Fourth Quarter and Year-
End 2008 Earnings Call
February 10, 2009

WELCOME
Greer Aviv
Financial Analyst,
Investor Relations

SAFE HARBOR STATEMENT
Some of the comments to be made on today’s call may include forward-looking statements,
including statements addressing future financial results. These statements are subject to
numerous assumptions, risks, and uncertainties, which could cause actual results or facts to
differ materially from such statements for a variety of reasons, including, but not limited to:
industry conditions, the company's implementation of its new global financial system and the
company's planned implementation of its new enterprise resource planning system, changes
in product supply, pricing and customer demand, competition, other vagaries in the global
components and global ECS markets, changes in relationships with key suppliers, increased
profit margin pressure, the effects of additional actions taken to become more efficient or
lower costs, and the company’s ability to generate additional cash flow. Forward-looking
statements are those statements, which are not statements of historical fact. These forward-
looking statements can be identified by forward-looking words such as \"expects,\"
\"anticipates,\" \"intends,\" \"plans,\" \"may,\" \"will,\" \"believes,\" \"seeks,\" \"estimates,\" and similar
expressions. Shareholders and other readers are cautioned not to place undue reliance on
these forward-looking statements, which speak only as of the date on which they are made.
The company undertakes no obligation to update publicly or revise any of the forward-looking
statements.
Fourth Quarter and Year-End Earnings
February 10, 2009
Page 3

BUSINESS
OVERVIEW
Bill Mitchell
Chairman & CEO

OVERVIEW
Executing well in a challenging environment…
Q4 revenue and EPS in line with expectations
Macro pressures intensified in Q4
Demand weakness continued into Q1
Limited visibility for at least the next few quarters
Managing business with discipline to stay ahead of the curve
Cost reduction efforts will allow us to navigate through difficult
times
Emerge from downturn as a stronger company
Still selectively investing in the future of Arrow
Ready to take advantage of opportunities that may arise
Fourth Quarter and Year-End Earnings
February 10, 2009
Page 5

OVERVIEW
2008 in review…
Continued to execute on strategic goals
Increased global footprint with strategic acquisitions
Achieved major ERP milestone
Successful transition of North American Sun group in April
Transitioned North American IBM group in early February
On track to transition additional businesses throughout 2009
Maintained financial strength
Grew sales faster than the market in 2008 to achieve record
level revenue
8th consecutive year of cash flow generation with $620 million in
cash flow from operations
Net debt to capital near historically low levels
Fourth Quarter and Year-End Earnings
February 10, 2009
Page 6

BUSINESS UNIT
REVIEW
Mike Long
President & COO

TAKING ACTION TO ADJUST COST STRUCTURE
Taking action to offset intensified macro challenges
Maintain financial strength and leadership position
Implemented a number of cost-saving initiatives
Eliminated all discretionary spending
Facility closings/consolidations
Headcount reductions
Lower incentive structures and elimination of salary increases
Furloughs
Actions expected to reduce annual operating expenses by more than $175
million
Selectively investing in the business
We will continue to evaluate cost structure to identify additional
opportunities to improve our productivity
Remain committed to ongoing efforts to improve efficiencies across our
organization
Fourth Quarter and Year-End Earnings
February 10, 2009
Page 8

GLOBAL ENTERPRISE COMPUTING SOLUTIONS
Sales in line with guidance
Double-digit sequential increases in storage, software, services,
and proprietary servers; weakness in industry standard servers
Value model remains strong even as overall IT spending continues to
slow
Focused on high-growth enterprise markets like storage and
software, and mid-range server business
Looking ahead, visibility continues to be extremely limited
IT spending will remain soft as macro issues continue to impact
customer behavior
Q1 sales at the higher end of the seasonal sequential decline
Fourth Quarter and Year-End Earnings
February 10, 2009
Page 9

GLOBAL COMPONENTS REGIONAL PERFORMANCE
Asia Pacific
Sales growth negatively impacted by the global economic crisis
Began to see deterioration in business conditions in mid-November
Taiwan outperformed expectations in December
Europe
Sales decline accelerated in December
Emerging markets continue to show growth, although at slower pace
Lighting market continues to show strength
North America
Demand slowdown accelerated in December
Customer shutdowns in response to downturn
Some vertical markets have been more resilient
Fourth Quarter and Year-End Earnings
February 10, 2009
Page 10

GLOBAL COMPONENTS LEADING INDICATORS
Pricing relatively stable
Lead times at low end of normal range
Book-to-bill slightly below parity
Increased Q/Q in Europe
North America and Asia Pac decreased as orders have slowed
Cancellation rates increased in all regions
Quarterly customer survey in North America
Customers continue to be very cautious
Outlook for purchase requirements weakened sequentially
Expect cautious behavior to continue
Fourth Quarter and Year-End Earnings
February 10, 2009
Page 11

