The document summarizes Arrow's 2008 Investor Day presentation. It includes an agenda for the day-long event covering Arrow's strategic overview, transformation, global business segments, and financial review. The document discusses Arrow's strategy to diversify its product portfolio and geographic presence in enterprise computing solutions and components. It also reviews Arrow's operational improvements, financial targets, and priorities to pursue organic and acquisition growth opportunities globally.

1. INVESTOR DAY 2008
Delivering today while
building for the future

2. WELCOME
Sabrina Weaver
Director,
Investor Relations

3. AGENDA
SESSION I
8:00 – 10:00 Welcome Sabrina Weaver
Strategic Overview Bill Mitchell
Arrow’s Transformation Mike Long
Global ECS Rich Severa
Supplier Insights Sean Kerins, HPQ/NTAP/VMW
10:00 – 10:15 Coffee Break
SESSION II
10:15 – Noon Global Components Kurt Colehower
Supplier Insights Brian McNally, FSL/NSM
Financial Review Paul Reilly
Final Q&A All
Closing Remarks Bill Mitchell
Noon Lunch

4. SAFE HARBOR STATEMENT
Some of the comments to be made during this morning’s session may include forward-
looking statements, including statements addressing future financial results, that are
subject to a number of risks and uncertainties that 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 ongoing planned implementation of its new
global financial system and new enterprise resource planning system, changes in
product supply, pricing and customer demand, competition, other vagaries in the
electronic components and computer products markets, changes in relationships with
key suppliers, increased profit margin pressure, the effects of additional actions taken
to become more efficient or lower costs, the company’s ability to generate additional
cash flow and the other risks described from time to time in the company’s reports to
the Securities and Exchange Commission (including the company’s Annual Report on
Form 10-K and Quarterly Reports on Form 10-Q). Forward-looking statements are
those statements, which are not statements of historical fact. You can identify these
forward-looking statements by forward-looking words such as quot;expects,quot; quot;anticipates,quot;
quot;intends,quot; quot;plans,quot; quot;may,quot; quot;will,quot; quot;believes,quot; quot;seeks,quot; quot;estimates,quot; 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.

5. STRATEGIC
OVERVIEW
Bill Mitchell
Chairman & CEO

6. KEY AREAS OF FOCUS FOR TODAY
Our vision and strategy for the future
Arrow’s Transformation – 3 Key Elements
Diversification of ECS product portfolio and geographic profile
Drive to achieve economies of scale, geographic expansion (Europe,
Asia), new capabilities (software, midmarket) – CHANGE THE GAME
All aimed at VALUE ADD portion of market
Global Components
The largest components business – $11Bn
Strong opportunities for growth – customer (SMB), geography (Asia
Pac), markets (lighting, military, industrial, medical, transportation),
products (PEMCO, analog)
Global Systems Implementation
Timeline
Benefits
Financial Strategy
Geographic and product line mix impact on our financial targets

7. WE POWER THE SUPPLY CHAIN
Arrow is in the center of a $420Bn market. We touch all geographies,
all technologies, and all end markets. We connect key players in
unique, value enhancing and sustainable ways
ECS - $5Bn*
Components - $11Bn*
OUR REACH 50 countries and territories 28** countries and territories
across North America, across North America
Worldwide Presence
Europe, and Asia-Pacific and Europe
50 Countries & Territories
Complex configuration,
Complex supply chain
vertical market expertise,
solutions, demand creation,
OUR SERVICES
technical augmentation,
design/engineering support,
Arrow = Value Added Services
OUR PRODUCTS solutions labs, net new
materials mgmt, vertical
demand creation
market expertise, financing
Unmatched Line Card
> 600 Suppliers
OUR PRODUCTS Analog, Discrete, Mission critical solutions:
Unmatched Line Card Programmables, Logic, Enterprise servers, storage,
Memory, and PEMCO software, and services
Approximately 700
OUR CUSTOMERS SMB focus in broad end
Value Added Resellers
markets via OEM’s and
(VARs) with SMB focus
Diverse Customer Base CM’s: Key focus in
serving multiple end
140,000 Customers industrial, automotive,
markets
medical, aerospace
*2007 sales **Pro forma to include LOGIX

8. ARROW STRATEGY AT A GLANCE
We have the right strategy in place to outgrow the market and
achieve industry-leading profitability
GROW THE OPERATIONAL FINANCIAL SHARED
BUSINESS EXCELLENCE STRENGTH LEADERSHIP
Increase efficiency
Pursue Build the Arrow team
Consistently
and productivity
opportunities, both to drive forward our
generate cash, earn
while ensuring
organically and future goals by
ROIC>WACC and,
flawless execution
through acquisition, attracting, training,
grow profits faster
for our business
to grow faster than and retaining the
than sales
partners industry’s top talent
the market

9. “May you live in
interesting times”
Unverified Chinese proverb (or curse)

10. CURRENT ECONOMIC BACKDROP
We have built in flexibility to adjust to changing market conditions
The current economic backdrop is uncertain
Collapse of Bear Stearns; total losses of banks now exceed $300Bn
Dollar fell below ¥100 for first time; record low against Euro
Spread between “junk” bonds and American Treasuries exceeded 800
points for the first time in 5 years
The outlook - ???
In response, we continue to manage our business cautiously and
prudently, yet we will seize opportunities as they arise

11. WELL POSITIONED IN CURRENT ENVIRONMENT
We have fundamentally changed the way our company is run
Tech Bust Today
$2-2.50 in an extreme
EARNINGS FLOOR $.15
downside scenario
Strongest balance sheet in
BALANCE SHEET $3Bn in net debt and 65%
10 yrs, net debt/cap ~20%
net debt/cap
WC/Sales of 15%
WC/Sales of 25%
WORKING CAPITAL
Cash flow positive
Cash generation only in
CASH FLOW
throughout the cycle
down cycles
Muted cyclicality
Volatile patterns
SUPPLY CHAIN

12. DIVERSE REVENUE STREAM
ECS now represents almost a third of our revenues and further
offsets semi cyclicality
Segment Revenue ($Bn)
2004 2007*
20%
30%
70%
80%
Global Enterprise Computing Solutions Global Components
*Includes KeyLink and related procurement agreement revenues for a full year

