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 Avnet Reports Fourth Quarter and Fiscal Year 2017 Results
   Wednesday, August 09, 2017 6:45:00 AM ET

Avnet, Inc. (AVT ) today announced results for the fourth quarter and fiscal year ended July 1, 2017.

Fourth Quarter Results

-- Sales of $4.6 billion increased 16.1% year over year

-- Organic sales increased 8.4% in constant currency from the year ago quarter

-- Diluted earnings per share (EPS) from continuing operations of $0.59

-- Adjusted diluted EPS from continuing operations of $0.84

-- Cash generated from operations of $81 million

                                                                                                                                                                     Fourth Quarters Ended
                                                                                                        ------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------
                                                                                                                                                                              Organic
                                                                                                         July 1, 2017                                                                  July 2, 2016                                                                    Change                                                                            Growth
                                                                                                        ---------------                                                               ---------------                                                               ------------                                                               --------------------------
Avnet(1)                                                                             $ in millions, except per share data
----------------------------------------
Sales                                                                                                        $ 4,606.4                                                                     $ 3,969.0                                                                 16.1    %                                                                  6.8 %
   Constant Currency(2)                                                                                                                                                                                                                                              17.9    %                                                                  8.4 %
      Americas                                                                                                 1,332.2                                                                       1,105.0                                                                 20.6    %                                                                  7.2 %
      EMEA                                                                                                     1,651.0                                                                       1,293.1                                                                 27.7    %                                                                 13.3 %
         Constant Currency(2)                                                                                                                                                                                                                                        32.1    %                                                                 17.2 %
      Asia                                                                                                     1,623.2                                                                       1,570.9                                                                  3.3    %                                                                  0.6 %
         Constant Currency(2)                                                                                                                                                                                                                                         4.0    %                                                                  1.2 %
                                                                                                                                                                                                                                                                                                                                                     
Operating Income                                                                                                  93.4                                                                         120.2                                                                (22.3 )  %
Adjusted Operating Income(3)                                                                                     155.2                                                                         131.7                                                                 17.9    %
                                                                                                                                                                                                                                                                                                                                                     
Income from continuing operations                                                                                 73.3                                                                          72.1                                                                  1.7    %
Adj Income from continuing operations(4)                                                                         105.0                                                                          75.4                                                                 39.3    %
                                                                                                                                                                                                                                                                                                                                                     
Diluted EPS continuing operations                                                                            $    0.59                                                                     $    0.56                                                                  5.4    %
Adj Diluted EPS continuing operations(4)                                                                     $    0.84                                                                     $    0.59                                                                 42.4    %
 
----------------------------------------
(1)     Financial information is for continuing operations and excludes the
                                              Technology Solutions (TS) business as the sale of this business was
                                              completed during the March quarter. See "Discontinued Operations"
                                              below.
(2)                                           Year-over-year sales growth rate excludes the impact of changes in
                                              foreign currency exchange rates. A discussion on the impact of
                                              foreign currency on Avnet’s results of operations is included in
                                              Exhibit 99.2 to the Form 8-K filed with the Securities Exchange
                                              Commission on August 9, 2017 ("Exhibit 99.2").
(3)                                           Non-GAAP adjustments to operating income in fiscal 2017 include
                                              $42.0 million of restructuring, integration and other expenses and
                                              $19.8 million of amortization expense. Refer to Exhibit 99.2 for a
                                              complete reconciliation of non-GAAP financial information.
(4)                                           Non-GAAP measures. Refer to Exhibit 99.2.
                                               

"We closed out the fiscal year with a strong quarter as organic revenue grew 8.4% year over year in constant currency with all three regions contributing to the growth. In our EMEA region, where our electronic components group continues to grow faster than the market, revenue increased 32% in constant currency and organic revenue was up 17%," said Bill Amelio, CEO of Avnet. "Our digital initiatives continue to gain traction as Premier Farnell’s Element 14 community surpassed 500 thousand members and we continue to add over 30 thousand new digital customers each month. We are seeing meaningful improvement in demand creation metrics as we redeploy field application engineers to new products and suppliers that value the reach and technical breadth we bring to high growth markets. With our digital ecosystem growing steadily and as we realize the positive impacts from our transformation initiatives, we enter fiscal 2018 positioned to drive further organic growth and improve financial performance."

