Avnet 2000 Annual Report Download - page 5

Just as acquisitions allow us to expand globally, our strategic alliances – along with the
development of Avnet’s own Web sites, Intranet and extranets – allow us to expand our
position in the greater technology marketspace. The Company continues to be
recognized as an information technology leader. The Gartner Group predicts that, by the
latter half of the decade, successful enterprises will have integrated the Internet into
their processes such that e-business will be totally embedded in all activities. Avnet
expects to lead the way as the economy shifts from the traditional brick-and-mortar
environment to the click-and-mortar model of the 21st century.
To that end, FY’00 saw the addition of four new e-business alliances, with more on the
horizon. By taking equity positions in dot-com companies which offer new business models
complementary to our own, Avnet participates in, and can even help direct the development
of, important hubs, portals and links on the Web. Avnet is delivering new value through
the Internet. We’re making it easier than ever for our customers and suppliers to do
business with us.
As we continuously improve our current business models and seek out new ones to
further expand our business, the breadth and depth of knowledge of our 12-member
board of directors is instrumental. For FY’01, we welcome two new members: Ray M.
Robinson, president of AT&T’s southern region; and Gary L. Tooker, who served as
Motorola’s CEO, chairman and vice chairman of the board before retiring at the end of
1999. Collectively, Robinson and Tooker bring Avnet more than 70 years of experience,
through distinguished careers with highly respected global corporations. We will be
saying goodbye to Frederick Wood and Joseph F. Caligiuri, who are retiring. Their insight
has been invaluable.
The insight of our board, the expertise of our employees and the industry knowledge
of our leaders will guide us as we tackle new challenges and opportunities in the
upcoming fiscal year. Around the world, talented, technically skilled employees are at
a premium. Our human resources departments are focused on attracting and retaining
the best people, and on creating employee development programs that keep them
motivated and their skills contemporary.
In FY’01, we will focus on Avnet’s return on capital employed. By insisting that all our
operations generate adequate returns on capital as well as sales, we are, in effect,
planning for Avnet’s future – a future that will bring more innovation to our Company,
help us counteract the cyclicality inherent in the electronic components industry, and
subsequently, increase our value to our shareholders.
With the positive business environment, the excellent performance of our operating
groups and our aggressive acquisition strategy, Avnet is on a $12 billion-plus sales run
rate for FY’01, with the opportunity to achieve more through organic growth and
acquisition. Our twin engines are primed – good, old-fashioned internal growth driven
by the strategic planning and solid execution that is our culture, and continued
acquisitions/ alliances around the world. This combination makes for very exciting
prospects in the new millennium.
In FY’01, it continues to be Avnet’s vision to deliver the highest value relationships to
our customers, suppliers, employees and shareholders globally. I personally invite you to
join in and come along for the ride.
Roy Vallee
Chairman and Chief Executive Officer
By insisting all our operations
generate adequate returns on
capital as well as sales, Avnet is
planning for its future – one that
will bring more innovation, coun-
teract the cyclicality inherent in
the electronic components
industry and increase
shareholder value.
AVNET, INC. FY 2000
SALES BY PRODUCT
% of Avnet
Semiconductors 64%
Computer Products 20%
Interconnect 7%
Passives 3%
Embedded Systems 3%
Electromechanical 2%
Other 1%
GLOBAL OBJECTIVES
Financial
• Exceed expectations in
creating and sustaining
shareholder value
Customers and Suppliers
• Grow profitably by executing
existing strategies and
continuously creating new
service value propositions that
differentiate Avnet in the global
technology marketspace.
Employees
• Attract, retain and continuously
develop a highly skilled,
disciplined, global workforce.
Operational Excellence
• Continuously develop and
implement world-class business
processes that maximize service,
productivity and efficiency.
Roy Vallee
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