#1Arrow Electronics Investor Presentation February 2024 ARW LISTED NYSE 78.91 0.80 Sees 2H Adjusted EPS AT wwww wwww se Lice CITADEL Securities 27681-083 NEW YORK STOCK EXCHANGE J&CNBC NYSE CNBC 7 NYSE 03:00:38 wwwww Λ NYS9 MANGW NYSE VadEcl SUBS P.R NYSE NYSE LIC E NYSE 18244#2Safe harbor This presentation includes "forward-looking" statements, as the term is defined under the federal securities laws, including but not limited to statements regarding: Arrow's future financial performance, including its outlook on financial results for the first quarter of fiscal 2024 such as sales, net income per diluted share, non-GAAP net income per diluted share, average tax rate, average diluted shares outstanding, interest and other expense, impact to sales due to changes in foreign currencies, intangible amortization expense per diluted share, restructuring and integration charges per diluted share, and expectations regarding market demand and shareholder returns. These and other forward-looking statements are subject to numerous assumptions, risks, and uncertainties, which could cause actual results or facts to differ materially from such statements for a variety of reasons, including, but not limited to: unfavorable economic conditions; disruptions or inefficiencies in the supply chain; political instability; impacts of military conflict and sanctions; industry conditions; changes in product supply, pricing and customer demand; competition; other vagaries in the global components and the global enterprise computing solutions (“ECS”) markets; deteriorating economic conditions, including economic recession, inflation, tax rates, foreign currency exchange rates, or the availability of capital; the effects of natural or man-made catastrophic events; changes in relationships with key suppliers; increased profit margin pressure; changes in legal and regulatory matters; non-compliance with certain regulations, such as export, antitrust, and anti-corruption laws; foreign tax and other loss contingencies; breaches of security or privacy of business information; outbreaks, epidemics, pandemics, or public health crises; and the company's ability to generate positive cash flow. For a further discussion of these and other factors that could cause the company's future results to differ materially from any forward-looking statements, see the section entitled "Risk Factors" in the company's most recent Annual Report on Form 10-K, as well as in other filings the company makes with the Securities and Exchange Commission. Shareholders and other readers are cautioned not to place undue reliance on these forward-looking statements, which speak only as of the date on which they are made. The company undertakes no obligation to update publicly or revise any of the forward-looking statements. In addition, this presentation includes certain non-GAAP financial measures. These non-GAAP financial measures, which may be different than similarly titled measures used by other companies, are presented to enhance investors' overall understanding of our financial performance and should not be considered a substitute for, or superior to, the financial information prepared and presented in accordance with GAAP. See "Certain Non-GAAP Financial Information" for more information and a reconciliation between GAAP and non-GAAP measures provided in this presentation. ww 2#3Agenda 1. Overview 2. Business detail - global components 3. 4. Business detail - global enterprise computing solutions Financials 5. Additional information and financial tables MGW 3#4Overview NOW 4#5Our noble purpose ww Five Years Out We enable technology solutions that make a positive difference in people's lives; we guide the power of innovation to make the world better. MGW#6Our history 1935 1946 1961 1979 1986 2005 2011 2024 Arrow Radio opens on Radio Row in New York City Incorporated as Arrow Electronics Arrow goes public MGW Listed on NYSE (ARW) 50+ acquisitions and expansion into Europe and Asia Arrow expands computer products business beyond North America Arrow moves HQ from New York to Colorado Arrow tops category in FORTUNE'S "World's Most Admired Companies" list for 11 consecutive years 6#7Executive leadership & core values Ethical We believe in and behave with integrity and respect at all times, when everyone is watching and when no one is watching. Open-Minded and Courageous We believe in and behave with well-intended curiosity, welcoming diverse ways of thinking and working, expanding our mind- and behavior sets, when venturing and when persevering. Results-Oriented and Accountable We believe in and behave with responsibility and ownership for the quality of our work, when accomplishing intended outcomes and when course correcting. Raj Agrawal Senior Vice President, Chief Financial Officer Alan Bird Senior Vice President, Chief Transformation Officer Carine Jean-Claude Senior Vice President, Chief Legal Officer and Secretary Steve Kerdock Senior Vice President, Chief Marketing Officer Innovative We believe in original thinking and executing new ideas, continuously adapting our mind- and behavior-sets to create increased value. Customer Centricity We believe in and behave with a customer-first