3. AGENDA
SESSION I
8:30 – 10:00 Welcome Mike Taunton
Strategic Overview Mike Long
Global Components Peter Kong
Global ECS Andy Bryant
Strategy Q&A All
10:00 – 10:15 Coffee Break
SESSION II
10:15 – 11:00 Financial Overview Paul Reilly
Finance Q&A All
Closing Remarks Mike Long
Investor Day 2010
Page 3
4. SAFE HARBOR STATEMENT
This presentation may include forward-looking statements, including statements
addressing future financial results. These 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:
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, and the company’s ability to generate additional
cash flow. 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 "expects," "anticipates," "intends," "plans," "may," "will," "believes," "seeks,"
"estimates," 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.
Investor Day 2010
Page 4
5. STRATEGIC
OVERVIEW
Mike Long
Chairman, President,
and CEO
6. SUCCESSFUL COMPANIES…
…Emerge from the downturn as the post-recession industry leader
Key actions taken by post- A Foundation of Strength
recession leaders
Supply Chain Efficiently managed
Profitable market share growth
Maximize cash flow Working Capital Best-in-class levels
Radical simplification of business
Acquire for strategic gains Expense Reduced costs by
Reductions $225MM annually
Strengthen capital structure
Earnings 11x last downturn
Cash Flow Generated $5.7Bn in
cash since 2001
Balance Sheet Strongest balance
ever, <$300MM in net
debt, net debt/cap
~8%*
*As of December 31, 2009.
Investor Day 2010
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7. GLOBAL COMPONENTS TOTAL AVAILABLE MARKET
Significant opportunity to increase our share of the market
$70
$60
Core Components TAM ($ Bn)
$25 $25
$25 $25 $24 $25
$50 $23 $23 DTAM
$22 $22
$21 $22
$20 $20 ~ 24%
$40
$17
$30
$40 $40 $39 $42 $40 $42
$20 $37 $36 $35 $37 $38
$34 $32 $33
$27
$10
$0
Q3'06
Q4'06
Q1'07
Q2'07
Q3'07
Q4'07
Q1'08
Q2'08
Q3'08
Q4'08
Q1'09
Q2'09
Q3'09
Q4'09
Q1'10
SEMI PEMCO
Source: SIA; core component TAM excluding memory and microprocessors, excluding Japan.
Investor Day 2010
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8. WORLDWIDE IT TOTAL AVAILABLE MARKET
Global ECS well positioned to capitalize on market growth…
Worldwide Market
TAM
Targeting large, growing
($Bn)
markets
Servers $48
SMB market is
forecasted to be a Storage $29
$57Bn market
Software and services Networking $135
have high gross margins
and low working capital Infrastructure software $86
requirements
Services $297
Source: IDC and industry estimates.
Investor Day 2010
Page 8
9. ARROW’S STRATEGIC FRAMEWORK
Shift investment to sales excellence while maximizing our core
infrastructure capability for earnings growth and cash generation
Profitable Focus on high-
growth/vertical markets
Market Share Geographic expansion Revenue
Growth Expand services
n
ne nd
Solution selling
tio
Optimize Gross
ge t a
ra
Demand creation
Profit
sh en
Improved value-added
Margin
ca tm
content
al es
ion inv
dit ift
ad Sh
Operational Efficiency Lean cost structure
Business simplification
Operational excellence Costs
Investor Day 2010
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10. PROFITABLE MARKET SHARE GROWTH
Market share enables Arrow to:
Be a Be a
driving force respected partner
in the industry to suppliers and
customers
Offer comprehensive Have the
value and services to sales force coverage
increase margins we need to increase
customer count
Investor Day 2010
Page 10
11. PROFITABLE MARKET SHARE GROWTH
Aggressively grow the top line
Increase customer penetration
Solution sales outpacing piece part sales
Bring suppliers technology to market
New/Expanded Global Components New/Expanded ECS
Supplier Relationships Supplier Relationships
Investor Day 2010
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12. OPTIMIZE GROSS PROFIT
Translating Arrow’s value proposition into increased profitability
