Slide 1: Avnet Fourth Quarter and Fiscal 2020 Financial Results
Avnet Fourth Quarter and Fiscal 2020 Financial Results August 6, 2020
Slide 2: Safe harbor statement
Safe harbor statement This document contains certain “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. These statements are based on management’s current expectations and are s
Slide 3: Executive Overview
Executive Overview Phil Gallagher Interim Chief Executive Officer
Slide 4: Q4 FY 2020 Earnings
Q4 FY 2020 Earnings • Continuing to navigate COVID-19 operating environment • As expected, macro headwinds & other factors impacted Q4 • Q4 revenues were down sequentially and YoY • Q4 EPS was up sequentially and down YoY • Quarterly results impacted by: • Softer demand, particularly in EMEA • Softe
Slide 5: Electronic components business
Electronic components business • Revenues and operating margins were down sequentially and YoY • Most notable impact in EMEA, with signs of recovery in Asia • Book-to-bill ratio at end of Q4 slightly below parity, but improved in July • Transportation and aerospace segments facing headwinds • Indust
Slide 6: Farnell: Continuing to execute on 5-pronged plan
Farnell: Continuing to execute on 5-pronged plan • Revenues and operating margins down QoQ and YoY, driven by softness in EMEA • New customer acquisition up +13% YoY, largely driven by COVID safety products • Additional suppliers added to Farnell’s global line card 6
Slide 7: Long-term strategic priorities intact despite pandemic
Long-term strategic priorities intact despite pandemic Scale Leverage higher profit ecosystem AMPLIFY businesses EXTEND for growth DRIVE LE Amplify SCALE Extend VERAGE Drive distribution digital continuous opportunities capabilities improvement As the work environment evolves, Avnet continues to ass
Slide 8: Fourth quarter results demonstrate Avnet's resilience
Fourth quarter results demonstrate Avnet’s resilience Prioritizing our employees’ safety while maintaining efficient business operations Supporting our customers and supplier partners in the fight against COVID-19 Adapting our business in response to the pandemic’s new operating environment Focusing
Slide 9: Financial Overview
Financial Overview Tom Liguori Chief Financial Officer
Slide 10: Q4 FY 2020 Financial highlights
Q4 FY 2020 Financial highlights $4.2B Revenues were above consensus estimates $0.64 Adjusted diluted EPS(1) was above consensus $288M Cash flow from operations $0.42 Benefit to EPS from a favorable effective tax rate & impact of CARES Act $0.08 Contribution to EPS from favorable foreign currency and
Slide 11: Key metrics by business segment and region
Key metrics by business segment and region Electronic • Revenues of $3.9B, down 2.7% sequentially and 10.8% YoY Components • Operating margins of 1.5% compared to 2.1% last quarter Americas • Revenues of $1.1B, down 4.5% sequentially and 9.2% YoY EMEA • Revenues of $1.3B, down 11.1% sequentially and
Slide 12: Q4 FY 2020 Balance sheet and cash flow performance
Q4 FY 2020 Balance sheet and cash flow performance $477M Cash balance $1.4B Debt 3.1 Gross debt leverage ratio at end of quarter 2.1 Net debt leverage ratio at end of quarter $38 Net book value / share, up slightly sequentially $29 Tangible book value / share, relatively constant 12
Slide 13: Current liquidity profile
Current liquidity profile Operating cash flow of Used cash to pay down Amended terms of credit $288M in the quarter; $300M of debt to satisfy facility for potential $730M for FY20 a June maturity date COVID headwinds 13
Slide 14: Looking ahead: Near-term financial priorities
Looking ahead: Near-term financial priorities • Prioritizing managing inventories & receivables, generating cash, reducing debt • New plan announced, which will be fully realized by December and includes: Reducing Reducing operating $75M working $100M annually expenses capital by: levels by: 14
Slide 15: Outlook for Q1 FY21
Outlook for Q1 FY21 (ending on October 3, 2020) Metric Guidance Range Midpoint Sales $3.8B - $4.2B $4.0B Non-GAAP Adjusted Diluted EPS(1) $0.00 - $0.16 $0.08 Estimated Annual Tax Rate 17% - 21% 19% 15 (1) Non-GAAP measure. See Non-GAAP Definitions in the Appendix of this presentation.
Slide 16: Outlook for Q1 FY21 (continued)
Outlook for Q1 FY21 (continued) (ending on October 3, 2020) • Demand environment similar to last quarter • First quarter typically impacted by seasonal demands resulting in: • Lower EMEA revenues • Flat revenues across Americas and Asia • Anticipate slight uptick in Farnell revenues in Q1 • Expect T
Slide 17: Q&A Session
Q&A Session
Slide 18: Thank you
Thank you AVNET
Slide 19: 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 ope