13. DIVERSE REVENUE STREAM
Our footprint is geographically diverse with a truly global presence
GLOBAL GLOBAL TOTAL
COMPONENTS ECS ARROW
2004 Revenue ($Bn) Almost 50% of sales
2004 Revenue ($Bn) 2004 Revenue ($Bn)
14% 11% are outside of NA
$1.2 $1.2
Asia/Pacific
$3.9
components from 14%
$2.2
$6.1
$3.4
to 22%
$3.4
46%
40% Accretive to OI
32% 57%
and ROIC as we
reach our targeted
2007 Revenue ($Bn) 2007 Revenue ($Bn) 2007 Revenue ($Bn)
level of profitability
18% 15%
22%
US and Europe
$2.4 $2.4
$0.8
$4.7 continue to be vital for
$8.6
design, growth &
$5.0
$4.1 $3.9 profitability
41%
37%
54%
82%
31%
Asia/Pacific
EMEASA
North America

14. CONTINUED OPERATIONAL IMPROVEMENT
We have executed well and there is more to come
Over the last 5 years*
We grew earnings 5x faster than sales; 85% CAGR
WC/sales decreased more than 40%
Generated more than $2Bn in cash flow
ROIC increased by more than 2.5x
We are not done with our journey
Consistent go-to-market strategies worldwide to enable growth at
great than market rates
Leverage global scale to achieve best in class cost structure
ERP to enable large gains in productivity
ALL OF ABOVE = PREMIUM RETURNS
*2002 through 2007

15. CONTINUED OPERATIONAL IMPROVEMENT
$16.0
ROIC**
Net Sales ($Bn)
10.9%
$13.6
$11.2 17%
$10.6
26%
CAGR
CAGR
$8.5
3.4%
$7.3
2002 2007
2002 2003 2004 2005 2006 2007
$3.29
Diluted EPS* Cumulative Operating Cash Flow ($MM)
$2.92
$2,521
$2.18
$1.97 $1,671
85% $1,550
CAGR
$1,148
$960
$668
$0.74
$0.15
2002 2003 2004 2005 2006 2007
2002 2003 2004 2005 2006 2007
*Represents GAAP measure adjusted to exclude the impact of restructuring and other items affecting comparability. Includes estimated amortization of
intangible assets **ROIC = Tax effected op. inc. and equity earnings of affiliates excluding restructuring and other charges – annualized minority
interest/(Avg Debt + Avg Equity – Avg Cash over $150MM).

16. OUR PRIORITIES FOR THE FUTURE
Our path to achieving our strategic and financial goals is clear
Pursue significant organic growth opportunities – still a growth business
Products: PEMCO, analog, storage, software, services
Vertical Markets: lighting, medical, transportation, industrial, defense
& aerospace
Geographies: Asia Pacific, Europe
Customers: focus on the “M” in SMB
Strategically accelerate growth through acquisitions
Build best-in-class global capabilities and leverage efficiencies of scale
worldwide – Lean Six Sigma makes a huge difference
Global systems implementation to enable strategic initiatives and
change our value proposition

17. IN SUMMARY…
The best is yet to come
We occupy a unique, value-added space in the supply chain with
We occupy a unique, value-added space in the supply chain with
growth opportunities across every customer segment, end market,
growth opportunities across every customer segment, end market,
geography, and technology
geography, and technology
Strategic initiatives are in place to capture profitable growth
Strategic initiatives are in place to capture profitable growth
We are leveraging global scale to drive agility, responsiveness, and
We are leveraging global scale to drive agility, responsiveness, and
efficiency
efficiency
We will continue to manage the company prudently, while taking
We will continue to manage the company prudently, while taking
advantage of market opportunities
advantage of market opportunities

18. ARROW’S
TRANSFORMATION
Mike Long
President & COO

19. ARROW’S TRANSFORMATION: OVERVIEW
Global ECS: Portfolio and Geographic Expansion
Global Components: Powerful Go-To-Market Strategy and Roadmap
Acquisition Strategy and Integration Case Study
Global ERP Update

20. ARROW’S TRANSFORMATION: GLOBAL ECS
Now a $5Bn Value-added Distributor With Significant Scale and Scope
Achieve category leadership
with KeyLink
Geographic expansion into Europe & line
extension in Software with ATI
Formation of Software Group
Achieve scale in
Divestiture of Gates, line extensions in EMC Europe with LOGIX
& NetApp, formation of Storage Group
Transform global
Sun line extension platform with ERP
Line extension into value Leverage powerful
space with IBM, HP software portfolio
Drive midmarket initiative
Gates
acquisition
(Billings)
2008-2010
1995 1998 2000 2002 2004 2006* 2007
Volume Europe Scale
Software
Value Platforms Storage
*Excludes Microtronica, pro forma includes full year of Alternative Technology, InTechnology, and KeyLink billings

21. ARROW’S TRANSFORMATION: GLOBAL ECS
Our strategic acquisitions have strengthened our line card,
expanded our geographic presence and increased opportunities
in fast-growing segments
February 2006
Canada - Storage
November 2006
December 2005 North America - Software
Europe - Midrange & Security
KeyLink Systems Group
March 2007
Specialist Distribution North America – Midrange,
Storage, & Software
December 2006 August 2007
UK – Storage & Security Europe - Software
June 2008
Europe – Midrange, Storage, & Software

22. ARROW’S TRANSFORMATION: GLOBAL COMPONENTS
Global go-to-market strategy optimized by segment
Large Multi-National Customers – Global Alliance
• Provide single point of contact at global level
Fortune 200 Large
• Offer broad line card and supply chain solutions
Global
$1.2 Bn* Core – Medium Customer Focus
• Regionally manage medium-to-large regional customers
• Optimize market segmentation
• Invest in under-penetrated geographies, technologies and
end markets
Medium Sized • Offer broad line card, design support, and supply chain
$9.2 Bn* solutions
SMB/Emerging – Arrow Advantage
• Support with global infrastructure to scale many accounts
• Help small and emerging customers grow
• Robust transfer system to transition high potential accounts
Small/Emerging, $800 MM* • Offer broad line card
*2007 Arrow sales

