accelerating your success™ 1 avnet analyst day 2010 performance & potential avnet, inc....

Accelerating Your Success™1 Accelerating Your Success™

Avnet Analyst Day 2010Performance & Potential

Avnet, Inc.December 15, 2010


Opening Remarks and Management Introductions

Vince KeenanVice 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

Adaptability Financial Conservatism

Culture

Profitable Growth Leadership

Profitable Growth Leadership


• Gross Profit $ Volume

• ROCE

• Market Capitalization

• Gross Profit $ Volume

• ROCE

• Market Capitalization

TECHNOLOGY DISTRIBUTIONTECHNOLOGY DISTRIBUTION


Steve Phillips

Chief Information Officer

Avnet, Inc.

5 Years of Service

Steve Phillips

Chief Information Officer

Avnet, Inc.

5 Years of Service

MaryAnn Miller

Chief Human Resources Officer

Avnet, Inc.

4 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

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

Al Maag

Chief Communications Officer

Avnet, Inc.

13 Years of Service

Jim Smith

President

Avnet Logistics

10 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

Steve Church

Chief Business Development and Process Officer

Avnet, Inc.

20 Years of Service


Harley Feldberg

President,

Avnet Electronics Marketing

28 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

Rick Hamada

President and Chief Operating Officer

Avnet, Inc.

27 Years of Service

Ray Sadowski

Chief Financial Officer

Avnet, Inc.

32 Years of Service

Ray Sadowski


Avnet, Inc.

32 Years of Service

Phil Gallagher

President,

Avnet Technology Solutions

28 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

Roy Vallee

Chairman & Chief Executive Officer

Avnet, Inc.

33 Years of Service


90 Years in Business90 Years in Business++

50 Years on NYSE50 Years on NYSE++

148 Years of Sr. Leadership 148 Years of Sr. Leadership

AVNET’S LONGEVITYAVNET’S LONGEVITY


Demonstrated Performance and

Exciting Potential

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 Semiconductors19

90

1991

1992

1993

1994

1995

1996

1997

1998

1999

2000

2001

2002

2003

2004

2005

2006

2007

2008

2009

2010

E

0

50

100

150

200

250

300

350

($ B

illi

on

s)

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


-50.0%

-40.0%

-30.0%

-20.0%

-10.0%

0.0%

10.0%

20.0%

30.0%

40.0%

50.0%

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%

Global Semi less DRAM, MPU & Flash

Source: WSTS

Source: WSTS

Source: WSTS

Semiconductor Y/Y Growth Rates

Two 100 year floodsin a decade

RecessionRecession


Ma

r-0

3

Ju

n-0

3

Se

p-0

3

De

c-0

3

Ma

r-0

4

Ju

n-0

4

Se

p-0

4

De

c-0

4

Ma

r-0

5

Ju

n-0

5

Se

p-0

5

De

c-0

5

Ma

r-0

6

Ju

n-0

6

Se

p-0

6

De

c-0

6

Ma

r-0

7

Ju

n-0

7

Se

p-0

7

De

c-0

7-10.0%

0.0%

10.0%

20.0%

30.0%

40.0%

50.0%

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%

Source: WSTS

Source: WSTS

Source: WSTS

Source: WSTS


Excluding the recessions, the worst quarters in this period were roughly flat year-over-year


Ma

r-0

3

Ju

n-0

3

Se

p-0

3

De

c-0

3

Ma

r-0

4

Ju

n-0

4

Se

p-0

4

De

c-0

4

Ma

r-0

5

Ju

n-0

5

Se

p-0

5

De

c-0

5

Ma

r-0

6

Ju

n-0

6

Se

p-0

6

De

c-0

6

Ma

r-0

7

Ju

n-0

7

Se

p-0

7

De

c-0

7-10.0%

0.0%

10.0%

20.0%

30.0%

40.0%

50.0%

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%

Source: WSTS

Source: WSTS

Source: WSTS

Source: WSTS

2003 2004 2005 2006 2007

18%

27%

6%8%

4%

Chart Title


Resulting in 5 years of uninterrupted growth


Projected Semiconductor Growth19

90

1991

1992

1993

1994

1995

1996

1997

1998

1999

2000

2001

2002

2003

2004

2005

2006

2007

2008

2009

2010

E

2011

E

2012

E

2013

E

0

50

100

150

200

250

300

350

($ B

illi

on

s)

Growth Decline Source: SIA/WSTS (total semiconductors)

Current forecasts project at least four years of growthTotal 2011-2013 $ growth is greater than pre-recession

2005 - 2007+43 Billion

2011 - 2013+47 Billion


Projected Semiconductor Growth Rates

1990

1991

1992

1993

1994

1995

1996

1997

1998

1999

2000

2001

2002

2003

2004

2005

2006

2007

2008

2009

2010

E

2011

E

2012

E

2013

E

0

50

100

150

200

250

300

350

($ 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 CAGRHowever, recession only interrupted semi market growth

90s growth driven by business spend

10-year CAGR +7.5%


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

1995

1996

1997

1998

1999

2000

2001

2002

2003

2004

2005

2006

2007

2008

2009

2010

E

2011

E

2012

E

2013

E

0

200,000

400,000

600,000

800,000

1,000,000

1,200,000

1,400,000

1,600,000

1,800,000

2,000,000

($ B

illi

on

s)

Growth Decline

2011 - 2013+273 Billion

2006 - 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 recessionAvnet Technology Solutions is ~70% Hardware