FINANCIAL
OVERVIEW
Paul Reilly
Senior Vice President
& CFO

CONSOLIDATED SALES
($ in millions)
Sales $4.1Bn
$4,419
-7% Y/Y, -5% Q/Q
$4,090
-9% Y/Y, -1% Q/Q
$3,493
pro forma* & excluding FX
$2,960
Q4-05 Q4-06 Q4-07 Q4-08
* LOGIX S.A.
Fourth Quarter and Year-End Earnings
February 10, 2009
Page 13

GLOBAL ENTERPRISE COMPUTING SOLUTIONS
($ in millions)
Sales $1.6Bn
$1,640
$1,608
+2% Y/Y, +26% Q/Q
20th consecutive
quarter of Y/Y growth
-10% Y/Y, +29% Q/Q pro
forma* & excluding FX
$761
$574
Operating income grew almost
2.5x sales Q/Q
ROWC increased strongly Y/Y
and Q/Q
Q4-05 Q4-06 Q4-07 Q4-08
* LOGIX S.A.
Fourth Quarter and Year-End Earnings
February 10, 2009
Page 14

GLOBAL COMPONENTS
($ in millions)
Sales $2.5Bn
$2,811
$2,728
-13% Y/Y, -18% Q/Q
$2,450
$2,385
-9% Y/Y, -14% Q/Q
excluding FX
Despite macro challenges,
gross margin increased 10
bps Q/Q
Operating margin pressured
by lower demand and mix
Q4-05 Q4-06 Q4-07 Q4-08
Fourth Quarter and Year-End Earnings
February 10, 2009
Page 15

P&L HIGHLIGHTS
($ in millions, except per share data, may reflect rounding)
4Q08 Q/Q Y/Y
Change Change
Sales $4,090 -5% -7%
Gross Profit Margin 12.7% -40bps -120bps
Operating Exp*/Sales 9.6% -20bps +30bps
Operating Income* $126.6 -11% -38%
Operating Margin* 3.1% -20bps -150bps
Net Income* $72.0 -14% -40%
Diluted EPS* $0.60 -14% -38%
* Represents GAAP measure adjusted to exclude the impact of restructuring and integration and other items affecting comparability. Includes amortization of
intangible assets of $.02. See “Earnings Reconciliation” for a reconciliation between GAAP and “Adjusted” results.
Fourth Quarter and Year-End Earnings
February 10, 2009
Page 16

MAINTAINED FINANCIAL STRENGTH
Cash flow of more than $275MM in Q4
9th consecutive quarter of positive cash flow generation
Financial Stability Competitive advantage in today’s markets
Strong balance sheet
Conservative debt levels
Debt to capital near record low level
Debt to EBITDA less than 2x
No maturities coming due until Q4 2010
Access to $1.4 billion in committed liquidity facilities
Flexibility to take advantage of opportunities that may arise
Focused management of working capital
Achieved record low level of working capital to sales
Continued to earn cost of capital despite macro challenges
Committed to creating shareholder value through all economic cycles
*ROIC = Annualized, tax effected op. income and equity in earnings of affiliates excluding restructuring and other charges - annualized minority interest /( Avg Debt +
Avg Equity – Avg Cash over $150MM).
Fourth Quarter and Year-End Earnings
February 10, 2009
Page 17

CLOSING
COMMENTS
Bill Mitchell
Chairman & CEO

IN CLOSING…
Current macroeconomic environment impacting our financial results
Continue to manage company prudently and focus on superior
execution
Stay ahead of the curve in uncertain times
Despite near-term challenges, we are well positioned to convert market
challenges into future opportunities
Continue to invest in business for the long term, while committed to
achieving identified cost reductions
Actions align cost structure and strategic investments with current
market conditions
Savings provide catalyst for long-term growth when market demand
recovers
Remain focused on protecting financial performance, as well as investments
that will lead to future growth and market share gains
Fourth Quarter and Year-End Earnings
February 10, 2009
Page 19

FIRST QUARTER 2009 GUIDANCE
Consolidated Sales $3.0Bn to $3.6Bn
Global Components $2.0Bn to $2.4Bn
Global ECS $1.0Bn to $1.2Bn
Diluted EPS* $0.32 to $0.44
* Excluding charges, including $.02 estimated amortization of intangible assets.
Fourth Quarter and Year-End Earnings
February 10, 2009
Page 20

