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Investor Day 2010
Investor Day 2010
Investor Day 2010
Investor Day 2010
Investor Day 2010
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Investor Day 2010
Investor Day 2010
Investor Day 2010
Investor Day 2010
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Investor Day 2010
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Investor Day 2010
Investor Day 2010
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Investor Day 2010
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Investor Day 2010

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  • 1. INVESTOR DAY 2010 Emerging even stronger from challenging times
  • 2. WELCOME Mike Taunton Vice President & Treasurer
  • 3. AGENDA SESSION I 8:30 – 10:00 Welcome Mike Taunton Strategic Overview Mike Long Global Components Peter Kong Global ECS Andy Bryant Strategy Q&A All 10:00 – 10:15 Coffee Break SESSION II 10:15 – 11:00 Financial Overview Paul Reilly Finance Q&A All Closing Remarks Mike Long Investor Day 2010 Page 3
  • 4. SAFE HARBOR STATEMENT This presentation 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. Investor Day 2010 Page 4
  • 5. STRATEGIC OVERVIEW Mike Long Chairman, President, and CEO
  • 6. SUCCESSFUL COMPANIES… …Emerge from the downturn as the post-recession industry leader Key actions taken by post- A Foundation of Strength recession leaders Supply Chain Efficiently managed Profitable market share growth Maximize cash flow Working Capital Best-in-class levels Radical simplification of business Acquire for strategic gains Expense Reduced costs by Reductions $225MM annually Strengthen capital structure Earnings 11x last downturn Cash Flow Generated $5.7Bn in cash since 2001 Balance Sheet Strongest balance ever, <$300MM in net debt, net debt/cap ~8%* *As of December 31, 2009. Investor Day 2010 Page 6
  • 7. GLOBAL COMPONENTS TOTAL AVAILABLE MARKET Significant opportunity to increase our share of the market $70 $60 Core Components TAM ($ Bn) $25 $25 $25 $25 $24 $25 $50 $23 $23 DTAM $22 $22 $21 $22 $20 $20 ~ 24% $40 $17 $30 $40 $40 $39 $42 $40 $42 $20 $37 $36 $35 $37 $38 $34 $32 $33 $27 $10 $0 Q3'06 Q4'06 Q1'07 Q2'07 Q3'07 Q4'07 Q1'08 Q2'08 Q3'08 Q4'08 Q1'09 Q2'09 Q3'09 Q4'09 Q1'10 SEMI PEMCO Source: SIA; core component TAM excluding memory and microprocessors, excluding Japan. Investor Day 2010 Page 7
  • 8. WORLDWIDE IT TOTAL AVAILABLE MARKET Global ECS well positioned to capitalize on market growth… Worldwide Market TAM Targeting large, growing ($Bn) markets Servers $48 SMB market is forecasted to be a Storage $29 $57Bn market Software and services Networking $135 have high gross margins and low working capital Infrastructure software $86 requirements Services $297 Source: IDC and industry estimates. Investor Day 2010 Page 8
  • 9. ARROW’S STRATEGIC FRAMEWORK Shift investment to sales excellence while maximizing our core infrastructure capability for earnings growth and cash generation Profitable Focus on high- growth/vertical markets Market Share Geographic expansion Revenue Growth Expand services n ne nd Solution selling tio Optimize Gross ge t a ra Demand creation Profit sh en Improved value-added Margin ca tm content al es ion inv dit ift ad Sh Operational Efficiency Lean cost structure Business simplification Operational excellence Costs Investor Day 2010 Page 9
  • 10. PROFITABLE MARKET SHARE GROWTH Market share enables Arrow to: Be a Be a driving force respected partner in the industry to suppliers and customers Offer comprehensive Have the value and services to sales force coverage increase margins we need to increase customer count Investor Day 2010 Page 10
  • 11. PROFITABLE MARKET SHARE GROWTH Aggressively grow the top line Increase customer penetration Solution sales outpacing piece part sales Bring suppliers technology to market New/Expanded Global Components New/Expanded ECS Supplier Relationships Supplier Relationships Investor Day 2010 Page 11