Supplier Customer
Expectations Expectations
Most efficient provider Global footprint and
Clear route to market Arrow’s broad line card
Value-added services
Dedicated to driving
growth Value Drive demand
Technical/engineering $ $ generation
expertise Proposition Proactive engineering
Financial strength support
Financial support
The sweet spot of our value is where Arrow capabilities match
supplier and customer expectations
Investor Day 2010
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13. EXPANDING VALUE-ADDED SERVICES: STRATEGIC INTENT
Accelerate profitable sales Grow sales faster than
growth with existing portfolio core business
Expand our value proposition Grow margins faster than
across the product lifecycle sales
Building solutions in reverse Deliver "Best in Class"
logistics customer service
Build global brand identity & Expand addressable
affinity for Arrow Services market
Become the #1 player in a $225Bn + total addressable market
Investor Day 2010
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14. VALUE-ADDED SERVICES: DRIVING DIFFERENTIATION & PROFITS
We have not yet begun to penetrate the services opportunity
Global Components ECS Services
Services
$75Bn + TAM $150Bn TAM
Less than 1% share Less than 1% share
One of our largest growth opportunities
Investor Day 2010
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15. OUR STRATEGY
Accelerate sales
Sales excellence
Growth in existing and new
nts
ne
G
Gll markets
o
ob
ob
mp
Enhance our value proposition
all
Co
A
A
lue
dd
dd
EC
EC
ERP
Va
e
ed
al
& with increased value-added
S
S
ob
Worldwide
Infrastructure
Gl
High Margin / Low Cost
services
Services
Capitalize on our foundation of
Financial Strength strength
Drive execution with best-in-class
operational efficiency
Investor Day 2010
Page 15
16. OPERATIONAL EFFICIENCY
We have improved efficiencies and reduced costs by more than $225
million during the downturn, resulting in a record low level of
opex/sales
30% 15%
14%
20%
13%
Y/Y % Change
Opex*/Sales
10% 12%
11%
0%
10%
-10% 9%
8%
-20%
7%
-30% 6%
Q1-07
Q2-07
Q3-07
Q4-07
Q1-08
Q2-08
Q3-08
Q4-08
Q1-09
Q2-09
Q3-09
Q4-09
Q1-10
Operating Expense* Sales Opex*/Sales
*Represents GAAP measure adjusted to exclude the impact of restructuring and other items affecting comparability.
Investor Day 2010
Page 16
17. FIRST QUARTER RESULTS
Emerging even stronger from challenging times
Q1 sales and EPS well ahead of expectations
Achieved record level of sales for any Q1
Operating income and ROIC almost Total Sales ($ Bn)
doubled Y/Y
$4,235
ROIC of 12.1% $4,028
Results demonstrate significant operating $3,498 $3,417
leverage
Operating income growth substantially
outpaced sales growth
Impressive financial strength allows us to
continue to invest in the business
Value-added services Q1-07 Q1-08 Q1-09 Q1-10
Vertical markets
Geographic expansion
Investor Day 2010
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19. ARROW GLOBAL COMPONENTS
Our components business provides value-added services for
OEMs and EMS companies
Presence in 46 countries and territories across North
America, Europe, and Asia-Pacific 2009 Revenue
$9.8Bn
Market share leader in North America, leading player
in Europe and Asia
35%
Over 110,000 customers across all end markets and 36%
geographies
29%
A large portion of our customer base uses one or
more value-added service
Ship over 36,000 line items per day and manage over
1 million part numbers Americas
EMEASA
Asia/Pacific
Investor Day 2010
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20. UNMATCHED LINE CARD TOUCHING ALL TECHNOLOGIES
We have a broad technology portfolio with more than 800 suppliers
Connectors 6%
Semi = 70%
Electromechanical 4%
Analog 24% PEMCO = 18%
Passives 9%
Computing/
memory = 12%
Computing/Memory*
12%
ASIC/Application
Specific/Opto 13%
Microcomponents* 12%
Discrete/Logic 21%
*Primarily MCU/MPU and non-DRAM memory.
