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INVESTOR DAY 2010
Emerging even stronger from challenging times
WELCOME
Mike Taunton Vice President &
Treasurer
Investor Day 2010Page 3
AGENDASESSION I
SESSION II
8:30 – 10:00 Welcome Mike Taunton
Strategic Overview Mike Long
Global Components Peter Kong
Global ECS Andy Bryant
Strategy Q&A All
10:00 – 10:15 Coffee Break
10:15 – 11:00 Financial Overview Paul Reilly
Finance Q&A All
Closing Remarks Mike Long
Investor Day 2010Page 4
This presentation may include forward-looking statements, including statements addressing future financial results. These statements are subject to numerous assumptions, risks, and uncertainties, which could cause actual results or facts to differ materially from such statements for a variety of reasons, including, but not limited to: industry conditions, the company's implementation of its new global financial system and the company's planned implementation of its new enterprise resource planning system, changes in product supply, pricing and customer demand, competition, other vagaries in the global components and global ECS markets, changes in relationships with key suppliers, increased profit margin pressure, the effects of additional actions taken to become more efficient or lower costs, and the company’s ability to generate additional cash flow. Forward-looking statements are those statements, which are not statements of historical fact. These forward-looking statements can be identified by forward-looking words such as "expects," "anticipates," "intends," "plans," "may," "will," "believes," "seeks," "estimates," and similar expressions. Shareholders and other readers are cautioned not to place undue reliance on these forward-looking statements, which speak only as of the date on which they are made. The company undertakes no obligation to update publicly or revise any of the forward-looking statements.
SAFE HARBOR STATEMENT
STRATEGIC OVERVIEW
Mike Long Chairman, President,
and CEO
Investor Day 2010Page 6
Key actions taken by post- recession leaders
Profitable market share growthMaximize cash flowRadical simplification of businessAcquire for strategic gainsStrengthen capital structure
SUCCESSFUL COMPANIES…
…Emerge from the downturn as the post-recession industry leader
A Foundation of Strength
Supply Chain Efficiently managed
Working Capital Best-in-class levels
Expense Reductions
Reduced costs by $225MM annually
Earnings 11x last downturn
Cash Flow Generated $5.7Bn in cash since 2001
Balance Sheet Strongest balance ever, <$300MM in net debt, net debt/cap ~8%*
*As of December 31, 2009.
Investor Day 2010Page 7
$37
$22
$36
$22
$34
$21
$35
$22
$40
$25
$40
$25
$37
$23
$39
$24
$42
$25
$32
$20
$27
$17
$33
$20
$38
$23
$40
$25
$42
$25
$0
$10
$20
$30
$40
$50
$60
$70Q
3'06
Q4'
06
Q1'
07
Q2'
07
Q3'
07
Q4'
07
Q1'
08
Q2'
08
Q3'
08
Q4'
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09
Q2'
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Q3'
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Q4'
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10
SEMI PEMCO
GLOBAL COMPONENTS TOTAL AVAILABLE MARKET
Significant opportunity to increase our share of the market
Source: SIA; core component TAM excluding memory and microprocessors, excluding Japan.
Cor
e C
ompo
nent
s TA
M ($
Bn)
DTAM ~ 24%
Investor Day 2010Page 8
Targeting large, growing markets
SMB market is forecasted to be a $57Bn market
Software and services have high gross margins and low working capital requirements
Worldwide Market
WORLDWIDE IT TOTAL AVAILABLE MARKET
Global ECS well positioned to capitalize on market growth…
TAM ($Bn)
Servers $48
Storage $29
Networking $135
Infrastructure software $86
Services $297
Source: IDC and industry estimates.