  • 12. OPTIMIZE GROSS PROFIT Translating Arrow’s value proposition into increased profitability Supplier Customer Expectations Expectations Most efficient provider Global footprint and Clear route to market Arrow’s broad line card Value-added services Dedicated to driving growth Value Drive demand Technical/engineering $ $ generation expertise Proposition Proactive engineering Financial strength support Financial support The sweet spot of our value is where Arrow capabilities match supplier and customer expectations Investor Day 2010 Page 12
  • 13. EXPANDING VALUE-ADDED SERVICES: STRATEGIC INTENT Accelerate profitable sales Grow sales faster than growth with existing portfolio core business Expand our value proposition Grow margins faster than across the product lifecycle sales Building solutions in reverse Deliver "Best in Class" logistics customer service Build global brand identity & Expand addressable affinity for Arrow Services market Become the #1 player in a $225Bn + total addressable market Investor Day 2010 Page 13
  • 14. VALUE-ADDED SERVICES: DRIVING DIFFERENTIATION & PROFITS We have not yet begun to penetrate the services opportunity Global Components ECS Services Services $75Bn + TAM $150Bn TAM Less than 1% share Less than 1% share One of our largest growth opportunities Investor Day 2010 Page 14
  • 15. OUR STRATEGY Accelerate sales Sales excellence Growth in existing and new nts ne G Gll markets o ob ob mp Enhance our value proposition all Co A A lue dd dd EC EC ERP Va e ed al & with increased value-added S S ob Worldwide Infrastructure Gl High Margin / Low Cost services Services Capitalize on our foundation of Financial Strength strength Drive execution with best-in-class operational efficiency Investor Day 2010 Page 15
  • 16. OPERATIONAL EFFICIENCY We have improved efficiencies and reduced costs by more than $225 million during the downturn, resulting in a record low level of opex/sales 30% 15% 14% 20% 13% Y/Y % Change Opex*/Sales 10% 12% 11% 0% 10% -10% 9% 8% -20% 7% -30% 6% Q1-07 Q2-07 Q3-07 Q4-07 Q1-08 Q2-08 Q3-08 Q4-08 Q1-09 Q2-09 Q3-09 Q4-09 Q1-10 Operating Expense* Sales Opex*/Sales *Represents GAAP measure adjusted to exclude the impact of restructuring and other items affecting comparability. Investor Day 2010 Page 16
  • 17. FIRST QUARTER RESULTS Emerging even stronger from challenging times Q1 sales and EPS well ahead of expectations Achieved record level of sales for any Q1 Operating income and ROIC almost Total Sales ($ Bn) doubled Y/Y $4,235 ROIC of 12.1% $4,028 Results demonstrate significant operating $3,498 $3,417 leverage Operating income growth substantially outpaced sales growth Impressive financial strength allows us to continue to invest in the business Value-added services Q1-07 Q1-08 Q1-09 Q1-10 Vertical markets Geographic expansion Investor Day 2010 Page 17
  • 18. GLOBAL COMPONENTS Peter Kong President, Global Components
  • 19. ARROW GLOBAL COMPONENTS Our components business provides value-added services for OEMs and EMS companies Presence in 46 countries and territories across North America, Europe, and Asia-Pacific 2009 Revenue $9.8Bn Market share leader in North America, leading player in Europe and Asia 35% Over 110,000 customers across all end markets and 36% geographies 29% A large portion of our customer base uses one or more value-added service Ship over 36,000 line items per day and manage over 1 million part numbers Americas EMEASA Asia/Pacific Investor Day 2010 Page 19
  • 20. UNMATCHED LINE CARD TOUCHING ALL TECHNOLOGIES We have a broad technology portfolio with more than 800 suppliers Connectors 6% Semi = 70% Electromechanical 4% Analog 24% PEMCO = 18% Passives 9% Computing/ memory = 12% Computing/Memory* 12% ASIC/Application Specific/Opto 13% Microcomponents* 12% Discrete/Logic 21% *Primarily MCU/MPU and non-DRAM memory. Investor Day 2010 Page 20