Investor Day 2010
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21. GLOBAL COMPONENTS STRATEGY
Global WW footprint
Maximize global presence relationships Broad line card
Design support
Lead with solutions Solution orientation
Value-added
Demand Excess
Differentiated Value Proposition creation management
Value-add
Large customer intimacy
Effective go-to-market model Vertical focus for mid size
Small enterprise Arrow Advantage
Business Operational
Most Efficient Provider simplification excellence
Investor Day 2010
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22. VALUE IS REALIZED DIFFERENTLY ACROSS THE WORLD
Americas
Design work for high-
growth markets
Value-added service Europe
is rewarded
Pan-European brand
Supply chain
Country-based
solutions
purchasing Asia
Value-added service Diverse business
is rewarded models
Rapid pace of
change
Fastest growing
market worldwide
Investor Day 2010
Page 22
23. OUR FOCUS IS UNCHANGING
We have never been as strong competitively
Relationships
Sales Excellence
Partner of
Value-Added Services Choice
Superior Execution
Strong Financial Position
Investor Day 2010
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24. GLOBAL COMPONENTS GO-TO-MARKET MODEL
Large Customers – Global EMS and OEM’s, Local Mega’s
Single point of contact at global level for global customers
Enhance customers’ engagement and satisfaction from design to
18%
production
Offer broad line card, supply chain solutions
Core – Medium Customer Focus
77% Regionally managed customers
Optimize market segmentation, new customer growth
Invest in under-penetrated geographies, emerging
technologies and growth segments
Small/Emerging – ArrowAdvantage
5%
Dedicated team, supported via all
COMMUNICATION • CONSUMER • COMPUTING • LIGHTING • AEROSPACE countries
& DEFENCE • MEDICAL • ALTERNATE ENERGY Grow potential emerging customers to
core (medium)
Design Services Broad Line Card Supply Chain Services On-line internet search capability
Investor Day 2010
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25. PROFITABLE MARKET SHARE GROWTH
Expanding into attractive markets aligned with our strategy
Americas EMEA Asia Pacific
Lighting Lighting Lighting
Medical Emerging Markets Consumer
Aerospace & Defense Aerospace & Defense Industrial
Alternative Energy Transportation Communication
Investor Day 2010
Page 25
26. PROFITABLE MARKET SHARE GROWTH
Concentration on high-growth markets – lighting
Current business $175MM
Expected to double in 2010
WW high-brightness LED market is growing $2Bn per year
32% CAGR 2009-2013
$3 of related products for every $1 LED sold
Technology has advanced
New and emerging applications
LED reliability and lifetime advantages
Lumens/watt surpass traditional light sources
Regulatory and green impact
California Title 24, Energy Star
No mercury/lead, incandescent bans
Economics are starting to make sense
Maintenance avoidance
Improved lumens/$ = lower initial fixture cost
Energy savings
Investor Day 2010
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27. PROFITABLE MARKET SHARE GROWTH
Concentration on high-growth markets – alternative energy
Gaining traction due to government standards and tax
benefits as well as rising costs in traditional energy
European standards and carbon trading
U.S. stimulus funding and tax breaks are sustaining
pricing parity
Tightening state standards in NJ, CA, and CO
30 million homes will have meters by end 2011
Emerging market for Home Area Network (HAN)
devices
Higher acceptance of renewable energy demand
It’s where the money is going
VC and private equity invested $3.5Bn in 2009
DOE invested $3.4Bn into Smart Grid projects in
2009
It’s where the jobs are going
“Clean Energy” job growth outpacing other industries
Solar, wind and Smart Grid at the top of list
Investor Day 2010
Page 27
28. GLOBAL COMPONENTS 2010 PRIORITIES
Profitable Optimize Sales Mix
Market High-growth markets
Share
Growth Demand creation
Increase Margins
Optimize
Engagement with suppliers and customers
Gross
Profit Value-added services
Operational Efficiency
Pan European model
Operational
Efficiency Shared service centers
Investor Day 2010
Page 28
29. GLOBAL ECS
Andy Bryant
President, Enterprise
Computing Solutions
30. SNAPSHOT OF ARROW ECS
Global, pure play value-added distributor
2009 Revenue
2009 sales of $4.9 billion (33% of Arrow’s total
$4.9Bn
sales)
Presence in 26 countries across North
America and Europe 28%
72%
Over 2,200 employees
Positioned to provide end-to-end data center
solutions
North America
Loyal and successful partner base
EMEA
Specialized Channel Management services focused on the next
wave of IT growth
Investor Day 2010
Page 30
31. ECS STRATEGY
Pan-regional operating models
Maximize global presence Emerging markets
Professional services
Lead with solutions Solution orientation
Security Networking
Focus on high growth sectors Storage Services
management
Focus on core business
Enterprise and mid-market leader Mid-market initiative
ERP (North America)
Most Efficient Provider Web-based tools
Investor Day 2010
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32. ECS CORE MARKETS
Product Growth Rates Mid Range: 5% Services: 3%
(2009 to 2013): Volume: 2% Software: 5%
Storage: 2% Networking: 4%
Geography Growth Rates: North America: 4% Europe: 3%
Supplier Consolidation among suppliers will continue
2009 ECS Product Mix* High Growth Sectors
Y/Y Growth Q1 2010
Other 2%
Services Proprietary
16% Servers 20%
ISS 7%
Software
33% Storage 22%
Source: IDC; *Based on billings.
