Avnet Analyst Day 2010 Presentation 1 Opening Remarks

Accelerating Your Success™1 Accelerating Your Success™

Avnet Analyst Day 2010

Performance & Potential

Avnet, Inc.

December 15, 2010


Opening Remarks and Management

Introductions

Vince Keenan

Vice President, Investor Relations

Accelerating Your Success™3 Accelerating Your Success™33

December 2010 Avnet Analyst Day Agenda

9:30 am Check-in

10:00 am Welcome & Introductions Vince Keenan

Performance & Potential Roy Vallee

Operational Update Rick Hamada

Financial Update Ray Sadowski

12:00 pm Buffet Lunch

1:00 pm Technology Solutions Phil Gallagher

Electronics Marketing Harley Feldberg

Wrap up Roy Vallee

2:45 pm Conclude


Safe Harbor Statement

• This presentation contains certain “forward-looking statements” within the meaning of Section

27A of the Securities Act of 1933 and Section 21E of the Securities Exchange Act of 1934.

These statements are based on management’s current expectations and are subject to

uncertainty and changes in factual circumstances. The forward-looking statements herein

include statements addressing future financial and operating results of Avnet and may include

words such as “will,” “anticipate,” “expect,” “believe,” and “should” and other words and terms

of similar meaning in connection with any discussions of future operating or financial

performance or business prospects. Actual results may vary materially from the expectations

contained in the forward-looking statements.

• The following factors, among others, could cause actual results to differ materially from those

described in the forward-looking statements: the Company’s ability to retain and grow market

share and to generate additional cash flow, risks associated with any acquisition activities and

the successful integration of acquired companies, any significant and unanticipated sales

decline, changes in business conditions and the economy in general, changes in market

demand and pricing pressures, any material changes in the allocation of product or product

rebates by suppliers, allocations of products by suppliers, other competitive and/or regulatory

factors affecting the businesses of Avnet generally.

• More detailed information about these and other factors is set forth in Avnet’s filings with the

Securities and Exchange Commission, including the Company’s reports on Form 10-K, Form

10-Q and Form 8-K. Avnet is under no obligation to update any forward-looking statements,

whether as a result of new information, future events or otherwise.




Adaptability

Financial Conservatism

Culture

Profitable Growth

Leadership


• Gross Profit $ Volume

• ROCE

• Market Capitalization

TECHNOLOGY DISTRIBUTION


Steve Phillips

Chief Information Officer

Avnet, Inc.

5 Years of Service

MaryAnn Miller

Chief Human Resources Officer

Avnet, Inc.

4 Years of Service

David Birk

Senior Vice President and General Counsel

Avnet, Inc.

30 Years of Service

Al Maag

Chief Communications Officer

Avnet, Inc.

13 Years of Service

Jim Smith

President

Avnet Logistics

10 Years of Service

Steve Church

Chief Business Development and Process Officer

Avnet, Inc.

20 Years of Service


Harley Feldberg

President,

Avnet Electronics Marketing

28 Years of Service

Rick Hamada

President and Chief Operating Officer

Avnet, Inc.

27 Years of Service

Ray Sadowski

Chief Financial Officer

Avnet, Inc.

32 Years of Service

Phil Gallagher

President,

Avnet Technology Solutions

28 Years of Service

Roy Vallee

Chairman & Chief Executive Officer

Avnet, Inc.

33 Years of Service


90 Years in Business

+

50 Years on NYSE

+

148 Years of Sr. Leadership

AVNET’S LONGEVITY


Macro Environment


What a Difference a Year Two Years Make…

• Avnet’s served available market (SAM) grew faster than

initially forecasted

• Most volatile 2 year period for semiconductor growth

• Concerns of a double-dip have been receding as the global

economy continues to grow

• Remain in a gradual cyclical recovery

Sources: Bishop, Electronics Outlook, Fleck, Gartner, IDC, iSuppli (Rev: 11/2010)

2009 2010

Actual Dec 09 Forecast Dec 10 Projection

EM SAM -15% 9% 22%

TS SAM -5% 4% 3%

AVT SAM -7% 5% 7%


Recession’s Impact on Semiconductors

0

50

100

150

200

250

300

350

1990

1991

1992

1993

1994

1995

1996

1997

1998

1999

2000

2001

2002

2003

2004

2005

2006

2007

2008

2009

2010E

($ B

illio

ns)

Growth Decline

Source: SIA/WSTS (total semiconductors)

32%

Growth

2009-

2010

First time there has been two consecutive years of declineFirst year of recovery more dramaticV-shape recovery drove new industry record


