INVESTOR PRESENTATION
2024 | FALL / WINTER
Track Record of Profitable Growth
- Market-leadingprovider of integrated technology solutions to business, government, education and healthcare customers for 40 years
- Coworkers: ~11,750 US and ~3,650 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 solutions 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 & GROSS PROFIT ($B)(2)
CAGR (2014 - 2023)
Net Sales: 7% | |||||||||||
Gross Profit: 10% | $16.2 | $18.0 | $18.5 | $20.8 | $23.7 | $21.4 | |||||
$13.0 | $13.7 | $14.8 | |||||||||
$12.1 | |||||||||||
$1.9 | $2.1 | $2.3 | $2.5 | $2.7 | $3.0 | $3.2 | $3.6 | $4.7 | $4.7 | ||
2014 | 2015 | 2016 | 2017 | 2018 | 2019 | 2020 | 2021 | 2022 | 2023 |
OPERATING INCOME ($M)(2)(3)
CAGR (2014 - 2023)
US GAAP Operating Income: 11% | $2,051 | $2,039 | ||||||||||
Non-GAAP Operating Income: 10% | $1,645 | $1,735 | $1,681 | |||||||||
$1,217 | $1,368 | $1,405 | $1,419 | |||||||||
$1,048 | $1,107 | $1,134 | $1,179 | |||||||||
$961 | $987 | |||||||||||
$851 | $820 | $867 | ||||||||||
$742 | ||||||||||||
$673 | ||||||||||||
2014 | 2015 | 2016 | 2017 | 2018 | 2019 | 2020 | 2021 | 2022 | 2023 |
- As of September 30, 2024.
- 2015 and prior years have not been adjusted to reflect the adoption of Topic 606 - FASB's accounting standards update on Revenue from Contracts with Customers.
3. Refer to Non-GAAP Reconciliations Deck on investor.cdw.com for reconciliation of non-GAAP measures for additional detail. | 3 |
Strategy Drives Share Gain In Large and Growing Market
THREE-PART STRATEGY FOR GROWTH
Capture Share and Acquire New
1Customers
2 | Enhance Capabilities in High-Growth |
Solutions Areas | |
3 Expand Services Capabilities
TOTAL ADDRESSABLE MARKET
Total US, UK and
Canada IT Market:
~$1,300B(1)
CDW Current
Addressable
Market:
~$440B(1)
The majority of the addressable market is fragmented across thousands of value-added resellers. CDW is an IT market leader, yet
it holds a low share of its approximately $440 billion(1) addressable market.
1. CDW internal estimates as of December 2023. | 4 |
Balanced Portfolio Offers Multiple Growth Drivers
Diverse Customer Channels and Geography Create Multiple Drivers of Growth and Diversification Against Macro and Exogenous Headwinds
2023 NET SALES & Y/Y GROWTH %
($21.4B, -10.0%)
NET SALES GROWTH
TOTAL | |
11% | CHANGE |
OTHER
(UK, Canada)
$2.6B
-12.2%
HEALTHCARE
$2.3B
-0.7%
CORPORATE
(>250 employees)
$9.0B
-13.4%
Great Recession
'08-'09 Change
(Other includes ATS & Canada)
Great Recession Recovery
'09-'11 CAGR
(Other includes ATS & Canada)
3% | 0% | |
-4% (11)% -22%-18%
30% 29%
19% 14% | 7% | +16% |
3% | ||
$3.3B EDUCATION -8.9%
(K-12, Higher Ed)
$2.7B
+3.7%
GOVERNMENT
(Federal, State &Local)
$1.6B
-19.7%
SMALL BUSINESS
(≤250 employees)
IPO - 2019
'13-'19 CAGR(1)
(Other includes Canada & CDW UK)
COVID-19
'19-'20 Change
(Other includes Canada & CDW UK)
29%
7% | 8% 12% 9% | 5% | +9% |
43% | |
18% | |
+2% | |
-9%-7% | -12%-3% |
1. 2013 Net sales adjusted to reflect a comparable 2019 Net sales segmentation
5 |
Long Term Gross Profit Outperformance
NET SALES vs GROSS PROFIT GROWTH %
18% | 21% | ||
16% | 13% | ||
9% | 10% | 10% | |
6% | 7% | ||
2% | |||
-11%
-17%
'08-'09
Great Recession
'09-'11
Great Recession
Recovery
'13-'19
IPO to
Pre-Pandemic
Net Sales
'19-'20
Pandemic
Gross Profit
'20-'22
Pandemic Recovery
'13-'23
IPO to Current
6
Uniquely Positioned to Deliver Customer and Partner Value
CDW Sits Between Customers and Vendor Partners, Creating Value for Both
VALUE TO CUSTOMERS
- Broad selection of products and multi-branded IT solutions
- Value-addedservices with integration capabilities
- Highly-skilledspecialists and engineers
- Solutions across IT lifecycle
VALUE TO VENDOR PARTNERS
- Access to more than 250,000 customers
- Large and established customer channels
- Strong distribution and implementation capabilities
- Customer relationships driving insight into technology roadmaps
Customer
Value
Intimate Knowledge | Vendor |
of IT Environment | |
and Landscape | Partner |
Value |
7
HIGHLY
COMPLEX AND
INTERCONNECTED
CUSTOMER
EXPERIENCES
8
FULL SOLUTIONS STACK, FULL OUTCOME AND FULL IT LIFECYCLE
As a trusted advisor, we help customers navigate and be successful in an ever-changing world by providing them the technology advice and solutions they need, when they need them.
9
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.
We will continue to invest, organically and inorganically, in high- growth solutions and services capabilities.
ON PREMISE | ON JOURNEY | ON MULTI-CLOUD | ||||
SOLUTION | TRANSFORMATION | PLATFORM | ||||
DESIGN | DESIGNS | DESIGNS | DESIGNS | |||
SOLUTION | UPGRADES | CLOUD SERVICES | ||||
ORCHESTRATE | BUILDS | & MIGRATIONS | BUILDS | |||
OPERATIONS | MANAGED | CLOUD SERVICES | ||||
MANAGE | & SUPPORT | MIGRATIONS | & RESOURCES | |||
10
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Disclaimer
CDW Corporation published this content on October 30, 2024, and is solely responsible for the information contained herein. Distributed by Public, unedited and unaltered, on November 01, 2024 at 17:11:06.103.
