EX-99.2 3 scscinfographic_q1fy23.htm EX-99.2
Fiscal First Quarter 2023 Earnings We had an outstanding start to our fiscal year, delivering 10% net sales growth and record earnings per share. This exceptional performance is a result of strong demand and working capital investments to meet the needs of our channel partners.” Mike Baur Chairman and CEO, ScanSource, Inc. Key Highlights 10% Net Sales Growth and 12% Gross Profit Growth Winning with our Differentiated Hybrid Distribution Strategy Investments in Working Capital to Meet Demand and Deliver Strong Adj. ROIC Net Sales +10% Y/Y $943.8M 10% Net Sales Growth Drove Record EPS © ScanSource 2022 Consolidated Specialty Technology Solutions Segment Gross Profit +12% Y/Y $113.5M, 12.0% margin Modern Communications & Cloud Segment STS, Net Sales +15% Y/Y $576.3M MC&C, Net Sales +3% Y/Y $367.5M STS, Gross Profit +28% Y/Y $58.4M, 10.1% margin MC&C, Gross Profit -1% Y/Y $55.1M, 15.0% margin Exhibit 99.2

* Non-GAAP measure; adjusted ROIC represents return on invested capital For further financial data, non-GAAP financial disclosures and cautionary language regarding forward-looking statements, please refer to the following pages and ScanSource’s first quarter fiscal year 2023 news release issued on November 8, 2022, which accompanies this presentation and is available at www.scansource.com in the Investor Relations section. First Quarter Metrics Reflect Operational Excellence Focused Execution of Value Creation Strategy Solid Financial Foundation for Growth Fiscal Year 2023 Outlook updated as of November 8, 2022 $0.94 per share +9% Y/Y GAAP Diluted EPS All-time Company record $1.07 per share +8% Y/Y Non-GAAP Diluted EPS* All-time Company record $45.3M +9% Y/Y Adjusted EBITDA* All-time Company record $(116)M TTM Operating Cash Flow Working capital for growth 15.6% Adjusted ROIC* No Q1 share repurchases 4.80% Adjusted EBITDA Margin* 1.7x net debt to TTM adjusted EBITDA Target range: 1x to 2x 5.1x inventory turns 5-qtr range: 5.1x to 6.3x Paid for inventory days of 7.2 5-qtr range: (3.2) to 7.2 71 days sales outstanding 5-qtr range: 62 to 71 A repositioned company – Innovative hybrid distributor Attractive financial profile Delivering long-term sustainable growth Differentiated market position © ScanSource 2022 At Least 5.5% Net Sales Growth At Least $174M +4% Y/Y Adjusted EBITDA* 2 Building on specialized technologies

Forward-Looking Statements This Earnings Infographic and supporting materials contain certain comments that are “forward- looking” statements, including statements about our FY23 outlook, growth opportunities and our operating strategies that involve plans, strategies, economic performance and trends, projections, expectations, costs or beliefs about future events and other statements that are not descriptions of historical facts. Forward-looking information is inherently subject to risks and uncertainties. Any number of factors could cause actual results to differ materially from anticipated or forecasted results, including but not limited to, the failure to hire and retain quality employees, risk to our business from a cyber-security attack, the failure to manage and implement our organic growth strategy, economic weakness and inflation, a failure of our IT systems, a failure to acquire new businesses, changes in interest and exchange rates and regulatory regimes impacting our international operations, loss of our major customers, termination of our relationship with key suppliers or a significant modification of the terms under which we operate with a key supplier, changes in our operating strategy, and other factors set forth in the “Risk Factors” contained in our annual report on Form 10-K for the year ended June 30, 2022, and subsequent reports on Form 10-Q, filed with the Securities and Exchange Commission (“SEC”). Although ScanSource believes the expectations in its forward-looking statements are reasonable, it cannot guarantee future results, levels of activity, performance or achievement. ScanSource disclaims any obligation to update or revise any forward-looking statements, whether as a result of new information, future events, or otherwise, except as may be required by law. Non-GAAP Financial Information In addition to disclosing results that are determined in accordance with United States Generally Accepted Accounting Principles (“GAAP”), the Company also discloses certain non-GAAP measures, including non-GAAP operating income, non-GAAP operating income margin, non-GAAP net income, non-GAAP diluted EPS, non-GAAP net sales, non-GAAP SG&A expenses, adjusted EBITDA, adjusted ROIC and net sales less impacts from foreign currency translation and acquisitions (organic growth). A reconciliation of the Company's non-GAAP financial information to GAAP financial information is provided in the following supporting materials and in the Company’s Form 8-K, filed with the SEC, with the quarterly earnings press release for the period indicated. 3