23. ARROW’S TRANSFORMATION: GLOBAL COMPONENTS
Roadmap
Stage 3
Value
Sustain One-Arrow-at-
Scale through ERP system
Expand “value-added”
capabilities
Stage 2
Complete ERP implementations
Drive vertical market initiatives on a global basis
Scale operational performance pilots
Stage 1
Implement consistent go-to-market model
Pursue vertical market initiatives
Product and geographic growth initiatives
Launch operational performance improvement pilots
Design ERP system requirements and begin implementations
Time
2007 2011

24. ARROW’S TRANSFORMATION: GLOBAL COMPONENTS
Regional and product specific acquisitions in components have
expanded our reach in the Asia Pacific marketplace and in fast
growing end markets like defense/aerospace
October 2007
December 2005 Japan
June 2007
Taiwan
Australia/NZ
2008 – Pending,
January 2008
Components
India February 2008
distribution business
Defense/Aerospace
of Achieva Ltd.,
ASEAN and China

25. ARROW’S TRANSFORMATION: ACI INTEGRATION CASE STUDY
Our integration competencies have been built up over many
years integrating over 70 companies around the world
Week of Complete
Week of Transition
Weeks of Week of
Feb 18 March 3
Feb 11 March 1/2
Jan 23-Feb 4 Feb 25
Systems training Warehouse Open for
Final systems
Complete due Deal announced
move: 15,000 business with
check
diligence Employee
Employee
part number no transition
onboarding
Complete meetings
setups issues
systems Key customer
Key customer
Systems
conversion & meetings
meetings
transition: 5,000
W/H transition
Begin systems customer records
plan
testing transferred
Inventory
audit
Key supplier The integration model for ACI was
a complete “fold-in” of the business
consents
Retained sales and supplier marketing functions
Leveraged Arrow’s back-office infrastructure to reduce ACI SG&A
by more than 50%

26. DISCIPLINED APPROACH TO ACQUISITIONS
We will continue to use acquisitions as a strategic accelerator
OUR DECISION FRAMEWORK
STRATEGIC Does it fit our strategy of expansion into new geographies,
technologies or end markets, or bring us scale?
Does it meet our financial requirements?
FINANCIAL
-Accretive to earnings in the first year
-Non-dilutive to ROIC (target of 12.5% by year 3)
-Cash flow positive
Does it share our passion for operational excellence?
OPERATIONAL
Is there a cultural fit?
CULTURAL
We have ample dry powder to execute: solid balance sheet, strong cash flow,
and $1.4Bn of committed liquidity facilities in place Competitive advantage

27. GLOBAL ERP: OVERVIEW
Global ERP is a critical component of our strategy realization
“Today, an average of only 22% of customer interactions, 19% of supplier
interactions and 33% of employee interactions are conducted online and
processed automatically.” Bob Suh, Accenture’s chief technology strategist
Arrow ERP is a catalyst for change
Operate locally, leverage globally
Common optimized processes and best practices drive flexibility
Based on Oracle ERP software
Progress update
Global Financial System implementation completed in May 2007
Successful implementation of Sun business in North America on April 1st
Implementation to date on plan and on budget
+ 2007: $70-80MM cash flow impact; $12MM in incr. op. expenses
+ 2008: $90-100MM cash flow impact; $25MM in incr. op. expenses
+ 2009: $65-75MM cash flow impact; $40-45MM in incr. op. expenses

28. GLOBAL ERP: ROADMAP
Phased deployment will minimize business disruption risk
2006 2007 2008 2009 2010
GLOBAL FINANCE (GFS)
Successful implementation
in NA Sun business on
ECS
April 1st
Process Modeling
& System Build
Implementation
North America - Europe
COMPONENTS
Process Modeling
& System Build
Implementation
Europe - Asia - North America

29. GLOBAL ERP: GAME-CHANGING BENEFITS TO BE REALIZED
Significant impact on profitability and returns; strategy enabler
Today With ERP
Multiple finance, logistics, HR, purchasing Single European platform enabling shared service
teams in Europe models
Inconsistent nomenclature for part Standardized parts globally – leverage purchasing
identification volume with visibility to lowest cost globally
Quoting varies by region, often with manual Streamlined process, reduced non-value added
entry activities, increased quote win ratio
Challenges in design win through product Enhanced design win tracking ability
lifecycle
Multiple pools of inventory with limited Single platform to see global inventory, efficiently
visibility manage asset base worldwide
Multiple customer databases with unbalanced Single database enabling productivity gains and
workload decreased time to market
Vast, untapped market information Data analytics unseen in today’s marketplace
Total anticipated annual savings* = Over $75MM
Total anticipated annual cash flow benefit* = Over $100MM
*Benefits to be phased in over time, run-rate savings estimated to be achieved by 2011

30. GLOBAL ECS
Rich Severa
President, Arrow North
America ECS

31. SNAPSHOT OF ARROW ECS
Global value-added distributor with scale and scope
2007 sales of $4.8 billion; 30% of Arrow’s total sales
Presence in 28 countries across North America and Europe*
Over 2,500 employees*
Unmatched line card with unique software capabilities
18,000+ value-added reseller partners* serving enterprise and
midmarket customers – the fastest growing segment
Target Customer Segment In Enterprise & Midmarket
F500
$120 Billion Opportunity Enterprise
& Midmarket
Global SMB IT spending increases will be roughly 2% higher
than overall IT spending increases on a worldwide basis**
Small Business
*Pro forma to include LOGIX **Source: IDC

32. THE IT DISTRIBUTION LANDSCAPE
ECS leads with a differentiated approach to value distribution
VENDORS
Mission critical
Commodity PCs,
servers, storage,
All Products
low end servers,
World-class technical
software, services
printers
and engineering
resources
ARROW
2-Tier
Complex solution-
ARROW
Broad-line 2-Tier
2-Tier
“Volume”
selling capabilities
“Value”
“Value”
Solutions product
portfolio
Internet VARs,
Direct
Pass 1-Tier Direct
Marketers
Co-investment with
Through Marketers
Companies
suppliers
Micro-Small High Speed
Access to capital
Midmarket
Large
Customers, Fulfillment to and
Enterprise
Fulfillment Small, Med, Enterprise
Customers
for Large Large Customers
Enterprise Customers

