Slide 1: Avnet Fourth Quarter and Fiscal Year 2021 Financial Results
Avnet Fourth Quarter and Fiscal Year 2021 Financial Results August 11, 2021
Slide 2: Safe Harbor Statement
Safe Harbor Statement This document contains 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, with respect to the financial condition, results of operations and business of the
Slide 3: Executive Overview
Executive Overview Phil Gallagher Chief Executive Officer
Slide 4: Fiscal Year 2021 Highlights
Fiscal Year 2021 Highlights • Strengthened our foundation with our industry-leading semiconductor and IP&E supplier partners • Supported our customers and suppliers by helping decrease risk in their supply chains • Invested in sales and engineering personnel enabling differentiated design solutions
Slide 5: Record Quarterly Revenues
Record Quarterly Revenues Total Revenues ($M) $4,917 $5,227 • Achieved revenues of $5.2B, driven by record sales for $4,723 $4,668 Electronic Components and Farnell $4,160 • Excluding TI, sales grew 31.7% in constant currency year over year • Expect continued revenue and margin growth, driven by: •
Slide 6: Strong Relationships Driving Continued Results for Electronic Components
Strong Relationships Driving Continued Results for Electronic Components • Record revenues of $4.8B were up YoY and sequentially: • Deep relationships driving positive results YoY EC Revenue Growth ($B) across all regions • Strong performance in EMEA and Asia $4.8 • Continued operating improvement i
Slide 7: Farnell's Value Proposition is Resonating
Farnell’s Value Proposition is Resonating • Record revenues up sequentially and YoY at $441 million YoY Farnell Revenue Growth ($M) • Increased operating margins to 8.3%, tracking towards goal of 10% $441.4 • ~51% of revenues attributed to e-commerce sales $292.1 in the quarter • Added 20,530 SKUs d
Slide 8: Financial Overview
Financial Overview Tom Liguori Chief Financial Officer
Slide 9: Revenues & EPS Exceeded Guidance Range
Revenues & EPS Exceeded Guidance Range Total Revenues ($M) Adjusted Diluted EPS (1) $4,917 $5,227 $1.12 $4,723 $4,668 $4,160 $0.74 $0.64 $0.48 $0.36 Q4 Q1 Q2 Q3 Q4 Q4 Q1 Q2 Q3 Q4 FY20 FY21* FY21 FY21 FY21 FY20 FY21* FY21 FY21 FY21 25.7% YoY Increase 75% YoY Increase (1) Non-GAAP measure. See Non-GAA
Slide 10: Improved Execution and Efficiency Driving Operating Margin Expansion
Improved Execution and Efficiency Driving Operating Margin Expansion 4th consecutive quarter of adjusted operating Controlled operating expenses, improving the ratio margin improvement (1) of adjusted op ex to gross profit dollars YoY (1) 2.9% 91.0% 2.3% 76.5% 1.7% 1.4% 1.0% Q4 Q1 Q2 Q3 Q4 Q4 Q4 FY2
Slide 11: Q4 FY21 Income Statement Snapshot
Q4 FY21 Income Statement Snapshot Gross margin; up QoQ and up across Gross Margin Improvement 12.3% all regions 12.3% Adjusted op ex as a percentage of gross 11.4% 11.6% 76.5% profit continues to improve (1) 10.9% 11.0% Adjusted operating expenses (1); up by $493M 7.7% over last quarter $23.3M Inter
Slide 12: Strong Momentum Across Business Segments
Strong Momentum Across Business Segments • Revenues of $4.8B, up 23.7% YoY and • Revenues of $441M, up 11.4% Electronic 5.9% sequentially sequentially and 51.1% YoY Components • Operating margins of 3.1%, improved 47 • Operating margins of 8.3%, up 224 bps Farnell bps from last quarter sequentially
Slide 13: Disciplined Working Capital Management
Disciplined Working Capital Management driving strong liquidity position and maintaining sustainable debt levels Improved Working Capital Days $200M Cash balance while increasing inventory spend by $475M in Q4 FY21 $1.7B Available lines of credit 86 $1.2B Debt 79 75 72 70 $1.0B Net debt 2.2x Gross d
Slide 14: Outlook for Q1 FY 2022
Outlook for Q1 FY 2022 (ending on October 2, 2021) Metric Guidance Range Midpoint Sales $5.1B – $5.4B $5.25B Non-GAAP Adjusted Diluted EPS (1) $1.02 – $1.12 $1.07 Assumes ongoing strong demand, continuing supply constraints and Factors impacting associated electronic components price inflation, and
Slide 15: Looking Ahead
Looking Ahead Durable changes made to our business position Avnet to deliver sustainable operating margins in the 3 3.5% range by the latter half of fiscal year 2022 Avnet Adjusted Operating Margin (1) 3.0-3.5% 2.9% 2.3% 1.7% 1.4% 1.0% Q4 Q1 Q2 Q3 Q4 H2 FY20 FY21 FY21 FY21 FY21 FY22 (1) Non-GAAP mea
Slide 16: Avnet Well-Positioned Going into Fiscal Year 2022
Avnet Well-Positioned Going into Fiscal Year 2022 • Avnet is delivering strong revenue growth and steady margin improvement • We remain well-positioned across all operating regions and are continuing to capitalize on the strong demand environment to capture additional market opportunities • In the f
Slide 17: Q&A Session
/ Q&A Session
Slide 18: Thank You
/ Thank You
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