Business Wire | Oct 28, 2020 04:06PM EDT

Avnet Reports First Quarter Fiscal 2021 Financial Results

Oct. 28, 2020

PHOENIX--(BUSINESS WIRE)--Oct. 28, 2020--Avnet, Inc. (Nasdaq: AVT) today announced results for its first quarter ended October 3, 2020.

Fiscal First Quarter Key Financial Highlights:

* Sales of $4.7 billion, up from $4.2 billion in the previous quarter and $4.6 billion in the prior year quarter. * GAAP diluted loss per share of $0.19, compared with earnings per share of $0.40 a year ago. Non-GAAP adjusted diluted EPS of $0.36 compared with $0.60 a year ago. * Cash flow from operations totaled $122 million, and totaled $657 million over the trailing four quarter period. * Reduced revolving debt by $63 million with net debt of $879 million at the end of the quarter. * The first quarter sales of $4.7 billion and adjusted operating expenses of $451 million represent 14 weeks of activity compared to the normal 13-week quarter. Adjusted to a 13-week quarter, estimated organic sales were $4.4 billion and estimated adjusted operating expenses were $431 million.

CEO Commentary

"Our first quarter results reflect improving macroeconomic conditions and our renewed emphasis on effective execution within our Electronic Components business. Revenues were better than expected, driven by improving demand in our Asia region and across a variety of verticals, most notably auto. In the quarter, we sharpened our focus on our primary components distribution business and continued to diligently help our supplier partners deploy their technologies to meet the needs of our end customers," said Avnet Interim CEO Phil Gallagher. "We are rebalancing our strategy, realigning our organizational structure and we continue to see great value in Farnell's opportunity to strengthen Avnet's global digital footprint to be more responsive to customer and supplier needs. I am proud of how Avnet is managing through this challenging environment and diversifying our revenue streams to deliver on our 2021 fiscal year priorities of improving top-line growth, generating greater operating margin and earning an adequate return on capital."

KeyFinancial Metrics

($ inmillions,except per sharedata)

First Quarter Results (GAAP)^(1)

Sep - 20 Sep - 19 Change Y/Y Jun - 20 Change Q/Q

Sales $ 4,723.1 $ 4,630.0 2.0 % $ 4,159.7 13.5 %

Operating 18.5 62.7 (70.5 )% 1.9 863.6 % Income

Operating ) Income 0.4 % 1.4 % (97 bps 0.1 % 34 bps Margin

Diluted(Loss) $ (0.19 ) $ 0.40 (147.5 )% $ 0.53 (135.8 ) % EarningsPer Share

First Quarter Results (Non-GAAP)^(1)(2)

Sep - 20 Sep - 19 Change Y/Y Jun - 20 Change Q/Q

Sales $ 4,723.1 $ 4,630.0 2.0 % $ 4,159.7 13.5 %

AdjustedOperating 65.1 107.4 (39.4 )% 42.9 51.7 % Income

AdjustedOperating 1.4 % 2.3 % (94 ) 1.0 % 35 Income bps bpsMargin

AdjustedDiluted $ 0.36 $ 0.60 (40.0 )% $ 0.64 (43.8 ) % EarningsPer Share

Segment and Geographical Mix

Sep - 20 Sep - 19 Change Y/Y Jun - 20 Change Q/Q

ElectronicComponents $ 4,382.2 $ 4,294.2 2.1 % $ 3,867.6 13.3 % (EC) Sales^(1)

ECOperating 1.9 % 2.6 % (68 ) 1.5 % 41 Income bps bpsMargin

Farnell $ 340.9 $ 335.8 1.5 % $ 292.1 16.7 % Sales^(1)

FarnellOperating 3.5 % 6.5 % (298 ) 3.6 % (6 ) Income bps bpsMargin

Americas $ 1,205.7 $ 1,215.8 (0.8 )% $ 1,149.3 4.9 % Sales^(1)

EMEA Sales 1,480.7 1,470.9 0.7 % 1,344.2 10.2 % ^(1)

Asia Sales 2,036.7 1,943.3 4.8 % 1,666.2 22.2 % ^(1)

^(1) The first quarter of fiscal 2021 contained 14 weeks, compared to 13 weeksin the first and fourth quarters of fiscal 2020.