Investor Day 2010Page 9
ARROW’S STRATEGIC FRAMEWORK
Shift investment to sales excellence while maximizing our core infrastructure capability for earnings growth and cash generation
Lean cost structureBusiness simplificationOperational excellence
Solution sellingDemand creationImproved value-added content
Focus on high-growth/vertical marketsGeographic expansionExpand services
Optimize Gross Profit
Profitable Market Share Growth
Operational Efficiency
Margin
Revenue
Costs
Shift in
vestm
ent a
nd
addit
ional
cash
gene
ratio
n
Investor Day 2010Page 10
Market share enables Arrow to:
Be a driving forcedriving force
in the industry
Offer comprehensive value and services to
increase marginsincrease margins
PROFITABLE MARKET SHARE GROWTH
Be a respected partnerrespected partner to suppliers and
customers
Have the sales force coveragesales force coverage we need to increase
customer countcustomer count
Investor Day 2010Page 11
Aggressively grow the top line
Increase customer penetrationSolution sales outpacing piece part salesBring suppliers technology to market
New/Expanded ECS Supplier Relationships
New/Expanded Global Components Supplier Relationships
PROFITABLE MARKET SHARE GROWTH
Investor Day 2010Page 12
Supplier Expectations
Customer Expectations
The sweet spot of our value is where Arrow capabilities match supplier and customer expectations
ArrowArrow’’s s Value Value
PropositionProposition$ $
OPTIMIZE GROSS PROFIT
Translating Arrow’s value proposition into increased profitability
Most efficient providerClear route to marketDedicated to driving growthTechnical/engineering expertiseFinancial strength
Global footprint and broad line cardValue-added servicesDrive demand generationProactive engineering supportFinancial support
Investor Day 2010Page 13
Accelerate profitable sales growth with existing portfolio
Expand our value proposition across the product lifecycle
Building solutions in reverse logistics
Build global brand identity & affinity for Arrow Services
Grow sales faster than core business
Grow margins faster than sales
Deliver "Best in Class" customer service
Expand addressable market
EXPANDING VALUE-ADDED SERVICES: STRATEGIC INTENT
Become the #1 player in a $225Bn + total addressable market
Investor Day 2010Page 14
$150Bn TAM$75Bn + TAM
Global ComponentsServices
Less than 1% share
ECS Services
Less than 1% share
VALUE-ADDED SERVICES: DRIVING DIFFERENTIATION & PROFITS
We have not yet begun to penetrate the services opportunity
One of our largest growth opportunities
Investor Day 2010Page 15
ERP&
WorldwideInfrastructure
Financial Strength
Global ECS
Global
Com
pone
nts
Value
Added
High Margin / Low Cost Services
ERP&
WorldwideInfrastructure
Financial Strength
Global ECS
Global
Com
pone
nts
Value
Added
High Margin / Low Cost Services
Accelerate sales
Sales excellence
Growth in existing and new
markets
Enhance our value proposition
with increased value-added
services
Capitalize on our foundation of
strength
Drive execution with best-in-class
operational efficiency
OUR STRATEGY
Investor Day 2010Page 16
OPERATIONAL EFFICIENCY
We have improved efficiencies and reduced costs by more than $225 million during the downturn, resulting in a record low level of opex/sales
Y/Y
% C
hang
e Opex*/Sales
*Represents GAAP measure adjusted to exclude the impact of restructuring and other items affecting comparability.
