2023 | SUMMER / FALL
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, 2022, and subsequent filings with the Securities and Exchange Commission (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 SEC on August 2, 2023 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.
2 | INVESTOR PRESENTATION
TRACK RECORD OF PROFITABLE GROWTH
NET SALES ($B)(2)
- Market-leadingprovider of integrated technology solutions to business, government, education and healthcare customers for 35+ years
- Coworkers: ~11,600 US and ~3,300 international; over 2/3 are customer-facing(1)
- Full stack of technology solutions and services across the entire IT lifecycle
- Offers 100,000+ products and services from 1,000+ brands to more than 250,000 customers in the US, UK and Canada
- "Sweet spot" is customers with <5,000 employees
- Attractive business model with demonstrated track record of profitable growth
- As of June 30, 2023.
- 2015 and prior years have not been updated to reflect the adoption of Topic 606.
- Refer to Appendix for reconciliation of non-GAAP measures for additional detail.
OPERATING INCOME ($MM)(2)(3)
Non-GAAP Operating Income
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):
2018-2023E CAGR IT Spending: 7.4%(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 2022.
- For year ended December 31, 2022.
- IDC Worldwide Black Book, June 30, 2023, includes Consumer and B2B for US, UK and Canada markets.
4 | INVESTOR PRESENTATION
STRATEGY DRIVES SUSTAINED MARKET SHARE GROWTH
THREE-PART STRATEGY FOR GROWTH
Capture share and acquire new customers
Enhance capabilities in high-growth solutions areas
Expand services capabilities
US IT Spending CAGR(1)
CDW Net Sales CAGR
1. IDC and CDW internal estimates as of December 2022.
5 | INVESTOR PRESENTATION
CDW Corporation published this content on 02 August 2023 and is solely responsible for the information contained therein. Distributed by, unedited and unaltered, on 02 August 2023 12:24:01 UTC.