QUESTIONS &
ANSWERS

EARNINGS RECONCILIATION
$ in thousands, except per share data
Q408 Q407 2008 2007
Operating income, as Reported $84,334 $193,583 $525,211 $686,905
Restructuring and integration charges 44,354 9,955 70,065 11,745
Preference claim from 2001 (2,051) -- 10,890 --
Operating income, as Adjusted $126,637 $203,538 $606,166 $698,650
Net income, as Reported $43,204 $113,963 $301,360 $407,792
Restructuring and integration charges 37,577 6,598 55,300 7,036
Preference claim from 2001 (1,246) -- 6,576 --
Impact of settlement of tax matters:
Income tax (8,450) -- (8,450) --
Interest (net of taxes) 962 -- 962 --
Deferred tax adjustment -- -- -- (6,024)
Net income, as Adjusted $72,047 $120,561 $355,748 $408,804
Diluted EPS, as Reported $.36 $.92 $2.48 $3.28
Restructuring and integration charges .31 .05 .46 .06
Preference claim from 2001 (.01) -- .05 --
Impact of settlement of tax matters:
Income tax (.07) -- (.07) --
Interest (net of taxes) .01 -- .01 --
Deferred tax adjustment -- -- -- (.05)
Diluted EPS, as Adjusted $.60 $.97 $2.93 $3.29
The sum of the components for net income per share, as Adjusted, may not agree to totals, as presented, due to rounding.
Fourth Quarter and Year-End Earnings
February 10, 2009
Page 22

EARNINGS RECONCILIATION
References to restructuring and other charges refer to the following incremental charges
taken in the quarters indicated:
Q4-08 Restructuring and Integration Charges: During the fourth quarter of 2008, the company recorded a restructuring and integration
charge of $44.4 million ($37.6 million net of related taxes or $.31 per share on both a basic and diluted basis) primarily related to initiatives
taken by the company to improve operating efficiencies.
Q4-08 Legal Settlement: During the fourth quarter of 2008, the company recorded a credit of $2.1 million ($1.2 million net of related taxes
or $.01 per share on both a basis and diluted basis) related to a preference claim from 2001.
Q4-08 Settlement of Tax Matters: During the fourth quarter of 2008, the company recorded a reduction of the provision for income taxes of
$8.5 million ($.07 per share on both a basic and diluted basis) and an increase in interest expense of $1.0 million ($1.0 million net of related
taxes or $.01 per share on both a basic and diluted basis) primarily related to the settlement of certain international income tax matters.
Q4-07 Restructuring and Integration Charges: During the fourth quarter of 2007, the company recorded a restructuring and integration
charge of $10.0 million ($6.6 million net of related taxes or $.05 per share on both a basic and diluted basis) primarily related to initiatives
taken by the company to improve operating efficiencies.
2008 Restructuring and Integration Charges: During 2008, the company recorded a restructuring and integration charge of $70.1 million
($55.3 million net of related taxes or $.46 per share on both a basic and diluted basis), primarily related to initiatives taken by the company
in the period to improve operating efficiencies.
2008 Legal Settlement: During 2008, the company recorded a charge, including legal fees, related to a preference claim from 2001 of $10.9
million ($6.6 million net of related taxes or $.05 per share on both a basis and diluted basis).
2008 Settlement of Tax Matters: During 2008, the company recorded a reduction of the provision for income taxes of $8.5 million ($.07 per
share on both a basic and diluted basis) and an increase in interest expense of $1.0 million ($1.0 million net of related taxes or $.01 per
share on both a basic and diluted basis) primarily related to the settlement of certain international income tax matters.
2007 Restructuring and Integration Charges: During 2007, the company recorded a restructuring and integration charge of $11.7 million
($7.0 million net of related taxes or $.06 per share on both a basic and diluted basis), primarily related to initiatives taken by the company in
the period to improve operating efficiencies and the acquisition of KeyLink.
2007 Deferred Tax Adjustment: During 2007, the company recorded an income tax benefit of $6.0 million, net, ($.05 per share on both a
basic and diluted basis) principally due to a reduction in deferred income taxes as a result of the reduction in the statutory tax rate in
Germany.
Fourth Quarter and Year-End Earnings
February 10, 2009
Page 23

APPENDIX

NORTH AMERICAN COMPONENTS REVENUE
($ in millions)
$1,158
$1,144
$1,106
$966
Q4-05 Q4-06 Q4-07 Q4-08
Fourth Quarter and Year-End Earnings
February 10, 2009
Page 25

EUROPE COMPONENTS REVENUE
($ in millions)
$998
$957
$828
$786
Q4-05 Q4-06 Q4-07 Q4-08
Fourth Quarter and Year-End Earnings
February 10, 2009
Page 26

ASIA PAC COMPONENTS REVENUE
($ in millions)
$698
$655
$627
$451
Q4-05 Q4-06 Q4-07 Q4-08
Fourth Quarter and Year-End Earnings
February 10, 2009
Page 27

Fourth Quarter and Year-
End 2008 Earnings Call
February 10, 2009