  • 21. GLOBAL COMPONENTS STRATEGY Global WW footprint Maximize global presence relationships Broad line card Design support Lead with solutions Solution orientation Value-added Demand Excess Differentiated Value Proposition creation management Value-add Large customer intimacy Effective go-to-market model Vertical focus for mid size Small enterprise Arrow Advantage Business Operational Most Efficient Provider simplification excellence Investor Day 2010 Page 21
  • 22. VALUE IS REALIZED DIFFERENTLY ACROSS THE WORLD Americas Design work for high- growth markets Value-added service Europe is rewarded Pan-European brand Supply chain Country-based solutions purchasing Asia Value-added service Diverse business is rewarded models Rapid pace of change Fastest growing market worldwide Investor Day 2010 Page 22
  • 23. OUR FOCUS IS UNCHANGING We have never been as strong competitively Relationships Sales Excellence Partner of Value-Added Services Choice Superior Execution Strong Financial Position Investor Day 2010 Page 23
  • 24. GLOBAL COMPONENTS GO-TO-MARKET MODEL Large Customers – Global EMS and OEM’s, Local Mega’s Single point of contact at global level for global customers Enhance customers’ engagement and satisfaction from design to 18% production Offer broad line card, supply chain solutions Core – Medium Customer Focus 77% Regionally managed customers Optimize market segmentation, new customer growth Invest in under-penetrated geographies, emerging technologies and growth segments Small/Emerging – ArrowAdvantage 5% Dedicated team, supported via all COMMUNICATION • CONSUMER • COMPUTING • LIGHTING • AEROSPACE countries & DEFENCE • MEDICAL • ALTERNATE ENERGY Grow potential emerging customers to core (medium) Design Services Broad Line Card Supply Chain Services On-line internet search capability Investor Day 2010 Page 24
  • 25. PROFITABLE MARKET SHARE GROWTH Expanding into attractive markets aligned with our strategy Americas EMEA Asia Pacific Lighting Lighting Lighting Medical Emerging Markets Consumer Aerospace & Defense Aerospace & Defense Industrial Alternative Energy Transportation Communication Investor Day 2010 Page 25
  • 26. PROFITABLE MARKET SHARE GROWTH Concentration on high-growth markets – lighting Current business $175MM Expected to double in 2010 WW high-brightness LED market is growing $2Bn per year 32% CAGR 2009-2013 $3 of related products for every $1 LED sold Technology has advanced New and emerging applications LED reliability and lifetime advantages Lumens/watt surpass traditional light sources Regulatory and green impact California Title 24, Energy Star No mercury/lead, incandescent bans Economics are starting to make sense Maintenance avoidance Improved lumens/$ = lower initial fixture cost Energy savings Investor Day 2010 Page 26
  • 27. PROFITABLE MARKET SHARE GROWTH Concentration on high-growth markets – alternative energy Gaining traction due to government standards and tax benefits as well as rising costs in traditional energy European standards and carbon trading U.S. stimulus funding and tax breaks are sustaining pricing parity Tightening state standards in NJ, CA, and CO 30 million homes will have meters by end 2011 Emerging market for Home Area Network (HAN) devices Higher acceptance of renewable energy demand It’s where the money is going VC and private equity invested $3.5Bn in 2009 DOE invested $3.4Bn into Smart Grid projects in 2009 It’s where the jobs are going “Clean Energy” job growth outpacing other industries Solar, wind and Smart Grid at the top of list Investor Day 2010 Page 27
  • 28. GLOBAL COMPONENTS 2010 PRIORITIES Profitable Optimize Sales Mix Market High-growth markets Share Growth Demand creation Increase Margins Optimize Engagement with suppliers and customers Gross Profit Value-added services Operational Efficiency Pan European model Operational Efficiency Shared service centers Investor Day 2010 Page 28
  • 29. GLOBAL ECS Andy Bryant President, Enterprise Computing Solutions
  • 30. SNAPSHOT OF ARROW ECS Global, pure play value-added distributor 2009 Revenue 2009 sales of $4.9 billion (33% of Arrow’s total $4.9Bn sales) Presence in 26 countries across North America and Europe 28% 72% Over 2,200 employees Positioned to provide end-to-end data center solutions North America Loyal and successful partner base EMEA Specialized Channel Management services focused on the next wave of IT growth Investor Day 2010 Page 30
