Tech Data — Q1 FY2016 Earnings Presentation
26 slides from Tech Data's earnings presentation, May 28, 2015
Slide 1: Q1 Fiscal Year 2016 Earnings Supplemental Schedules
Q1 Fiscal Year 2016 Earnings Supplemental Schedules First Quarter Ended April 30, 2015 May 28, 2015 P lech Data monenenoneeer
Slide 2: Company Speakers
Company Speakers Robert M. Dutkowsky Chief Executive Officer Jeffery P. Howells Executive Vice President and Chief Financial Officer ‘Pp ech Dat see
Slide 3: Forward-Looking Statements and Non-GAAP Financial Information
Forward-Looking Statements and Non-GAAP Financial Information uncertainties fur 10-K filed March 26, 2015, looking statement: presentation, developments. This presentation includes financial results prepared in accordance with JAAP” ) In addition to GAAP results, Tech Data management ndin: The non-G
Slide 4: Worldwide Net Sales
Worldwide Net Sales $ in Billions pAmeric mEurope Reported Y/Y Sei 9% FX - Adj. YY Gi 6% Quarterly Results 12% 2% ‘he Difernce I Denburon
Slide 5: The Americas Net Sales
The Americas Net Sales $ in Billions Quarterly Results Q2FYIS Q3FYIS §Q4FYIS = QUFY16 Reported YY Growth 8% 4% 3% 5% 6% ‘Pp ech Dat ‘he Difernce I Denburon
Slide 6: Europe Net Sales (in USD)
Europe Net Sales (in USD) $ in Billions Quarterly Results Reported Y/Y Growth 10% 11% 8% ‘he Difernce I Denburon
Slide 7: Europe Net Sales (in euros)
Europe Net Sales (in euros) € in Billions Quarterly Results Reported Y/Y Growth 5% 7% 13% ‘he Difernce I Denburon
Slide 8: Gross Profit and Margin
Gross Profit and Margin $in Millions Quarterly Results MFYIS — Q2FYIS Q4FY15 mmmaGross Profit ‘sae 3 $951.4 $335.0 $372.3, Gross Margin 4.98% 5.14% 4.95% 07 $291.9 4.96% ‘Pp ech Dat ‘he Difernce I Denburon
Slide 9: SG&A Expenses (non-GAAP)
SG&A Expenses (non-GAAP) $ in Millions Quarterly Results C2FYIS §OSFYIS = Q4FYIS. OI FYI6 $27.4 $264.2 $260.5 $241.7 4.05% 3.91% 3.55% 411% On FY15 mmmINon-GAAP SG&A exp $284.2 —o=Non-GAAP SG&A% 4.22% GAAP SG&A exp $291.6 $284.5 $271.2 $266.9 $247.5 GAAP SG&A % 4.33% 4.16% 4.01% 3.64% 4.20% ‘Pp ech
Slide 10: Worldwide Operating Income (non-GAAP)
Worldwide Operating Income (non-GAAP) $ in Millions Quarterly Results Qt FYIS MEEINNon-GAAP Operating Income $51.2 $743 $708 sity $60.2 “=e=Non-GAAP Operating Margin 0.76% 1.00% 1.05% 1.52% 0.85% GAAP Operating Inc $31.8 $077 $067 s101.8 $819 GAAP Operating Mrgn. 0.47% 0.90% 0.9956 1.30% 1.39% ‘Pp e
Slide 11: The Americas Operating Income (non-GAAP)
The Americas Operating Income (non-GAAP) $ in Millions Quarterly Results Q4FY15 3 FY15 38.2 QUFYIS — Q2FYI5 [==iNon-GAAP Operating Income® $29.3 $39.2 FS $29.3 “O=Non-GAAP Operating Margin® 1.18% 1.44% 144% 1.53% GAAP Operating Income? $263 $38.9 $42.2 $37.8 > 1.06% 143% 1.60% 1.47% GAAP Operating M
Slide 12: Europe Operating Income (non-GAAP)
Europe Operating Income (non-GAAP) $ in Millions Quarterly Results 2) lmmmINon-GAAP Operating Income ‘o=Non-GAAP Operating Margin® GAAP Operating Income’? $72 $327 $28.4 $67.9 $23.4 GAAP Operating Margin? 0.17% 0.79% 0.69% 1.42% 0.66% Before stock compensation expense, p Tech Data’ @ See the GAAP to
Slide 13: Net Income and EPS (non-GAAP)
in Millions ‘except EPS Net Income and EPS (non-GAAP) Quarterly Results EEINon-GAAP Net o=Non-GAAP- os. ‘ahted $1.12 $1.18 81. $0.80 GAAP Net Income $13.5 841.7 $80.7 961.3 GAAP EPS - diluted $0.35 $1.03 $1.09 $2.11 $1.38 Weighted Average Shares Cutstending -Dikited 38,321 38,368 38,433 38,262 37,03
Slide 14: Cash Conversion Cycle
Cash Conversion Cycle (63) (49) (60) (at) Q1FY15 2 FY15 3 FY1S Q4FY15 y pply at FYi6 ‘Pp ech Dat ‘he Difernce I Denburon
