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Accelerating Your Success™ 1 Avnet Analyst Day 2010 Performance & Potential Avnet, Inc. December 15, 2010.

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Presentation on theme: "Accelerating Your Success™ 1 Avnet Analyst Day 2010 Performance & Potential Avnet, Inc. December 15, 2010."— Presentation transcript:

1 Accelerating Your Success™ 1 Avnet Analyst Day 2010 Performance & Potential Avnet, Inc. December 15, 2010

2 Accelerating Your Success™ 2 Opening Remarks and Management Introductions Vince Keenan Vice President, Investor Relations

3 Accelerating Your Success™ December 2010 Avnet Analyst Day Agenda 9:30 am Check-in 10:00 amWelcome & IntroductionsVince Keenan Performance & PotentialRoy Vallee Operational UpdateRick Hamada Financial Update Ray Sadowski 12:00 pmBuffet Lunch 1:00 pmTechnology Solutions Phil Gallagher Electronics MarketingHarley Feldberg Wrap upRoy Vallee 2:45 pmConclude

4 Accelerating Your Success™ Safe Harbor Statement This presentation contains certain “forward-looking statements” within the meaning of Section 27A of the Securities Act of 1933 and Section 21E of the Securities Exchange Act of These statements are based on management’s current expectations and are subject to uncertainty and changes in factual circumstances. The forward-looking statements herein include statements addressing future financial and operating results of Avnet and may include words such as “will,” “anticipate,” “expect,” “believe,” and “should” and other words and terms of similar meaning in connection with any discussions of future operating or financial performance or business prospects. Actual results may vary materially from the expectations contained in the forward-looking statements. The following factors, among others, could cause actual results to differ materially from those described in the forward-looking statements: the Company’s ability to retain and grow market share and to generate additional cash flow, risks associated with any acquisition activities and the successful integration of acquired companies, any significant and unanticipated sales decline, changes in business conditions and the economy in general, changes in market demand and pricing pressures, any material changes in the allocation of product or product rebates by suppliers, allocations of products by suppliers, other competitive and/or regulatory factors affecting the businesses of Avnet generally. More detailed information about these and other factors is set forth in Avnet’s filings with the Securities and Exchange Commission, including the Company’s reports on Form 10-K, Form 10-Q and Form 8-K. Avnet is under no obligation to update any forward-looking statements, whether as a result of new information, future events or otherwise.

5 Accelerating Your Success™ 5

6 6 6

7 7 7 Adaptability Financial Conservatism Culture Profitable Growth Leadership

8 Accelerating Your Success™ 8 8 Gross Profit $ Volume ROCE Market Capitalization Gross Profit $ Volume ROCE Market Capitalization TECHNOLOGY DISTRIBUTION

9 Accelerating Your Success™ 9 9 Steve Phillips Chief Information Officer Avnet, Inc. 5 Years of Service Steve Phillips Chief Information Officer Avnet, Inc. 5 Years of Service MaryAnn Miller Chief Human Resources Officer Avnet, Inc. 4 Years of Service MaryAnn Miller Chief Human Resources Officer Avnet, Inc. 4 Years of Service David Birk Senior Vice President and General Counsel Avnet, Inc. 30 Years of Service David Birk Senior Vice President and General Counsel Avnet, Inc. 30 Years of Service Al Maag Chief Communications Officer Avnet, Inc. 13 Years of Service Al Maag Chief Communications Officer Avnet, Inc. 13 Years of Service Jim Smith President Avnet Logistics 10 Years of Service Jim Smith President Avnet Logistics 10 Years of Service Steve Church Chief Business Development and Process Officer Avnet, Inc. 20 Years of Service Steve Church Chief Business Development and Process Officer Avnet, Inc. 20 Years of Service

10 Accelerating Your Success™ Harley Feldberg President, Avnet Electronics Marketing 28 Years of Service Harley Feldberg President, Avnet Electronics Marketing 28 Years of Service Rick Hamada President and Chief Operating Officer Avnet, Inc. 27 Years of Service Rick Hamada President and Chief Operating Officer Avnet, Inc. 27 Years of Service Ray Sadowski Chief Financial Officer Avnet, Inc. 32 Years of Service Ray Sadowski Chief Financial Officer Avnet, Inc. 32 Years of Service Phil Gallagher President, Avnet Technology Solutions 28 Years of Service Phil Gallagher President, Avnet Technology Solutions 28 Years of Service Roy Vallee Chairman & Chief Executive Officer Avnet, Inc. 33 Years of Service Roy Vallee Chairman & Chief Executive Officer Avnet, Inc. 33 Years of Service

11 Accelerating Your Success™ Years in Business Years on NYSE Years of Sr. Leadership AVNET’S LONGEVITY

12 Accelerating Your Success™ 12 12

13 Macro Environment

14 Accelerating Your Success™ What a Difference a Year Two Years Make… Avnet’s served available market (SAM) grew faster than initially forecasted Most volatile 2 year period for semiconductor growth Concerns of a double-dip have been receding as the global economy continues to grow Remain in a gradual cyclical recovery Sources: Bishop, Electronics Outlook, Fleck, Gartner, IDC, iSuppli (Rev: 11/2010) Actual Dec 09 ForecastDec 10 Projection EM SAM-15%9%22% TS SAM-5%4%3% AVT SAM-7%5%7%