^(2) A reconciliation of non-GAAP financial measures to GAAP financial measuresis presented in the "Non-GAAP Financial Information" section of this pressrelease.

CFO Commentary

"In our first quarter, we generated $122 million of cash flow from operations. This is our eighth consecutive quarter of positive cash flow, which illustrates our team's continued execution in managing cash, working capital and debt as we proceed through the economic cycle," said Avnet CFO Tom Liguori. "Our $75 million annual operating expense reduction plan is on track and we expect it will be fully implemented for our second quarter. All of these initiatives support our 2021 fiscal year priorities, as Phil stated, of improving operating income and returns on capital while growing revenues."

Additional First Quarter Fiscal 2021 Updates

* Returned $21 million to shareholders with dividends paid during the quarter. * Avnet America awarded "Partner 2 Win- Distributor of the Year" by BAE Systems.

Outlook for the Second Quarter of Fiscal 2021 Ending on January 2, 2021

Guidance Midpoint Range

Sales $4.0B - $4.2B $4.4B

Non-GAAP Diluted EPS^(1) $0.33 - $0.38 $0.43

Estimated Annual Tax Rate 13% - 17% 15%

^(1) A reconciliation of non-GAAP guidance to GAAP guidance is presented in the"Non-GAAP Financial Information" section of this press release.

The above guidance is based upon market conditions existing as of today, and excludes amortization of intangibles, any potential restructuring, integration, and other expenses and certain income tax adjustments. The above sales guidance assumes approximately $200 million in lower sales of Texas Instruments products as compared to the first quarter of fiscal 2021. The above guidance assumes 100 million average diluted shares outstanding and average U.S. Dollar to Euro and GBP currency exchange rates are as shown below:



Q2 Fiscal

2021 Q1 Fiscal Q2 Fiscal

Guidance 2021 2020

Euro $1.18 $1.17 $1.11

GBP $1.30 $1.29 $1.28

Today's Conference Call and Webcast Details

Avnet will host a quarterly webcast and teleconference today at 1:30 p.m. PDT and 4:30 p.m. EDT to discuss its financial results and provide a corporate update. The webcast can be accessed via Avnet's Investor Relations web page at: www.ir.avnet.com, or from the following link Avnet Earnings Call Webcast and Slides.

Those who would still like to participate in the live call can dial 877-407-8112 or 201-689-8840. A replay of the conference call will be available for 30 days, through November 27 at 5:00 p.m. EDT, and can be accessed by dialing: 877-660-6853 or 201-612-7415 and using Conference ID: 13705277. The webcast will be available for 90 days.

Forward-Looking Statements

This document contains forward-looking statements within the meaning of Section 27A of the Securities Act of 1933, as amended, and Section 21E of the Securities Exchange Act of 1934, as amended, with respect to the financial condition, results of operations and business of the Company. You can find many of these statements by looking for words like "believes," "plans," "expects," "anticipates," "should," "will," "may," "estimates" or similar expressions. These forward-looking statements are subject to numerous assumptions, risks and uncertainties. You should understand that the following important factors, in addition to those discussed elsewhere in the Company's Annual Report on Form 10-K for the fiscal year ended June 27, 2020 and subsequent Quarterly Reports on Form 10-Q and Current Reports on Form 8-K, could affect the Company's future results of operations, and could cause those results or other outcomes to differ materially from those expressed or implied in the forward-looking statements: the scope and duration of the COVID-19 pandemic and its impact on global economic systems, access to financial markets and the Company's employees, operations, customers, and supply chain; competitive pressures among distributors of electronic components; an industry down-cycle in semiconductors; relationships with key suppliers and allocations of products by suppliers; risks relating to the Company's international sales and operations, including risks relating to the ability to repatriate cash, foreign currency fluctuations, duties and taxes, and compliance with international and U.S. laws; risks relating to acquisitions, divestitures and investments; adverse effects on the Company's supply chain, operations of its distribution centers, shipping costs, third-party service providers, customers and suppliers, including as a result of issues caused by natural and weather-related disasters, pandemics and health related crisis, social unrest or warehouse modernization and relocation efforts; risks related to cyber-attacks and the Company's information systems, including related to current or future implementations; general economic and business conditions (domestic, foreign and global) affecting the Company's operations and financial performance and, indirectly, the Company's credit ratings, debt covenant compliance, and liquidity and access to financing; geopolitical events, including the uncertainty caused by the United Kingdom's planned exit from the European Union commonly referred to as "Brexit"; and legislative or regulatory changes affecting the Company's businesses.

