Arrow Electronics
Investor Presentation
May 2024
Safe harbor
This presentation includes "forward-looking" statements, as the term is defined under the federal securities laws, including but not limited to statements regarding: Arrow's future financial performance, including its outlook on financial results for the second quarter of fiscal 2024 such as sales, net income per diluted share, non-GAAP net income per diluted share, average tax rate, average diluted shares outstanding, interest and other expense, impact to sales due to changes in foreign currencies, intangible amortization expense per diluted share, restructuring and integration charges per diluted share, and expectations regarding market demand and shareholder returns. These and other forward-looking statements are subject to numerous assumptions, risks, and uncertainties, which could cause actual results or facts to differ materially from such statements for a variety of reasons, including, but not limited to: unfavorable economic conditions; disruptions or inefficiencies in the supply chain; political instability; impacts of military conflict and sanctions; industry conditions; changes in product supply, pricing and customer demand; competition; other vagaries in the global components and the global enterprise computing solutions ("ECS") markets; deteriorating economic conditions, including economic recession, inflation, tax rates, foreign currency exchange rates, or the availability of capital; the effects of natural or man-made catastrophic events; changes in relationships with key suppliers; increased profit margin pressure; changes in legal and regulatory matters; non-compliance with certain regulations, such as export, antitrust, and anti-corruption laws; foreign tax and other loss contingencies; breaches of security or privacy of business information; outbreaks, epidemics, pandemics, or public health crises; and the company's ability to generate positive cash flow. For a further discussion of these and other factors that could cause the company's future results to differ materially from any forward-looking statements, see the section entitled "Risk Factors" in the company's most recent Annual Report on Form 10-K, as well as in other filings the company makes with the Securities and Exchange Commission. 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.
In addition, this presentation includes certain non-GAAP financial measures. These non-GAAP financial measures, which may be different than similarly titled measures used by other companies, are presented to enhance investors' overall understanding of our financial performance and should not be considered a substitute for, or superior to, the financial information prepared and presented in accordance with GAAP. See "Certain Non-GAAP Financial Information" for more information and a reconciliation between GAAP and non-GAAP measures provided in this presentation.
2
Agenda
- Overview
- Business detail - global components
- Business detail - global enterprise computing solutions
- Financials
- Additional information and financial tables
3
Overview
4
Our noble purpose
We enable technology solutions that make a positive difference
in people's lives; we
guide the power of innovation to make the world better.
Our history
1935 | 1946 | 1961 | 1979 | 1986 | 2005 | 2011 | 2024 |
Arrow Radio | Incorporated | Arrow goes | Listed on | 50+ | Arrow expands | Arrow moves | Arrow tops |
opens on | as Arrow | public | NYSE (ARW) | acquisitions | computer | HQ from | category in |
Radio Row | Electronics | and | products | New York to | FORTUNE's | ||
in New | expansion | business | Colorado | "World's Most | |||
York City | into Europe | beyond North | Admired | ||||
and Asia | America | Companies" list | |||||
for 11 | |||||||
consecutive | |||||||
years |
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Executive leadership & core values
Ethical
We believe in and behave with integrity and respect at all times, when everyone is watching and when no one is watching.
Open-Minded and Courageous
We believe in and behave with well-intended curiosity, welcoming diverse ways of thinking and working, expanding our mind- and behavior sets, when venturing and when persevering.
Results-Oriented and Accountable
We believe in and behave with responsibility and ownership for the quality of our work, when accomplishing intended outcomes and when course correcting.
Innovative
We believe in original thinking and executing new ideas, continuously adapting our mind- and behavior-sets to create increased value.
Customer Centricity
We believe in and behave with a customer-first orientation, earning trust and loyalty, and driving repeat and growing business.
One Arrow
We believe in and behave with the broadest view of our organization, understanding the vital role we each play for the greatest good of all stakeholders.