Investor Day 2010
Page 32
33. DISCIPLINED APPROACH TO PROFITABLE GROWTH
ECS Worldwide Revenue
Industry-
leading
working capital
metrics
09
-20
2 00 6
A GR
26 %C
Q1
Q2
Q3
Q4
Q1
Q2
Q3
Q4
2006 2009
Investor Day 2010
Page 33
34. OUR VISION
A specialist in infrastructure solutions of leading edge technologies,
delivering best of class channel management services
Channel
Management
Channel
Value-Added
development
Distribution
Market development
Expertise in sales,
& professional
pre-sales, marketing
services
and post-sales
Broad Line support Market: enterprise &
Distribution mid-market
Market: enterprise
Logistic & financial accounts Infrastructure
support solutions
Enterprise products
Market: retail & small
business From Supplier to VAR to End-User, our value
Volume products proposition stems from managing the value chain
(PC’s)
for our partners
Investor Day 2010
Page 34
35. TOTAL IT SPEND WORLDWIDE
Growth in IT spending returns
$1,800 15%
$1,600
10%
$1,400
IT Spend ($Bn)
Y/Y % Change
5%
$1,200
$1,000
0%
$800
-5%
$600
$400 -10%
1999
2000
2001
2002
2003
2004
2005
2006
2007
2008
2009
2010E
2011E
2012E
Source: IDC.
Investor Day 2010
Page 35
36. IT ENTERPRISE LANDSCAPE
Private Cloud
Unified
Storage Data Communication
Virtualization
Center Security
Server
Network
Public Cloud
Convergence and Cloud Drive Demand for New Infrastructure
Investor Day 2010
Page 36
37. ARROW ECS GO-TO-MARKET MODEL
Pure-play enterprise value-added distributor
Arrow ECS
Virtualization & Infrastructure Software
Professional Services
Shared Services
Specialists in enterprise infrastructure solutions of leading edge technologies
Investor Day 2010
Page 37
38. ARROW ECS GO-TO-MARKET MODEL
Optimize the leverage points in the operating model
Arrow ECS
Virtualization & Infrastructure Software
Professional Services
Shared Services
Growth Superior growth rates in storage, networking,
virtualization, and security
Growing 2x faster than market
Above market growth in servers
Investor Day 2010
Page 38
39. ARROW ECS GO-TO-MARKET MODEL
Optimize the leverage points in the operating model
Arrow ECS
Virtualization & Infrastructure Software
Professional Services
Shared Services
Return on Software drives higher returns on capital
Working Capital Enables a solution sale
Investor Day 2010
Page 39
40. ARROW ECS GO-TO-MARKET MODEL
Optimize the leverage points in the operating model
Arrow ECS
Virtualization & Infrastructure Software
Professional Services
Shared Services
Margin Increased mix of services drives higher gross
Enhancement margins
Investor Day 2010
Page 40
41. ARROW ECS GO-TO-MARKET MODEL
Optimize the leverage points in the operating model
Arrow ECS
Virtualization & Infrastructure Software
Professional Services
Shared Services
Productivity Increase operational excellence to drive higher
levels of productivity
Maximize operating leverage
Investor Day 2010
Page 41
42. GLOBAL ECS 2010 PRIORITIES
Profitable Optimize Sales Mix
Market Expand our line card around leading technologies
Share Driver higher levels of services revenue
Growth Invest in high growth market segments
Increase Margins
Optimize
Engagement with suppliers and customers
Gross
Profit Solution selling
Operational Efficiency
Operational Leverage ERP platform
Efficiency Service centers
European integration
Investor Day 2010
Page 42
45. AGENDA
SESSION I
8:30 – 10:00 Welcome Mike Taunton
Strategic Overview Mike Long
Global Components Peter Kong
Global ECS Andy Bryant
Strategy Q&A All
10:00 – 10:15 Coffee Break
SESSION II
10:15 – 11:00 Financial Overview Paul Reilly
Finance Q&A All
Closing Remarks Mike Long
Investor Day 2010
Page 45
46. FINANCIAL
OVERVIEW
Paul Reilly
EVP, Finance &
Operations and CFO
47. DELIVERING FROM A FOUNDATION OF STRENGTH
Revenue ($Bn) Operating Expense*/Sales
$14.7 15.0%
(570)
bps
$7.3
11%
CAGR 9.3%
2002 2009 2002 2009
EBITDA* ($MM) Diluted EPS*
$445 $1.68
$253
8% 41%
CAGR CAGR
$0.15
2002 2009 2002 2009
*Represents GAAP measure adjusted to exclude the impact of restructuring and other items affecting comparability.
