Ingram Micro BuildsYour Business<br />Corporate OverviewFirst Quarter 2009<br />
Forward - Looking Statement<br />Certain comments made in this presentation may be characterized as forward looking under ...
Ingram Micro: A World Leader In IT<br />The world&apos;s largest provider of technology products and services<br />A Fortu...
Approx. 14,500 associates worldwide
Customers in more than 150 countries
Only global broad-based distributor in Asia
108 distribution centers worldwide
Local sales offices and/or representatives in 35 countries</li></ul>Ingram Micro<br />No. 67 on 2009 Fortune 500 list<br /...
The World&apos;s Largest IT Distributor<br />No. 2 in Europe,Middle East & Africa34% of Revenues<br />No. 1 in North Ameri...
A Vital Link In The IT Value Chain…<br />More than 170,000 Resellers<br />More than 1,500 Vendors<br />Sales and Marketing...
…With The Broadest Product OfferingA Stable, Diversified Mix<br />Networking: 10-15%<br />Systems: 25-30%<br />3Com, Cisco...
…Serving The Global IT IndustrySMB To Enterprise<br />Number of companies<br />Fortune 1000<br />1,000<br />Large Business...
Ingram Micro Delivers More<br />
Our Value Proposition<br />We help customers and vendors build their businesses and become more profitable<br /><ul><li>Id...
Enable our partners to focus on their core businesses and leverage ourvast capabilities
Provide customers with the resources for success
Understand today’s market challenges and offer relevant solutions</li></ul>We’re Focused On Your Success!<br />
Services That Solution Providers Need<br />One-stop sourcing<br />Technology support<br />Financing / credit services<br /...
Emerging technologies</li></ul>Automated Identification and Data Capture/Point-of-Sale (AIDC/POS)<br />Digital Convergence...
Customer Benefits<br /><ul><li>Targeted marketing programs
Communities and collaboration
Business services and tools for success</li></ul>Building Communities<br /> Vendor Benefits<br />Market intelligence<br />...
Integrated Go-To-Market Services<br />Logistics Service Offerings<br />Warehousing and Fulfillment <br />Transportation Ma...
Looking Ahead: IT Distribution<br />Innovation and diversification continue<br />Cost management increasingly important<br...
Geographic diversification creates growth opportunities</li></ul>IT Distribution: Industry Insight & Outlook, GTDC, May 20...
The New View Of Distribution<br />&quot;Our distribution partners are integral to our business and doing a terrific job.”<...
An invaluable vital component of our business<br />80% of vendor execs polled described their IT distribution partnerships...
Financial Review<br />
Q1 2009 Financial Results<br />Sales<br /><ul><li>Q1 ’09 worldwide sales of $6.75 billion
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2009 Ingram Corp Overview

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2009 Ingram Corp Overview

  1. 1. Ingram Micro BuildsYour Business<br />Corporate OverviewFirst Quarter 2009<br />
  2. 2. Forward - Looking Statement<br />Certain comments made in this presentation may be characterized as forward looking under the Private Securities Litigation Reform Act of 1995.<br />Those statements involve a number of factors that could cause actual results to differ materially.<br />Additional information concerning these factors may be found in the Company’s 2008 Annual Report on Form 10-K under “Item 1A” and in future filings with the SEC. Copies are available from the SEC, the company Web site, or Ingram Micro Investor Relations.<br />
  3. 3. Ingram Micro: A World Leader In IT<br />The world&apos;s largest provider of technology products and services<br />A Fortune 2009 &quot;Most Admired Company&quot;<br /><ul><li>2008 annual revenues: $34.4 billion
  4. 4. Approx. 14,500 associates worldwide
  5. 5. Customers in more than 150 countries
  6. 6. Only global broad-based distributor in Asia
  7. 7. 108 distribution centers worldwide
  8. 8. Local sales offices and/or representatives in 35 countries</li></ul>Ingram Micro<br />No. 67 on 2009 Fortune 500 list<br />With 30 years experience in IT Distribution<br />* All information as of fiscal year 2008 unless indicated<br />
  9. 9. The World&apos;s Largest IT Distributor<br />No. 2 in Europe,Middle East & Africa34% of Revenues<br />No. 1 in North America41%of Revenues<br />No. 1 in Latin America5% of Revenues<br />No. 1 in Asia-Pacific20% of Revenues<br />Expanded into Africa through joint venture in 2007<br />
