Avnet Analyst Day 2010 Presentation 4 Technology Solutions
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Avnet Analyst Day 2010 Presentation 4 Technology Solutions

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Avnet, Inc. 2010 Analyst Day & 50th Anniversary Celebration: Dec 15, 2010 ...

Avnet, Inc. 2010 Analyst Day & 50th Anniversary Celebration: Dec 15, 2010

Presenters included: Roy Vallee, chairman and chief executive officer; Rick Hamada, president and chief operating officer; Ray Sadowski, senior vice president and chief financial officer; Harley Feldberg, president, Electronics Marketing; and Phil Gallagher, president, Technology Solutions.

Following the analyst day event, Avnet commemorated its 50th anniversary on the New York Stock Exchange by ringing the closing bell.

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Avnet Analyst Day 2010 Presentation 4 Technology Solutions Avnet Analyst Day 2010 Presentation 4 Technology Solutions Presentation Transcript

  • Avnet Analyst Day 2010 Performance & Potential Avnet, Inc. December 15, 20101 Accelerating Your Success™
  • Technology Solutions Phil Gallagher December 15, 20102 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 3 Accelerating Your Success™
  • Demonstrating Sustainable Growth Our Mission 4-Year CAGR 13.2% We will create a sustainable competitive advantage and profitability for TS globally by developing technology solutions that generate value for the IT supply chain. Accelerating Your Success™ 4 Accelerating Your Success™
  • Regional Revenue Mix Shift 4-Year CAGR: Asia = 41.4% EMEA = 17.9% Americas = 7.3% Q1FY11 includes Bell/Tallard 5 Accelerating Your Success™
  • World-Class Supplier Partnerships In Q1FY11, Avnet’s Top 10 suppliers* accounted for 73% of total revenue. We celebrate our supplier partnerships every day and are particularly proud of those that achieve significant milestones. * Includes Bell Micro 6 Accelerating Your Success™
  • Outperforming the Market We are outgrowing the market in all categories -- software and services at an accelerated rate, with hardware growth led by storage, ISS and networking.20% 19.0% Key Hardware Technologies vs.15% 14.6% Market 40% 30% 25% 12.0% 23% 21% 18% 20% 16% 11%10% 10% 2% 0% 6.2% -10% 5.2%5% -20% -16% Proprietary ISS Networking Storage Servers 0.8% Market Growth TS Revenue Growth0% Services Software Hardware Market Growth TS Revenue Growth 7 Accelerating Your Success™ Source: Avnet Data based on rolling 4 qtrs YoY growth- 1FQ11; IDC, Gartner, iSuppli – Oct 2010
  • 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 8 Accelerating Your Success™
  • 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 9 Accelerating Your Success™
  • Market Focus
  • Becoming a “Trusted Advisor” 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 The channel partner of the future assets (public or private cloud) is a trusted advisor to their Line executives are challenging customer – understanding not only technology, but also its application IT to support new, differentiated and its business value. applications and service levels11 Accelerating Your Success™
  • Serving a Very Large and Growing Market TS Served Available Market 1,200 $1,087 $1,034 $984 $914 $946 900 US$Billions 600 300 0 2009 2010 2011 2012 2013 Accelerating Your Success™ Source: Gartner, IDC & iSuppli – Nov 2010
  • Segmenting for Optimal Growth Govt & Edu (5) Banking (4) Retail (3) Healthcare (2) 30% Utilities (1) 25% a Cloud (a) Vertical Growth 20% Technology Growth 3 Yr CAGR 2010-2013 b Mobility (b) 15% c Virtualization (c) 10% d Security (d) 2 Collaboration (e) e 5% 1 f 4 5 Networking (f) TAM CAGR, 3 4.7% g Storage (g) 0% $0 $50 $100 $150 $200 $250 2010 IT Spend Source: Gartner & IDC Oct 201013 Accelerating Your Success™
  • Extending the Value Chain with SolutionsPath® Avnet interprets market needs, creates differentiated enablement programs and aggregates products & services to help our partners become trusted advisors. Industry, technology, application and customer expertise… Market Focused and C-Suite Decision Makers Line of Business Executives • NetworkPath™ Avnet Services FinancialPath™ CloudReady™ EnergyPath™ HealthPath® RetailPath™ • VirtualPath® GovPath™ • MobilityPath™ • SecurePath™ • StoragePath™ Customer Intimate …with a repeatable, scalable enablement framework.14 Accelerating Your Success™
