Slide 1: Avnet Fourth Quarter and Fiscal Year 2023 Financial Results
Avnet Fourth Quarter and Fiscal Year 2023 Financial Results August 16, 2023
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: Q4 FY23 Overview
Q4 FY23 Overview Revenue • Exceeded high end of sales and adjusted EPS guidance • Sales growth led by EMEA and the Americas $6.6B Revenue +3% Y/Y Operating Income in constant currency • Sixth consecutive quarter of operating margin greater than 4% • Adjusted operating income grew three times faster
Slide 4: Market Environment
Market Environment Avnet’s role as a distributor remains critical Regional demand • Strength in EMEA and Americas; Asia slowed as expected End market demand • Strength: industrial, transportation and defense / aerospace Lead times • Average lead times continue to come down; remain extended for high-
Slide 5: FY 2023 Accomplishments
FY 2023 Accomplishments • Achieved record EPS • Achieved record demand creation and gross profit • Operating income grew 2X greater than revenues • Attained adjusted operating margin goals • Gained market share Strength and flexibility to execute our growth strategies Strong and balanced line card F
Slide 6: Revenue
Revenue $6.75B $6.72B +2.9% Regions $6.37B $6.51B $6.55B in constant currency • EMEA record $2.45B sales • Y/Y in constant currency: EMEA +17%, Americas +7%, Asia -11% Electronic Components • Y/Y +3%, +3% in constant currency • Q/Q +1% in constant currency Farnell • Y/Y +1%, +1% in constant currency
Slide 7: Q4 Income Statement
Q4 Income Statement Improving operational efficiency Adjusted Operating Expense $6.6B Reported revenues as % of Gross Profit (1) 63.1% -132 bps 61.8% 12.5% Gross margin up 25 bps Y/Y and flat Q/Q $505M Adjusted operating expenses (1) – up 3% Y/Y as reported 62% Operating expenses as a percentage of
Slide 8: Q4 Adjusted Operating Income
Q4 Adjusted Operating Income (1) 4.8% 4.8% +26 bps • Operating income grew 2.7x faster than 4.5% 4.4% 4.5% revenues Y/Y in constant currency $301M $315M $313M +9% $288M $293M • 10th consecutive quarter operating income growth exceeded sales growth more than 2x • Electronic Components – $310M up 21%
Slide 9: Q4 Non-operating & EPS
Q4 Non-operating & EPS (1) Interest expense up $45M Y/Y and up $3M Q/Q due to higher debt Adjusted Diluted EPS (1) $75M and borrowing rates – $0.39 Y/Y negative impact on adjusted diluted EPS $2.07 -0.5% $2.06 21.6% Adjusted effective tax rate (1) $2.06 Adjusted diluted EPS (1) – flat Y/Y and up 3%
Slide 10: Q4 Balance Sheet & Liquidity
Q4 Balance Sheet & Liquidity Inventory – a $111M increase Q/Q, primarily driven by $5.5B increases at Farnell Diluted Shares Outstanding 98M -5.9% 93M 97 WC days 2.2x Gross debt leverage $844M Available committed lines of credit $235M Cash flow from operations $0.29 Dividend – returned $27M to share
Slide 11: Outlook for Q1 FY 2024
Outlook for Q1 FY 2024 (ending Sept. 30, 2023) Metric Guidance Range Midpoint Sales $6.15B – $6.45B $6.30B Adjusted Diluted EPS (1) $1.45 – $1.55 $1.50 Factors impacting our Q1 FY 2024 outlook • Based on current market conditions • Implies sequential sales decline of ~4%, below traditional seasonali
Slide 12: 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
Slide 13: For more information, please visit https://ir.avnet.com/
For more information, please visit https://ir.avnet.com/ 13