36.7%

42.6%41.6%

29.2%

2.6%

-24.1%

-39.2%-42.3%

-31.8%

-4.9%

17.3%

19.4%

22.0%

12.9% 11.9%

25.3%

28.7%

35.1%

30.7%

14.2%11.8%

0.3%3.3%

8.9%

7.4%

11.6%9.1%

5.4%

1.8%-0.4%

6.1%

9.5%

8.7%

12.1%

9.3%

-15.0%

-29.2%

-18.8%

-12.8%

15.7%

48.4%

31.7%

22.0%

-50.0%

-40.0%

-30.0%

-20.0%

-10.0%

0.0%

10.0%

20.0%

30.0%

40.0%

50.0%

Mar-

00

Jun-0

0

Sep-0

0

Dec-0

0

Mar-

01

Jun-0

1

Sep-0

1

Dec-0

1

Mar-

02

Jun-0

2

Sep-0

2

Dec-0

2

Mar-

03

Jun-0

3

Sep-0

3

Dec-0

3

Mar-

04

Jun-0

4

Sep-0

4

Dec-0

4

Mar-

05

Jun-0

5

Sep-0

5

Dec-0

5

Mar-

06

Jun-0

6

Sep-0

6

Dec-0

6

Mar-

07

Jun-0

7

Sep-0

7

Dec-0

7

Mar-

08

Jun-0

8

Sep-0

8

Dec-0

8

Mar-

09

Jun-0

9

Sep-0

9

Dec-0

9

Mar-

10

Jun-1

0

Sep-1

0

Global Semi less DRAM, MPU & Flash

Source: WSTSSource: WSTSSource: WSTS

Semiconductor Y/Y Growth Rates

Two 100 year floods

in a decade

RecessionRecession


22.0%

12.9%11.9%

25.3%

28.7%

35.1%

30.7%

14.2%

11.8%

0.3%

3.3%

8.9%7.4%

11.6%9.1%

5.4%

1.8%

-0.4%

6.1%

9.5%

-10.0%

0.0%

10.0%

20.0%

30.0%

40.0%

50.0%

Mar-

03

Jun-0

3

Sep-0

3

Dec-0

3

Mar-

04

Jun-0

4

Sep-0

4

Dec-0

4

Mar-

05

Jun-0

5

Sep-0

5

Dec-0

5

Mar-

06

Jun-0

6

Sep-0

6

Dec-0

6

Mar-

07

Jun-0

7

Sep-0

7

Dec-0

7

SSSS


Excluding the recessions, the worst quarters in this

period were roughly flat year-over-year


22.0%

12.9%11.9%

25.3%

28.7%

35.1%

30.7%

14.2%

11.8%

0.3%

3.3%

8.9%7.4%

11.6%9.1%

5.4%

1.8%

-0.4%

6.1%

9.5%

-10.0%

0.0%

10.0%

20.0%

30.0%

40.0%

50.0%

Mar-

03

Jun-0

3

Sep-0

3

Dec-0

3

Mar-

04

Jun-0

4

Sep-0

4

Dec-0

4

Mar-

05

Jun-0

5

Sep-0

5

Dec-0

5

Mar-

06

Jun-0

6

Sep-0

6

Dec-0

6

Mar-

07

Jun-0

7

Sep-0

7

Dec-0

7

SSSS

18%

27%

6%8%

4%

2003 2004 2005 2006 2007


Resulting in 5 years of uninterrupted growth


Projected Semiconductor Growth

0

50

100

150

200

250

300

350

1990

1991

1992

1993

1994

1995

1996

1997

1998

1999

2000

2001

2002

2003

2004

2005

2006

2007

2008

2009

2010E

2011E

2012E

2013E

($ B

illi

on

s)

Growth Decline Source: SIA/WSTS (total semiconductors)

Current forecasts project at least four years of growth

Total 2011-2013 $ growth is greater than pre-recession

2005 - 2007

+43 Billion

2011 - 2013

+47 Billion


Projected Semiconductor Growth Rates

0

50

100

150

200

250

300

350

1990

1991

1992

1993

1994

1995

1996

1997

1998

1999

2000

2001

2002

2003

2004

2005

2006

2007

2008

2009

2010E

2011E

2012E

2013E

($ B

illi

on

s)

Growth Decline

10-year CAGR +14.9%

10-year CAGR +3.8%

Source: SIA/WSTS (total semiconductors)

Next decade, two 100 year floods impacted semi CAGR

However, recession only interrupted semi market growth

90s growth driven by business spend


Recession’s Impact on IT Spend

Less volatile than the semiconductor industryProjections reflect resumption of consistent growth

1 year decline versus 2 years

Source: IDC (All Hardware, Software and Services) - 10/2010

0

200

400

600

800

1,000

1,200

1,400

1,600

1,800

2,000

1995

1996

1997

1998

1999

2000

2001

2002

2003

2004

2005

2006

2007

2008

2009

2010E

2011E

2012E

2013E

($ B

illio

ns)

