Sales

Gross Profit

GP Margin

SG&A Expenses

SG&A as % of Sales

SG&A as % of GP

GAAP Operating Income

Adjusted Operating Income ⁽¹⁾

Adjusted Operating Income Margin ⁽¹⁾

GAAP Net Income

Adjusted Net Income ⁽¹⁾

GAAP Diluted EPS

Adjusted Diluted EPS ⁽¹⁾

Return on Working Capital (ROWC) ⁽¹⁾

Return on Capital Employed (ROCE) ⁽¹⁾

Working Capital Velocity ⁽¹⁾

A reconciliation of non-GAAP financial measures is presented in the Non-GAAP Financial Information section of the press release attached as Exhibit 99.1 included in this Current Report on Form 8-K.

Sales exceeded expectations at both operating groups in the second quarter of fiscal 2014, increasing 10.8% year over year to a record $7.4 billion; organic sales (defined later in this document) grew 8.2% year over year and 8.1% excluding the translation impact of changes in foreign currency exchange rates (also referred to as “constant dollars” or “constant currency” and referenced to as “CC” in the graphs that follow).

Sequentially, sales exceeded expectations and were above normal seasonality as reported sales increased 17.0% and organic sales increased 13.9% in constant dollars.

Adjusted operating income increased 15.2% year over year primarily due to a combination of higher sales and cost reduction initiatives implemented in fiscal 2013. Both operating groups contributed to this improvement.

Sequentially, Technology Solutions (TS) was the primary driver as operating income grew 92.1% and operating margin increased 108 basis points.

Adjusted diluted earnings per share of $1.17 increased 11.4% year over year, primarily due to the improvement in operating income, partially offset by a decrease in other income.

Avnet ROWC improved 112 basis points and ROCE was up 53 basis points year over year, primarily due to the improvement in operating income at both operating groups.

Cash used for operations was $28.0 million in the quarter as working capital increased approximately 9.8% sequentially primarily due to an increase in accounts receivables related to stronger than expected sales at the end of December at TS. Cash flow from operations for the trailing twelve months was $134.6 million and working capital velocity improved year over year and sequentially.

During the quarter, the Company paid a quarterly cash dividend of $0.15 per share or $20.6 million and has paid $41.3 million for the fiscal year to date.

$ in millions - except per share data

January 23, 2014

Avnet, Inc.

Excluding FX ⁽¹⁾

Electronics Marketing (EM) Total

Excluding FX ⁽¹⁾

Americas

EMEA

Excluding FX ⁽¹⁾

Asia

Technology Solutions (TS) Total

Excluding FX ⁽¹⁾

Americas

EMEA

Excluding FX ⁽¹⁾

Asia

Year-over-year sales growth rate excluding the impact of changes in foreign currency exchange rates.

Organic sales as defined in this document.

Avnet, Inc. quarterly reported sales of $7.4 billion increased 10.8% year over year (10.7% in constant dollars) with both operating groups contributing towards this growth.

Year-over-year organic sales increased 8.2% (8.1% in constant dollars), which represents the third consecutive quarter of improving organic growth.

On a sequential basis, organic sales increased 13.9% in constant dollars, as both operating groups delivered results above expectations and normal seasonality. The normal seasonal range for the December quarter is +8% to +12%.

$ in millions - except per share data

January 23, 2014

EM’s quarterly reported sales of $4.2 billion exceeded the high end of expectations driven by better than expected sales in the high volume fulfillment business in Asia. Reported sales increased 13.1% year over year (12.7% in constant dollars) and organic sales grew 11.9% (11.4% in constant dollars) with both the EMEA and Asia regions reporting double digit growth.

EM’s organic sales grew 1.6% sequentially in constant dollars, above the normal seasonal range of -3% to 0%.

Americas’ organic sales increased 3.2% year over year and 0.4% sequentially.

EMEA’s organic sales increased 13.0% year over year and decreased 2.7% sequentially in constant dollars.

Asia’s organic sales increased 14.4% year over year and 5.7% sequentially. This represents the sixth consecutive quarter of year-over-year organic growth.

TS’ reported sales increased 8.0% year over year (8.3% in constant dollars) to $3.3 billion, primarily due to the strength in the Americas region; organic sales increased 3.8% and 4.1% in constant dollars; the first positive organic growth in eight quarters.

TS’ organic sales increased 34.6% sequentially in constant dollars, which exceeded the high end of expectations and normal seasonality of +20% to +26%.

Americas’ organic sales increased 8.0% year over year and 44.2% sequentially.

EMEA’s organic sales decreased 5.8% year over year in constant dollars and increased 30.6% sequentially.

Asia’s organic sales increased 2.0% year over year and 11.3% sequentially.