Segment Reporting

As a result of the sale of the TS Business and the acquisition of Premier Farnell, during the fourth quarter of fiscal 2017, the Company changed its reportable segments to the Electronic Components and Premier Farnell operating groups.

Operating Group Results

                                                                                                                                    Year-over-Year Growth Rates
                                                                                                                                                                                           ------------------------------------------------------------------------------------------------------------------------------------------------
                                                                                                                Q4 FY17                                                                          Reported                                       Organic
                                                                                                                 Sales                                                                             Sales                                                                                                  Sales
                                                                                                          ------------------                                                               --------------------                                                               -------------------------------------------------------------
                                                                                                             (in millions)                                                                                                                                                                        
Sales
   Electronic Components                                                                                     $ 4,260.7                                                                                7.4 %                                                                              7.4                          %
      Constant Currency(1)                                                                                                                                                                            8.8 %                                                                              8.8                          %
                                                                                                                                                                                                                                                                                                                       
                                                                                                             $   345.7                                                                     --                                                                                0.1                          %
   Premier Farnell (acquired Oct 16, 2016)
      Constant Currency(1)                                                                                                                                                                 --                                                                                4.0                          %
                                                                                                                                                                                                                                                                                                                       
                                                                                                                                                                                                                                                                                                                       
                                                                                                                Q4 FY17                                                                           Q4 FY16                                                                                                Change
                                                                                                          ------------------                                                               --------------------                                                               -------------------------------------------------------------
Operating Income
   Electronic Components                                                                                     $   152.4                                                                              154.7                                                                               (1.5 )                        %
   Premier Farnell                                                                                                35.5                                                                     --                                                                     --                          %
                                                                                                                                                                                                                                                                                                                       
Operating Income Margin
   Electronic Components                                                                                           3.6 %                                                                              3.9 %                                                                              (32 )                        bps
   Premier Farnell                                                                                                10.3 %                                                                   --                                                                     --
 
------------------------------------------
(1)     Refer to Exhibit 99.2.
                                               

-- Electronic Components sales increased 8.8% from the year ago quarter in constant currency -- Sales increased 3.0% sequentially in constant currency, driven by strength in the Asia region

-- Premier Farnell organic sales increased 4.0% year over year in constant currency

-- Electronic Components EMEA organic sales increased 18.6% year over year in constant currency, the 16th consecutive quarter of year-over-year growth

-- Excluding the Company’s decision to exit select high volume supply chain engagements, Electronic Components Asia grew 11.6% year over year in constant currency

-- Premier Farnell EMEA organic sales increased 5.8% year over year in constant currency and Premier Farnell Asia organic sales increased 13.0% from the year ago quarter in constant currency

-- Electronic Components operating income margin in the Asia region improved 25 bps sequentially and 45 bps from the year ago quarter

-- Electronic Components inventory declined 4.5% from the year ago quarter, 5.0% in constant currency, and average inventory days declined 10.0% primarily driven by improvement in the Americas region

Cash Flow and Returns to Shareholders

-- Cash generated from continuing operations was $81 million in the June quarter and $221 million in fiscal 2017

-- Cash and cash equivalents at the end of the quarter was $836 million; net debt (total debt less cash and cash equivalents) was $943 million

-- During the June quarter, the Company repurchased 3.3 million shares, representing an aggregate investment of $136 million

-- Entering fiscal 2018, the Company had $399 million remaining under the current share repurchase authorization

-- Avnet paid a dividend of $0.18 per share, or $22 million, during the quarter

"In the June quarter, we generated approximately $81 million of cash from continuing operations and $221 million for the fiscal year," said Kevin Moriarty, CFO of Avnet. "In fiscal 2017, we used the proceeds from the sale of Technology Solutions to fund the acquisition of Premier Farnell while strengthening our balance sheet and credit statistics with the pay down of debt. We also returned over $364 million of cash to shareholders via our dividend and share repurchase program. With improved liquidity and a strong balance sheet, we are well positioned to leverage the digital ecosystem we built and invest in offerings that continue to meet the evolving needs of a customer base that is changing how they design, procure and deliver innovative technology products."