Any forward-looking statement speaks only as of the date on which that statement is made. Except as required by law, the Company assumes no obligation to update any forward-looking statement to reflect events or circumstances that occur after the date on which the statement is made.

About Avnet

Avnet is a global electronic components distributor with extensive design, product, marketing and supply chain expertise for customers and suppliers at every stage of the product lifecycle. For nearly a century, Avnet has helped its customers and suppliers around the world realize the transformative possibilities of technology. Learn more about Avnet at www.avnet.com. (AVT_IR)

AVNET, INC.

CONSOLIDATED STATEMENTS OF OPERATIONS

(UNAUDITED)



First Quarters Ended

October 3, September 28,

2020 2019

(Thousands, except per share data)

Sales $ 4,723,059 $ 4,630,009

Cost of sales 4,206,979 4,086,170

Gross profit 516,080 543,839

Selling, general and administrative 471,158 456,503 expenses

Restructuring, integration and other 26,420 24,598 expenses

Operating income 18,502 62,738

Other (expense) income, net (19,498 ) 4,931

Interest and other financing expenses, net (22,301 ) (33,631 )

Income (loss) before taxes (23,297 ) 34,038

Income tax benefit (4,408 ) (7,714 )

Net (loss) income $ (18,889 ) $ 41,752



Earnings (loss) per share:

Basic $ (0.19 ) $ 0.40

Diluted $ (0.19 ) $ 0.40



Shares used to compute earnings per share:

Basic 98,897 103,130

Diluted 98,897 104,377

Cash dividends paid per common share $ 0.21 $ 0.21



AVNET, INC.

CONDENSED CONSOLIDATED BALANCE SHEETS

(UNAUDITED)



October 3, June 27,

2020 2020

(Thousands)

ASSETS

Current assets:

Cash and cash equivalents $ 483,056 $ 477,038

Receivables, net 2,964,531 2,928,386

Inventories 2,944,673 2,731,988

Prepaid and other current assets 209,928 191,394

Total current assets 6,602,188 6,328,806

Property, plant and equipment, net 404,136 404,607

Goodwill 798,865 773,734

Intangible assets, net 47,448 65,437

Operating lease assets 288,669 275,917

Other assets 240,089 256,696

Total assets $ 8,381,395 $ 8,105,197



LIABILITIES AND SHAREHOLDERS' EQUITY

Current liabilities:

Short-term debt $ 166,992 $ 51

Accounts payable 2,005,126 1,754,078

Accrued expenses and other 535,376 472,924

Short-term operating lease liabilities 58,912 53,313

Total current liabilities 2,766,406 2,280,366

Long-term debt 1,195,203 1,424,791

Long-term operating lease liabilities 262,850 253,719

Other liabilities 379,425 419,923

Total liabilities 4,603,884 4,378,799

Shareholders' equity 3,777,511 3,726,398

Total liabilities and shareholders' equity $ 8,381,395 $ 8,105,197



AVNET, INC.

