1. Putting our imprint on technology since 1921. A c c e l e r a t i n g Y o u r S u c c e s s ™ Strategic Planning Challenges & Practices in the Technology Industry. Therese Bassett VP Strategic Planning and Business Intelligence Avnet Incorporated

2. A c c e l e r a t i n g Y o u r S u c c e s s ™ Avnet Confidential Agenda About Avnet Surviving and succeeding in today’s technology market Avnet’s Strategic Planning and Management Process Rules governing our planning process –Thinking and planning –Challenges –Cadence, discipline, alignment –Communication

3. A c c e l e r a t i n g Y o u r S u c c e s s ™ Avnet Confidential Avnet Inc. Vision Avnet will deliver the highest value to our customers, suppliers, employees and shareholders as the premier technology marketing, distribution and services company, globally.

4. A c c e l e r a t i n g Y o u r S u c c e s s ™ Avnet Confidential TS 39% EM 61% Avnet Inc Company Snapshot Founded in 1921 Incorporated in 1955 NYSE: AVT in 1959 Relocated headquarters to Ariz. in 1998 No. 172 on Fortune 500 June 30 fiscal year end FY07 Annual Revenue –Avnet, Inc. - $15.7 billion –Electronics Marketing - $9.7 billion –Technology Solutions - $6 billion ~ 300 locations in over 70 countries 300 suppliers/100,000 customers 52 Acquisitions since 1991 As of Q1 FY 2008

5. A c c e l e r a t i n g Y o u r S u c c e s s ™ Avnet Confidential Vital Link in Global Technology Supply Chain  Avnet effectively manages the complexity of the technology supply chain in a cost-efficient manner, delivering value to suppliers and customers Original Equipment Manufacturers End Users EMS / ODM Resellers and Systems Builders Semiconductors Interconnect Passive Electro- mechanical Software Vendors EMTS

6. A c c e l e r a t i n g Y o u r S u c c e s s ™ Avnet Confidential Global Logistics Scale & Scope 5.9 Million Orders 35 Billion Units 7.6 Million Line Items 134 Million Devices Programmed 250,000 Integrated Systems Value-added Regional Distribution Centers Quality Systems Pinpoint Logistics 2.0 Million Square Feet Computer Integration

7. A c c e l e r a t i n g Y o u r S u c c e s s ™ Avnet Confidential Asia Japan Korea Tianjin Shanghai Taiwan Hong Kong Singapore Shenzhen Melbourne India EMEA Germany Netherlands Belgium Israel S. Africa Americas Arizona California Kentucky Texas Mexico Canada >100k <100K Prog. Ctrs. V/A Integration Ctrs. 3PLs Avnet Logistics Network 711851244 = 1

8. Putting our imprint on technology since 1921. A c c e l e r a t i n g Y o u r S u c c e s s ™ Surviving and Succeeding in Today’s Technology Market

9. A c c e l e r a t i n g Y o u r S u c c e s s ™ Avnet Confidential The World of Technology Distribution

10. A c c e l e r a t i n g Y o u r S u c c e s s ™ Avnet Confidential The World of Technology Distribution Commoditization EM & TS  

11. A c c e l e r a t i n g Y o u r S u c c e s s ™ Avnet Confidential The World of Technology Distribution Commoditization EM & TS   Services Differentiation Evolution

12. A c c e l e r a t i n g Y o u r S u c c e s s ™ Avnet Confidential The World of Technology Distribution Commoditization EM & TS   Services Differentiation Evolution Consolidation Competitors Customers Suppliers

13. A c c e l e r a t i n g Y o u r S u c c e s s ™ Avnet Confidential The World of Technology Distribution Commoditization EM & TS   Services Differentiation Evolution Consolidation Competitors Customers Suppliers Globalization Suppliers Customers Information

14. A c c e l e r a t i n g Y o u r S u c c e s s ™ Avnet Confidential The World of Technology Distribution Commoditization EM & TS   Services Differentiation Evolution Consolidation Competitors Customers Suppliers Globalization Suppliers Customers Information Regulations RoHS WEEE Sarbanes-Oxley