Fiscal 2017 Results

-- Sales of $17.4 billion, increased 4.2% year over year (5.1% in constant currency), primarily driven by a strong performance in the EMEA region -- Organic sales increased 1.0% in constant currency

-- Gross profit margin improved 117 bps year over year, primarily driven by the acquisition of Premier Farnell

-- Operating income declined 19.5% year over year, and operating income margin was 2.6% -- Adjusted operating income grew 4.1% year over year, and adjusted operating income margin was consistent with the prior year at 3.7%

-- Generated $221 million cash from continuing operations in fiscal 2017 -- Repurchased $276 million in stock, paid $89 million in dividends

                                                                                               
                                                                                                                                                                                                  FISCAL YEARS ENDED
                                                                                                             --------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------
                                                                                                               July 1, 2017                                                                   July 2, 2016                                                                             Change
                                                                                                             ----------------                                                               ----------------                                                               ------------------------------
Avnet(1)                                                                                                                                                                                 $ in millions, except per share data
---------------------------------------------
                                                                                                              
Sales                                                                                                             $ 17,440.0                                                                     $ 16,740.6                                                                  4.2    %
   Constant Currency(2)                                                                                                                                                                                                                                                      5.1    %
                                                                                                                                                                                                                                                                                     
Operating Income                                                                                                       461.4                                                                          572.9                                                                (19.5 )  %
Adjusted Operating Income(3)                                                                                           653.3                                                                          627.5                                                                  4.1    %
                                                                                                                                                                                                                                                                                     
Income from continuing operations                                                                                      263.4                                                                          390.9                                                                (32.6 )  %
Adjusted Income from continuing operations(4)                                                                          416.6                                                                          403.6                                                                  3.2    %
                                                                                                                                                                                                                                                                                     
Diluted EPS continuing operations                                                                                 $     2.05                                                                     $     2.93                                                                (30.0 )  %
Adjusted Diluted EPS continuing operations(4)                                                                     $     3.24                                                                     $     3.02                                                                  7.3    %
 
---------------------------------------------
(1)     See "Discontinued Operations" below.
(2)                                           Refer to Exhibit 99.2.
(3)                                           Non-GAAP adjustments to operating income in fiscal 2017 include
                                              $137.4 million of restructuring, integration and other expenses and
                                              $54.5 million of amortization expense. Refer to Exhibit 99.2.
(4)                                           Non-GAAP measures. Refer to Exhibit 99.2.
                                               

Outlook for First Quarter of Fiscal 2018 Ending on September 30, 2017

-- Sales are expected to be in the range of $4.15 billion to $4.45 billion -- This sales outlook reflects the net impact from supplier channel consolidation. Excluding the impact of supplier channel consolidation, the midpoint of guidance would be at the low end of the Company’s seasonal range

-- Adjusted diluted earnings per share is expected to be in the range of $0.67 to $0.77 per share

-- The guidance assumes 125 million average diluted shares outstanding and an adjusted tax rate of 23% to 27%

The above guidance excludes any additional acquisitions, any results of discontinued operations, amortization of intangibles, accelerated depreciation, any potential restructuring, integration, and other expenses and certain income tax adjustments. In addition, the above guidance assumes that the average U.S. Dollar to Euro currency exchange rate for the first quarter of fiscal 2018 is $1.14 to EUR1.00. This compares with an average exchange rate of $1.12 to the Euro in the first quarter of fiscal 2017.

Refer to Exhibit 99.2 for a complete reconciliation of non-GAAP guidance.

Discontinued Operations

In February 2017, Avnet completed the sale of its Technology Solutions business to Tech Data Corporation. As a result, the historical results and the gain on sale of the TS business are considered discontinued operations.

Forward-Looking Statements

This document contains certain "forward-looking statements" within the meaning of Section 27A of the Securities Act of 1933, as amended, and Section 21E of the Securities Exchange Act of 1934, as amended. These statements are based on management’s current expectations and are subject to uncertainty and changes in facts and circumstances. The forward-looking statements herein include statements addressing future financial and operating results of Avnet and may include words such as "will," "anticipate," "intend," "estimate," "forecast," "expect," "feel," "believe," "should," and other words and terms of similar meaning in connection with any discussions of future operating or financial performance, business prospects or market conditions. Actual results may differ materially from the expectations contained in the forward-looking statements.

