investor day 2017€¦ · investor day 2017 / october 10, 2017. 22 tech data investor day 2017 8:30...
TRANSCRIPT
Investor Day 2017 / OCTOBER 10, 2017
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Tech Data Investor Day 2017
8:30 AMArleen QuiñonesIntroduction
8:35 AMVideoThe New Tech Data
8:40 amBob DutkowskyTech Data: The IT Distributor of the Future
9:00 AMRich HumeLeveraging Our Past to Build Tech Data’s Future
9:30 AMPatrick ZammitThe Competitive Advantage of Tech Data’s End-to-End Portfolio
9:50 AMJoe QuagliaTech Data: An Indispensable Link in the Cloud Ecosystem
10:10 AMVideo A Few Words from our Customers and Vendors
10:20 AMSession 1 Q&A Bob, Rich, Patrick, Joe
10:40 AM Break
10:55 AMBeth SimonettiThe Power of Tech Data’s People and Culture
11:10 AMJohn TonnisonTransformative Technology as a Differentiator for Tech Data
11:25 AMChuck DannewitzTech Data: Positioned to Drive Shareholder Value
11:50 AMSession 2 Q&AAll presenters
12:20 PMBob DutkowskyClosing remarks
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Forward-Looking StatementsCertain statements in this communication may contain “forward-looking statements” within the meaning of the Private Securities Litigation Reform Act of 1995. These statements, including statements regarding Tech Data’s plans, objectives, expectations and intentions, Tech Data’s financial results and estimates and/or business prospects, involve a number of risks and uncertainties and actual results could differ materially from those projected. These forward looking statements are based on current expectations, estimates, forecasts, and projections about the operating environment, economies and markets in which Tech Data operates and the beliefs and assumptions of our management. Words such as “expects,” “anticipates,” “targets,” “goals,” “projects,” “intends,” “plans,” “believes,” “seeks,” “estimates,” variations of such words, and similar expressions are intended to identify such forward looking statements. In addition, any statements that refer to Tech Data’s future financial performance, our anticipated growth and trends in our businesses, and other characterizations of future events or circumstances, are forward looking statements. These forward looking statements are only predictions and are subject to risks, uncertainties, and assumptions. Therefore, actual results may differ materially and adversely from those expressed in any forward looking statements.
For additional information with respect to important risks and other factors that could cause actual results to differ materially from those in the forward-looking statements, see Tech Data’s Annual Report on Form 10-K for the year ended January 31, 2017, including Part I, Item 1A, “Risk Factors” therein, Quarterly Reports on Form 10-Q, Current Reports on Form 8-K and other securities filings with the Securities and Exchange Commission (the “SEC”) that are available at the SEC’s website at www.sec.gov and other securities regulators. Readers are cautioned not to place undue reliance upon any such forward-looking statements, which speak only as of the date made. Many of these factors are beyond Tech Data’s control. Unless otherwise required by applicable securities laws, Tech Data disclaims any intention or obligation to update or revise any forward-looking statements, whether as a result of new information, future events or otherwise. Tech Data undertakes no duty to update any forward looking statements contained herein to reflect actual results or changes in Tech Data’s expectations.
Use of Non-GAAP Financial Information 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 and outlook 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”) , 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 Adjusted 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.
Bob DutkowskyChairman and CEO
Tech Data: The IT Distributor of the Future
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Key Investment Highlights
STRONG VALUE
PROPOSITION
SUCCESSFUL
TRACK
RECORD
F INANCIAL
STRENGTH
CLEAR
ROADMAP
an indispensable link in
the IT ecosystem
of navigating industry
shifts
driven by strong
earnings growth, cash
flow generation and
ROIC in excess of
WACC
to capitalize on
industry trends and
deliver customer,
vendor and
shareholder value
PREMIER IT
DISTRIBUTOR
with a products,
solutions and services
portfolio that covers
the continuum of
technology
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Technology Is Growing Exponentially
90% 22 Billion 1 TrillionOF THE WORLD’S DATA
CREATED IN THE LAST 2 YEARS
CONNECTED IOT DEVICES
BY 2018
INCREASE IN PROCESSING
POWER FROM 1956-2015
2.5 2.3 Billion 17%QUINTILLION BYTES OF
DATA CREATED EVERY DAY ACTIVE SOCIAL MEDIA USERS
CLOUD GROWTH
2017 – 2020
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Technology Is Evolving Faster Than Ever Before
1970s
Technology
Individuals
Businesses
Public Policy
1980s 1990s 2000s 2010s Today
Deloitte University Press | dupress.deloitte.com
Tech Data’s Purpose:To continuously satisfy the world’s ever-evolving demand for technology.
