avnet technology solutions about the global organization q1 fy09
TRANSCRIPT
Avnet Technology Solutions
About the Global Organization
Q1 FY09
2
TSAvnet Technology SolutionsAvnet Technology Solutions
About the Global OrganizationAbout the Global Organization
TS Global: Mission
To lead our industry To lead our industry
in growth, innovation, value and effectivenessin growth, innovation, value and effectiveness
in such a way that it ensuresin such a way that it ensures
we are an we are an indispensableindispensable element element
of our suppliers’, customers’ and employees’ of our suppliers’, customers’ and employees’
success and future dreams.success and future dreams.
TS Global: Mission
G I V EG I V EGROWTH INNOVATION VALUE EFFECTIVENESS
TS Global: What We Do
Avnet Technology Solutions markets and sells enterprise and embedded technology products from the world’s premier computer manufacturers and software suppliers, as well as the services and solutions required to implement them efficiently and effectively.
Our relationships with diverse technology suppliers, including well-established leaders and emerging market innovators, coupled with our rich services portfolio, help our partners reach new markets and new customers.
With the support of more than 3,700 TS professionals around the globe, our partners become part of a worldwide network that enables them to profit from high-growth opportunities faster and with less investment, wherever they choose to do business.
TS Global: Locations
AMERICASCanada
Mexico
United States
EMEAAustria
Belgium
Czech Republic
Denmark
France
Germany
Hungary
Ireland
Italy
Netherlands
Poland
Portugal
Romania
Slovakia
Spain
Sweden
Switzerland
United Arab Emirates
United Kingdom
ASIA PACIFICAustralia
China
Hong Kong
India
Indonesia
Malaysia
Singapore
Sri Lanka
Taiwan
Thailand
Vietnam
TS Global: Locations (15+ employees) AMERICASMexico, DFMilpitasMississaugaMt. LaurelPeabodyPhoenixSan AntonioTempeWestminster
EMEAAustriaViennaBelgiumDiegemCzech RepublicPragueGermanyLeinfelden-EchterdingenNettetalHungaryHungaryIrelandItalyCusano MilaninoPolandWarsawSlovakiaBratislavaSwitzerlandHorgenUnited KingdomBracknellRedfields Park, Church Crookham
15-49
50-99
100+
ASIA-PACIFICAustraliaMelbourneSydneyHong KongIndiaMalaysiaKuala LumpurSingaporeTianjin
Industry Standard Servers
7%
Midrange Servers19%
Other Hardware10%
Storage 20%
Services14%
Software14%
Networking, Processors,
Displays, Memory16%
TS Global: World-Class Suppliers
TS Global Commodity Mix (Q109) TS Global Supplier Revenue Mix (Q109)
IBM28%
AMD5%
NetApp5%
Other32%
HP12%
Sun18%
Top 5 Suppliers =
67% of Revenue
TS Global Snapshot
> 3,700 employees around the world (not including support and logistics functions)
#1 or #2 market share with the majority of our top suppliers Largest global value-added technology solutions distributor
Locations in more than 30 countries in the Americas, EMEA and Asia Pacific
EMEA34%
Asia6%
Amer60%
TS Global Revenue by Region (Q109)
$4.06$4.35
$4.81 $4.99
$6.00
$7.63 $7.80
$4
$5
$6
$7
$8
FY03 FY04 FY05 FY06 FY07 FY08 FY09est.
TS Global Revenue
TS Global: The Opportunity
Avnet Technology Solutions Global
Technology Solutions Distribution
$7.63 billion revenue(FY08)
DTAM = $159 billion worldwide (Distribution Total Available Market)
TAM = $934 billion worldwide(Total Available Market)
TS5%
TS DTAM95%
Go where the money is while making a difference in the lives of those we serve Enable customers to specialize and differentiate within key vertical markets Focus resources and investments on high growth / high spend technology solutions and
emerging markets Enable customers to increase their influence and customer base (thus market share)
through the addition of technology solution practices Grow profit faster than revenue, grow both faster than the market
S O L U T I O N SHARDWARE SOFTWARE
SERVICES FINANCING
TS Global: Strategic Imperatives
TS Global: Solutions Practices & Vertical Markets
Build Avnet and trading partner industry expertise
Link channel trading partners (ISVs, SIs, OEMs, VARs) to provide solutions for vertical market customers
S O L U T I O N SHARDWARE SOFTWARE
SERVICES FINANCING
Hea
lth
care
Go
vern
men
t
Ed
uca
tio
n
High Growth ►Vertical Markets
Gain Share ► Existing Customers
HP
IBM
Su
n
OE
M S
olu
tio
ns
Sto
rag
e +
So
ftw
areSecurity / Security /
NetworkingNetworking
Unified Unified Communications Communications
Virtualization / Virtualization / ConsolidationConsolidation
StorageStorage
MobilityMobility
Document & Document & Content Mgmt.Content Mgmt.