15 Accelerating Your Success™ Recession’s Impact on Semiconductors Source: SIA/WSTS (total semiconductors) 32% Growth  First time there has been two consecutive years of decline  First year of recovery more dramatic  V-shape recovery drove new industry record

16 Accelerating Your Success™ Semiconductor Y/Y Growth Rates Two 100 year floods in a decade Two 100 year floods in a decade Recession

17 Accelerating Your Success™ Semiconductor Y/Y Growth Rates Excluding the recessions, the worst quarters in this period were roughly flat year-over-year

18 Accelerating Your Success™ Semiconductor Y/Y Growth Rates Resulting in 5 years of uninterrupted growth

19 Accelerating Your Success™ Projected Semiconductor Growth Source: SIA/WSTS (total semiconductors)  Current forecasts project at least four years of growth  Total $ growth is greater than pre-recession Billion Billion Billion Billion

20 Accelerating Your Success™ Projected Semiconductor Growth Rates 10-year CAGR +14.9% 10-year CAGR +3.8% Source: SIA/WSTS (total semiconductors)  Next decade, two 100 year floods impacted semi CAGR  However, recession only interrupted semi market growth  90s growth driven by business spend 10-year CAGR +7.5%

21 Accelerating Your Success™ Recession’s Impact on IT Spend  Less volatile than the semiconductor industry  Projections reflect resumption of consistent growth  1 year decline versus 2 years Source: IDC (All Hardware, Software and Services) - 10/ Billion Billion Billion Billion  Total $ growth is greater post-recession

22 Accelerating Your Success™ GDP Growth Versus Total IT Spend IT Spend grew 6.5% 2.1x GDP IT Spend grew 6.5% 2.1x GDP IT Spend projected to grow 5.7% 1.6x GDP IT Spend projected to grow 5.7% 1.6x GDP 3 yrs leading into the recession 3 yrs leading out of the recession Hardware growth rate higher post recession Avnet Technology Solutions is ~70% Hardware Hardware growth rate higher post recession Avnet Technology Solutions is ~70% Hardware Source - IDC - Oct 2010; GDP - IMF Oct 2010

23 Served Available Market

24 Accelerating Your Success™ Total Growth $58B Total Growth $58B EM SAM – Continued Growth Following Record

25 Accelerating Your Success™ Total Growth $141B Total Growth $141B TS SAM – Steady Growth Toward One Trillion

26 Accelerating Your Success™ Large Market That is Leading the Recovery

27 Accelerating Your Success™ Avnet’s Global Growth Opportunity 27 *Avnet’s FY11 revenue is an estimate based upon Q1FY11 annualized excluding Prosys Avnet ~$24.2 Billion*

28 Accelerating Your Success™ Avnet’s Vision StatementAvnet will deliver the highest value to our customers, suppliers, to our customers, suppliers, employees and shareholders employees and shareholders as the premier technology marketing, distribution and services company, globally distribution and services company, globally

29 Accelerating Your Success™ Business Segment Overview Markets and distributes electronic components and embedded systems to OEMs, ODMs and EMS providers –Products include semiconductors, interconnect, passive, electromechanical and subsystems –Value-added services spanning the design and supply chains globally including substantial product enhancement Markets and distributes complex computer products to VARs, systems builders and OEMs –Products include enterprise servers, storage systems, embedded subsystems, networking software and services –Value-added services including marketing, tech support, configuration, integration, training and financial 1 Excludes corporate expenses, restructuring, integration and other charges 2 Working capital = Trade Receivables + Inventory - Payables 28% 72% 43% 57% 34% 66% TS EM TS EM TS EM FY 2010 Revenue FY 2010 EBIT 1 10/2/10 Working Capital 2 Technology Solutions (TS) Electronics Marketing (EM)

30 Accelerating Your Success™ Emerged from Recession a Much Stronger Company * Excludes ProSys -$1.8B +$1.1B -$1.8B +$1.1B Acquired 3 companies that add ~$4B of revenue and achieve 12.5% ROCE with no add’l debt or equity capital +$3B -$30M +$3B -$30M Revenue: Cash from Ops: Revenue: Cash from Ops:

31 Accelerating Your Success™ Avnet – Global Leader in Technology Distribution Gross Profit Dollar Volume Return on Capital Employed (ROCE) Market Capitalization VBM culture improving performance through the cycles Exited this downturn a much stronger company –Setting quarterly records for revenue, EPS and ROCE –More diversified revenue stream with significant growth opportunities –Experienced management team with proven, consistent performance Served market >$1.2 trillion and growing much faster than GDP Avnet is growing much faster than the market –Organic and value creating M&A

32 Q&A

33 Accelerating Your Success™ 33 The Path to Premier Rick Hamada President and COO

34 Accelerating Your Success™ 34 Executing to Avnet’s Vision Avnet’s Strategic Framework Our Enterprise Priorities & Initiatives –Value Based Management (VBM) Portfolio Management & Performance –Operational Excellence –Employee Engagement –Customer Engagement Global Infrastructure Scale & Scope

35 Accelerating Your Success™ 35 Avnet effectively manages the complexity of the technology supply chain in a cost-efficient manner, delivering value to suppliers and customers. Vital Link in Global Technology Supply Chain IT Original Equipment Manufacturers Non-IT Original Equipment Manufacturers End Users EMS / ODM Resellers, ISVs and System Builders Semiconductors Interconnect Passive & Electro- mechanical Devices Subsystems Software & Services Vendors EM TS

