Tech Data — Q4 FY2015 Earnings Presentation
30 slides from Tech Data's earnings presentation, Mar 19, 2015
Slide 1: Q4 Fiscal Year 2015 Earnings Supplemental Schedules
Q4 Fiscal Year 2015 Earnings Supplemental Schedules Fourth Quarter Ended January 31, 2015 March 19, 2015 tech Date monnenonoeer
Slide 2: Company Speakers
Company Speakers Robert M. Dutkowsky Chief Executive Officer Jeffery P. Howells Executive Vice President and Chief Financial Officer ‘P Ren Datz ca
Slide 3: Forward-Looking Statements and Non-GAAP Financial Information
Forward-Looking Statements and Non-GAAP Financial Information neha eee ioee uncertaintie: it in ti 10-K filed April 9, 2014 Relations website at looking statement: presenta developments. This presentation includes financial results prepared in accordance with AAP”), In addition to GAAP results, Tech
Slide 4: Worldwide Net Sales
Worldwide Net Sales $ in Billions Quarterly Results Fiscal Year Results $26.8 827.7 FY14 FY15 Americas $27 $25 $27 $26 $26 Americas $10.2 $10.4 Europe $63 $43 $41 $44 $48 mEurope Reported YY Growth 7% 9% 8% += 6% 8% Reported Y/Y Growth 6% 3% FX-Adj. Y/Y Growlh 5% 6% 6% 9% 0% FX- Adj. YAY Growth 4% 5
Slide 5: The Americas Net Sales
The Americas Net Sales $ in Billions Quarterly Results. a4 at 2 3 4 FY14. FYIS FY1S -FYIS—FYIS Reported YY Growth 4% 8% 4% 3% = 5% Reported Y/Y Growth Fiscal Year Results $10.2 $10.4 ‘P Ren Datz he Diference fn Denburon
Slide 6: Europe Net Sales (in USD)
Europe Net Sales (in USD) $ in Billions Quarterly Results Fiscal Year Results $17.3 $16.6 a at Qt FYI4 FYIS FYI5 FYIS FY15 FY14 FY15, Reported YY Growth 9% 10% 11% 8% = 9% Reported Y/Y Growth 7% 4% Prada he Diference fn Denburon
Slide 7: Europe Net Sales (in euros)
Europe Net Sales (in euros) € in Billions Quarterly Results Fiscal Year Results €13.2 €125 2 a3 FYIS-FYI5 FY14 FYI5 Reported YY Growth 5% 5% += 7% «= 13% «= 1% Reported Y/Y Growth 4% 6% D lech Data The Diference In DlarBution™
Slide 8: Gross Profit and Margin
Gross Profit and Margin $in Millions Quarterly Results Fiscal Year Results Q a2 eB FY14 iS FYIS —FY1S FY FY14 FY15 EEIGross Profit $398.0 $335.3 $351.4 $235.0 $3723 mEIGross Profit $1,362.3 $1,394.0 —=Gross Margin 4.99% 4.98% 5.14% 4.95% 5.07% —o=Gross Margin 5.08% 5.04% D lech Data 8 The Difference
Slide 9: SG&A Expenses (non-GAAP)
SG&A Expenses (non-GAAP) $ in Millions Quarterly Results Fiscal Year Results 4 FY14 mmmNon-GAAP SG&A exp sa 7 @ a a3 FYIS FYI5 FYIS FY15 $284.2 $277.1 $264.2 $2605 422% 4.05% 3.91% 3.55% FY14 FY15 mmmiNon-GAAP SG&A exp $1,087.4 $1,086.0 -=omNon-GAAP SG&A % 1 -=ONon-GAAP SG&A % 4.05% 3.92% GAAP SG&A
Slide 10: Worldwide Operating Income (non-GAAP)
$ in Millions Quarterly Results “ oe a Ais SNon can Operating izzy ggi2 sas st08 sith “eNom ARP Opera ary oom 100 1008 1828 GmPOperinginc S077 S015 S677 8087 GAAP Opeaing Mion, 123% 047% OOH $101.9 0.99% 1.30% lmmestNon-GAAP Operating Income Non-GAAP Operating Margin GAAP Operating Income GAAP Opera
Slide 11: The Americas Operating Income (non-GAAP)
