CDW Corporation

Webcast Conference Call November 1, 2023

CDW.com | 800.800.4239

Today's Agenda

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Third Quarter 2023 Results

Business Strategy

Outlook

Q&A

2

Forward-Looking Statements

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 capital priorities and other strategic plans 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. 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.

3

Financial Performance

  • Net sales of $5.6 billion
    • Down 9.4% on a reported basis
    • Down 8.0% on an average daily sales ("ADS") basis
    • Down 8.4% on a constant currency basis*
  • Operating income of $478 million, up 2.6%
  • Net income of $316 million, up 5.9%
  • Non-GAAPoperating income* of $556 million, up 1.3%
  • Net income per diluted share of $2.32, up 6.9%
  • Non-GAAPnet income per diluted* share of $2.72, up 4.4%

*Non-GAAP measure. See appendix within this presentation for non-GAAP reconciliations to the most directly comparable GAAP measure.

4

Net Sales By Channel

(Unaudited)

($ in millions)

Three Months Ended September 30,

2023

2022

% Change(1)

Average Daily %

Change(1)

Corporate

$

2,226.5

$

2,577.8

(13.6)%

(12.3)%

Small Business

378.4

491.2

(23.0)

(21.7)

Public

Government

775.7

788.4

(1.6)

-

Education

1,026.7

1,021.1

0.5

2.1

Healthcare

619.7

614.8

0.8

2.4

Total Public

2,422.1

2,424.3

(0.1)

1.5

Other

601.3

722.2

(16.7)

(15.4)

Total Net sales

$

5,628.3

$

6,215.5

(9.4)%

(8.0)%

  1. There were 63 and 64 selling days for the three months ended September 30, 2023 and 2022, respectively. Average Daily Sales is defined as Net sales divided by the number of selling days.

5

Our Three-Part Growth Strategy

Capture share and acquire new customers

Enhance capabilities in high-growth solutions areas

Expand services capabilities

6

Financial Results

(Unaudited)

($ in millions)

Three Months Ended September 30,

2023

2022

% Change

Net sales

$

5,628.3

$

6,215.5

(9.4)%

Average daily net sales(1)

$

89.3

$

97.1

(8.0)%

Gross profit

$

1,227.7

$

1,233.2

(0.4)%

% of Net sales

21.8 %

19.8 %

SG&A

$

749.3

$

766.8

(2.3)%

Operating income

$

478.4

$

466.4

2.6 %

% of Net sales

8.5 %

7.5 %

Non-GAAP SG&A*

$

671.4

$

684.2

(1.9)%

Non-GAAP operating income*

$

556.3

$

549.0

1.3 %

% of Net sales

9.9 %

8.8 %

Interest expense, net

$

57.4

$

62.6

(8.3)%

Other expense, net

$

1.2

$

4.8

**nm

Net income

$

315.5

$

297.8

5.9 %

Non-GAAP net income*

$

369.4

$

357.0

3.5 %

Effective Tax Rate

24.8 %

25.4 %

Non-GAAP Effective Tax Rate

25.8 %

25.9 %

  • Non-GAAPmeasure. See appendix within this presentation for non-GAAP reconciliations to the most directly comparable GAAP measures.
  • Not meaningful

(1) There were 63 and 64 selling days for the three months ended September 30, 2023 and 2022, respectively. Average Daily Sales is defined as Net sales

divided by the number of selling days.

7

Earnings Per Diluted Share

(Unaudited)

($ in millions, except per share amounts)

Three Months Ended September 30,

2023

2022

% Change

US GAAP Net income

$

315.5

$

297.8

5.9 %

Weighted-average common shares outstanding - Diluted

135.9

137.1

Net income per diluted share

$

2.32

$

2.17

6.9 %

Non-GAAP net income*

$

369.4

$

357.0

3.5 %

Weighted-average common shares outstanding - Diluted

135.9

137.1

Non-GAAP net income per diluted share*

$

2.72

$

2.60

4.4 %

  • Non-GAAPmeasure. See appendix within this presentation for non-GAAP reconciliations to the most directly comparable GAAP measures.

8

Debt and Revolver Availability

(Unaduited) ($ in millions)

September 30,

December 31,

September 30,

2023

2022

2022

Cash and cash equivalents

$

440.7

$

315.2

$

384.6

Total debt

5,701.5

5,922.7

6,157.8

Net debt (total debt net of cash and cash equivalents)

5,260.8

5,607.5

5,773.2

Revolver availability

942.4

1,083.6

1,069.8

Cash plus revolver availability

1,383.1

1,398.8

1,454.4

9

Cash Conversion Cycle

(Unaudited)

(Based on a rolling three-month average)

September 30, 2023

December 31, 2022

September 30, 2022

Days of sales outstanding

73

71

68

Days of supply in inventory

14

17

18

Days purchases outstanding

(72)

(67)

(68)

Cash conversion cycle

15

21

18

10

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CDW Corporation published this content on 01 November 2023 and is solely responsible for the information contained therein. Distributed by Public, unedited and unaltered, on 01 November 2023 13:34:50 UTC.