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Baird 2017 Global Consumer, Technology & Services Conference Bob Dutkowsky CEO June 8, 2017

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Page 1: Baird 2017 Global Consumer, Technology & Services Conference€¦ · Baird 2017 Global Consumer, Technology & Services Conference Bob Dutkowsky CEO June 8, 2017 . This document includes

Baird 2017 Global Consumer,

Technology & Services Conference

Bob Dutkowsky CEO

June 8, 2017

Page 2: Baird 2017 Global Consumer, Technology & Services Conference€¦ · Baird 2017 Global Consumer, Technology & Services Conference Bob Dutkowsky CEO June 8, 2017 . This document includes

This document includes financial results prepared in accordance with generally accepted accounting principles (“GAAP”). In addition to GAAP results, Tech Data

management believes that the presentation of non-GAAP financial measures is useful to investors because it provides investors with a more complete

understanding of our operational results and a meaningful comparison of our performance between periods. The non-GAAP results should only be used in

conjunction with results reported in accordance with GAAP and are not intended to be a substitute for results reported in accordance with GAAP. Non-GAAP

financial measures presented in this presentation or other presentations, press releases and similar documents issued by Tech Data, include but are not limited to

sales, income or expense items as adjusted for the impact of changes in foreign currencies (referred to as “constant currency”) , sales adjusted for the impact of

the exit of certain country operations, non-GAAP selling, general and administrative expenses (“SG&A”), non-GAAP operating income, non-GAAP operating

margin, non-GAAP net income, non-GAAP earnings per diluted share and Return on Invested Capital. These non-GAAP financial measures do not have any

standardized meaning and are therefore unlikely to be comparable to similar measures presented by comparable companies. Management may also use these

non-GAAP financial measures to establish operational goals and, in some cases, for measuring performance for compensation purposes. This presentation

provides a detailed reconciliation between results reported in accordance with GAAP and non-GAAP financial measures.

Forward-Looking Statements Safe Harbor

Certain statements made in this document are “Forward-Looking Statements” as described in the Private Securities Litigation Reform Act of 1995. These statements

are subject to risks and uncertainties further described in Tech Data Corporation’s (the “Company”) Annual Report on Form 10-K filed March 30, 2017, a copy of

which can be obtained from the Company’s Investor Relations website at www.techdata.com/investor. A number of important factors, some of which are beyond the

Company’s control, could cause actual events and results to differ materially from those contained in or implied by the forward-looking statements. Forward-looking

statements reflect management's analysis as of the filing date of this presentation. The Company does not undertake to update or revise these statements to reflect

subsequent developments.

Non-GAAP Financial Information

Page 3: Baird 2017 Global Consumer, Technology & Services Conference€¦ · Baird 2017 Global Consumer, Technology & Services Conference Bob Dutkowsky CEO June 8, 2017 . This document includes

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Tech Data at a Glance

One of the world’s largest distributors of technology solutions

– FY’17 sales: $26.2 billion; 60% Europe; 40% Americas

– #1 overall market position in Europe

• #1 Broadline Distributor • #1 Value Distributor • #1 Mobility Distributor

– A leading market position in North America

An indispensable link in the IT supply chain

– An efficient route to market for 600+ leading technology vendors

– Hundreds of thousands of products sold to 115,000+ value added resellers (VARs),

direct marketers, retailers

A premier global IT distributor with unmatched capabilities and

the most diverse end-to-end solutions. – Broadline, Data Center, Software & Cloud, Mobility, Consumer Electronics

Track record of strong financial performance Solid EPS growth, strong cash flow generation, and ROIC>WACC

Page 4: Baird 2017 Global Consumer, Technology & Services Conference€¦ · Baird 2017 Global Consumer, Technology & Services Conference Bob Dutkowsky CEO June 8, 2017 . This document includes

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ONE-STOP SHOPPING FOR OUR CUSTOMERS

AN EFFICIENT ROUTE TO MARKET FOR OUR VENDORS

Variable-Cost

Route to Market

Access to

Fragmented Mkt

World Class

Logistics

Integrated

Supply Chain

Cloud Aggregation

Product

Availability

Multi-vendor

solutions

Technical

Support

Financing /

Inventory Mgmt.

Marketing Support

Indispensable Link in the IT Ecosystem

End-User customers

Resellers Direct Marketers

Retailers

Page 5: Baird 2017 Global Consumer, Technology & Services Conference€¦ · Baird 2017 Global Consumer, Technology & Services Conference Bob Dutkowsky CEO June 8, 2017 . This document includes

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In Fiscal 16, we achieved all our stated annual financial objectives:

Gained share in select markets

Grew earnings in local currency

Generated positive cash flow

Earned ROIC above WACC

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29% in US$

Includes $1.6 billion for two months of TS sales

5% in CC(1), excl. TS

TS pro-forma sales declined by mid-single digits vs.

comparable two-month period one year ago

114% in US$

Growth rate primarily reflects the addition of

the higher-margin TS business

78% in US$

Growth rate primarily reflects the addition

of the higher-margin TS business

Sales

Non-GAAP

Operating Income(2) Non-GAAP EPS(2)

Worldwide Financial Highlights Q1 FY’18 ended April 30, 2017

Operating cash flow $224 million

TTM ROIC 13% vs. WACC 8%(3)

(1) Constant currency is abbreviated as CC; (2) GAAP to non-GAAP reconciliation available at www.techdata.com/investor (3) Source: Bloomberg, May 26, 2017

$7.7 billion $123.2 million $1.87

Page 6: Baird 2017 Global Consumer, Technology & Services Conference€¦ · Baird 2017 Global Consumer, Technology & Services Conference Bob Dutkowsky CEO June 8, 2017 . This document includes

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Broadline FY’06

~70% 45%

Over the Last Decade, Disruptive Forces Have Impacted The Channel

Industry Standardization

Prosumer

“Always On, Always Connected”

BYOD Mobile

Tech Data has a Strong History of Adapting to an Evolving IT Landscape

Desktops, Notebooks, Printers

& Supplies, Components

Notebooks, Tablets, Desktops, Printers &

Supplies, Components

Broadline LTM Q1 FY’18

(1) Company estimates for the 12-months ended April 30, 2017.