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

GDP Hardware Services Software0%

2%

4%

6%

8%

3.2%

5.9% 6.4%

8.0%

2005-2008 CAGR

1.9x 2.0x

2.5x

GDP Hardware Services Software0%

2%

4%

6%

8%

3.6%

6.6%

4.3%

6.2%

2010-2013 CAGR

1.9x

1.2x

1.7x

Served Available Market


2009 2010 2011 2012 20130

50000

100000

150000

200000

250000

300000

350000

$224,532

$273,755$290,530

$313,423$331,258

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


2009 2010 2011 2012 20130

300

600

900

1,200

$914 $946 $984$1,034

$1,087

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

2009 2010 2011 2012 20130

250,000

500,000

750,000

1,000,000

1,250,000

1,500,000

-15% 22% 6% 8% 6%

-5%3% 4%

5%5%

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

($ b

illi

on

s)

$1,446B5%

$1,149B-7%

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

$1,366B6%$1,278B

5%$1,205B7%

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

Distributor TAM ~$319B

Direct TAM ~$956B

Distributor TAM ~$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)


FY 2008 FY 2009 FY 2010 Q1FY11 Q1FY11 Annualized*$10.0

$12.5

$15.0

$17.5

$20.0

$22.5

$25.0

$18.0

$16.2

$19.2

$24.2

Rev

enue

US

$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


The Path to Premier

Rick HamadaPresident and COO


Executing to Avnet’s Vision

• Avnet’s Strategic Framework

• Our Enterprise Priorities & Initiatives– Value Based Management (VBM)

• Portfolio Management & Performance– Operational Excellence– Employee Engagement– Customer Engagement

• Global Infrastructure Scale & Scope


Avnet effectively manages the complexity of the technology supply chain in a cost-efficient manner,

delivering value to suppliers and customers.

Vital Link in Global Technology Supply Chain

IT Original Equipment

Manufacturers

Non-IT Original Equipment

Manufacturers

End UsersEMS / ODM

Resellers, ISVs and

System Builders

Semiconductors

InterconnectPassive &Electro-

mechanical Devices

Subsystems

Software & Services Vendors

EM TS


1. Integrity 2. Customer Service 3. Accountability 4. Teamwork 5. Innovation

Performance and Values Based Culture of Excellence

Strategic Framework

Be the preferred partner to our

customers and suppliers

Profitable Growth

Attract, develop and engage the best employees

People Development

Consistently strive for flawless

execution and process innovation

Operational Excellence

Deliver Industry-Leading Economic Profit

Premier Technology, Marketing, Distribution and Services Company, Globally


Enterprise Performance: Balanced Scorecard

Metric Type Global Objectives Avnet KPMs

Shareholder Deliver industry-leading economic profit.

Economic Profit $ Growth

ROCE ≥14.0% / ROWC ≥ 30.0%

Customer & Supplier Be the preferred partner to our customers and suppliers.

Customer Loyalty/Customer Retention

Gross Profit $ Growth

Operational Excellence Consistently strive for flawless execution and process innovation.

Operating Expense to NGP/GP $ Per Employee

Working Capital Velocity

Employee Attract, develop and engage the best employees.

On Time Performance Appraisalswith Development Plans

Employee Engagement Index


Enterprise Initiatives – Enhancing Avnet’s Culture

Value-Based Management / Profitable Growth

Operational Excellence

Employee Engagement

Customer Engagement


Business Portfolio Composition

FY ‘10 Revenue

Americas $3.4B

EMEA $3.7B

Asia / Japan $3.9B

AvnetElectronicsMarketing

$11.0B

Avnet TechnologySolutions

$8.2B

FY ‘10 Revenue

Americas $4.9B

EMEA $2.3B

Asia $1.0B


Portfolio Performance

FY05 FY06 FY07 FY08 FY09 FY100%

10%

20%

30%

40%

50%

60%

70%

80%

10%

15%

20%

25%

30%

29.6%24.2%

49.9% 50.5%

26.4%

64.0%

15.8%

21.3%

25.7%25.1%

17.8%

27.0%

% o

f Avn

et p

ortf

olio

(by

rev

enue

) at

or

abo

ve lo

ng-t

erm

RO

WC

goa

l

Avn

et

RO

WC


12.5%

Avnet’s Value-Based Management Journey

ROCE

Revenue($B)

5%

10%

$5 $10 $15 $20

FY07

FY06

FY08

FY04

FY05

WACC

Dri

vin

g Valu

e

Driving Growth

FY10 14%

16%

FY09

12.5%


Measuring Operational Excellence

FY05 FY06 FY07 FY08 FY09 FY1020%

40%

60%

80%

100%

78.0%

72.8%

66.5% 67.6%

75.7%

71.0%

Avnet 5-year Gross Profit Dollar CAGR = +9.3%

Avnet 5-year Operating Expense CAGR = +7.3%

Avnet 5-year Operating Profit CAGR = +15.5%

Q4 FY1066.4%

Ope

ratin

g E

xpen

se a

s a

% G

P$


Customer EngagementEmployee Engagement

“Putting the Service-Profit Chain to Work,” Heskett, et al., - Harvard Business Review

Thoughtful organizational development strategies lead to a more productive and engaged workforce, a more loyal customer base, and higher shareholder returns.

The Power and Impact of Engagement

People PracticesPeople

PracticesEmployee

Engagement and

Organizational Climate

EmployeeEngagement

and Organizational

Climate

External Service Value

External Service Value

Customer Satisfaction

Customer Satisfaction

Customer Loyalty

Customer Loyalty

ProfitabilityProfitability

RevenueRevenue

Employee Retention

Employee Retention

Employee Productivity

Employee Productivity


Employee Engagement / Enterprise Performance

(1) Excluding restructuring, integration and other items.

