Tech Data — Q1 FY2015 Earnings Presentation
26 slides from Tech Data's earnings presentation, May 29, 2014
Slide 1: Fiscal Year 2015 Q1 Earnings Supplemental Schedules
Fiscal Year 2015 Q1 Earnings Supplemental Schedules First Quarter Ended April 30, 2014 May 29, 2014 P Rech Data
Slide 2: Company Speakers
Company Speakers Robert M. Dutkowsky Chief Executive Officer Jeffery P. Howells Executive Vice President and Chief Financial Officer The Difference In leben
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 Trailing Twelve Months $8.0 $63 S64 ' Q2FY14 Q3FY14 Americas $26 $26 $2.7 mEurope $37 $38 $53 Reported YIY Growth 6% 6% 1% FX - Adjusted Y/Y Growth 3% 3% 5% $2.5 $43 9% 6% Americas mEurope Reported Y/Y Growth FX - Adjusted Y/Y Growth Quarterly Results 63% QUFY14 $2.3 $3
Slide 5: The Americas Sales
The Americas Sales $ in Billions Trailing Twelve Months Q2FY14. Q3FY14. Q4FY14— QIFY15 Reported Y/Y Growth 9%. 9% 4% 8% Reported Y/Y Growth Quarterly Results 8% P Fech Data’ The Difference In leben
Slide 6: Europe Sales (in USD)
Europe Sales (in USD) $ in Billions Trailing Twelve Months Quarterly Results $4.3 $3.8 Q2FY14 Q3FY14 Q4FY14 QUFY14 QUFY15 Reported Y/Y Growth 4% 4% 9% 10% Reported YIY Growth 12% 10% P RcnDatr The Difference In leben
Slide 7: Europe Sales (in euros)
Europe Sales (in euros) € in Billions Trailing Twelve Months Q2FY14 Q3FY14 Q4FY14 QIFY15 Reported Y/Y Growth 0.4% — -2% 5% 5% Reported Y/Y Growth, Quarterly Results €34 €29 QIFY14 QIFY15 13% 5% The Difference In leben
Slide 8: Gross Profit and Margin
Gross Profit and Margin $in Millions Trailing Twelve Months Quarterly Results 4.99% eB 499% 9 4.98% Q2FY14 = QBFY14.—Q4FY14.—QIFY15 QIFY14 QIFY15 mmmGross Profit $3158 $326.1 $398.0 © $335.3 mmm Gross Profit $322.4 $335.3 —=Gross Margin 4.99% 5.12% 4.99% 4.98% “-Gross Margin 5.24% 4.98% The Differen
Slide 9: SG&A Expenses (non-GAAP)
SG&A Expenses (non-GAAP) QIFY15 $284.2 4.22% $291.6 $ in Millions Trailing Twelve Months Quarterly Results Q2FY14 Q4FY14 QIFY15 QIFY14 mmmNon-GAAP SG&A exp $267.8 $280.7 $284.2 mm Non-GAAP SG&A exp $276.1 ~werNon-GAAP SG&A % 4.23% = 4.12% = 3.52% = 4.22% =o Non-GAAP SG&A % 4.49% GAAP SG&A exp $275.0
Slide 10: Worldwide Operating Income (non-GAAP)
Worldwide Operating Income (non-GAAP) $ in Millions ing Twelve Months” WQ2FYi4— GSFYI4—QAFYIA mmmmNon-GAAP Operating $430 $63.4 1173 SND a ee er GAAP Operating Income $299 $839 SO7T— SIS. GAAP Operating Margin 0.47% 1.00% 1.23% = 0.47% ©) See the GAAP to Non-GAAP reconeiliation in the appendix. 10 H
Slide 11: The Americas Operating Income (non-GAAP)
The Americas Operating Income (non-GAAP) $ in Millions Trailing Twelve Months") Q2FY14 Q3FY14 § QAFY14 TSSINon-GAAP Operating g55q 337 g363. Income Non-GAAP Operating Margin 1.33% 131% 1.35% GAAP Operating $32.0 $53.3 $43.6 GAAP Operating Margin’ 122% 2.07% = 1.62% (9 Before stock compensation expen
Slide 12: Europe Operating Income (non-GAAP)
Europe Operating Income (non-GAAP) $ in Millions ing Twelve Months) 1.57% Q2FY14 Q3FY14 Q4FY14 QIFY15, mmr Non-GAAP mma Non-GAAP ‘Operating Income? S153 $319 $829 «$238 ‘Operating Income = __ Non-GAAP mom __Non-GAAP Operating Margin® 9-41% 0.82% 1.57% 0.56% Operating Margin’ GAAP Operat GAAP Operati
Slide 13: Net Income and EPS (non-GAAP)
Net Income and EPS (non-GAAP) in Millions except EPS Trailing Twelve Months" Quarterly Results” QIFY14 ‘GIFY15, EEEENon-GAAP Net NmEINon-GAAP Net eats 927.9 $39.6 se04 S277 ‘one $251 $277 “so Non-GAAP EPS - “o-Non-GAAP EPS - cada $0.73 $1.04 $210 $0.72 cate $0.66 $0.72 GAAP Net Income $147 so77, $10
Slide 14: Cash Conversion Cycle
Cash Conversion Cycle (60) (64) (47) (83) Q2FY14 Q3FY14 Q4FY14 QIFY15 -* Days of Sales Outstanding —~-®*- Days of Supply Cash Conversion Cycle Days of Purchases Outstanding The Difference In leben