CONSOLIDATED STATEMENTS OF CASH FLOWS

(UNAUDITED)



First Quarters Ended

October 3, September 28, 2020 2019

(Thousands)

Cash flows from operating activities:

Net (loss) income $ (18,889 ) $ 41,752



Non-cash and other reconciling items:

Depreciation 21,845 24,669

Amortization 20,117 19,911

Amortization of operating lease assets 14,079 15,839

Deferred income taxes 6,614 (3,970 )

Stock-based compensation 4,961 7,218

Asset impairment expense 15,166 -

Other, net 10,898 8,034

Changes in (net of effects from businesses acquired and divested):

Receivables (7,116 ) (6,703 )

Inventories (136,426 ) (64,194 )

Accounts payable 228,740 189,746

Accrued expenses and other, net (37,545 ) (36,660 )

Net cash flows provided by operating activities 122,444 195,642



Cash flows from financing activities:

Borrowings under accounts receivable 166,900 110,800 securitization, net

Repayments under senior unsecured credit (234,190 ) (1,100 ) facility, net

Repayments under bank credit facilities and (545 ) (745 ) other debt, net

Repurchases of common stock - (110,805 )

Dividends paid on common stock (20,756 ) (21,451 )

Other, net 281 548

Net cash flows used for financing activities (88,310 ) (22,753 )



Cash flows from investing activities:

Purchases of property, plant and equipment (19,998 ) (29,864 )

Acquisitions of assets (18,700 ) -

Other, net 753 (12,515 )

Net cash flows used for investing activities (37,945 ) (42,379 )

Effect of currency exchange rate changes on 9,829 (12,507 ) cash and cash equivalents

Cash and cash equivalents:

- increase 6,018 118,003

- at beginning of period 477,038 546,105

- at end of period $ 483,056 $ 664,108

Non-GAAP Financial Information

In addition to disclosing financial results that are determined in accordance with generally accepted accounting principles in the United States ("GAAP"), the Company also discloses certain non-GAAP financial information including (i) adjusted operating income, (ii) adjusted operating expenses, (iii) adjusted other income (expense), (iv) adjusted income tax expense, (v) adjusted income from continuing operations, (vi) adjusted diluted earnings per share from continuing operations, and (vii) sales adjusted for the impact of significant acquisitions and other items (as defined in the Organic Sales section of this document).

There are also references to the impact of foreign currency in the discussion of the Company's results of operations. When the U.S. Dollar strengthens and the stronger exchange rates of the current year are used to translate the results of operations of Avnet's subsidiaries denominated in foreign currencies, the resulting impact is a decrease in U.S. Dollars of reported results. Conversely, when the U.S. Dollar weakens and the weaker exchange rates of the current year are used to translate the results of operations of Avnet's subsidiaries denominated in foreign currencies, the resulting impact is an increase in U.S. Dollars of reported results. In the discussion of the Company's results of operations, results excluding this impact are referred to as "constant currency." Management believes organic sales and sales in constant currency are useful measures for evaluating current period performance as compared with prior periods and for understanding underlying trends. In order to determine the translation impact of changes in foreign currency exchange rates on sales, income or expense items for subsidiaries reporting in currencies other than the U.S. Dollar, the Company adjusts the average exchange rates used in current periods to be consistent with the average exchange rates in effect during the comparative period.

Management believes that operating income and operating expenses adjusted for restructuring, integration and other expenses, goodwill and intangible asset impairment expenses and amortization of acquired intangible assets and other, are useful measures to help investors better assess and understand the Company's operating performance. This is especially the case when comparing results with previous periods or forecasting performance for future periods, primarily because management views the excluded items to be outside of Avnet's normal operating results or non-cash in nature. Management analyzes operating income and operating expenses without the impact of these items as an indicator of ongoing margin performance and underlying trends in the business. Management also uses these non-GAAP measures to establish operational goals and, in most cases, for measuring performance for compensation purposes. Management measures operating income for its reportable segments excluding restructuring, integration and other expenses, goodwill and intangible asset impairment expenses and amortization of acquired intangible assets and other.

Additional non-GAAP metrics management uses is adjusted operating income margin, which is defined as adjusted operating income (as defined above) divided by sales.