36 Accelerating Your Success™ Integrity2. Customer Service3. Accountability4. Teamwork5. Innovation Performance and Values Based Culture of Excellence Strategic Framework Be the preferred partner to our customers and suppliers Profitable Growth Attract, develop and engage the best employees People Development Consistently strive for flawless execution and process innovation Operational Excellence Deliver Industry-Leading Economic Profit Premier Technology, Marketing, Distribution and Services Company, Globally

37 Accelerating Your Success™ 37 Enterprise Performance: Balanced Scorecard Metric TypeGlobal ObjectivesAvnet KPMs Shareholder Deliver industry-leading economic profit. Economic Profit $ Growth ROCE ≥14.0% / ROWC ≥ 30.0% Customer & Supplier Be the preferred partner to our customers and suppliers. Customer Loyalty/ Customer Retention Gross Profit $ Growth Operational Excellence Consistently strive for flawless execution and process innovation. Operating Expense to NGP/ GP $ Per Employee Working Capital Velocity Employee Attract, develop and engage the best employees. On Time Performance Appraisals with Development Plans Employee Engagement Index

38 Accelerating Your Success™ 38 Enterprise Initiatives – Enhancing Avnet’s Culture Value-Based Management / Profitable Growth Operational Excellence Employee Engagement Customer Engagement

39 Accelerating Your Success™ 39 Business Portfolio Composition FY ‘10 Revenue Americas$3.4B EMEA$3.7B Asia / Japan$3.9B Avnet Electronics Marketing $11.0B Avnet Technology Solutions $8.2B FY ‘10 Revenue Americas$4.9B EMEA$2.3B Asia$1.0B

40 Accelerating Your Success™ 40 Portfolio Performance % of Avnet portfolio (by revenue) at or above long-term ROWC goal Avnet ROWC

41 Accelerating Your Success™ % Avnet’s Value-Based Management Journey ROCE Revenue ($B) 5% 10% $5$10$15$20 FY07 FY06 FY08 FY04 FY05 WACC Driving Value Driving Growth FY10 14% 16% FY %

42 Accelerating Your Success™ 42 Measuring Operational Excellence Avnet 5-year Gross Profit Dollar CAGR = +9.3% Avnet 5-year Operating Expense CAGR = +7.3% Avnet 5-year Operating Profit CAGR = +15.5% Q4 FY % Operating Expense as a % GP$

43 Accelerating Your Success™ 43 Customer EngagementEmployee Engagement “Putting the Service-Profit Chain to Work,” Heskett, et al., - Harvard Business Review Thoughtful organizational development strategies lead to a more productive and engaged workforce, a more loyal customer base, and higher shareholder returns. The Power and Impact of Engagement People Practices Employee Engagement and Organizational Climate Employee Engagement and Organizational Climate External Service Value Customer Satisfaction Customer Loyalty Profitability Revenue Employee Retention Employee Productivity

44 Accelerating Your Success™ Employee Engagement / Enterprise Performance (1) Excluding restructuring, integration and other items. US companies reported employee engagement on average declined ~9% 2008 vs. 2009* *Towers Watson and WorldatWork 2009/2010 U.S. Strategic Rewards survey Avnet Employee Engagement Avnet EPS Total Employees 9,9009,80010,90011,70012,80012,90014,200

45 Accelerating Your Success™ 45 Avnet’s Customer Engagement Evolution High RiskTrapped AccessibleTruly Loyal ATTITUDE BEHAVIOR Key metrics: Loyalty and Retention Formal survey process –89,000 customer contacts surveyed Regional analysis & action plans Understanding drivers of engagement Ongoing “Voice of the Customer” activities –Day-to-day relationship management, focus groups, advisory councils and online communities Walker Loyalty Matrix Satisfaction (early 2000’s) Loyalty (2006) Engagement (2010)

46 Accelerating Your Success™ 46 Avnet Global Logistics Scale & Scope ~ 2,500 employees Global footprint ~ 3 million sq. ft. Manage ~ 500,000 SKUs globally 99+% same day ship ~ 70% include value-add –Program 200+ million devices –Integrate 760,000+ systems –19.4+ million cable assemblies Quality performance currently exceeds 5 σ standards* 5-year CAGR = +5% * Five Sigma = 233 defects per million opportunities

47 Accelerating Your Success™ Avnet Global IT Scale & Scope 776 terabytes of storage 405 software applications ~ 3,600 virtual servers ~ 29,270 visitors to website daily ~ 700 IT professionals As of Q1 FY’11 95% spam filtered from 6 million s daily 68 integrations executed since 1991

48 Accelerating Your Success™ 48 Executing to Avnet’s Vision Strategic framework, planning and review process supporting world-class execution Enterprise initiatives drive performance-based culture of excellence Our global scale and scope positions us for continued profitable growth Avnet team is committed to shareholder value creation

49 Accelerating Your Success™ 49 Thank You

50 Accelerating Your Success™ 50 Financial Report Ray Sadowski Chief Financial Officer

51 Accelerating Your Success™ 51 Agenda Historical Results –Performance through the recession Strong Financial Position Long-term Business Model Acquisition Integration Update

