CDW : 2025 Annual Meeting CDW 2024 Annual Report

Make amazing happen.

2024 Annual Report

FINANCIAL PERFORMANCE

$2.5 B

$2.5 B

CDW's Balanced Portfolio 2024 Net Sales - $21.0 B

All six customer sales channels delivered approximately

$1.5 Billion or greater in Net sales

$3.2 B

$2.5 B

$1.5 B

$8.8 B

Corporate

(>250 employees)

Small Business

(<250 employees)

Government

7%

5-Year CAGR

6%

5-Year CAGR

(Federal, State and Local)

Education

(K-12, Higher Ed)

Healthcare

Other

(Canada, UK)

At CDW, everything we do revolves around meeting the needs of our customers.

6%

5-Year CAGR

CDW's integrated technology solutions and services helped approximately 250,000 business, government, education and healthcare customers in 150 countries navigate an increasingly complex IT landscape and optimize the return on their technology investment.

$3.04

$3.21

$3.57

8.6%

$1,735

$2,051

Non-GAAP operating income (NGOI)* ($MM)

GAAP operating income ($MM)

NGOI Margin* (%)

NGOI Compound Annual Growth Rate

7.6% 7.6%

6.3%

6.5%

$1,1 76

$1,134

$1,405

$1,368

$1,651

$1,681

$1,647

$2,036

2016 2020 2021 2022 2023 2024

7.6%

$1,416

$1,645

2016 2020 2021 2022 2023 2024

$6.56

$786

$654

$7.67

$686

$1,116

$6.52

$6.76 $6.88

$1,115

$1,078

$1,104

$1,287

$1,346

$1,342

Non-GAAP net income* ($MM)

GAAP net income ($MM)

Non-GAAP net income per diluted share* ($)

Non-GAAP net income per diluted share Compound Annual Growth Rate

$6.10

$737

$602

Return on Working Capital**

58.0%

58.7%

56.1%

63.7%

65.5%

66.1%

2016 2020 2021 2022 2023 2024 2016 2020 2021 2022 2023 2024

* Non-GAAP operating income, Non-GAAP operating income margin, Non-GAAP net income and Non-GAAP net income per diluted share are non-GAAP financial measures. Please refer to "Use of Non-GAAP Financial Measures" on the inside back cover for further information.

** Return on Working Capital ("ROWC") is defined as the percentage of Non-GAAP Operating Income Aker-tax divided by Working Capital.

Please refer to "Use of Non-GAAP Financial Measures" on the inside back cover for further information.

Gross Profit ($B)

Gross Profit Compound Annual Growth Rate (CAGR)

$4.66

$4.65

$4.60

CEO STAKEHOLDER LETTER

Technology is undergoing unprecedented, accelerated change, delivering breakthroughs that are reshaping

our world at an incredible pace.

Generative artificial intelligence

(AI), autonomous digital agents and robotics are transforming sectors from healthcare to manufacturing to retail. New technologies are improving design and architecture, delivering

immersive experiences in education and entertainment, and enhancing customer experiences. Interconnectivity between devices, networks, and systems is more vital than ever, with data the most valuable asset, and security the critical foundation for success. At the same time, the world continues to redefine how we work, evolving from onsite to remote to hybrid and now every possible configuration with unhindered access to information. We are living in an exciting, yet complex technology environment.

In 2024, technology complexity existed against the backdrop of economic volatility. Despite pockets of strength, the economy faced recession fears, lingering high interest rates and inflation, all further complicated by the uncertainties associated with geopolitical tensions and a federal election.

Extraordinary Commitment to Customers

For CDW, everything we do starts with our customers. What do they need and how can we meet that need? In 2024, our customers faced uncertainty and complexity with limited resources.

They needed an expert partner who could help them maximize every dollar of IT investment today and help them prepare for tomorrow.

Once again, our team demonstrated their extraordinary commitment to customers. To address current needs, they leveraged our extensive portfolio to provide solutions that deliver short-term return on investment and cost flexibility. While this drove excellent performance in Cloud, Security and Services, it also compressed hardware demand, significantly impacting overall IT spending. To address future needs, our team utilized our deep expertise and strong partner relationships to help customers understand not only how to navigate and prepare for technological shiks, but how they can use new technologies to shape their future.

