Avnet, Inc.

Excluding FX (1)

Electronics Marketing Total

Excluding FX (1)

Americas

EMEA

Excluding FX (1)

Asia

Technology Solutions Total

Excluding FX (1)

Americas

EMEA

Excluding FX (1)

Asia

Avnet, Inc. quarterly revenue of $6.3 billion declined 5.9% year over year on a reported basis.

On a sequential basis, pro forma sales decreased 7.2% (down 6.6% excluding the impact of changes in foreign currency exchange rates – “constant dollars”) which is at the low end of normal seasonality of down 4% to 7% in the March quarter. Both operating groups were at the low end of normal seasonality which was expected considering the current market and economic environment.

Year-over-year pro forma sales were down 8.1% (down 7.1% in constant dollars) primarily due to a double-digit decline in the EMEA region at both operating groups as a result of weaker market conditions as compared with a year ago.

Electronics Marketing (EM) quarterly revenue was $3.8 billion, a year-over-year decrease of 4.3%, and a sequential increase of 4.5% on a reported basis (up 5.5% in constant dollars).

Pro forma revenue was up 3.0% sequentially (up 3.9% in constant dollars), at the low end of normal seasonality of up 4% to 7% in the March quarter. The inventory correction that caused sequential revenue growth to be below normal seasonality for the past two quarters appears to be nearing an end as the book to bill continued to improve through the quarter in all three regions and was at parity for the quarter.

Pro forma year-over-year revenue growth was down 10.0% (down 8.9% in constant dollars) as the year ago quarter represented the fifth consecutive quarter of double-digit pro forma growth driven by the V-shaped recovery in electronic components. EMEA and Asia experienced double-digit year-over-year organic revenue declines while the Americas was essentially flat.

Technology Solutions (TS) revenue on a reported basis declined 8.1% year over year (down 7.3% in constant dollars) to $2.5 billion primarily due to a decline in the Americas and EMEA.

Double-digit year-over-year growth in industry standard servers and professional services was offset by a decline in microprocessors and other computing components.

Pro forma revenue declined 5.2% year over year (down 4.3% in constant dollars) driven primarily by a double-digit decline in the EMEA region due to general economic conditions impacting IT spending and, to a lesser extent, some portfolio actions around revenue selection.

Pro forma revenue decreased 19.0% sequentially (down 18.8% in constant dollars), which is within the range of typical seasonality of down 16% to 20%.

Gross Profit

Gross Profit Margin

Gross profit dollars were $754 million, down 4.2% year over year and down 3.9% sequentially.

Gross profit margin of 12.0% was up 29 basis points sequentially primarily due to business mix as EM, which has higher gross profit margins than TS, represented a larger percentage of total sales in the March quarter.

TS gross profit margin was flat sequentially and increased 80 basis points year over year with EMEA and the Americas driving the improvement. In the EMEA region, gross profit margin improved over 100 basis points year over year for the third consecutive quarter due to the focus on improving the overall performance within this region including revenue selection.

EM gross profit margin was flat sequentially as the positive impact of a geographic mix shift to the higher gross profit higher margin EMEA region was offset by a decline in the Americas embedded business which benefited from a temporary lift in margins in hard disk drives (“HDD”) in the December quarter. On a year-over-year basis, EM gross profit margin declined 27 basis points primarily due to a geographic mix shift as the EMEA region represented a smaller percentage of total sales and, to a lesser extent, the transfer of the lower gross profit margin computing components from TS in the first fiscal quarter.

Selling, General and Administrative Expenses

Selling, General and Administrative Expenses as % of Gross Profit

Selling, General and Administrative Expenses as % of Sales

Selling, general and administrative expenses (“SG&A expenses”) declined 2.1% year over year to $518 million, and were essentially flat with the December quarter on a reported basis.

On a pro forma basis, excluding currency, SG&A expenses declined 3.8%, or $21 million, as compared with a year ago and declined 1.8%, or $9.5 million, sequentially benefitting somewhat from the restructuring actions that have been taken in fiscal 2012.

SG&A expenses as a percentage of gross profit increased 144 basis points year over year as a 437 basis point decline at TS was offset by an increase at EM which had a near record low for this metric in the year ago quarter when the V-shaped recovery in components was near its peak. On a sequential basis, SG&A expenses as a percentage of gross profit increased 262 basis points as the typical seasonal increase which occurs at TS after its strong December quarter was somewhat offset by a 216 basis point decline at EM.

