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Investor Day 2017 / OCTOBER 10, 2017

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Page 1: Investor Day 2017€¦ · Investor Day 2017 / OCTOBER 10, 2017. 22 Tech Data Investor Day 2017 8:30 AM Arleen Quiñones Introduction 8:35 AM Video The New Tech Data 8:40 am ... President,

Investor Day 2017 / OCTOBER 10, 2017

Page 2: Investor Day 2017€¦ · Investor Day 2017 / OCTOBER 10, 2017. 22 Tech Data Investor Day 2017 8:30 AM Arleen Quiñones Introduction 8:35 AM Video The New Tech Data 8:40 am ... President,

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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

Page 3: Investor Day 2017€¦ · Investor Day 2017 / OCTOBER 10, 2017. 22 Tech Data Investor Day 2017 8:30 AM Arleen Quiñones Introduction 8:35 AM Video The New Tech Data 8:40 am ... President,

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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.

Page 4: Investor Day 2017€¦ · Investor Day 2017 / OCTOBER 10, 2017. 22 Tech Data Investor Day 2017 8:30 AM Arleen Quiñones Introduction 8:35 AM Video The New Tech Data 8:40 am ... President,

Bob DutkowskyChairman and CEO

Tech Data: The IT Distributor of the Future

Page 5: Investor Day 2017€¦ · Investor Day 2017 / OCTOBER 10, 2017. 22 Tech Data Investor Day 2017 8:30 AM Arleen Quiñones Introduction 8:35 AM Video The New Tech Data 8:40 am ... President,

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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

Page 6: Investor Day 2017€¦ · Investor Day 2017 / OCTOBER 10, 2017. 22 Tech Data Investor Day 2017 8:30 AM Arleen Quiñones Introduction 8:35 AM Video The New Tech Data 8:40 am ... President,

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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

Page 7: Investor Day 2017€¦ · Investor Day 2017 / OCTOBER 10, 2017. 22 Tech Data Investor Day 2017 8:30 AM Arleen Quiñones Introduction 8:35 AM Video The New Tech Data 8:40 am ... President,

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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

Page 8: Investor Day 2017€¦ · Investor Day 2017 / OCTOBER 10, 2017. 22 Tech Data Investor Day 2017 8:30 AM Arleen Quiñones Introduction 8:35 AM Video The New Tech Data 8:40 am ... President,

Tech Data’s Purpose:To continuously satisfy the world’s ever-evolving demand for technology.

Page 9: Investor Day 2017€¦ · Investor Day 2017 / OCTOBER 10, 2017. 22 Tech Data Investor Day 2017 8:30 AM Arleen Quiñones Introduction 8:35 AM Video The New Tech Data 8:40 am ... President,

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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

Page 10: Investor Day 2017€¦ · Investor Day 2017 / OCTOBER 10, 2017. 22 Tech Data Investor Day 2017 8:30 AM Arleen Quiñones Introduction 8:35 AM Video The New Tech Data 8:40 am ... President,

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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

Page 11: Investor Day 2017€¦ · Investor Day 2017 / OCTOBER 10, 2017. 22 Tech Data Investor Day 2017 8:30 AM Arleen Quiñones Introduction 8:35 AM Video The New Tech Data 8:40 am ... President,

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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

Page 12: Investor Day 2017€¦ · Investor Day 2017 / OCTOBER 10, 2017. 22 Tech Data Investor Day 2017 8:30 AM Arleen Quiñones Introduction 8:35 AM Video The New Tech Data 8:40 am ... President,

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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

Page 13: Investor Day 2017€¦ · Investor Day 2017 / OCTOBER 10, 2017. 22 Tech Data Investor Day 2017 8:30 AM Arleen Quiñones Introduction 8:35 AM Video The New Tech Data 8:40 am ... President,

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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

Page 14: Investor Day 2017€¦ · Investor Day 2017 / OCTOBER 10, 2017. 22 Tech Data Investor Day 2017 8:30 AM Arleen Quiñones Introduction 8:35 AM Video The New Tech Data 8:40 am ... President,

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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

Page 15: Investor Day 2017€¦ · Investor Day 2017 / OCTOBER 10, 2017. 22 Tech Data Investor Day 2017 8:30 AM Arleen Quiñones Introduction 8:35 AM Video The New Tech Data 8:40 am ... President,

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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

Page 16: Investor Day 2017€¦ · Investor Day 2017 / OCTOBER 10, 2017. 22 Tech Data Investor Day 2017 8:30 AM Arleen Quiñones Introduction 8:35 AM Video The New Tech Data 8:40 am ... President,

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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

Page 17: Investor Day 2017€¦ · Investor Day 2017 / OCTOBER 10, 2017. 22 Tech Data Investor Day 2017 8:30 AM Arleen Quiñones Introduction 8:35 AM Video The New Tech Data 8:40 am ... President,

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Connecting the World with the Power of Technology

TM