Slide 1: Earnings Presentation Fourth Quarter & Full Year 2024
Arrow Electronics Earnings Presentation Fourth Quarter & Full Year 2024 February 6, 2025
Slide 2: Safe harbor
Safe harbor This presentation includes “forward-looking” statements, as the term is defined under the federal securities laws, including but not limited to statements regarding: Arrow’s future financial performance, including its outlook on financial results for the first quarter of fiscal 2025 such
Slide 3: Sean Kerins, President and CEO
Sean Kerins President and CEO 3
Slide 4: FY 2024 highlights
FY 2024 highlights CONSOLIDATED SALES OPERATING MARGIN1 DILUTED EARNINGS PER SHARE1 $ 27.9 Billion 3.6 Percent $ 10.56 • Global Components navigated a challenging year while taking steps to position for opportunities ahead • Extended supplier linecard • Expanded customer base • Committed to supply c
Slide 5: Q4 2024 highlights
Q4 2024 highlights CONSOLIDATED SALES OPERATING MARGIN1 DILUTED EARNINGS PER SHARE1 $ 7.3 Billion 3.8 Percent $ 2.97 • Revenue and earnings per share exceeded high end of guidance range • Additional Q4 2024 financial information: • $274 million operating income1 • $158 million net income1 • $326 mil
Slide 6: Global components
Global components • All three regions performed in-line or better than typical seasonal patterns: • APAC – Transportation stability and Industrial growth offset by soft Consumer, Compute, and Communications • Americas – Industrial growth and stable Aerospace & Defense and Medical Device offset by so
Slide 7: Enterprise computing solutions
Enterprise computing solutions • Year-over-year growth in billings, gross profit, and operating income • Results reflect alignment to high growth demand trends and improved execution in North America • Strength in hybrid-cloud, infrastructure software, cybersecurity, and AI data center 7
Slide 8: Closing thoughts
Closing thoughts • Long-term outlooks for Arrow and semiconductor industry create confidence • Committed to our strategic priorities which create differentiation • Growth opportunities ahead • World-class Arrow team 8
Slide 9: Raj Agrawal, Senior Vice President and CFO
Raj Agrawal Senior Vice President and CFO 9
Slide 10: Q4 2024 revenue ($7.3B consolidated)
Q4 2024 revenue ($7.3B consolidated) Global Components Enterprise Computing Solutions Asia Pacific 1.6 $ B 10% 1.2 $ 1% 1.9 B $ Americas B 10% $4.8 B $ 2.5 B Americas 15% 12% EMEA EMEA $1.3 B 22% 1.3 $ B 25% Revenue figures are GAAP and reflect year-on-year performance changes Amounts may not calcul
Slide 11: Q4 2024 financial metrics
Q4 2024 financial metrics Sales & Non-GAAP Gross Margin1 Non-GAAP Operating Expenses1 626 7.8 7.3 6.8 568 580 12.6% 11.7% 8.0% 8.3% 8.0% 11.5% Q4 '23 Q3 '24 Q4 '24 Q4 '23 Q3 '24 Q4 '24 Sales ($B) Gross Margin (%) Opex ($M) Opex (%) Non-GAAP Operating Income1 Non-GAAP Diluted EPS1 364 3.98 2.97 274 2
Slide 12: Working capital
Working capital Net Working Capital ($B) • Non-GAAP Return on Working Capital 12.2 11.7 13.0 (ROWC)1 was 16.4% in the fourth quarter, 7.4 6.9 Accounts down 340 basis points year on year. The 6.7 Receivable 5.2 4.5 4.7 decrease in ROWC related primarily to lower Inventory operating income in Global C
Slide 13: Q4 2024 balance sheet and cash highlights
Q4 2024 balance sheet and cash highlights Operating Cashflow was $326M Gross Debt was $3.1B Repurchased $50M in shares 13
Slide 14: Q1 2025 guidance
Q1 2025 guidance Consolidated Sales $5.98 billion to $6.58 billion Global components $4.35 billion to $4.75 billion Global ECS $1.63 billion to $1.83 billion Diluted Earnings Per Share 1 $0.98 to $1.18 Non-GAAP Diluted Earnings Per Share 1 $1.30 to $1.50 Interest and other expense, net $60 million t
Slide 15: Thank You Q&A
Thank You Q&A ANOW
Slide 16: Additional information and financial tables
Additional information and financial tables 16
Slide 17: Consolidated fourth-quarter overview