33. THE OPPORTUNITY
We support our VAR partners’ go-to-market strategies and help
them navigate increasingly complex end-user demands
Channel Joint Value Proposition
Channel Enablement
VAR enablement and
Training & Education Solutions Infrastructure
training Engineering Resources Product Roadmap
Logistical Support
Marketing and demand
Supplier
Quote & Configuration Integration Capability
generation Financing Solutions Order Tracking
ECS
Dedicated resources Demand Generation
Solutions Sales Life Cycle Mgmt
Opportunity management
Market penetration Opportunity Mgmt
Technical consulting Market Reach
Integration services Product Marketing Product Portfolio
Brand Management Management
Manufacturing
Technology Leadership

34. VALUE CREATION: ARROW’S DIFFERENTIATED MODEL
Arrow and a premier North American-based solutions provider
working together on a $20MM communications opportunity
ARW facilitates introduction of partner to end-user through demand
Collaborative
generation campaign in 2004
Selling
Partner secures foothold for storage solution supported by ARW
technical configurations
Partner expands discovery of server requirements supported by
ARW
100’s of configurations and re-designs over 2 year period
Partner/ARW jointly pitch and win datacenter redesign project
Virtualization solution on HP Superdomes
ARW works with supplier to accelerate procurement to 10 days
Normal lead time is 5 weeks
Post implementation, end-user seeks to expand relationship
quot;Partnership is about understanding and listening to your customer's needs. It's about
bringing true value and executing on that value. [Partner] gets it, they get us.” – End-User

35. MARKET DRIVERS
Favorable market dynamics for continued growth
IDC estimates
5%-7% SMB
market growth
Customers and through 2010
vendors
demanding more
IDC estimates
global solutions
only 5% of
servers are
Continued virtualized
demand for
VARs/end users storage and
need assistance security products
and solutions
navigating
complexities
Increasing Compliance/ Virtualization Globalization Strong SMB
supply chain security market
complexity

36. GEOGRAPHIC COVERAGE
Expanding into attractive markets aligned with our strategy
SMB Hard Target*
SMB IT spend expected
to grow faster than 39%
28%
48% 13%
14%
worldwide corporate IT 34%
6%
spending in medium term APAC
North America 2%
EMEA
ECS is focused on Japan
enterprise and midmarket
components of SMB
11%
Our current geographic 5%
footprint covers high Latin America
opportunity SMB
geographies ECS geographic footprint
SMB % Total Companies
SMB % of IT Spend
Source: IDC *SMB includes firms <1,000 employees

37. MIDMARKET INITIATIVE
Accelerating success in the midmarket
Solutions 40 new end-to-end solutions Fortune 500
60 net new VARs recruited YTD
50,000 companies targeted
Demand Generation Focus driven by IT
dependencies
Large
End-Users
Enterprise
Vertical Targets Financial Services
Healthcare
Medium
Manufacturing & Distribution
Business
Dedicated resources
Infrastructure CRM
Data warehousing
Enablement Marketing, Technical Support,
Back-office, Financing, Small
Education, Vendor Linkage
(Core value-add) Business
37

38. VIRTUALIZATION
Next chapter in server consolidation with implications for broader
portfolio
Enables multiple “virtual” ECS Product Coverage
servers to run on a shared
machine Software Hardware
Typical selling
Impact of Virtualization
Server
opportunities are linked to
centralized data center
Storage
installations
Virtualization drives
Desktop
incremental opportunities
across the ECS portfolio
Network
(software, new storage,
thin client)
“… virtualization begins a process that will extend this technology phenomenon far beyond
its current general role as a tool for server consolidation.” - IDC

39. VIRTUALIZATION
Opportunities across the portfolio
Incremental Sales From Virtualization
Software VMware, Citrix, Datacore,
$400MM+
Vizioncore, Platespin
“Drag-Along” Upsides
Security/ Nokia, Scriptlogic, ChipPC,
Network Thinstall, Blue Coat,
Checkpoint, Riverbed
Storage Netapp, HP, IBM, EMC,
Sun, Hitachi, Brocade
Servers HP, IBM, Sun
2005 2006 2007
Rapid growth in VMware and Citrix
Additional “drag-along” sales in software, storage, and servers

40. BALANCED PORTFOLIO: STORAGE
Investments in storage are yielding benefits in rapid revenue
growth
High growth product segment with
Software combined worldwide Y/Y growth of
23% in 2007*
Solutions Stack
Storage
Services
Servers
*Pro forma for Alternative Technology, InTechnology, and KeyLink (excluding the related procurement agreement sales)

41. BALANCED PORTFOLIO: SOFTWARE AND SERVICES
Arrow’s software group is now a $1 billion business
Follow the wire to your solution
Solutions and Services 100% Dedicated To and Thru our Partners
Technical Capabilities Solutions
73 Pre-sales Branch
Wireless
Authentication
SOHO
Office
or Wired
engineers
Access/Infrastructure
Mobile Internet WAN
Internet WAN
38 Consulting & User
Security
technical engineers
Infrastructure
Thin Client
7 Solutions Centers Edge
Disaster
Recovery
Virtualization
Site
Over 400
LAN Data Center
certifications

42. ECS SERVER TARGET MARKET
ECS server focus remains in mid-range servers
Server Price Bands* Percent of Server Spend**
Windows
Netware
ECS target product market is Mid-Range with
i5/OS
Other
Linux
z/OS
Unix
some presence in High-End and High-Volume
Category ASV
Volume 0-$2,999
High-End
$3,000-$5,999 Industry Standard Servers >$500,000
$6,000-$9,999
13%
$10,000-$24,999
Mid-Range $25,000-$49,999
Volume
49%
Mid-Range
$50,000-$99,999 26%
Mid Range <$9,999
$25,000-$499,999
$100,000-$249,999
$250,000-$499,999
12%
High-End $500,000-$999,999
$1.00m-$2.99m Super Computing & Mainframe
High-End Volume
$3.00m+
$10,000-$24,999
ECS Server Focus
Value channel will continue to be the best route to market for this product set
Virtualization and open architecture create incremental opportunities in ECS installed base
*Source: IDC **2007 worldwide IT server spend via indirect channel

