Rick Hamada

1
Avnet, Inc.Technology Marketing, Distribution,
and Services Serving the Technology Supply Chain

• Rick Hamada
• Group President
• Avnet Computer Marketing

Ray Sadowski Chief Financial Officer Avnet, Inc.
2
Non-GAAP Results and Regulation G

• Use of Pro-Forma or Non-GAAP Results
• In addition to disclosing financial results that
  are determined in accordance with generally
  accepted accounting principles (GAAP), the
  Company also discloses pro forma or non-GAAP
  results of operations that exclude certain
  charges. Management believes that providing this
  additional information is useful to investors to
  better assess and understand operating
  performance, especially when comparing results to
  previous periods or forecasting performance for
  future periods. Management believes the pro
  forma measures also help indicate underlying
  trends in the business.
• However, analysis of results and outlook on a pro
  forma or non-GAAP basis should be used as a
  complement to, and in conjunction with, data
  presented in accordance with GAAP.
  Reconciliations of the Companys analysis of
  results to GAAP for the third quarter of fiscal
  year 2003 can be found on the Form 8-K filed with
  the SEC on April 24, 2003 and at
  www.ir.avnet.com/gaap.
• The computation of non-GAAP or pro forma results
  or measures contained in this presentation are
  generally indicated in the footnotes to the slide
  on which such amounts appear.
• References to special charges and/or the
  exclusion thereof refer to incremental charges
  taken in certain quarters indicated with
  reference to the appropriate SEC filings, all of
  which can be accessed at www.ir.avnet.com, and
  which further disclosure of these charges first
  appeared.

3
Safe Harbor Statement

• This presentation, which can be downloaded and
  printed at www.ir.avnet.com/presentations,
  contains certain forward-looking statements
  within the meaning of Section 27A of the
  Securities Act of 1933 and Section 21E of the
  Securities Exchange Act of 1934. These
  statements are based on managements current
  expectations and are subject to uncertainty and
  changes in factual circumstances. The
  forward-looking statements herein include
  statements addressing future financial and
  operating results of Avnet and may include words
  such as will, expect, anticipate,
  believe, changing, and developing. Actual
  results may vary materially from the expectations
  contained in the forward-looking statements.
• The following factors, among others, could cause
  actual results to differ materially from those
  described in the forward-looking statements the
  effects of additional actions taken to lower
  costs, including the restructure of AC discussed
  in Avnets third quarter financial results press
  release, the Companys ability to retain and grow
  market share, the Companys ability to generate
  additional cash flow, any significant and
  unanticipated sales decline, changes in business
  conditions and the economy in general, changes in
  market demand and pricing pressures, allocations
  of products by suppliers, and other competitive
  and/or regulatory factors affecting the
  businesses of Avnet generally.
• More detailed information about these and other
  factors is set forth in Avnets filings with the
  Securities and Exchange Commission, including the
  Annual Report on Form 10-K for fiscal 2002.
  Avnet is under no obligation to (and expressly
  disclaims any such obligation to) update or alter
  any forward-looking statements, whether as a
  result of new information, future events or
  otherwise.
•  

4
Enterprise Highlights
Financial and Operational Performance
Capital Resource Management
Company Outlook (as of May 2003)
Technology Supply Chain Dynamics
Market Position

• 1 in net sales with global reach
• 8.92 B FY02 Sales
• 1.3 B Market Cap
• Over 10,000 Employees
• 63 Countries / 300 sites
• Economies of scale and scope

• Reduced debt 1.85 billion since Dec 2000 quarter
  (cycle peak)
• Strong asset and working capital debt coverage
• Focused on maintaining strong liquidity, coverage
  ratios, and earnings growth

• Stabilization of revenue
• Cost rationalization program
• Increased working capital efficiency
• EBITDA growth

• Continue to see stability in technology end
  markets
• See slight components markets improvement
  worldwide
• Significant PL leverage
• Balance Sheet strong
• We continue to manage the things we can control

• Widespread evidence of tech supply chain
  stabilization
• Recent semiconductor industry growth forecast
  improvement

Positioned to capitalize on technology industry
recovery
5
Avnets Value Propositions
Market Position
Electronic Component Manufacturers Semiconductor
s IPE
Electronic Computer OEMs
End User
6
FY03 Revenue Snapshot
Financial and Operational Performance
FY03 YTD Revenues 6.86 B
FY03 Mar Qtr Revenue Analysis
1.28B
.42 B
1.29 B
.63B
1.84B
3.74B
0.74B
.27 B
1.25 B
.82 B
2.29B
3.83B
7
Quarterly Financial Performance
Financial and Operational Performance
8
Avnet Inc Changing Business Model
Capital Resource Management
Working Capital Velocity equals Annualized Sales
divided by Average Working Capital. Average
Working Capital equals Inventory plus Trade
Accounts Receivable (including receivables sold
under A/R Securitization program) less Account
Payable. Operating Margin is calculated excluding
impact of special charges. See Non-GAAP Results
and Regulation G for discussion of impacts of
special charges on the periods presented.
9
Avnet Managing What We Can Control
Company Outlook / Guidance

• Since December 2000 Quarter(1)
• Reduced SGA
• Delivered 350 M Annualized(2)
• Constant 448 M Annualized(2)
• Reduced WC(3) 2.10 B
• Reduced Debt(4) 1.85 B
• Liquidity (5) 827 M Capacity

• Significant Operating Leverage
• Strong Balance Sheet

Reactive

• Shareholder Value Creation
• Accelerated Earnings Growth

• Value Based Management (ROCE)
• Focused, Specialized SBUs
• Fee-based Services business development

Proactive

• All numbers, except for Reduced SGA Constant
  , include the impact of foreign currency
• See attached reconciliation for computation of
  Operating Expenses, excluding special charges and
  including certain pro forma adjustments
• Trade accounts receivable and inventory less
  accounts payable.
• Includes A/R Securitization as debt see slide
  attached reconciliation at end of this
  presentation
• Consists of available borrowing capacity under
  bank facilities of 700 million against which
  there are no amounts outstanding, plus
  approximately 301 million of cash and cash
  equivalents, less calendar 2003 and calendar 2004
  debt maturities.

10
Computer Marketing
Market Position

• Overview
• Distributor / reseller of enterprise networking,
  storage, and computer hardware to VARs and end
  users
• Focus on mid- to high-end, value-added computer
  products and services
• Products
• Enterprise computing systems, software and
  storage
• Services
• Complex technical system configuration,
  integration, and networking solutions and services

Key Relationships
Suppliers
Customers Cisco Systems
DirecTV HP / Compaq Intel
Corp. IBM
Sirius Computer Solutions EMC2
Melillo Consulting, Inc. Oracle Corp.
Venture SystemSource, Inc.
Customer Segmentation
1000 Accounts
1 B
29,000 Accounts
Mid Market Focus
50 M
Tier III Accounts
11
The CM Value Creation Environment
End Users
END USERS
VARs
IT
SUPPLIERS
TRAINING
FINANCE
LOGISTICS
OPERATIONS
Solving Business Problems
Products Technologies
Key Questions for Suppliers 1) Which
products/technologies to which customers? 2)
Which products need to be sold?
12
CM Operating Group Financial History
Before Special Items
13
Question and Answer Session

• Thank you for your interest in Avnet.
• Please contact us at
• 480-643-7053
• Investorrelations_at_avnet.com
• www.ir.avnet.com
• GAAP Information can be found on the Avnet
  Investor Relations Web site at
• www.ir.avnet.com/gaap
• www.ir.avnet.com/presentations
• www.ir.avnet.com/financial