The following factors, among others, could cause actual results to differ materially from those described in the forward-looking statements: Avnet’s ability to retain and grow market share and to generate additional cash flow, risks associated with any acquisition activities and the successful integration of acquired companies, implementing and maintaining ERP systems and transitioning to a global ERP system, supplier losses and changes to supplier programs, an industry down-cycle in semiconductors, declines in sales, changes in business conditions and the economy in general, changes in market demand and pricing pressures, any material changes in the allocation of product or product rebates by suppliers, and other competitive and/or regulatory factors affecting the businesses of Avnet generally.

More detailed information about these and other factors is set forth in Avnet’s filings with the Securities and Exchange Commission, including Avnet’s reports on Form 10-K, Form 10-Q and Form 8-K. Except as required by law, Avnet is under no obligation to update any forward-looking statements, whether as a result of new information, future events or otherwise.

Teleconference and Upcoming Events

Avnet will host a quarterly teleconference today at 11:00 a.m. Eastern Time. Financial information, including financial statement reconciliations of non-GAAP to GAAP financial measures, will be available through www.ir.avnet.com. Please log onto the site 15 minutes prior to the start of the event to register or download any necessary software. An archive copy of the teleconference will also be available after the call.

For a listing of Avnet’s upcoming events and other information, please visit Avnet’s investor relations website at www.ir.avnet.com.

About Avnet

From idea to design and from prototype to production, Avnet supports customers at each stage of a product’s lifecycle. A comprehensive portfolio of design and supply chain services makes Avnet the go-to guide for innovators who set the pace for technological change. For nearly a century, Avnet has helped its customers and suppliers around the world realize the transformative possibilities of technology. Learn more about Avnet at www.avnet.com.

Visit the Avnet Investor Relations website at www.ir.avnet.com or contact us at investorrelations@avnet.com.

                                                                                                                                                                                                                                             
                                                                                                                                                                                                                                     AVNET, INC.
                                                                                                                                                                                                                                     CONSOLIDATED STATEMENTS OF OPERATIONS
                                                                                                                                                                                                                                     (UNAUDITED)
                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                        
                                                                                                                                                                                               Fourth Quarters Ended                                                                                                                                                                                                                           Years Ended
                                                                                                                   ----------------------------------------------------------------------------------------------------------------------------------------------------------------------------                                                               -----------------------------------------------------------------------------------------------------------------------------------------------------------------------------
                                                                                                                                          July 1,                                                                                                              July 2,                                                                                                               July 1,                                                                                                               July 2,
                                                                                                                                           2017                                                                                                                 2016                                                                                                                  2017                                                                                                                  2016
                                                                                                                   ----------------------------------------------------                                                               ---------------------------------------------------------                                                               -----------------------------------------------------                                                               ---------------------------------------------------------
                                                                                                                                                                                                                                                                                                              (Thousands, except per share data)
                                                                                                                    