FY04 FY05 FY06 FY07 FY08 FY09 FY10$0.00

$0.50

$1.00

$1.50

$2.00

$2.50

$3.00

$3.50

60%

62%

64%

66%

68%

70%

72%

74%

76%

$1.04

$1.39

$1.87

$2.76

$3.18

$1.92

$2.77

65%

68%

70%

73%

75% 75%

US companies reported employee engagement on average declined ~9%

2008 vs. 2009*

*Towers Watson and WorldatWork 2009/2010 U.S. Strategic Rewards survey

Avn

et E

mpl

oyee

E

ngag

emen

t

Avn

et E

PS

Total Employees 9,900 9,800 10,900 11,700 12,800 12,900 14,200


Avnet’s Customer Engagement Evolution

High Risk Trapped

Accessible Truly Loyal

AT

TIT

UD

E

BEHAVIOR

• Key metrics: Loyalty and Retention• Formal survey process

– 89,000 customer contacts surveyed• Regional analysis & action plans• Understanding drivers of engagement• Ongoing “Voice of the Customer”

activities– Day-to-day relationship

management, focus groups, advisory councils and online communities

Walker Loyalty Matrix

Satisfaction(early 2000’s)

Loyalty(2006)

Engagement(2010)


Avnet Global Logistics Scale & Scope

• ~ 2,500 employees• Global footprint

~ 3 million sq. ft.• Manage ~ 500,000

SKUs globally• 99+% same day ship• ~ 70% include value-add

– Program 200+ million devices

– Integrate 760,000+ systems– 19.4+ million

cable assemblies

• Quality performance currently exceeds 5 σ standards*

FY05 FY06 FY07 FY08 FY09 FY106.5

7.0

7.5

8.0

8.5

9.0

9.5

7.1

8.07.9

8.6

7.7

9.1

Total Lines Shipped (in millions)

5-year CAGR = +5%

* Five Sigma = 233 defects per million opportunities


Avnet Global IT Scale & Scope

776 terabytes of storage

405 software applications

~ 3,600 virtual servers

~ 29,270 visitors to website daily

~ 700 IT professionals

As of Q1 FY’11

95% spam filtered from 6 million e-mails daily

68 integrations executed since 1991


Executing to Avnet’s Vision

• Strategic framework, planning and review process supporting world-class execution

• Enterprise initiatives drive performance-based culture of excellence

• Our global scale and scope positions us for continued profitable growth

• Avnet team is committed to shareholder value creation


Thank You


Financial Report

Ray Sadowski



Agenda

• Historical Results

– Performance through the recession

• Strong Financial Position

• Long-term Business Model

• Acquisition Integration Update

Historical Results


$12.7

$10.6

$8.9$9.5

$10.8

$12.6

$14.8

$17.0$17.9

$16.7

$22.8

$5

$7

$9

$11

$13

$15

$17

$19

$21

$23

$25

CY00 CY01 CY02 CY03 CY04 CY05 CY06 CY07 CY08 CY09 CY10*

Avnet, Inc. Revenue

Avnet’s Journey – The Last Decade

($ in billions)

6 years of growth with revenue peaking in CY ‘08

Tech Bubbledownturn

Less severe

downturn

Two 100 Year Floods in one decade; yet steady progress

Record revenue in 2010

* CY10 is an estimate based upon three completed quarters and guidance for Q4CY10


$1.90

$1.54

$1.23 $1.24

$1.45

$1.63

$1.92

$2.21$2.31

$1.96

$2.7215.0%

14.6%13.8%

13.1%13.5%

12.9% 13.0% 13.0% 12.9%

11.8% 11.9%

0%

2%

4%

6%

8%

10%

12%

14%

16%

$0.00

$0.50

$1.00

$1.50

$2.00

$2.50

$3.00


GP $ GP % of Sales

Avnet, Inc. – Gross Profit $ and %


Margins impacted by geographic and business mix($ in billions)


$650

$238

$101

$166

$317

$377

$599

$750

$694

$443

$865

5.1%

2.3%

1.1%

1.8%

2.9%3.0%

4.1%

4.4%

3.9%

2.7%

3.8%

0%

1%

2%

3%

4%

5%

6%

$0

$100

$200

$300

$400

$500

$600

$700

$800

$900


Op Income $ Op Income %

Significant operating leverage during periods of growth:Demonstrated during CY 03-07 growth periodStarting a new trend in CY 10

Avnet, Inc. – Operating Income $ and %

* CY10 is an estimate based upon three completed quarters and guidance for Q4CY10Note: Excludes restructuring, integration and other charges

($ in millions)