orientation, earning trust and loyalty, and driving repeat and growing business. One Arrow We believe in and behave with the broadest view of our organization, understanding the vital role we each play for the greatest good of all stakeholders. Sean J. Kerins President and Chief Executive Officer Chuck Kostalnick Senior Vice President, Chief Logistics and Procurement Officer WW Kristin Russell President, Global Enterprise Computing Solutions Kim Brown Wilmsen Senior Vice President, Chief Information Officer Rick Marano President, Global Components Gretchen K. Zech Senior Vice President, Chief Governance, Sustainability, and Human Resources Officer Shantnu Sharma Senior Vice President, Chief Strategy and Technology Officer 7#8Arrow Electronics at a glance We enable technology solutions that make a positive difference in people's lives; we guide the power of innovation to make the world better • Centennial, CO HEADQUARTERS 53 COUNTRIES WITH EMPLOYEES 22,000+ EMPLOYEES >210 WORLDWIDE LOCATIONS • ARW (NYSE) TICKER SYMBOL 109 FORTUNE 500 RANK $33.1 billion 2023 SALES 80+ COUNTRIES SERVED 1935 FOUNDED MVUW • Global provider of products, services, and solutions to industrial and commercial users of electronic components and enterprise computing solutions The company has two business segments: • The global components business distributes electronic components The global enterprise computing solutions ("ECS") business provides information technology solutions Global components has operations in the Americas, EMEA and the Asia-Pacific regions; global enterprise computing solutions has operations in the Americas and EMEA 2023 Sales 77% O 23% 8#9We specialize in managing complexity ww 85 Countries 180 Sales Facilities 39 Distribution & Value Added Centers 9#10Arrow's approach to ESG ESG GOVERNANCE STRUCTURE Board of Directors Audit Committee Reviews sustainability disclosures, including relevant ESG metrics; oversees data privacy and cybersecurity Corporate Governance Committee Oversees policies and practices relating to ESG matters Compensation Committee Oversees practices affecting the workforce, including culture and diversity and inclusion Environmental, Social, and Governance April 2023 ESG Operating Committee Guides ESG priorities and related performance ESG Working Groups Comprised of functional experts that facilitate data sharing, implement processes and monitor progress towards ESG goal achievement 2023 ESG GOALS 2022 Report ww www • Continue to reduce Scope 1 and 2 emissions in 2023, supporting our multi-year goal to reduce Scope 1 and 2 emissions by 10% across all Arrow locations and fleet by the end of 2025 Baseline three categories of Scope 3 emissions as a next step to enable setting targets aligned with the Science-Based Targets initiative (SBTI) by the end of 2025 Continue to grow representation of women leaders globally and leaders who are of underrepresented race/ethnicity in the U.S. in 2023, supporting our multi-year goal to grow representation by two percentage points in each category by the end of 2025 Continue ongoing global pay equity analysis and adjust pay where appropriate to close any pay equity gaps Reaffirm Arrow's strategic partners' commitment to the principles of Arrow's Supplier Business Code of Conduct by the end of 2023 Ensure that Arrow's top suppliers complete a supplier self-assessment and due diligence questionnaire by the end of 2023 Arrow achieved all ESG Goals for 2022 MW 10#11Serving diverse end markets with enabling technology End Markets Arrow Technologies / Solutions Arrow Businesses* Industrial/Automation Healthcare / Medical Consumer Electronics Aerospace/Defense Auto/Transportation Data Center Now Semiconductors IP&E Engineering Services Supply Chain Services Software (Infrastructure, Data Intelligence, Security) Cloud Enablement Infrastructure Hardware (Storage, Compute, Networking) IT as a Service GLOBAL COMPONENTS SALES $25.4B GLOBAL ENTERPRISE COMPUTING SOLUTIONS SALES $7.7 B * Revenue figures for 2023 IP&E - Interconnect, Passive & Electro-mechanical devices 11#12Business detail Global components NOW EV 12#13Electronic components value chain overview Components Manufacturers Distributors End Customers Original Component Manufacturers (OCMs) Produce and sell components for use in end-products vw Franchise Distributors Act as authorized distributors for original component manufacturers End-Product Manufacturers (OEMs) Obtain components from OCMs and distributors for use in end-product manufacturing End-Product Manufacturers (CMS) Obtain components from OCMs and distributors for use in end-product manufacturing End Customer 13#14Global components The foundation of the components business is the distribution of semiconductor components as well as interconnects, passives & electromechanical devices (IP&E) Semiconductors Global reach Hundreds of suppliers Thousands of customers No one customer accounts for > 2% of sales 180 sales locations 39 distribution facilities IP&E Engineering Services From design engineering support for our customers new product introductions to complete turn-key engineering solutions Supply Chain Services MVGW Providing improved supply chain visibility, managing