  10. 10. A Vital Link In The IT Value Chain…<br />More than 170,000 Resellers<br />More than 1,500 Vendors<br />Sales and Marketing<br />Financing<br />Technical Support<br />Inventory Management<br />Vendor Relations<br />VARs<br />Managed Services<br />Combining a wide array of technologies and products to create the optimum solution<br />
  11. 11. …With The Broadest Product OfferingA Stable, Diversified Mix<br />Networking: 10-15%<br />Systems: 25-30%<br />3Com, Cisco, D-Link, Juniper, Nortel<br />Acer, Apple, Fujitsu-Siemens, HP, IBM, Lenovo, Sony, Toshiba<br />Software: 15-20%<br />Adobe, CA, Intuit Microsoft, Symantec<br />IT Peripherals/CE/DC/POS/Mobility <br />and Others: 40-45%<br />Adaptec, AMD, Canon, Epson, HP, Intel, Kodak, Lexmark, Maxtor, NEC, Polycom, Seagate, Sony, Western Digital, Xerox <br />Source: Company reports and information<br />
  12. 12. …Serving The Global IT IndustrySMB To Enterprise<br />Number of companies<br />Fortune 1000<br />1,000<br />Large Business <br />(1,000+ employees)<br />8,000<br />106,000<br />Mid-size Business <br />(100–999 employees)<br />Mid-size Business <br />(100–999 employees)<br />7.8 million<br />37.4 million<br />Small Business <br />(&lt;100 employees)<br />Small Business <br />(&lt;100 employees)<br />75.0 million<br />Home Office<br />Consumer Households<br />(Non-Home Office)<br />Ingram Micro’s VAR customers target SMB markets, the sweet spot of the IT industry<br />Source: U.S. Market Pyramid - IDC, 2008 Year-End<br />
  13. 13. Ingram Micro Delivers More<br />
  14. 14. Our Value Proposition<br />We help customers and vendors build their businesses and become more profitable<br /><ul><li>Identify and bring new market opportunities to our partners
  15. 15. Enable our partners to focus on their core businesses and leverage ourvast capabilities
  16. 16. Provide customers with the resources for success
  17. 17. Understand today’s market challenges and offer relevant solutions</li></ul>We’re Focused On Your Success!<br />
  18. 18. Services That Solution Providers Need<br />One-stop sourcing<br />Technology support<br />Financing / credit services<br />Broad IT product mix and service solutions<br /><ul><li>High-end storage, enterprise solutions, networking, peripherals, security, software, supplies and systems
  19. 19. Emerging technologies</li></ul>Automated Identification and Data Capture/Point-of-Sale (AIDC/POS)<br />Digital Convergence (Consumer Electronics)<br />Virtualization (ITS Division)<br /><ul><li>Managed Services</li></li></ul><li>Delivering Value To IT Vendors<br />Lower shipping, handling and warehousing costs<br />Exceptional service levels to SMB customers<br />Reach a broader market at a lower cost<br />Efficient collection processes<br />Managing of warranty and returns<br />Ingram Micro is an indispensable business partner – the most valued bridge between our vendors and customers.<br />
  20. 20. Customer Benefits<br /><ul><li>Targeted marketing programs
  21. 21. Communities and collaboration
  22. 22. Business services and tools for success</li></ul>Building Communities<br /> Vendor Benefits<br />Market intelligence<br />Market reach<br />Business development<br />Ingram Financial Services Co. <br />Ingram Micro Service Division <br />Ingram Micro Service Network<br />GovEd Alliance<br />VentureTech Network<br />Ingram Micro builds your success.<br />
  23. 23. Integrated Go-To-Market Services<br />Logistics Service Offerings<br />Warehousing and Fulfillment <br />Transportation Management <br />Customer Service <br />Billing and Collections<br />Supply-Chain Analysis<br />Merchandising and Assembly <br />Reverse Logistics <br />Information Technology<br />Leveraging Ingram Micro’sscale and experience<br />
  24. 24. Looking Ahead: IT Distribution<br />Innovation and diversification continue<br />Cost management increasingly important<br /><ul><li>Economic conditions cloud current outlook
  25. 25. Geographic diversification creates growth opportunities</li></ul>IT Distribution: Industry Insight & Outlook, GTDC, May 2008<br />
  26. 26. The New View Of Distribution<br />&quot;Our distribution partners are integral to our business and doing a terrific job.”<br />Ken BadoEVP of Worldwide Sales Autodesk<br />&quot;Without our distribution partners&apos; significant contributions and a strong joint strategy, we would not be where we are today in the channel.” <br />Dean DarwinVice President, North America Channels F5<br />“Distributors help us reach mission-critical mobile and wireless users in every environment, from the extreme to the mainstream.” <br />Rance M. PoehlerPresidentPanasonic Computer Solutions Company<br />2007 GTDC Poll of Leading Vendor Executives<br />