Avnet, Inc. – EPS

$2.49

$0.43

$0.06

$0.48

$1.40 $1.50

$2.32

$3.12

$2.90

$1.72

$3.64

$0.00

$0.50

$1.00

$1.50

$2.00

$2.50

$3.00

$3.50

$4.00


Steep decline in profits tied to significant

revenue loss

Y/Y more than doubled to record level

Excludes restructuring, integration and other charges


Dramatic trough to trough performance


23.2%

30.0%

24.1%

18.6% 19.0%17.0% 17.0% 16.8% 17.1%

14.6%13.4%

4.3 3.34.2

5.4 5.3

5.9 5.9 6.0 5.9

6.97.5

5.2

4.3

5.3

7.2 6.97.6

7.98.2 8.1

9.19.7

0

2

4

6

8

10

12

0%

5%

10%

15%

20%

25%

30%

35%


WC

Ve

loc

ity

& In

ve

nto

ry T

urn

s

WC

% o

f S

ale

s

Average WC % of Sales WC Velocity Inventory Turns


Avnet, Inc. - Working Capital Velocity & Inventory Turns

Significantly higher velocity due to VBM and geographic and business mix


VBM Improved ROWC

22.1%

7.5%

4.7%

9.4%

15.5%

17.5%

23.9%

26.4%

22.8%

18.2%

28.4%

0%

5%

10%

15%

20%

25%

30%


Note: Excludes restructuring, integration and other charges

ROWC declined due to the dramatic

cycle downturn

ROWC moves to record level

following recession

VBM launched early 2001 ROWC improved as

VBM combined with organic growth + M&A

ROWC reached higher peak



8.5%

2.8%1.8%

4.0%

7.5% 7.8%

10.3%

11.9%

10.0% 10.0%

15.6%

0%

2%

4%

6%

8%

10%

12%

14%

16%

18%


VBM Improved ROCE

Note: Excludes restructuring, integration and other charges

ROCE declined due to the dramatic cycle downturn

VBM launched early 2001

New ROCE target established in 2009

14% - 16%

ROCE improved as VBM combined with

organic growth + M&A


New ROCE target range Previous ROCE target

Strong Financial Position


VBM Cash Flow from Operations

$168 $204$393

$499$289

$410$173 $200

$206$166

$20

$142$121

-$423

$126

-$211

$809

-$582

-$600

-$400

-$200

$0

$200

$400

$600

$800

$1,000

$1,200

FY05 FY06 FY07 FY08 FY09 FY10

Net Income Non Cash Items Working Capital

$462m $725m $454m $1,118m$-19mAnnual Totals

$-30m($ in millions)


$2.9 Billion of cumulative cash from net income + non-cash Items over the past 6 years

VBM Cash Flow from Operations

$168 $204$393

$499$289

$410$173 $200

$206$166

$20

$142$121

-$423

$126

-$211

$809

-$582

-$600

-$400

-$200

$0

$200

$400

$600

$800

$1,000

$1,200


Net Income Non Cash Items Working Capital

($ in millions)


Strengthened Balance Sheet

Key Credit Statistics

$1,244 $1,235 $1,209 $1,225

$970

$1,280

$85.1

$96.5

$77.2 $72.3 $66.5 $61.7

$0

$50

$100

$150

$200

$0

$200

$400

$600

$800

$1,000

$1,200

$1,400


Total Debt Interest Expense

(5.8%)(7.1%)

(6.5%)

(Effective interest rate noted above line)

(5.6%)(5.0%)

2005 2006 2007 2008 2009 2010Debt to EBITDA 3.2 2.1 1.6 1.5 1.7 1.7EBITDA Coverage 4.5 6.1 9.9 11.5 8.6 12.1Debt to Capital 37.2% 30.4% 26.2% 22.9% 26.0% 29.8%

(5.4%)

($ in millions)


Financing Strategic Objectives

• Maintain Avnet’s Investment Grade credit ratings– Cost of Debt Capital– Access to Capital– Trading Partner Relationships– Competitive Position

• Optimize Avnet’s cost of capital• Ensure adequate availability of capital / liquidity to

meet the needs of the business– Fund organic growth– Fund M&A growth


Capital Allocation Strategy

• Disciplined internal resource allocation• Reinvest cash generation for growth - primarily

through value creating M&A = ROCE ≥ 12.5%– Continue to believe the best use of cash is to fund

future growth

• Return “Excess” cash to shareholders when appropriate– Dividends (perpetual)– Stock buyback


Liquidity Framework

• Normal Float $200M $300M• Working Capital Expansion $200M $500M• Debt Due Within 3 Years -- --• Committed M&A $100M $100M• Potential M&A $200M

$500M• Total $700M $1.4B

Low High

Long-Term Business Model


Long-term Model Philosophy

• Remain committed to achieving ROCE of 14% – 16%– Adjusted for impairment of goodwill on legacy businesses = ~16%

– Incremental investments including acquisitions will be held to a minimum 12.5% ROCE threshold

• Top operational goal is generating 30% ROWC at the enterprise level– Varies by group and region due to different tax rates

• Shift of business mix towards Asia and TS, including growth in Latin America, could negatively impact operating margins

• These margin declines should be positively offset by higher asset velocity


Long-Term Business Model

*Note: ROCE goal of 12.5% = ~16.0% after impairment of goodwill; items above do not include restructuring, integration or other charges.

No change from previous model

FY09 Actual FY10 Actual 3 Year GoalROCE Avnet 8.7% 14.7% 14 - 16%*ROWC Avnet 17.8% 27.0% 30.0%Working Capital Velocity Avnet 5.9 7.8 6.7 - 7.5Operating Income Margin Electronics Marketing 3.9% 4.5% 5.0 - 5.5% Technology Solutions 2.9% 3.1% 3.4 - 3.9% Avnet 3.0% 3.5% 4.0 - 4.5%


55% Drop Through

60% Drop Through

65% Drop Through

5%

10%

15%

20%

25%

5% 6% 7% 8% 9% 10%

Op

era

tin

g In

co

me

Gro

wth

Gross Profit Growth

Operating Leverage

Value Creating M&A


Revenue Seasonality

Numbers provided are estimates for a typical quarter and can vary based upon several factors including but not limited to:– Economic/Market conditions– M&A activity– End of fiscal calendar– Foreign currency exchange rates

Sequential Revenue Growth

Sept Dec Mar JunEM +1% to -3% 0% to -3% +4% to +7% 0% to +4%TS -1% to -5% +22% to +28% -16% to -20% +3% to +7%Avnet 0% to -4% +8% to +12% -4% to -7% +1% to +5%

Sept Dec Mar Jun20%

22%

24%

26%

28%

30%

EM TS AVT

Percent of Annual Revenue

Acquisition Integration Update


Bell Integration Update

Note: Full synergies goal of $60 million annualized ($15 million per quarter) is expected to be achieved as we enter fiscal year 2012.