supply/demand, inventory, order management, fulfillment and logistics for our customers AL www E R31 R32 14 D13 U6 R22 D14 Z12 Z13 U7 R23 D15 14#15Global components Semiconductors • Arrow suppliers are the major device manufacturers who provide logic (CPUs, GPUs, FPGAs) and memory (DRAM, Flash) • IP&E-interconnects, passives & electromechanical A fragmented supplier base provides the non-active components in an electronic system. "interconnects" are connectors and cables. “passive" components refer to resistors, capacitors, batteries and inductors. "electromechanical" covers mechanical relays and switches, power supplies and a variety of sensors. Global component customers are OEMS, EMS companies and ODMS with no one customer accounting for more than 2% of revenue MGW OEM - Original Equipment Manufacturer | EMS-Electronics Manufacturing Service ODM - Original Design Manufacturer 89145 R9146 9130 R9131 21 20131 19138 R91.392 L 9121 R9134 4R9165 R9163 R9119 R9132 4R9123 R9120 R9118R0116 R9122 R9133 R9117 89144 89141 R9129 89143 R9128 R9142 www.om 19140 R9164 29166 R9185 187 20171 15#16Global components Engineering Services We help customers (EMS companies and OEMs) get to market quickly, and enable our suppliers' technology in the market Complex, custom solutions Turnkey R&D services elnfochips New Product Introductions Design Registrations Design Wins Engineering Service Centers Off-the-shelf solutions MGW Semiconductor and Interconnects, Passives and Electromechanical 16#17EXPER Global components Supply Chain Services We manage highly complex, high-volume global supply chains for large OEMs and suppliers with our: • seasoned industry experts • best-in-class processes world-class systems and infrastructure extensive global footprint and reach 9114 SILICONEXPERT Supply Chain Risk Management CONVERGE AN ARROW COMPANY Supply Chain Control, Resilience, & Visibility Optimization Supply Chain Performance MGW Global Alliance Global Supply Chain Services 17#18Business detail Global enterprise computing solutions NOW 18#19Enterprise computing solutions value chain overview Makers of Technology ww ww Enterprise Computing Solutions IT DISTRIBUTION Channel Partners End Customers 19#20Global enterprise computing solutions With access to hundreds of vendors, we enable our community of thousands of channel partners to deliver modern IT solutions for their customers. Stratasys AERO Speedre LO 5 MISSION Electrolit LUCAS OIL www AGW I 101 Software (Infrastructure, Data Intelligence, Security) Infrastructure Hardware (Storage, Compute, Networking) We deliver complex hardware, software, and cloud solutions. Our award-winning digital platform, ArrowSphere, helps partners manage, scale, and differentiate. NOW Cloud Enablement IT as a Service 3 Tezos MISSION 20#21Global enterprise computing solutions Value Customer Enablement Supplier GTM Solutions Market Enterprise and Mid-Market ArrowSphere Technology Software, Cloud, & XaaS Our ArrowSphere platform is at the center of our strategy We target enterprise and mid-market customers through channel partners on behalf of our suppliers Channel partners enjoy • Cloud and "everything-as-a-service" enablement • Hardware and software distribution capabilities Specializing in channel enablement services • Subscription management • Cloud lifecycle management • · Cloud provisioning & workflow Financing services MGW 21#22Financials NOW 22 2#23FY 2023 financial metrics Sales & Gross Margin 37.1 Non-GAAP Operating Expenses¹ 34.5 2.7 33.1 2.6 2.6 2.2 2.3 28.9 28.7 12.5% 13.0% 7.9% 7.8% 7.7% 12.2% 7.5% 7.3% 11.4% 11.1% 2019 2020 2021 Sales ($B) 2022 Gross Margin (%) 2023 2019 2020 2021 2022 2023 Non-GAAP Operating Income¹ Opex ($B) -Opex (%) Non-GAAP Diluted EPS1 22.38 2.1 83.6 78.6 1.6 1.6 15.50 17.12 5.7% 1.1 0.9 4.7% 4.8% 7.75 73.4 7.55 3.7% 3.3% 65.5 57.0 2019 2020 2021 Op Inc. ($B) 2022 -Op Inc. (%) 2023 Global components FY '23 non-GAAP operating margin was 5.8% Enterprise computing solutions FY '23 non-GAAP operating margin was 4.8% Mw 2019 2020 2021 I Diluted EPS ($) 2022 2023 Shares Outstanding (M) Interest and other expense, net in 2023 was $329 million Non-GAAP Effective Tax Rate was 22.0%¹ 1 See reconciliation to comparable GAAP figures in the tables at the end of this presentation 23#24History of strong financial returns 30.0% 20.0% 10.0% Return on Working Capital (Non-GAAP)1 20.0% 15.0% 10.0% 5.0% Return on Invested Capital (Non-GAAP)1 0.0% 0.0% 2019 2020 2021 2022 2023 2019 2020 2021 2022 2023 ww (1) Refer to backup section of this document for comparable GAAP figures and a reconciliation of GAAP to Non-GAAP 24 24#25Disciplined approach to capital allocation Capital priorities within the framework of an investment- grade credit rating Invest in the business for organic growth Acquire companies that meet our value criteria to strategically accelerate growth Return excess capital to shareholders $1,200 100 $1,000 90 $800 80 $600 70 70 $400 $200 60 60 $0 50 50 000 2018 2019 2020 2021 2022 2023 Repurchases ($M) Diluted Shares Outstanding (M) $3.8B of cash returned to shareholders between 2018 and 2023 through repurchases MW 25 25#26R Thank You For more information: email: [email protected]#27OSL Additional information