Investor Day 2010
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48. DELIVERING FROM A FOUNDATION OF STRENGTH
Available Liquidity ($MM, inc. cash) Total Debt ($MM)
$2,537 $2,093
$1,444
$1,399
2002 2009 2002 2009
Net Debt to Capital Net Debt to EBITDA*
53% 5.5x
8% 0.6x
2002 2009 2002 2009
*Represents GAAP measure adjusted to exclude the impact of restructuring and other items affecting comparability.
Investor Day 2010
Page 48
49. FIRST QUARTER RESULTS
Emerging even stronger from challenging times
Operating income growth substantially outpaced sales growth
Almost doubled Y/Y
Significant operating leverage
Operating income grew 3x and 11x faster than sales Y/Y and Q/Q, respectively
Focused management of working capital
Return on working capital reached record Q1 level
Efficiently manage all levers of working capital
Balance sheet and capital structure remain strong
Conservative debt levels and maturity profile
Net debt to capital near record low level
Net debt to EBITDA less than 1x
Committed liquidity facilities provide flexibility to take advantage of opportunities
that may arise
Investor Day 2010
Page 49
50. EVOLUTION OF OUR BUSINESS
Capitalizing on the opportunities of the markets served
2002 2009
$7B ECS $15B Americas
Europe 23%
Asia 10%
ECS 9%
Americas
28%
Americas
30%
ECS
Americas Europe
24% 20%
Europe
33%
Asia
Global Components 23%
Global ECS
Investor Day 2010
Page 50
51. WE HAVE FUNDAMENTALLY CHANGED THE WAY OUR
COMPANY IS RUN
2002 2009 Variance
Net Sales $7.3Bn $14.7Bn 102%
Opex/Sales 15.0% 9.3% (570) bps
Operating Income* $173MM $378MM 118%
EPS* $0.15 $1.68 1,020%
WC/Sales $.22 $.12 (46%)
ROWC 9.4% 20.2% 1,080 bps
ROIC** 3.5% 7.6% 410 bps
Net Debt $1.4Bn $262MM (81%)
*Represents GAAP measure adjusted to exclude the impact of restructuring and other items affecting comparability. **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 $150MM).
Investor Day 2010
Page 51
52. OPERATING AT GREATER LEVELS OF EFFICIENCY
We should see more operating leverage coming out of this downturn…
($ Millions) 2002 2003 Variance 2009 2010** Variance
Sales $7,270 $8,528 17% $14,684 $17,869 22%
Gross profit $1,260 $1,421 13% $1,751 $2,223 27%
GP % 17.0% 16.7% -30 bps 11.9% 12.4% +50 bps
Operating expenses* $1,087 $1,179 8% $1,373 $1,570 14%
% of sales 15.0% 13.8% -120 bps 9.3% 8.8% -50 bps
Operating Income* $173 $242 40% $378 $653 73%
OI % 2.4% 2.8% +40 bps 2.6% 3.7% +110 bps
EPS* $0.15 $0.74 393% $1.68 $3.23 92%
*Represents GAAP measure adjusted to exclude the impact of restructuring and other items affecting comparability, **Based on First Call consensus.