• Retained all key personnel, suppliers and customers

• Converted Bell’s Americas business to Avnet’s IT system

• Comfortable with synergy target of at least $60M

Q1 Q2 Q3 Q4% Complete 51% 72% 86% 100%Cumulative annualized synergies @ end of quarter $30.4 $43.1 $51.6 $60.0Incremental annualized synergies @ end of quarter $30.4 $12.7 $8.5 $8.4

Q1 Q2 Q3 Q4Synergies impacting current quarter $6.3 $9.2 $11.8 $13.9Year to date synergies realized $6.3 $15.5 $27.3 $41.2

($ in millions)

($ in millions)


Summary

• Took advantage of the V-shaped recovery to deliver record results

• Long term priorities continue to focus on driving profitable growth and increasing Economic Profit $– ROWC > 30%– ROCE = 14 – 16%; incremental > 12.5%

• Demonstrating strong operating leverage• Strong balance sheet and liquidity

– Investment grade credit statistics– Higher EPS and growth potential

• Proven mgm’t team; growing long-term shareholder value


Technology Solutions

Phil GallagherDecember 15, 2010

Accelerating Your Success™Accelerating Your Success™

Agenda

• Avnet Technology Solutions (TS) – A Global

Snapshot

• TS’ Strategic Imperatives

– Customer Focused Go-to-Market Strategy

– Global Scale and Scope

– Portfolio Management

77


Demonstrating Sustainable Growth

We will create a sustainable competitive

advantage and profitability for TS

globally by developing technology solutions that generate value for the IT

supply chain.

Our Mission

Accelerating Your Success™

4-Year CAGR 13.2%

78


Regional Revenue Mix Shift

4-Year CAGR:Asia = 41.4%

EMEA = 17.9%Americas = 7.3%

Q1FY11 includes Bell/Tallard79


World-Class Supplier Partnerships

In Q1FY11, Avnet’s Top 10 suppliers* accounted for 73% of total revenue.

* Includes Bell Micro

We celebrate our supplier partnerships every day and are particularly proud of those that achieve significant milestones.

80


Outperforming the Market

Source: Avnet Data based on rolling 4 qtrs YoY growth- 1FQ11; IDC, Gartner, iSuppli – Oct 2010

Services Software Hardware0%

5%

10%

15%

20%

0.8%

5.2%

14.6%

6.2%

12.0%

19.0%

Market Growth TS Revenue Growth

Proprietary Servers

ISS Networking Storage Processors-20%

-10%

0%

10%

20%

30%

40%

-16%

16% 18%

11%

2%

23% 21%25%

Key Hardware Technologies vs. Market

Market Growth TS Revenue Growth

We are outgrowing the market in all categories -- software and services at an accelerated rate, with hardware growth led by storage, ISS and networking.

81


Demonstrating Market Leadership

Avnet is the largest value-added IT distributor in the world, with $8.2B in sales

Avnet has the only global footprint among its peer group

The industry recognizes Avnet’s thought leadership with our SolutionsPath® methodology

Avnet’s Global Solutions Centers provide integration capabilities that deliver a differentiated end-to-end supply chain for data center solutions around the world

The world’s leading suppliers of data center technology partner with Avnet to attract and grow the most successful enterprise resellers around the globe

82

Accelerating Your Success™Accelerating Your Success™83

Executing Our Strategic Imperatives

1. Achieve targeted ROWC in all regions

2. Continue to build and leverage TS’ global scale and scope

3. Focus on high-growth technologies and verticals

4. Strengthen TS’ value-added solutions enablement model

5. Support customer, reseller and supplier migration to cloud-

based services

Market Focus


Becoming a “Trusted Advisor”

85

Empowered consumers are driving businesses to become more agile, without compromise

Available, scalable, flexible, capacious and secure

Legacy infrastructure is complex and burdensome

Simplification, virtualization

New infrastructure can be quickly deployed with virtual data center assets (public or private cloud)

Line executives are challenging IT to support new, differentiated applications and service levels

The channel partner of the future is a trusted advisor to their

customer – understanding not only technology, but also its application

and its business value.


Serving a Very Large and Growing Market

Source: Gartner, IDC & iSuppli – Nov 2010

2009 2010 2011 2012 20130

300

600

900

1,200

$914 $946$984

$1,034$1,087

TS Served Available Market

US

$B

illio

ns


Vertical Growth

Technology Growth

Segmenting for Optimal Growth

TAM CAGR, 4.7%

$0 $50,000 $100,000 $150,000 $200,000 $250,0000%

5%

10%

15%

20%

25%

30%

2010 IT Spend

3 Yr

CA

GR

2010

-201

3

Gov

t & E

du (5

)

Bank

ing

(4)

Reta

il (3

)He

alth

care

(2)

Utili

ties

(1)

Security (d)

Networking (f)

Mobility (b)

Storage (g)

Collaboration (e)

Virtualization (c)

Cloud (a)a

b

c

e

d

fg

12

3 4 5

Source: Gartner & IDC Oct 2010

87


Line

of

Bus

ines

s E

xecu

tives

an

d C

-Sui

te D

ecis

ion

Mak

ers

Avnet interprets market needs, creates differentiated enablement programs and aggregates products & services to help our partners become trusted advisors.

Extending the Value Chain with SolutionsPath®

• NetworkPath™

• VirtualPath®

• MobilityPath™

• SecurePath™

• StoragePath™

Fin

anci

alP

ath

™

Hea

lth

Pat

h®

Ret

ailP

ath

™

En

erg

yPat

h™

Go

vPat

h™

Market Focused

Customer Intimate

…with a repeatable, scalable enablement framework.

