Slide 1: Avnet Third Quarter Fiscal Year 2024 Financial Results
Avnet Third Quarter Fiscal Year 2024 Financial Results May 1, 2024
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: Q3 FY24 Highlights
Q3 FY24 Highlights Regional demand • Sales decreased across all geographies Y/Y, as expected $5.7B Revenue -13% Y/Y End market demand • Transportation was strongest • Relative strength in defense and data center 3.4% 3.6% Operating Adjusted Margin Operating Lead times Margin (1) • Lead times general
Slide 4: Revenue
Revenue Y/Y growth $6.51B $6.55B $6.34B $6.20B Revenue As Constant $5.65B ($M) reported currency REGIONS Americas $1,404 (18%) (18%) EMEA $2,053 (14%) (15%) Asia $2,197 (9%) (7%) SEGMENTS Electronic Components $5,246 (13%) (13%) Farnell $408 (10%) (11%) Q3 Q4 Q1 Q2 Q3 AVNET $5,654 (13%) (13%) FY23 F
Slide 5: Q3 Income Statement
Q3 Income Statement SG&A Expenses $5.7B Sales as % of Gross Profit 69.8% 61.4% 11.8% Gross margin down 62 bps Y/Y and up 46 bps Q/Q $467M SG&A expenses – down 6% Y/Y and up 1% Q/Q 69.8% SG&A expenses as a percentage of gross profit Q3 Q3 FY23 FY24 5
Slide 6: Q3 Adjusted Operating Income
(1) Q3 Adjusted Operating Income 4.8% 4.8% $315M $313M 4.1% 3.9% Adj Op Y/Y Adj Op Y/Y 3.6% $262M Income growth Margin growth (1) (1) $242M ($M) $203M SEGMENTS Electronic Components $217 -29% 4.1% -91 bps Farnell $16 -60% 4.0% -499 bps Corporate Expenses ($30) - - - AVNET $203 -36% 3.6% -124 bps Q3
Slide 7: Q3 Non-operating & Adjusted Diluted EPS
(1) Q3 Non-operating & Adjusted Diluted EPS Adjusted Diluted EPS (1) $73M Interest expense up $2M Y/Y and down $1M Q/Q $2.00 24.0% Adjusted effective tax rate(1) $1.10 $1.10 Adjusted diluted EPS (1) – down 45% Y/Y and 21% Q/Q Q3 Q3 FY23 FY24 7 (1) Non-GAAP measure. See Appendices for Non-GAAP Defini
Slide 8: Q3 Balance Sheet & Liquidity
Q3 Balance Sheet & Liquidity $5.8B Inventory – $364M decrease Q/Q Diluted Shares Outstanding 92M 91M 115 WC days 2.5x Gross debt leverage $890M Available committed lines of credit $0.31 Dividend – returned $28M to shareholders $232M Remaining share repurchase authorization Q3 Q3 FY23 FY24 8
Slide 9: Outlook for Q4 FY24
Outlook for Q4 FY24 (ending June 29, 2024) Metric Guidance Range Midpoint Sales $5.20B – $5.50B $5.35B Adjusted Diluted EPS(1) $0.90 – $1.00 $0.95 Factors impacting our Q4 FY24 outlook • Based on current market conditions • Implies sequential sales decline of 3% to 8%, including below seasonal sales
Slide 10: Non-GAAP Definitions
Non-GAAP Definitions In addition to disclosing financial results that are determined in accordance with generally accepted accounting principles in the United States (“GAAP”), the Company also discloses certain non-GAAP financial information including (i) adjusted operating income, (ii) adjusted oth
Slide 11: Appendix: Reconciliation of GAAP to Non-GAAP Measures
Appendix: Reconciliation of GAAP to Non-GAAP Measures Fiscal Quarters Ended Year to Date March 30, December 30, September 30, 2024* 2024* 2023 2023 ($ in thousands, except per share amounts) GAAP operating income $ 680,177 $ 190,151 $ 236,257 $ 253,769 Restructuring, integration and other expenses 2
Slide 12: Appendix: Reconciliation of GAAP to Non-GAAP Measures
Appendix: Reconciliation of GAAP to Non-GAAP Measures Quarters Ended Fiscal Year July 1, April 1, December 31, October 1, 2023* 2023* 2023 2022 2022 ($ in thousands, except per share amounts) GAAP operating income $ 1,186,800 $ 283,662 $ 313,629 $ 298,973 $ 290,537 Restructuring, integration and oth
Slide 13: Appendix: Reconciliation of GAAP to Non-GAAP Measures
Appendix: Reconciliation of GAAP to Non-GAAP Measures Low End of High End of Guidance Range Guidance Range Adjusted diluted earnings per share guidance $ 0.90 $ 1.00 Restructuring, integration and other expenses (net of tax) (0.10) (0.15) GAAP diluted earnings per share guidance $ 0.80 $ 0.85 13