43. ECS SERVER TARGET MARKET
Mid-range servers and UNIX provide a solid base for our solutions
Mid-Range Server Spend Via Indirect Channel**
IT Spend
CAGR (5yr) (2012)
$11.2Bn $11.2Bn
$11.1Bn $11.1Bn $11.1Bn
$10.4Bn
$1.0Bn
-4.7%
High End*
$3.4Bn
2.8%
High Volume
$1.6Bn
2.6%
Mid-Range
Other
1.7% $5.2Bn
Mid Range
Unix
2007 2008 2009 2010 2011 2012
Unix i5/OS Windows Linux z/OS NetWare Other High-End Volume High-End
Servers continue to be a portfolio play for ECS and we expect to
continue to outgrow the market
*High-end servers include only products between $500,000 to $999,999 in ASV **Source: IDC

44. PORTFOLIO TRANSFORMATION
We have evolved the product portfolio to provide a total set of
solutions
Product Mix Comparison
(Net Sales)
$5.1Bn
Evolving to a diversified
1.1 21% Software
portfolio
Investments in software
1.6 31% Storage
are key to solutions
$1.8Bn 0.6
Steady gains in storage
12% Industry Standard
0.2
0.5
Rapid growth in industry
1.7
0.1 33% Proprietary Servers
1.0
standard servers
2004 2007 *
Proprietary Servers Industry Standard
% of 2007 Net Sales
Services Storage
Softw are Other
*Includes KeyLink and related procurement agreement revenues for a full year

45. IN SUMMARY…
Balanced portfolio with a strategic line card – outstanding growth
opportunities in a highly differentiated model
Servers are a foundational component of our model
Servers are a foundational component of our model
European expansion offers new growth opportunities, especially in
European expansion offers new growth opportunities, especially in
Eastern Europe
Eastern Europe
Storage and Software growth will accelerate
Storage and Software growth will accelerate
“Follow the wire” brings more value-adds in security, additional
“Follow the wire” brings more value-adds in security, additional
infrastructure, and virtualization
infrastructure, and virtualization

46. SUPPLIER INSIGHTS
Moderator
Sean Kerins
VP Storage Group, ECS
Guest Panelists
Hewlett Packard
Frank Rauch
VP, Solution Partners Organization
NetApp
Paul Mayes
WW Distr. Sales Director, Channel Sales
VMware
Steve Houck
VP WW Channel Sales

47. COFFEE BREAK

48. GLOBAL
COMPONENTS
Kurt Colehower
President, Arrow North
American Components

49. ARROW GLOBAL COMPONENTS
Our Global Components business provides value-added services
for OEMs and EMS companies
Presence in 50 countries and territories across North
2007 Revenue
America, Europe, and Asia-Pacific
$11.2Bn
Market share leader in North America and Europe, top
22%
player in Asia
$2.4
Over 120,000 customers across all end markets and $4.7
geographies; no one customer > 2% of sales
Product split: 68% semi, 23% PEMCO, 9%
$4.1
computing/memory
37% 41%
60-75% of our customer base uses one or more value-
added services
North America
Ship over 36,000 line items per day and manage over
EMEASA
1 million part numbers
Asia/Pacific

50. UNMATCHED LINE CARD TOUCHING ALL TECHNOLOGIES
We have a broad technology portfolio with more than 600 suppliers
Connectors 8%
Electromechanical 5% Analog 24%
Passives 10%
ASIC/Application
Computing/Memory* 9%
Specific/Opto 11%
Microcomponents* 13%
Discrete/Logic 20%
*Primarily MCU/MPU and non-DRAM memory

51. GLOBAL COMPONENTS TOTAL AVAILABLE MARKET
Growth has slowed, but is still positive
Semi forecasts for 2008 vary widely from 3% to 12%
$300
2004-07
CAGR = 7%
$250
or 2x GDP
$200
($ in Billions)
$150
$100
$50
$0
1985
1987
1989
1991
1993
1995
1997
1999
2001
2003
2005
2007
Source: Worldwide semiconductor sales from the Semiconductor Industry Association

52. MARKET DRIVERS
Favorable market dynamics for continued growth
Customers/
suppliers need
help in
navigating the
Customers/
current
suppliers need
business
flexibility and
environment
supply chain
Strong demand
efficiencies to
from increasing
meet demands
electronic
Small and for reduced
content and
medium-sized time-to-market
conversion from
customers mechanical to
expected to electronic
outgrow market
Increasing
Decreasing
Increasing
Strong small
supply chain
time-to-
electronic
and medium
complexity
market
content
market

53. GLOBAL STRATEGY
Product growth opportunities: Analog
$2Bn global business with strong focus on demand creation
Opportunity
Global analog market 2007-12 revenue CAGR of 6-11%*
Strong, consistent demand from broad base of end markets
Conversion from mechanical to electronic
Increasing electronic content
Penetrate new customers
Analog products align well with vertical market initiatives
*Source: Gartner and Databeans

54. GLOBAL STRATEGY
Product growth opportunities: Passives, electromechanical, and
connector products (PEMCO)
$2Bn global business with #1 market position
Top 2 player in every major PEMCO technology
5-yr sales CAGR of 16% organically
Opportunity 2007 PEMCO DTAM*
Market share less than in Mil/Ind
Connectors 10%
Capacitors 16%
semis
Resistors 6%
Rationalizing distribution Frequency
partnerships is a positive Control 2%
Magnetics 2%
Penetrate new customers Comm
Connectors 34% Circuit
Expand franchises into Protection 5%
Relays 6%
Asia Power Products Thermal Mgmt
6% 5%
Leverage under-penetrated
Switches 7%
technologies Passive Electromechanical Connector
*Source: Independent sources, public supplier and competitive data

