Slide 1: First-Quarter 2013 CFO Commentary
Exhibit 99.2 First-Quarter 2013 CFO Commentary As reflected in our earnings release, there are a number of items that impact the comparability of our results with those in the trailing quarter and the first quarter of last year. Any discussion of our results will exclude these items to give you a be
Slide 2: Consolidated Overview – First Quarter
Consolidated Overview – First Quarter Y/Y Y/Y Change Q/Q P&L Highlights* Q1 2013 Change Adjusted for Acquisitions Change Sales $4,850 -1% -3% -10% Gross Profit Margin 13.2% -70bps -80bps +10bps Operating Expense/Sales 10.0% +10bps Flat +60bps Operating Income $159.2 -19% -20% -19% Operating Margin 3
Slide 3: Consolidated Overview – First Quarter (continued)
· Operating income as a percentage of sales was 3.3% o Decreased 70 basis points year over year as reported and adjusted for the impact of acquisitions o Decreased 30 basis points sequentially · Effective tax rate for the quarter was 27.0% · Net income was $96.0 million o Decreased 20% compared with
Slide 4: Global Components
Global Components Sales ($ in millions) ● Sales decreased 5% year over year and were flat sequentially o Adjusted for the impact of acquisitions and foreign currency, sales in global components were down 6% year over year Gross margin declined 60 basis points year over year due to ongoing pricing pr
Slide 5: Americas Components Region
Americas Components Region Sales ($ in millions) · Sales decreased 5% year over year and 4% sequentially o Adjusted for the impact of acquisitions, sales decreased 7% year over year o Sales below normal seasonality on a sequential basis § Broad based market weakness as customers remain cautious · Li
Slide 6: Europe Components Region
Europe Components Region Sales ($ in millions) · Sales declined 16% year over year and increased 15% sequentially o Adjusted for the impact of foreign currency, sales declined 17% year over year and increased 13% sequentially o Sales in our core business were at the low end of normal seasonality · A
Slide 7: Asia Pacific Components Region
Asia Pacific Components Region Sales ($ in millions) · Sales increased 11% year over year and declined 5% sequentially o Adjusted for the impact of acquisitions, sales increased 11% year over year o Sales in our core Asia business below normal seasonality § Core Asia sales increased 14% year over ye
Slide 8: Global Enterprise Computing Solutions
Global Enterprise Computing Solutions Sales ($ in millions) · Sales increased 8% year over year and declined 25% sequentially o Record level revenue for any first quarter o Adjusted for the impact of acquisitions and foreign currency, sales increased 2% year over year § 13th consecutive quarter of y
Slide 9: ECS America
ECS America Sales ($ in millions) · Sales increased 3% year over year and declined 21% sequentially o Sales in our core value-added distribution business well above normal seasonality § Very strong close to the March quarter · Robust double-digit year-over-year growth in software (+16%), storage (+1
Slide 10: ECS Europe
ECS Europe Sales ($ in millions) · Sales increased 17% year over year and declined 32% sequentially o Adjusted for the impact of acquisitions and foreign currency, sales declined 2% year over year § Organic sales growth below normal seasonality on a sequential basis following very strong fourth quar
Slide 11: Cash Flow and Balance Sheet Highlights
Cash Flow and Balance Sheet Highlights · Cash Flow from Operations Cash used for operating activities in the first quarter was $179 million. There was a combination of factors which impacted our performance here. We expect cash flow to be positive in the second quarter and we expect to achieve our s
Slide 12: Arrow Electronics Revenue Seasonality
Arrow Electronics Revenue Seasonality* Global NAC EMEA ex FX AAP Components Q1 -2% to +4% +13% to +19% -1% to +5% Q2 -3% to +3% -5% to -11% +4% to +10% Q3 -2% to +4% -5% to +1% +3% to +9% Q4 -4% to +2% -3% to -9% -1% to -7% Global ECS NA EMEA ex FX Q1 -28% to -34% -21% to -27% Q2 +20% to +26% +1% to
Slide 13: Risk Factors; Certain Non-GAAP Financial Information
Risk Factors The discussion of the company’s business and operations should be read together with the risk factors contained in Item 1A of its 2012 Annual Report on Form 10-K, filed with the Securities and Exchange Commission, which describe various risks and uncertainties to which the company is or
Slide 14: Earnings Reconciliation
Earnings Reconciliation ($ in thousands, except per share data) Q1 2013 Q4 2012 Q1 2012 Operating income, as Reported $ 137,552 $ 264,168 $ 187,449 Restructuring, integration, and other charges 21,610 11,285 8,243 Settlement of legal matter -- (79,158) -- Operating income, as Adjusted $ 159,162 $ 19