and financial tables NOW#28Our network in numbers: Full-Year 2023 CONSOLIDATED SALES GROSS PROFIT $33.1 B 11% $4.1B 14% OPERATING INCOME GLOBAL COMPONENTS SALES $25.4B 12% $1.5B NET INCOME $0.9B GLOBAL ENTERPRISE COMPUTING SOLUTIONS SALES DILUTED EARNINGS PER SHARE $7.7 B 8% MGW $15.84 AMERICAS COMPONENTS SALES $8.0B EMEA COMPONENTS SALES $8.1B 29% ASIA PACIFIC COMPONENTS SALES ▼37% ▼27% Figures are in accordance with GAAP and reflect year-on-year performance. $9.4B 17% 6% 19% AMERICAS ENTERPRISE COMPUTING SOLUTIONS SALES $4.2B 14% EMEA ENTERPRISE COMPUTING SOLUTIONS SALES $3.5B 1% 28#29Q1 2024 guidance Consolidated Sales Global Components Global ECS Diluted Earnings Per Share* Non-GAAP Diluted Earnings Per Share* Interest and Other Expense, Net * Assumes an average tax rate in the range of 23% to 25%. $6.70 billion to $7.30 billion $5.00 billion to $5.40 billion $1.70 billion to $1.90 billion $1.95 to $2.15 $2.20 to $2.40 Approximately $80 million We estimate changes in foreign currencies to increase year on year growth in sales by $13 million and earnings per share on a diluted basis by $0.01 compared to the first quarter of 2023. We estimate changes in foreign currencies to increase quarter on quarter growth in sales by approximately $31 million and earnings per share on a diluted basis by $0.02 compared to the fourth quarter of 2023. MGW Refer to the backup section of this presentation for GAAP to non-GAAP reconciliation. 29 29#30Q4 2023 revenue ($7.8B consolidated) Global Components Asia Pacific $1.8B 23% $2.2B Americas 15% $5.6B 17% EMEA $1.7B 14% MGW Enterprise Computing Solutions EMEA $1.1B ▼2% $2.2B 11% $1.1B ▼18% Americas Revenue figures are GAAP and year-on-year performance changes are as-reported Amounts may not calculate precisely due to rounding 30#31Q4 2023 financial metrics 9.3 Sales & Gross Margin Non-GAAP Operating Expenses¹ 673 8.0 7.8 600 626 12.9% 8.0% 12.6% 7.5% 7.2% 12.2% Q4'22 Q3 '23 Sales ($B) Q4'23 Q4'22 Gross Margin (%) Q3'23 Opex ($M) -Opex (%) Q4'23 Non-GAAP Operating Income¹ 533 5.69 Non-GAAP Diluted EPS1 4.14 379 364 5.7% 61.7 4.7% 4.6% 56.3 Q4'22 Q3'23 Op Inc. ($M) Q4'23 -Op Inc. (%) 3.98 55.0 Q4'22 Q3'23 I Diluted EPS ($) Q4'23 Shares Outstanding (M) Global components Q4 ‘23 non-GAAP operating margin was 5.1% Enterprise computing solutions Q4 '23 non-GAAP operating margin was 6.6% Mw Interest and other expense, net in Q4 ‘23 was $82 million Non-GAAP Effective Tax Rate was 21.8%1 31 1 See reconciliation to comparable GAAP figures in the tables at the end of this presentation#32Working capital 12.3 Net Working Capital ($B) 12.2 10.7 7.2 7.4 7.4 5.3 5.8 5.2 10.5 Q4'22 120 60 9.1 10.1 Q3 '23 Q4'23 Cash Conversion (Days) 114 99 66 142 121 75 84 69 64 112 Q4'22 Q3 '23 Inventory Turns: 6.1 4.8 MGW 147 Q4'23 5.3 Accounts Receivable Inventory Accounts Payable Net Working Capital Days Sales Outstanding Days Inventory Outstanding Days Payable Outstanding Cash Conversion Cycle Non-GAAP Return on Working Capital (ROWC)1 was 19.8% in the fourth quarter, down 990 basis points year on year. The decrease in ROWC related primarily to lower operating income in global components, in addition to higher working capital levels. Non-GAAP Return on Invested Capital (ROIC)¹ was 12.0% in the fourth quarter, down 580 basis points year on year. The decrease in ROIC related primarily to lower operating income in global components. ¹See reconciliation to comparable GAAP figures in the tables at the end of this presentation 22 32#33Balance sheet and cash highlights Operating Cashflow $287M in Q4 • $705M in FY 2023 $ ǎn MGW Net Debt was $3.6B Total Liquidity was $2.4B including $218M in cash Shares Repurchased • ~$50M in Q4 ~$750M in FY 2023 33#34Revenue history ($ in millions, may reflect rounding) Q4'23 Q4'23 Q4'22 Q1'23 Q2'23 Q3'23 Q4'23 Y/Y Q/Q Change Change Comment Global Components Total 6,827 6,856 6,683 6,245 5,636 -17% -10% Americas 2,327 2,233 2,067 1,870 1,785 -23% -5% Year on year reduction due to normalizing shortage market, with strength in aerospace & defense and medical Europe, Middle East & Africa 1,957 2,246 2,153 1,987 1,688 -14% -15% Quarter on quarter weakness in most verticals, with Industrial softness. Asia Pacific 2,543 2,376 2,463 2,388 2,163 -15% -9% Continued macro-economic softness across the region, with relative momentum in Data Center and Transportation Enterprise Computing Solutions 2,496 1,881 1,832 1,762 2,213 -11% 26% Total Europe, Middle East & Africa 1,092 883 831 746 1,067 -2% 43% Year on year billings and gross profit growth with healthy demand for infrastructure software and networking products Americas 1,404 998 1,001 1,016 1,146 -18% 13% Year on year softness in cyber security, storage and compute Arrow Electronics Total 9,323 8,736 8,515 8,007 7,849 -16% -2% MGW 34#35Operating income history Global Components ($M) $443 $449 $418 $424 $381 $388 $379 $386 Enterprise Computing Solutions ($M) $155 $156 $281 $288 $81 $82 $86 $87 $55 $56 $145 $146 Q4-'22 Q1-'23 Q2-'23 Q3-'23* Q4-'23 Q4-'22 Q1-'23 Q2-'23 Q3-'23* Q4-'23 ■GAAP Non-GAAP GAAP Non-GAAP * Q3-'23 operating income included a legal settlement benefit of $62 million in our global components business and a partially offsetting $22 