Management also believes income tax expense (benefit), income from continuing operations and diluted earnings (loss) per share from continuing operations adjusted for the impact of the items described above and certain items impacting other income (expense) and income tax expense (benefit) are useful to investors because they provide a measure of the Company's net profitability on a more comparable basis to historical periods and provide a more meaningful basis for forecasting future performance. Adjustment to income tax expense (benefit) and the effective income tax rate include the effect of changes in tax laws including recent tax law changes in the U.S., certain changes in valuation allowances and unrecognized tax benefits, income tax audit settlements and adjustments to the adjusted interim effective tax rate based upon the expected annual adjusted effective tax rate. Additionally, because of management's focus on generating shareholder value, of which net profitability is a primary driver, management believes income from continuing operations and diluted earnings (loss) per share from continuing operations excluding the impact of these items provides an important measure of the Company's net profitability for the investing public.

Any analysis of results and outlook on a non-GAAP basis should be used as a complement to, and in conjunction with, results presented in accordance with GAAP. All amounts below relate to Avnet's continuing operations.



Fiscal 2021

Quarter Ended

October 3, 2020*

($ in thousands, except per share amounts)



GAAP selling, general and administrative $ 471,158 expenses

Amortization of intangible assets and other (20,175 )

Adjusted operating expenses 450,983



GAAP operating income $ 18,502

Restructuring, integration and other 26,420 expenses

Amortization of intangible assets and other 20,175

Adjusted operating income 65,097



GAAP loss before income taxes $ (23,297 )

Restructuring, integration and other 26,420 expenses

Amortization of intangible assets and other 20,175

Other expenses - equity investment 15,223 impairments

Adjusted income before income taxes 38,521



GAAP income tax benefit $ (4,408 )

Restructuring, integration and other 4,601 expenses

Amortization of intangible assets and other 5,029

Other expenses - equity investment 26 impairments

Income tax expense items, net (2,710 )

Adjusted income tax expense 2,538



GAAP loss $ (18,889 )

Restructuring, integration and other 21,819 expenses (net of tax)

Amortization of intangible assets and other 15,146 (net of tax)

Other expenses - equity investment 15,197 impairments (net of tax)

Income tax expense items, net 2,710

Adjusted income 35,983



GAAP diluted loss per share $ (0.19 )

Restructuring, integration and other 0.22 expenses (net of tax)

Amortization of intangible assets and other 0.15 (net of tax)

Other expenses - equity investment 0.15 impairments (net of tax)

Income tax expense items, net 0.03

Adjusted diluted EPS 0.36

^* May not foot due to rounding.

Quarters Ended

Fiscal Year June 27, March 28, December September 29, 29,

2020* 2020* 2020* 2019* 2019*

($ in thousands, except per share amounts)

GAAP selling,general andadministrative $ 1,842,122 $ 451,099 $ 469,646 $ 464,873 $ 456,503 expenses -continuingoperations

Amortizationof intangibleassets and (81,555 ) (18,952 ) (21,071 ) (21,454 ) (20,078 )other -continuingoperations

Adjustedoperatingexpenses - 1,760,567 432,147 448,576 443,419 436,426 continuingoperations



GAAP operating(loss) income $ (4,628 ) $ 1,920 $ (115,760 ) $ 46,475 $ 62,738 - continuingoperations

Restructuring,integrationand other 81,870 23,796 19,211 14,265 24,598 expenses -continuingoperations

Goodwill andintangibleassetimpairment 144,092 (1,744 ) 145,836 - - expenses(benefits) -continuingoperations

Amortizationof intangibleassets and 81,555 18,952 21,071 21,454 20,078 other -continuingoperations

Adjustedoperatingincome - 302,889 42,924 70,358 82,194 107,414 continuingoperations



GAAP (loss)income beforeincome taxes- $ (128,107 ) $ (16,144 ) $ (158,086 ) $ 12,086 $ 34,038 continuingoperations

Restructuring,integrationand other 81,870 23,796 19,211 14,265 24,598 expenses -continuingoperations

Goodwill andintangibleassetimpairment 144,092 (1,744 ) 145,836 - - expenses(benefits) -continuingoperations

