CDW CORPORATION INVESTOR PRESENTATION
2022 | FALL / WINTER
DISCLAIMERS
Forward-Looking Statements
Statements in this presentation that are not statements of historical fact are forward-looking statements within the meaning of the safe harbor provisions of the Private Securities Litigation Reform Act of 1995, including, without limitation, statements regarding the future financial performance, capital allocation priorities and growth prospects of CDW. These
forward-looking statements are subject to risks and uncertainties that may cause actual results or events to differ materially from those described in such statements. Although CDW
believes that its plans, intentions and other expectations reflected in or suggested by such forward-looking statements are reasonable, it can give no assurance that it will achieve those plans, intentions or expectations. Reference is made to a more complete discussion of forward-looking statements and applicable risks contained under the captions "Forward-Looking Statements" and "Risk Factors" in CDW's Annual Report on Form 10-K for the year ended December 31, 2021, and subsequent filings with the SEC. CDW undertakes no obligation to update or revise any of its forward-looking statements, whether as a result of new information, future events or otherwise, except as otherwise required by law.
Non-GAAP Financial Information
This presentation contains certain Non-GAAP financial measures, including Non-GAAP operating income, Non-GAAP operating income margin and Non-GAAP net income. Generally, a Non-GAAP financial measure is a numerical measure of a company's performance or financial condition that either excludes or includes amounts that are not normally included or excluded in the most directly comparable measure calculated and presented in accordance with US GAAP. For a reconciliation of Non-GAAP financial measures to the applicable most comparable US GAAP financial measures, see Exhibit 99.1 to CDW's Current Report on Form 8-K filed with the Securities and Exchange Commission on November 2, 2022 and the reconciliations included in these slides. Non-GAAP financial measures used by CDW may differ from similar measures used by other companies, even when similar terms are used to identify such measures.
Other
The historic combined financial information of CDW and Sirius Computer Solutions, Inc. presented herein is for illustrative purposes only and is not necessarily indicative of results that would have been achieved had the acquisition occurred at the beginning of the periods presented. The combined financial information is not intended to represent pro forma financial information under Article 11 of Regulation S-X. In addition, in arriving at the combined non-GAAP earnings per diluted share, CDW has applied its best judgment in conforming Sirius' pre- acquisition financial results to CDW's definition of non-GAAP earnings per diluted share.
2 | INVESTOR PRESENTATION
TRACK RECORD OF PROFITABLE GROWTH
- Market-leadingprovider of integrated technology solutions to business, government, education and healthcare customers for 35+ years
- Coworkers: ~12,300 US and ~2,700 international; over 2/3 are customer-facing(1)
- Full stack of technology solutions and services across the entire IT lifecycle
- Offers 100,000+ products and services from 1,000+ brands to more than 250,000 customers in the US, UK and Canada
- "Sweet spot" is customers with <5,000 employees
- Attractive business model with demonstrated track record of profitable growth
NET SALES ($B)(2) | |||||||||
$18.0 | $18.5 | $20.8 | |||||||
$16.2 | |||||||||
$13.7 | $14.8 | ||||||||
$12.1 | $13.0 | ||||||||
$10.8 | |||||||||
$10.1 | |||||||||
2012 | 2013 | 2014 | 2015 | 2016 | 2017 | 2018 | 2019 | 2020 | 2021 |
OPERATING INCOME ($MM)(2) |
Operating Income | Non-GAAP Operating Income | ||
$1,645
$1,217 | $1,368 | $1,405 | $1,419 | |||||||
$1,048 | $1,107 | $1,134 | $1,179 | |||||||
$961 | $987 | |||||||||
$851 | $820 | $867 | ||||||||
$747 | ||||||||||
$696 | $673 | $742 | ||||||||
$511 | $509 |
- As of September 30, 2022.
- 2015 and prior years have not been updated to reflect the adoption of Topic 606.
2012 | 2013 | 2014 | 2015 | 2016 | 2017 | 2018 | 2019 | 2020 | 2021 |
3 | INVESTOR PRESENTATION
LARGE AND GROWING MARKET OPPORTUNITY
The majority of the market is fragmented across thousands of value-added resellers.
CDW plus the next three largest publicly traded IT solutions companies(1) represent less than 10% of CDW's US addressable market.
TOTAL ADDRESSABLE MARKET
Total US, UK and
Canada IT Market(2):
~$1,200B
CDW Current
Addressable Market(2):
~$400B
CDW: $20.8B(3)
2017-2022E CAGR IT Spending: 7.7%(4)
- Estimated market share for top 4 publicly traded IT solutions companies: CDW, Insight North America, PC Connection, and e-Plus as of trailing twelve months last reported results.
- IDC and CDW internal estimates as of December 2021.
- For year ended December 31, 2021.
- IDC Worldwide Black Book, September 30, 2022, includes Consumer and B2B for US, UK and Canada markets.
4 | INVESTOR PRESENTATION
STRATEGY DRIVES SUSTAINED MARKET SHARE GROWTH
THREE-PART STRATEGY FOR GROWTH
1
Capture share and acquire new customers
2
Enhance capabilities in high-growth solutions areas
3
Expand services capabilities
CONSISTENT, FASTER-THAN-MARKET-GROWTH
US IT Spending CAGR (1) | CDW Net Sales CAGR |
9.3% | |
7.8% | 330 bps |
230 bps | |
5.5% | 6.0% |
2006-2021 | 2009-2021 |
1. IDC Worldwide Black Book, December 31, 2021.
5 | INVESTOR PRESENTATION
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CDW Corporation published this content on 02 November 2022 and is solely responsible for the information contained therein. Distributed by Public, unedited and unaltered, on 02 November 2022 12:24:05 UTC.