The Americas Operating Income (non-GAAP) $ in Millions Quarterly Results Fiscal Year Results 2) at - ) FYIS FYIS FYISFY1S FY14 FY1S [==INon-GAAP Operating [==INon-GAAP Operating hone? $36.3 $293 $39.2 $382 $39.3 incomes? $134.0 $146.0 —2-Non-GAAP Operating —2=Non-GAAP Operating Margin 135% 118% 1.44
Slide 12: Europe Operating Income (non-GAAP)
Europe Operating Income (non-GAAP) $ in Millions Quarterly Results FYI. Non-GAAP mI Non-GAAP Moperatingincome? $829 $238 $389 $265 $76.4 Gia sina noone” Non-GAAP Non-GAAP Operating Margin® 187% 0.86% 0.95% 0.89% 1.60% ae 0.90% GAAP Operating GAAP Operatin ‘Income? $56.0 $7.2 $32.7 $284 $67.9 roometa
Slide 13: Net Income and EPS (non-GAAP)
Net Income and EPS (non-GAAP) in Millions ‘except EPS mmEINon-GAAP Net Income —o-Non-GAAP EPS - diluted GAAP Net Income GAAP EPS - diluted ‘Weighted Aver shares Outstarcing- Diluted $109.8 $2.87 38,274 $0.72 813.5 $0.35 38,321 $42.9 S112 $39.3 $1.08 38,368 Quarterly Results “ $453 $118 841.7 $1.09 3
Slide 14: Cash Conversion Cycle
Cash Conversion Cycle (47) (63) (49) (50) (a) —— ——— O4FY14 QIFY15 Q2FY15 O3FY15 O4FY15, y pply Days of F ‘P Ren Datz 14 The Difference to
Slide 15: Cash Flow and Balance Sheet Highlights
Cash Flow and Balance Sheet Highlights $ in Millions Cash Flow from Operations $177 $108 QIFY15 «= Q2FY15OBFYIS AFIS Debt to Total Capital
Slide 16: Share Repurchase Activity
Share Repurchase Activity A t Number of A mount Shares erage Repurchased Repurchased Price Per ($ millions) (gainers) FY’15 Q4 Share Repurchases $53.0 0.897 $59.10 FY’16 YTD Share Repurchases $47.0 0.802 $58.62 Cumulative Repurchases To Date Since FY 2006 $1,200.0 28.4 $42.31 Prada The Diference In
Slide 17: Return On Invested Capital
Return On Invested Capital Benchmark Weighted = Average Cost of Capital ~10% = Estimated Weighted Average Cost of Capital ~B.9% @ Q1FY15 Q2FY15 Q3FY15 Q4FY15 (2) Source: Bloomberg, February 27, 2015. ‘P Tech Data’ The Diference In DlarBution™
Slide 18: Customer And Product Mix
Customer And Product Mix Products (% of total net sales) Customers (% of total net sales) ietwatzation Notebooks Security Tablets Desktop Applications Operating Systems Uities SoRware Desktops Printers & Supplies Components Retail/Direct Marketers Mobile Phones ‘Accessories Data Center 22% Consumer
Slide 19: Appendix
APPENDIX bare
Slide 20: GAAP to Non-GAAP Reconciliation
GAAP to Non-GAAP Reconciliation G&A Selling, general and administrative ("SG&A") ‘Three months ended Three months ended January 31,2014 April 30, 2014 July 31,2014 October 31, 2014 [| January 31, 2015, (in thousands) Sales $7,973,107 $ 6,728,151 $ 6,841,809 $ 6,761,181 $ 7,339,491 GAAP SGRA expenses
Slide 21: GAAP to Non-GAAP Reconciliation: Operating Income Q4 FY15
GAAP to Non-GAAP Reconciliation Operating Income — Q4 FY15 Q4FY15- Three months ended January 31, 2015 Stock (thousands) Ames) lEwvpet)_(COREERSHON| consodced Net Sales $ 2,563,662 $ 4,775,829 $ 7,339,491 GAAP operating income!” $ 37,776 «$ 67,878 $ (3,970) $ 101,684 Restatement and remediation-rela
Slide 22: GAAP to Non-GAAP Reconciliation: Operating Income Q3 FY15