At a product level, software, storage and services grew over 30% sequentially while software and storage drove the year over year growth.

$ in millions - except per share data

January 23, 2014

Gross Profit

Gross Profit Margin

Gross profit was $848.6 million, up 10.4% year over year and 15.4% sequentially.

Gross profit margin of 11.4% was essentially flat with the year ago quarter and declined 16 basis points sequentially due to the business mix shift as the lower gross profit margin TS business grew to represent 44% of the enterprise as compared to 38% in the first fiscal quarter.

EM gross profit margin was essentially flat with the year ago quarter and improved 26 basis points sequentially. The sequential improvement was primarily driven by the acquisition of MSC, which has higher gross profit margins, partially offset by a higher percent of lower gross profit margin fulfillment business in the Asia region.

TS gross profit margin declined 18 basis points year over year and 34 basis points sequentially. The sequential decline was primarily driven by the Americas and Asia regions.

$ in millions - except per share data

January 23, 2014

Selling, General and Administrative Expenses

SG&A Expenses as a % of Gross Profit

Selling, general and administrative expenses (“SG&A expenses”) increased approximately 9.2% year over year to $598.6 million.

The year-over-year increase consisted primarily of a net increase of approximately $41 million related to operating expenses from acquired businesses, and an increase of approximately $3 million related to the translation impact of changes in foreign currency exchange rates between the periods.

SG&A expenses, excluding amortization of acquired intangibles, as a percentage of gross profit decreased 129 basis points to 69.0% from the year ago quarter.

EM SG&A expenses, excluding amortization of acquired intangibles, as a percent of gross profit decreased 192 basis points from the year ago quarter reflecting improved operating leverage from recent restructuring actions and increased gross profit.

TS SG&A expenses, excluding amortization of acquired intangibles, as a percent of gross profit decreased 10 basis points from the year ago quarter and decreased 1,220 basis points sequentially due to strong growth in sales and the corresponding gross profits dollars.

$ in millions - except per share data

January 23, 2014

Avnet, Inc. GAAP Operating Income

Adjusted Operating Income ⁽¹⁾

Adjusted Operating Income Margin ⁽¹⁾

Electronics Marketing (EM) Total

Operating Income

Operating Income Margin

Technology Solutions (TS) Total

Operating Income

Operating Income Margin

A reconciliation of non-GAAP financial measures is presented in the Non-GAAP Financial Information section of the press release attached as Exhibit 99.1 included in this Current Report on Form 8-K.

Avnet adjusted operating income of $263.2 million increased 15.2% year over year with both operating groups contributing to the improvement; sequentially adjusted operating income increased 31.9% primarily due to the strong sales growth at TS.

Adjusted operating income margin of 3.6% at the Avnet level increased 14 basis points year over year and 41 basis points sequentially.

EM operating income margin increased 24 basis points from the year ago quarter to 4.1% primarily due to the increase in gross profit and from recent cost reduction initiatives, which were partially offset by increases in operating expenses related to the acquisition of MSC. Operating income margin declined 33 basis points sequentially, primarily due to a higher percent of lower margin fulfillment business in the Asia region and the impact of the MSC acquisition in EMEA where the Company has yet to fully realize the expected synergies.

TS operating income margin was essentially flat from the year ago quarter and increased 108 basis points sequentially primarily due to the improved profitability related to the strong sales growth in the western regions.

$ in millions - except per share data

January 23, 2014

Interest Expense

Other Income (Expense)

GAAP Income Taxes

Adjusted Income Taxes ⁽¹⁾

GAAP Effective Tax Rate

Adjusted Effective Tax Rate ⁽¹⁾

A reconciliation of non-GAAP financial measures is presented in the Non-GAAP Financial Information section of the press release attached as Exhibit 99.1 included in this Current Report on Form 8-K.

Interest expense was $28.2 million, up $0.4 million from the year ago period. The increase in interest expense was primarily due to the issuance in November 2012 of $350 million of 4.875% Senior Notes due December 1, 2022, partially offset by lower average borrowings under the 2012 Credit Facility and the accounts receivable securitization program between the periods.

The Company reported $4.8 million of other expense during the second fiscal quarter, which was primarily related to foreign exchange losses.

The GAAP effective tax rate was 33.8% in the second quarter of fiscal 2014 as compared with 18.6% in the second quarter of fiscal 2013. During the second quarter of fiscal 2014, the Company’s effective tax rate was negatively impacted primarily by increases to valuation allowances, reserves, an investment in a foreign subsidiary, and to a lesser extent, by the mix of income earned in the higher tax rate jurisdictions. During the second quarter of fiscal 2013, the Company’s effective tax rate was favorably impacted primarily by the settlement of an audit by the U.S. Internal Revenue Services for an acquired company and the recognition of a U.S. tax benefit on the closure of a foreign operation.