Our ability to address customers' current needs and help them shape their future underscores the strength

"Our ability to address customers' current needs and help them shape their future underscores the strength of our strategy and the power of our comprehensive, full-lifecycle solutions."

of our strategy and the power of our comprehensive, full-lifecycle solutions. It is a cornerstone of the enduring, differentiated value we provide to both customers and our vendor partners.

Financial Results

Within 2024's challenging demand environment our net sales declined 2 percent, and gross profit declined

roughly 1 percent. Non-GAAP operating income and non-GAAP net income per share declined by roughly 5 percent and 4 percent, respectively.

Broad Portfolio of Solutions and Services

The breadth of our product and solutions portfolio ensures we are well-positioned to meet our customers' needs and pivot quickly to trends in customer demand.

While our financial performance was not where we wanted it to be, the team's ability to meet customer needs delivered strong profitability and cash flow. Driven by the success of our strategy, our non-GAAP operating income margin was 2 percentage points higher than its 2019 level. You see the impact our strategy has had on profitability

in our gross profit and non-GAAP net income per share, with both increasing at a five-year compound annual growth rate of 9 percent.

Value to Stockholders

The more than $1.0 billion in adjusted free cash flow we generated provided excellent flexibility to execute against our capital priorities, and we returned

$832 million to shareholders via dividends and share repurchases in 2024. Our commitment to returning excess free cash flow to shareholders was reinforced by the December 2024 action by our Board of Directors to increase our share repurchase

	ON PREMISE	ON JOURNEY	ON MULTI-CLOUD
DESIGN	Solution Designs	Transformation Designs	Platform Designs
ORCHESTRATE	Solution Builds	Upgrades & Migrations	Cloud Services Builds
MANAGE	Operations & Support	Managed Migrations	Cloud Services & Resources

CDW CORPORATION 1

authorization by $750 million. Since our IPO in June 2013, our dividend has increased nearly fikeen-fold, and we have returned $7.2 billion to stockholders through dividends and share repurchases.

Building on Our Strengths

During 2024, we maintained our strategic focus and moved forward with initiatives that further strengthened our scale and sustainable competitive advantages.

We built on our productivity and efficiency, with a focus on streamlined sales processes and repeatable solutions. We continued to productize our approach to the fastest-growing, high-relevance technology vectors, particularly in wrap-around cloud services to make it easier for customers to adopt cloud solutions. Our digital capabilities were further aligned to serve customers the way they want to plan, buy, consume, and manage IT, including the launch of an intelligent recommendation model, part of our Trusted Digital Advisor, RUBI.

We also built upon our strong relevance to our customers, coworkers, and

value our unbiased, highly informed point of view. A point of view that enables our ability to architect and implement full-stack, multi-brand solutions that cut through the 'noise' and deliver outcomes that address each customer's unique needs. When CDW industry experts

sit side-by-side with the C-suite at the table, they add significant value to the decision-making process and move us up the technology stack with larger, more integrated, and more complex solutions.

CDW Healthcare showcases the power of industry expertise. More than two dozen former CIOs, CTOs, and clinical practitioners have been crucial in the development and launch of proprietary healthcare solutions, including innovative Healthcare Transformation Centers. Healthcare Transformation Centers provide collaborative spaces equipped with the latest technology and staffed by experts where healthcare organizations explore new concepts, develop strategies and test customized solutions. Our team of healthcare experts was also critical to the

development of our Patient Room Next solution, which integrates new technologies like smart sensors and AI with electronic medical records so healthcare professionals can

focus on patients. Patient Room Next delivers measurable outcomes, like reduced readmission rates, enhanced on-site safety, and increased patient satisfaction. Truly amazing outcomes.

Healthcare is just one example of how our solutions are helping make amazing outcomes happen across all facets of the economy, including education,

government, and businesses of all sizes in the US, UK, and Canada. Outcomes made possible by combining deep industry-specific expertise with our extensive portfolio and deep capabilities.

Over the past six years, we have invested over $3.5 billion to enhance our cloud and sokware capabilities and have onboarded over 2,000 service delivery coworkers. We added to these

capabilities in 2024 with the acquisition of Mission Cloud Services, a leader in

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partners. To enhance our agility and accelerate pipeline growth, we continued to deepen our technical and industry expertise across all end-markets. We know more than anything that customers

"When CDW industry experts sit side-by-side with the C-suite at the table, they add significant value to the decision-making process and move us up the technology stack with larger, more integrated, and more complex solutions."