55. GLOBAL STRATEGY
Vertical market opportunities
Markets that are growing in our two largest regions: NA and Europe
Under penetrated today
Classic low volume – high mix markets that require specialization
Fit well with Arrow’s capabilities
Industrial Lighting Transportation
Defense/Aerospace Medical

56. GLOBAL STRATEGY
Vertical market opportunities: Industrial
Arrow Industrial
Arrow Electronics North American Components
Why is this a good opportunity for Arrow?
$4Bn market in North America and EMEASA*
Applications: factory automation, conveyor, package machinery,
food processing equipment, industrial control, etc.
Customer needs weighted towards higher margin PEMCO products
Supply chain is highly fragmented with limited offerings
Arrow Industrial provides differentiated engineering support for small to
mid-tier OEM’s and emerging industrial equipment manufacturers
*Source: Gartner

57. GLOBAL STRATEGY
Vertical market opportunities: Aerospace and Defense
Arrow Military/Aerospace
Arrow Electronics North American Components
Why is this a good opportunity for Arrow?
Continued growth in defense and aerospace market
Strong growth in homeland security programs
Satellite, communications, anti-terrorist applications
Sophisticated electronic solutions and complex design
Stringent quality and performance requirements
Obsolescence management

58. GLOBAL STRATEGY
Vertical market opportunities: Aerospace and Defense
Arrow Military/Aerospace
$850MM business with unique military expertise
#1 position globally
Leading market share in many technology
segments including discretes
Demand creation expertise: 1,200+ design wins in
2007 and growing
ACI acquisition
Revenue CAGR of 20% in last 5 years
Brought scale, strong supplier and customer
relationships, and top talent
Arrow is the only broadline provider of components and value-added services
focused exclusively on serving the needs of the A&D customer base

59. GLOBAL STRATEGY
Vertical market opportunities: Lighting
Why is this a good opportunity for Arrow?
LED market expected to nearly triple in a six year span, from $4.2
billion in 2006 to $12.3 billion by 2012*
Fragmented global marketplace
Under-penetrated by distribution
No dominant supplier
High electronic content and design complexity
*Source: iSuppli

60. GLOBAL STRATEGY
Vertical market opportunities: Lighting
Arrow Global Lighting Initiative
Provide LED alternatives to
incandescent, halogen and
fluorescent lighting
Help customers navigate
complexities of new lighting
technology with wide range of
solutions
Over 1,200 customers; 50%
new to distribution
Expanded line card to 12
suppliers
2005-07 sales CAGR >50%
http://lighting.arrow.com
Extensive line card, unsurpassed supply chain management and design services,
and experienced technical team to assist customers as they evolve and expand

61. GLOBAL STRATEGY
Vertical market opportunities: Medical
Worldwide Medical Electronics Revenue
Why is this a good opportunity for Arrow? CAGR Through 2012 by Application
Ultrasound Peripheral
$6B Global Market in 2007 with a Other Implantable Devices
Telemetry
12% CAGR through 2012* Ultrasound Portables
Other Handheld
Strong growth in digital imaging External Defibrillator
and storage Other Imaging
Ultrasound Carts
Infusion Pump
Increasing electronic content Lab Equipment
Bone Density Scanner
Local design and manufacturing CT Scanner
Glucose Meter
necessary Digital Thermometer
MRI Scanner
Investment activity by venture PET Scanner
Blood Pressure Monitor
capital driving emerging customer Other Medical
base Hearing Aid
Cholesterol Monitor
Transport
Pacemaker
Electrocardiogram
X-Ray
0% 5% 10% 15% 20% 25% 30% 35%
*Source: Databeans Medical 2007 **Source: Technology Forecasters

62. GLOBAL STRATEGY
Vertical market opportunities: Medical
Arrow Medical Initiative Consumer / Portable Implantable
Act as subject matter experts to
aid with stringent government
regulations and certification
Play a key role at the front end of
the design cycle
Balance quality and regulatory
compliance with time to market
Diagnostic & Therapy
Imaging
needs
Identified over 8,000 medical
device customers in NA alone
Increasing demand for services
and support from customers in
this specialized market

63. GLOBAL STRATEGY
Vertical market opportunities: Transportation
Why is this a good opportunity for Arrow?
$28Bn global market*
Under penetrated by distribution
25% of vehicle cost is from electronic content, approaching 40% by 2010**
Requires engineering support and complex solutions
Infotainment
Body Electronics
Navigation
Powertrain
Occupant
Driver
Lighting Comport
Protection ABS Breaking
*Source: Gartner **Source: SAE International

64. GLOBAL STRATEGY
Vertical market opportunities: Transportation
Arrow Transportation Group
Dedicated organization
focusing on the needs and
requirements of the global
transportation market Heavy Truck
Automotive
Technology experts driving
true demand creation
Quality experts (NAFTA,
PPAP)
Marine Industry
Bus & Coach
Generating 250 design wins
annually
Targeting higher margin
small and medium-sized
customers
Agriculture
Construction

65. GLOBAL STRATEGY
Geographic opportunities: Asia Pacific
Asia Pacific accounts for nearly 50%
of total electronics spend in the
world*
Driven by transfer business and
indigenous consumption
Domestic consumption became
the biggest driver of GDP for the
MARKET SHARE: TOP 10 DISTRIBUTORS
1st time in 7 yrs
Demand for value-added services is
34% 48%
growing
2002 2007
Market still fragmented, but
MARKET SHARE: TOP 3 DISTRIBUTORS
continues to consolidate**
18% 25%
Top distributors are benefitting
2007
2002
*Source: Technology Forecasters **Source: Independent sources, public supplier and competitive data, regional intelligence; excl CPU/DRAM

