CDW CORPORATION INVESTOR PRESENTATION
2023 | FALL / WINTER
DISCLAIMERS
Forward-Looking Statements
Statements in this presentation that are not statements of historical fact are forward-looking statements within the meaning of the safe harbor provisions of the Private Securities Litigation Reform Act of 1995, including, without limitation, statements regarding the future financial performance, capital allocation priorities and growth prospects of CDW. These forward-looking statements are subject to risks and uncertainties that may cause actual results or events to differ materially from those described in such statements. Although CDW believes that its plans, intentions and other expectations reflected in or suggested by such forward-looking statements are reasonable, it can give no assurance that it will achieve those plans, intentions or expectations. Reference is made to a more complete discussion of forward-looking statements and applicable risks contained under the captions "Forward-Looking Statements" and "Risk Factors" in CDW's Annual Report on Form 10-K for the year ended December 31, 2022, and subsequent filings with the Securities and Exchange Commission (the "SEC"). CDW undertakes no obligation to update or revise any of its forward-looking statements, whether as a result of new information, future events or otherwise, except as otherwise required by law.
Non-GAAP Financial Information
This presentation contains certain Non-GAAP financial measures, including Non-GAAP operating income, Non-GAAP operating income margin and Non-GAAP net income. Generally, a Non-GAAP financial measure is a numerical measure of a company's performance or financial condition that either excludes or includes amounts that are not normally included or excluded in the most directly comparable measure calculated and presented in accordance with US GAAP. For a reconciliation of Non-GAAP financial measures to the applicable most comparable US GAAP financial measures, see Exhibit 99.1 to CDW's Current Report on Form 8-K filed with the SEC on November 1, 2023 and the reconciliations included in these slides. Non-GAAP financial measures used by CDW may differ from similar measures used by other companies, even when similar terms are used to identify such measures.
2 | INVESTOR PRESENTATION
TRACK RECORD OF PROFITABLE GROWTH
- Market-leadingprovider of integrated technology solutions to business, government, education and healthcare customers for 35+ years
- Coworkers: ~11,600 US and ~3,400 international; over 2/3 are customer-facing(1)
- Full stack of technology solutions and services across the entire IT lifecycle
- Offers 100,000+ products and services from 1,000+ brands to more than 250,000 customers in the US, UK and Canada
- "Sweet spot" is customers with <5,000 employees
- Attractive business model with demonstrated track record of profitable growth
- As of September 30, 2023.
- 2015 and prior years have not been updated to reflect the adoption of Topic 606.
- Refer to Appendix for reconciliation of non-GAAP measures for additional detail.
NET SALES ($B)(2) | |||||||||
$23.7 | |||||||||
$18.5 | $20.8 | ||||||||
$16.2 | $18.0 | ||||||||
$14.8 | |||||||||
$13.0 | $13.7 | ||||||||
$12.1 | |||||||||
$10.8 | |||||||||
2013 | 2014 | 2015 | 2016 | 2017 | 2018 | 2019 | 2020 | 2021 | 2022 |
OPERATING INCOME ($MM)(2)(3) |
Operating Income | Non-GAAP Operating Income | ||
$2,051
$1,405 | $1,645 | $1,735 | ||||||||
$1,217 | $1,368 | $1,419 | ||||||||
$1,048 | $1,107 | $1,134 | $1,179 | |||||||
$742$961 | $987 | |||||||||
$747 | $673 | $851 | $820 | $867 | ||||||
$509 |
2013 | 2014 | 2015 | 2016 | 2017 | 2018 | 2019 | 2020 | 2021 | 2022 |
3 | INVESTOR PRESENTATION
LARGE AND GROWING MARKET OPPORTUNITY
The majority of the market is fragmented across thousands of value-added resellers.
CDW plus the next three largest publicly traded IT solutions companies(1) represent less than 10% of CDW's US addressable market.
TOTAL ADDRESSABLE MARKET
Total US, UK and
Canada IT Market(2):
~$1,400B
CDW Current
Addressable Market(2):
~$460B
CDW: $23.7B(3)
2018-2023E CAGR IT Spending: 7.7%(4)
- Estimated market share for top 4 publicly traded IT solutions companies: CDW, Insight North America, PC Connection, and e-Plus as of trailing twelve months last reported results.
- IDC and CDW internal estimates as of December 2022.
- For year ended December 31, 2022.
- IDC Worldwide Black Book, September 30, 2023, includes Consumer and B2B for US, UK and Canada markets.