Sales                                                                                                                                 $ 4,606,404                                                                                                        $      3,968,969                                                                                                        $ 17,439,963                                                                                                        $     16,740,597
Cost of sales                                                                                                        3,975,788                                                                         3,473,192                                                                    15,070,521                                                                        14,662,651  
                                                                                                                   -------------------- --------- --------------------                                                                -------------------- -------------- --------------------                                                                -------------------- ---------- --------------------                                                                -------------------- -------------- --------------------
Gross profit                                                                                                                              630,616                                                                                                                 495,777                                                                                                           2,369,442                                                                                                               2,077,946
   Selling, general and administrative expenses                                                                                           495,210                                                                                                                 366,291                                                                                                           1,770,627                                                                                                               1,460,273
   Restructuring, integration and other expenses                                                                        42,033                                                                             9,306                                                                       137,415                                                                            44,761  
                                                                                                                   -------------------- --------- --------------------                                                                -------------------- -------------- --------------------                                                                -------------------- ---------- --------------------                                                                -------------------- -------------- --------------------
Operating income                                                                                                                           93,373                                                                                                                 120,180                                                                                                             461,400                                                                                                                 572,912
Other (expense) income, net                                                                                                               (13,495 )                                                                                                                (3,247 )                                                                                                           (44,305 )                                                                                                                (2,963 )
Interest expense                                                                                                       (25,173 )                                                                                            (27,550 )                                                                                       (106,691 )                                                                                            (91,936 )
                                                                                                                   -------------------- --------- --------------------                                                                -------------------- -------------- --------------------                                                                -------------------- ---------- --------------------                                                                -------------------- -------------- --------------------
Income from continuing operations before taxes                                                                                             54,705                                                                                                                  89,383                                                                                                             310,404                                                                                                                 478,013
Income tax (benefit) expense                                                                                           (18,574 )                                                                                             17,330                                                                        47,053                                                                            87,104  
                                                                                                                   -------------------- --------- --------------------                                                                -------------------- -------------- --------------------                                                                -------------------- ---------- --------------------                                                                -------------------- -------------- --------------------
Income from continuing operations, net of tax                                                                                              73,279                                                                                                                  72,053                                                                                                             263,351                                                                                                                 390,909
Income from discontinued operations, net of tax                                                                                             2,899                                                                                                                  24,753                                                                                                              39,571                                                                                                                 115,622
Gain on sale of discontinued operations, net of tax                                                                      5,268                                                                    --                                                                       222,356                                                                    --  
                                                                                                                   -------------------- --------- --------------------                                                                -------------------- -------------- --------------------                                                                -------------------- ---------- --------------------                                                                -------------------- -------------- --------------------
Income from discontinued operations, net of tax                                                                          8,167                                                                            24,753                                                                       261,927                                                                           115,622  
                                                                                                                   -------------------- --------- --------------------                                                                -------------------- -------------- --------------------                                                                -------------------- ---------- --------------------                                                                -------------------- -------------- --------------------
Net income                                                                                                                            $    81,446                                                                                     $         96,806                                                                                     $    525,278                                                                                     $        506,531  
                                                                                                                   ==================== ========= ====================                                                                ==================== ============== ====================                                                                ==================== ========== ====================                                                                ==================== ============== ====================
                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                        
Earnings per share - basic:
   Continuing operations                                                                                                              $      0.59                                                                                                        $           0.57                                                                                                        $       2.07                                                                                                        $           2.99
   Discontinued operations                                                                                                0.07                                                                              0.19                                                                          2.06                                                                              0.88  
                                                                                                                   -------------------- --------- --------------------                                                                -------------------- -------------- --------------------                                                                -------------------- ---------- --------------------                                                                -------------------- -------------- --------------------
   Net income per share basic                                                                                                         $      0.66                                                                                     $           0.76                                                                                     $       4.13                                                                                     $           3.87  
                                                                                                                   ==================== ========= ====================                                                                ==================== ============== ====================                                                                ==================== ========== ====================                                                                ==================== ============== ====================
                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                        
Earnings per share - diluted:
   Continuing operations                                                                                                              $      0.59                                                                                                        $           0.56                                                                                                        $       2.05                                                                                                        $           2.93
   Discontinued operations                                                                                                0.07                                                                              0.19                                                                          2.03                                                                              0.87  
                                                                                                                   -------------------- --------- --------------------                                                                -------------------- -------------- --------------------                                                                -------------------- ---------- --------------------                                                                -------------------- -------------- --------------------
   Net income per share diluted                                                                                                       $      0.65                                                                                     $           0.75                                                                                     $       4.08                                                                                     $           3.80  
                                                                                                                   ==================== ========= ====================                                                                ==================== ============== ====================                                                                ==================== ========== ====================                                                                ==================== ============== ====================
                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                        
Shares used to compute earnings per share:
   Basic                                                                                                               124,209                                                                           127,930                                                                       127,032                                                                           130,858  
                                                                                                                   ==================== ========= ====================                                                                ==================== ============== ====================                                                                ==================== ========== ====================                                                                ==================== ============== ====================
   Diluted                                                                                                             125,062                                                                           129,799                                                                       128,651                                                                           133,173  
                                                                                                                   ==================== ========= ====================                                                                ==================== ============== ====================                                                                ==================== ========== ====================                                                                ==================== ============== ====================
   Cash dividends paid per common share                                                                                               $      0.18                                                                                     $           0.17                                                                                     $       0.70                                                                                     $           0.68  
                                                                                                                   ==================== ========= ====================                                                                ==================== ============== ====================                                                                ==================== ========== ====================                                                                ==================== ============== ====================
                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                        
                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                        
                                                                                                                                            
