Avnet 2002 Annual Report Download - page 15

The sales, operating income (loss) and assets of EM, CM and AC, as well as Avnet's sales and assets by
geographic area, are shown in Note 16 to the consolidated Ñnancial statements appearing in Item 14 of this
Report.
Electronics Marketing (""EM'')
EM is Avnet's largest operating group, with sales in 2002 of $4.84 billion, representing 54.3% of Avnet's
consolidated sales. EM is comprised of three regional operations: EM Americas, which had sales of
$2.62 billion in 2002, or 29.4% of Avnet's consolidated sales; EM EMEA (Europe, Middle East and Africa),
which had sales of $1.60 billion in 2002, or 17.9% of Avnet's consolidated sales; and EM Asia, which had sales
of $620.6 million in 2002, or 7.0% of Avnet's consolidated sales.
EM's business units provide core value services, which focus on the transactional needs of the traditional
electronic components distribution market, oÅering one of the industry's broadest line cards and convenient
one-stop shopping with an emphasis on responsiveness, on-time delivery and quality. Certain specialty services
are also provided by the support services business units. The business units located in the Americas, Europe
and Asia market semiconductors; interconnect, passive and electromechanical devices (""IP&E'');
RF/microwave (wireless) components; and value-added services.
EM's business unit structure is as follows:
‚ Avnet Cilicon, Avnet's semiconductor division in the Americas, focuses on the semiconductor
requirements of both customers and suppliers. To achieve this focus, the semiconductor division has
channels focused on diÅerent customers' needs, including dedicated channels to service small to
medium customers, large customer engagements, defense and aerospace customers, emerging custom-
ers and contract manufacturers.
‚ Avnet Kent is the Americas' IP&E division, a focused business unit created from the merger in June
2001 of Avnet EM's and Kent's IP&E businesses. Avnet Kent distributes electronic connectors,
electronic wire and cable, and other passive and electromechanical products and interconnect
assemblies used in assembling and manufacturing electronic products. Avnet Kent also provides value-
added services such as cable assembly, fan assembly, taping and reeling and component modiÑcation.
‚ Avnet RF & Microwave in the Americas serves the distinct needs of both customers and suppliers by
providing RF and microwave semiconductors and components from the industry's leading suppliers.
Avnet RF & Microwave provides a wide array of value-added services including hi-rel processing,
parametric assembly and RF cable assembly.
‚ In EMEA, EM goes to market with seven business units: EBV and WBC, based in Germany, which
specialize in demand creation for select semiconductor suppliers; Silica, based in the United Kingdom,
a semiconductor marketer; Avnet Time, based in the United Kingdom, a marketer of IP&E
components; BFI-Optilas, based in France, a marketer of specialty components and devices across
Europe; Avnet Israel, based in Tel Aviv, one of the largest value-added electronic components
distributors in Israel; and Avnet Kopp, one of South Africa's largest distributors of electronic and
electrical components. EM EMEA does business in 30 western and eastern European countries, South
Africa, Turkey, Egypt and Israel.
‚ EM Asia is a value-added distributor of electronic components and services in 10 Asian countries and
Australia and New Zealand. All of EM Asia's operations have access to the products and services
provided by EM globally. The 2001 acquisition of Sunrise Technology Ltd. (""Sunrise'') signiÑcantly
enhanced EM's presence in Asia, especially the Peoples' Republic of China (""PRC''). Sunrise, with
locations in Hong Kong and China, specializes in demand creation from select semiconductor
suppliers. Its focus is on demand creation with a limited line card. Avnet goes to market in China with
three focused business units Ì Sunrise, ChinaTronic and Avnet Technology.
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