-30%
-20%
-10%
0%
10%
20%
30%
Q1-
07
Q2-
07
Q3-
07
Q4-
07
Q1-
08
Q2-
08
Q3-
08
Q4-
08
Q1-
09
Q2-
09
Q3-
09
Q4-
09
Q1-
10
6%
7%
8%
9%
10%
11%
12%
13%
14%
15%
Operating Expense* Sales Opex*/Sales
Investor Day 2010Page 17
FIRST QUARTER RESULTS
Emerging even stronger from challenging times
Q1 sales and EPS well ahead of expectations
Achieved record level of sales for any Q1
Operating income and ROIC almost doubled Y/Y
ROIC of 12.1% Results demonstrate significant operating leverage
Operating income growth substantially outpaced sales growth
Impressive financial strength allows us to continue to invest in the business
Value-added services
Vertical markets
Geographic expansion
$3,498
$4,028
$3,417
$4,235
Q1-07 Q1-08 Q1-09 Q1-10
Total Sales ($ Bn)
GLOBAL COMPONENTS
Peter Kong President, Global
Components
Investor Day 2010Page 19
Americas
EMEASA
Asia/Pacific
2009 Revenue $9.8Bn
Presence in 46 countries and territories across North America, Europe, and Asia-Pacific
Market share leader in North America, leading player in Europe and Asia
Over 110,000 customers across all end markets and geographies
A large portion of our customer base uses one or more value-added service
Ship over 36,000 line items per day and manage over 1 million part numbers
Our components business provides value-added services for OEMs and EMS companies
ARROW GLOBAL COMPONENTS
35%
29%
36%
Investor Day 2010Page 20
*Primarily MCU/MPU and non-DRAM memory.
Computing/Memory* 12%
Discrete/Logic 21%
Passives 9%
Electromechanical 4%
Microcomponents* 12%
ASIC/Application Specific/Opto 13%
Connectors 6%
Analog 24%
UNMATCHED LINE CARD TOUCHING ALL TECHNOLOGIES
We have a broad technology portfolio with more than 800 suppliers
Semi = 70%
PEMCO = 18%
Computing/ memory = 12%
Investor Day 2010Page 21
Most Efficient Provider
Effective go-to-market model
Differentiated Value Proposition
Lead with solutions
Maximize global presence
Large customer intimacy Vertical focus for mid sizeSmall enterprise Arrow Advantage
Demand creation
Excess managementValue-add
Design supportSolution orientationValue-added
Business simplification
Operational excellence
Global relationships
WW footprintBroad line card
GLOBAL COMPONENTS STRATEGY
Investor Day 2010Page 22
AsiaDiverse business modelsRapid pace of changeFastest growing market worldwide
EuropePan-European brandCountry-based purchasingValue-added service is rewarded
AmericasDesign work for high-growth marketsValue-added service is rewardedSupply chain solutions
VALUE IS REALIZED DIFFERENTLY ACROSS THE WORLD
Investor Day 2010Page 23
Relationships
Sales Excellence
Value-Added Services
Superior Execution
Strong Financial Position
Partner of Choice
OUR FOCUS IS UNCHANGING
We have never been as strong competitively
Investor Day 2010Page 24
Design Services Broad Line Card Supply Chain Services
COMMUNICATION • CONSUMER • COMPUTING • LIGHTING • AEROSPACE & DEFENCE • MEDICAL • ALTERNATE ENERGY
18%
77%
5%
Large Customers – Global EMS and OEM’s, Local Mega’s
Core – Medium Customer Focus
Small/Emerging – ArrowAdvantage
Regionally managed customersOptimize market segmentation, new customer growthInvest in under-penetrated geographies, emerging technologies and growth segments
Single point of contact at global level for global customersEnhance customers’ engagement and satisfaction from design to production Offer broad line card, supply chain solutions
Dedicated team, supported via all countriesGrow potential emerging customers to core (medium) On-line internet search capability
GLOBAL COMPONENTS GO-TO-MARKET MODEL
Investor Day 2010Page 25
PROFITABLE MARKET SHARE GROWTH
Americas EMEA Asia Pacific
Lighting Lighting Lighting
Medical Emerging Markets Consumer
Aerospace & Defense Aerospace & Defense Industrial
Alternative Energy Transportation Communication
Expanding into attractive markets aligned with our strategy
Investor Day 2010Page 26
Current business $175MMExpected to double in 2010