52 Historical Results

53 Accelerating Your Success™ 53 Avnet’s Journey – The Last Decade ($ in billions) 6 years of growth with revenue peaking in CY ‘08 Tech Bubble downturn Less severe downturn Two 100 Year Floods in one decade; yet steady progress Record revenue in 2010 * CY10 is an estimate based upon three completed quarters and guidance for Q4CY10

54 Accelerating Your Success™ 54 Avnet, Inc. – Gross Profit $ and % * CY10 is an estimate based upon three completed quarters and guidance for Q4CY10 Margins impacted by geographic and business mix ($ in billions)

55 Accelerating Your Success™ 55 Significant operating leverage during periods of growth: Demonstrated during CY growth period Starting a new trend in CY 10 Avnet, Inc. – Operating Income $ and % * CY10 is an estimate based upon three completed quarters and guidance for Q4CY10 Note: Excludes restructuring, integration and other charges ($ in millions)

56 Accelerating Your Success™ 56 Avnet, Inc. – EPS Steep decline in profits tied to significant revenue loss Y/Y more than doubled to record level Excludes restructuring, integration and other charges * CY10 is an estimate based upon three completed quarters and guidance for Q4CY10 Dramatic trough to trough performance

57 Accelerating Your Success™ 57 * CY10 is an estimate based upon three completed quarters and guidance for Q4CY10 Avnet, Inc. - Working Capital Velocity & Inventory Turns Significantly higher velocity due to VBM and geographic and business mix

58 Accelerating Your Success™ 58 VBM Improved ROWC Note: Excludes restructuring, integration and other charges ROWC declined due to the dramatic cycle downturn ROWC moves to record level following recession VBM launched early 2001 ROWC improved as VBM combined with organic growth + M&A ROWC reached higher peak * CY10 is an estimate based upon three completed quarters and guidance for Q4CY10

59 Accelerating Your Success™ 59 VBM Improved ROCE Note: Excludes restructuring, integration and other charges ROCE declined due to the dramatic cycle downturn VBM launched early 2001 New ROCE target established in % - 16% ROCE improved as VBM combined with organic growth + M&A * CY10 is an estimate based upon three completed quarters and guidance for Q4CY10 New ROCE target range Previous ROCE target

60 Strong Financial Position

61 Accelerating Your Success™ 61 VBM Cash Flow from Operations $462m$725m$454m$1,118m$-19m Annual Totals $-30m ($ in millions)

62 Accelerating Your Success™ 62 $2.9 Billion of cumulative cash from net income + non-cash Items over the past 6 years VBM Cash Flow from Operations ($ in millions)

63 Accelerating Your Success™ 63 Strengthened Balance Sheet Key Credit Statistics (5.8%) (7.1%) (6.5%) (Effective interest rate noted above line) (5.6%) (5.0%) (5.4%) ($ in millions)

64 Accelerating Your Success™ 64 Financing Strategic Objectives Maintain Avnet’s Investment Grade credit ratings –Cost of Debt Capital –Access to Capital –Trading Partner Relationships –Competitive Position Optimize Avnet’s cost of capital Ensure adequate availability of capital / liquidity to meet the needs of the business –Fund organic growth –Fund M&A growth

65 Accelerating Your Success™ 65 Capital Allocation Strategy Disciplined internal resource allocation Reinvest cash generation for growth - primarily through value creating M&A = ROCE ≥ 12.5% –Continue to believe the best use of cash is to fund future growth Return “Excess” cash to shareholders when appropriate –Dividends (perpetual) –Stock buyback

66 Accelerating Your Success™ 66 Liquidity Framework Normal Float $200M $300M Working Capital Expansion $200M $500M Debt Due Within 3 Years Committed M&A $100M $100M Potential M&A $200M $500M Total $700M $1.4B Low High

67 Long-Term Business Model

68 Accelerating Your Success™ 68 Long-term Model Philosophy Remain committed to achieving ROCE of 14% – 16% –Adjusted for impairment of goodwill on legacy businesses = ~16% –Incremental investments including acquisitions will be held to a minimum 12.5% ROCE threshold Top operational goal is generating 30% ROWC at the enterprise level –Varies by group and region due to different tax rates Shift of business mix towards Asia and TS, including growth in Latin America, could negatively impact operating margins These margin declines should be positively offset by higher asset velocity

69 Accelerating Your Success™ 69 Long-Term Business Model *Note: ROCE goal of 12.5% = ~16.0% after impairment of goodwill; items above do not include restructuring, integration or other charges. No change from previous model

70 Accelerating Your Success™ 70 Operating Leverage Value Creating M&A

71 Accelerating Your Success™ 71 Revenue Seasonality Numbers provided are estimates for a typical quarter and can vary based upon several factors including but not limited to: –Economic/Market conditions –M&A activity –End of fiscal calendar –Foreign currency exchange rates Sequential Revenue Growth SeptDecMarJun EM +1% to -3%0% to -3%+4% to +7%0% to +4% TS -1% to -5%+22% to +28%-16% to -20% +3% to +7% Avnet 0% to -4% +8% to +12%-4% to -7%+1% to +5% Percent of Annual Revenue