Sean J. Kerins
President and Chief
Executive Officer
Raj Agrawal | Alan Bird | Carine Jean-Claude | Steve Kerdock |
Senior Vice President, | Senior Vice President, | Senior Vice President, | Senior Vice President, |
Chief Financial Officer | Chief Transformation | Chief Legal Officer and | Chief Marketing |
Officer | Secretary | Officer |
Chuck Kostalnick | Rick Marano | Eric Nowak | Shantnu Sharma |
Senior Vice President, | President, Global | President, Global | Senior Vice President, |
Chief Logistics and | Components | Enterprise Computing | Chief Strategy and |
Procurement Officer | Solutions | Technology Officer |
Kim Brown Wilmsen | Gretchen K. Zech | ||||
Senior Vice President, | Senior Vice President, Chief | ||||
Chief Information | Governance, Sustainability, | ||||
Officer | and Human Resources | ||||
Officer |
7
Arrow Electronics at a glance
We enable technology solutions that make a positive difference in people's lives; we guide the power of
innovation to make the world better
Centennial, CO | ARW (NYSE) |
HEADQUARTERS | TICKER SYMBOL |
53 | 109 |
COUNTRIES WITH EMPLOYEES | |
FORTUNE 500 RANK | |
22,000+ | |
EMPLOYEES | |
>210 | $33.1 billion |
2023 SALES | |
WORLDWIDE LOCATIONS | |
80+ | 1935 |
COUNTRIES SERVED | FOUNDED |
- Global provider of products, services, and solutions to industrial and commercial users of electronic components and enterprise computing solutions
- The company has two business segments:
- The global components business distributes electronic components
- The global enterprise computing solutions ("ECS") business provides information technology solutions
-
Global components has operations in the Americas, EMEA and the Asia-Pacific regions; global
enterprise computing solutions has 2023 Sales
operations in the Americas and | 77% |
EMEA
23%
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We specialize in managing complexity
85 | 39 |
Distribution & Value | |
Countries | Added Centers |
180
Sales Facilities
9
Arrow's approach to ESG
Board of Directors
2024 ESG GOALS
Audit Committee
Reviews sustainability
disclosures, including relevant ESG metrics; oversees data privacy and cybersecurity
Corporate Governance
Committee
Oversees policies and practices
relating to ESG matters
Compensation
Committee
Oversees practices affecting
the workforce, including
corporate culture and diversity
and inclusion
• Continue to reduce Scope 1 and 2 emissions in 2024, supporting our |
multiyear goal to reduce Scope 1 and 2 emissions by 10% across all |
Arrow locations and fleet by the end of 2025 |
• Set science-based targets (SBTs) in alignment with the Science Based |
Targets initiative (SBTi) by 2025 and reinforce with the long-term |
aspiration to achieve 100% renewable electricity as may be available |
by 2030 |
• Implement a new leadership development program to prepare high- |
potential individual contributors for future leadership opportunities |
and incorporate robust inclusion training into HR-sponsored |
Senior Vice President
Chief Governance, Sustainability, and Human Resources Officer
Executive Leadership and oversight
ESG Operating Committee
Guides ESG priorities and related performance
ESG Working Groups
Functional experts that facilitate data sharing, implement processes, and monitor
progress toward ESG goal achievement
Environmental | Social | Governance |
Working Group | Working Group | Working Group |
leadership development programs, supporting our multiyear |
aspiration that leadership representation of women leaders globally |
and leaders who are of underrepresented race/ethnicity in the U.S. |
aligns with our overall employee representation and with the total |
available talent market in the communities where we operate around |
the world |
• Continue ongoing global pay equity analysis and adjust pay where |
appropriate to close any pay equity gaps |
• Implement mechanisms to continuously collect employee feedback |
on effectiveness of compliance resources and perception of ethical |
culture |
• Deploy a globally centralized, external-facing privacy management |
tool to enable more efficient administration of user privacy |
preferences. |
Reference Arrow's ESG subsitefor more details
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Disclaimer
Arrow Electronics Inc. published this content on 02 May 2024 and is solely responsible for the information contained therein. Distributed by Public, unedited and unaltered, on 02 May 2024 18:06:04 UTC.