Amortizationof intangibleassets and 81,555 18,952 21,071 21,454 20,078 other -continuingoperations

Other expensesand early debtredemption - 21,582 2,054 15,526 4,002 - continuingoperations

Adjustedincome beforeincome taxes - 200,992 26,914 43,558 51,807 78,713 continuingoperations



GAAP incometax expense(benefit) - $ (98,574 ) $ (68,304 ) $ (29,425 ) $ 6,870 $ (7,714 )continuingoperations

Restructuring,integrationand other 18,648 4,659 4,372 3,377 6,240 expenses -continuingoperations

Goodwill andintangibleassetimpairment 6,433 207 6,226 - - expenses -continuingoperations

Amortizationof intangibleassets and 16,119 3,613 4,307 3,964 4,235 other -continuingoperations

Other expensesand early debtredemption - 6,238 506 4,992 740 - continuingoperations

Income taxbenefit(expense) 47,655 22,996 15,119 (4,071 ) 13,611 items, net -continuingoperations

Adjustedincome tax(benefit) (3,481 ) (36,323 ) 5,591 10,880 16,372 expense -continuingoperations



GAAP (loss)income - $ (29,533 ) $ 52,160 $ (128,661 ) $ 5,216 $ 41,752 continuingoperations

Restructuring,integrationand otherexpenses (net 63,222 19,137 14,839 10,888 18,358 of tax) -continuingoperations

Goodwill andintangibleassetimpairmentexpenses 137,659 (1,951 ) 139,610 - - (benefits)(net of tax) -continuingoperations

Amortizationof intangibleassets andother (net of 65,436 15,339 16,764 17,490 15,843 tax) -continuingoperations

Other expensesand early debtredemption 15,344 1,548 10,534 3,262 - (net of tax) -continuingoperations

Income tax(benefit)expense items, (47,655 ) (22,996 ) (15,119 ) 4,071 (13,611 )net -continuingoperations

Adjustedincome - 204,473 63,237 37,967 40,927 62,341 continuingoperations



GAAP diluted(loss)earnings per $ (0.29 ) $ 0.53 $ (1.29 ) $ 0.05 $ 0.40 share -continuingoperations

Restructuring,integrationand otherexpenses (net 0.63 0.19 0.15 0.11 0.18 of tax) -continuingoperations

Goodwill andintangibleassetimpairmentexpenses 1.37 (0.02 ) 1.39 - - (benefits)(net of tax) -continuingoperations

Amortizationof intangibleassets andother (net of 0.65 0.15 0.17 0.17 0.15 tax) -continuingoperations

Other expensesand early debtredemption 0.15 0.02 0.11 0.03 - (net of tax) -continuingoperations

Income tax(benefit)expense items, (0.47 ) (0.23 ) (0.15 ) 0.04 (0.13 )net -continuingoperations

Adjusteddiluted EPS - 2.04 0.64 0.38 0.40 0.60 continuingoperations

^* May not foot/cross foot due to rounding and differences in average dilutedshares between quarterly periods compared to the fiscal year to date.

Sales of TI Products

The termination of the Company's electronic components distribution agreement with Texas Instruments ("TI") will be completed in the second quarter of fiscal 2021. Sales of TI products by quarter are outlined in the following table:



First Fourth Third Second First Quarter Quarter Quarter Quarter Quarter

October 3, June 27, March 28, December September 28, 28,

2020 2020 2020 2019 2019

(in millions)

Sales of TI $ 241.0 $ 322.5 $ 400.6 $ 399.2 $ 443.4Products

Organic Sales

Organic sales is defined as sales adjusted for the impact of significant acquisitions, divestitures and other items by adjusting Avnet's prior and current (if necessary) periods to include the sales of acquired businesses and exclude the sales of divested businesses as if the acquisitions and divestitures had occurred at the beginning of the earliest period presented. Additionally, fiscal 2021 sales are adjusted for the estimated impact of the extra week of sales in the first quarter of fiscal 2021 due to the 14-week fiscal first quarter and the 53-week fiscal year. Organic sales in constant currency is defined as organic sales (as defined above) excluding the impact of changes in foreign currency exchange rates.