72 Acquisition Integration Update

73 Accelerating Your Success™ 73 Bell Integration Update Note: Full synergies goal of $60 million annualized ($15 million per quarter) is expected to be achieved as we enter fiscal year Retained all key personnel, suppliers and customers Converted Bell’s Americas business to Avnet’s IT system Comfortable with synergy target of at least $60M

74 Accelerating Your Success™ 74 Summary Took advantage of the V-shaped recovery to deliver record results Long term priorities continue to focus on driving profitable growth and increasing Economic Profit $ –ROWC > 30% –ROCE = 14 – 16%; incremental > 12.5% Demonstrating strong operating leverage Strong balance sheet and liquidity –Investment grade credit statistics –Higher EPS and growth potential Proven mgm’t team; growing long-term shareholder value

75 Q & A

76 Accelerating Your Success™ 76 Technology Solutions Phil Gallagher December 15, 2010

77 Accelerating Your Success™ Agenda Avnet Technology Solutions (TS) – A Global Snapshot TS’ Strategic Imperatives –Customer Focused Go-to-Market Strategy –Global Scale and Scope –Portfolio Management 77

78 Accelerating Your Success™ Demonstrating Sustainable Growth We will create a sustainable competitive advantage and profitability for TS globally by developing technology solutions that generate value for the IT supply chain. Our Mission Accelerating Your Success™ 4-Year CAGR 13.2% 78

79 Accelerating Your Success™ Regional Revenue Mix Shift 4-Year CAGR: Asia = 41.4% EMEA = 17.9% Americas = 7.3% Q1FY11 includes Bell/Tallard 79

80 Accelerating Your Success™ World-Class Supplier Partnerships In Q1FY11, Avnet’s Top 10 suppliers* accounted for 73% of total revenue. * Includes Bell Micro We celebrate our supplier partnerships every day and are particularly proud of those that achieve significant milestones. 80

81 Accelerating Your Success™ Outperforming the Market Source: Avnet Data based on rolling 4 qtrs YoY growth- 1FQ11; IDC, Gartner, iSuppli – Oct 2010 We are outgrowing the market in all categories -- software and services at an accelerated rate, with hardware growth led by storage, ISS and networking. 81

82 Accelerating Your Success™ Demonstrating Market Leadership  Avnet is the largest value-added IT distributor in the world, with $8.2B in sales  Avnet has the only global footprint among its peer group  The industry recognizes Avnet’s thought leadership with our SolutionsPath® methodology  Avnet’s Global Solutions Centers provide integration capabilities that deliver a differentiated end-to-end supply chain for data center solutions around the world  The world’s leading suppliers of data center technology partner with Avnet to attract and grow the most successful enterprise resellers around the globe 82

83 Accelerating Your Success™ 83 Executing Our Strategic Imperatives 1.Achieve targeted ROWC in all regions 2.Continue to build and leverage TS’ global scale and scope 3.Focus on high-growth technologies and verticals 4.Strengthen TS’ value-added solutions enablement model 5.Support customer, reseller and supplier migration to cloud- based services

84 Market Focus

85 Accelerating Your Success™ Becoming a “Trusted Advisor” 85  Empowered consumers are driving businesses to become more agile, without compromise  Available, scalable, flexible, capacious and secure  Legacy infrastructure is complex and burdensome  Simplification, virtualization  New infrastructure can be quickly deployed with virtual data center assets (public or private cloud)  Line executives are challenging IT to support new, differentiated applications and service levels The channel partner of the future is a trusted advisor to their customer – understanding not only technology, but also its application and its business value.

86 Accelerating Your Success™ Serving a Very Large and Growing Market Source: Gartner, IDC & iSuppli – Nov 2010

87 Accelerating Your Success™ Vertical Growth Technology Growth Segmenting for Optimal Growth TAM CAGR, 4.7% Source: Gartner & IDC Oct

88 Accelerating Your Success™ Line of Business Executives and C-Suite Decision Makers Avnet interprets market needs, creates differentiated enablement programs and aggregates products & services to help our partners become trusted advisors. Extending the Value Chain with SolutionsPath® NetworkPath™ VirtualPath® MobilityPath™ SecurePath™ StoragePath™ FinancialPath™HealthPath®RetailPath™ EnergyPath™ GovPath™ Market Focused Customer Intimate …with a repeatable, scalable enablement framework. Industry, technology, application and customer expertise… Avnet Services CloudReady™ 88

89 Accelerating Your Success™ Increasing Supplier, Reseller and End-User Value Envision – Enable – Execute with our proven SolutionsPath® methodology “We continue to invest in helping our channel partners deepen skills, deliver value to clients, and pursue new opportunities for growth. We see that commitment to growth reflected in Avnet's resources and programs that they have developed to help IBM Business Partners sell complete solutions that meet the business needs of IBM's customers worldwide. Many of these programs are among the industry best practices for our channel." Rich Hume, general manager, global business partner and midmarket organization, IBM “Thanks to Avnet’s HealthPath® University and Internship and the skills that we have been able to further develop with their collaboration, we have the in-depth healthcare industry knowledge that stands out to hospitals and medical facilities and that quickly establishes us as trusted advisors.” Jeff Teeter, vice president, vertical solutions, Logicalis  Analytics & market opportunity identification  Strategic engagement & go-to-market strategy  Training and enablement  Demand creation  Service delivery 89

