Tech Data — Q2 FY2015 Earnings Presentation
27 slides from Tech Data's earnings presentation, Aug 26, 2014
Slide 1: Fiscal Year 2015 Q2 Earnings Supplemental Schedules
Fiscal Year 2015 Q2 Earnings Supplemental Schedules Second Quarter Ended July 31, 2014 August 26, 2014 P lech Dat The Diference In Derbuton
Slide 2: Company Speakers
Company Speakers Robert M. Dutkowsky Chief Executive Officer Jeffery P. Howells Executive Vice President and Chief Financial Officer D ech Date The Difference lo Dhara”
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 Q2FY15 Americas $26 $27 $25 $2.7 Americas mEurope $38 $53 $43. $4.1. Europe Reported YIY Growth 6% 1% 9% 8% Reported Y/Y Growth, FX - Adjusted Y/Y Growth 3% 5% 6% 6% FX - Adjusted Y/Y Growth Six Month Results $12.5 61% Q2FY14 $49 $7.6 5% 4% $
Slide 5: The Americas Sales
The Americas Sales $ in Billions Trailing Twelve Months Q3FY14. Q4FY14 QIFY1S = Q2FY15 Reported Y/Y Growth 9% 4% 8% 4% Six Month Results $5.2 Reported Y/Y Growth 1% 6% PD lech Data The Diference In Derbuton
Slide 6: Europe Sales (in USD)
Europe Sales (in USD) $ in Billions Trailing Twelve Months Six Month Results $8.4 $7.6 Q3FY14 Q4FY14 QIFY15 Q2FY14 Q2FYI5: Reported YIY Growth 4% 9% 10% 1% Reported Y/Y Growth 8% 11% P Rech Dat The Diference In Derbuton
Slide 7: Europe Sales (in euros)
Europe Sales (in euros) € in Billions Trailing Twelve Months Q3FY14 Q4FY14 QIFY15 § Q2FY15 Reported Y/Y Growth 2% 5% 5% 7% Six Month Results €6.4 €58 Q2FY14 Q2FY15 Reported Y/Y Grovith 6% 6% P ecnDatar The Diference In Derbuton
Slide 8: Gross Profit and Margin
Gross Profit and Margin $in Millions Trailing Twelve Months Six Month Results 5.06% 4.98% (O3FY14 O4FY14 QIFY15 Q2FY14 Q2FY15, ‘mmmGross Profit $326.1 $398.0 $335.3 $351.4 mmGross Profit $638.3 $686.7 o=Gross Margin 5.12% 4.99% 4.98% 5.14% -=o=Gross Margin 5.12% 5.06% P ecnDatar 8 The Diference in D
Slide 9: SG&A Expenses (non-GAAP)
SG&A Expenses (non-GAAP) $ in Millions Trailing Twelve Months QSFY14 Q4FY14 QIFY15 Q2FY14 mmmINon-GAAP SG&A exp $262.7 $280.7 $284.2 mmm Non-GAAP SG&A exp $544.0 o=Non-GAAP SG&A % 4.12% 3.52% 4.22% 4.05% “-O=Non-GAAP SG&A % 4.36% GAAP SG8A exp $270.1 $288.0 $2916 $284.5 GAAP SGBA exp $558.4 GAAP SG&
Slide 10: Worldwide Operating Income (non-GAAP)
Worldwide Operating Income (non-GAAP) $ in Millions ing Twelve Months" Six Month Results” 1.47% A 0.92% ‘ONFYIS, ree sed 5117.3 $51.2 8743 RNMINEN-GAAP Operating $043 $125.4 —o=Non-GAAP Operating Mae 090% 147% 070% 4.00% © Non-GAAP Operating 0.76% 092% GAAP Operating Income $639 SO7.T S315. SET. GAA
Slide 11: The Americas Operating Income (non-GAAP)
The Americas Operating Income (non-GAAP) $ in Millions Trailing Twelve Months" Six Month Results) QaFY14 Q2FY15 Q2FY14 Q2FY15 SSNoM-GAAP Operating 555.7 gag $29 $302. SINON-GAAP Operating $040 $685 Income Income’ ~2-Non-GAAP Operating —S=Non-GAAP Operating Margin® 1.31% 1.35% 1.18% 1.44% Margin® 1.3
Slide 12: Europe Operating Income (non-GAAP)
Europe Operating Income (non-GAAP) $ in Millions Trailing Twelve Months) Six Month Results) Q3FY14 Q4FY14 QIFY15 Q2FY15 mmr Non-GAAP mmr Non-GAAP Operating income? $313 $829 $238 $38.9 Operating Income = __ Non-GAAP = __ Non-GAAP Operating Margin® 082% 1.57% 0.86% 0.95% opsee manne 0.47% 0.75% GAAP
Slide 13: Net Income and EPS (non-GAAP)
Net Income and EPS (non-GAAP) in Millions except EPS Trai mmEINON-GAAP Net Income 38 —o-Non-GAAP EPS - diluted S104) GAAP Net Income $37.7 GAAPEPS-diluted $0.99 Weighted Average Shares Outstanding 38,228 Diluted Q4FY14 $80.4 $210 $109.8 $2.87 38,274 QHFY15 $277 $0.72 $13.5 $0.35 38,321 (See the GAAP
Slide 14: Cash Conversion Cycle
Cash Conversion Cycle (64) (47) (53) (49) ary 14 Qary14 QUFY15 Q2FY15 —¢ Days of Sales Outstanding Days of Supply —%—Cash Conversion Cycle Days of Purchases Outstanding PD lech Data The Diference In Derbuton
Slide 15: Cash Flow and Balance Sheet Highlights