WW high-brightness LED market is growing $2Bn per year32% CAGR 2009-2013$3 of related products for every $1 LED sold
Technology has advanced New and emerging applicationsLED reliability and lifetime advantagesLumens/watt surpass traditional light sources
Regulatory and green impactCalifornia Title 24, Energy StarNo mercury/lead, incandescent bans
Economics are starting to make senseMaintenance avoidanceImproved lumens/$ = lower initial fixture costEnergy savings
Concentration on high-growth markets – lighting
PROFITABLE MARKET SHARE GROWTH
Investor Day 2010Page 27
Gaining traction due to government standards and tax benefits as well as rising costs in traditional energy
European standards and carbon tradingU.S. stimulus funding and tax breaks are sustaining pricing parityTightening state standards in NJ, CA, and CO
30 million homes will have meters by end 2011Emerging market for Home Area Network (HAN) devicesHigher acceptance of renewable energy demand
It’s where the money is going VC and private equity invested $3.5Bn in 2009 DOE invested $3.4Bn into Smart Grid projects in 2009
It’s where the jobs are going“Clean Energy” job growth outpacing other industriesSolar, wind and Smart Grid at the top of list
PROFITABLE MARKET SHARE GROWTH
Concentration on high-growth markets – alternative energy
Investor Day 2010Page 28
Optimize Sales MixHigh-growth marketsDemand creation
Increase MarginsEngagement with suppliers and customers Value-added services
Operational EfficiencyPan European modelShared service centers
Profitable Market Share
Growth
Optimize Gross Profit
Operational Efficiency
GLOBAL COMPONENTS 2010 PRIORITIES
GLOBAL ECS
Andy Bryant President, Enterprise Computing Solutions
Investor Day 2010Page 30
2009 sales of $4.9 billion (33% of Arrow’s total sales)
Presence in 26 countries across North America and Europe
Over 2,200 employees
Positioned to provide end-to-end data center solutions
Loyal and successful partner base
SNAPSHOT OF ARROW ECS
Global, pure play value-added distributor
Specialized Channel Management services focused on the next wave of IT growth
North America
EMEA
2009 Revenue $4.9Bn
28%
72%
Investor Day 2010Page 31
Most Efficient Provider
Enterprise and mid-market leader
Focus on high growth sectors
Lead with solutions
Maximize global presence
ERP (North America)Web-based tools
Focus on core businessMid-market initiative
SecurityStorage management
NetworkingServices
Professional servicesSolution orientation
Pan-regional operating modelsEmerging markets
ECS STRATEGY
Investor Day 2010Page 32
Other 2%Services
16%
Software 33% Storage 22%
ISS 7%
Proprietary Servers 20%
Product Growth Rates (2009 to 2013):
Mid Range: 5%Volume: 2%Storage: 2%
Services: 3%Software: 5%Networking: 4%
Geography Growth Rates: North America: 4% Europe: 3%
Supplier Consolidation among suppliers will continue
2009 ECS Product Mix* High Growth SectorsY/Y Growth Q1 2010
ECS CORE MARKETS
Source: IDC; *Based on billings.
Investor Day 2010Page 33
Q1
Q2
Q3
Q4
Q1
Q2
Q3
Q4
2006 2009
26% CAGR 2006-2009
DISCIPLINED APPROACH TO PROFITABLE GROWTH
ECS Worldwide RevenueIndustry- leading
working capital metrics
Investor Day 2010Page 34
OUR VISION
A specialist in infrastructure solutions of leading edge technologies, delivering best of class channel management services
From Supplier to VAR to End-User, our value proposition stems from managing the value chain
for our partners
Broad Line Distribution
Logistic & financial supportMarket: retail & small businessVolume products (PC’s)
Value-Added Distribution
Expertise in sales, pre-sales, marketing and post-sales supportMarket: enterprise accountsEnterprise products
Channel Management
Channel developmentMarket development & professional servicesMarket: enterprise & mid-marketInfrastructure solutions
Investor Day 2010Page 35
$400
$600
$800
$1,000
$1,200
$1,400
$1,600
$1,80019
99
2000
2001
2002
2003
2004
2005
2006
2007
2008
2009
2010
E
2011
E
2012
E
-10%
-5%
0%
5%
10%
15%
TOTAL IT SPEND WORLDWIDE
Growth in IT spending returns
Source: IDC.
