Arrow Electronics : Investor Presentation May 2024

Arrow Electronics

Investor Presentation

May 2024

Safe harbor

This presentation includes "forward-looking" statements, as the term is defined under the federal securities laws, including but not limited to statements regarding: Arrow's future financial performance, including its outlook on financial results for the second quarter of fiscal 2024 such as sales, net income per diluted share, non-GAAP net income per diluted share, average tax rate, average diluted shares outstanding, interest and other expense, impact to sales due to changes in foreign currencies, intangible amortization expense per diluted share, restructuring and integration charges per diluted share, and expectations regarding market demand and shareholder returns. These and other forward-looking statements are subject to numerous assumptions, risks, and uncertainties, which could cause actual results or facts to differ materially from such statements for a variety of reasons, including, but not limited to: unfavorable economic conditions; disruptions or inefficiencies in the supply chain; political instability; impacts of military conflict and sanctions; industry conditions; changes in product supply, pricing and customer demand; competition; other vagaries in the global components and the global enterprise computing solutions ("ECS") markets; deteriorating economic conditions, including economic recession, inflation, tax rates, foreign currency exchange rates, or the availability of capital; the effects of natural or man-made catastrophic events; changes in relationships with key suppliers; increased profit margin pressure; changes in legal and regulatory matters; non-compliance with certain regulations, such as export, antitrust, and anti-corruption laws; foreign tax and other loss contingencies; breaches of security or privacy of business information; outbreaks, epidemics, pandemics, or public health crises; and the company's ability to generate positive cash flow. For a further discussion of these and other factors that could cause the company's future results to differ materially from any forward-looking statements, see the section entitled "Risk Factors" in the company's most recent Annual Report on Form 10-K, as well as in other filings the company makes with the Securities and Exchange Commission. Shareholders and other readers are cautioned not to place undue reliance on these forward-looking statements, which speak only as of the date on which they are made. The company undertakes no obligation to update publicly or revise any of the forward-looking statements.

In addition, this presentation includes certain non-GAAP financial measures. These non-GAAP financial measures, which may be different than similarly titled measures used by other companies, are presented to enhance investors' overall understanding of our financial performance and should not be considered a substitute for, or superior to, the financial information prepared and presented in accordance with GAAP. See "Certain Non-GAAP Financial Information" for more information and a reconciliation between GAAP and non-GAAP measures provided in this presentation.

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Agenda

1. Overview
2. Business detail - global components
3. Business detail - global enterprise computing solutions
4. Financials
5. Additional information and financial tables

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Overview

4

Our noble purpose

We enable technology solutions that make a positive difference

in people's lives; we

guide the power of innovation to make the world better.

Our history

1935

1946

1961

1979

1986

2005

2011

2024

Arrow Radio	Incorporated	Arrow goes	Listed on	50+	Arrow expands	Arrow moves	Arrow tops
opens on	as Arrow	public	NYSE (ARW)	acquisitions	computer	HQ from	category in
Radio Row	Electronics			and	products	New York to	FORTUNE's
in New				expansion	business	Colorado	"World's Most
York City				into Europe	beyond North		Admired
				and Asia	America		Companies" list
							for 11
							consecutive
							years

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Executive leadership & core values

Ethical

We believe in and behave with integrity and respect at all times, when everyone is watching and when no one is watching.

Open-Minded and Courageous

We believe in and behave with well-intended curiosity, welcoming diverse ways of thinking and working, expanding our mind- and behavior sets, when venturing and when persevering.

Results-Oriented and Accountable

We believe in and behave with responsibility and ownership for the quality of our work, when accomplishing intended outcomes and when course correcting.

Innovative

We believe in original thinking and executing new ideas, continuously adapting our mind- and behavior-sets to create increased value.

Customer Centricity

We believe in and behave with a customer-first orientation, earning trust and loyalty, and driving repeat and growing business.