High Growth ► Solutions Practices
New supplier acquisitionAssemble / integrate and wrap services around best-
of-breed solutionsAccelerate time to market; minimize expense and risk
Strategic Imperative: Global Profitable Growth Leverage scale/scope to expand product and service line card across geographies Expand global footprint by creating global supplier relationships/contracts Acquisitions (Jan. 2007 – Present)
Geographic expansion Industry consolidation New capabilities
$2B Sun VAD 90% Americas, 10% Europe
Acal IT Solutions$200M SAN, networking, electronic document mgt products and services
UK, Netherlands, Belgium, Germany, France, Sweden
Azure$90M IBM
systems/solutions disti
Singapore, Malaysia
ChannelWorx$30M networking,
security
Australia
Magirus
$500M VAD of IBM, HP enterprise computing products
7 European countries, Dubai
Ontrack$13M professional services company
India
Horizon$450M enterprise server, storage,
networking and security VAD UK & Ireland
Access
TS Global: Leadership Team
Updated 09.19.08
John PagetPresident
Global
Patricia HarperExecutive Assistant
KP TangPresidentAsia Pacific
Michelle TaylorDirector
Global MarketingCommunications
Dick BorsboomPresident
EMEA
Jeff BawolPresidentAmericas
Usha ShahVice President
Operational Excellence
Gerald PurcellSr. Vice President
IT
Rusty MurdaughVice President
Finance
Shared Business / Corporate Services
Cheryl NaumannVice President
Human Resources
Kristi BonfiglioAssociate
General Council
Mark BelkVice PresidentGIS SAP Program
Darren AdamsVice President
Business Transformation Leader
Carola SuarezVice PresidentStrategic Planning
Greg FrazierExec Vice President
Business Innovation
15
AVNETAvnet, Inc.Avnet, Inc.
Avnet, Inc.: Vision
Avnet will deliver the highest value
to our customers, suppliers, employees and shareholders
as the premier technology marketing,
distribution and services company, globally.
Avnet, Inc.: Vital Link in Global Technology Supply Chain
IT Original Equipment
Manufacturers
Non-IT Original Equipment
Manufacturers
IT Original Equipment
Manufacturers
Non-IT Original Equipment
Manufacturers
End UsersEnd Users
EMS / ODMEMS / ODM Resellers and
System Builders
Resellers andSystem Builders
Semiconductors
InterconnectPassive &Electro-
mechanical Devices
Subsystems
Semiconductors
InterconnectPassive &Electro-
mechanical Devices
Subsystems
Avnet effectively manages the complexity of the technology supply chain in a cost-efficient manner, delivering value to suppliers and customers
Software & Services Vendors
Software & Services Vendors
EM TS
Avnet, Inc.: Snapshot
Established 1921 in New York City Incorporated 1955 NYSE: AVT 1960 June 30 fiscal year end
FY08 revenue $17.95B Fortune 500 rank: #163 Forbes Global 2000 rank #949
~ $2.6B market cap ~ 13,200 employees ~ 300 locations in > 70 countries 2 operating groups
Electronic components• Avnet Electronics Marketing (EM)
Computer products• Avnet Technology Solutions (TS)
TS40%
EM60%
EMEA33%
Asia22%
Amer45%
Q1 FY09
Avnet, Inc.: Revenue History
$9.05
$10.20$11.10
$14.25
$15.68
$17.95
$8
$10
$12
$14
$16
$18
$20
FY03 FY04 FY05 FY06 FY07 FY08
BILLIONS
Avnet, Inc.: Earnings Per Share Excluding restructuring and other charges
$0.55
$0.73$0.76
$0.67$0.67
$0.81
$0.89
$0.69
$0.85
$0.50
$0.60
$0.70
$0.80
$0.90
$1.00
Q107 Q207 Q307 Q407 Q108 Q208 Q308 Q408 Q109
Avnet, Inc.: Leadership Team
Roy ValleeChairman & Chief Executive Officer
Roy ValleeChairman & Chief Executive Officer
Avnet, Inc. Board of DirectorsAvnet, Inc. Board of Directors
Executive Board
John PagetTechnology Solutions
Steve PhillipsInformation Services
Ed KaminsOperational Excellence
Jim SmithLogistics
Harley FeldbergElectronics Marketing
Rick HamadaChief Operating Officer
Ray SadowskiFinance
Steve ChurchHuman Resources Devt
David BirkLegal
Global Executive Council
Avnet, Inc.: Strategic Framework
1. Integrity 2. Customer Service 3. Accountability 4. Teamwork 5. Innovation
Performance and Values Based Culture of Excellence
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