Consolidated, 5-Quarter Financial Summary - for continuing operations ($ in thousands, except per share data) Q1 FY23 Q4 FY22 Q3 FY22 Q2 FY22 Q1 FY22 Q/Q Y/Y Select reported GAAP measures: Net sales $ 943,813 $ 962,283 $ 845,990 $ 864,351 $ 857,583 (2)% 10% Gross profit $ 113,485 $ 110,792 $ 106,508 $ 107,925 $ 101,572 2% 12% Gross profit margin % 12.0 % 11.5 % 12.6 % 12.5 % 11.8 % 51 bp 18 bp SG&A expenses $ 71,593 $ 75,905 $ 66,522 $ 69,433 $ 63,854 (6)% 12% Operating income $ 34,888 $ 27,424 $ 32,917 $ 31,498 $ 30,328 27% 15% Operating income % 3.70 % 2.85 % 3.89 % 3.64 % 3.54 % 85 bp 16 bp Net income $ 24,042 $ 19,947 $ 23,526 $ 23,152 $ 22,073 21% 9% Diluted EPS $ 0.94 $ 0.78 $ 0.91 $ 0.89 $ 0.86 21% 9% Select reported Non-GAAP measures: (a) Non-GAAP operating income $ 39,129 $ 31,864 $ 37,374 $ 35,892 $ 34,921 23% 12% Non-GAAP operating income % 4.15 % 3.31 % 4.42 % 4.15 % 4.07 % 84 bp 7 bp Non-GAAP net income $ 27,203 $ 23,266 $ 26,879 $ 26,446 $ 25,550 17% 6% Non-GAAP diluted EPS $ 1.07 $ 0.91 $ 1.04 $ 1.02 $ 0.99 18% 8% Adjusted EBITDA $ 45,275 $ 38,672 $ 44,115 $ 42,542 $ 41,394 17% 9% Adjusted EBITDA % 4.80 % 4.02 % 5.21 % 4.92 % 4.83 % 78 bp (3) bp Adjusted ROIC 15.6 % 14.9 % 18.0 % 17.6 % 17.5 % 70 bp (190) bp Operating cash flow (QTR) $ (48,459) $ (78,684) $ 29,707 $ (18,419) $ (56,959) 38% (15)% Operating cash flow (TTM) $ (115,855) $ (124,355) $ 15,674 $ (74,285) $ (11,417) (7)% 915% (a) See pages 11 through 12 for the calculation of non-GAAP measures and reconciliations to GAAP measures. ScanSource, Inc. Earnings Infographic Q1 FY2023 SUPPORTING MATERIALS AND RECONCILIATIONS FOR NON-GAAP FINANCIAL INFORMATION scansource.com 4 November 8, 2022

Specialty Technology Solutions, 5-Quarter Financial Summary ($ in thousands) Q1 FY23 Q4 FY22 Q3 FY22 Q2 FY22 Q1 FY22 Q/Q Y/Y Net sales $ 576,329 $ 580,619 $ 503,072 $ 496,920 $ 501,711 (1)% 15% Gross profit $ 58,404 $ 53,994 $ 54,021 $ 52,048 $ 45,694 8% 28% Gross profit margin % 10.1 % 9.3 % 10.7 % 10.5 % 9.1 % 84 bp 103 bp GAAP operating income $ 21,852 $ 15,408 $ 20,623 $ 16,551 $ 14,104 42% 55% GAAP operating income % 3.79 % 2.65 % 4.10 % 3.33 % 2.81 % 114 bp 98 bp Add: Intangible amortization expense $ 1,341 $ 1,491 $ 1,491 $ 1,491 $ 1,531 (10)% (12)% Non-GAAP operating income $ 23,193 $ 16,899 $ 22,114 $ 18,042 $ 15,635 37% 48% Non-GAAP operating income % 4.02 % 2.91 % 4.40 % 3.63 % 3.12 % 111 bp 91 bp Reconciliation of Operating Income to Adjusted EBITDA GAAP operating income $ 21,852 $ 15,408 $ 20,623 $ 16,551 $ 14,104 42% 55% Plus: Depreciation expense 1,941 2,089 1,833 1,867 1,868 (7)% 4% Intangible amortization expense 1,341 1,491 1,491 1,491 1,531 (10)% (12)% Interest income 321 325 265 299 305 (1)% 5% Other income/(expense), net (125) (141) 165 (169) 13 *nm *nm EBITDA 25,330 19,172 24,377 20,039 17,821 32% 42% Adjustments: Share-based compensation expense 1,556 1,710 1,659 2,038 1,398 (9)% 11% Adjusted EBITDA (non-GAAP) $ 26,886 $ 20,882 $ 26,036 $ 22,077 $ 19,219 29% 40% Adjusted EBITDA (non-GAAP) % 4.67 % 3.60 % 5.18 % 4.44 % 3.83 % 107 bp 83 bp *nm - percentages are not meaningful ScanSource, Inc. Earnings Infographic Q1 FY2023 SUPPORTING MATERIALS AND RECONCILIATIONS FOR NON-GAAP FINANCIAL INFORMATION scansource.com 5 November 8, 2022