million charge in our ECS business to increase accounts receivable reserves related to a customer Mw See the reconciliation to comparable GAAP figures in the tables at the end of this presentation 35#36Certain Non-GAAP financial information In addition to disclosing financial results that are determined in accordance with accounting principles generally accepted in the United States ("GAAP”), the company also provides certain non-GAAP financial information relating to sales, operating income (including by business segment), operating margin, operating expense, income before income taxes, provision for income taxes, consolidated net income, noncontrolling interests, net income attributable to shareholders, effective tax rate, net income per share on a diluted basis, return on working capital, and return on invested capital. These non-GAAP measures are adjusted by certain of the following, as applicable: the impact of changes in foreign currencies (referred to as "changes in foreign currencies" or "on a constant currency basis") by re-translating prior-period results at current-period foreign exchange rates, identifiable intangible asset amortization, restructuring, integration, and other charges, net gains and losses on investments, and impact of tax legislation changes. Management believes that providing this additional information is useful to the reader to better assess and understand the company's operating performance and future prospects in the same manner as management, especially when comparing results with previous periods. Management typically monitors the business as adjusted for these items, in addition to GAAP results, to understand and compare operating results across accounting periods, for internal budgeting purposes, for short- and long-term operating plans, and to evaluate the company's financial performance. However, analysis of results on a non-GAAP basis should be used as a complement to, in conjunction with, and not as a substitute for, data presented in accordance with GAAP. For a complete reconciliation between our GAAP and non-GAAP results, please refer to reconciliations found at the end of this document. MGW 36#37First-quarter 2024 GAAP to non-GAAP outlook reconciliation ($ in billions, except per share data) NON-GAAP SALES RECONCILIATION Quarter Ended 30-Mar-24 1-Apr-23 % Change Quarter Ended 30-Mar-24 31-Dec-23 % Change Global components sales, GAAP $ 5.00 - 5.40 6.86 (27%) - (21%) $ 5.00 - 5.40 5.64 (11%) - (4%) Impact of changes in foreign currencies (0.01) 0.02 Global components sales, constant currency $ 5.00 - 5.40 $ 6.85 (27%) - (21%) $ 5.00 - 5.40 5.66 (12%) - (5%) Global ECS sales, GAAP $ 1.70 -1.90 1.88 (10%) -1% $ 1.70 -1.90 2.21 (23%) - (14%) Impact of changes in foreign currencies 0.02 0.01 Global ECS sales, constant currency $ 1.70-1.90 $ 1.90 (11%) -0% $ 1.70 -1.90 $ 2.22 (23%) -(14%) Net income per diluted share MGW NON-GAAP EARNINGS RECONCILIATION REPORTED GAAP MEASURE INTANGIBLE AMORTIZATION $1.95 to $2.15 EXPENSE $0.10 RESTRUCTURING & INTEGRATION CHARGES $0.15 NON-GAAP MEASURE $2.20 to $2.40 37#38Non-GAAP fourth-quarter sales reconciliation ($ in thousands) MGW Quarter Ended 31-Dec-23 31-Dec-22 % Change Consolidated sales, as reported $ 7,849,157 $ 9,323,023 -15.8% Impact of changes in foreign currencies Consolidated sales, constant currency 126,441 $ 7,849,157 $ 9,449,464 -16.9% Global components sales, as reported $ 5,636,032 +A $ 6,827,029 -17.4% Impact of changes in foreign currencies 75,974 Global components sales, constant currency $ 5,636,032 $ 6,903,003 -18.4% Americas components sales, as reported $ 1,784,764 $ 2,326,995 -23.3% Impact of changes in foreign currencies 99 Americas components sales, constant currency $ 1,784,764 $ 2,327,094 -23.3% Asia components sales, as reported $ 2,163,421 $ 2,543,294 -14.9% Impact of changes in foreign currencies (7,158) Asia components sales, constant currency $ 2,163,421 $ 2,536,136 -14.7% Europe components sales, as reported $ 1,687,847 $ +A 1,956,740 -13.7% Impact of changes in foreign currencies 83,033 Europe components sales, constant currency $ 1,687,847 $ 2,039,773 -17.3% Global ECS sales, as reported +A $ 2,213,125 $ 2,495,994 -11.3% Impact of changes in foreign currencies 50,467 Global ECS sales, constant currency $ 2,213,125 $ 2,546,461 -13.1% Americas ECS sales, as reported $ 1,145,754 $ 1,404,224 -18.4% Impact of changes in foreign currencies 200 Americas ECS sales, constant currency $ 1,145,754 $ 1,404,424 -18.4% Europe ECS sales, as reported $ 1,067,371 $ Impact of changes in foreign currencies Europe ECS sales, constant currency 1,091,770 50,267 -2.2% $ 1,067,371 $ 1,142,037 -6.5% 38#39Quarterly GAAP to non-GAAP reconciliation ($ in thousands, except per share data) Three months ended December 31, 2023 Intangible Amortization Restructuring & Integration Reported GAAP measure Operating expense Operating income Income before income taxes Provision for income taxes Consolidated net income Noncontrolling interests $ 672,872 Expense $ (7,491) charges (1) $ Other (2) Non-GAAP measure 316,679 7,491 (39,664) 39,664 $ 250,029 7,491 39,664 (14,635) 53,823 1,863 9,331 (3,500) 196,206 5,628 30,333 (11,135) 1,669 131 625,717 363,834 