  • 31. ECS STRATEGY Pan-regional operating models Maximize global presence Emerging markets Professional services Lead with solutions Solution orientation Security Networking Focus on high growth sectors Storage Services management Focus on core business Enterprise and mid-market leader Mid-market initiative ERP (North America) Most Efficient Provider Web-based tools Investor Day 2010 Page 31
  • 32. ECS CORE MARKETS Product Growth Rates Mid Range: 5% Services: 3% (2009 to 2013): Volume: 2% Software: 5% Storage: 2% Networking: 4% Geography Growth Rates: North America: 4% Europe: 3% Supplier Consolidation among suppliers will continue 2009 ECS Product Mix* High Growth Sectors Y/Y Growth Q1 2010 Other 2% Services Proprietary 16% Servers 20% ISS 7% Software 33% Storage 22% Source: IDC; *Based on billings. Investor Day 2010 Page 32
  • 33. DISCIPLINED APPROACH TO PROFITABLE GROWTH ECS Worldwide Revenue Industry- leading working capital metrics 09 -20 2 00 6 A GR 26 %C Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 2006 2009 Investor Day 2010 Page 33
  • 34. OUR VISION A specialist in infrastructure solutions of leading edge technologies, delivering best of class channel management services Channel Management Channel Value-Added development Distribution Market development Expertise in sales, & professional pre-sales, marketing services and post-sales Broad Line support Market: enterprise & Distribution mid-market Market: enterprise Logistic & financial accounts Infrastructure support solutions Enterprise products Market: retail & small business From Supplier to VAR to End-User, our value Volume products proposition stems from managing the value chain (PC’s) for our partners Investor Day 2010 Page 34
  • 35. TOTAL IT SPEND WORLDWIDE Growth in IT spending returns $1,800 15% $1,600 10% $1,400 IT Spend ($Bn) Y/Y % Change 5% $1,200 $1,000 0% $800 -5% $600 $400 -10% 1999 2000 2001 2002 2003 2004 2005 2006 2007 2008 2009 2010E 2011E 2012E Source: IDC. Investor Day 2010 Page 35
  • 36. IT ENTERPRISE LANDSCAPE Private Cloud Unified Storage Data Communication Virtualization Center Security Server Network Public Cloud Convergence and Cloud Drive Demand for New Infrastructure Investor Day 2010 Page 36
  • 37. ARROW ECS GO-TO-MARKET MODEL Pure-play enterprise value-added distributor Arrow ECS Virtualization & Infrastructure Software Professional Services Shared Services Specialists in enterprise infrastructure solutions of leading edge technologies Investor Day 2010 Page 37
  • 38. ARROW ECS GO-TO-MARKET MODEL Optimize the leverage points in the operating model Arrow ECS Virtualization & Infrastructure Software Professional Services Shared Services Growth Superior growth rates in storage, networking, virtualization, and security Growing 2x faster than market Above market growth in servers Investor Day 2010 Page 38
  • 39. ARROW ECS GO-TO-MARKET MODEL Optimize the leverage points in the operating model Arrow ECS Virtualization & Infrastructure Software Professional Services Shared Services Return on Software drives higher returns on capital Working Capital Enables a solution sale Investor Day 2010 Page 39
  • 40. ARROW ECS GO-TO-MARKET MODEL Optimize the leverage points in the operating model Arrow ECS Virtualization & Infrastructure Software Professional Services Shared Services Margin Increased mix of services drives higher gross Enhancement margins Investor Day 2010 Page 40
  • 41. ARROW ECS GO-TO-MARKET MODEL Optimize the leverage points in the operating model Arrow ECS Virtualization & Infrastructure Software Professional Services Shared Services Productivity Increase operational excellence to drive higher levels of productivity Maximize operating leverage Investor Day 2010 Page 41