Modern Communications & Cloud, 5-Quarter Financial Summary ($ in thousands) Q1 FY23 Q4 FY22 Q3 FY22 Q2 FY22 Q1 FY22 Q/Q Y/Y Net sales $ 367,484 $ 381,664 $ 342,918 $ 367,431 $ 355,872 (4)% 3% Gross profit $ 55,081 $ 56,798 $ 52,487 $ 55,877 $ 55,878 (3)% (1)% Gross profit margin % 15.0 % 14.9 % 15.3 % 15.2 % 15.7 % 11 bp (71) bp GAAP operating income $ 13,036 $ 12,016 $ 12,294 $ 14,894 $ 16,307 8% (20)% GAAP operating income % 3.55 % 3.15 % 3.59 % 4.05 % 4.58 % 40 bp (104) bp Add: Intangible amortization expense $ 2,900 $ 2,949 $ 2,966 $ 2,956 $ 2,978 (2)% (3)% Non-GAAP operating income $ 15,936 $ 14,965 $ 15,260 $ 17,850 $ 19,285 6% (17)% Non-GAAP operating income % 4.34 % 3.92 % 4.45 % 4.86 % 5.42 % 42 bp (108) bp Reconciliation of Operating Income to Adjusted EBITDA GAAP operating income $ 13,036 $ 12,016 $ 12,294 $ 14,894 $ 16,307 8% (20)% Plus: Depreciation expense 1,046 1,172 1,015 916 1,273 (11)% (18)% Intangible amortization expense 2,900 2,948 2,966 2,955 2,978 (2)% (3)% Interest income 1,269 1,035 735 648 721 23% 76% Other income/(expense), net (623) (542) (28) (374) (276) *nm *nm EBITDA 17,628 16,629 16,982 19,039 21,003 6% (16)% Adjustments: Share-based compensation expense 760 1,162 1,098 1,426 1,173 (35)% (35)% Adjusted EBITDA (non-GAAP) $ 18,388 $ 17,791 $ 18,080 $ 20,465 $ 22,176 3% (17)% Adjusted EBITDA (non-GAAP) % 5.00 % 4.66 % 5.27 % 5.57 % 6.23 % 34 bp (123) bp *nm - percentages are not meaningful ScanSource, Inc. Earnings Infographic Q1 FY2023 SUPPORTING MATERIALS AND RECONCILIATIONS FOR NON-GAAP FINANCIAL INFORMATION scansource.com 6 November 8, 2022

Net Sales, Constant Currency (Organic Growth) - QTR Net Sales by Segment: ($ In thousands) Q1 FY23 Q1 FY22 % Change Specialty Technology Solutions: Net sales, as reported $ 576,329 $ 501,711 14.9 % Foreign exchange impact (a) 60 — Net sales, constant currency (non-GAAP) $ 576,389 $ 501,711 14.9 % Modern Communications & Cloud: Net sales, as reported $ 367,484 $ 355,872 3.3 % Foreign exchange impact (a) 613 — Net sales, constant currency (non-GAAP) $ 368,097 $ 355,872 3.4 % Consolidated: Net sales, as reported $ 943,813 $ 857,583 10.1 % Foreign exchange impact (a) 673 — Net sales, constant currency (non-GAAP) $ 944,486 $ 857,583 10.1 % Net Sales by Geography: ($ in thousands) Q1 FY23 Q1 FY22 % Change United States and Canada: Net sales, as reported $ 859,538 $ 769,771 11.7 % International: Net sales, as reported $ 84,275 $ 87,812 (4.0) % Foreign exchange impact (a) 673 — Net sales, constant currency (non-GAAP) $ 84,948 $ 87,812 (3.3) % Consolidated: Net sales, as reported $ 943,813 $ 857,583 10.1 % Foreign exchange impact (a) 673 — Net sales, constant currency (non-GAAP) $ 944,486 $ 857,583 10.1 % (a) Year-over-year sales growth excluding the translation impact of changes in foreign currency rates. Calculated by translating net sales for the quarter ended September 30, 2022 into U.S. dollars using the weighted-average foreign exchange rates for the quarter ended September 30, 2021. ScanSource, Inc. Earnings Infographic Q1 FY2023 SUPPORTING MATERIALS AND RECONCILIATIONS FOR NON-GAAP FINANCIAL INFORMATION scansource.com 7 November 8, 2022

