Slide 1: Avnet Second Quarter Fiscal Year 2024 Financial Results
Avnet Second Quarter Fiscal Year 2024 Financial Results January 31, 2024
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: Q2 FY24 Highlights
Q2 FY24 Highlights Regional demand • Sales decreased across all geographies Y/Y, as expected $6.2B Revenue -8% Y/Y End market demand • Transportation and defense were strongest • Industrial moderating 3.9% Adjusted Lead times Operating Margin (1) • Lead times continue to improve but remain higher th
Slide 4: Revenue
Revenue $6.72B Y/Y growth $6.51B $6.55B $6.34B $6.20B Revenue As Constant ($M) reported currency REGIONS Americas $1,588 (6%) (6%) EMEA $2,114 (6%) (10%) Asia $2,503 (10%) (9%) SEGMENTS Electronic Components $5,812 (8%) (9%) Farnell $393 (4%) (6%) Q2 Q3 Q4 Q1 Q2 AVNET $6,205 (8%) (9%) FY23 FY23 FY23
Slide 5: Q2 Income Statement
Q2 Income Statement Adjusted Operating Expense $6.2B Reported revenues as % of Gross Profit (1) 65.7% 61.7% 11.4% Gross margin down 29 bps Y/Y and 43 bps Q/Q $464M Adjusted operating expenses (1) – down 4% Y/Y and 5% Q/Q 65.7% Operating expenses as a percentage of gross profit Q2 Q2 FY23 FY24 5 (1)
Slide 6: Q2 Adjusted Operating Income
(1) Q2 Adjusted Operating Income 4.8% 4.8% 4.5% $315M $313M 4.1% $301M 3.9% Adj Op Y/Y Adj Op Y/Y $262M Income growth Margin growth $242M ($M) SEGMENTS Electronic Components $248 -16% 4.3% -43 bps Farnell $16 -57% 4.0% -504 bps Corporate Expenses ($22) - - - AVNET $242 -19% 3.9% -57 bps Q2 Q3 Q4 Q1
Slide 7: Q2 Non-operating & EPS
(1) Q2 Non-operating & EPS Adjusted Diluted EPS (1) Interest expense up $15M Y/Y and $4M Q/Q – $74M $0.12 Y/Y negative impact on adjusted diluted EPS $2.00 $1.40 24.0% Adjusted effective tax rate (1) $1.40 Adjusted diluted EPS (1) – down 30% Y/Y and 13% Q/Q Q2 Q2 FY23 FY24 7 (1) Non-GAAP measure. Se
Slide 8: Q2 Balance Sheet & Liquidity
Q2 Balance Sheet & Liquidity Inventory – $361M increase Q/Q, primarily to support supply $6.1B chain services Diluted Shares Outstanding 93M 92M 107 WC days 2.6x Gross debt leverage $493M Available committed lines of credit $59M Share repurchases $0.31 Dividend – returned $28M to shareholders Q2 Q2
Slide 9: Outlook for Q3 FY24
Outlook for Q3 FY24 (ending March 30, 2024) Metric Guidance Range Midpoint Sales $5.55B – $5.85B $5.70B Diluted EPS $1.05 – $1.15 $1.10 Factors impacting our Q3 FY24 outlook • Based on current market conditions • Implies sequential sales decline of 6% to 11%, including sales declines for the Western
Slide 10: 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