Accelerating Your Success™1 Accelerating Your Success™

Avnet Analyst Day 2010

Performance & Potential

Avnet, Inc.

December 15, 2010

Accelerating Your Success™2 Accelerating Your Success™

The Path to Premier

Rick Hamada

President and COO

Accelerating Your Success™3 Accelerating Your Success™

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

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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 Users

EMS / ODM

Resellers, ISVs

and

System

Builders

Semiconductors

Interconnect

Passive &

Electro-

mechanical

Devices

Subsystems

Software &

Services

Vendors

EM TS

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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

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Enterprise Performance: Balanced Scorecard

Metric Type Global Objectives Avnet KPMs

ShareholderDeliver industry-leading

economic profit.

Economic Profit $ Growth

ROCE ≥14.0% / ROWC ≥ 30.0%

Customer & SupplierBe the preferred partner to our

customers and suppliers.

Customer Loyalty/

Customer Retention

Gross Profit $ Growth

Operational ExcellenceConsistently strive for flawless

execution and process innovation.

Operating Expense to NGP/

GP $ Per Employee

Working Capital Velocity

EmployeeAttract, develop and engage the

best employees.

On Time Performance Appraisals

with Development Plans

Employee Engagement Index

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Enterprise Initiatives – Enhancing Avnet’s Culture

Value-Based Management / Profitable Growth

Operational Excellence

Employee Engagement

Customer Engagement

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Business Portfolio Composition

FY ‘10 Revenue

Americas $3.4B

EMEA $3.7B

Asia / Japan $3.9B

Avnet

Electronics

Marketing

$11.0B

Avnet

Technology

Solutions

$8.2B

FY ‘10 Revenue

Americas $4.9B

EMEA $2.3B

Asia $1.0B

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Portfolio Performance

29.6%24.2%

49.9% 50.5%

26.4%

64.0%

15.8%

21.3%

25.7%25.1%

17.8%

27.0%

10%

15%

20%

25%

30%

0%

10%

20%

30%

40%

50%

60%

70%

80%

FY05 FY06 FY07 FY08 FY09 FY10

% o

f A

vnet

port

folio

(by r

evenue)

at

or

above long-t

erm

RO

WC

goal

Avnet R

OW

C

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12.5%

Avnet’s Value-Based Management Journey

ROCE

Revenue

($B)

5%

10%

$5 $10 $15 $20

FY07

FY06

FY08

FY04

FY05

WACC

Drivin

g V

alu

e

Driving Growth

FY10

14%

16%

FY09

12.5%

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Measuring Operational Excellence

78.0%

72.8%

66.5% 67.6%

75.7%

71.0%

20%

40%

60%

80%

100%

FY05 FY06 FY07 FY08 FY09 FY10

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 FY10

66.4%

Op

era

ting E

xpense a

s a

% G

P$

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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

PracticesEmployee

Engagement

and

Organizational

Climate

External

Service

Value

Customer

Satisfaction

Customer

Loyalty

Profitability

Revenue

Employee

Retention

Employee

Productivity

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Employee Engagement / Enterprise Performance

(1) Excluding restructuring, integration and other items.

$1.04

$1.39

$1.87

$2.76

$3.18

$1.92

$2.77

65%

68%

70%

73%

75% 75%

60%

62%

64%

66%

68%

70%

72%

74%

76%

$0.00

$0.50

$1.00

$1.50

$2.00

$2.50

$3.00

$3.50

FY04 FY05 FY06 FY07 FY08 FY09 FY10

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

mp

loye

e E

ng

ag

em

en

t

Avnet E

PS

Total

Employees9,900 9,800 10,900 11,700 12,800 12,900 14,200

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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 communitiesWalker Loyalty Matrix

Satisfaction(early 2000’s)

Loyalty(2006)

Engagement(2010)

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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*7.1

8.07.9

8.6

7.7

9.1

6.5

7.0

7.5

8.0

8.5

9.0

9.5

FY05 FY06 FY07 FY08 FY09 FY10

Total Lines Shipped (in millions)

* Five Sigma = 233 defects per

million opportunities

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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

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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

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Thank You