Average Adjusted Return on Invested Capital - QTR ($ in thousands) Q1 FY23 Q4 FY22 Q3 FY22 Q2 FY22 Q1 FY22 Adjusted return on invested capital (ROIC), annualized (a) 15.6 % 14.9 % 18.0 % 17.6 % 17.5 % Reconciliation of Net Income to Adjusted EBITDA Net income from continuing operations - GAAP $ 24,042 $ 19,947 $ 23,526 $ 23,152 $ 22,073 Plus: Interest expense 3,448 1,886 1,483 1,493 1,660 Income taxes 8,241 6,267 9,044 7,257 7,358 Depreciation and amortization 7,228 7,700 7,305 7,229 7,650 EBITDA 42,959 35,800 41,358 39,131 38,741 Adjustments: Acquisition and divestiture costs — — — (53) 83 Share-based compensation 2,316 2,872 2,757 3,464 2,570 Adjusted EBITDA (numerator for Adjusted ROIC) (non-GAAP) $ 45,275 $ 38,672 $ 44,115 $ 42,542 $ 41,394 Invested Capital Calculation Equity - beginning of the quarter $ 806,528 $ 806,654 $ 768,525 $ 746,094 $ 731,191 Equity - end of quarter 827,004 806,528 806,654 768,525 746,094 Adjustments: Share-based compensation, net 1,718 2,134 2,063 2,590 1,922 Acquisition and divestiture costs — — — (53) 83 Discontinued operations net income — — — (100) — Average equity 817,625 807,658 788,621 758,528 739,645 Average funded debt (b) 336,428 233,445 205,073 200,708 197,406 Invested capital (denominator for Adjusted ROIC) (non-GAAP) $ 1,154,053 $ 1,041,103 $ 993,694 $ 959,236 $ 937,051 (a) Calculated as net income plus interest expense, income taxes, depreciation and amortization (EBITDA), annualized divided by invested capital for the period. Adjusted EBITDA reflects other adjustments for non-GAAP measures. (b) Average funded debt, which includes both continuing and discontinued operations, is calculated as the daily average amounts outstanding on our short-term and long-term interest-bearing debt. ScanSource, Inc. Earnings Infographic Q1 FY2023 SUPPORTING MATERIALS AND RECONCILIATIONS FOR NON-GAAP FINANCIAL INFORMATION scansource.com 8 November 8, 2022

Net Debt and Adjusted EBITDA Metrics ($ in thousands) Q1 FY23 Q4 FY22 Q3 FY22 Q2 FY22 Q1 FY22 Consolidated debt (Q/E) $ 326,435 $ 271,170 $ 181,500 $ 196,866 $ 197,356 Less: Consolidated cash and cash equivalents (Q/E) (40,472) (37,987) (43,539) (34,123) (55,491) Net debt (Q/E) $ 285,963 $ 233,183 $ 137,961 $ 162,743 $ 141,865 Reconciliation of Net Income to Adjusted EBITDA Net income from continuing operations - GAAP $ 24,042 $ 19,947 $ 23,526 $ 23,152 $ 22,073 Plus: Interest expense 3,448 1,886 1,483 1,493 1,660 Income taxes 8,241 6,267 9,044 7,257 7,358 Depreciation and amortization 7,228 7,700 7,305 7,229 7,650 EBITDA 42,959 35,800 41,358 39,131 38,741 Adjustments: Acquisition and divestiture costs — — — (53) 83 Share-based compensation 2,316 2,872 2,757 3,464 2,570 Adjusted EBITDA (non-GAAP) $ 45,275 $ 38,672 $ 44,115 $ 42,542 $ 41,394 Adjusted EBITDA, TTM (a) $ 170,604 $ 166,723 $ 163,350 $ 151,234 $ 138,431 Net Debt / Adjusted EBITDA, TTM (a) 1.7x 1.4x 0.8x 1.1x 1.0x (a) Adjusted EBITDA for the trailing 12-month period ScanSource, Inc. Earnings Infographic Q1 FY2023 SUPPORTING MATERIALS AND RECONCILIATIONS FOR NON-GAAP FINANCIAL INFORMATION scansource.com 9 November 8, 2022

