Tech Data — Q3 FY2016 Earnings Presentation
26 slides from Tech Data's earnings presentation, Nov 24, 2015
Slide 1: Q3 Fiscal Year 2016 Financial Highlights
Q3 Fiscal Year 2016 Financial Highlights For the quarter ended October 31, 2015 November 24, 2015 DTechData,
Slide 2: Non-GAAP Financial Information
This document includes financial resuts prepared in accordance with general accepted accounting principles (GAAP”). In addition to GAAP results, Tech Data management believes thatthe presentation of non-GAAP financial measures is uselu to investors because it provides investors with a more ‘complete
Slide 3: Net sales by region
il BAS GAAS GIANG G2AIG a3 FIG mimericas Europe | ReporedY/¥Gowh 6% = BKK KH Adjusted YN Growth” «8% IKK (" Agjusted forthe impact ofchangesin foreign currencies; beginning in 2 FYI6, adjustedsalesgrowth excludessales generatedin chile, Peruand Uruguay dueto the Company’sexitfrom those countries. i
Slide 4: The Americas
The Americas so 28 27 928 TT U0 (3 F715 Qs FAs QL FYI6 G2 AVIS a3 FYI6 | Reportedy/Vgrowth 3% «SK OKO 3K Adjustedy/ygrowth”” 3% 4% KOSH (adjusted forthe impactof changesin foreign curencies:beginningnQFYA6, adjustedsalesgrowth cexcludessales generated chile, Peru and Uruguay dueto the Company’sexit
Slide 5: Europe
GBPS Q4FYIS QLFYIG Q2FYI6 G3 FYI6 Reportedv/v growth 8% 9K HTH YWCC gown” = KOKO cc:eonstanteutrency | 5 DTechData
Slide 6: Gross Profit and Gross Margin
$3723 | $3350 $3253 $3148 ORAS atras airs a2m6 a3FrI6 | mmGross Profit —~GrossMargin
Slide 7: Worldwide SG&A Expenses (Non-GAAP)
GA \) Worldwide OS ¥ sy ‘SG&A Expenses (Non-GAAP) ‘Sia mati $2682 $3505 2417 cous 2139 ‘OS Fis QeFras OL Fé a2FrI6 as FrI6 i mon GAAP SBA Op Non-GAAP SGA % GMAPScEAep — $271.2 $2669 SUT $2500 $2696 | GMPSCEAS 4.01% 3.61% 4.20% 3.80% 2.80% (Non-GAAP SG8s exudes acqustoneatedamorzatonctitangies SeeGAA
Slide 8: Operating Income
siit7 $502 = Nanas? Opestns Meee Gwopeunene 667 Stans sts ‘Sethe GAAP to Non-GAAP reconctaton nthe append. DTechData $812 $709 i062 ona I
Slide 9: Operating Income (Non-GAAP) Americas
Operating Income (Non-sAai BAS QsFIS GLAMIS G2AIS O3F6 mon GAAP Operating Nom GAAP Operating Margin® GAAP Operating Income” $42.2 $37.8 $624 $608 $389 GAAP Operating Marg” 1.60% 147% 267% 221% 1518, 1 Eto ocx compenssionerpense DTechData
Slide 10: Operating Income (Non-GAAP) Europe
Operating Income (Non-sAai S784 | BRIS Oss GLAIG G2FI6 a3 FIG | mon GAAP Operating Non-GAAP Operating Margin® GAAP Operating plaints su $19 Guad Sts S28 | GAAP Operating piiaeiis 0.69% 142K 0.65% 129% 0.5K 2 Seeine Gass to on Gaus recone ate spans | jo DTechData
Slide 11: Net Income and EPS
$749 saad $45.2 GBAIS QHMIS GIANG IAG ORME mon case et income — —Non GAAP EPS: dates GAAP Hetincome -«$447-—«$807—SSLB THE SHLD GAAPEPS-divted —$109,«§221 $188 §209 ste Weighted average SharesOutstnding- 38438 3828 37,036 36615 35.397 ‘ited
Slide 12: Worldwide Cash Conversion Cycle and Cash Flow
Worldwide | cash conversioncye ‘cash Flow trom operations Siouatons ao a a @ @ $200 FYIS FYISFYIG FYI6 FYIG su Days of | = Outstanding Cash Converion = Cycle $108 ! a a a @ ao
Slide 13: Worldwide Balance Sheet Highlights
Worldwide Df Balance Sheet Highlights ‘bebe to Total capital, sms aims aims ams asms a soe 5865 S868 S570 5865 a s2os sige sig72 sises sigs ——DetioTewcaptaraio KK KN. | |
Slide 14: Share Repurchase Activity Q3 FY16
Norldw idwide | Share Repurchase Activity Q3 FY16 Repurchased Price Per (S ilions) ‘Share (O3FY16 Share Repurchases sea 60a so119 (03 TD FY16 Share Repurchases sto 2497 $69.97 | CCumuative Repurchases Since FY 2008 $1,300 20059 sa |
Slide 15: Worldwide Return on Invested Capital
