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PART I
Item 1. Business
Avnet, Inc., incorporated in New York in 1955, together with its subsidiaries, (the ""Company'' or
""Avnet'') is one of the world's largest industrial distributors, based on sales, of electronic components,
enterprise network and computer equipment and embedded subsystems with sales in Ñscal 2004 of
$10.24 billion. Avnet creates a vital link in the technology supply chain that connects over 250 of the world's
leading electronic component and computer product manufacturers and software developers as a single source
for multiple products for a global customer base of over 100,000 original equipment manufacturers
(""OEMs''), contract manufacturers, original design manufacturers, value-added resellers (""VARs'') and end-
users. 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 conÑguration, and supply chain advisory services.
Organizational Structure
During the Ñrst quarter of Ñscal 2004, the Company combined its Avnet Computer Marketing (""CM'')
and Avnet Applied Computing (""AC'') operating groups into one computer products and services business
called Avnet Technology Solutions (""TS''). This combination was part of the Company's continued eÅorts to
strengthen its market leadership position, streamline its business and further leverage cost synergies resulting
from the combination. In light of the similarities of the logistics operations and related functions of CM and
AC, the consolidation of certain of the units' operating facilities, equipment and processes has yielded cost
savings while also stimulating new market opportunities for the combined group.
As a result of the formation of TS, Avnet Electronics Marketing (""EM'') and TS represented the
Company's two operating groups beginning in Ñscal 2004, both having operations in each of the three major
economic regions of the world: the Americas; Europe, the Middle East and Africa (""EMEA''); and Asia.
Each operating group has its own management team that is led by a group president and includes senior
executives within the operating group that manage the accounting and Ñnance, facilities, warehousing and
other administrative tasks for each operating group as a whole. Each operating group also has distinct Ñnancial
reporting that is evaluated at the corporate level and 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 eÅorts within each operating group and to
enhance each operating group's ability to work with its customers and suppliers, generally along more speciÑc
product lines or based upon geography. However, each division relies heavily on the support services that are
provided centrally within each operating group and centralized support at the corporate level.
A summary of each operating group, and the divisions included in each group, is discussed below. Further
Ñnancial information by operating group and geography are also contained in Note 16 to the consolidated
Ñnancial statements appearing in Item 15 of this Report.
Avnet Electronics Marketing (""EM'')
EM markets and sells semiconductors and interconnect, passive and electromechanical devices
(""IP&E''), and also oÅers an array of value-added services to its customers, such as supply-chain
management, engineering design, inventory replenishment systems, connector and cable assembly and
semiconductor programming. EM markets and sells its products and services to a diverse customer base
spread across end-markets including communications, computer hardware and peripheral, industrial and
manufacturing, medical equipment, military and aerospace.
EM markets and sells products on behalf of over 250 of the world's leading electronic component
manufacturers. Suppliers of components to EM include Analog Devices, Freescale Semiconductor, InÑneon
Technologies, Intel, Maxim/Dallas, National Semiconductor, ON Semiconductor, Philips Components,
Texas Instruments and Xilinx. EM sells to multinational, regional and local OEMs and contract manufactur-
ers including Alcatel, Benchmark, Celestica, General Electric, Hon Hai Precision, Jabil, Plexus, Sanmina-
SCI, Siemens and Solectron.
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