Proven Track Record of Execution to Accelerate Capabilities

2021

Acquires Acquires Mission

2024

1984

CDW founded by Michael Krasny

Amplified IT, Cloud Services

F

ocal Point and

2003

Micro Warehouse Canada becomes CDW Canada

Sirius Computer Solutions

1995

CD

2006

Acquires Berbee Information Networks

2008

Launches Financial Services

W launches

2019

Acquires Scalar Decisions

and Aptris

CDW.com

1998

CDW•G

founded

2005

Opens Western Distribution Center Launches CDW Healthcare

2007

Launches Nonprofit

2015

Acquires UK-based Kelway

2023

Acquires Locus Recruiting

and Enquizit

2017

Launches CDW Small Business

2020

Acquires IGNW, Aeritae and Southern Dakota Solutions

PRODUCTS

INTEGRATED TECHNOLOGY SERVICES AND SOLUTIONS

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COMPLEXITY/ PRODUCTIVITY AND GROWTH BENEFITS

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2 CDW CORPORATION

Unique Value Proposition

CDW sits between customers and vendor partners, creating value for both.

Customer Value

Intimate Knowledge of IT Environment and Landscape

Vendor Partner Value

VALUE TO CUSTOMERS

• Broad selection of products and multi-branded IT solutions

• Value-added services with integration capabilities

• Highly skilled specialists and engineers

• Solutions across full IT lifecycle

• Industry vertical expertise

VALUE TO VENDOR PARTNERS

• Access to ~250,000 customers

• Large and established customer channels

• Strong distribution and implementation capabilities

• Customer relationships driving insight into technology roadmaps

• Industry vertical expertise

"Our value proposition is stronger than ever. This is why I am so confident about our future...regardless of market conditions and wherever priorities lie."

driving cloud adoption and migration. Mission Cloud Services complements other recent cloud investments, including cloud migration, cybersecurity, full-stack cloud-native sokware development, DevOps engineering, robust consulting, and cloud-based workflow automation expertise.

Investments like Mission Cloud Services are a vital component of our unique value proposition and ensure we are there to help our customers address their priorities today and shape their future.

Looking to the Future

In 2025, customers continue to face the challenge of operating within an uncertain, complex environment and new innovations continue to rapidly redefine the power of technology. At the same time, customers face accelerated workload and data growth, increased security threats, and a myriad of choices to enhance and address an aged installed base of client devices. Our customers need us now more than ever.

And we are ready. As we navigated the last two challenging IT market years, we never lost sight of the value we bring to our customers and vendor partners.

We deepened our expertise and our portfolio and increased our presence in security, cloud and services - three areas in the highest growth vectors that are critical to the adoption of new

technologies. Today, each area represents a multi-billion dollar business for us and is vital to our ability to help customers navigate today's unprecedented complexity. A great example of this in action is how we are helping customers on their Artificial Intelligence journey.

While early, we are gaining traction and have exciting offerings in the market today, including our Mastering the Art of AI Transformation Workshop (MOAT). Our MOAT workshops facilitate collaboration across customer organizations and create a holistic plan for AI adoption from return on investment analysis, data governance and security requirements through implementation. AI solutions are just one way our customer-centric approach to everything we do is delivering exceptional value.

Our value proposition is stronger

than ever. This is why I am so confident about our future. While there may

be bumps along the way, I know that regardless of market conditions and

wherever priorities lie, we will be there for our customers with the discipline and rigor that is CDW's hallmark, delivering the solutions they need for today and the future.

In Appreciation

I would like to extend my gratitude to the more than 250,000 customers

around the world who place their trust and confidence in us every day. You are why we exist. I also want to thank our more than 1,000 world-class technology partners for their collaboration and support. Lastly, I want to express my deepest appreciation to our more than 15,000 coworkers around the world

for their incredible commitment and dedication to our customers. You truly make amazing happen.

Christine A. Leahy Chair, President and Chief Executive Officer

April 9, 2025

Christine A. Leahy

CDW CORPORATION 3