90 Accelerating Your Success™ cloud /kla ʊ d/ –noun 1.a set of services and technologies that enables the delivery of computing services over the internet in real time. 2.the delivery of IT resources via a shared network in the form of applications (SaaS), infrastructure (IaaS) and platform (PaaS). Assessing “The Cloud” Opportunity “The Cloud” is growing quickly and could become a much more significant portion of overall IT spend by 2014, with private cloud services outpacing public. Traditional IT Products -- 5% CAGR Public IT Cloud Services -- 27% CAGR Private IT Cloud Services (prelim) – 36% CAGR Source: IDC 2010 (note: Private IT Cloud Services are IDC's preliminary estimates) 90

91 Accelerating Your Success™ Private Cloud – Avnet is Here, Now  Public, Private or Hybrid?  Legacy infrastructure predicates a slow, deliberate migration to public cloud offerings  Private cloud solutions still dominate the landscape in Avnet’s served market  Avnet is CloudReady™  Portfolio of cloud offerings from the world’s leading technology suppliers  SolutionsPath® practices in all key cloud technologies  Hosted/managed service infrastructure  Partner enablement services, including end- user assessment services  PayNow™ financial program Avnet occupies a unique and differentiated place in the value chain for customers evaluation and migrating to cloud solutions. 91

92 Accelerating Your Success™ Public Cloud – Avnet is CloudReady™ Avnet is poised, in all regions of the world, to support our suppliers’, partners’, and customers’ respective pace of public cloud adoption.  Infrastructure still reigns  Even in most emerging markets, IT/voice infrastructure is still core  Cloud adoption is likely in back-office functions, not mission-critical ones  “Voice of the Customer” still rules  Councils, conferences, polls, surveys  Avnet has its finger on the pulse of the speed with which customers will move  The future is still unclear  The channel will always find its role and a way to add value  We consider team, time and tempo in all endeavors Predicting the impact of the internet 10 years ago is analogous to predicting the impact of the cloud today. Avnet is positioned to succeed, along with our trading partners. 92

93 Global Expansion

94 Accelerating Your Success™ Going Where the Growth Is 94 We continue to invest in markets that will provide the greatest growth opportunity, organically and through value-creating acquisitions. $141B *Note: Data represents breakdown of net new IT Spend Growth between 2010 to 2013 Source: Gartner, IDC & iSuppli – Oct 2010

95 Accelerating Your Success™ Extending our Global Footprint Americas $5.1B Revenue 17% YoY Growth EMEA $2.5B Revenue 16% YoY Growth Asia $1.1B Revenue 79% YoY Growth Recent Acquisitions Avnet Revenue & Growth based on Rolling 4 Qtrs Q1FY11 Bell Micro (NA, LAC, EMEA) ~~~ Tallard (LAC) ~~~ Datamation (Indonesia) ~~~ itX (Australia) ~~~ Sunshine (Vietnam) Recent Acquisitions Avnet TS-Served Countries 95

96 Accelerating Your Success™  NetApp Services  SyncSort  CommVault  Quantum  Apple (Latin America)  IBM (Latin America)  Riverbed  Oracle (Brazil, Mexico)  Oracle (Australia)  Dell (Vietnam)  HP (Vietnam and Indonesia)  NetApp (India)  VMware (Indonesia)  IBM (Indonesia, Vietnam)  Oracle (UK, Belgium, Luxembourg, Switzerland, Ireland, Hungary, Slovakia, Czech Republic, 16 countries in MENA)  HP (Hungary, UK)  Juniper (Poland, Czech Republic)  NetApp (Ireland, Netherlands, Germany, UK)  EMC/Data Domain (Mostly Eastern Europe)  VMware (Eastern Europe)  Avaya (Belgium, Ireland, Netherlands, Poland)  ShoreTel (pan European)  Symantec (Ireland, UK, Netherlands, Czech Republic, Slovakia)  Brocade IP (Eastern Europe)  HDS (France, Germany, Austria, Hungary)  Microsoft (UK)  IBM (Belgium, Netherlands, Turkey) Asia Americas EMEA We expand our line card to support our solutions distribution vision and provide our suppliers global market reach and operational scale. TS Global Line Card Expanding Partnerships* for Global Reach *Significant 2010 line card additions by region 96

97 Portfolio Management

98 Accelerating Your Success™ TS remains committed to value-based, portfolio management to drive our committed financial returns in each region. ▪ Continue to drive profitable growth ▪ Expand in LAC, with a focus on improving profitability ▪ Maintain strong regional ROWC performance Americas ▪ Continue driving toward targeted financial returns ▪ Leverage and scale regional expertise for pan- European support ▪ Expand appropriately in high-growth geographies ▪ Strengthen the line card to support our solutions and global growth strategies EMEA ▪ Accelerate drop-through with operational focus ▪ Continue to balance expansion opportunity with profitability ▪ Strengthen the line card to support our solutions and global growth strategies Asia Managing Regional Priorities98

99 Accelerating Your Success™  Avnet TS had a strong recovery in FY10 and is delivering financial returns within our targeted range.  Avnet is the leading IT solutions distributor in the world in scale and scope with revenues over $8B and presence in more than 70 countries.  Avnet intends to continue to outgrow the markets we serve by investing in high-growth technologies, vertical markets and geographies.  Avnet leads the industry with our SolutionsPath® methodology, redefining the role of distribution.  Avnet maintains world-class supplier and reseller partnerships that provide data center hardware, software and services solutions.  Avnet will continue to exercise value-based management across the TS portfolio to achieve our stated financial targets in all regions. 99