Consolidated fourth-quarter overview ($ in millions, except per share data) Q4 2024 Q4 2023 Y/Y CHANGE Q4 2023 IN Y/Y CHANGE IN Q3 2024 Y/YCHANGE Q/Q CHANGE IN Q4 2023 Q4 2024 Q4 2023 CONSTANT Impact of FX CONSTANT CONSTANT CURRENCY CURRENCY Constant Currency(1) P&L Highlights* CURRENCY Sales $7,283
Slide 18: Revenue history
Revenue history ($ in millions, may reflect rounding) YoY YoY QoQ QoQ Q2’23 Q4’23 Q3 Q1’24 ’23 Q4’23 Q2’24 Q3’24 Q1’24 Q4’24 Q2’24 change change change change Global Components Total $5,636 $5,191 $5,032 $4,946 $4,814 -15% -3% $6,683 $6,245 $5,636 $5,191 $5,032 -25% -3% Americas 1,785 1,597 1,573 1,
Slide 19: Operating income history
Operating income history Global Components ($M) Enterprise Computing Solutions ($M) $160 $161 $145 $146 $281 $288 $243 $226 $103 $104 $210 $218 $189 $193 $173 $76 $77 $71 $73 $117 Q4-'23 Q1-'24 Q2-'24 Q3-'24 Q4-'24 Q4-'23 Q1-'24 Q2-'24* Q3-'24 Q4-'24 GAAP Non-GAAP GAAP Non-GAAP * Q2-’24 ECS operatin
Slide 20: Certain Non-GAAP financial information
Certain Non-GAAP financial information In addition to disclosing financial results that are determined in accordance with accounting principles generally accepted in the United States (“GAAP”), the company also provides certain non-GAAP financial information relating to sales, gross profit, operatin
Slide 21: First-quarter 2025 GAAP to non-GAAP outlook reconciliation
First-quarter 2025 GAAP to non-GAAP outlook reconciliation ($ in billions, except per share data) NON-GAAP SALES RECONCILIATION Quarter Ended Quarter Ended 29-Mar-25 30-Mar-24 % Change 29-Mar-25 31-Dec-24 % Change Global components sales, GAAP $ 4.35 - 4.75 $ 5.19 (16%) - (8%) $ 4.35 - 4.75 $ 4.81 (
Slide 22: Non-GAAP fourth-quarter sales reconciliation
Non-GAAP fourth-quarter sales reconciliation ($ in thousands) Quarter Ended 31-Dec-24 31-Dec-23 % Change Consolidated sales, as reported $ 7,282,877 $ 7,849,157 (7.2)% Impact of changes in foreign currencies — (27,280) Consolidated sales, constant currency $ 7,282,877 $ 7,821,877 (6.9)% Global compo
Slide 23: Quarterly GAAP to non-GAAP reconciliation
Quarterly GAAP to non-GAAP reconciliation ($ in thousands, except per share data) Three months ended December 31, 2024 Reported GAAP Intangible Restructuring & (1) Includes write downs (reversals) of measure Amortization Expense Integration charges Impact of Wind Down (1) Other (2) Non-GAAP measure
Slide 24: Gross profit and operating expense reconciliation
Gross profit and operating expense reconciliation ($ in thousands) Quarter Ended ($ in thousands) 12/31/2023 3/30/2024 6/29/2024 9/28/2024 12/31/2024 Consolidated Gross Profit $ 989,550 $ 857,826 $ 846,444 $ 784,828 $ 803,310 Impact of wind down to inventory - 10,459 1,627 (1,857) 50,344 Consolidate
Slide 25: Return on working capital reconciliation
Return on working capital reconciliation ($ in thousands) Quarter Ended December 31, 2024 December 31, 2023 Numerator: Consolidated operating income, as reported $ 195,103 $ 316,679 x4 x4 Annualized consolidated operating income $ 780,412 $ 1,266,716 Non-GAAP consolidated operating income $ 273,724
Slide 26: Return on invested capital reconciliation
Return on invested capital reconciliation ($ in thousands) Quarter Ended December 31, 2024 December 31, 2023 (1) Operating income, as reported, and non- GAAP operating income is adjusted for Numerator: noncontrolling interest and equity in earnings Consolidated operating income, as reported $ 195,10
Slide 27: Non-GAAP segment reconciliation
Non-GAAP segment reconciliation ($ in thousands) Quarter Ended Quarter Ended ($ in thousands) 12/31/2023 3/30/2024 6/29/2024 9/28/2024 12/31/2024 9/30/2023 12/31/2023 3/30/2024 6/29/2024 9/28/2024 Global Globalcomponents componentsoperating income, operating as reported income, as reported $ $ 379,0
Slide 28: Non-GAAP segment reconciliation (continued)
Non-GAAP segment reconciliation (continued) ($ in thousands) Quarter Ended ($ in thousands) 12/31/2023 12/31/2024 Global components gross profit, as reported $ 702,412 $ 497,324 Impact of wind down to inventory - 50,344 Global components non-GAAP gross profit $ 702,412 $ 547,668 Global components gr