282,549 61,517 221,032 1,800 Net income attributable to shareholders $ 194,537 $ 5,497 $ Net income per diluted share (3) $ 3.54 $ 0.10 $ 30,333 0.55 $ (11,135) $ $ (0.20) $ Effective tax rate (4) 21.5% 219,232 3.98 21.8% Operating expense Operating income Income before income taxes Provision for income taxes Consolidated net income Noncontrolling interests Net income attributable to shareholders Net income per diluted share (3) Effective tax rate (4) Three months ended December 31, 2022 Intangible Amortization Restructuring & Integration charges (1) Expense $ Reported GAAP measure $ 683,399 522,596 470,780 116,719 354,061 4,659 $ 349,402 $ 5.66 24.8% Other (2) (8,170) (2,714) 8,170 2,714 8,170 2,714 2,056 472 6,114 2,242 127 5,987 0.10 Non-GAAP measure $ 672,515 533,480 (8,356) 473,308 (2,003) 117,244 (6,353) 2,242 $ (6,353) 0.04 $ (0.10) $ $ 356,064 4,786 351,278 5.69 24.8% Three months ended September 30, 2023 Reported GAAP measure Operating expense Operating income Income before income taxes Provision for income taxes Consolidated net income Noncontrolling interests $ 639,514 340,083 Expense $ (7,863) Intangible Amortization Restructuring & Integration charges (1) $ Other (2) Non-GAAP measure 7,863 (31,359) 31,359 600,292 379,305 252,282 7,863 31,359 6,159 297,663 52,241 1,959 7,321 1,476 62,997 200,041 5,904 24,038 4,683 234,666 1,382 138 1,520 Net income attributable to shareholders $ Net income per diluted share (3) Effective tax rate (4) $ 198,659 3.53 $ 5,766 $ 24,038 $ 4,683 $ 233,146 0.10 0.43 $ 0.08 $ 4.14 20.7% 21.2% MGW (1) Includes charges to increase the environmental remediation reserves in the amount of $0.05 million for fourth quarter of 2023, $2.5 million for the fourth quarter of 2022, and $20.9 million for third quarter of 2023. (2) Other includes (gain) loss on investments, net. (3) The sum of the components for non-GAAP diluted EPS may not agree to totals, as presented, due to rounding. (4) The items as shown in this table, represent the reconciling items for the tax rate as reported by GAAP measure and as a non- GAAP measure. 39#40Full-year GAAP to non-GAAP reconciliation ($ in thousands, except per share data) Year ended December 31, 2023 Intangible Operating expense Operating income Income before income taxes Provision for income taxes Consolidated net income Reported GAAP measure $ 2,677,855 1,471,164 1,164,354 Amortization Expense Restructuring & Integration charges (1) Non-recurring tax items Other (2) $ (31,242) (83,916) 31,242 83,916 31,242 83,916 254,991 7,824 19,969 909,363 23,418 63,947 (942) 942 (19,284) (4,614) (14,670) Noncontrolling interests 5,858 539 Net income attributable to shareholders 903,505 22,879 $ 63,947 942 $ (14,670) Net income per diluted share (3) $ 15.84 0.40 $ 1.12 0.02 $ (0.26) $ Effective tax rate (4) 21.9% Operating expense Operating income Income before income taxes Provision for income taxes Consolidated net income Reported GAAP $ 2,768,131 2,068,494 1,884,150 448,992 Noncontrolling interests Year ended December 31, 2022 (1) Includes charges to increase the environmental remediation reserves in the amount of $23.3 million for the year ended Non-GAAP measure December 31, 2023 and $2.5 million for the 2,562,697 year ended December 31, 2022. 1,586,322 1,260,228 277,228 983,000 6,397 (2) Other includes (gain) loss on investments, net. (3) The sum of the components for non-GAAP 976,603 diluted EPS may not agree to totals, as presented, due to rounding. 17.12 22.0% (4) The items as shown in this table, represent the reconciling items for the tax rate as reported by GAAP measure and as a non- GAAP measure. Intangible Amortization measure Expense Restructuring & Integration charges (1) Non-recurring tax items Other (2) $ (34,692) (13,741) Non-GAAP measure $ 2,719,698 34,692 13,741 2,116,927 34,692 13,741 8,848 2,931 1,435,158 25,844 10,810 8,274 525 25,319 $ 10,810 $ $ 2,149 21.80 0.39 0.17 $ 0.03 2,857 708 461,479 2,149 1,473,961 8,799 1,465,162 $ 22.38 1,935,440 A A Net income attributable to shareholders Net income per diluted share (3) Effective tax rate (4) $ 1,426,884 $ 23.8% MGW 23.8% 40#41Full-year GAAP to non-GAAP reconciliation (cont.) ($ in thousands, except per share data) Year ended December 31, 2021 Operating expense Operating income Income before income taxes Provision for income taxes Consolidated net income Noncontrolling interests Net income attributable to shareholders Reported GAAP measure $ 2,645,543 Intangible Amortization Expense $ (36,930) Restructuring & Integration charges AFS Reserves & $ (10,911) Recoveries $ Digital Inventory $ Non-recurring tax items $ Impairments Impact of Wind Down Other (1) Non-GAAP measure $ (4,482) $ $ 1,556,822 36,930 10,911 4,482 1,436,374 36,930 10,911 4,482 325,906 9,457 2,341 1,078 1,110,468 27,473 8,570 3,404 (12,770) (3,073) (9,697) 2,271 590 2,593,220 1,609,145 1,475,927 335,709 1,140,218 2,861 $ 1,108,197 $ 26,883 $ 8,570 $ $ $ $ 3,404 $ $ (9,697) $ 1,137,357 Net income (loss) per diluted share (7) $ Effective tax rate 15.10 22.7% $ 0.37 $ 0.12 $ $ $ $ 0.05 $ $ (0.13) $ 15.50 22.7% Year ended December 31, 2020 Operating expense Operating income Income before income taxes Provision for income taxes Consolidated net income