100 Q&A

101 Accelerating Your Success™ 101 Electronics Marketing Harley Feldberg President, Electronics Marketing

102 Accelerating Your Success™ Agenda Our Mission Market Opportunity Who We Are Growth Opportunities 102

103 Accelerating Your Success™ Our Mission Avnet Electronics Marketing will be the most successful electronic components distributor in the world by providing our customers & suppliers best-in-class design chain and supply chain solutions. 103

104 Market Opportunity

105 Accelerating Your Success™ 2011 Sizable Revenue and GP Opportunity $204 B ~ DTAM $14 B $9 B $49 B ~ Channel GP$ $900 M $6 B $4 B $73 B $14 B $72 B$ 10.9 B Source: Avnet EM TAM Sources: Electronics Outlook, Bishop, Fleck, Gartner, iSupply, Paumanok, SIA (Rev 11/5/10) DTAM/GP: Avnet EM estimates for independent franchise distribution TAM Medium Large Small $291 B Our global footprint positions us for strong share gain 105

106 Accelerating Your Success™ Design To Consumption – All Regions Matter Semiconductor Design TAM by Region 2009 Semiconductor Consumption by Region 2009 Source: Avnet EM BIO, Gartner, iSuppli The winning formula for components distribution requires strength in both 106

107 Accelerating Your Success™ Projected Components Growth through 2013 Semiconductors w/o MPUs, DRAMs or Flash Interconnect, Passive and Electromechanical 107

108 Accelerating Your Success™ Growth Forecasted in All Regions Sources: Bishop, Electronics Outlook, Fleck, Gartner, iSuppli, Paumanok, SIA (Rev: 11/2010) Equates to approximately $27B of DTAM Growth 2010 – 2013 Component TAM Growth Forecast 108

109 Who We Are

110 Accelerating Your Success™ Experienced EM Global Leadership Team Stephen Wong Asia Harley Feldberg President, EM Global Ravi Kichloo Semiconductor Business Dev. Tim Barber Design Chain Business Dev. Bill Crowell Finance Sean Fanning Marketing & Communications Ed Smith Americas Beth Ely Avnet Express Dayna Badhorn Strategic Planning Gerry Fay Supply Chain Global & Strategic Accounts Patrick Zammit EMEA Tom McCartney Japan / IP&E Average 20+ years of industry experience 110

111 Accelerating Your Success™ Unique Market Position Americas 40% EMEA 38% Asia 22% EM FY05 Americas 31% EMEA 35% Asia 36% EM FY10 Americas 67% EMEA 28% Asia 5% EM FY01 With all regions achieving financial metrics A balanced approach… $8.3B $6.3B$14.4B 111

112 Accelerating Your Success™ Specialized Customer Support Optimizing our value prop for our customers and suppliers Avnet Express Tier 1 AVNET SERVICE AMERICAS EMEA ASIA Japan Avnet United Avnet Velocity Core Distribution Supply Chain Solutions & Logistics Design Chain & Supply Chain Solutions Avnet EM Avnet Memec Avnet Embedded EBV Silica Avnet Abacus Avnet Memec Avnet Embedded Avnet EM Avnet Memec Avnet EM Avnet Unidux Tier 2 Tier 3 Tier 4 112

113 Accelerating Your Success™ Focused on Profitable Growth Our strong fundamentals maximize profitable growth… - Leadership - Scale & Scope - Growth Strategies 113

114 Growth Strategies

115 Accelerating Your Success™ The Winning Formula Global Strategies Design Chain Solutions Supply Chain Solutions Asia Japan E-Commerce IP&E Embedded Execute these strategies using: Our strengths as an industry leader Our global scale and scope Our ability to invest 115

116 Accelerating Your Success™ Avnet Electronics Marketing: Global Strategies Design Chain, Migration to Solutions Global Strategic Imperative We will offer the most compelling Demand Creation value proposition for both customers and suppliers –EM Design Chain Opportunity: –Design Chain: approximately 35% of our business –Over 800 Engineers Worldwide –Greater than 45K Design Wins Annually Tim Barber Why It Matters… Design TAM is dispersed Worldwide Suppliers are narrowing their focus both with customers and technology offering Customers want solutions, not just parts Affords us higher margins Customer entanglement 116

117 Accelerating Your Success™ Avnet Electronics Marketing: Global Strategies Supply Chain Solutions, Complex and Global Gerry Fay Global Strategic Imperative We will continue to develop leading- edge supply chain strategies to meet more complex customer demands – Avnet United: Global Business Mgmt – Business Migration: Linking inter- regional design and fulfillment – Avnet Velocity: Tier I Fulfillment-only Services – Complex Supply Chain Solutions influences approximately 15% of our business Why It Matters… Innovative Solutions Developed to Leverage the Core Business Extends ROI of Demand Creation Investments in the West Leverages our Scale and Scope Customer Entanglement 117

