Arrow Electronics, Inc. · NYSE:ARW
Arrow Electronics — Raymond James 2023 Institutional Investors Conference
26 slides from Arrow Electronics's conference presentation, Mar 7, 2023
Slide 1: Arrow Electronics Investor Presentation
Arrow Electronics Investor Presentation March 2023
Slide 2: Risk factors and forward-looking statements
Risk factors Information Relating to Forward-Looking Statements The discussion of the company’s This presentation may include “forward-looking” statements, as the term is defined under the federal business and operations should be read securities laws, including but not limited to statements regardi
Slide 3: Certain Non-GAAP Financial Information
Certain Non-GAAP Financial Information In addition to disclosing financial results that are Management believes that providing this additional determined in accordance with accounting principles information is useful to the reader to better assess and generally accepted in the United States (“GAAP”)
Slide 4: Agenda
Agenda 1. Company Introduction & Background 2. FY 2022 Financials 3. Q4 2022 Financials 4. Capital Allocation 5. Q1 2023 Guide 6. Questions 4
Slide 5: We believe in helping the benefits of technology reach as many people as possible
We believe in helping the benefits of technology reach as many people as possible 5 5
Slide 6: Our noble purpose
Our noble purpose: We believe that new technologies will make life not only different, but better. 6 6
Slide 7: Our history
Our history Arrow Radio Incorporated as Arrow goes public Listed on 50+ acquisitions Arrow expands Arrow moves Arrow tops category opens on Radio Arrow Electronics NYSE (ARW) and expansion computer products HQ from in FORTUNE’s Row in New into Europe business beyond New York to “World's Most York Ci
Slide 8: Arrow Electronics guides innovation forward
Arrow Electronics guides innovation forward for over 210,000 leading technology manufacturers and service providers. With 2022 sales of $37 billion, Arrow develops technology solutions that improve business and daily life. 8
Slide 9: Strength in numbers
Strength in numbers CUSTOMERS FORTUNE 500 RANK (2022) 210,000+ 104 NYSE TICKER SYMBOL EMPLOYEES ARW 22,000+ FOUNDED 1935 2022 GLOBAL SALES (USD) $37.12B No single customer accounted for more than 2% of consolidated sales. GLOBAL HEADQUARTERS Centennial, CO, USA 9
Slide 10: Arrow Electronics, Inc.
Arrow Electronics, Inc. A global technology provider of products, services, and solutions Serving channel ecosystems of value-added Serving original equipment manufacturers, resellers, system integrators, service providers, and embedded solution providers. telcos, ISVs, developers, and marketplaces.
Slide 11: Our services accelerate product commercialization
Our services accelerate product commercialization Engineering Supply Chain Integration Managed SaaS Design & Validation Supply Chain Design Connectivity Financial Services SiliconExpert data services Hardware New Product Invoice & Payment Warranty Services Professional Services Introduction Manageme
Slide 12: Industries We Serve
Industries We Serve Aerospace/Defense Health Care/Medical Industrial Consumer Electronics Security Supply Chain Automotive/Transportation Data Center Cloud Business Intelligence Design Engineering 12
Slide 13: We specialize in managing complexity
We specialize in managing complexity 90+ Countries 43 Distribution & Value Added Centers 245 Sales Facilities 13
Slide 14: ESG Overview
ESG Overview ESG Framework Environmental Social Governance Arrow is committed to reducing Arrow’s steadfast focus on growing Arrow’s Board and the Corporate greenhouse gas emissions in the the diversity of our employees is Governance Committee have direct fight against global climate change. matched
Slide 15: Our network in numbers: 2022
