Avnet 2012 Annual Report Download - page 4

Table of Contents
PART I
Item 1. Business
Avnet, Inc., incorporated in New York in 1955, together with its consolidated subsidiaries (the “Company” or “Avnet”),
is one of the
world’
s largest industrial distributors, based on sales, of electronic components, enterprise computer and storage products and embedded
subsystems. Avnet creates a vital link in the technology supply chain that connects the world’
s leading electronic component and computer
product manufacturers and software developers with a global customer base of original equipment manufacturers (“OEMs”),
electronic
manufacturing services (“EMS”) providers, original design manufacturers (“ODMs”), and value-added resellers (“VARs”).
Avnet distributes
electronic components, computer products and software as received from its suppliers or with assembly or other value added by Avnet.
Additionally, Avnet provides engineering design, materials management and logistics services, system integration and configuration, and supply
chain services that can be customized to meet the requirements of both customers and suppliers.
Organizational Structure
Avnet has two primary operating groups — Electronics Marketing (“EM”) and Technology Solutions (“TS”).
Both operating groups have
operations in each of the three major economic regions of the world: the Americas; Europe, the Middle East and Africa (“EMEA”);
and
Asia/Pacific, consisting of Asia, Australia and New Zealand (“Asia” or “Asia/Pac”).
Each operating group has its own management team led by
a group president and includes regional presidents and senior executives within the operating group who manage the various functions within the
businesses. Each operating group also has distinct financial reporting that is evaluated at the corporate level on which operating decisions and
strategic planning for the Company as a whole are made. Divisions exist within each operating group that serve primarily as sales and marketing
units to further streamline the sales and marketing efforts within each operating group and enhance each operating group’
s ability to work with
its customers and suppliers, generally along more specific product lines or geographies. However, each division relies heavily on the support
services provided by the operating group as well as centralized support at the corporate level.
Avnet’s operating groups and their sales are as follows:
A description of each operating group and its businesses is presented below. Further financial information by operating group and
geography is provided in Note 16 to the consolidated financial statements appearing in Item 15 of this Report.
Electronics Marketing
EM markets and sells semiconductors and interconnect, passive and electromechanical devices (“IP&E”)
and embedded products for the
world’
s leading electronic component manufacturers. EM markets and sells its products and services to a diverse customer base serving many
end-
markets including automotive, communications, computer hardware and peripheral, industrial and manufacturing, medical equipment,
military and aerospace. EM also offers an array of value-added services that help customers evaluate, design-
in and procure electronic
components throughout the lifecycle of their technology products and systems. By working with EM, customers and suppliers can accelerate
their time to market and realize cost efficiencies in both the design and manufacturing process.
3
Region Fiscal 2012 Sales
Percentage of
Sales
(Millions)
EM Americas
$
5,678.7
22.1
%
EM EMEA
4,203.3
16.4
EM Asia
5,051.1
19.6
Total EM
14,933.1
58.1
TS Americas
5,820.6
22.6
TS EMEA
3,205.6
12.5
TS Asia
1,748.2
6.8
Total TS
10,774.4
41.9
Total Avnet
$
25,707.5
100.0
%