  27. 27. An invaluable vital component of our business<br />80% of vendor execs polled described their IT distribution partnerships as either …<br />Vendors&apos; Views On Distribution<br />OR<br />A strategic alliance that helps guide our decisions<br />2007 GTDC Poll of Leading Vendor Executives<br />
  28. 28. Financial Review<br />
  29. 29. Q1 2009 Financial Results<br />Sales<br /><ul><li>Q1 ’09 worldwide sales of $6.75 billion
  30. 30. YOY decline of 21% includes negative FX impact of 8 percentage points
  31. 31. Continued macro-economic softness dampening sales
  32. 32. Excellent working capital management
  33. 33. Working capital days improved 4 days YoY
  34. 34. Record cash balance exceeding $1 billion at quarter-end
  35. 35. Expense-reduction actions progressing in all regions</li></ul>Operational <br />Highlights<br />Record annual sales of $35.0 B <br />Net Income<br /><ul><li>Net income and EPS
  36. 36. Net income of $27.5 million, EPS of $0.17
  37. 37. Includes restructuring costs of $0.06 per share</li></ul>Gross margin remains strong at 5.65 percent<br />
  38. 38. Worldwide Sales<br />2007<br />2005 <br />2006<br />2008<br />North America<br />Asia-Pacific<br />EMEA<br />Latin America<br />($U.S. Billions)<br />$35.0<br />$34.4<br />$31.4<br />$8.58<br />$28.8<br />$6.75<br /> 13% 9% 12% (2%)<br />4% (21%)<br />Q1 08<br />Q1 09<br />Note: Annual growth rate of total revenues indicated at base of bars.<br />
  39. 39. Summary Balance Sheet<br />Debt/Capitalization Ratio is equal to Total Debt/Total Capitalization (Debt plus Equity). In Q4 ‘08, the goodwill impairment charge required by SFAS 142 reduced book equity by $659.8 million net of taxes.<br />
  40. 40. Focus On The FuturePriority Areas<br /><ul><li>Competitive Cost Structure
  41. 41. Optimal Mix of Products and End-user markets
  42. 42. Growth in Higher Margin businesses
  43. 43. Bias toward Profitability and Return on Invested Capital (ROIC)</li></li></ul><li>Tapping IntoTechnology Trends<br />
  44. 44. New Opportunities<br />Converging Technologies<br />Mobile and Wireless<br />Enterprise Solutions<br />Services<br />
  45. 45. The Rise Of ConvergenceBlurring Lines Between Home And Office<br />Digital Signage<br />Information Technology<br />Consumer Electronics<br />
  46. 46. All Things MobileDriving Greater Productivity<br />Offering complete mobility solutions from one source<br />Notebooks<br />Smart Handhelds<br />Point-of-Sale <br />Data Capture / RFID<br />Digital Signage<br />Networking<br />Servers/Storage<br />Security<br />Hardware and Software<br />Technical Support<br />Marketing Services<br />The only global distributor of Data Capture and Point-of-Sale products<br />
  47. 47. Enterprise SolutionsSophisticated Technology For SMB<br />The world is creating more information than it has the capability to store.<br /><ul><li>Servers and software applications are becoming standardized and less costly, making them more accessible to small- and medium-sized businesses.
  48. 48. Ingram Micro is ahead of this trend, offering resellers serving SMBs the technology solutions once reserved for mega-corporations – from mid-market servers to virtualization software.</li></ul>Examples of digital information not stored today: digital TV Signals, digital telephone calls<br />&quot;The biggest growth potential for server virtualization solutions in the next 12-18 months lies with the small- and mid-market customers, which together make up 70 percent of possible sales.“<br /> - Joseph Kovar, CRN, March 2008<br />Source: IDC White Paper, “The Expanding Digital Universe,” sponsored by EMC – March 2007<br />
  49. 49. Services Create Solutions A Competitive Advantage<br />®<br />Unique offerings that provide sales and profitability opportunities for resellers and vendors<br />Ingram Micro noted as a service innovator for enhancing customer engagement through social networking forum<br />– BusinessWeekDecember 2007<br />End-to-end order management, fulfillment and supply-chain solutions for a set fee <br />Helping resellers reach the SMB market in new ways: remote system management, IT staffing and demand generation services<br />
  50. 50. 30 Years Of Experience Makes A Difference<br />Consistently leading the way:<br />First to establish successful <br />fee-for-service logistics business<br />First to offer high-end <br />consumer electronics<br />First broad-based distributor<br /> in Asia-Pacific<br />First broad-based IT<br />DC/POS distributor<br />First to develop comprehensive services suite<br />Commitment to Profitability and Shareholder Value<br />

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