Tech Data — Q3 FY2015 Earnings Presentation
27 slides from Tech Data's earnings presentation, Nov 25, 2014
Slide 1: Q3 Fiscal Year 2015 Earnings Supplemental Schedules
Y) Tech Data SS o years = Q3 Fiscal Year 2015 Earnings Supplemental Schedules Third Quarter Ended October 31, 2014 November 25, 2014
Slide 2: Company Speakers
Company Speakers Robert M. Dutkowsky Chief Executive Officer Jeffery P. Howells Executive Vice President and Chief Financial Officer
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 Net Sales
Worldwide Net Sales $ in Billions Trailing Twelve Months Nine-Month Results $8.0 $203 $18.8 se7_ $68 S68 ' ' Q4FY14 QIFY1S Q2FY1S Q3FY15 Q3FY14 QSFY15 Americas $27 $25 $27 $26 Americas $75 $78 mEurope $53 $43 $41 $4.1. Europe $113 $125 Reported Y/Y Growth ™% 9% 8% 6% Reported Y/Y Growth 5% 8% FX- Ad
Slide 5: The Americas Net Sales
The Americas Net Sales $ in Billions Trailing Twelve Months Q4FY14. Q1FY15 Q2FY15 — Q3FY15 Reported YY Growth 4% 8% 4% 3% Reported Y/Y Growth Nine-Month Results 4% $7.8 Q3FY15 5%
Slide 6: Europe Net Sales (in USD)
Europe Net Sales (in USD) $in Billions Trailing Twelve Months Nine-Month Results $12.5 $11.3 Q4FY14 QIFY15 § Q2FY15 Q3FY14 Q3FY15 Reported Y/Y Growth 9% 10% 1% 8% Reported Y/Y Growth 6% 10%
Slide 7: Europe Net Sales (in euros)
Europe Net Sales (in euros) € in Billions Trailing Twelve Months Q4FY14 QIFY1S Q2FY1S Q3FY1S Reported Y/Y Growth 5% 5% T% 13% Nine-Month Results €93 €86 SFY 14 QSFY15 Reported Y/Y Growth 3% 8%
Slide 8: Gross Profit and Margin
Gross Profit and Margin $ in Millions Trailing Twelve Months Q4FY14— QUFY1S = Q2FY15 —Q3FY15 mmmGross Proft $3980 $335.3 $351.4 $335.0 “O-Gross Margin 4.99% 4.98% 5.14% 4.95% mmmGross Profit Gross Margin Nine-Month Results QsFY14 $964.3 5.12% QSFY15 $1,021.7 5.03%
Slide 9: SG&A Expenses (non-GAAP)
SG&A Expenses (non-GAAP) $in Millions Trailing Twelve Months” Q4FY14 QUFY15 lmmINon-GAAP SGBA exp $280.7 $284.2 $277.1 $264.2 ~onNon-GAAPSG8A% 3.52% 4.22% 4.05% + 3.91% GAAP SG8A exp $288.0 $291.6 $2845 $271.2 GAAP SG8A % 3.61% 4.33% 4.16% 4.01% o SGEA excludes of it Nine-Month Results” QsFY14 mmm N
Slide 10: Worldwide Operating Income (non-GAAP)
Worldwide Operating Income (non-GAAP) $ in Millions Trailing Twelve Months" Nine-Month Results” 1.47% CBF Non-GAAP Operat " mone peri §— sits’ S812 $743 $708 MMBNENGAAP Operating $1877 $1063 mo Non-GANP Operating 4.47% 0.76% 1.09% 1.05% Non-GAAP Operating 0.84% 097% larg Maron ‘GAAP Operating Income
Slide 11: The Americas Operating Income (non-GAAP)
The Americas Operating Income (non-GAAP) $in Millions Trailing Twelve Months?) Nine-Month Results) Q4FY14 QIFY15 § Q2FYIS — Q3FY15 QSFY14 Q3FY15 ESEINon-GAAP Operating 5563 g093g30.2 ~—«4ga82.-«« SINOn-GAAP Operating ary S087 Income Income O“Non-GAAP Operating 4 350, 4 4am 1.44% 1.4gy «OT NOM-GAAP O
Slide 12: Europe Operating Income (non-GAAP)
Europe Operating Income (non-GAAP) $ in Millions ing Twelve Months?) Nine-Month Results?) 1.57% QSFY14 QIFYIS Q2FY1S QSFYI5 mmr Non-GAAP mmr Non-GAAP Operating income® $829 $23.8 $38.9 $36.5 ‘Operating Income Non-GAAP = Non-GAAP Operating Margin® 157% 0.56% 0.95% 0.89% Operating Margin® oe 0.70% GAA
Slide 13: Net Income and EPS (non-GAAP)
Net Income and EPS (non-GAAP) in Millions except EPS Trailing Twelve Months" Nine-Month Results” $3.02 $2.42 m7 Q4FY14 QIFY1S = Q2FY15 O3FY14 Q3FY15: ENon-GAAP Net mm Non-GAAP Net incorne $80.4 $27.7 $42.9 $45.3 Income. $92.6 $115.8 =O=Non-GAAP EPS - -=O=Non-GAAP EPS - diluted $2.10 $0.72 $1.12 $1.1
Slide 14: Cash Conversion Cycle
Cash Conversion Cycle a an 40 e225 -------* 37 eee — a 33 31 accnsseneeoeelll eo 24 22 (47) (53) (49) (50) Qaryi4 QtFY15 Q2FY15 Q3FY15 —¢ Days of Sales Outstanding ~-m@ Days of Supply Cash Conversion Cycle Days of Purchases Outstanding