Noncontrolling interests Net income attributable to shareholders Reported GAAP measure $ 2,296,619 894,511 Intangible Amortization Expense Restructuring & Integration charges AFS Reserves & Recoveries Digital Inventory Non-recurring tax items (2) $ (38,417) $ 38,417 (13,288) 13,288 $ 1,796 $ (1,796) Impairments (3) (7,223) 7,223 Impact of Wind Down $ 3,524 (14,728) Other (1) $ Non-GAAP measure 759,259 38,417 13,288 (1,796) 7,223 (14,704) 172,795 9,866 1,301 (432) 586,464 28,551 11,987 (1,364) 1,272 (1,272) 2,356 4,867 (3,143) (11,561) (7,117) (1,717) (5,400) 2,026 568 $ 584,438 $ 27,983 $ 11,987 $ (1,364) $ $ (1,272) $ 4,867 $ (11,561) $ (5,400) $ 609,678 Net income (loss) per diluted share (7) $ Effective tax rate 7.43 $ 22.8% 0.36 $ 0.15 $ (0.02) $ $ (0.02) $ 0.06 $ (0.15) $ (0.07) $ 7.75 22.9% 2,243,011 936,915 794,570 182,298 612,272 2,594 2,263,821 1,056,785 846,424 (1) Other includes gain on investments, net and pension settlement gain. (2) Includes income tax (expense) benefit related to legislation changes and other non- recurring tax adjustments. (3) Impairments includes $7,223 in impairment charges related to various other long-lived assets unrelated to the personal computer and mobility asset disposition business. (4) Impairments include goodwill impairments of $570,175, tradename impairments of $46,000, and $7,621 in impairment charges related to various other long-lived assets. (5) Amounts for restructuring, integration, and other charges, identifiable intangible asset amortization, loss on disposition of businesses, net, certain tax adjustments, and impairments related to the personal computer and mobility asset disposition business are included in "impact of wind down". (6) Other includes loss on disposition of businesses, net, gain (loss) on investments, net, interest related to uncertain tax position related to the Tax Act and pension settlement. (7) For the year ended December 31, 2019, the non-GAAP net income per diluted share calculation includes 752 thousand shares that were excluded from the GAAP net income per diluted share calculation. Additionally, in all periods presented the sum of the components for diluted EPS, as adjusted may not agree to totals, as presented, due to rounding. Year ended December 31, 2019 Operating expense Operating income Income before income taxes Provision for income taxes Consolidated net income Noncontrolling interests Net income attributable to shareholders Reported GAAP measure $ 3,190,685 107,696 Intangible Amortization Expense Restructuring & Integration charges $ (42,383) $ 42,383 (78,429) 78,429 AFS Write off Digital Inventory $ (16,169) $ Non-recurring tax items (2) Impact of Wind Impairments (4) Down (5) Other (6) Non-GAAP measure $ (623,796) $ (164,219) $ (1,868) $ 18,037 22,332 623,796 162,244 1,868 (111,830) 42,383 78,429 18,037 22,332 623,796 162,356 10,921 88,338 11,913 19,540 4,339 5,390 (200,168) 30,470 58,889 13,698 16,942 (1,696) 1,696 64,246 559,550 12,631 149,725 750 205,451 10,171 3,919 558 640,973 4,477 $ (204,087) 29,912 $ 58,889 13,698 $ 16,942 $ 1,696 $ 559,550 $ 149,725 $ 10,171 $ 636,496 Net income (loss) per diluted share (7) $ Effective tax rate (2.44) $ -79.0% 0.36 $ 0.70 $ 0.16 $ 0.20 $ 0.02 $ 6.70 $ 1.79 $ 0.12 $ 7.55 24.3% NOW 41#42Return on working capital reconciliation ($ in thousands) MGW Numerator: Consolidated operating income, as reported Annualized consolidated operating income Non-GAAP consolidated operating income Annualized non-GAAP consolidated operating income Quarter Ended December 31, 2023 EA SA (unaudited) 316,679 x4 1,266,716 December 31, 2022 (unaudited) 522,596 x4 2,090,384 SA 363,834 x4 1,455,336 533,480 x4 $ 2,133,920 Denominator: Accounts receivable, net Inventories Less: Accounts payable Working capital 12,238,073 12,322,717 5,187,225 5,319,369 10,070,015 10,460,419 7,355,283 7,181,667 Return on working capital 17.2% 29.1% Return on working capital (Non-GAAP) 19.8% 29.7% 42#43Return on invested capital reconciliation ($ in thousands) Numerator: Consolidated operating income, as reported Equity in earnings of affiliated companies (1) Less: Noncontrolling interests (1) Consolidated operating income, as adjusted Less: Tax effect (2) After-tax consolidated operating income, as adjusted Annualized after-tax consolidated operating income, as adjusted Non-GAAP consolidated operating income Equity in earnings of affiliated companies Less: Noncontrolling interests (1) (1) Non-GAAP consolidated operating income, as adjusted Less: Tax effect (3) After-tax non-GAAP consolidated operating income, as adjusted Quarter Ended December 31, 2023 December 31, 2022 $ 316,679 2,034 1,669 317,044 522,596 2,938 4,659 520,875 68,590 248,454 130,298 390,577 x4 x4 993,816 1,562,308 +A $ 363,834 533,480 2,034 1,800 2,938 4,786 364,068 531,632 79,681 132,895 284,387 398,737 x4 x4 1,137,548 $ 1,594,948 Annualized after-tax non-GAAP operating income, as adjusted Denominator: Average short-term borrowings, including current portion of long- term debt (4) $ 1,621,308 Average long-term debt (4) 2,384,277 Average total equity (4) 5,715,391 Average cash and cash equivalents Invested capital Return on invested capital Return on invested capital (Non-GAAP) Now 