4 | INVESTOR PRESENTATION
STRATEGY DRIVES SUSTAINED MARKET SHARE GROWTH
THREE-PART STRATEGY FOR GROWTH
1
Capture share and acquire new customers
2
Enhance capabilities in high-growth solutions areas
3
Expand services capabilities
CONSISTENT, FASTER-THAN-MARKET-GROWTH
US IT Spending CAGR(1) | CDW Net Sales CAGR | |
9.7% | ||
210 bps | 8.1% | 320 bps |
6.0% | 6.5% | |
2006-2022 | 2009-2022 |
1. IDC and CDW internal estimates as of December 2022.
5 | INVESTOR PRESENTATION
BALANCED PORTFOLIO OFFERS MULTIPLE GROWTH DRIVERS
DIVERSE CUSTOMER CHANNELS AND GEOGRAPHY CREATE MULTIPLE DRIVERS OF GROWTH AND DIVERSIFICATION AGAINST MACRO AND EXOGENOUS HEADWINDS
2022 NET SALES & Y/Y GROWTH %
($23.7B, +14.1%)
NET SALES GROWTH %
Other
(UK, Canada)
$2.9B
Healthcare+12.4%
$2.4B
+22.7%
$3.6B
Education -11.9%
(K-12, Higher Ed)
$2.6B +19.4%
Government
(Federal, State & Local)
Corporate (>250 employees)
$10.4B +26.5%
$1.9B
+3.7%
Small Business (<250 employees)
Great Recession
'08-'09 Change
(Other includes ATS & Canada)
Great Recession Recovery
'09-'11 CAGR
(Other includes ATS & Canada)
IPO - 2019 '13-'19 CAGR(1)
(Other includes Canada & CDW UK)
COVID-19'19-'20 Change
(Other includes Canada & CDW UK)
11% | 3% | TOTAL | ||
0% | CHANGE | |||
(11)% | ||||
-4% |
-22%-18%30% 29%
19% 14% | 7% | +16% |
3% | ||
29% |
7% | 8% 12% 9% | 5% | +9% |
43% | ||
18% | ||
+2% | ||
-9% | -7% | -12%-3% |
1. 2013 Net sales adjusted to reflect a comparable 2019 Net sales segmentation: (1) Other includes CDW Canada Net sales (CDW UK acquired in 2015); (2) Advanced Technology Services (ATS) business classified under each US segment.
6 | INVESTOR PRESENTATION
UNIQUELY POSITIONED TO DELIVER CUSTOMER AND PARTNER VALUE
CDW Sits Between Customers and Vendor Partners, Creating Value for Both
VALUE TO CUSTOMERS:
- Broad selection of products and multi-branded IT solutions
- Value-addedservices with integration capabilities
- Highly-skilledspecialists and engineers
- Solutions across IT lifecycle
VALUE TO VENDOR PARTNERS:
- Access to more than 250,000 customers
- Large and established customer channels
- Strong distribution and implementation capabilities
- Customer relationships driving insight into technology roadmaps
CUSTOMER
VALUE
INTIMATE KNOWLEDGE | |
OF IT ENVIRONMENT | VENDOR |
AND LANDSCAPE | PARTNER |
VALUE |
7 | INVESTOR PRESENTATION
HIGHLY
COMPLEX AND
INTERCONNECTED
CUSTOMER
EXPERIENCES
8 | INVESTOR PRESENTATION
FULL SOLUTIONS STACK, FULL OUTCOME AND FULL IT LIFECYCLE
As a trusted advisor, we help customers navigate and be successful in an ever- changing world by providing them the technology advice and solutions they need, when they need them.
MULTI-CLOUD
SERVICES
SOFTWARE
HARDWARE
9 | INVESTOR PRESENTATION
BROAD PORTFOLIO OF SOLUTIONS AND SERVICES
The breadth of our product and solutions portfolio ensures we are well- positioned to meet our customers' needs and pivot quickly to trends in customer demand.
We will continue to invest, organically and inorganically, in high-growth solutions and services capabilities.
ON PREMISE | ON JOURNEY | ON MULTI-CLOUD | ||
SOLUTION | TRANSFORMATION | PLATFORM |
DESIGNS | DESIGNS | DESIGNS |
DESIGN
SOLUTION | UPGRADES | CLOUD SERVICES |
BUILDS | & MIGRATIONS | BUILDS |
ORCHESTRATE
OPERATIONS | MANAGED | CLOUD SERVICES |
& SUPPORT | MIGRATIONS | & RESOURCES |
MANAGE
10 | INVESTOR PRESENTATION
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Disclaimer
CDW Corporation published this content on 01 November 2023 and is solely responsible for the information contained therein. Distributed by Public, unedited and unaltered, on 01 November 2023 12:26:45 UTC.