(1)

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Page 7: Baird 2017 Global Consumer, Technology & Services Conference€¦ · Baird 2017 Global Consumer, Technology & Services Conference Bob Dutkowsky CEO June 8, 2017 . This document includes

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Page 8: Baird 2017 Global Consumer, Technology & Services Conference€¦ · Baird 2017 Global Consumer, Technology & Services Conference Bob Dutkowsky CEO June 8, 2017 . This document includes

The combination of Tech Data and Technology Solutions creates the

premier global IT distributor with the most complete end-to-end solutions…

…from the data center to the living room

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Page 9: Baird 2017 Global Consumer, Technology & Services Conference€¦ · Baird 2017 Global Consumer, Technology & Services Conference Bob Dutkowsky CEO June 8, 2017 . This document includes

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$0

$1,000

$2,000

$3,000

$4,000

$5,000

$6,000

2017 20202nd Platform 3rd Platform

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____________________ Source: Gartner and IDC. (1) IDC. Black Book, December 2016 (2) IDC, Worldwide Converged Systems Forecast, 2016-2019: Special Report, February 2016 (3) IDC, Worldwide and Regional Public IT Cloud Services Forecast, 2016-2020, December 2016 (4) Gartner, Data Book, 1Q17 Update, March 2017 (5) Gartner, Forecast: Information Security, Worldwide, 2014-2020, 4Q16 Update, January 2017 (6) IDC, Worldwide Business Analytics Technology and Services Forecast, 2016-2020. December 2016

CONVERGED &

HYPER-CONVERGED

INFRASTRUCTURE(2)

CLOUD

SERVICES(3)

MOBILITY(4) INFORMATION

SECURITY(5)

DATA

ANALYTICS(6)

3RD PLATFORM TECHNOLOGIES

CAGR

+11%

CAGR

+18%

CAGR

+4%

CAGR

+8%

CAGR

+11%

CAGR

-6%

CAGR

+12%

(1) (1) ($B)

Third Platform Technologies Driving IT Spending Growth

Page 10: Baird 2017 Global Consumer, Technology & Services Conference€¦ · Baird 2017 Global Consumer, Technology & Services Conference Bob Dutkowsky CEO June 8, 2017 . This document includes

Tech Data Acquires Avnet Technology Solutions for

~$2.7 Billion February 27, 2017

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Page 11: Baird 2017 Global Consumer, Technology & Services Conference€¦ · Baird 2017 Global Consumer, Technology & Services Conference Bob Dutkowsky CEO June 8, 2017 . This document includes

DATA CENTER HW/SW BROADLINE HW/SW&CE MOBILITY

Tech Data

TECH DATA REVENUE MIX (%)1 REVENUE MIX WITH TECHNOLOGY SOLUTIONS (%)2

Deepens Value-Added Capabilities and Balances Solutions Portfolio

Tech Data

+

TS

Page 12: Baird 2017 Global Consumer, Technology & Services Conference€¦ · Baird 2017 Global Consumer, Technology & Services Conference Bob Dutkowsky CEO June 8, 2017 . This document includes

EXTENDS GEOGRAPHIC REACH

40% 45%

60% 52%

0% 3%

Worldwide Sales Mix Q1 FY’18 ended April 30, 2017

(1) First figure represents Tech Data geographic revenue mix for the three months ended April 30, 2016; second figure represents Tech Data geographic revenue mix for the three months ended April 30, 2017.

(1)

(1)

(1)

Page 13: Baird 2017 Global Consumer, Technology & Services Conference€¦ · Baird 2017 Global Consumer, Technology & Services Conference Bob Dutkowsky CEO June 8, 2017 . This document includes

Tech Data + Technology Solutions: A Winning Combination

VARs

DMs /

Retailers

Service

Providers

System

Integrators

OT Solution

Providers

ISVs

14,000+ Skilled Employees

Strong Management Team with Similar Values and Cultures

Common Worldwide IT Platform

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Page 14: Baird 2017 Global Consumer, Technology & Services Conference€¦ · Baird 2017 Global Consumer, Technology & Services Conference Bob Dutkowsky CEO June 8, 2017 . This document includes

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Creates a Premier Global IT Distributor: From the Data Center to the Living Room

Significantly broadens value-added distribution business

Increases ability to capitalize on key next generation technologies

Expands go-to-market capabilities by adding complementary skills, vendor

relationships and new customers

Expect annual cost savings of approximately $50 million in the first 12

months after close, and another $50 million by the end of year two

Expected to be significantly accretive to non-GAAP EPS in the first year

Establishes presence in Asia-Pacific while enhancing customer and product

portfolios in the Americas and Europe

Committed to maintaining investment grade ratings and reaching target

leverage ratio of ~2.5x total debt-to-adjusted EBITDA within 16 to 22 months

Page 15: Baird 2017 Global Consumer, Technology & Services Conference€¦ · Baird 2017 Global Consumer, Technology & Services Conference Bob Dutkowsky CEO June 8, 2017 . This document includes

FROM THE

DATA CENTER TO THE

LIVING ROOM

THE GLOBAL IT

DISTRIBUTOR OF THE

FUTURE

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