Our network in numbers: 2022 CONSOLIDATED SALES GROSS PROFIT AMERICAS COMPONENTS $ 37.12B $ 4.84B 9.59B $ 23% 15% EMEA COMPONENTS 8% 7.63B OPERATING INCOME $ 2.07B 22% GLOBAL COMPONENTS $ 28.79B $1.43 33% ASIA PACIFIC COMPONENTS $ NET INCOME $ 11.57B 6% AMERICAS ENTERPRISE COMPUTING SOLUTIONS 9% B 2
Slide 16: Consolidated Overview: Full Year 2022
Consolidated Overview Record full-year sales, gross profit, Full Year 2022 operating margins, and earnings per share Consolidated full-year sales Gross margin increased 80 basis Y/Y CHANGE IN increased 7.7% year over year points year over year CONSTANT P&L Highlights* 2022 Y/Y CHANGE CURRENCY Sales
Slide 17: 2022 Sales by Geographic Region
2022 Sales by Geographic Region ASIA PACIFIC AMERICAS $ 11.57B 14.44B $ EMEA $ 11.12B Defined as Europe, the Middle East and Africa 17
Slide 18: Consolidated Overview: Fourth Quarter 2022
Consolidated Overview Fourth Quarter 2022 Record fourth-quarter sales, gross profit, operating income and EPS on a diluted Y/Y CHANGE IN CONSTANT basis P&L Highlights* Q4 2022 Y/Y CHANGE CURRENCY Q/Q CHANGE Consolidated sales were Consolidated gross profit Sales 9,323 3% 8% 1% $9.32 billion margin w
Slide 19: Global Components
Components Global Strong quarterly sales and operating income Operating Income ($ in millions) Fourth-quarter sales Lead times were Bookings are below increased 2.2% year relatively stable parity in all regions over year. Sales compared to the increased 6.1% year prior quarter and over year on a rem
Slide 20: Enterprise Computing Solutions
Enterprise Computing Solutions Strong Enterprise Computing Solutions Global operating income Operating Income ($ in millions) Fourth-quarter sales Operating income Return on working increased 6.8% year was flat year over capital remains over year year and increased favorable 4% on a constant Sales i
Slide 21: Outlook: First Quarter 2023
Outlook: First Quarter 2023 Guidance – as presented in Q4 2022 earnings release We are expecting the average USD-to-Euro exchange rate for the first quarter of 2023 to be $1.07 to €1 compared to $1.12 to €1 in the first-quarter of 2022. We estimate changes in foreign currencies to reduce year-over-y
Slide 22: Thank You
Thank You Investor Relations P: +1 303 566-7456 E: investor@arrow.com
Slide 23: First-Quarter 2023 GAAP to non-GAAP Outlook Reconciliation
First-Quarter 2023 GAAP to non-GAAP Outlook Reconciliation ($ in billions, except per share data) NON-GAAP SALES RECONCILIATION Quarter Ended Quarter Ended December 31, April 1, 2023 April 2, 2022 % Change April 1, 2023 2022 % Change Global components sales, GAAP $6.55 - 6.85 $ 7.20 (9)% - (5)% $6.5
Slide 24: Earnings Reconciliation
Earnings Reconciliation ($ in thousands, except per share data) Three months ended December 31, 2022 REPORTED INTANGIBLE RESTRUCTURING GAAP AMORTIZATION & INTEGRATION NON-GAAP (1) Other includes (gain) loss on investments, MEASURE EXPENSE CHARGES OTHER(1) MEASURE net. Operating income $ 522,596 $ 8,
Slide 25: Return on Working Capital Reconciliation
Return on Working Capital Reconciliation ($ in thousands) QUARTER ENDED YEAR ENDED (1) The year ended balance is an average balance based on the addition of the account December 31, 2022 December 31, 2021 December 31, 2022 December 31, 2021 balance at the end of the five most recently- ended quarter
Slide 26: Return on Invested Capital Reconciliation
Return on Invested Capital Reconciliation ($ in thousands) QUARTER ENDED YEAR ENDED December 31, December 31, December 31, December 31, (1) Operating income, as reported, and non- 2022 2021 2022 2021 GAAP operating income is adjusted for Numerator: (unaudited) (unaudited) (unaudited) (unaudited) non
Arrow Electronics — Raymond James 2023 Institutional Investors Conference on 6ix