Growth Decline

2011 - 2013

+273 Billion2006 - 2008

+257 Billion

Total $ growth is greater post-recession


GDP Growth Versus Total IT Spend

IT Spend grew 6.5%

2.1x GDP

IT Spend projected to grow 5.7%

1.6x GDP

3 yrs leading into the recession 3 yrs leading out of the recession

Hardware growth rate higher post recession

Avnet Technology Solutions is ~70% Hardware

Source - IDC - Oct 2010; GDP - IMF Oct 2010

3.2%

5.9% 6.4%

8.0%

0%

2%

4%

6%

8%

GDP Hardware Services Software

2005-2008 CAGR

1.9x2.0x

2.5x

3.6%

6.6%

4.3%

6.2%

0%

2%

4%

6%

8%

GDP Hardware Services Software

2010-2013 CAGR

1.9x

1.2x

1.7x

Served Available

Market


$225

$274$291

$313$331

0

50

100

150

200

250

300

350

2009 2010 2011 2012 2013

US

$ B

illio

n

Sources: Bishop, Electronics Outlook, Fleck, Gartner, iSuppli (Rev: 11/2010)

Total Growth

2011-2013 +$58B

EM SAM – Continued Growth Following Record


$914 $946$984

$1,034$1,087

0

300

600

900

1,200

2009 2010 2011 2012 2013

US

$B

illio

ns

Source: IDC, Gartner, iSuppli (rev. 11/2010)

Total Growth

2011-2013 +$141B

TS SAM – Steady Growth Toward One Trillion


Large Market That is Leading the Recovery

-15% 22% 6% 8% 6%

-5%3%

4%5%

5%

0

250

500

750

1,000

1,250

1,500

2009 2010 2011 2012 2013

($ b

illi

on

s)

Total Component TAM w/o MPUs, DRAMs, or Flash Total Computer TAM w/ Professional Services

$1,446B

5%

$1,149B

-7%

Note: Percentages represent sequential growth rates. Sources: Bishop, Electronics Outlook, Fleck, Gartner, IDC, iSuppli (Rev: 11/2010)

$1,366B

6%$1,278B

5%$1,205B

7%

Avnet Total Served Available Market


Avnet’s Global Growth Opportunity

27

*Avnet’s FY11 revenue is an estimate based upon Q1FY11 annualized excluding Prosys

Total TAM $1,275 B

Direct TAM

~$956B

DistributorTAM ~$319B

Direct TAM

~$956B

DistributorTAM ~$319B

Avnet

~$24.2 Billion*


Avnet’s Vision Statement

Avnet

will deliver

the highest value

to our customers, suppliers,

employees and shareholders

as the premier technology marketing,

distribution and services company, globally


Business Segment Overview

• Markets and distributes electronic components and embedded systems to OEMs, ODMs and EMS providers

– Products include semiconductors, interconnect, passive, electromechanical and subsystems

– Value-added services spanning the design and supply chains globally including substantial product enhancement

• Markets and distributes complex computer products to VARs, systems builders and OEMs

– Products include enterprise servers, storage systems, embedded subsystems, networking software and services

– Value-added services including marketing, tech support, configuration, integration, training and financial

1 Excludes corporate expenses, restructuring, integration and other charges 2 Working capital = Trade Receivables + Inventory - Payables

28%

72%

43%57%

34%66%

TS

EM

TS

EM

TS

EM

FY 2010 Revenue FY 2010 EBIT1 10/2/10 Working Capital2

Technology Solutions (TS)Electronics Marketing (EM)


$18.0

$16.2

$19.2

$24.2

$10.0

$12.5

$15.0

$17.5

$20.0

$22.5

$25.0

FY 2008 FY 2009 FY 2010 Q1FY11 Q1FY11 Annualized*

Re

ve

nu

e U

S$

Bill

ions

30

Emerged from Recession a Much Stronger Company

* Excludes ProSys

-$1.8B

+$1.1B

Acquired 3

companies that

add ~$4B of

revenue and

achieve 12.5%

ROCE with no

add’l debt or

equity capital

+$3B

-$30M

Revenue:

Cash from Ops:


Avnet – Global Leader in Technology Distribution

Gross Profit Dollar Volume

Return on Capital Employed (ROCE)

Market Capitalization

• VBM culture improving performance through the cycles

• Exited this downturn a much stronger company

– Setting quarterly records for revenue, EPS and ROCE

– More diversified revenue stream with significant growth opportunities

– Experienced management team with proven, consistent performance

• Served market >$1.2 trillion and growing much faster than GDP

• Avnet is growing much faster than the market

– Organic and value creating M&A

Q&A

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