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A Strong History of Evolving with Technology
1974 - 2006 2007 - 2017 2018 and Beyond
• IPO in 1986
• Hyper-growth: 44% sales
CAGR from 1986-2006
• Expansion to Europe
• SAP implementation
• 19 acquisitions
• Expanded into Data Center,
Mobility, Consumer, Cloud
• Established SAP as worldwide
platform
• Acquisition of
Technology Solutions
• Lead growth in next-
generation technologies
• Leverage end-to-end value
proposition
• Capitalize on our global
footprint
• Digitally transform Tech Data
T H E S T R AT E G I C T R A N S F O R M AT I O N O F T E C H D ATA
Built to serve the
PC ecosystem
A Decade of Execution
Diversification & InnovationThe IT Distributor
of the Future
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Evolution of the IT Distribution Industry
R O U T E S T O M A R K E T H I S T O R I C A L LY S I LO E D A R O U N D T E C H N O LO G I E S
BroadlineDistribution
PC Ecosystem
Value Distribution
Data Center Ecosystem
SpecialtyDistribution
Mobility, A/V, POS, Software
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Evolution of the IT Distribution Industry
D I S R U P T I V E F O R C E S B L U R T H E L I N E S O F T R A D I T I O N A L T E C H N O LO G I E S
BroadlineDistribution
Value Distribution
SpecialtyDistribution
Consumerization of IT Big Data
Cloud XaaS
Industry Standardization Software-defined
Always-on-Always-Connected Hyper-convergence
PC Ecosystem Data Center Ecosystem Mobility, A/V, POS, Software
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BroadlineDistribution
Evolution of the IT Distribution Industry
D I S R U P T I V E F O R C E S B L U R T H E L I N E S O F T R A D I T I O N A L T E C H N O LO G I E S
ValueDistribution
SpecialtyDistribution
CONSUMER ELECTRONICS
ANALYTICS /IoT
Migrating / Converging
Workloads
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Evolution of the IT Distribution IndustryE N D - T O - E N D E N A B L E S S O L U T I O N S E L L I N G
CONSUMER ELECTRONICS
ANALYTICS /IoT
Business Outcomes
ENDPOINT DEVICES
Endpoint Solutions Advanced Solutions Specialized Solutions
End-to-End Distribution
1414
The IT Distributor of the Future
END-TO-END
PORTFOLIO
SPECIALIZED
SKILLS
WORLD-CLASS
IT SYSTEMS
FINANCIAL
STRENGTH
Breadth and depth of
products, solutions
and services across
the IT continuum
Extensive technical
capabilities / skills
and deep domain
knowledge
Consistent global
execution that
delivers efficiency
and speed to market
Well-capitalized with
ability to invest, generate
strong earnings, cash
flows and ROIC
GLOBAL
FOOTPRINT
Global competence
with local execution
1515
Tech Data’s Vision:To be the vital link in the IT ecosystem that enables channel partners to bring to market the technology solutions the world needs to connect, learn and advance
1616
World-Class Management Team
Bob DutkowskyChairman and CEO
Joe QuagliaPresident, Americas
William ChuPresident, Asia Pacific
Chuck DannewitzChief Financial Officer
Rich HumeChief Operating Officer
Beth SimonettiChief Human Resources Officer
John Tonnison Chief Information Officer
David VetterChief Legal Officer
Patrick ZammitPresident, Europe
1717
Connecting the World with the Power of Technology
TM