Tech Data — Q4 FY2014 Earnings Presentation
32 slides from Tech Data's earnings presentation, Apr 9, 2014
Slide 1: Fiscal Year 2014 Q4 Earnings Supplemental Schedules
Fiscal Year 2014 Q4 Earnings Supplemental Schedules Fiscal Year Ended January 31, 2014 April 9, 2014 Pet Dater
Slide 2: Company Speakers
Company Speakers Robert M. Dutkowsky Chief Executive Officer Jeffery P. Howells Executive Vice President and Chief Financial Officer D keh Data
Slide 3: Forward-Looking Statements and Non-GAAP Financial Information
Forward-Looking Statements and Non-GAAP Financial Information Forward-Looking Statements — Certain statements made in this presentation are "Forward-Looking Statements” as described in the Private Securities Litigation Reform Act of 1995. These statements are subject to risks and uncertainties furth
Slide 4: Worldwide Sales
Worldwide Sales $in Billions pAmericas mEurope Reported Y/Y Grawth, FX - Adjusted Y/Y Growth Quarterly Results QIFY14 Q2FY14 $23 $3.8 4% 5% $26 © $26 $37 $38 6% 6% 3% 3% $27 $53 1% 5% Americas Europe Reported Y/Y Growth FX - Adjusted Y/Y Growth Fiscal Year Results $26.8 $254 FY14 $98 $10.2 $155 $166
Slide 5: The Americas Sales
The Americas Sales $ in Billions Quarterly Results $26 $2.7 | QIFY14 Q2FY14 CBFYI4— QAFY14 Reported Y/Y Growth -7% 9% 9% 4% Reported Y/Y Growth Fiscal Year Results -B% 4% D keh Data
Slide 6: Europe Sales (in USD)
Europe Sales (in USD) $in Billions Quarterly Results Fiscal Year Results $166 $15.5 $53 $38 $937 ‘8 QIFY14 QIFY14 QBFYI4 Q4FY14 FYI3 FY14 Reported Y/Y Growth 12% 4% 4% 9% Reported Y/Y Growth % 1% Prada
Slide 7: Europe Sales (in euros)
Europe Sales (in euros) € in Billions Quarterly Results Fiscal Year Results €120 bal €3.9 €29 €28 €28 QIFY14 Q2FYI4 QSFYI4 QAFYI4 FYI3 FY 14 Reported YN Growth 13% 0.4% == -2% 5% Reported Y/Y Growth 9% A% Prada
Slide 8: Gross Profit and Margin
Gross Profit and Margin $ in Millions 5.24% Qurvi4a mmmGross Profit $322.4 —=Gross Margin 6.24% Quarterly Results QoFY 14 $315.8 4.99% asFY14 $326.1 5.12% Qarv14 $398.0 499% mem Gross Profit <= Gross Margin Fiscal Year Results FY13 $1,303.1 5.14% 5.08% . FY14 $1,362.3 5.08% D keh Data
Slide 9: SG&A Expenses (non-GAAP)
SG&A Expenses (non-GAAP) $in Millions Quarterly Results Fiscal Year Results” QIFY14 Q2FY14 Q3FY14 QaFY14 FY13 FY14 MENONGAAP SGRA exp $276.1 $267.8 $262.7 $2807 IEENON-GAAP SGBA exp $992.8 $1,087.4 om NOMGAAP SG8A% 4.49% 4.23% 4.12% 3.52% = NOn-GAAP SG&A % 3.92% 4.05% GAAP SG&A exp $2834 $275.0 $270
Slide 10: Worldwide Operating Income (non-GAAP)
Worldwide Operating Income (non-GAAP) $ in Millions Quarterly Results” Fiscal Year Results” GUFYI4— Q2FYI6 G3FY14 FYI3 FYt4 imma Non-GAAP Operating (MENon-GAAP Operating AA OP 63 $480 $834 $1173 KAPiO $3103 $2749 == Non-GAAP Operating = Non-GAAP Operating Margin 0.75% 0.76% 0.99% 1.47% ‘Margin 122%
Slide 11: The Americas Operating Income (non-GAAP)
The Americas Operating Income (non-GAAP) $in Millions Quarterly Results Fiscal Year Results” QIFYi4 QIFYi4. QaFYI4. GaFYi4 FYIS FYI4 [==ANon-GAAP Operating [==INon-GAAP Operating Income® $29.0 $35.0 $337 $36.3 Income® $150.1 $134.0 <O=Non-GAAP Operating » —O=Non-GAAP Operating Sean! 1.26% 133% 131%
Slide 12: Europe Operating Income (non-GAAP)
