Avnet 2007 Annual Report Download - page 3

Download and view the complete annual report

Please find page 3 of the 2007 Avnet annual report below. You can navigate through the pages in the report by either clicking on the pages listed below, or by using the keyword search tool below to find specific information within the annual report.

Page out of 92

  • 1
  • 2
  • 3
  • 4
  • 5
  • 6
  • 7
  • 8
  • 9
  • 10
  • 11
  • 12
  • 13
  • 14
  • 15
  • 16
  • 17
  • 18
  • 19
  • 20
  • 21
  • 22
  • 23
  • 24
  • 25
  • 26
  • 27
  • 28
  • 29
  • 30
  • 31
  • 32
  • 33
  • 34
  • 35
  • 36
  • 37
  • 38
  • 39
  • 40
  • 41
  • 42
  • 43
  • 44
  • 45
  • 46
  • 47
  • 48
  • 49
  • 50
  • 51
  • 52
  • 53
  • 54
  • 55
  • 56
  • 57
  • 58
  • 59
  • 60
  • 61
  • 62
  • 63
  • 64
  • 65
  • 66
  • 67
  • 68
  • 69
  • 70
  • 71
  • 72
  • 73
  • 74
  • 75
  • 76
  • 77
  • 78
  • 79
  • 80
  • 81
  • 82
  • 83
  • 84
  • 85
  • 86
  • 87
  • 88
  • 89
  • 90
  • 91
  • 92

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. With sales of $15.68 billion in fiscal 2007, Avnet creates
a vital link in the technology supply chain that connects over 300 of the world’s leading electronic component and
computer product manufacturers and software developers as a value-added source for multiple products for a global
customer base of over 100,000 original equipment manufacturers (“OEMs”), electronic manufacturing services
(“EMS”) providers, original design manufacturers (“ODMs”), and value-added resellers (“VARs”). Avnet dis-
tributes 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 advisory services.
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”). Each operating group has its own management team that is led by a group president and includes regional
presidents and senior executives within the operating group that manage the various functions within the businesses.
Each operating group also has distinct financial 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
efforts within each operating group and to enhance each operating group’s ability to work with its customers and
suppliers, generally along more specific 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.
Avnet’s operating groups and their sales are as follows:
Region
Fiscal 2007
Sales
Percentage
of Sales
(Millions)
EM Americas ............................................... $ 3,722.7 23.7%
EM EMEA ................................................ 3,306.3 21.1
EM Asia .................................................. 2,650.8 16.9
Total EM ................................................ 9,679.8 61.7
TS Americas ............................................... 4,103.5 26.2
TS EMEA ................................................. 1,579.4 10.1
TS Asia ................................................... 318.4 2.0
Total TS ................................................. 6,001.3 38.3
Total Avnet ................................................ $15,681.1 100.0%
A description of each operating group and their 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”) on
behalf of over 300 of the world’s leading electronic component manufacturers. EM markets and sells its products
and services to a diverse customer base spread across end-markets including automotive, communications,
3