275,673 9,445,303 10.5% 12.0% 597,202 3,184,995 5,457,020 255,450 8,983,767 17.4% 17.8% (1) Operating income, as reported, and non- GAAP operating income is adjusted for noncontrolling interest and equity in earnings of affiliated companies to include the pro-rata ownership of non-wholly owned subsidiaries. (2) The tax effect is calculated by applying the effective tax rate for the three months ended December 31, 2023 and December 31, 2022 to consolidated operating income, as adjusted. The tax rate is adjusted to exclude the impacts of interest expense, gain on investments, net, and employee benefit plan expense, net. (3) The tax effect is calculated by applying the non-GAAP effective tax rate for the three months ended December 31, 2023 and December 31, 2022 to non-GAAP consolidated operating income, as adjusted. The tax rate is adjusted to exclude the impacts of interest expense and employee benefit plan expense, net. (4) The quarter ended average is based on the addition of the account balance at the end of the most recently-ended quarter to the account balance at the end of the prior quarter and dividing by two. 43#44Annual ROWC and ROIC reconciliation ($ in thousands) Numerator: 2023 2022 2021 2020 2019 Consolidated operating income, as reported Equity in earnings of affiliated companies (1) Less: Noncontrolling interests (1) Consolidated operating income, as adjusted Less: Tax effect (2) $ 1,471,164 $ 2,068,494 $ 6,407 7,664 1,556,822 $ 3,508 894,511 $ (531) 5,858 1,471,713 $ 323,586 After-tax consolidated operating income, as adjusted Non-GAAP consolidated operating income Equity in earnings of affiliated companies Less: Noncontrolling interests (1) Non-GAAP consolidated operating income, as adjusted $ 1,148,127 $ 8,274 2,067,884 $ 494,690 1,573,194 $ 2,271 2,026 1,558,059 $ 354,044 1,204,015 $ 891,954 $ 203,511 688,443 $ 107,696 (2,765) 3,919 101,012 (82,903) 183,915 $ 1,586,322 $ 2,116,927 $ (1) 6,407 7,664 6,397 Less: Tax Effect (3) After-Tax non-GAAP consolidated operating income, as adjusted $ 1,586,332 $ 350,378 1,235,954 $ 8,799 2,115,792 $ 506,497 1,609,295 $ 1,609,145 $ 3,508 2,271 1,610,382 $ 366,746 1,243,636 $ 936,915 (531) 2,026 934,358 $ 214,779 719,579 $ 1,056,785 (2,765) 3,919 1,050,101 256,112 793,989 Denominator: (4) Average short-term borrowings, including current portion of long-term debt (4) Average long-term debt $ 892,986 $ 504,094 $ 3,068,681 2,852,348 Average total equity (4 Less: Average cash and cash equivalents (4) Invested Capital Return on invested capital Return on invested capital (non-GAAP) ($ in thousands) Numerator: Consolidated operating income, as reported Non-GAAP consolidated operating income (4) 5,659,361 5,416,410 322,696 $ 2,034,077 5,233,267 255,538 $ 2,231,394 4,850,535 234,840 240,296 256,702 $ 9,386,188 $ 8,532,556 $ 7,333,338 $ 261,513 7,075,954 $ 270,475 3,110,940 5,062,226 338,714 8,104,927 12.23% 13.17% 18.44% 18.86% 16.42% 16.96% 9.73% 10.17% 2023 2022 2021 2020 2019 Denominator: Accounts receivable, net (5) Inventories (5) Less: Accounts payable (5) Working Capital Return on working capital Return on working capital (non-GAAP) MW 2.27% 9.80% (1) Operating income, as reported, and non- GAAP operating income is adjusted for noncontrolling interest and equity in losses of affiliated companies to include the pro-rata ownership of non-wholly owned subsidiaries. (2) The tax effect is calculated by applying the effective tax rate for the years ended to consolidated operating income, as adjusted. The tax rate is adjusted to exclude the impacts of interest expense, gain on investments, net, and employee benefit plan expense, net. (3) The tax effect is calculated by applying the non-GAAP effective tax rate for the years ended to non-GAAP consolidated operating income, as adjusted. The tax rate is adjusted to exclude the impacts of interest expense and employee benefit plan expense, net. (4) The year ended average is based on the addition of the account balance at the end of the five most recently-ended quarters and dividing by five. (5) This amount is an average balance based on the addition of the account balance at the end of the five most recently-ended quarters and dividing by five. $ $ +A 1,471,164 $ 1,586,322 $ 2,068,494 $ 2,116,927 $ 1,556,822 $ 1,609,145 $ 894,511 $ 936,915 $ 107,696 1,056,785 11,377,422 $ 5,458,019 9,515,699 11,227,736 $ 4,827,278 $ 7,319,742 $ 9,578,175 6,476,839 $ 9,401,688 $ 3,647,146 8,046,357 5,002,477 $ 8,283,552 $ 3,351,088 7,092,575 8,229,824 3,638,159 6,627,807 4,542,065 $ 5,240,176 20.10% 31.94% 31.12% 19.69% 2.06% 21.67% 32.68% 32.17% 20.63% 20.17% 44#45Non-GAAP segment reconciliation ($ in thousands) 12/31/2022 4/1/2023 Quarter Ended 7/1/2023 9/30/2023 12/31/2023 Global components operating income, as reported $442,702 $417,539 $381,314 $379,053 $281,260 Intangible assets amortization expense 6,702 6,745 6,679 6,640 6,436 Global components non-GAAP operating income $449,404 $424,284 $387,993 $385,693 $287,696 Global ECS operating income, as reported Intangible assets amortization expense $154,775 $81,099 $86,228 $54,624 $145,053 1,468 1,235 1,229 1,223 1,055 Global ECS non-GAAP operating income $156,243 $82,334 $87,457 $55,847 $146,108 MGW 45