IT S
pend
($B
n)Y
/Y %
Change
Investor Day 2010Page 36
Convergence and Cloud Drive Demand for New Infrastructure
IT ENTERPRISE LANDSCAPE
Data Data CenterCenter
Public CloudPublic Cloud
Server
Unified Communication
Virtualization
Network
Storage
Security
Private CloudPrivate Cloud
Investor Day 2010Page 37
Specialists in enterprise infrastructure solutions of leading edge technologies
ARROW ECS GO-TO-MARKET MODEL
Pure-play enterprise value-added distributor
Arrow ECS
Virtualization & Infrastructure Software
Professional Services
Shared Services
Investor Day 2010Page 38
Growth Superior growth rates in storage, networking, virtualization, and security
Growing 2x faster than marketAbove market growth in servers
ARROW ECS GO-TO-MARKET MODEL
Optimize the leverage points in the operating model
Arrow ECS
Virtualization & Infrastructure Software
Professional Services
Shared Services
Investor Day 2010Page 39
Return on Working Capital
Software drives higher returns on capitalEnables a solution sale
ARROW ECS GO-TO-MARKET MODEL
Optimize the leverage points in the operating model
Arrow ECS
Virtualization & Infrastructure Software
Professional Services
Shared Services
Investor Day 2010Page 40
Margin Enhancement
Increased mix of services drives higher gross margins
ARROW ECS GO-TO-MARKET MODEL
Optimize the leverage points in the operating model
Arrow ECS
Virtualization & Infrastructure Software
Professional Services
Shared Services
Investor Day 2010Page 41
Productivity Increase operational excellence to drive higher levels of productivityMaximize operating leverage
ARROW ECS GO-TO-MARKET MODEL
Optimize the leverage points in the operating model
Arrow ECS
Virtualization & Infrastructure Software
Professional Services
Shared Services
Investor Day 2010Page 42
Optimize Sales MixExpand our line card around leading technologiesDriver higher levels of services revenueInvest in high growth market segments
Increase MarginsEngagement with suppliers and customersSolution selling
Operational EfficiencyLeverage ERP platformService centersEuropean integration
Profitable Market Share
Growth
Optimize Gross Profit
Operational Efficiency
GLOBAL ECS 2010 PRIORITIES
STRATEGY Q&A
COFFEE BREAK
Investor Day 2010Page 45
AGENDASESSION I
SESSION II
8:30 – 10:00 Welcome Mike Taunton
Strategic Overview Mike Long
Global Components Peter Kong
Global ECS Andy Bryant
Strategy Q&A All
10:00 – 10:15 Coffee Break
10:15 – 11:00 Financial Overview Paul Reilly
Finance Q&A All
Closing Remarks Mike Long
FINANCIAL OVERVIEW
Paul Reilly EVP, Finance &
Operations and CFO
Investor Day 2010Page 47
DELIVERING FROM A FOUNDATION OF STRENGTHRevenue ($Bn)
$7.3
$14.7
2002 2009
11% CAGR
15.0%
9.3%
2002 2009
Operating Expense*/Sales
*Represents GAAP measure adjusted to exclude the impact of restructuring and other items affecting comparability.
$253
$445
2002 2009
$0.15
$1.68
2002 2009
EBITDA* ($MM)
8% CAGR
(570) bps
Diluted EPS*
41% CAGR
Investor Day 2010Page 48
DELIVERING FROM A FOUNDATION OF STRENGTHAvailable Liquidity ($MM, inc. cash)
$1,444
$2,537
2002 2009
$2,093
$1,399
2002 2009
Total Debt ($MM)
53%
8%
2002 2009
5.5x
0.6x
2002 2009
Net Debt to Capital Net Debt to EBITDA*
*Represents GAAP measure adjusted to exclude the impact of restructuring and other items affecting comparability.