GAAP Operating Income

Adjusted Operating Income (1)

Adjusted Operating Income Margin (1)

Electronics Marketing (EM)

Operating income

Operating income margin

Technology Solutions (TS)

Operating income

Operating income margin

Adjusted operating income margin at the enterprise level of 3.75% declined 10 basis points and 21 basis points year over year and sequentially, respectively.

EM operating income margin decreased 56 basis points year over year and increased 31 basis points sequentially to 5.17%, within management’s target range of 5.0% to 5.5%. For the first nine months of fiscal 2012, EM’s operating income margin of 5.0% was at the low end of the target range even though the supply chain inventory correction had negatively impacted revenue growth during the first half of the fiscal year.

The year-over-year decline in operating income margin was consistent across all three regions as the year ago quarter was near recent peak levels, and above the target range, as the V-shaped recovery in electronic components was nearing an end.

The sequential improvement is primarily due to a significant improvement in the EMEA region driven by double-digit sales growth which was partially offset by a decline in the Americas region which had benefited from a temporary lift in margins in HDDs in the December quarter.

TS operating income margin increased 60 basis points year over year due to the continued focus on improving profitability and decreased 115 basis points sequentially, which is in line with the typical seasonal decline coming off the strong December quarter.

The most significant year-over-year improvement was in the EMEA region where there has been a continuing heavy emphasis on performance improvement and restructuring initiatives to accelerate progress towards our long-term goals. The Americas had an improvement in year-over-year operating income margin as well due to improved profitability across several product lines.

Interest Expense

Other Income (expense)

GAAP Income Taxes

Adjusted Income Taxes (1)

GAAP Effective Tax Rate

Adjusted Effective Tax Rate (1)

The adjusted effective tax rate was 29.5% in the third quarter as compared with 28.0% last year.

The GAAP effective tax rate declined 259 basis points year over year to 26.6% as the current quarter was favorably impacted by favorable audit settlements, releases of valuation allowances and releases of reserves.

GAAP Net Income

Adjusted Net Income (1)

GAAP Diluted EPS

Adjusted Diluted EPS (1)

Adjusted net income for the quarter was $152 million, or $1.03 per share on a diluted basis. This represents a year-over-year decrease in adjusted net income of 10.7% and a decrease in adjusted EPS of 6.4%. Sequentially, adjusted net income decreased 11.8% and adjusted EPS decreased 10.4% with approximately half of the $0.12 decline in EPS attributable to the temporary lift in margins in HDDs that positively impacted the December quarter.

GAAP net income for the quarter was $148 million, or $1.00 per share on a diluted basis. Included in GAAP net income is a total of $13.7 million after tax and $0.10 per share on a diluted basis related to restructuring, integration and other charges partially offset by a gain on bargain purchase of $4.5 pre- and after tax, or $0.03 per share on a diluted basis, related to the acquisition of Unidux Electronic Limited, a Singapore publicly traded company and $5.2 million of favorable tax adjustments, or $0.04 per share on a diluted basis, primarily related to the combination of favorable audit settlements, certain reserve releases and the release of a valuation allowance on deferred assets which were determined to be realizable.

Return on Working Capital (ROWC) (1)

Return on Capital Employed (ROCE) (1)

Return on working capital (ROWC) for the quarter was 24.1%, a decrease of 237 basis points year over year and 195 basis points sequentially.

The year-over-year decrease was primarily due to the impact on profitability and working capital velocity from the decline in revenue at EM as a result of the supply chain’s inventory correction. The decline at EM was partially offset by a 564 basis point improvement at TS due to the continued focus on profitability and the benefits of restructuring activities noted above.

ROWC decreased 195 basis points sequentially as the typical decline at TS after its seasonally strong December quarter was partially offset by a 379 basis point improvement at EM which experienced both operating income margin and working capital velocity improvement sequentially. Through the first nine months of fiscal 2012, ROWC at TS is 520 basis points above the comparable period in fiscal 2011 as TS continues to benefit from the restructuring initiatives in underperforming parts of the portfolio.

Return on capital employed (ROCE) of 12.8% was down 226 basis points from the year ago quarter and decreased 146 basis points sequentially.