Europe Operating Income (non-GAAP) $in Millions Quarterly Results QIFY14 Q2FYI4 QSFY14 QAFYI4 mmm NOMGAAP |, $204 «$183 «$813 $829 — 2 Operating Incorne® Non-GAAP Operating Marge 058% 041% 082% — 1.57% GAAP Operating neue? $19 $01 $122 $56.0 GAAP Operating Margin® 0.31% 0.00% 0.32% 1.06% (0 Before s
Slide 13: Net Income and EPS (non-GAAP)
Net Income and EPS (non-GAAP) in Millions except EPS Quarterly Results” QIFYI4— Q2FYI4 GBF Y14 me Non-GAAP Net ‘can $25.1 9279 $396 woe Non-GAAP EPS - ‘diluted $0.66 $073 $104 GAAP Net Income $17.8 S147 9877 GAAPEPS-diluted $0.47 $0.38 $0.99 Weighted Average Shares Outstanding Bilal sa Siac (See the
Slide 14: Cash Conversion Cycle
Cash Conversion Cycle 44 arts pe 40 ae meus wer eee eee PK, 37 34 34 ~e oo 24 21 ro (50) (50) (54) (47) —— > QiFY14 Q2FY 14 Q3FY 14 Qa4FY14 = Days Sales Outstanding ~- © Days of Supply Cash Conversion Cycle Days Payables Outstanding D keh Data
Slide 15: Cash Flow and Balance Sheet Highlights
Cash Flow and Balance Sheet Highlights $ in Millions Cash Flow QIFY14 Q2FY14.—QBFYI4.— GMFYI4 ‘Cumulative Cash Flow from Operations "Cash Flow fram Operations 18 QIEY14 asryid | aaryis Debt to Total Capital Sadat $389 $400 9398 mE Euity 51,888 51,993 92,098 [Se Debt to Total Capital ratio| 17% 17% 1
Slide 16: Return On Invested Capital
Return On Invested Capital” Benchmark Weighted Average Cost of Capital ~10% QUFY14 Q2FY14 Q3FY14 QA4FY14 (0 See reconciliation of GAAP to non-GAAP financial measures and ROIC calculation in appendix. Prada 8 ‘ho Darmee bs Pheer
Slide 17: Customer and Product Mix
Customer and Product Mix Customers” % of total sales RetailDirect Marketers 28% Corporate Resellers 21% Company estimates for the 12-months ended January 31, 2044 Products % of total sales Broadline 46% Data Center 23% Consumer Electron
Slide 18: APPENDIX
APPENDIX D keh Data
Slide 19: SG&A
GAAP to Non-GAAP Reconciliation SG&A g : ae Three months ended Fiscal year ended Selling, general and administrative ("SG&A") - - - —— ‘April 30, 2013 July3i,2013 October 31,2013 _January31, 2014 | January3i, 2014 (in thousands) Net Sales $ 6,147,757 6,327,476 $ 6,373,564 7,973,107 $ 26,821,904 GAAP
Slide 20: Operating Income - Q1 FY14
AQ GAAP to Non-GAAP Reconciliation Operating Income - Q1 FY14 QL FY14 -Three months ended April 30, 2013 ‘Stock Net Sales $ 2,292,782 $3,854,975 $ 6,147,757 GAAP operating income!” $ 27231 $ 11991 $ (3091) $ 36,031 Total non-GAAP operating income adjustments 1,760 8,482 10,242 Non-GAAP operating inc
Slide 21: Operating Income — Q2 FY14
Ag GAAP to Non-GAAP Reconciliation Operating Income — Q2 FY14 ‘Q2FY14- Three months ended July 31, 2013 (in thousands) Expense Net Sales $ 2,624,545 § 3,702,930 $ 6,327,476 GAAP operating income! $ 31988 S$ 98 $2227) $29,859 Restatement expenses 3,006 7,987 10,963 ‘Acquisition-related amortization o
Slide 22: Operating Income — Q3 FY14
GAAP to Non-GAAP Reconciliation Operating Income — Q3 FY14 Q3 FY14- Three months ended October 31, 20: Stock intnuean ‘Americas! Europel" Se Consolidated Net Sales $ 2,571,750 § 3,801,814 $ 6,373,564 GAAP operating income! $ 53297 § 12214 § (1531) $63,880 Restatement expenses 3331 11,648 14978 ‘Acqu
Slide 23: Operating Income — Q4 FY14