Investor Day 2010Page 49
FIRST QUARTER RESULTS
Emerging even stronger from challenging times
Operating income growth substantially outpaced sales growth
Almost doubled Y/YSignificant operating leverage
Operating income grew 3x and 11x faster than sales Y/Y and Q/Q, respectivelyFocused management of working capital
Return on working capital reached record Q1 levelEfficiently manage all levers of working capital
Balance sheet and capital structure remain strongConservative debt levels and maturity profileNet debt to capital near record low levelNet debt to EBITDA less than 1x
Committed liquidity facilities provide flexibility to take advantage of opportunities that may arise
Investor Day 2010Page 50
2002 2009
$7B $15B
EVOLUTION OF OUR BUSINESS
Capitalizing on the opportunities of the markets served
Americas
23%
Europe
20%
Asia
23%
ECS
Americas
24%
ECS
Europe
10%
Global Components
Global ECS
Europe 33%
Asia 9%ECS
Americas 28%
Americas 30%
Investor Day 2010Page 51
WE HAVE FUNDAMENTALLY CHANGED THE WAY OUR COMPANY IS RUN
2002 2009 Variance
Net Sales $7.3Bn $14.7Bn 102%
Opex/Sales 15.0% 9.3% (570) bps
Operating Income* $173MM $378MM 118%
EPS* $0.15 $1.68 1,020%
WC/Sales $.22 $.12 (46%)
ROWC 9.4% 20.2% 1,080 bps
ROIC** 3.5% 7.6% 410 bps
Net Debt $1.4Bn $262MM (81%)
*Represents GAAP measure adjusted to exclude the impact of restructuring and other items affecting comparability. **ROIC = Annualized, tax effected op. income and equity in earnings of affiliates excluding restructuring and other charges - annualized minority interest/(Avg Debt + Avg Equity – Avg Cash over $150MM).
Investor Day 2010Page 52
OPERATING AT GREATER LEVELS OF EFFICIENCY
We should see more operating leverage coming out of this downturn…
*Represents GAAP measure adjusted to exclude the impact of restructuring and other items affecting comparability, **Based on First Call consensus.
($ Millions) 2002 2003 Variance 2009 2010** Variance
Sales $7,270 $8,528 17% $14,684 $17,869 22%
Gross profit $1,260 $1,421 13% $1,751 $2,223 27%
GP % 17.0% 16.7% -30 bps 11.9% 12.4% +50 bps
Operating expenses* $1,087 $1,179 8% $1,373 $1,570 14%
% of sales 15.0% 13.8% -120 bps 9.3% 8.8% -50 bps
Operating Income* $173 $242 40% $378 $653 73%OI % 2.4% 2.8% +40 bps 2.6% 3.7% +110 bps
EPS* $0.15 $0.74 393% $1.68 $3.23 92%
Investor Day 2010Page 53
ROIC > WACC
Generate positive cash flow throughout the cycle
Manage working capital at “best-in-class” levels
Absolute EPS
EPS growth
Differentiated operating income margin
CREATING SHAREHOLDER VALUE
Investor Day 2010Page 54
FINANCIAL UPDATE
*Excludes special charges; NAC pro forma includes A.E. Petsche, Euro/USD Fx Rate at 1.3800.