Working Capital, 5-Quarter Summary ($ in thousands) Q1 FY23 Q4 FY22 Q3 FY22 Q2 FY22 Q1 FY22 Accounts Receivable (Q/E) $ 744,946 $ 729,442 $ 642,384 $ 613,186 $ 589,532 Days sales outstanding in receivables 71 68 69 64 62 Inventory (Q/E) $ 675,798 $ 614,814 $ 591,396 $ 562,397 $ 493,541 Inventory turns 5.1 5.6 5.1 5.7 6.3 Accounts payable (Q/E) $ 710,919 $ 714,177 $ 706,359 $ 653,190 $ 602,229 Paid for inventory days* 7.2 (0.8) (2.9) (0.5) (3.2) Working Capital (Q/E) (AR+INV-AP) $ 709,825 $ 630,079 $ 527,421 $ 522,393 $ 480,844 Cash conversion cycle 80 68 66 64 59 *Paid for inventory days represent Q/E inventory days less Q/E accounts payable days ScanSource, Inc. Earnings Infographic Q1 FY2023 SUPPORTING MATERIALS AND RECONCILIATIONS FOR NON-GAAP FINANCIAL INFORMATION scansource.com 10 November 8, 2022

Operating Income, Net Income & EPS - QTR ($ in thousands) Quarter ended September 30, 2022 Reported GAAP measure Intangible amortization expense Acquisition, divestiture and restructuring costs Non-GAAP measure SG&A expenses $71,593 — — $71,593 Operating income 34,888 4,241 — 39,129 Net income 24,042 3,161 — 27,203 Diluted EPS $0.94 $0.12 — $1.07 ($ in thousands) Quarter ended June 30, 2022 Reported GAAP measure Intangible amortization expense Acquisition, divestiture and restructuring cost Non-GAAP measure SG&A expenses $75,905 — — $75,905 Operating income 27,424 4,440 — 31,864 Net income 19,947 3,319 — 23,266 Diluted EPS $0.78 $0.13 — $0.91 ScanSource, Inc. Earnings Infographic Q1 FY2023 SUPPORTING MATERIALS AND RECONCILIATIONS FOR NON-GAAP FINANCIAL INFORMATION scansource.com 11 November 8, 2022

Operating Income, Net Income & EPS - QTR, continued ($ in thousands) Quarter ended March 31, 2022 Reported GAAP measure Intangible amortization expense Acquisition, divestiture and restructuring costs(a) Non-GAAP measure SG&A expenses $66,522 — — $66,522 Operating income 32,917 4,457 — 37,374 Net income 23,526 3,353 — 26,879 Diluted EPS $0.91 $0.13 — $1.04 ($ in thousands) Quarter ended December 31, 2021 Reported GAAP measure Intangible amortization expense Acquisition, divestiture and restructuring costs(a) Non-GAAP measure SG&A expenses $69,433 — $53 $69,486 Operating income 31,498 4,447 (53) 35,892 Net income 23,152 3,347 (53) 26,446 Diluted EPS $0.89 $0.13 — $1.02 (a) Acquisition and divestiture costs totaled less than $(0.1) million for the quarter ended December 31, 2021 and are generally nondeductible for tax purposes. ($ in thousands) Quarter ended September 30, 2021 Reported GAAP measure Intangible amortization expense Acquisition, divestiture and restructuring costs(a) Non-GAAP measure SG&A expenses $63,854 — $(83) $63,771 Operating income 30,328 4,510 83 34,921 Net income 22,073 3,394 83 25,550 Diluted EPS $0.86 $0.13 — $0.99 (a) Acquisition and divestiture costs totaled $0.1 million for the quarter ended September 30, 2021 and are generally nondeductible for tax purposes. ScanSource, Inc. Earnings Infographic Q1 FY2023 SUPPORTING MATERIALS AND RECONCILIATIONS FOR NON-GAAP FINANCIAL INFORMATION scansource.com 12 November 8, 2022

FY23 Annual Financial Outlook Reconciliation FY23 Outlook GAAP, operating income At least $132 million Intangible amortization $17 million Depreciation expense $12 million Share-based compensation expense $12 million Interest income and other income (expense), net $1 million Adjusted EBITDA (non-GAAP) At least $174 million ScanSource, Inc. Earnings Infographic Q1 FY2023 SUPPORTING MATERIALS AND RECONCILIATIONS FOR NON-GAAP FINANCIAL INFORMATION scansource.com 13 November 8, 2022