1. First Quarter 2008
Earnings Call
April 23, 2008

2. WELCOME
Sabrina Weaver
Director, Investor
Relations

3. SAFE HARBOR STATEMENT
Some of the comments to be made on this morning’s call may include forward-looking statements,
including statements addressing future financial results. These statements are subject to a
number of risks and uncertainties that could cause actual results or facts to differ materially from
such statements for a variety of reasons including, but not limited to: industry conditions, the
company’s implementation of its new global financial system and the company’s planned
implementation of its new enterprise resource planning system, changes in product supply, pricing
and customer demand, competition, other vagaries in the global components and global ECS
markets, changes in relationships with key suppliers, increased profit margin pressure, the effects
of additional actions taken to become more efficient or lower costs, the company’s ability to
generate additional cash flow and the other risks described from time to time in the company’s
reports to the Securities and Exchange Commission (including the company’s Annual Report on
Form 10-K and Quarterly Reports on Form 10-Q). Forward-looking statements are those
statements, which are not statements of historical fact. These forward-looking statements can be
identified by forward-looking words such as quot;expects,quot; quot;anticipates,quot; quot;intends,quot; quot;plans,quot; quot;may,quot;
quot;will,quot; quot;believes,quot; quot;seeks,quot; quot;estimates,quot; and similar expressions. 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.
First Quarter Earnings
April 23, 2008

4. BUSINESS
OVERVIEW
Bill Mitchell
Chairman & CEO

5. OVERVIEW
Challenging quarter…
Record level first-quarter sales and WC/sales, positive cash flow generation
Increasingly challenging market conditions at quarter end
Global Enterprise Computing Solutions
Strong growth in storage, software and services offset by weakness in servers
Took actions to adjust cost structure, yet we continue to focus on investing for
the long-term
+ Launch of midmarket initiative, LOGIX acquisition (closing pending)
+ Successful implementation of ERP in North American Sun business
Global Components
Executed well in cautious marketplace
North America stable, double-digit growth in Asia Pac, Europe soft
Book-to-bill above 1 globally
+ North America and Asia Pac above 1.05
Strong Y/Y increase in design registrations in North America
Achieva acquisition further strengthens Asia Pac (closing pending)
First Quarter Earnings
April 23, 2008

6. IN SUMMARY…
Global scale and financial strength allow us to take advantage of
opportunities in the market
Continue to invest in the long-term future of Arrow
Taken steps to be more efficient in all areas of our business
Strategic priorities are clear
Continue to pursue transformational opportunities in ECS
Leverage global scale in components
Install world class systems and processes
Pursue growth opportunities across products, markets and geographies
First Quarter Earnings
April 23, 2008

7. FINANCIAL
OVERVIEW
Paul Reilly
Senior Vice President
& CFO

8. CONSOLIDATED SALES
($ in millions)
Sales $4.0Bn
$4,028 +15% Y/Y, -9% Q/Q
$3,498
+5%Y/Y Pro forma for
$3,192
KeyLink*
$2,727
Q1-05 Q1-06 Q1-07 Q1-08
*Includes KeyLink Systems Group sales in Q1-07 and excludes procurement agreement sales in Q1-08.
First Quarter Earnings
April 23, 2008

9. GLOBAL ENTERPRISE COMPUTING SOLUTIONS
($ in millions)
Sales $1.1Bn
$1,106 +55% Y/Y, -31% Q/Q
+6%Y/Y Pro forma for
KeyLink*
$712
17th consecutive quarter of
$511
$460
Y/Y growth
Lower than anticipated
volume, margin, and rebates
on servers and a lag in return
on investments in growth
initiatives pressured margins
Q1-05 Q1-06 Q1-07 Q1-08
Increased ROWC 28% Y/Y
*Includes KeyLink Systems Group sales in Q1-07 and excludes procurement agreement sales in Q1-08.
First Quarter Earnings
April 23, 2008

10. GLOBAL COMPONENTS
($ in millions)
Sales $2.9Bn
$2,922
$2,785
$2,681
+5% Y/Y, +4% Q/Q
$2,267
Decreased operating
expense/sales 20 bps Y/Y
Operating margin close to
financial target
Decreased WC/sales 70
bps Y/Y
Q1-05 Q1-06 Q1-07 Q1-08
First Quarter Earnings
April 23, 2008

