Table of Contents Fiscal 2018 Comparison to Fiscal 2017 The Company acquired Farnell in fiscal 2017. The table below provides the comparison of reported and organic fiscal 2018 sales to fiscal 2017 sales to allow readers to better assess and understand the Company’s sales performance. Organic Sales Sales as Reported Sales Organic Organic Year-Year % and Organic as Reported Sales Sales Change in Fiscal Fiscal Fiscal Year-Year Constant 2018 2017 Acquisitions 2017 % Change Currency (Dollars in millions) Avnet $ 19,036.9 $ 17,440.0 $ 378.3 $ 17,818.3 6.8 % 3.6 % Avnet by region Americas $ 5,011.4 $ 5,163.9 $ 154.4 $ 5,318.3 (5.8)% (5.8)% EMEA 6,790.9 5,912.9 178.9 6,091.8 11.5 2.5 Asia 7,234.6 6,363.2 45.0 6,408.2 12.9 12.7 Avnet by segment EC $ 17,543.6 $ 16,474.1 $  — $ 16,474.1 6.5 % 3.4 % Farnell 1,493.3 965.9 378.3 1,344.2 11.1 6.5 (1) (1) Includes Farnell acquired on October 17, 2016, which has operations in each Avnet region Sales for fiscal 2018 were $19.04 billion, an increase of 9.2%, or $1.60 billion, from fiscal 2017 sales of $17.44 billion. The sales growth was primarily driven by the acquisition of Farnell and the impact of changes in foreign currency exchange rates as approximately $575 million of the increase in sales was attributable to the translation impact of changes in foreign currency exchange rates, primarily in EMEA. These increases in sales were partially offset by the impact of supplier channel and program changes, which occurred during fiscal 2017 into the first half of fiscal 2018. Organic sales in constant currency increased 3.6% year over year with both operating groups contributing to the increase. Gross profit in fiscal 2019 was $2.49 billion, a decrease of $41.1 million, or 1.6%, compared to fiscal 2018 and increased 1.0% in constant currency. Gross profit margin of 12.7% in fiscal 2019 decreased 54 basis points from the prior year primarily due to industry specific and macroeconomic conditions as well as a higher mix of sales from Asia in EC. EC sales in the Asia region represented 41% of sales in fiscal 2019 versus 40% in fiscal 2018. Gross profit in fiscal 2018 was $2.53 billion, an increase of $157.7 million, or 6.7%, compared to fiscal 2017. This increase was due to the acquisition of Farnell and the impact of changes in foreign currency exchange rates, partially offset by declines from supplier channel and program changes. Gross profit margin of 13.3% in fiscal 2018 decreased 31 basis points from the prior year primarily due to supplier channel and program changes and due to a higher mix of sales coming from the lower gross profit margin EC Asia region, partially offset by fiscal 2018 including a full fiscal year of Farnell sales. Gross Profit and Gross Profit Margins Selling, General and Administrative Expenses Selling, general and administrative expenses (“SG&A expenses”) in fiscal 2019 were $1.87 billion, a decrease of $116.8 million, or 5.9%, compared to fiscal 2018. Metrics that management monitors with respect to its operating expenses are SG&A expenses as a percentage of sales and as a percentage of gross profit. In fiscal 2019, SG&A expenses as a 24