                                                                                                                                                                                                                  AVNET, INC.
                                                                                                                                                                                                     CONDENSED CONSOLIDATED BALANCE SHEETS
                                                                                                                                                                                                                  (UNAUDITED)
                                                                                                                                                                                                                                                                                                                                                                                                                          
                                                                                                                                                                                                                                                                      July 1,                                                                                                                                         July 2,
                                                                                                                                                                                                                                                                       2017                                                                                                                                            2016
                                                                                                                                                                                                                                                       ------------------------------------                                                                                                         ------------------------------------------
                                                                                                                                                                                                                                                                                                                                             (Thousands)
ASSETS
   Current assets:
      Cash and cash equivalents                                                                                                                                                                                                                                           $        836,384                                                                                                                             $            1,031,478
      Marketable securities                                                                                                                                                                                                                                                        281,326                                                                                                                                     --
      Receivables, net                                                                                                                                                                                                                                                           3,337,624                                                                                                                                          2,769,906
      Inventories                                                                                                                                                                                                                                                                2,824,709                                                                                                                                          2,559,921
      Prepaid and other current assets                                                                                                                                                                                                                                             253,765                                                                                                                                             73,786
      Current assets of discontinued operations                                                                                                                                                                                                          --                                                                                                                       2,568,882
                                                                                                                                                                                                                                                       -------------------- --------------                                                                                                          -------------------- --------------------
         Total current assets                                                                                                                                                                                                                                                    7,533,808                                                                                                                                          9,003,973
      Property, plant and equipment, net                                                                                                                                                                                                                                           519,575                                                                                                                                            453,209
      Goodwill                                                                                                                                                                                                                                                                   1,148,347                                                                                                                                            621,852
      Intangible assets, net                                                                                                                                                                                                                                                       277,291                                                                                                                                             22,571
      Other assets                                                                                                                                                                                                                                                                 220,568                                                                                                                                            239,133
      Non-current assets of discontinued operations                                                                                                                                                                                                      --                                                                                                                         899,067
                                                                                                                                                                                                                                                       -------------------- --------------                                                                                                          -------------------- --------------------
         Total assets                                                                                                                                                                                                                                                     $      9,699,589                                                                                                                             $           11,239,805
                                                                                                                                                                                                                                                       ==================== ==============                                                                                                          ==================== ====================
                                                                                                                                                                                                                                                                                                                                                                                                                          
LIABILITIES AND SHAREHOLDERS’ EQUITY
   Current liabilities:
      Short-term debt                                                                                                                                                                                                                                                     $         50,113                                                                                                                             $            1,152,599
      Accounts payable                                                                                                                                                                                                                                                           1,861,635                                                                                                                                          1,590,777
      Accrued expenses and other                                                                                                                                                                                                                                                   542,023                                                                                                                                            394,888
      Current liabilities of discontinued operations                                                                                                                                                                                                     --                                                                                                                       1,804,229
                                                                                                                                                                                                                                                       -------------------- --------------                                                                                                          -------------------- --------------------
         Total current liabilities                                                                                                                                                                                                                                               2,453,771                                                                                                                                          4,942,493
      Long-term debt                                                                                                                                                                                                                                                             1,729,212                                                                                                                                          1,339,204
      Other liabilities                                                                                                                                                                                                                                                            334,538                                                                                                                                            223,053
      Non-current liabilities of discontinued operations                                                                                                                                                                                                 --                                                                                                                          43,769
                                                                                                                                                                                                                                                       -------------------- --------------                                                                                                          -------------------- --------------------
      Total liabilities                                                                                                                                                                                                                                                          4,517,521                                                                                                                                          6,548,519
         Shareholders’ equity                                                                                                                                                                                                      5,182,068                                                                                                                       4,691,286
                                                                                                                                                                                                                                                       -------------------- --------------                                                                                                          -------------------- --------------------
         Total liabilities and shareholders’ equity                                                                                                                                                                                            $      9,699,589                                                                                                                             $           11,239,805
                                                                                                                                                                                                                                                       ==================== ==============                                                                                                          ==================== ====================
                                                                                                                                                                                                                                                                                                                                                                                                                          