Investor Day 2010
Page 52
53. CREATING SHAREHOLDER VALUE
ROIC > WACC
Generate positive cash flow throughout the cycle
Manage working capital at “best-in-class” levels
Absolute EPS
EPS growth
Differentiated operating income margin
Investor Day 2010
Page 53
54. FINANCIAL UPDATE
Global Components Actual 2007 Pro Forma 2007 Variance
Americas % of sales 41% 37%
EMEA % of sales 37% 32%
Asia Pac % of sales 22% 31%
Global Components
Net Sales $11,224 $13,017 16%
Operating Margin* 5.4% 5.1% -30 bps
Global ECS
North America % of sales 82% 72% ROWC
Europe % of sales 18% 28% +190 bps
Global ECS
WC/sales
Net Sales $4,761 $5,428 14%
-150 bps
Operating Margin* 4.1% 4.1% Flat
Total Arrow
Net Sales $15,985 $18,445 15%
Operating Income $699 $775 11%
Operating Margin* 4.4% 4.2% -20 bps
EPS – Diluted* $3.29 $3.83 16%
*Excludes special charges; NAC pro forma includes A.E. Petsche, Euro/USD Fx Rate at 1.3800.
Investor Day 2010
Page 54
55. OUR FINANCIAL GOALS ALL
DRIVEN BY
MIX
Previous Long-Term Targets Updated Long-Term Targets
Operating Income* Operating Income*
Global Components 5.7% - 7.0% Global Components 5.3% - 6.6%
Global ECS 4.6% - 5.3% Global ECS 4.3% - 5.0%
Consolidated 4.5% - 5.8% Consolidated 4.1% - 5.4%
ROIC** 12.5% - 15.0% ROIC** 12.5% - 15.0%
*Excludes special charges **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)
Investor Day 2010
Page 55
56. ERP PROGRESS AND FOCUS TO DATE
Estimated Global ERP Expense & Benefits Update
Project cost $350MM
ROI 20% +
Annual
$75MM
benefits
Completion
2011
date
GFS delivered on time and on budget
ECS North America delivered on time and on budget
Successful pilot implementation in Australia/New Zealand (global components)
On track to transition Northern Europe (components) in Q3 2010
Investor Day 2010
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57. ERP PROGRESS AND FOCUS TO DATE
Estimated Global ERP Expense & Benefits Update
Project cost $350MM Project cost ~ $425MM
ROI 20% + ROI ~ 20%
Annual Annual
$75MM $75MM +
benefits benefits
Completion Completion
2011 2012
date date
GFS delivered on time and on budget
ECS North America delivered on time and on budget
Successful pilot implementation in Australia/New Zealand (global components)
On track to transition Northern Europe (components) in Q3 2010
Completion of Global Components transition moved out to 2012
Risk adverse approach to implementations
Change management/preparation
Business has changed since ERP began
Investor Day 2010
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58. CONSISTENT GENERATOR OF EARNINGS
We have generated industry leading EPS in the last five years
$12.39
$11.05 $10.82
$7.52
$6.45 $6.38
$1.63
$0.79
$0.21
ARW
Earnings Per Share*
*Cumulative EPS for the last five years beginning July 1, 2005; Source: company financial statements; Represents GAAP basis (excluding goodwill
impairments) through 1Q10; Companies included: AVT, IM, SNX, TECD, BHE, CLS, FLEX, JBL.
Investor Day 2010
Page 58
59. IN SUMMARY…
Our financial discipline and strategic vision will serve us well
We are well positioned to perform well throughout the economic driven or
secular cycle
Diversified revenue stream
Opportunities for organic growth
More flexible cost structure
Very strong balance sheet with significant liquidity
Consistent cash flow generator
We are continually looking for ways to operate our business more efficiently
We are committed to achieving our financial targets and in turn to increasing
shareholder value
Investor Day 2010
Page 59
61. CLOSING
REMARKS
Mike Long
Chairman, President,
and CEO
62. DELIVERING THE VALUE
Maximize Arrow’s value for customers and suppliers
Understand the
needs
Customers
Metrics Needs Align Arrow’s
Suppliers
capabilities to the
need
Relationships Create a valued
offering
Valued Metrics and
Arrow measurements to
Offerings Capability determine success
Get the full value for the services that we provide
Investor Day 2010
Page 62
63. KEY TAKE-AWAYS
Exited the downturn as an industry leader
Executing on strategic vision for profitable market share growth
Accelerate sales growth
Expand our value proposition
Outgrow the market
Impressive financial strength and flexible capital structure
Significant operating leverage in the model
Strong EPS growth
Generate premium returns for shareholders
Investor Day 2010
Page 63