  • Increasing Supplier, Reseller and End-UserValue Envision – Enable – Execute with our proven SolutionsPath® methodology “Thanks to Avnet’s HealthPath® University and Internship and the skills that we have been able to further develop with their Service delivery 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 Demand creation Strategic engagement & go-to-market strategy Training and enablement “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 Avnets resources and programs that Analytics & market they have developed to help IBM Business Partners sell opportunity identification complete solutions that meet the business needs of IBMs 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 15 Accelerating Your Success™
  • 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. cloud Traditional IT Products -- 5% CAGR /klaʊd/ Public IT Cloud Services -- 27% CAGR Private IT Cloud Services (prelim) – 36% –noun CAGR 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). Source: IDC 2010 (note: Private IT Cloud16 Accelerating Your Success™ Services are IDCs preliminary estimates)
  • Private Cloud – Avnet is Here, Now Avnet occupies a unique and differentiated place in the value chain for customers evaluation and migrating to cloud solutions. 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 17 Accelerating Your Success™
  • 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 Predicting the impact of the internet 10 years ago is  The channel will always find its role and a way to add value analogous to predicting the  We consider team, time and tempo in all impact of the cloud today. Avnet endeavors is positioned to succeed, along with our trading partners. 18 Accelerating Your Success™
  • Global Expansion
  • Going Where the Growth Is We continue to invest in markets that will provide the greatest growth opportunity, organically and through value-creating acquisitions. New Growth Spend by Region Middle North IT Spend Forecast East/Africa 4% America 44% $1,087B Eastern Europe 4% $1,034B Japan 4% $984B $141B Latin $946B America 8% Western Asia/Pac Europe 2010 2011 2012 2013 19% 17% Source: Gartner, IDC & iSuppli – Oct 2010 *Note: Data represents breakdown of net new IT Spend Growth between 2010 to 201320 Accelerating Your Success™
  • Extending our Global Footprint Americas EMEA Asia $5.1B Revenue $2.5B Revenue $1.1B Revenue 17% YoY Growth 16% YoY Growth 79% YoY Growth Recent Acquisitions Avnet TS-Served Countries Recent Acquisitions Bell Micro (NA, LAC, EMEA) ~~~ Tallard (LAC) ~~~ Datamation (Indonesia) ~~~ itX (Australia) ~~~ Sunshine (Vietnam) 21 Accelerating Your Success™ Avnet Revenue & Growth based on Rolling 4 Qtrs Q1FY11
  • Expanding Partnerships* for Global Reach We expand our line card to support our solutions distribution vision and provide our suppliers global market reach and operational scale. EMEA Asia TS Global Line Card  Oracle (UK, Belgium, Luxembourg,  Oracle (Australia) Switzerland, Ireland, Hungary, Slovakia,  Dell (Vietnam) Czech Republic, 16 countries in MENA)  HP (Vietnam and Indonesia)  HP (Hungary, UK)  NetApp (India)  Juniper (Poland, Czech Republic)  VMware (Indonesia)  NetApp (Ireland, Netherlands, Germany,  IBM (Indonesia, Vietnam) UK)  EMC/Data Domain (Mostly Eastern Europe)  VMware (Eastern Europe) Americas  Avaya (Belgium, Ireland, Netherlands, Poland)  NetApp Services  ShoreTel (pan European)  SyncSort  Symantec (Ireland, UK, Netherlands,  CommVault Czech Republic, Slovakia)  Quantum  Brocade IP (Eastern Europe)  Apple (Latin America)  HDS (France, Germany, Austria, Hungary)  IBM (Latin America)  Microsoft (UK)  Riverbed  IBM (Belgium, Netherlands, Turkey)  Oracle (Brazil, Mexico)22 Accelerating Your Success™ *Significant 2010 line card additions by region
  • PortfolioManagement
  • Managing Regional Priorities TS remains committed to value-based, portfolio management to drive our committed financial returns in each region. Americas EMEA Asia▪ Continue to drive ▪ Continue driving toward ▪ Accelerate drop-through profitable growth targeted financial returns with operational focus▪ Expand in LAC, with a ▪ Leverage and scale ▪ Continue to balance focus on improving regional expertise for pan- expansion opportunity with profitability European support profitability▪ Maintain strong regional ▪ Expand appropriately in ▪ Strengthen the line card to ROWC performance high-growth geographies support our solutions and global growth strategies ▪ Strengthen the line card to support our solutions and global growth strategies24 Accelerating Your Success™
  • 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.25 Accelerating Your Success™
  • Q&A