Slide 1: Avnet First Quarter Fiscal Year 2024 Financial Results
Avnet First Quarter Fiscal Year 2024 Financial Results November 1, 2023
Slide 2: Safe Harbor Statement
Safe Harbor Statement This document contains forward-looking statements within the meaning of Section 27A of the Securities Act of 1933, as amended, and Section 21E of the Securities Exchange Act of 1934, as amended, with respect to the financial condition, results of operations, and business of the
Slide 3: Q1 FY24 Highlights
Q1 FY24 Highlights Regional demand • EMEA growth Y/Y offset by Asia and the Americas, as expected $6.3B Revenue -6% Y/Y End market demand • Transportation remained strongest • Industrial, defense / aerospace, consumer moderating 4.1% Adjusted Lead times Operating Margin (1) • Lead times continue to
Slide 4: Revenue
Revenue $6.75B $6.72B Y/Y growth $6.51B $6.55B $6.34B Revenue As Constant ($M) reported currency REGIONS EMEA $2,308 8% 2% Americas $1,574 (6%) (6%) Asia $2,454 (17%) (16%) SEGMENTS Electronic Components $5,914 (7%) (8%) Farnell $421 (1%) (4%) Q1 Q2 Q3 Q4 Q1 AVNET $6,336 (6%) (8%) FY23 FY23 FY23 FY2
Slide 5: Q1 Income Statement
Q1 Income Statement Adjusted Operating Expense $6.3B Reported revenues as % of Gross Profit (1) 65.0% 61.8% Gross margin up 43 bps Y/Y and down 67 bps Q/Q – seasonal 11.8% shift to western regions from prior year $486M Adjusted operating expenses (1) – up 2% Y/Y and down 4% Q/Q 65.0% Operating expen
Slide 6: Q1 Adjusted Operating Income
(1) Q1 Adjusted Operating Income 4.8% 4.8% 4.4% 4.5% $315M $313M 4.1% $293M $301M Adj Op Y/Y Adj Op Y/Y $262M Income growth Margin growth ($M) SEGMENTS Electronic Components $273 +2% 4.6% +38 bps Farnell $18 -66% 4.2% -792 bps Corporate Expenses ($29) - - - AVNET $262 -11% 4.1% -22 bps Q1 Q2 Q3 Q4 Q
Slide 7: Q1 Non-operating & EPS
(1) Q1 Non-operating & EPS Adjusted Diluted EPS (1) Interest expense up $26M Y/Y and down $4M Q/Q – $0.21 Y/Y $71M negative impact on adjusted diluted EPS $2.00 $1.61 24.0% Adjusted effective tax rate (1) $1.61 Adjusted diluted EPS (1) – down 20% Y/Y and 22% Q/Q Q1 Q1 FY23 FY24 7 (1) Non-GAAP measur
Slide 8: Q1 Balance Sheet & Liquidity
Q1 Balance Sheet & Liquidity Inventory – $290M increase Q/Q, including temporary $5.8B increase in EC inventories for strategic opportunity Diluted Shares Outstanding 96M 93M 101 WC days 2.3x Gross debt leverage $732M Available committed lines of credit $27M Share repurchases $0.31 Dividend – return
Slide 9: Outlook for Q2 FY24
Outlook for Q2 FY24 (ending Dec 30, 2023) Metric Guidance Range Midpoint Sales $6.0B – $6.3B $6.15B Diluted EPS $1.35 – $1.45 $1.40 Factors impacting our Q2 FY24 outlook • Based on current market conditions • Implies sequential sales decline of ~3%, typical seasonality for western regions due to hol
Slide 10: Non-GAAP Definitions
Non-GAAP Definitions In addition to disclosing financial results that are determined in accordance with generally accepted accounting principles in the United States (“GAAP”), the Company also discloses certain non-GAAP financial information including (i) adjusted operating income, (ii) adjusted ope