Working Capital (1)

Working Capital Velocity (1)

Working capital increased $104 million, or 2.7% year over year due primarily to the impact of acquisitions. On a sequential basis, working capital increased $210 million or 5.7% due to a combination of higher organic working capital, acquisitions and the impact of foreign currency translation. The sequential increase in working capital was driven by a $330 million, or 9.3% decrease in accounts payable, partially offset by a decline in accounts receivable and inventory. In the March quarter, inventory declined $24 million sequentially in reported dollars and $82 million excluding the impact of acquisitions and foreign currency with EM contributing to 54%, or $44 million of the sequential decline.

Working capital velocity decreased 0.14 turns sequentially and declined 0.44 turns when compared with the year ago quarter. The sequential decline was primarily driven by the seasonal decline at TS after its strong December quarter partially offset by a 0.46 increase at EM.

Cash flow from operations was $24 million for the quarter as net income adjusted for non-cash items was partially offset by the increase in working capital related to the decline in accounts payable. On a rolling four quarter basis, cash flow generated from operations was $551 million.

Cash and cash equivalents at the end of the quarter was $940 million; net debt (total debt less cash and cash equivalents) was $1.18 billion.

During the quarter, 710,000 shares were repurchased under the recently authorized $500 million share repurchase program for an aggregate cost of $22.9 million. Since the program started in mid-August 2011 through the end of the third quarter; 8.77 million shares have been repurchased for an aggregate cost of $248.8 million.

ROWC is defined as annualized operating income, excluding restructuring, integration and other items, divided by the sum of the monthly average balances of receivables and inventory less accounts payable.

ROCE is defined as annualized, tax effected operating income, excluding restructuring, integration and other items, divided by the monthly average balances of interest-bearing debt and equity (including the impact of restructuring, integration, impairment charges and other items) less cash and cash equivalents.

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

GAAP results

Restructuring, integration and other charges

Gain on bargain purchase

Income tax adjustments

Total adjustments

Adjusted results

restructuring, integration and other charges of $18.6 million pre-tax related to cost reduction actions initiated during the third quarter and acquisition and integration charges associated with acquired businesses. The charges consisted of $6.7 million for severance, $3.1 million for facility exit costs and fixed asset write downs, $4.0 million for integration costs, $4.2 million for acquisition transaction costs, $1.4 million for other restructuring charges, and a reversal of $0.8 million to adjust prior year restructuring reserves;

a gain on the bargain purchase of $4.5 million pre- and after tax related to the acquisition of Unidux Electronics Limited (Singapore) for which the gain was not taxable; and

an income tax adjustment of $5.2 million related primarily to the combination of favorable audit settlements, certain reserve releases and the release of a valuation allowance on deferred tax assets which were determined to be realizable.

GAAP results

Restructuring, integration and other charges

Loss on investments

Income tax adjustments

Total adjustments

Adjusted results

Restructuring, integration and other charges of $16.3 million pre-tax which were incurred primarily in connection with the acquisition and integration of acquired businesses and consisted of $4.4 million pre-tax for severance, $3.3 million pre-tax for facility exit related costs, fixed asset write downs and other related charges, $8.0 million pre-tax for integration-related costs, $3.5 million pre-tax for transaction costs associated with acquisitions, $0.9 million pre-tax for other charges, and a reversal of $3.8 million pre-tax to release liabilities associated with a prior acquisition and to adjust prior year restructuring reserves;

Loss on investments of $6.3 million pre-tax related to the write down of investments in smaller technology start-up companies; and

Income tax adjustments of $3.0 million primarily related to uncertainty surrounding deferred tax assets, additional transfer pricing exposure and audit settlements.

Q1 Fiscal 2012

Q2 Fiscal 2012

Q3 Fiscal 2012

YTD Fiscal year 2012

Q1 Fiscal 2011

Q2 Fiscal 2011

Q3 Fiscal 2011

Q4 Fiscal 2011

Fiscal year 2011

Acquired Business

Operating Group

Acquisition Date

Unidux

Broadband

Eurotone

Center Cell

itX Group Ltd

Amosdec

Prospect Technology

JC Tally Trading & subsidiary

DE2

Round2 Tech

Unidux Electronics Limited (Singapore)

Canvas Systems

Pinnacle Data Systems

Acquisition of controlling interest in a non-wholly owned entity

Sales

Sales, annualized

Adjusted operating income (1)

Adjusted operating income, annualized

Adjusted effective tax rate (2)

Adjusted operating income, net after tax

Average monthly working capital (3)

Accounts receivable

Inventory

Accounts payable

Average working capital

Average monthly total capital (3)

ROWC = (b) / (d)

WC Velocity = (a) / (d)

ROCE = (c ) / (e)