Worldwide 5 Return on Invested Capital’ (won case) maa ma rns as ens (1) Sev mconsiaonot GA4e onan GAA? tac messes andROICcaleubten in gota (2) Sturn Seamer Novena 2015 js D TechData
Slide 16: Customers and Products
customers Products (eft et ss) sotto eter) Sreseagsars software ~ | vans Pert) sroadie | 0% scones ly 28% -Goiporate Ee Data = center Resellers ad [me Ins sats = eptean seme ‘consumer | lectroics ! Poets x Caer 368 Company estnetes forthe 12months ended October 31, 2015. NetrttenecComme Once DTechDa
Slide 17: Q4 Fiscal Year 2016 Outlook
\ Ff 24 Fiscal Year 2016 + For the fourth quarter ending January 31, 2016, the Company anticipates net sales to be in the range of $7.05 billion to $7.25, billion. This assumes year-over-year constant currency sales growth of mid-single digits in both regions. + This outlook excludes approximately $
Slide 18: Appendix: GAAP to Non-GAAP Reconciliations
APPENDIX GAAP to Non-GAAP Reconciliations TechData
Slide 19: SG&A
SG&A esr tr tantra (OtGA “Three months ended. “Three montns ended ‘Soling, generat and administratve ("SCBA") Sctoper 34,2074 “January34, 2015 Apt 30,2075 _ _ July34,2015 _ October 31,2015 (tn thousands) Not Sales S_G7e1is1 $s 7.330401 $5,987,220 $6,580,303 $s GMP scaAexpenses S$ 271235 $200,800 $=
Slide 20: Operating Income Q3 FY16
Operating Income Q3 FY16 (i thovsands) Net Sates GAAP operating incomes Restatement and remediation-related expenses Lose on disposal of subsidiaries Acquisition-related amortization of intangibles LED settlements, nat Total non-GAAP operating income adjustments Non-GAAP operating income GAAP operat
Slide 21: Operating Income Q2 FY16
Operating Income Q2 FY16 Three months ended July 31, 2015 ‘Stock (i thovsands) Americas Europe’? Compensation Consolidated Expense Not Sales $2,745,429 $3,834,964 $6,580,393, GAAP operating income’? 3 60,752 “§ 49443 § @,960) § 106,235 Restatement and remediation-related expenses 146 18 164 LCD sett
Slide 22: Operating Income Q1 FY16
Operating Income Q1 FY16 ‘Three months ended April 30, 2015 Stock {on towands Americas Europe Companion Consodated Not Sates 3 2300280 s 3 su7 ae = 5007270 GAAP operating incomes © ea “§ aaas7 Sasi) “8 O1930 Restatement and remedlaton-lated expenses 28 580 oie LCO settlements, net 0.511) - ees Lose
Slide 23: Operating Income Q4 FY15
Operating Income Q4 FY15 Three months ended January 31, 2015 ‘Stock (0 thousands) Americas Europe Compensation Consolidated Expense Net Sales. S 2,563,662 $4,775,829 $7,339,491 GAAP operating income‘? Ss 37.776 $ 67878 $ 970) $ 101684 Restatement and remediation-related expenses 36 2,329 2,365 Loss
Slide 24: Operating Income Q3 FY15
Operating Income Q3 FY15 ‘Three months ended October 31, 2074 ‘Stock Ameitonss® — Eope — “Comparmation consottatad $ 2,644,085 $4,117,096 $6,761,181 GAAP operating income’? S 42194 § 28407 § 856) $ 66,745 Restatement and remediation-related expenses err 4487 2,064 LCD settlements, net 6.059) : 6,059
Slide 25: Net Income and EPS
Net Income and EPS pitisinias semtie! Sisber STO aay TOS ee rec) or “se Byaiee| [Speen Trae Led sterants om aaa eae atsn asszn ora] aszn —casoy—@20]| om ooo] ‘i # coor 25] ‘ ‘ “ 5 A . e ' | Cm | | nonoaap rauita|§ 70003 s4sz04 ¢ tm |[$ mi7as § 7490 & S some $20579 s0s0||s oxo $5240 § 143 |[S7os0e sa
Slide 26: Return on Invested Capital (Non-GAAP)
Return on Invested Capital noo.case) TIM Net Operating Profit After Tox TED nOIG Porites, ‘Average Invested Copital~ Average Cash in thousands Bi ii January 31, 2013 _January 31, 2014 January 31, 2015 _October 31, 2015 Non-GAAP Net Operating Profit After Tax. (WoPan: Non-GAAP Operating Income $310,2