Industry, technology, application and customer expertise…

Avn

et S

ervi

ces

Clo

ud

Rea

dy™

88

https://www.vmware.com/tryvmware/?p=vsphere&lp=1&src=PaidSearch_Google_AMER-US_AMER-US_VI_VI_Search_WWWLink_vSphere_Eval






http://www.mcafee.com/common/redirectgeneric.asp?rurl=/us/default.asp

http://www.mcafee.com/common/redirectgeneric.asp?rurl=/us/default.asp


Increasing Supplier, Reseller and End-User Value

Envision – Enable – Execute with our proven SolutionsPath® methodology

“We continue to invest in helping our channel partners deepen skills, deliver value to clients, and pursue new opportunities for growth. We see that commitment to

growth reflected in Avnet's resources and programs that they have developed to help IBM Business Partners sell

complete solutions that meet the business needs of IBM's customers worldwide. Many of these programs

are among the industry best practices for our channel."

Rich Hume, general manager, global business partner and midmarket organization, IBM

“Thanks to Avnet’s HealthPath® University and Internship and the skills that we have been able to further develop with their

collaboration, we have the in-depth healthcare industry knowledge that stands out to hospitals and medical facilities

and that quickly establishes us as trusted advisors.”

Jeff Teeter, vice president, vertical solutions, Logicalis

Analytics & market opportunity

identification

Strategic engagement & go-to-market strategy

Training and enablement

Demand creation

Service delivery

89


cloud /klaʊd/ –noun 1. a set of services and

technologies that enables the delivery of computing services over the internet in real time.

2. the delivery of IT resources via a shared network in the form of applications (SaaS), infrastructure (IaaS) and platform (PaaS).

Assessing “The Cloud” Opportunity

“The Cloud” is growing quickly and could become a much more significant portion of overall IT spend by 2014, with private cloud services outpacing public.

Traditional IT Products -- 5% CAGRPublic IT Cloud Services -- 27% CAGRPrivate IT Cloud Services (prelim) – 36% CAGR

Source: IDC 2010 (note: Private IT Cloud Services are IDC's preliminary estimates)90


Private Cloud – Avnet is Here, Now

Public, Private or Hybrid? Legacy infrastructure predicates a slow,

deliberate migration to public cloud offerings Private cloud solutions still dominate the

landscape in Avnet’s served market Avnet is CloudReady™

Portfolio of cloud offerings from the world’s leading technology suppliers

SolutionsPath® practices in all key cloud technologies

Hosted/managed service infrastructure Partner enablement services, including end-

user assessment services PayNow™ financial program

Avnet occupies a unique and differentiated place in the value chain for customers evaluation and migrating to cloud solutions.

91


Public Cloud – Avnet is CloudReady™

Avnet is poised, in all regions of the world, to support our suppliers’, partners’, and customers’ respective pace of public cloud adoption.

Infrastructure still reigns Even in most emerging markets, IT/voice

infrastructure is still core Cloud adoption is likely in back-office

functions, not mission-critical ones “Voice of the Customer” still rules

Councils, conferences, polls, surveys Avnet has its finger on the pulse of the

speed with which customers will move The future is still unclear

The channel will always find its role and a way to add value

We consider team, time and tempo in all endeavors

Predicting the impact of the internet 10 years ago is

analogous to predicting the impact of the cloud today. Avnet is positioned to succeed, along

with our trading partners.

92

Global Expansion


Going Where the Growth Is

94

We continue to invest in markets that will provide the greatest growth opportunity, organically and through value-creating acquisitions.

2010 2011 2012 2013

$946B

$984B

$1,034B

$1,087B

IT Spend Forecast

North Amer-

ica44%

Asia/Pac18%

Western Eu-

rope17%

Latin Amer-

ica8%

Japan4%

Eastern Eu-

rope4%

Middle East/Africa

4%

New Growth Spend by Region

$141B

*Note: Data represents breakdown of net new IT Spend Growth between 2010 to 2013

Source: Gartner, IDC & iSuppli – Oct 2010


Extending our Global Footprint

Americas$5.1B Revenue

17% YoY Growth

EMEA$2.5B Revenue

16% YoY Growth

Asia$1.1B Revenue

79% YoY Growth

Recent Acquisitions

Avnet Revenue & Growth based on Rolling 4 Qtrs Q1FY11

Bell Micro (NA, LAC, EMEA) ~~~ Tallard (LAC) ~~~Datamation (Indonesia) ~~~ itX (Australia) ~~~ Sunshine (Vietnam)

Recent Acquisitions

Avnet TS-Served Countries

95


NetApp Services SyncSort CommVault Quantum Apple (Latin America) IBM (Latin America) Riverbed Oracle (Brazil, Mexico)

Oracle (Australia) Dell (Vietnam) HP (Vietnam and Indonesia) NetApp (India) VMware (Indonesia) IBM (Indonesia, Vietnam)

Oracle (UK, Belgium, Luxembourg, Switzerland, Ireland, Hungary, Slovakia, Czech Republic, 16 countries in MENA)

HP (Hungary, UK) Juniper (Poland, Czech Republic) NetApp (Ireland, Netherlands, Germany,

UK) EMC/Data Domain (Mostly Eastern

Europe) VMware (Eastern Europe) Avaya (Belgium, Ireland, Netherlands,

Poland) ShoreTel (pan European) Symantec (Ireland, UK, Netherlands,

Czech Republic, Slovakia) Brocade IP (Eastern Europe) HDS (France, Germany, Austria, Hungary) Microsoft (UK) IBM (Belgium, Netherlands, Turkey)

Asia

Americas

EMEA

We expand our line card to support our solutions distribution vision and provide our suppliers global market reach and operational scale.

TS Global Line Card

Expanding Partnerships* for Global Reach

*Significant 2010 line card additions by region96

Portfolio Management


TS remains committed to value-based, portfolio management to drive our committed financial returns in each region.

