Avnet 2005 Annual Report Download - page 5

2005 Annual Report
50 YEARS OF MAKING HISTORY
1985 1987 1988 1991 1993 1994 1995 1996
The outlook for Avnet Technology
Solutions is healthy, with small and
medium-sized businesses (SMBs)
continuing to invest in information
technology projects that enhance their
productivity. Distributors’ share of
information technology products and
services for SMBs is expected to grow
faster than the industry for the forseeable
future, with software and services leading
the way. Asia is particularly promising
as its businesses, industries and
governments continue to build and
improve their technology infrastructures
and we further increase our presence there.
Avnet Technology Solutions will remain
focused on selling solutions, an approach
that has clearly proven its mettle. This
model will only become more important
as microprocessors, open source software,
peripherals, hard drives and even servers
become standardized. In FY05, we
established the Industry Standard
Components Center of Excellence in
the Americas to capitalize on this trend.
Avnet Technology Solutions’ ability
to bundle industry standard products to
create solutions will accelerate its success.
The Big Picture
The technology market remains an
economic powerhouse – a $700 billion
frontier, of which distribution’s share
hovers around $120 billion – and Avnet
is at the center of it, delivering value,
creating solutions and building channels to
market for our trading partners worldwide.
We help our suppliers get their technology
sold into our large account base. We help
our customers choose the right technology
for their applications. We provide both with
supply chain and design chain solutions
that accelerate their time to market and
lower their total cost of ownership.
Although we are the No. 1 company in
revenue in our industry, there is clearly
plenty of opportunity for profit growth.
Our Global Executive Council, composed
of the Company’s senior executives and
regional presidents, is invaluable in
coordinating our international efforts and
providing insight into the nuances of each
market. Our Global Information Solutions
team leads the industry in the use of
information technology. In FY05, Avnet
ranked No. 3 on the InformationWeek 500
list of the nation’s best users of information
technology, the only company in its
industry in the top 100. Avnet’s B2B project
connecting the Company’s information
technology systems to those of its
customers ranked No. 4 on the InfoWorld
list of the 100 Best Projects of the Year.
Our challenge is to produce attractive
returns for our shareholders while creating
value for our trading partners. The Avnet
team is up to the challenge. Across the
company, dedication to customer service
excellence sets us apart from our competitors. We intend to grow
faster than the markets we serve through innovative new models and
the addition of new customers, suppliers, services and geographies.
With scale and scope advantages, a bias for return on capital and
economic profit, and a relentless focus on profitable growth,
operational excellence and people development, Avnet’s
opportunities are limitless.
It is an honor to serve the company the Avnets and thousands
of other passionate, talented and dedicated people have built.
The values upon which our legacy rests are as relevant today as
they were when Charles Avnet sold his first electronic component
in 1921. Integrity. Customer service. Accountability. Teamwork.
Innovation. A sincere thank-you to all the employees who have
come before and all who serve with me today as temporary
custodians of this amazing enterprise, to our trading partners,
who have trusted us with their business through the years, and
to our shareholders, who have allowed us to pursue our goals by
investing their capital. May those celebrating the 100th anniversary
of our incorporation in 2055 feel the same sense of pride and
optimism for the future of Avnet we do today.
Roy Vallee
Chairman & CEO
Americas
52.4%
Asia
14.4%
EMEA
33.2%
0 5 10 15 20
6.5%
16.5%
14.4%
Sales by Region
AVNET, INC.
Return on
Working Capital
FY03
FY04
FY05
Information technology is to a services provider like Avnet what research and development are to a
manufacturer – a springboard to innovation and a competitive differentiator. Avnet Global Information
Solutions’ mission control is the epicenter of the company’s information technology infrastructure.
Avnet will provide the highest
value to our customers,
suppliers, employees and
shareholders as the premier
technology marketing,
distribution and services
provider, globally.
1995 – www.avnet.com goes live 1996 – Avnet’s sales
exceed $5 billion, with
international sales of
more than $1 billion;
the company refers to
value-added services as
its core competency
1996 – Avnet Integrated Material
Services debuts as the Electronic
Marketing Group’s materials
management
specialist
division
1994 – Avnet’s
European distribution
operations surpass
$500 million in sales
1991 – Avnet begins
its modern era of
globalization with
the acquisition
of the Access
Group, a U.K.
semiconductor
distributor
1988 – Hamilton/Avnet
Computer is broken
away from the electronic
components-focused
Hamilton/Avnet
Electronics with future
CEO Roy Vallee as its
president
1987 – Avnet begins
moving its West Coast
component operations into
its new Chandler, Ariz.,
megawarehouse
1993 – Electronic
Marketing Group
semiconductor sales
exceed $1 billion
1995 – Sales from
value-added services
top $1 billion
1985 – Avnet opens its Peabody,
Mass., regional megawarehouse,
the largest electronic component
distribution facility in the nation
at the time