As a result of declining sales due to the termination of the TI distribution agreement discussed further above, organic sales growth rates have also been adjusted to exclude sales of TI products.

The following table presents the reconciliation of reported sales to organic sales for the first quarter of fiscal 2021.

Estimated Organic

Sales Extra Organic Sales

As Reported Week in Sales TI Sales Adj for TI

Q1-Fiscal Q1-Fiscal Q1-Fiscal Q1-Fiscal Q1-Fiscal

2021 2021 ^(1) 2021 2021 ^(2) 2021 ^(2)

(in millions)

Avnet $ 4,723.1 $ 306.0 $ 4,417.1 $ 241.0 $ 4,176.1

Avnet by region

Americas $ 1,205.7 $ 77.0 $ 1,128.7 $ 68.5 $ 1,060.2

EMEA 1,480.7 97.0 1,383.7 102.9 1,280.8

Asia 2,036.7 132.0 1,904.7 69.6 1,835.1

Avnet by segment

EC $ 4,382.2 $ 284.0 $ 4,098.2 $ 241.0 $ 3,857.2

PF 340.9 22.0 318.9 - 318.9

^(1) The impact of the additional week of sales in the first quarter of fiscal2021 is estimated.

^(2) Sales adjusted for the impact of the termination of the TI distributioncontract.

The following table presents reported and organic sales growth rates for the first quarter of fiscal 2021 compared to fiscal 2020.

Organic

Sales Organic Sales

As Sales Adj for Reported TI

Sales Sales Year-Year Organic Organic Year-Year Year-Year % % %

As As Change in Sales Sales Change in Change in Reported Reported

Q1-Fiscal Year-Year Constant Q1-Fiscal Year-Year Constant Constant

2021 % Change Currency 2021 % Change Currency Currency ^(1)

(Dollars in millions)

Avnet $ 4,723.1 2.0 % 0.6 % $ 4,176.1 (4.6 )% (6.0 ) (1.8 ) % %

Avnet by region

Americas $ 1,205.7 (0.8 )% (0.8 )% $ 1,060.2 (7.2 )% (7.2 ) (4.9 ) % %

EMEA 1,480.7 0.7 (3.6 ) 1,280.8 (5.9 ) (10.2 ) (7.7 )

Asia 2,036.7 4.8 4.6 1,835.1 (2.0 ) (2.2 ) 4.6

Avnet by segment

EC $ 4,382.2 2.1 % 0.7 % $ 3,857.2 (4.6 )% (5.9 ) (1.3 ) % %

PF 340.9 1.5 (0.5 ) 318.9 (5.0 ) (7.1 ) (7.1 )

^(1) Sales growth rates excluding the impact of the termination of the TIdistribution agreement.

Historical Segment Financial Information

Fiscal 2021

First Quarter

October 3, 2020*

(in millions)

Sales:

Electronic Components $ 4,382.2

Farnell 340.9

Avnet sales $ 4,723.1



Operating income:

Electronic Components $ 84.4

Farnell 12.0

96.4

Corporate expenses (31.3 )

Restructuring, integration and other expenses (26.4 )

Amortization of acquired intangible assets and other (20.2 )

Avnet operating income $ 18.5



Sales by geographic area:

Americas $ 1,205.7

EMEA 1,480.7

Asia 2,036.7

Avnet sales $ 4,723.1

Fiscal Year 2020

Quarters Ended

Fourth Quarter

Third Quarter

Second Quarter

First Quarter

Fiscal Year

June 27,

March 28,

December 28,

September 28,

2020*

2020*

2020*

2019

2019

(in millions)

Sales:

Electronic Components

$

16,340.1

$

3,867.6

$

3,974.7

$

4,203.6

$

4,294.2

Farnell

1,294.2

292.1

335.1

331.2

335.8

Avnet

$

17,634.3

$

4,159.7

$

4,309.8

$

4,534.8

$

4,630.0

Operating income (loss):