▪ Continue to drive profitable growth

▪ Expand in LAC, with a focus on improving profitability

▪ Maintain strong regional ROWC performance

Americas▪ Continue driving toward

targeted financial returns

▪ Leverage and scale regional expertise for pan-European support

▪ Expand appropriately in high-growth geographies

▪ Strengthen the line card to support our solutions and global growth strategies

EMEA▪ Accelerate drop-through

with operational focus

▪ Continue to balance expansion opportunity with profitability

▪ Strengthen the line card to support our solutions and global growth strategies

Asia

Managing Regional Priorities

98


Accelerating Your Success™

Avnet TS had a strong recovery in FY10 and is delivering financial returns within our targeted range.

Avnet is the leading IT solutions distributor in the world in scale and scope with revenues over $8B and presence in more than 70 countries.

Avnet intends to continue to outgrow the markets we serve by investing in high-growth technologies, vertical markets and geographies.

Avnet leads the industry with our SolutionsPath® methodology, redefining the role of distribution.

Avnet maintains world-class supplier and reseller partnerships that provide data center hardware, software and services solutions.

Avnet will continue to exercise value-based management across the TS portfolio to achieve our stated financial targets in all regions.

99


Electronics Marketing

Harley FeldbergPresident, Electronics Marketing


Agenda

• Our Mission

• Market Opportunity

• Who We Are

• Growth Opportunities

102


Our Mission

Avnet Electronics Marketing will be the most successful electronic components distributor in

the world by providing our customers & suppliers best-in-class design chain and supply chain

solutions.

103

Market Opportunity


2011 Sizable Revenue and GP Opportunity

$204 B

~ DTAM

$14 B

$9 B

$49 B

~ Channel GP$

$900 M

$6 B

$4 B

$73 B

$14 B

$72 B $ 10.9 B

Source: Avnet EMTAM Sources: Electronics Outlook, Bishop, Fleck, Gartner, iSupply, Paumanok, SIA (Rev 11/5/10) DTAM/GP: Avnet EM estimates for independent franchise distribution

TAM

Medium

Large

Small

$291 B

Our global footprint positions us for strong share gain

105


Design To Consumption – All Regions Matter

Semiconductor Design TAM by Region2009

Semiconductor Consumption by Region2009

Source: Avnet EM BIO, Gartner, iSuppli

The winning formula for components distribution requires strength in both

106


Projected Components Growth through 2013

Semiconductors w/o MPUs, DRAMs or Flash Interconnect, Passive and Electromechanical

107


Growth Forecasted in All Regions

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

Equates to approximately $27B of DTAM

Growth

2010 – 2013 Component TAM Growth Forecast

108

Who We Are


Experienced EM Global Leadership Team

Stephen WongAsia

Harley FeldbergPresident, EM Global

Ravi KichlooSemiconductor

Business Dev.

Tim BarberDesign ChainBusiness Dev.

Bill CrowellFinance

Sean FanningMarketing &

Communications

Ed SmithAmericas

Beth ElyAvnet Express

Dayna BadhornStrategic Planning

Gerry FaySupply Chain

Global & Strategic Accounts

Patrick ZammitEMEA

Tom McCartneyJapan / IP&E

Average 20+ years of industry experience

110


Unique Market Position

Americas 40%

EMEA

38%

Asia

22%

EM FY05

Americas 31%

EMEA

35%

Asia

36%

EM FY10

Americas 67%

EMEA 28%

Asia 5%

EM FY01

With all regions achieving financial metrics

A balanced approach…

$8.3B $6.3B $14.4B

111


Specialized Customer Support

Optimizing our value prop for our customers and suppliers

Avnet Express

Avne

t Exp

ress

Tier 1

AVNET SERVICE AMERICAS EMEA ASIA Japan

Avnet UnitedAvnet Velocity

Core Distribution

Supply Chain Solutions& Logistics

Design Chain & Supply Chain Solutions

Avnet EMAvnet MemecAvnet Embedded

EBVSilicaAvnet AbacusAvnet MemecAvnet Embedded

Avnet EMAvnet Memec

Avnet EM

Avnet Unidux Tier 2

Tier 3

Tier 4

112


Focused on Profitable Growth

Our strong fundamentals maximize profitable growth…- Leadership- Scale & Scope- Growth Strategies

113

Growth Strategies


The Winning Formula

Global Strategies

Design Chain SolutionsSupply Chain Solutions

AsiaJapan

E-CommerceIP&E

Embedded

Execute these strategies using:Our strengths as an industry leader

Our global scale and scopeOur ability to invest

115


Avnet Electronics Marketing: Global Strategies

Design Chain, Migration to Solutions

Global Strategic Imperative • We will offer the most compelling Demand Creation value proposition for both customers and suppliers –EM Design Chain Opportunity:

–Design Chain: approximately 35% of our business

–Over 800 Engineers Worldwide–Greater than 45K Design Wins

Annually

Tim Barber

Why It Matters…• Design TAM is dispersed Worldwide• Suppliers are narrowing their focus both with customers and technology offering

• Customers want solutions, not just parts

• Affords us higher margins• Customer entanglement

116



Supply Chain Solutions, Complex and GlobalGerry Fay

Global Strategic Imperative • We will continue to develop leading-

edge supply chain strategies to meet more complex customer demands– Avnet United: Global Business Mgmt – Business Migration: Linking inter-

regional design and fulfillment– Avnet Velocity: Tier I Fulfillment-only

Services

– Complex Supply Chain Solutions influences approximately 15% of our business

Why It Matters…• Innovative Solutions Developed to

Leverage the Core Business• Extends ROI of Demand Creation

Investments in the West• Leverages our Scale and Scope• Customer Entanglement

117



Growing in Asia, Profitably

Global Strategic Imperative • Drive a leading distribution model in

Asia that effectively balances a focus on EP generation with an aggressive investment in regional growth–Develop effective connections with

other regions to create a globally differentiated value for EM

–Invest in, and develop, infrastructure that gives us scale and productivity

Stephen Wong

Why It Matters…• Continue organic investments in growth

segments• Broad Coverage• Achieving financial metrics• Strong leadership with acquisition and

integration experience• Significant M&A opportunities• Peer Group ~ $26B DTAM

118



Japan, Significant Market Opportunity

Global Strategic Imperative • We will continue to develop our

business in Japan financially and operationally–Pursue additional acquisitions or

alliances to create scope and scale

Tom McCartney

Why It Matters…• Japan Design influences 20% of

global spend• Large fragmented market,

Independent DTAM is approximately $12B

• Significant M&A opportunities• Customer Supply Chain Complexity

Increasing• Enables further supplier

collaboration on global engagements

Top 32 Distributors

119



e-Commerce, Broadening Reach and Services

Global Strategic Imperative

• Expand our e-commerce offering to enable “speed and convenience” procurement of high-profit, low-volume orders