15. A c c e l e r a t i n g Y o u r S u c c e s s ™ Avnet Confidential The World of Technology Distribution Commoditization EM & TS   Services Differentiation Evolution Consolidation Competitors Customers Suppliers Globalization Suppliers Customers Information  Visibility  Knowledge Regulations RoHS WEEE Sarbanes-Oxley

16. A c c e l e r a t i n g Y o u r S u c c e s s ™ Avnet Confidential The World of Technology Distribution Commoditization EM & TS   Services Differentiation Evolution Consolidation Competitors Customers Suppliers Globalization Suppliers Customers Information  Visibility  Knowledge Regulations RoHS WEEE Sarbanes-Oxley Technologies Wireless RFID VoIP

17. A c c e l e r a t i n g Y o u r S u c c e s s ™ Avnet Confidential The World of Technology Distribution Commoditization EM & TS   Services Differentiation Evolution Consolidation Competitors Customers Suppliers Globalization Suppliers Customers Information  Visibility  Knowledge Consumers Purchasing Power Knowledge Regulations RoHS WEEE Sarbanes-Oxley Technologies Wireless RFID VoIP

18. A c c e l e r a t i n g Y o u r S u c c e s s ™ Avnet Confidential The World of Technology Distribution Commoditization EM & TS   Services Differentiation Evolution Consolidation Competitors Customers Suppliers Globalization Suppliers Customers Information Keeping pace in a decade of change… Information  Visibility  Knowledge Consumers Purchasing Power Knowledge Regulations RoHS WEEE Sarbanes-Oxley Technologies Wireless RFID VoIP

19. A c c e l e r a t i n g Y o u r S u c c e s s ™ Avnet Confidential So what… Traditional technology distribution businesses are getting squeezed In order to remain the competitive global leader, we must develop new service and product solutions that are differentiated and high-value  Expand our customer base We must leverage our strengths in mature regions and develop similar competencies in each region of the world Leveraging our scale, scope, and supply chain visibility will be our differentiator and allow us to achieve competitive advantage Our strategic thinking, planning, and intelligence models need to address all of the above within a more complex global supply chain…

20. A c c e l e r a t i n g Y o u r S u c c e s s ™ Avnet Confidential Global Acquisition Our Strategy Evolution… VBM Focus on regional achievement of ROWC Greater scrutiny of engagement profitability First global acquisition Required coordination and harmonization of strategy across regions Predominantly a U.S. business Established global footprint & consolidated industry thru acquisition Emphasis on Asia expansion in latter part of the decade Strategies developed and executed regionally Conso lidatio n Era Glob al Differ entiat ion Accelerated investment in strategy that leverages scale & scope advantages for competitive differentiation Increased cross-regional partnering Structural alignment Development of strategy extensions Core business productivity enhancement acceleration Reg iona l Exc elle nce 1990 20002008…

21. Putting our imprint on technology since 1921. A c c e l e r a t i n g Y o u r S u c c e s s ™ Avnet’s Strategic Planning and Management Process

22. A c c e l e r a t i n g Y o u r S u c c e s s ™ Avnet Confidential Avnet’s Strategic Long-Range Planning S L R P trategic What do we want to look like? What’s changing? What are we good at? Where are we deficient? What to invest in today for tomorrow? A good strategy is one that asks and answers the right questions before everyone else

23. A c c e l e r a t i n g Y o u r S u c c e s s ™ Avnet Confidential Avnet’s Strategic Long-Range Planning S L R P trategic ong ange lanning Prioritizin g Opptys Investmen t Alignment Structure 3-5 Years Measures & Goals Execution “Strategy without tactics is the slowest route to victory. Tactics without strategy is the noise before defeat.” ---- Sun Tzu

24. A c c e l e r a t i n g Y o u r S u c c e s s ™ Avnet Confidential Rules that govern our process… 1.Clearly define Thinking and Planning processes