11. ASIA PAC COMPONENTS
($ in millions)
Sales $653MM
$653
+20% Y/Y, Flat Q/Q
$545
$531
Stronger than normal
seasonality
Increased operating income
$304
almost 47% Y/Y
Improved ROWC 200 bps
Y/Y
Q1-05 Q1-06 Q1-07 Q1-08
First Quarter Earnings
April 23, 2008

12. NORTH AMERICAN COMPONENTS
($ in millions)
Sales $1.2Bn
$1,191
Up slightly Q/Q, flat Y/Y
$1,165 $1,162
Sales in core SMB +2%
Q/Q, +2% Y/Y
Grew core SMB operating
$1,046
income 3-4x sales Q/Q and
Y/Y
Increased ROWC 18% Y/Y
Q1-05 Q1-06 Q1-07 Q1-08
First Quarter Earnings
April 23, 2008

13. EUROPE COMPONENTS
($ in millions)
Sales $1.1Bn
$1,107
$1,075
+11% Q/Q, +3% Y/Y
$959
$916
+8% Q/Q, -9% Y/Y,
excluding FX
Increased operating margin
70 bps Q/Q
Grew earnings 2x the rate of
sales Q/Q
Q1-05 Q1-06 Q1-07 Q1-08
First Quarter Earnings
April 23, 2008

14. P&L HIGHLIGHTS
($ in millions, except per share data, may reflect rounding)
1Q08 Q/Q Y/Y
Change Change
Sales $4,028 -9% +15%
Gross Profit Margin 14.6% +70bps -90bps
Operating Exp*/Sales 10.5% +120bps -50bps
Operating Income* $163.6 -20% +5%
Operating Margin* 4.1% -50bps -40bps
Net Income* $97.9 -19% +7%
Diluted EPS* $0.79 -19% +7%
* $47MM of total expense reductions announced in last 3 quarters *
•Represents GAAP measure adjusted to exclude the impact of restructuring and integration and other items affecting comparability. Includes amortization of
intangible assets of $.02. See “Earnings Reconciliation” for a reconciliation between GAAP and “Adjusted” results.
First Quarter Earnings
April 23, 2008

15. STRONG FINANCIAL POSITION
Cash flow of $40MM in Q1
6th consecutive quarter of positive cash flow generation
Ability to self-fund growth initiatives Competitive advantage
Financial Stability
Strong balance sheet
Access to committed liquidity facilities
Focused management of working capital
Increased ROWC almost 160 bps Y/Y
Decreased WC/sales 280 bps Y/Y
ROIC* significantly exceeded cost of capital for the 17th consecutive
quarter
*ROIC = Annualized, tax effected op. income and equity in earnings of affiliates excluding restructuring and other charges - annualized minority interest /( Avg Debt +
Avg Equity – Avg Cash over $150MM).
First Quarter Earnings
April 23, 2008

16. BUSINESS UNIT
REVIEW
Mike Long
President & COO

17. ENTERPRISE COMPUTING SOLUTIONS
Mixed results in the first quarter…
Double-digit Y/Y increases in storage, software, and services
End-of-quarter weakness in servers
Lower than anticipated volume, margin, and rebates on servers and a lag
on return on investments pressured operating margin
ECS Europe moving forward
LOGIX acquisition to bring scale and senior leadership (closing
pending)
Andy Bryant to spend significant time in Europe
Launched midmarket initiative
Implemented ERP in North American Sun business
Successful transition with no delays in orders/shipment
On budget and on time
First Quarter Earnings
April 23, 2008

18. GLOBAL COMPONENTS REGIONAL PERFORMANCE
Sales at the high end of guidance range in a cautious market…
Asia Pacific
Strong Y/Y growth in Taiwan, India, Australia/NZ, and ASEAN region
Continued to outgrow the market
Strategic expansion in Asia Pac
+ Hynetic & Shreyanics in India
+ Achieva in the ASEAN region (closing pending)
North America
Strong sequential increase in book-to-bill
Double-digit Y/Y growth in design registrations
Strong performance in military segment
+ Acquired and integrated ACI Electronics
Europe
Market conditions weakened in Q1
Strong Euro impacting export market
First Quarter Earnings
April 23, 2008