                                                                                                                                                                                                                                                                                                                                                                                                                          
                                                                                                                                                            
                                                                                                                                                                                                                                 AVNET, INC.
                                                                                                                                                                                                                    CONSOLIDATED STATEMENTS OF CASH FLOWS
                                                                                                                                                                                                                                 (UNAUDITED)
                                                                                                                                                                                                                                                                                                                                                                                                                                          
                                                                                                                                                                                                                                                                                                                                                            Years Ended
                                                                                                                                                                                                                                                      -----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------
                                                                                                                                                                                                                                                                          July 1, 2017                                                                                                                                                    July 2, 2016
                                                                                                                                                                                                                                                      -----------------------------------------------------                                                                                                         ---------------------------------------------------------
                                                                                                                                                                                                                                                                                                                                                            (Thousands)
Cash flows from operating activities:
   Net income                                                                                                                                                                                                                                                            $    525,278                                                                                                                                                  $        506,531
   Less: Income from discontinued operations, net of tax                                                                                                                                                                                                   261,927                                                                                                                     115,622  
                                                                                                                                                                                                                                                      -------------------- ---------- --------------------                                                                                                          -------------------- -------------- --------------------
   Income from continuing operations                                                                                                                                                                                                                                          263,351                                                                                                                                                           390,909
                                                                                                                                                                                                                                                                                                                                                                                                                                          
   Non-cash and other reconciling items:
      Depreciation                                                                                                                                                                                                                                                            101,407                                                                                                                                                            70,344
      Amortization                                                                                                                                                                                                                                                             53,953                                                                                                                                                             9,246
      Deferred income taxes                                                                                                                                                                                                                                                   (25,305 )                                                                                                                                                         107,598
      Stock-based compensation                                                                                                                                                                                                                                                 47,686                                                                                                                                                            56,908
      Other, net                                                                                                                                                                                                                                                               26,230                                                                                                                                                            29,379
   Changes in (net of effects from businesses acquired and divested):
      Receivables                                                                                                                                                                                                                                                            (371,820 )                                                                                                                                                         191,209
      Inventories                                                                                                                                                                                                                                                              84,408                                                                                                                                                          (416,644 )
      Accounts payable                                                                                                                                                                                                                                                        163,604                                                                                                                                                          (326,217 )
      Accrued expenses and other, net                                                                                                                                                                                                                     (122,466 )                                                                                                                                     (161,607 )
                                                                                                                                                                                                                                                      -------------------- ---------- --------------------                                                                                                          -------------------- -------------- --------------------
         Net cash flows provided (used) by operating activities - continuing                                                                                                                                                                               221,048                                                                                                                     (48,875 )
         operations
                                                                                                                                                                                                                                                      -------------------- ---------- --------------------                                                                                                          -------------------- -------------- --------------------
         Net cash flows (used) provided by operating activities -                                                                                                                                                                                         (589,738 )                                                                                                                                      273,190  
         discontinued operations
                                                                                                                                                                                                                                                      -------------------- ---------- --------------------                                                                                                          -------------------- -------------- --------------------
         Net cash flows (used) provided by operating activities                                                                                                                                                                                           (368,690 )                                                                                                                                      224,315  
                                                                                                                                                                                                                                                      -------------------- ---------- --------------------                                                                                                          -------------------- -------------- --------------------
                                                                                                                                                                                                                                                                                                                                                                                                                                          