Electronic Components

$

349.1

$

58.9

$

84.8

$

93.1

$

112.3

Farnell

75.5

10.4

23.4

20.0

21.8

424.6

69.3

108.2

113.1

134.1

Corporate expenses

(121.6

)

(26.3

)

(37.8

)

(30.9

)

(26.7

)

Restructuring, integration and other expenses

(81.9

)

(23.8

)

(19.2

)

(14.3

)

(24.6

)

Goodwill and intangible asset impairment expenses

(144.1

)

1.7

(145.8

)

-

-

Amortization of acquired intangible assets and other

(81.6

)

(19.0

)

(21.1

)

(21.4

)

(20.1

)

Avnet operating (loss) income

$

(4.6

)

$

1.9

$

(115.8

)

$

46.5

$

62.7

Sales by geographic area:

Americas

$

4,755.3

$

1,149.3

$

1,203.6

$

1,186.6

$

1,215.8

EMEA

5,753.4

1,344.2

1,512.5

1,425.8

1,470.9

Asia

7,125.6

1,666.2

1,593.7

1,922.4

1,943.3

Avnet

$

17,634.3

$

4,159.7

$

4,309.8

$

4,534.8

$

4,630.0

Fiscal Year 2020

Quarters Ended

Fourth Third Second First Quarter Quarter Quarter Quarter

Fiscal Year June 27, March 28, December September 28, 28,

2020* 2020* 2020* 2019 2019

(in millions)

Sales:

Electronic $ 16,340.1 $ 3,867.6 $ 3,974.7 $ 4,203.6 $ 4,294.2 Components

Farnell 1,294.2 292.1 335.1 331.2 335.8

Avnet $ 17,634.3 $ 4,159.7 $ 4,309.8 $ 4,534.8 $ 4,630.0



Operating income (loss):

Electronic $ 349.1 $ 58.9 $ 84.8 $ 93.1 $ 112.3 Components

Farnell 75.5 10.4 23.4 20.0 21.8

424.6 69.3 108.2 113.1 134.1

Corporate (121.6 ) (26.3 ) (37.8 ) (30.9 ) (26.7 )expenses

Restructuring,integration (81.9 ) (23.8 ) (19.2 ) (14.3 ) (24.6 )and otherexpenses

Goodwill andintangibleasset (144.1 ) 1.7 (145.8 ) - - impairmentexpenses

Amortizationof acquiredintangible (81.6 ) (19.0 ) (21.1 ) (21.4 ) (20.1 )assets andother

Avnetoperating $ (4.6 ) $ 1.9 $ (115.8 ) $ 46.5 $ 62.7 (loss) income



Sales bygeographic area:

Americas $ 4,755.3 $ 1,149.3 $ 1,203.6 $ 1,186.6 $ 1,215.8

EMEA 5,753.4 1,344.2 1,512.5 1,425.8 1,470.9

Asia 7,125.6 1,666.2 1,593.7 1,922.4 1,943.3

Avnet $ 17,634.3 $ 4,159.7 $ 4,309.8 $ 4,534.8 $ 4,630.0

^* May not foot/cross foot due to rounding

Guidance Reconciliation

The following table presents the reconciliation of non-GAAP adjusted diluted earnings per share guidance to the expected GAAP diluted earnings per share guidance for the second quarter of fiscal 2021.



Low End of High End of

Guidance Guidance Range Range



Adjusted diluted earnings per share guidance $ 0.33 $ 0.43

Restructuring, integration and other expense (0.16 ) (0.08 ) (net of tax)

Amortization of intangibles and other (net of (0.10 ) (0.07 ) tax)

Income tax expense adjustments (0.05 ) 0.05

GAAP diluted earnings per share guidance $ 0.02 $ 0.33

View source version on businesswire.com: https://www.businesswire.com/news/home/20201028005980/en/

CONTACT: Investor Relations Contacts Joe Burke, 480-643-7431 Joseph.Burke@avnet.com

CONTACT: Media Relations Contact Jeanne Forbis, 480-643-7499 jeanne.forbis@avnet.com