118 Accelerating Your Success™ Avnet Electronics Marketing: Global Strategies Growing in Asia, Profitably Global Strategic Imperative Drive a leading distribution model in Asia that effectively balances a focus on EP generation with an aggressive investment in regional growth –Develop effective connections with other regions to create a globally differentiated value for EM –Invest in, and develop, infrastructure that gives us scale and productivity Stephen Wong Why It Matters… Continue organic investments in growth segments Broad Coverage Achieving financial metrics Strong leadership with acquisition and integration experience Significant M&A opportunities Peer Group ~ $26B DTAM 118

119 Accelerating Your Success™ Avnet Electronics Marketing: Global Strategies Japan, Significant Market Opportunity Global Strategic Imperative We will continue to develop our business in Japan financially and operationally –Pursue additional acquisitions or alliances to create scope and scale Tom McCartney Why It Matters… Japan Design influences 20% of global spend Large fragmented market, Independent DTAM is approximately $12B Significant M&A opportunities Customer Supply Chain Complexity Increasing Enables further supplier collaboration on global engagements Top 32 Distributors 119

120 Accelerating Your Success™ Avnet Electronics Marketing: Global Strategies e-Commerce, Broadening Reach and Services Global Strategic Imperative Expand our e-commerce offering to enable “speed and convenience” procurement of high-profit, low- volume orders –Common global e-commerce engine (IT) –Online engineering for NPI –Regional customer interface models – Local Language – Local Currency – Local Inventory Beth Ely Why It Matters… Margin Enhancement Customer Expansion On-line Engineering Support Expanded Service Offering for Speed and Convenience $14 Billion small customer DTAM opportunity 120

121 Accelerating Your Success™ Avnet Electronics Marketing: Global Strategies IP&E Expansion, Selling Across the Board Global Strategic Imperative We will expand our “share of wallet” by further leveraging and extending our industry leading IP&E Portfolio – Specialized Resources in all regions – Critical element of Solution Selling Strategy Tom McCartney Why It Matters… Margin Enhancement Fragmented Distribution Channel provides Acquisition Opportunity Supplier Channel Consolidation Estimated $12B DTAM 121

122 Accelerating Your Success™ EM Global Strategy: Embedded, The Design Evolution Global Strategic Imperative Define and launch Avnet EM’s Embedded strategy regionally and globally – Implement a globally aligned strategy, incubated regionally, to extend EM’s value proposition in Embedded products – Ensure the successful integration of Bell business Why It Matters… Solution Selling Strategy New Integration Service Models Displays Embedded Boards HDD Sources: Gartner, IDC, iSuppli, (*Without TVs and Monitors), Avnet BIO Estimates Estimated $50B TAM 122

123 Accelerating Your Success™ Development Kits Supplier Created Avnet Created 3 rd Party Partners Operating Systems Microsoft Linux Production Modules Processing Communications Power Wireless Avnet’s Customer Touch Points…Expanding MPU /MCU DSP Programmable Logic ASIC Connectivity –Wired –Wireless Analog Power IP&E Displays Memory Embedded Boards –Extension of processor architecture Displays –Panels –Systems Integrated Systems –Supplier systems –Value added services Chip LevelSystem Level Embedded Solution Level Customer Benefits… Time to Market Development Costs 123

124 Accelerating Your Success™ Summary CY10, an exciting year, yielding outstanding results –All regions participated in the performance Technology continues to proliferate the globe Experienced and committed leadership team Global scale and scope matter more than ever Ability to invest organically and through acquisition Our strategic imperatives will accelerate profitable growth Looking forward, growth should continue at a steady pace Strong operating discipline regardless of market conditions 124

125 Q&A

126 Accelerating Your Success™ 126 Summary and Wrap-Up Roy Vallee Chairman & CEO

127 Accelerating Your Success™ Recognized Industry Leadership #142 on 2010 Fortune 500 Information Week recognizes Avnet among Top 250 Technology Innovators Launched 4 new vertical practices in high growth markets CIO Magazine Names Avnet CIO 100 Award Honoree Certified Cisco Unified Computing System Relocated assembly warehouse to Nogales, Mexico 2010 Fortune’s Most Admired EBV celebrates 40 years of success

128 Accelerating Your Success™ Avnet Portfolio: Performance & Potential 128 Sources: Bishop, Electronics Outlook, Fleck, Gartner, IDC, iSuppli (Rev: 11/2010)

129 Accelerating Your Success™ Avnet Portfolio: Performance & Potential 129

130 Accelerating Your Success™ Avnet’s Value-Based Management Journey ROCE Revenue 5% 10% $5$10$15$20$25 FY07 FY06 FY08 FY04 FY05 WACC Driving Growth FY10 16% 14% FY09 Accelerate EP$ Growth Post Bubble Recovery 12.5% Shareholder Value Great Recession V-Shaped Recovery

131 Accelerating Your Success™ 131 Leveraged post-tech bubble growth to new records –Doubled revenue to $18B with ROWC 2,199 basis points to 25.1% Performed well through the Great Recession –Trough to trough performance significantly improved –Quarterly records for revenue, EPS & ROCE in 1 st year of recovery $24B revenue run rate with expanded global footprint –More diversified and substantial growth opportunities ROCE is within target range at the enterprise level –Opportunity for expansion and/or higher growth Avnet is the global leader in technology distribution –Substantial opportunities to grow economic profits/shareholder value Demonstrated Performance & Exciting Potential

132 Accelerating Your Success™ Demonstrated Performance and Exciting Potential THANK YOU


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