66. GLOBAL STRATEGY
Transformation in Asia Pacific
Entry into Japan with UEC
acquisition; Hynetic (India)
and Achieva (ASEAN Region
Sales grew more than
and China) in 2008
3.7x in last 5 years
OI%
Sales ($MM)
Organic 5 year
$2,500 Target
CAGR of 18%
$2,449
UltraSource acquisition $2,382
Expanded footprint to
expands presence in Taiwan
$2,000
52 sales offices in 12
2007
Arrow Asia Pac surpasses
countries/territories
$1Bn in annual sales
Profitability increased
$1,500
$1,466
almost 9x in last 5
years
$1,170
$1,000
Continue to move
$820
forward with customer
$658
$500 segmentation and
profitability initiatives
2002
$0
2002 2003 2004 2005 2006 2007

67. WHY ARROW?
Our business partners choose Arrow for many reasons
Market Access & Dependability
Broad, diversified customer and supplier base
Strong global footprint/information platforms for migrating supply chains
Transfer business doubled in the last year
Award winning levels of customer service
Financial strength
Unmatched Solutions Strength
Engineering focus
500 global field application engineers
Demand creation ability and design win performance
Provide flexible solutions to complex supply chain challenges

68. IN SUMMARY…
Arrow Global Components
We occupy a unique, value-added space in the supply chain with
We occupy a unique, value-added space in the supply chain with
capabilities across all geographies, technologies and end markets
capabilities across all geographies, technologies and end markets
Market share leader in North America and Europe and top player in Asia
Market share leader in North America and Europe and top player in Asia
See continued growth opportunities across product lines, end markets,
See continued growth opportunities across product lines, end markets,
and geographies in a market that grows 2-3x GDP growth
and geographies in a market that grows 2-3x GDP growth
Focused in the SMB sweet spot with diversified customer and end market
Focused in the SMB sweet spot with diversified customer and end market
exposure and robust engineering capabilities
exposure and robust engineering capabilities
Investing in the future growth of our business while continuing to operate
Investing in the future growth of our business while continuing to operate
more efficiently and achieve our long-term financial target
more efficiently and achieve our long-term financial target

69. SUPPLIER INSIGHTS
Moderator
Brian McNally
President, Global Alliance and
Supply Chain
Guest Speakers
Freescale Semiconductor
Henri Richard
SVP, Chief Sales & Marketing Officer
National Semiconductor
Mike Noonen
SVP, Worldwide Marketing & Sales

70. Mike Noonen
Senior Vice President
Worldwide Marketing & Sales
National Semiconductor
Arrow Investor Day

71. National Helped Create The Analog
Semiconductor Industry

72. Today National is Reinventing Analog
Optimal
Performance
at the Lowest
Power

73. PowerWise® Solutions Reduce Heat &
Energy Consumption
• Power-Saver
equalizers
• Synchronous
switching
regulators
• High-voltage PWM
controllers
• High-precision
temperature
sensors

74. PowerWise® Solutions Extend Battery
Life
• Adaptive Voltage
Scaling technology
• Adaptive RF Power
• RGB LED
backlighting
• Mobile Pixel Link
• Integrated Class D
audio subsystems
• Analog Noise
Reduction
Technology

75. PowerWise® Solutions Increase
Reliability
• High-speed A/D
converters
• Operational
amplifiers
• Precision Timing
devices
• Synchronous
switching regulators

76. Distribution Is Crucial To National
Distribution
54%
Direct
46%

77. Top Reasons Arrow Is A Great Partner For
National
1. Worldwide Synergy and Efficiencies
2. Engagement With All Customers
3. Market Segment Expertise
4. Together We Offer Complete
Solutions

78. Arrow Has Worldwide Synergy and
Efficiencies
• Organized to be global without compromising
regional influence
• Disciplined approach to inventory and asset
management
• Collaborative and effective information
management
• Ability to track designs worldwide from
concept to production

79. Arrow Actively & Efficiently Engages With
All Customers
Arrow
Worldwide Global
Customers Alliance
Arrow
1000s of Mid-size
Customers Electronic
Components
10,000s of Small Arrow
and Emerging Advantage
Customers

80. Arrow Has Market Segment Expertise and
Resources
Arrow makes
it easy for
our mutual
customers to
get the right
solution and
assistance

81. Arrow Offers Our Mutual Customers
Complete Solutions

82. Thank You

83. 5 June 2008
Freescale Semiconductor
Arrow Financial Analysts Meeting
Henri Richard
Senior Vice President, Chief Sales and Marketing Officer
TM
Freescale Semiconductor Confidential and Proprietary Information. Freescale™ and the Freescale logo are trademarks
of Freescale Semiconductor, Inc. All other product or service names are the property of their respective owners. © Freescale Semiconductor, Inc. 2008.

84. Freescale’s Unique Strengths
50+ years of innovation
•
Leadership in growing Markets
•
Broad Product & Technology Portfolio
•
Deep Customer Relationships
•
Flexible Manufacturing Strategy
•
Significant R&D Investment
•
Talented, Global Workforce
•
Strong Financial Position
•
TM
Freescale Semiconductor Confidential and Proprietary Information. Freescale™ and the Freescale logo are trademarks
of Freescale Semiconductor, Inc. All other product or service names are the property of their respective owners. © Freescale Semiconductor, Inc. 2008.

85. Market Realities: The Call for Teamwork
Increasingly complex application requirements
•
Increasingly complex customer models
•
Compressed time to market requirements
•
Application support, not device support, is
•
required
More complete solutions are demanded
•
The competition continues to increase,
•
improve and disrupt
Internet both provides and limits access to
•
design engineers
quot;Individuals play the game, but teams beat the odds.”
– U.S. Navy SEALs
TM
Freescale Semiconductor Confidential and Proprietary Information. Freescale™ and the Freescale logo are trademarks
of Freescale Semiconductor, Inc. All other product or service names are the property of their respective owners. © Freescale Semiconductor, Inc. 2008.

86. Teamwork and Intelligence:
Arrow and Freescale
Together, we provide:
Financial strength, inventory and customer credit
•
Wide customer base and reach
•
Demand creation capabilities
•
AP market presence to capture and leverage
•
design activity
New technology solutions for target market
•
segments
Deep customer and market knowledge
•
Critical technology and technical expertise
•
“Talent wins games, but teamwork
and intelligence wins championships.”
–Michael Jordan
TM
Freescale Semiconductor Confidential and Proprietary Information. Freescale™ and the Freescale logo are trademarks
of Freescale Semiconductor, Inc. All other product or service names are the property of their respective owners. © Freescale Semiconductor, Inc. 2008.