  • 42. GLOBAL ECS 2010 PRIORITIES Profitable Optimize Sales Mix Market Expand our line card around leading technologies Share Driver higher levels of services revenue Growth Invest in high growth market segments Increase Margins Optimize Engagement with suppliers and customers Gross Profit Solution selling Operational Efficiency Operational Leverage ERP platform Efficiency Service centers European integration Investor Day 2010 Page 42
  • 43. STRATEGY Q&A
  • 44. COFFEE BREAK
  • 45. AGENDA SESSION I 8:30 – 10:00 Welcome Mike Taunton Strategic Overview Mike Long Global Components Peter Kong Global ECS Andy Bryant Strategy Q&A All 10:00 – 10:15 Coffee Break SESSION II 10:15 – 11:00 Financial Overview Paul Reilly Finance Q&A All Closing Remarks Mike Long Investor Day 2010 Page 45
  • 46. FINANCIAL OVERVIEW Paul Reilly EVP, Finance & Operations and CFO
  • 47. DELIVERING FROM A FOUNDATION OF STRENGTH Revenue ($Bn) Operating Expense*/Sales $14.7 15.0% (570) bps $7.3 11% CAGR 9.3% 2002 2009 2002 2009 EBITDA* ($MM) Diluted EPS* $445 $1.68 $253 8% 41% CAGR CAGR $0.15 2002 2009 2002 2009 *Represents GAAP measure adjusted to exclude the impact of restructuring and other items affecting comparability. Investor Day 2010 Page 47
  • 48. DELIVERING FROM A FOUNDATION OF STRENGTH Available Liquidity ($MM, inc. cash) Total Debt ($MM) $2,537 $2,093 $1,444 $1,399 2002 2009 2002 2009 Net Debt to Capital Net Debt to EBITDA* 53% 5.5x 8% 0.6x 2002 2009 2002 2009 *Represents GAAP measure adjusted to exclude the impact of restructuring and other items affecting comparability. Investor Day 2010 Page 48
  • 49. FIRST QUARTER RESULTS Emerging even stronger from challenging times Operating income growth substantially outpaced sales growth Almost doubled Y/Y Significant operating leverage Operating income grew 3x and 11x faster than sales Y/Y and Q/Q, respectively Focused management of working capital Return on working capital reached record Q1 level Efficiently manage all levers of working capital Balance sheet and capital structure remain strong Conservative debt levels and maturity profile Net debt to capital near record low level Net debt to EBITDA less than 1x Committed liquidity facilities provide flexibility to take advantage of opportunities that may arise Investor Day 2010 Page 49
  • 50. EVOLUTION OF OUR BUSINESS Capitalizing on the opportunities of the markets served 2002 2009 $7B ECS $15B Americas Europe 23% Asia 10% ECS 9% Americas 28% Americas 30% ECS Americas Europe 24% 20% Europe 33% Asia Global Components 23% Global ECS Investor Day 2010 Page 50
  • 51. WE HAVE FUNDAMENTALLY CHANGED THE WAY OUR COMPANY IS RUN 2002 2009 Variance Net Sales $7.3Bn $14.7Bn 102% Opex/Sales 15.0% 9.3% (570) bps Operating Income* $173MM $378MM 118% EPS* $0.15 $1.68 1,020% WC/Sales $.22 $.12 (46%) ROWC 9.4% 20.2% 1,080 bps ROIC** 3.5% 7.6% 410 bps Net Debt $1.4Bn $262MM (81%) *Represents GAAP measure adjusted to exclude the impact of restructuring and other items affecting comparability. **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 $150MM). Investor Day 2010 Page 51
  • 52. OPERATING AT GREATER LEVELS OF EFFICIENCY We should see more operating leverage coming out of this downturn… ($ Millions) 2002 2003 Variance 2009 2010** Variance Sales $7,270 $8,528 17% $14,684 $17,869 22% Gross profit $1,260 $1,421 13% $1,751 $2,223 27% GP % 17.0% 16.7% -30 bps 11.9% 12.4% +50 bps Operating expenses* $1,087 $1,179 8% $1,373 $1,570 14% % of sales 15.0% 13.8% -120 bps 9.3% 8.8% -50 bps Operating Income* $173 $242 40% $378 $653 73% OI % 2.4% 2.8% +40 bps 2.6% 3.7% +110 bps EPS* $0.15 $0.74 393% $1.68 $3.23 92% *Represents GAAP measure adjusted to exclude the impact of restructuring and other items affecting comparability, **Based on First Call consensus. Investor Day 2010 Page 52
  • 53. CREATING SHAREHOLDER VALUE ROIC > WACC Generate positive cash flow throughout the cycle Manage working capital at “best-in-class” levels Absolute EPS EPS growth Differentiated operating income margin Investor Day 2010 Page 53