Cash Flow and Balance Sheet Highlights $ in Millions Cash Flow Debt to Total Capital $113 $05 $45 $126 Q3FY14 § Q4FY14.«QIFYIS —Q2FY15 avert "Cash Flow from Operations mmm Equity [== Debt to Total Capital ratio
Slide 16: Return On Invested Capital
Return On Invested Capital Benchmark Weighted Average Cost of Capital ~10% 0 Estimated Weighted Average Cost of Capital ~8.3% 2 10% Q3FY14 Q4FY14 Q1FY15 Q2FY15 (1) See reconeiliation of GAAP to non-GAAP financial measures and ROIC caleulation in appendix. (2) Source: Bloomberg, August 22, 2014. P Re
Slide 17: Customer And Product Mix
Customer And Product Mix Customers (% of total sales) Company estimates for the 12-months ended July 31, 2014. Products (% of total sales) Virtualization Notebooks ‘Security Tablets Desktop Applications. Operating Systems Utiities Sonware r Printers & Supplies Components Mobile Phones ‘Accessories I
Slide 18: Appendix
APPENDIX D ech Date
Slide 19: Reconciliation - SG&A
GAAP to Non-GAAP Reconciliation SG&A ‘Three months ended Selling, general and administrative ("SG&A") October 31, 2013 January 31, 2014 (in thousands) Three months ended April 30, 2014 July 31, 2014 Net Sales $6,373,564 $ 7,973,107 $ 6,728,151 $ 6,841,809 GAAP SG&A expenses $ 270,131 $ 288,044 $ 291
Slide 20: Reconciliation - Operating Income Q2 FY15
GAAP to Non-GAAP Reconciliation Operating Income — Q2 FY15 ‘Q2FY15- Three months ended July 31, 2014 Stock Americas” Europe” Compensation [inchousands) Cepence consolidated! Net Sales $ 2,722,191 $ 4,119,618 $ 6,841,809 GAAP operating income" S$ 38854 $ 32,725 $ (3,869) $67,710 Restatement and remed
Slide 21: Reconciliation - Operating Income Q1 FY15
GAAP to Non-GAAP Reconciliation Operating Income — Q1 FY15 ‘QUFY1S- Three months ended April 30, 2014 Stock Americas” Europe” Compensation [inchousands) Cepence consolidated! Net Sales $ 2,476,271 $ 4,251,880 $ 6,728,151 GAAP operating income" $ 26283 $ «7,186 «= $= (1,973) $ 31,496 Restatement and
Slide 22: Reconciliation - Operating Income Q4 FY14
Ad GAAP to Non-GAAP Reconciliation Operating Income — Q4 FY14 (In thousands) Q4FY14- Three months ended January 31, 2014 Net Sales GAAP operating income”) Restatement and remedi ion-related expenses Acquisition-related amortization of intangibles LCD settlement Total non-GAAP operating income adjust
Slide 23: Reconciliation - Operating Income Q3 FY14
AS GAAP to Non-GAAP Reconciliation Operating Income — Q3 FY14 Q3 FY14- Three months ended October 31, 2013 Stock (In thousands) Amertass furcpes) eaere Consolidated| Net Sales $ 2,571,750 $ 3,801,814 $ 6,373,564 GAAP operating income" $ 53,297 $= 12,214 (1,631) $ 63,880 Restatement and remediation-r
Slide 24: Reconciliation - Operating Income 1H FY15
GAAP to Non-GAAP Reconciliation Operating Income — 1H FY15 ‘Six months ended July 31, 2014 Stock Americas” Europe"? Compensation (in thousands) Expense Net Sales $ 5,198,462 _$ 8,371,498 $13,569,960 GAAP operating income" $ 65137 $ 39911 $5,842) $99,206 Restatement and remediation-related expenses 3
Slide 25: Reconciliation - Operating Income 1H FY14
GAAP to Non-GAAP Reconciliation Operating Income — 1H FY14 ‘Six months ended July 31, 2013 Stock Americas" Europe" Compensation (in thousands) Expense Net Sales $ 4,917,328 _$ 7,557,905 $12,475,233 GAAP operating income” $ 59219 § 11,989 $§ (5,318) $ 65,890 Restatement and remediation-related expens
Slide 26: Reconciliation - Net Income & EPS
GAAP to Non-GAAP Reconciliation - Net Income & EPS xcept pershare ata) Operating Income ‘october 31,2013, Netincome Piuted rs Three months end Janwary31, 2014 operating Net income Diluted ce Operating Income ‘april 30,2014 Three months ended July, 2014 Netincome Pied = {intone gaasa) wea) NaS) pa) B
Slide 27: 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 (6-qtr average) Long-term debt (5-atr average) Non-GAAP Shareholders’ Equity (5