87. A Powerful Market Combination:
Arrow and Freescale
Networking
Wireless
Consumer
Industrial
Automotive
• Portable devices • Cellular &
• Connectivity • Cellular
Safety
•
Portable
Environmental • Medical/Health • Health evolution of
•
• Media
• Energy
• Lighting, broadband data
Comfort/
•
convergence
Management
Building • Increase in # of
Entertainment
• Home
Automation Internet
entertainment
• Low Power households
• Gaming • Ubiquitous
connectivity
TM
Freescale Semiconductor Confidential and Proprietary Information. Freescale™ and the Freescale logo are trademarks
of Freescale Semiconductor, Inc. All other product or service names are the property of their respective owners. © Freescale Semiconductor, Inc. 2008.

88. Transforming the Market:
Arrow and Freescale
Together, we will: TM
Heighten focus on fastest growing market segments
•
Seek opportunities to leverage portfolio across markets
•
Better leverage geographic presence to meet supply and demand
•
Continually improve supply chain efficiency, worldwide coordination
•
Maintain investment in skilled, talented teams
•
Provide unparalleled customer support
•
Exceed industry growth expectations
•
Freescale: 2X by 3 in key growth segments
•
TM
Freescale Semiconductor Confidential and Proprietary Information. Freescale™ and the Freescale logo are trademarks
of Freescale Semiconductor, Inc. All other product or service names are the property of their respective owners. © Freescale Semiconductor, Inc. 2008.

89. TM
Freescale Semiconductor Confidential and Proprietary Information. Freescale™ and the Freescale logo are trademarks
of Freescale Semiconductor, Inc. All other product or service names are the property of their respective owners. © Freescale Semiconductor, Inc. 2008.

90. FINANCIAL REVIEW
Paul Reilly
Senior Vice President and
CFO

91. STRONG REVENUE GROWTH
Driven by both organic growth and acquisitions
$16.0
$13.6
$11.2
$10.6
17%
CAGR
$8.5
$7.3
>12%
CAGR Ex
Acqs*
2002 2003 2004 2005 2006 2007
Total Sales ($Bn)
*Excluding baseline KeyLink, Alternative Technology, InTechnology, DNS, Ultra Source, Disway, and Pioneer

92. OPERATING AT GREATER LEVELS OF EFFICIENCY
In the last five years we have reduced our cost structure by over
30% while sales have grown nearly 120%
14.9%
9.9%
2002 2007
Operating Exp*/Sales ($MM)
*Represents GAAP measure adjusted to exclude items affecting comparability

93. IMPROVED WORKING CAPITAL PERFORMANCE
Improved operating efficiency and focused management of working
capital has driven improvements in all metrics
10.9%
27.8%
24.5%
15.2%
9.8%
3.4%
2002 2007 2002 2007
2002 2007
WC/Sales* ROIC***
ROWC**
*Inventory + AR - AP at end of period/ sales **ROWC = operating income excluding restructuring and other charges/(Avg Inv. + Avg AR +Avg AP)
***ROIC = Tax effected op. income and equity in earnings of affiliates excluding restructuring and other charges - minority interest/(Avg Debt + Avg
Equity – Avg Cash over $150MM)

94. WELL POSITIONED TO PERFORM THROUGHOUT THE CYCLE
We have reduced our earnings volatility
Arrow Today Structural Semi Industry Changes
More disciplined approach to
Increased opportunities in ECS More disciplined approach to
Increased opportunities in ECS
inventory
inventory
Now 1/3 of our revenue base
Now 1/3 of our revenue base
Inventory days at lows throughout
Inventory days at lows throughout
More flexible cost structure
More flexible cost structure the supply chain
the supply chain
$210MM in cost savings since ’03
$210MM in cost savings since ’03
More rational capital spending and
More rational capital spending and
Increased compensation variability utilization rates
Increased compensation variability utilization rates
Earnings floor established
Earnings floor established Increased use of foundries creates
Increased use of foundries creates
Diverse geographic footprint greater flexibility
Diverse geographic footprint greater flexibility
Broad customer base in non-traditional Semi industry growing at aamore
Broad customer base in non-traditional Semi industry growing at more
end markets stable rate
end markets stable rate
140,000 customers, no one customer >>
140,000 customers, no one customer
than 2% sales
than 2% sales
CF positive throughout the cycle
CF positive throughout the cycle
Book value of $30 per share
Book value of $30 per share

95. WELL POSITIONED TO PERFORM IN THE FACE OF A WEAKENED
ECONOMY
Downside
Scenario
2008E* Assumptions
In millions except per share data
Sales $16,400 $14,760 Sales decline of 10%
Operating Expense $ $1,675 $1,610 Variable expenses at 4% of sales
% 10.2% 10.9%
Operating Profit $ $660 $492
% 4.0% 3.3%
Interest Expense $100 $95 Interest savings from lower WC
Net Income $390 $277
EPS, Diluted $3.12 $2.21
Shares Outstanding 125 125
*Source: First Call estimates

96. CASH FLOW POSITIVE INDEPENDENT OF MARKET CONDITIONS
We have generated cash for six consecutive years totaling $4.2Bn
Cumulative Operating Cash Flow
($MM)
Capital Allocation Strategy
Invest in the business $5,000
$4,500
Acquisitions to strategically
$4,000
accelerate growth that meet
our value criteria $3,500
$3,000
Evaluate options to return
$2,500
value to shareholders
$2,000
Maintain investment grade
$1,500
rating over the long-term
$1,000
2001 2002 2003 2004 2005 2006 2007

97. STRONGEST BALANCE SHEET IN TEN YEARS
The health of our balance sheet is a competitive advantage
Decrease in net debt & net debt to cap to lowest level in ten years
Access to $1.4Bn in committed liquidity facilities
Conservative debt maturity profile with next maturity not until 2010
ROIC* above WACC for 17 consecutive quarters
Rated BBB- with a stable outlook by all three rating agencies
*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)