19. GLOBAL COMPONENTS LEADING INDICATORS
Book-to-bill above parity; at 1.03 worldwide for 3rd consecutive Q
NA strengthened, Asia Pac stable, Europe weakened
Lead times stable and within normal range of 8 to 12 weeks
No increase in cancellation rates
Quarterly customer survey in North America
Inventory well positioned heading into Q2
Outlook for purchase requirements softened
First Quarter Earnings
April 23, 2008

20. CLOSING
COMMENTS
Bill Mitchell
Chairman & CEO

21. IN CLOSING…
Mixed performance in cautious market
Components sales at high end of guidance range
ECS performance did not meet expectations
Continue to manage company conservatively and prudently
Maintain flexibility to take advantage of opportunities
Consistently generating cash & balance sheet is in great shape
Committed to investment initiatives to position Arrow for future growth
Focus on efficiency in all areas of business to ensure premium returns to
investors
First Quarter Earnings
April 23, 2008

22. SECOND QUARTER 2008 GUIDANCE
Consolidated Sales $3.85Bn to $4.15Bn
Global Components $2.70Bn to $2.90Bn
Global ECS $1.15Bn to $1.25Bn
Diluted EPS* $0.74 to $0.80
*Excluding Charges, including $.02 to $.03 estimated amortization of intangible assets.
First Quarter Earnings
April 23, 2008

23. QUESTIONS &
ANSWERS

24. EARNINGS RECONCILIATION
$ in thousands, except per share data
Q108 Q407 Q107
Operating income, as Reported $144,143 $193,583 $162,659
Restructuring and integration charges (credit) 6,478 9,955 (6,147)
Preference claim from 2001 12,941 -- --
Operating income, as Adjusted $163,562 $203,538 $156,512
Net income, as Reported $85,871 $113,963 $96,294
Restructuring and integration charges (credit) 4,159 6,598 (4,522)
Preference claim from 2001 7,822 -- --
Net income, as Adjusted $97,852 $120,561 $91,772
Diluted EPS, as Reported $.69 $.92 $.77
Restructuring and integration charges (credit) .03 .05 (.04)
Preference claim from 2001 .06 -- --
Diluted EPS, as Adjusted $.79 $.97 $.74
The sum of the components for net income per share, as Adjusted, may not agree to totals, as presented, due to rounding.
First Quarter Earnings
April 23, 2008

25. EARNINGS RECONCILIATION
References to restructuring and other charges refer to the following incremental charges
taken in the quarters indicated:
Q1-08 Restructuring and Integration Charges: During the first quarter of 2008, the company
recorded a restructuring and integration charge of $6.5 million ($4.2 million net of related taxes or
$.03 per share on both a basic and diluted basis) primarily related to initiatives taken by the
company to improve operating efficiencies. Included in this restructuring and integration charge is a
restructuring charge of $5.3 million related to efficiency initiatives taken by the company during the
first quarter of 2008. These actions are expected to reduce costs by approximately $7.0 million per
annum, with approximately $1.0 million realized in the first quarter of 2008.
Q1-08 Legal Settlement: As previously disclosed, during the first quarter of 2008, the company
recorded a charge, including legal fees, related to a preference claim from 2001 of $12.9 million
($7.8 million net of related taxes or $.06 per share on both a basis and diluted basis).
Q4-07 Restructuring and Integration Charges: During the fourth quarter of 2007, the company
recorded a restructuring and integration charge of $10.0 million ($6.6 million net of related taxes or
$.05 per share on both a basic and diluted basis) primarily related to initiatives taken by the
company to improve operating efficiencies.
Q1-07 Restructuring and integration Charges: During the first quarter of 2007, the company
recorded a restructuring and integration credit of $6.1 million ($4.5 million net of related taxes or
$.04 per share on both a basic and diluted basis), primarily related to the sale of the company's
Harlow, England facility and the acquisition of KeyLink.
First Quarter Earnings
April 23, 2008

26. First Quarter 2008
Earnings Call
April 23, 2008