Slide 1: First-Quarter 2012 CFO Commentary
Exhibit 99.2 First-Quarter 2012 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 2012 Change Pro Forma Change Sales $4,890 -6% -9% -10% Gross Profit Margin 13.9% +10bps -30bps +20bps Operating Expense/Sales 9.9% +60bps +30bps +70bps Operating Income $195.7 -17% -20% -21% Operating Margin 4.0% -50bps -50b
Slide 3: Global Components
Global Components Sales ($ in millions) ● Sales decreased 14% year over year and declined 3% sequentially o Pro forma and excluding the impact of foreign exchange, sales declined 15% year over year and 3% sequentially ● Gross margin increased 50 basis points year over year primarily due to the impac
Slide 4: Americas Components Region
Americas Components Region Sales ($ in millions) ● Sales decreased 3% year over year and 4% sequentially o Pro forma for acquisitions, sales decreased 6% year over year and 4% on a sequential basis o Sales below normal seasonality on a sequential basis following a very strong fourth quarter ● We con
Slide 5: Europe Components Region
Europe Components Region Sales ($ in millions) ● Sales declined 22% year over year and increased 5% sequentially o Pro forma for acquisitions and excluding FX, sales decreased 21% year over year and increased 7% sequentially o Sales below normal seasonality due to ongoing market softness ● Vertical
Slide 6: Asia Pacific Components Region
Asia Pacific Components Region Sales ($ in millions) ● Sales declined 18% year over year and 9% sequentially o Pro forma for acquisitions, sales decreased 23% year over year and 12% sequentially o Below normal seasonality on a sequential basis, primarily due to soft market conditions, particularly i
Slide 7: Global Enterprise Computing Solutions
Global Enterprise Computing Solutions Sales ($ in millions) ● Sales increased 15% year over year and declined 23% sequentially o Record first quarter revenue o Pro forma for acquisitions and excluding FX, sales increased 14% year over year ● Strong double-digit year-over-year growth in storage (+29%
Slide 8: ECS America
ECS America Sales ($ in millions) ● Sales increased 21% year over year and declined 21% sequentially o Pro forma for acquisitions, sales increased 16% year over year and decreased 21% sequentially o Sales well ahead of normal seasonality ● Robust double-digit year-over-year growth in storage (+39%),
Slide 9: ECS Europe
ECS Europe Sales ($ in millions) ● Sales increased 4% year over year and declined 27% sequentially o Pro forma for acquisitions and excluding FX, sales increased 8% year over year and declined 26% sequentially ● Sales growth in line with normal seasonality on a sequential basis o Strong growth acros
Slide 10: Cash Flow and Balance Sheet Highlights
Cash Flow and Balance Sheet Highlights ● Cash Flow from Operations We generated $250 million in cash from operations in the first quarter, with contributions from both business segments. Over the last twelve months we have generated $550 million in cash flow from operations. ● Working Capital We con
Slide 11: Arrow Electronics Revenue Seasonality
Arrow Electronics Revenue Seasonality* Global Components NAC EMEA ex FX AAP Q1 -2% to +4% +13% to +19% -1% to +5% Q2 -3% to +3% -5% to -11% +4% to +10% Q3 -2% to +4% -5% to +1% +3% to +9% Q4 -4% to +2% -3% to -9% -1% to +7% Global ECS NA EMEA ex FX Q1 -28% to -34% -21% to -27% Q2 +20% to +26% +1% to
Slide 12: Risk Factors
Risk Factors The discussion of the company’s business and operations should be read together with the risk factors contained in Item 1A of its 2011 Annual Report on Form 10-K, filed with the Securities and Exchange Commission, which describe various risks and uncertainties to which the company is or
Slide 13: Earnings Reconciliation
Earnings Reconciliation ($ in thousands, except per share data) Q1 2012 Q4 2011 Q1 2011 Operating income, as Reported $187,449 $232,183 $219,168 Restructuring, integration, and other charges 8,243 14,135 9,607 Settlement of legal matter -- -- 5,875 Operating income, as Adjusted $195,692 $246,318 $23
Slide 14: Q4-11 Loss on Prepayment of Debt: During the fourth quarter of 2011, the company
Q4-11 Loss on Prepayment of Debt: During the fourth quarter of 2011, the company recorded a loss on prepayment of debt of $.9 million ($.5 million net of related taxes). Q4-11 Reversal of Valuation Allowance on International Deferred Tax Assets: During the fourth quarter of 2011, the company recorde