GAAP to Non-GAAP Reconciliation Operating Income — Q3 FY15 Q3FY15- Three months ended October 31, 2014 Stock (In thousands) ee ae Consolidated} Net Sales $ 2,644,085 $4,117,096 5 761,181. GAAP operating income"? $ 42194 § «28,407 $ (3,886) $66,745 Restatement and remediation-related expenses 877 118
Slide 23: GAAP to Non-GAAP Reconciliation: Operating Income Q2 FY15
GAAP to Non-GAAP Reconciliation Operating Income — Q2 FY15 (Q2/FY45- Three months ended J st Americas” Europe” (In thousands) ales mete $2,722,101 § 4,119,618 GAAP operating income" $ 38,8540 § 32,725, Restatement and remediation-related expenses 190 5,188 Value added tax assessment 7 (6,229) Acquis
Slide 24: GAAP to Non-GAAP Reconciliation: Operating Income Q1 FY15
GAAP to Non-GAAP Reconciliation Operating Income — Q1 FY15 ‘QUFYi5= Three months ended April 30, 2014) St oc ‘cas! a renee ‘Americas Europe" éoineanes Eorailided Net Sales $ 6,728,151 GAAP operating income" S$ 26283 $7,186 = $1,973) $31,496 Restatement and remediation-related expenses 2,870 9,366 12
Slide 25: GAAP to Non-GAAP Reconciliation: Operating Income Q4 FY14
GAAP to Non-GAAP Reconciliation Operating Income — Q4 FY14 Q4FY14- Three months ended January 31, 2014 Stock laeeeae) ‘Americas Europe” Compensation Expense NetSales $ 2,699,540 $ 5,273,567 $ 7,973,107 GAAP operating income" $ 43,627 § $6025 «$= (4,908) $97,743 Restatement and remediation-related ex
Slide 26: GAAP to Non-GAAP Reconciliation: Operating Income FY15
GAAP to Non-GAAP Reconciliation Operating Income — FY15 ‘Twelve months ended January 31, 2015 Stoc Europe” Americas"? (in thousands) Net Sales $10,406,209 GAAP operating income” $145,107 Restatement and remediation-related expenses 3,973 (6,059) 1,330 Acquisition-related amortization of intangibles
Slide 27: GAAP to Non-GAAP Reconciliation: Operating Income FY14
GAAP to Non-GAAP Reconciliation Operating Income — FY14 ‘Twelve months ended January 31, 20: Stod Americas Europe” Compensation siaateq! Expense Net Sales $10,188,618 _$ 16,633,286 $26,821,904 GAAP operating income” $ 156143 $ 80,228 $= (8.858) $227,513 Restatement and remediation-related expenses 1
Slide 28: GAAP to Non-GAAP Reconciliation - Net Income & EPS
GAAP to Non-GAAP Reconciliation - Net Income & EPS july, 2014 October31, 2014 sanuary34, 2014) 1h Heel Geis PETE Wet Income r 302014 Bed Gis Bed Gaxciic Netincome 7 Net Income ee GMP results SOT SII -S 287 SOLA -$ AIAG) S038 SODTIOSUOME —SLOSSE6743, S61.700 Restatementané femeciationzelated 24826 -—
Slide 29: GAAP to Non-GAAP Reconciliation - Net Income & EPS
GAAP to Non-GAAP Reconciliation - Net Income & EPS Twelve months end anusry34 2014) Janwary31, 2015 Netincome Pisted Operating Ps Income Operating Income srt net Income GMP result 227513 § 179,932 $ 471 § 267,635 $ 175,172 Restatement ane remesiation elated s37o1 39038102 22,083 16,517 expenses Leb
Slide 30: Return on Invested Capital
Return on Invested Capital (In thousands) TECD ROIC Formula: Non-GAAP Net Operating Profit After Tax (NOPAT): None GAAP Operating Income Non-GAAt ive tax rate None nr NOPA T rage Invested Capital: Shor -term debt (5-qtr averag Loner -term debt (5-atr average) n-GAAP Share eho Hers Equity (5-qtr aver