicate the time, efforts, resources, operations, compliance or logistics to develop certain non-strategic or non-core area
Slide 16: ArrowSphere is at the center of our ECS strategy
GLOBAL ECS ArrowSphere is at the center of our ECS strategy We target enterprise and mid-market Market customers through channel partners on behalf of our suppliers Enterprise and Mid-Market Channel partners enjoy • Cloud and “everything-as-a-service” enablement • Hardware and software distribution
Slide 17: Diversified business model
Diversified business model Enables a strong, resilient balance Free Cash Flow1 Generation ($ in millions) sheet and consistent free cash flow generation through cycles, providing $1,236 significant financial flexibility ~$3.1B $1,043 FCF generation 2020-2024 Global Global $622 Components ECS $358 $(
Slide 18: Focused capital allocation strategy
Focused capital allocation strategy Supports organic growth, funds accretive M&A, and provides for consistent capital returns Reinvest in organic Execute strategic and Return excess capital growth opportunities financially disciplined M&A to shareholders • Scale go-to-market engine • Extend competi
Slide 19: Why Arrow
Why Arrow As the premier distributor of technology solutions, we guide innovation forward Leading Position in Differentiated Diversified Business Focused Large and Growing Capabilities Driving Model Provides Capital Allocation Markets Profitable Growth Financial Flexibility Strategy • Superior produ
Slide 20: Thank You
Thank You ANOW
Slide 21: Free cash flow
Free cash flow ($ in millions) 2020 2021 2022 2023 2024 Operating Cash Flow $ 1,360 $ 419 $ (33) $ 705 $ 1,130 CAPEX (net) $ (124) $ (61) $ (79) $ (83) $ (87) Free Cash Flow $ 1,236 $ 358 $ (112) $ 622 $ 1,043 21