GAAP to Non-GAAP Reconciliation Operating Income — Q4 FY14 Q4 FYL4 - Three months ended January 31, 2014 Stock ((n thousands) Gu Tn) Oe oe Consolidated Net sales $ 2,699,580 $ 5,273,567 $ 7,973.07 GAAP operatingincame"" $ 43,627 $56,025 = $ «= (1,909) $97,748 Restatement expenses 5,130 19,696 24,826
Slide 24: Operating Income — FY14
AS GAAP to Non-GAAP Reconciliation Operating Income — FY14 FY14 - Twelve months ended January 31, 2014 Stock Ginnie Americas" Europe” Compensation Consolidated Expense Net sales $ 10,189,618 $16,633,286 $ 26,821,904 GAAP operating income" $ 156143 «$= 80,228 «= $= (B,858) $207,513 Restatement expens
Slide 25: Operating Income — Q1 FY13
AT GAAP to Non-GAAP Reconciliation Operating Income — Q1 FY13 QL FY13 -Three months ended April 3 Stock Compensation Expense Consolidated $ 5,910,063 $ (2,941) § 82,458 3,345, (In thous ands) ce ae Net sales $ 2,457,488 $3,452,575 GAAP operatingincame"" $49,778 $35,621 Acquisition-related amortizati
Slide 26: Operating Income — Q2 FY13
AS GAAP to Non-GAAP Reconciliation Operating Income — Q2 FY13 Q2 F¥13 -Three months ended July 31, 2012 Stock Compensation Expense Consolidated $ 5,968,419 $ (3,666) § 60,311 3,183 es) ‘Americas Europe” Net sales $ 2,407,168 $3,561,251 GAAP operatingincame"" $ 29,868 «©$ == 34,109 Acquisition-relate
Slide 27: Operating Income — Q3 FY13
Ag GAAP to Non-GAAP Reconciliation Operating Income — Q3 FY13 Q3 FY13 - Three months ended October 31, 2012 Stock Compensation Expense Consolidated $ 6,037,475, $ (3545) § 63,595 3,181 (ln thousands) Americas!) euenet: Net sales $ 2,368,283 $ 3,669,232 GAAP operatingincame"" $ 32624 $ 34516 Acquisit
Slide 28: Operating Income — Q4 FY13
Ato GAAP to Non-GAAP Reconciliation Operating Income — Q4 FY13 (Q4 FY13 - Three months ended January 31, 2013 Stock (In thousands) ences beer ee Consolidated Net sales $ 2,590,616 $ 4,951,756 $ 7,442,372 GAAP operating income" $ 37,785 «$ «73,035 «$= (3,464) § (57,356 Acquisition-related amortizatio
Slide 29: Operating Income — FY13
GAAP to Non-GAAP Reconciliation Operating Income — FY13 FY13 - Twelve months ended January 31, 2013 Stock 7 Americas" Europe” Compensation Consolidated (in thousands) rena Net sales $ 9,923,515 $ 15,534,814 $25,350,329 GAAP operatingincame"" $ 150,055 $ 127,281 $ (13,616) $ ~~ 263,720 Acquisition-re
Slide 30: Net Income & EPS
GAAP to Non-GAAP Reconciliation - Net Income & EPS Three monthsendes ‘gril 30,2083 suly34, 2083 ‘October 34,2013 sanuary31)2014 geappertire Operating yerincame DUE! OPETRIRE —Netincame DUNS OPETRNE—arincame DULAES PETRIE Narincome Died Income Bs Income 5 Income Ps, Income 8S GAAP results S 35031 § 1
Slide 31: Net Income & EPS
GAAP to Non-GAAP Reconciliation Net Income & EPS AA3 Twelve months ended January 31, 2014 Operating Income Net income 2013 Operating Income Net income GAAP results $ 227,513 $ 179,932 471 $ 263,720 $ 176,255 4.50 LOD settlement (35,511) (22,017) (0.58) : : : Acquisition-related amortization of 29,14
Slide 32: Return on Invested Capital
Return on Invested Capital (In thousands) TECD ROIC Formula: Non-GAAP Net Operating Profit After Tax (NOPAT): Non-GAAP Operating Incame Non-GAAP effective tax rate Non-GAAP NOPAT Average Invested Capital: Short-term debt (5-atr average) Long-term debt (5-qtr average) Non-GAAP Shareholders’ Equity (5