Global Components Actual 2007 Pro Forma 2007 VarianceAmericas % of sales 41% 37%EMEA % of sales 37% 32%Asia Pac % of sales 22% 31%Global ComponentsNet Sales $11,224 $13,017 16%Operating Margin* 5.4% 5.1% -30 bps
Global ECSNorth America % of sales 82% 72%Europe % of sales 18% 28%Global ECSNet Sales $4,761 $5,428 14%Operating Margin* 4.1% 4.1% Flat
Total ArrowNet Sales $15,985 $18,445 15%Operating Income $699 $775 11%Operating Margin* 4.4% 4.2% -20 bps
EPS – Diluted* $3.29 $3.83 16%
ROWC +190 bps
WC/sales -150 bps
Investor Day 2010Page 55
OUR FINANCIAL GOALS
Previous Long-Term Targets
Operating Income*
Global Components 5.7% - 7.0%
Global ECS 4.6% - 5.3%
Consolidated 4.5% - 5.8%
ROIC** 12.5% - 15.0%
*Excludes special charges **ROIC = Annualized, tax effected op. income and equity in earnings of affiliates excluding restructuring and other charges - annualized minority interest/(Avg Debt + Avg Equity – Avg Cash over $150MM)
Updated Long-Term Targets
Operating Income*
Global Components 5.3% - 6.6%
Global ECS 4.3% - 5.0%
Consolidated 4.1% - 5.4%
ROIC** 12.5% - 15.0%
ALL DRIVEN BY
MIX
Investor Day 2010Page 56
ERP PROGRESS AND FOCUS TO DATE
Project cost $350MM
ROI 20% +
Annual benefits $75MM
Completion date 2011
Estimated Global ERP Expense & Benefits Update
GFS delivered on time and on budgetECS North America delivered on time and on budgetSuccessful pilot implementation in Australia/New Zealand (global components)On track to transition Northern Europe (components) in Q3 2010
Investor Day 2010Page 57
ERP PROGRESS AND FOCUS TO DATE
Project cost $350MM
ROI 20% +
Annual benefits $75MM
Completion date 2011
Estimated Global ERP Expense & Benefits Update
GFS delivered on time and on budgetECS North America delivered on time and on budgetSuccessful pilot implementation in Australia/New Zealand (global components)On track to transition Northern Europe (components) in Q3 2010
Completion of Global Components transition moved out to 2012Risk adverse approach to implementationsChange management/preparationBusiness has changed since ERP began
Project cost ~ $425MM
ROI ~ 20%
Annual benefits $75MM +
Completion date 2012
Investor Day 2010Page 58
$12.39
$11.05 $10.82
$7.52
$6.45 $6.38
$1.63$0.79
$0.21
ARW
*Cumulative EPS for the last five years beginning July 1, 2005; Source: company financial statements; Represents GAAP basis (excluding goodwill impairments) through 1Q10; Companies included: AVT, IM, SNX, TECD, BHE, CLS, FLEX, JBL.
Earnings Per Share*
We have generated industry leading EPS in the last five years
CONSISTENT GENERATOR OF EARNINGS
Investor Day 2010Page 59
We are well positioned to perform well throughout the economic driven or secular cycle
Diversified revenue stream
Opportunities for organic growth
More flexible cost structure
Very strong balance sheet with significant liquidity
Consistent cash flow generator
We are continually looking for ways to operate our business more efficiently
We are committed to achieving our financial targets and in turn to increasing shareholder value
Our financial discipline and strategic vision will serve us well
IN SUMMARY…
FINANCE Q&A
CLOSING REMARKS
Mike Long Chairman, President,
and CEO
Investor Day 2010Page 62
Needs
ArrowValued
Metrics
Relationships
CapabilityOfferingsSup
plie
rs
Custom
ers
Understand the needs
Align Arrow’s capabilities to the need
Create a valued offering
Metrics and measurements to determine success
Get the full value for the services that we provide
DELIVERING THE VALUE
Maximize Arrow’s value for customers and suppliers
Investor Day 2010Page 63
KEY TAKE-AWAYS
Exited the downturn as an industry leader
Executing on strategic vision for profitable market share growth
Accelerate sales growth
Expand our value proposition
Outgrow the market
Impressive financial strength and flexible capital structure
Significant operating leverage in the model
Strong EPS growth
Generate premium returns for shareholders
INVESTOR DAY 2010
Emerging even stronger from challenging times