–Common global e-commerce engine (IT)–Online engineering for NPI–Regional customer interface models

– Local Language– Local Currency– Local Inventory

Beth Ely

Why It Matters…• Margin Enhancement• Customer Expansion• On-line Engineering Support• Expanded Service Offering for Speed and

Convenience

$14 Billionsmall customer DTAM

opportunity

120



IP&E Expansion, Selling Across the Board

Global Strategic Imperative • We will expand our “share of wallet”

by further leveraging and extending our industry leading IP&E Portfolio– Specialized Resources in all

regions– Critical element of Solution Selling

Strategy

Tom McCartney

Why It Matters…• Margin Enhancement• Fragmented Distribution Channel

provides Acquisition Opportunity• Supplier Channel Consolidation• Estimated $12B DTAM

121


EM Global Strategy:

Embedded, The Design Evolution

Global Strategic Imperative • Define and launch Avnet EM’s

Embedded strategy regionally and globally– Implement a globally aligned

strategy, incubated regionally, to extend EM’s value proposition in Embedded products

– Ensure the successful integration of Bell business

Why It Matters…• Solution Selling Strategy• New Integration Service Models

• Displays• Embedded Boards• HDD

Sources: Gartner, IDC, iSuppli, (*Without TVs and Monitors), Avnet BIO Estimates

Estimated $50BTAM

122


Development Kits

Supplier Created

Avnet Created

3rd Party Partners

Operating Systems

Microsoft

Linux

Production Modules

Processing

Communications

Power

Wireless

Avnet’s Customer Touch Points…Expanding

• MPU /MCU• DSP• Programmable

Logic• ASIC• Connectivity

– Wired– Wireless

• Analog• Power• IP&E• Displays• Memory

• Embedded Boards– Extension of processor architecture

• Displays– Panels– Systems

• Integrated Systems– Supplier systems– Value added services

Chip Level System Level Embedded Solution Level

Customer Benefits…Time to Market

Development Costs

123


Summary

• CY10, an exciting year, yielding outstanding results– All regions participated in the performance

• Technology continues to proliferate the globe• Experienced and committed leadership team• Global scale and scope matter more than ever• Ability to invest organically and through acquisition• Our strategic imperatives will accelerate profitable growth• Looking forward, growth should continue at a steady pace• Strong operating discipline regardless of market conditions

124


Summary and Wrap-Up

Roy ValleeChairman & CEO


Recognized Industry Leadership

#142 on 2010 Fortune 500

Information Week recognizes Avnet among Top 250 Technology Innovators

Launched 4 new vertical practices in high growth markets

CIO Magazine Names Avnet CIO 100 Award Honoree

Certified Cisco Unified Computing

System

Relocated assembly warehouse to Nogales, Mexico

2010 Fortune’s Most Admired

EBV celebrates 40

years of success


Avnet Portfolio: Performance & Potential

128Sources: Bishop, Electronics Outlook, Fleck, Gartner, IDC, iSuppli (Rev: 11/2010)

2% 3% 4% 5% 6% 7% 8% 9% 10% 11%

TS LAC

TS EMEA

TS Asia Pac

EM Americas

EM EMEA

TS N. AmericaEM Asia Pac

EM Japan

ROWC LRPT

Low

Retu

rn o

n W

orki

ng C

apit

al

H

igh

Note: Bubble size represents Q1FY11 sales annualized

Low 3 Year Market Growth CAGR 2010-2013 High


Avnet Portfolio: Performance & Potential

129

TS LACTS EMEA

TS Asia Pac

EM Americas

EM EMEA

EM Asia Pac

TS N. America

EM Japan

ROWC LRPT

Low

Ret

urn

on W

orki

ng C

apit

al

H

igh

Note: Bubble size represents Q1FY11 sales annualized

Fragmented Avnet Estimated Market Share Consoli -dated


Avnet’s Value-Based Management Journey

ROCE

Revenue

5%

10%

$5 $10 $15 $20 $25

FY07

FY06

FY08

FY04

FY05

WACC

Driving Growth

FY1016%

14%

FY09

Accelerate EP$ Growth

Post

Bubble

Rec

overy 12.5%

Shareholder Value

Great Recession

V-Shaped Recovery

Accelerating Your Success™Accelerating Your Success™131

• Leveraged post-tech bubble growth to new records– Doubled revenue to $18B with ROWC 2,199 basis points to 25.1%

• Performed well through the Great Recession– Trough to trough performance significantly improved

– Quarterly records for revenue, EPS & ROCE in 1st year of recovery

• $24B revenue run rate with expanded global footprint – More diversified and substantial growth opportunities

• ROCE is within target range at the enterprise level – Opportunity for expansion and/or higher growth

• Avnet is the global leader in technology distribution– Substantial opportunities to grow economic profits/shareholder value

Demonstrated Performance & Exciting PotentialDemonstrated Performance & Exciting PotentialDemonstrated Performance & Exciting Potential



Exciting Potential


Exciting Potential

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