  • 54. FINANCIAL UPDATE Global Components Actual 2007 Pro Forma 2007 Variance Americas % of sales 41% 37% EMEA % of sales 37% 32% Asia Pac % of sales 22% 31% Global Components Net Sales $11,224 $13,017 16% Operating Margin* 5.4% 5.1% -30 bps Global ECS North America % of sales 82% 72% ROWC Europe % of sales 18% 28% +190 bps Global ECS WC/sales Net Sales $4,761 $5,428 14% -150 bps Operating Margin* 4.1% 4.1% Flat Total Arrow Net Sales $15,985 $18,445 15% Operating Income $699 $775 11% Operating Margin* 4.4% 4.2% -20 bps EPS – Diluted* $3.29 $3.83 16% *Excludes special charges; NAC pro forma includes A.E. Petsche, Euro/USD Fx Rate at 1.3800. Investor Day 2010 Page 54
  • 55. OUR FINANCIAL GOALS ALL DRIVEN BY MIX Previous Long-Term Targets Updated Long-Term Targets Operating Income* Operating Income* Global Components 5.7% - 7.0% Global Components 5.3% - 6.6% Global ECS 4.6% - 5.3% Global ECS 4.3% - 5.0% Consolidated 4.5% - 5.8% Consolidated 4.1% - 5.4% ROIC** 12.5% - 15.0% ROIC** 12.5% - 15.0% *Excludes special charges **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) Investor Day 2010 Page 55
  • 56. ERP PROGRESS AND FOCUS TO DATE Estimated Global ERP Expense & Benefits Update Project cost $350MM ROI 20% + Annual $75MM benefits Completion 2011 date GFS delivered on time and on budget ECS North America delivered on time and on budget Successful pilot implementation in Australia/New Zealand (global components) On track to transition Northern Europe (components) in Q3 2010 Investor Day 2010 Page 56
  • 57. ERP PROGRESS AND FOCUS TO DATE Estimated Global ERP Expense & Benefits Update Project cost $350MM Project cost ~ $425MM ROI 20% + ROI ~ 20% Annual Annual $75MM $75MM + benefits benefits Completion Completion 2011 2012 date date GFS delivered on time and on budget ECS North America delivered on time and on budget Successful pilot implementation in Australia/New Zealand (global components) On track to transition Northern Europe (components) in Q3 2010 Completion of Global Components transition moved out to 2012 Risk adverse approach to implementations Change management/preparation Business has changed since ERP began Investor Day 2010 Page 57
  • 58. CONSISTENT GENERATOR OF EARNINGS We have generated industry leading EPS in the last five years $12.39 $11.05 $10.82 $7.52 $6.45 $6.38 $1.63 $0.79 $0.21 ARW Earnings Per Share* *Cumulative EPS for the last five years beginning July 1, 2005; Source: company financial statements; Represents GAAP basis (excluding goodwill impairments) through 1Q10; Companies included: AVT, IM, SNX, TECD, BHE, CLS, FLEX, JBL. Investor Day 2010 Page 58
  • 59. IN SUMMARY… Our financial discipline and strategic vision will serve us well We are well positioned to perform well throughout the economic driven or secular cycle Diversified revenue stream Opportunities for organic growth More flexible cost structure Very strong balance sheet with significant liquidity Consistent cash flow generator We are continually looking for ways to operate our business more efficiently We are committed to achieving our financial targets and in turn to increasing shareholder value Investor Day 2010 Page 59
  • 60. FINANCE Q&A
  • 61. CLOSING REMARKS Mike Long Chairman, President, and CEO
  • 62. DELIVERING THE VALUE Maximize Arrow’s value for customers and suppliers Understand the needs Customers Metrics Needs Align Arrow’s Suppliers capabilities to the need Relationships Create a valued offering Valued Metrics and Arrow measurements to Offerings Capability determine success Get the full value for the services that we provide Investor Day 2010 Page 62
  • 63. KEY TAKE-AWAYS Exited the downturn as an industry leader Executing on strategic vision for profitable market share growth Accelerate sales growth Expand our value proposition Outgrow the market Impressive financial strength and flexible capital structure Significant operating leverage in the model Strong EPS growth Generate premium returns for shareholders Investor Day 2010 Page 63
  • 64. INVESTOR DAY 2010 Emerging even stronger from challenging times

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