Slide 15: Cash Flow and Balance Sheet Highlights
Cash Flow and Balance Sheet Highlights $ in Millions Cash Flow from Operations Debt to Total Capital $113, 5 $45 -$108 ra |memmEouity Q4FY14 — QIFY1S = Q2FYIS—QSFYI5 [Fo Debts Toa Capa a
Slide 16: Return On Invested Capital
Return On Invested Capital Benchmark Weighted "= Average Cost of Capital ~10% (1) = Estimated Weighted Average Cost of Capital ~8.8% 2 Q4FY14 QIFY15 Q2FY15 Q3FY15 (1) See of GAAP to non-GAAP financial. and ROIC in appendix. (2) Source: Bloomberg, November 6, 2014. WD Tech Data
Slide 17: Customer And Product Mix
Customer And Product Mix Customers (% of total net sales) Retail/Dir Marketers 30% . Company estimates for the 12-months ended October 31, 2014. Products (% of total net sales) virualization Notebooks Securty antes Desitop Applications Desktops ‘Operating Systoms Printers & Supplies titties sorware
Slide 18: Appendix
APPENDIX
Slide 19: Reconciliation
GAAP to Non-GAAP Reconciliation SG&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 (in thousands) Net Sales $__ 7,973,107 $ 6,728,151 $ 6,841,809 $ 6,761,181 GAAP SG&A expenses S$ 283008 $ 291,596 $ 2
Slide 20: Reconciliation - Operating Income Q3 FY15
GAAP to Non-GAAP Reconciliation Operating Income — Q3 FY15 (Q3FY15-Three months ended October 31, 2014 Stock (in thousands) NN ea Consolidated Net Sales $ 2,644,085 $4,117,096 $ 6,761,181 GAAP operating income" $ 42,194 $ 28.407 $ (3,856) $66,745 Restatement and remediation-related expenses 877 4,18
Slide 21: Reconciliation - Operating Income Q2 FY15
GAAP to Non-GAAP Reconciliation Operating Income — Q2 FY15 ‘Q2FY15-Three months ended July 31, 2014 Stock intern Bestest) paopstcavearesten coraataaad Net Sales $ 2,722,191 $ 4,119,618 $ 6,841,809 GAAP operating income" Ls 38,854 $. 32,725 $ (3,869) $. 67,710 Restatement and remediation-related expe
Slide 22: Reconciliation - Operating Income Q1 FY15
GAAP to Non-GAAP Reconciliation Operating Income — Q1 FY15 ‘QULFY15-Three months ended April 30, 2014 Stock intern Bestest) paopstcavearesten coraataaad Net Sales $ 2,476,271 $ 4,251,880 $ 6,728,151 GAAP operating income" S$ 26,288 $ = 7,186 $ (1,973) $ 31,496 Restatement and remediation-related exp
Slide 23: Reconciliation - Operating Income Q4 FY14
GAAP to Non-GAAP Reconciliation Operating Income — Q4 FY14 Q4FY14-Three months ended January 31, 2014 Stock (in thousands) NN ea Consolidated Net Sales $ 2,699,540 $ 5,273,567 $ 7,973,107 GAAP operating income" $43,627 $ 56025 $= (1,909) $97,748 Restatement and remediation-related expenses 5,130 19,
Slide 24: Reconciliation - Operating Income Q3 YTD FY15
GAAP to Non-GAAP Reconciliation Operating Income — Q3 YTD FY15 Nine months ended October 31, 2014 AS Stock (inthousands) ail eel eee | Net Sales $7,842,547 _ $12,488,594 $20,331,141 GAAP operating income" $ 107331 $ 68318 $ (9,698) § 165,951 Restatement and remediation-related expenses 3,937 15,741,
Slide 25: Reconciliation - Operating Income Q3 YTD FY14
GAAP to Non-GAAP Reconciliation Operating Income — Q3 YTD FY14 Nine months ended October 31, 2013 Stock Americas" Europe” Compensation idated Expense Net Sales $7,489,078 _$ 11,359,719 $18,848,797 GAAP operating income" $ 112516 $ 24208 «$= (6,949) $ 129,770 Restatement and remediation-related expen
Slide 26: Reconciliation - Net Income & EPS
GAAP to Non-GAAP Reconciliation - Net Income & EPS Three monthsended ‘Three months ended Janury3,2014 Api30,2014 sy 2018 tober 31,2014 crshreOF878I9S —atincome DIME OFETINE—Neticame PHM —OPEINE Net come Opertng setincome Pisted Income ss EPS: Income es Income Eoctesy Income eps carrets $73 S 0976 §
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 (5-qtr average) Long-term debt (5-qtr average) Non-GAAP Shareholders’ Equity (5