$ in millions - except per share data

January 23, 2014

GAAP Net Income

Adjusted Net Income ⁽¹⁾

GAAP Diluted EPS

Adjusted Diluted EPS ⁽¹⁾

A reconciliation of non-GAAP financial measures is presented in the Non-GAAP Financial Information section of the press release attached as Exhibit 99.1 included in this Current Report on Form 8-K.

GAAP net income decreased by $12.6 million year over year to $124.9 million or $0.89 per share on a diluted basis, and increased 3.5% sequentially primarily due to the improvement in profitability discussed above offset somewhat by the impact of restructuring, integration and other charges and intangibles amortization expense.

Adjusted net income for the second quarter of fiscal 2014 was $163.9 million, or $1.17 per share on a diluted basis.

On an adjusted basis, net income and diluted earnings per share increased from the year ago quarter by 12.6% and 11.4%, respectively, primarily due to higher profitability at both operating groups.

Adjusted diluted earnings per share of $1.17 increased $0.27 or 30.0% sequentially primarily due to the improvement in profitability at TS.

$ in millions - except per share data

January 23, 2014

Accounts Receivable

Inventory

Accounts Payable

Working Capital

Working Capital Velocity

Working capital velocity increased 0.47 turns sequentially, primarily due to above seasonal sales growth at both operating groups and was essentially flat with the year ago quarter.

Working capital (accounts receivable plus inventory less accounts payable) increased $733.2 million, or 19.2%, year over year and 16.6% when adjusted for acquisitions and the translation impact of changes in foreign currency exchange rates. The increase is related to the year over year growth in sales at both operating groups as well as the stronger than anticipated growth in receivables at TS at the end of December and a decrease in payables at EM related to a decline in inventory.

On a sequential basis, working capital increased $406.3 million or 9.8% and 7.8% when adjusted for acquisitions and currency, primarily due to the $888.3 million increase in accounts receivable. TS represented over 90% of the growth in accounts receivable including approximately half of the growth being driven by the TS Americas region, primarily due to the stronger than anticipated close at the end of the December quarter.

Inventory increased $325.5 million or 14.6% year over year and 8.9% when adjusted for acquisitions and the translation impact of changes in foreign currency exchange rates and is in-line with the organic year over year growth in sales of 8.1% in constant dollars.

On a sequential basis, inventory increased $38.5 million or 1.5% and decreased 2.4% after adjusting for acquisitions and the translation impact of changes in foreign currency exchange rates. The sequential organic decrease in inventory was primarily due to a 4.9% decrease at EM where all three regions reduced inventory sequentially.

$ in millions - except per share data

January 23, 2014

Return on Working Capital (ROWC) ⁽¹⁾

Return on Capital Employed (ROCE) ⁽¹⁾

A reconciliation of non-GAAP financial measures is presented in the Non-GAAP Financial Information section of the press release attached as Exhibit 99.1 included in this Current Report on Form 8-K.

ROWC for the second quarter of fiscal 2014 was 24.0%, an increase of 112 basis points year over year and an increase of 420 basis points sequentially.

The year-over-year and sequential increase were primarily due to the increase in operating income noted above.

ROCE of 12.8% was up 53 basis points from the year ago quarter and 243 basis points sequentially.

$ in millions - except per share data

January 23, 2014

Net Income

Non-Cash Items

Working Capital and Other

Cash Flow from Operations

TTM CF from Operations

During the second quarter of fiscal 2014, cash flow used for operations was $28.0 million and over the trailing twelve months cash flow generated from operations was $134.6 million. The use of cash was primarily driven by an increase in working capital as the stronger than expected close at the end of the December quarter at TS drove a significant increase in accounts receivables.

The Company did not purchase any shares under the $750 million share repurchase program during the quarter. As of the end of the quarter, the Company had approximately $225 million remaining in the program.

During the quarter, the Company paid a dividend of $0.15 per share or $20.6 million in total and $41.3 million fiscal year to date.

Cash and cash equivalents at the end of the quarter were $779.3 million, of which $677.9 million was held outside the United States; net debt (total debt less cash and cash equivalents) was approximately $1.4 billion.

$ in millions - except per share data

January 23, 2014

ROWC is defined as annualized adjusted operating income (as defined above) divided by the sum of the monthly average balances of receivables and inventory less accounts payable.

ROCE is defined as annualized, tax effected adjusted operating income (as defined above) divided by the monthly average balances of interest-bearing debt and equity (including the impact of adjustments to operating income discussed above) less cash and cash equivalents.

$ in millions - except per share data

January 23, 2014

WC velocity is defined as annualized sales divided by the sum of the monthly average balances of receivable and inventory less accounts payable.