25. A c c e l e r a t i n g Y o u r S u c c e s s ™ Avnet Confidential Thinking vs. Planning Strategy Strategic Thinking Strategic Thinking Strategic thinking is the capability of an individual or group to capture disparate pieces of information, identify inherent themes or patterns, and synthesize these learnings into a vision of the long-term direction that a business should pursue. --Adapted from Corporate Strategy Board

26. A c c e l e r a t i n g Y o u r S u c c e s s ™ Avnet Confidential Thinking vs. Planning Strategy Strategic Thinking Strategic Thinking Thinking Activities  Interpreting environmental changes  Identifying opportunities & threats  Generating & evaluating alternatives  Assessing core competencies  Challenging assumptions/models  Creating visions, missions, and strategic imperatives  Proposing strategies  Redesigning organizational structure & business processes

27. A c c e l e r a t i n g Y o u r S u c c e s s ™ Avnet Confidential Thinking vs. Planning Strategy Strategic Thinking Strategic Thinking Planning Planning Activities  Documenting thinking outputs  Setting tactics & targets  Creating balanced scorecards & measures  Developing detailed action plans  Aligning resources with initiatives  Communicating the plan & the organization’s role in achieving it  Linking individual performance & development plans with team plans  Adjusting rewards to reinforce the objectives

28. A c c e l e r a t i n g Y o u r S u c c e s s ™ Avnet Confidential Rules that govern our process… 1.Clearly define Thinking and Planning processes 2.Understand your leadership team’s de facto starting point and challenge from there

29. A c c e l e r a t i n g Y o u r S u c c e s s ™ Avnet Confidential Challenges we – and others – face… Because companies that want breakthrough performance must fight some basic laws of nature: –Tomorrow’s strategy will be the same as yesterday’s strategy –Leadership focus on attainment of short-term goals –Long term risk avoidance –Tendency to isolate focus on internal performance – limit to within the scope of control –Biases and mental models shape what we see –Belief that continuous “challenging” of strategy creates chaos

30. A c c e l e r a t i n g Y o u r S u c c e s s ™ Avnet Confidential Rules that govern our process… 1.Clearly define Thinking and Planning processes 2.Understand your leadership team’s de facto starting point and challenge from there 3.Build cadence, discipline, and alignment into your process…but limit bureaucracy

31. A c c e l e r a t i n g Y o u r S u c c e s s ™ Avnet Confidential Strategic Planning Feb – June Execution All Year The Right Results Continuous Learning Performance Monitoring/ Management All Year QSPRs & Performance Appraisals Avnet’s Strategic Management ProcessResults When? Strategic Thinking All Year

32. A c c e l e r a t i n g Y o u r S u c c e s s ™ Avnet Confidential Achieving Alignment Define Global Objectives and LRP Targets Define Group Strategic Imperatives Define Divisional Strategies, and Goals Define Tactical Action Plans Define Projects Define Milestones CEOGroup President Divisional President Strategy Owner Tactic Owner Team Leader Regional President Define Regional Strategic Imperatives

33. A c c e l e r a t i n g Y o u r S u c c e s s ™ Avnet Confidential Rules that govern our process… 1.Clearly define Thinking and Planning processes 2.Understand your leadership team’s de facto starting point and challenge from there 3.Build cadence, discipline, and alignment into your process…but limit bureaucracy 4.Mobilize the critical mass "Leadership is a combination of strategy and character. If you must be without one, be without the strategy.“ Gen H. Norman Schwarzkopf

34. A c c e l e r a t i n g Y o u r S u c c e s s ™ Avnet Confidential The Role of Communication External –Wall Street –Lending Institutions / Rating Agencies –Customer / Suppliers –Alliance partners Internal –Board of Directors –Employees Line of Sight Index84% + Index Avnet Overall

35. A c c e l e r a t i n g Y o u r S u c c e s s ™ Avnet Confidential In Closing… Business is a race against time --- Where there is never enough time to answer all possible questions; And everyone gets the right answers eventually; Therefore, asking and answering the right questions first is vital to winning. Modified from University of Chicago Strategic Planning for Executives

36. Putting our imprint on technology since 1921. A c c e l e r a t i n g Y o u r S u c c e s s ™ Q&A Thank You