One Arrow

We believe in and behave with the broadest view of our organization, understanding the vital role we each play for the greatest good of all stakeholders.

Sean J. Kerins

President and Chief

Executive Officer

Raj Agrawal	Alan Bird	Carine Jean-Claude	Steve Kerdock
Senior Vice President,	Senior Vice President,	Senior Vice President,	Senior Vice President,
Chief Financial Officer	Chief Transformation	Chief Legal Officer and	Chief Marketing
	Officer	Secretary	Officer

Chuck Kostalnick	Rick Marano	Eric Nowak	Shantnu Sharma
Senior Vice President,	President, Global	President, Global	Senior Vice President,
Chief Logistics and	Components	Enterprise Computing	Chief Strategy and
Procurement Officer		Solutions	Technology Officer

Kim Brown Wilmsen		Gretchen K. Zech
Senior Vice President,	Senior Vice President, Chief
	Chief Information	Governance, Sustainability,
	Officer	and Human Resources
				Officer

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Arrow Electronics at a glance

We enable technology solutions that make a positive difference in people's lives; we guide the power of

innovation to make the world better

Centennial, CO	ARW (NYSE)
HEADQUARTERS	TICKER SYMBOL

53	109
COUNTRIES WITH EMPLOYEES
	FORTUNE 500 RANK
22,000+
EMPLOYEES
>210	$33.1 billion
2023 SALES
WORLDWIDE LOCATIONS
80+	1935
COUNTRIES SERVED	FOUNDED

• Global provider of products, services, and solutions to industrial and commercial users of electronic components and enterprise computing solutions
• The company has two business segments:
• • The global components business distributes electronic components
  • The global enterprise computing solutions ("ECS") business provides information technology solutions
• Global components has operations in the Americas, EMEA and the Asia-Pacific regions; global
  enterprise computing solutions has 2023 Sales

operations in the Americas and

77%

EMEA

23%

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We specialize in managing complexity

85	39
Distribution & Value
Countries	Added Centers

180

Sales Facilities

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Arrow's approach to ESG

Board of Directors

2024 ESG GOALS

Audit Committee

Reviews sustainability

disclosures, including relevant ESG metrics; oversees data privacy and cybersecurity

Corporate Governance

Committee

Oversees policies and practices

relating to ESG matters

Compensation

Committee

Oversees practices affecting

the workforce, including

corporate culture and diversity

and inclusion

• Continue to reduce Scope 1 and 2 emissions in 2024, supporting our

multiyear goal to reduce Scope 1 and 2 emissions by 10% across all

Arrow locations and fleet by the end of 2025

• Set science-based targets (SBTs) in alignment with the Science Based

Targets initiative (SBTi) by 2025 and reinforce with the long-term

aspiration to achieve 100% renewable electricity as may be available

by 2030

• Implement a new leadership development program to prepare high-

potential individual contributors for future leadership opportunities

and incorporate robust inclusion training into HR-sponsored

Senior Vice President

Chief Governance, Sustainability, and Human Resources Officer

Executive Leadership and oversight

ESG Operating Committee

Guides ESG priorities and related performance

ESG Working Groups

Functional experts that facilitate data sharing, implement processes, and monitor

progress toward ESG goal achievement

Environmental	Social	Governance
Working Group	Working Group	Working Group

leadership development programs, supporting our multiyear

aspiration that leadership representation of women leaders globally

and leaders who are of underrepresented race/ethnicity in the U.S.

aligns with our overall employee representation and with the total

available talent market in the communities where we operate around

the world

• Continue ongoing global pay equity analysis and adjust pay where

appropriate to close any pay equity gaps

• Implement mechanisms to continuously collect employee feedback

on effectiveness of compliance resources and perception of ethical

culture

• Deploy a globally centralized, external-facing privacy management

tool to enable more efficient administration of user privacy

preferences.

Reference Arrow's ESG subsitefor more details

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