Slide 15: Cash Flow and Balance Sheet Highlights
Cash Flow and Balance Sheet Highlights $ in Millions Cash Flow from Operations Debt to Total Capital $177 $95 $103 $45 $108 S404 187 | QUFY1S Q2FY1S QS3FY1S Q4FY15 QIFY16 $2, [—==Debtto Teal Cantal aio] 16%
Slide 16: Return On Invested Capital
Return On Invested Capital Benchmark Weighted = Average Cost of Capital ~10% = Estimated Weighted Average Cost of Capital ~9.3% @ QIFY15 Q2FY15 Q3FY15 Q4FY15 Q1FY16 } Pech Data ‘he Difernce I Denburon
Slide 17: Customer and Product Mix
Products (% of total net sales) pan 8 Supplies Customer And Product Mix Custome (% of total net sales) 47% Retail/Direct ‘Marketers 20% Mobile Phones ‘Accessories Industry st Pro Consumer Electronics % Private Clouds cones ‘Pp ech Dat ee Network-Attached Consumer Davices
Slide 18: Appendix
APPENDIX Ea
Slide 19: GAAP to Non-GAAP Reconciliation
GAAP to Non-GAAP Reconciliation SG&A Three months e1 Selling, general and administrative ("SG&A") nded, January 31, 2015 April 30, 2015 ‘Three months ended April 30, 2014 July 31,2014 October 31, 2014 tin thousands) Net Sales $6,728,151 ¢ 6,841,809 $ 6,761,181 $ $ 291596 $ 284513 § $ GAAP SG&A expen
Slide 20: GAAP to Non-GAAP Reconciliation: Operating Income Q1 FY16
GAAP to Non-GAAP Reconciliation Operating Income — Q1 FY16 QUFYi6- Three months ended April 30, 2015 stock (inthousands) Amen) Europe” Comeneton consolidated NetSales $ 2,339,260 $ 3,547,969 ‘$ 5,887,229 GAAP operatingincome"” 3 ss 5 37 «$a 6 SRE. Restatement and remediation-related expenses 38 580
Slide 21: GAAP to Non-GAAP Reconciliation: Operating Income Q4 FY15
GAAP to Non-GAAP Reconciliation Operating Income — Q4 FY15 Q4FYi5- Three months ended January 34, 2015 Stock (In thousands) aimaliess a Senay Sea Consolidated! 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-relate
Slide 22: GAAP to Non-GAAP Reconciliation: Operating Income Q3 FY15
GAAP to Non-GAAP Reconciliation Operating Income — Q3 FY15 Q3FYI5- Three months ended October 31, 2014 Stock (In thousands) ‘Americas? Europe Compensation Expense NetSales $ 2,644,085 $4,117,096 GAAP operating income"? $ 42194 § 28407 $ (3,856) $ Restatement and remediation-related expenses 877 1187
Slide 23: GAAP to Non-GAAP Reconciliation: Operating Income Q2 FY15
GAAP to Non-GAAP Reconciliation Operating Income — Q2 FY15 (Q2FY15= Three months ended July 31) 2014) Stock ‘cas! “ Manan ‘Americas Europe’ comments coredidsced Net Sales $2,722,109 § 4,119,618 $ 6,841,809 GAAP operating income!” $ 38854 $= 32,725 $ (3,869) $ 67,710 Restatement and remediation-relat
Slide 24: GAAP to Non-GAAP Reconciliation: Operating Income Q1 FY15
GAAP to Non-GAAP Reconciliation Operating Income — Q1 FY15 ‘QUFY15= Three months ended April'30, 2014) St oc ‘cas! “ Manan ‘Americas Europe’ comments coredidsced Net Sales 6,728,151 GAAP operating income" S$ 2628 «$ 7,186 = $ = (1,973) $31,496 Restatement and remediation-related expenses 2,870 9,366
Slide 25: GAAP to Non-GAAP Reconciliation - Net Income & EPS
GAAP to Non-GAAP Reconciliation - Net Income & EPS ree months ended onthsended ‘Rpril30,2014) july, 2018 ‘rtober31, 2014 sauary31,2015 Came eal) Op Operating ig pat Died en come FS z eps income Netincome es] income _Netincome GMP results pr | 938, Restatementané femeciationzelated | 12,236 8,258 0.2
Slide 26: Return on Invested Capital
Return on Invested Capital (In thousands) Operating Profit After Tax TECD ROIC Formula: Tage Invested Capital — Average Cash ‘Twelve months ended April 30,2014 July 34, 2014 October 31, 2014 January 31, 2015 ___ April 30, 2075 Non-GAAP Net Operating Profit After Tax. WOPATE Operating nc $279,828 $30