Cash flows from financing activities:
   Issuance of notes, net of issuance costs                                                                                                                                                                                                                                   296,374                                                                                                                                                           541,500
   Repayment of notes                                                                                                                                                                                                                                                        (530,800 )                                                                                                                                                        (250,000 )
   Borrowings (repayments) under accounts receivable securitization, net                                                                                                                                                                                                     (588,000 )                                                                                                                                                          79,996
   Borrowings (repayments) of bank and revolving debt, net                                                                                                                                                                                                                    (72,553 )                                                                                                                                                         119,895
   Borrowings of term loans                                                                                                                                                                                                                                                   530,756                                                                                                                                                    --
   Repayments of term loans                                                                                                                                                                                                                                                  (511,358 )                                                                                                                                                  --
   Repurchases of common stock                                                                                                                                                                                                                                               (275,884 )                                                                                                                                                        (380,943 )
   Dividends paid on common stock                                                                                                                                                                                                                                             (88,657 )                                                                                                                                                         (88,594 )
   Other, net                                                                                                                                                                                                                                               48,530                                                                                                                     (11,448 )
                                                                                                                                                                                                                                                      -------------------- ---------- --------------------                                                                                                          -------------------- -------------- --------------------
         Net cash flows (used) provided by financing activities - continuing                                                                                                                                                                            (1,191,592 )                                                                                                                                       10,406  
         operations
                                                                                                                                                                                                                                                      -------------------- ---------- --------------------                                                                                                          -------------------- -------------- --------------------
         Net cash flows provided by financing activities - discontinued                                                                                                                                                                                      3,447                                                                                                                      22,949  
         operations
                                                                                                                                                                                                                                                      -------------------- ---------- --------------------                                                                                                          -------------------- -------------- --------------------
         Net cash flows (used) provided by financing activities                                                                                                                                                                                         (1,188,145 )                                                                                                                                       33,355  
                                                                                                                                                                                                                                                      -------------------- ---------- --------------------                                                                                                          -------------------- -------------- --------------------
                                                                                                                                                                                                                                                                                                                                                                                                                                          
Cash flows from investing activities:
   Purchases of property, plant and equipment                                                                                                                                                                                                                                (120,397 )                                                                                                                                                        (137,375 )
   Acquisitions of businesses, net of cash acquired                                                                                                                                                                                                                          (802,744 )                                                                                                                                                  --
   Other, net                                                                                                                                                                                                                                               18,656                                                                                                                      15,574  
                                                                                                                                                                                                                                                      -------------------- ---------- --------------------                                                                                                          -------------------- -------------- --------------------
         Net cash flows used for investing activities - continuing operations                                                                                                                                                                             (904,485 )                                                                                                                                     (121,801 )
                                                                                                                                                                                                                                                      -------------------- ---------- --------------------                                                                                                          -------------------- -------------- --------------------
         Net cash flows provided (used) by investing activities -                                                                                                                                                                                        2,242,959                                                                                                                     (30,712 )
         discontinued operations
                                                                                                                                                                                                                                                      -------------------- ---------- --------------------                                                                                                          -------------------- -------------- --------------------
         Net cash flows provided (used) by investing activities                                                                                                                                                                                          1,338,474                                                                                                                    (152,513 )
                                                                                                                                                                                                                                                      -------------------- ---------- --------------------                                                                                                          -------------------- -------------- --------------------
Effect of currency exchange rate changes on cash and cash equivalents                                                                                                                                                                                                          23,267                                                                                                                                                            (6,232 )
Cash and cash equivalents:
-- (decrease) increase                                                                                                                                                                                                                                           (195,094 )                                                                                                                                                          98,925
-- at beginning of period                                                                                                                                                                                                                    1,031,478                                                                                                                     932,553  
                                                                                                                                                                                                                                                      -------------------- ---------- --------------------                                                                                                          -------------------- -------------- --------------------
-- at end of period                                                                                                                                                                                                                                          $    836,384                                                                                                                               $      1,031,478  
                                                                                                                                                                                                                                                      ==================== ========== ====================                                                                                                          ==================== ============== ====================
                                                                                                                                                                                                                                                                                                                                                                                                                                          

http://cts.businesswire.com/ct/CT?id=bwnews&sty=20170809005409r1&sid=cmtx6&distro=nx&lang=en

View source version on businesswire.com: http://www.businesswire.com/news/home/20170809005409/en/

SOURCE: Avnet, Inc.

Avnet, Inc. 
Investor Relations Contact 
Vincent Keenan 
Investor Relations 
480-643-7053 
investorrelations@avnet.com 
or 
Media Relations Contact 
Maureen O’Leary 
Corporate Communications 
480-643-7499 
maureen.oleary@avnet.com


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