Slide 15: Cash Flow and Balance Sheet Highlights
Cash Flow and Balance Sheet Highlights $ in Millions Cash Flow $258 $113 $126 Q2FY14 = Q3FY14 —Q4FY14 Cash Flow from Operations $95 QtFY1S Debt to Total Capital ben a a mmm Equity, $1,903 ‘$1,993 $2,099 $2,157 [== Debt Tol Gapialatal —irw | are | 108 | — tom P lech Dat
Slide 16: Return On Invested Capital
Return On Invested Capital” Average Cost of Capital - : 9% Q2FY14 Q3FY14 Q4FY14 Q1FY15 ( See reconciliation of GAAP to non-GAAP financial measures and ROIC calculation in appendix. 16 The Difference in Dierbuton
Slide 17: Customer And Product Mix
Customer And Product Mix Customers (% of total sales) Retail/Direct Marketers 28% Company estimates for the 12-months ended April 30, 2014, Products (% of total sales) Vituatization Notebooks cy Tabi Desktop Applications Desktops ‘Operang Systems intrs& Supplies Utlities Sonware ‘Components. Mobile
Slide 18: APPENDIX
APPENDIX The Difference In leben
Slide 19: GAAP to Non-GAAP Reconciliation
GAAP to Non-GAAP Reconciliation SG&A Selling, general and administrative ("SG&A") ‘Three months ended Three months ended April30,2013 July 31,2013. October31, 2013 January 31,2014 J April 30, 2014 Net Sales $ 6,147,757 $ 6,327,476 $ 6,373,564 $ 7,973,107 GAAP SG&A expenses $ 283,360 3 275,018 $ 270,
Slide 20: GAAP to Non-GAAP Reconciliation - Operating Income Q1 FY14
AQ GAAP to Non-GAAP Reconciliation Operating Income - Q1 FY14 (Q1FY14- Three months ended April 30, 2013 Stock ieee Americas’ Europe” converter ee Net Sales $ 2,292,782 $3,854,975 $ 6,147,757 GAAP operating income" S$ m2 $ 1891 $ (3,091) $36,031 Restatement expenses 41,760 1,263 3,023 Acquisition-re
Slide 21: GAAP to Non-GAAP Reconciliation - Operating Income Q2 FY14
AS GAAP to Non-GAAP Reconciliation Operating Income — Q2 FY14 Q2 FY14- Three months ended July 31, 2013 Stock Americas"! Europe" Compensation Consolidated (in thousands) Bparse ‘Net Sales $ 2,624,546 $ 3,702,930 $ 6,327,476 GAAP operating income"? $ 31988 $ 9 § = 2.227) $ 29,859 Restatement expenses
Slide 22: GAAP to Non-GAAP Reconciliation - Operating Income Q3 FY14
GAAP to Non-GAAP Reconciliation Operating Income — Q3 FY14 Q3 FY14 - Three months ended October 31, 2013 Stock qa wounds) ‘Americast” Europe cree Consolidated Net Sales $ 2,571,750 $ 3,801,814 $ 6,373,564 GAAP operating income'” $ $3297 $ md § (1631) $ 63,880 Restatement expenses 3,331 11,648 14979
Slide 23: GAAP to Non-GAAP Reconciliation - Operating Income Q4 FY14
AS GAAP to Non-GAAP Reconciliation Operating Income — Q4 FY14 ‘Q4FY14- Three months ended January 31, 2014 stock (thousands) Remi?) [Eiopet)_Comperesion) copsoldred Net Sales $ 2,699,540 $ 5,273,567 $ 7,973,107 GAAP operating income" S$ 43,627 $ 56,025 $ (19093) $ 97,743 Restatement expenses 5,130 1
Slide 24: GAAP to Non-GAAP Reconciliation - Operating Income Q1 FY15
GAAP to Non-GAAP Reconciliation Operating Income — Q1 FY15 ‘QLFY15- Three months ended April 30, 2014 Stock ieee Americas’ Europe” converter ee Net Sales $ 2,476,271 $ 4,251,880 $ 6,728,151 GAAP operating income" S 26283 $= 7,186 $= (1,973) $31,496 Restatement expenses 2,870 9,366 12,236 Acquisition
Slide 25: GAAP to Non-GAAP Reconciliation - Net Income & EPS
GAAP to Non-GAAP Reconciliation - Net Income & EPS April 30,2014 GMP results $ ‘Acquisition relates amoniation of intangibles Restatement expenses Total non GAAP adjustments NoncAArresults — § Ope Operating 31436 $ 7834 12236 19,670 5166 $ 43,487 5.427 3759 14186 27,653 April 30,2013, Netincome Dilu
Slide 26: Return on Invested Capital
Return on Invested Capital (In thousands) TECD ROIC Formula: Non-GAAP Net Operating Profit After Tax (NOPAT): Non-GAAP Operating Income Non-GAAP effective tax rate Non-GAAP NOPAT Average Invested Capital: Short-term debt (5-qtr average) Long-term debt (5-qtr average) Non-GAAP Shareholders’ Equity (5