a technology solutions and business services company€¦ · a technology solutions and business...

© 2018, SYNNEX Corporation. All rights reserved.

A Technology Solutions and

Business Services CompanyFiscal Fourth Quarter,

Ended November 30, 2017


Safe Harbor Statement

Statements in this presentation regarding SYNNEX Corporation which are not historical facts may be

forward-looking statements within the meaning of Section 27A of the Securities Act of 1933 and Section

21E of the Securities Exchange Act of 1934. These forward-looking statements may be identified by terms

such as believe, expect, may, will, provide, could and should and the negative of these terms or other

similar expressions. These forward-looking statements include, but are not limited to, statements regarding

our business strategy; our investments; our growth and growth opportunities; our acquisition of the

Westcon-Comstor North America and Latin America businesses and minority investment in Westcon-

Comstor EMEA and APAC businesses, including the business and financial impact thereof and additional

revenue; TAM and CAGR of IT security, network infrastructure and UCC markets for each year through

2020 and $10 billion plus of incremental TAM; the complementary market enterprise and operations of

SYNNEX and the acquired businesses; the business and financial impact of our acquisition of Tigerspike;

shareholder return; margins; revenues; profits; technology trends and IT market growth; IoT spending and

installs growth; our mix shift to higher margin technology platforms and services; Hyve Solutions and BPO

Customer Care adjacent market growth; core organic growth beyond market growth in Technology

Solutions and Concentrix-focused verticals; core CRM and BPO market disruptors, trends and CAGR;

Concentrix strategic focus and double digit adjusted operating margin in FY18; our product and service

features and capabilities; and our financial goals.

These are subject to risks and uncertainties that could cause actual results to differ materially from those

discussed in the forward-looking statements. Please refer to the documents filed with the Securities and

Exchange Commission, specifically our most recent Form 10-K and Form 10-Q, for information on risk

factors that could cause actual results to differ materially from those discussed in these forward-looking

statements. Statements included in this presentation are based upon information known to SYNNEX

Corporation as of the date of presentation and SYNNEX Corporation assumes no obligation to update

information contained in this presentation.


Facts About SYNNEX

2017

Ranked

No. 1982007, Ranked

No. 360

Consecutive,

Profitable

Quarters!

5-Year

CAGR ∼ 11%

CELEBRATING

122as of November 30, 2017

Operating Margin 3.48%

2017REVENUE

>$17.0 B

>110,000ASSOCIATES

NYSE: SNX

Operate

throughout

North and South

America, Asia-

Pacific and

Europe.

Global Leader in Magic Quadrant

Concentrix Top 5 Global CRM Business Services


Efficient Deployment of

Technology and CE

Products and Services

through Volume and Value-

Add Distribution

Deliver High-Value

Business Services and

Solutions Through Digital

and Enabling Technologies

for the Customer

Relationship Lifecycle

All End Markets, including

Public Sector, Corporate &

Enterprise, SMB and

Consumer through Value

Added Resellers and

Retailers

The World’s Largest Data

Center Customers

Web 2.0/Social Media,

Finance, Entertainment

20,000+ Reseller and Retail Customers

Hyperscale Factories in the US and UK

A new paradigm for scale computing, with

purpose-built, large scale data center solutions

Focused Footprint in the US, Canada and Japan

Represent over 300 of the World’s Leading IT and CE

Manufacturers

5 Continents

40+ Languages

SYNNEX Today

Revenue $15B Adjusted Operating Margin (1) 2.74%

Revenue $1,990M Adjusted Operating

Margin (1) 9.04%

(1) Non-GAAP Measure. See the Appendix to this presentation for Definitions of Non-GAAP Measures and

reconciliation of such measures to GAAP.

Global customers

leveraging Westcon-

Comstor brand combined

with SMB, Corporate,

Enterprise and System

Integrators

10,000+ Reseller Customers

Focused Footprint in North & Latin America

SYNNEX IT Distribution

450+ Clients

Among Top 5 Global Business Services Companies

Priority Verticals: Healthcare

and Pharmaceuticals, Banking

and Financial Services,

Insurance, Consumer

Electronics and Technology,

and Automotive

Design and Deliver Custom,

Purpose-Built Servers,

Storage, Switches

Efficient Design, Large Scale

and Worldwide Deployment

WHAT WE LOOK LIKE

WHO WE SERVE

WHAT WE DO

Represent over 130 of the World’s Leading Security, UCC and Networking Manufacturers

Single mgmt. platform

including staging,

integration, 3PL, deployment

and resource provisioning

for UCC, Network and

Security Services

100,000+ Associates Worldwide


2.37%

2.94%3.14% 3.20%

3.48%

0.00%

0.50%

1.00%

1.50%

2.00%

2.50%

3.00%

3.50%

4.00%

2013 2014 2015 2016 2017

SYNNEX Consolidated Performance 2017 Acquisitions and Investments in the Business Driving Revenue and Margin Growth

(1) Non-GAAP Measure. See the Appendix to this presentation for Definitions of

Non-GAAP Measures and reconciliation of such measures to GAAP.

Revenue ($M) Adjusted Operating Margin(1)

$10,845

$13,840 $13,338

$14,062

$17,046

$0

$2,000

$4,000

$6,000

$8,000

$10,000

$12,000

$14,000

$16,000

$18,000

2013 2014 2015 2016 2017

SYNNEX Technology

Solutions


Technology Solutions 2017 Highlights

• Revenue exceeded $15B

• Westcon-Comstor acquisition bringing $2.2B of accretive margin revenue

• Significant linecard expansion with Network, UCC and Security vendors

• Adjusted ROIC of 11.3% at consolidated level

• Generated strong cash flow from operations

• Adjusted operating income was a record $413M

• Adjusted operating margin of 2.74%

+


Technology SolutionsHigher Margin Investments in SYNNEX Cloud Solutions and Other Strategic Services Generating Revenue and Margin Expansion




2.26%2.42%

2.56% 2.55%2.74%

0.00%

0.50%

1.00%

1.50%

2.00%

2.50%

3.00%

2013 2014 2015 2016 2017

$10,666

$12,756 $11,937

$12,491

$15,071

$0

$2,000

$4,000

$6,000

$8,000

$10,000

$12,000

$14,000

$16,000

2013 2014 2015 2016 2017


$2.2T

Technology

Solutions

Technology Solutions WW Marketplace

Source: IDC Worldwide Black Book, Version 4, April 2017

IT Services

$692B

Telecom

Equipment

$47B

UCC

$38B

Peripherals

$51B

Enterprise

Storage

$44BEnterprise

Network

Infrastructure

$42B

Devices

$694B

Servers

$64B

IT Security

$42B

Software

$463B


VALUE-ADD

Design Services

Assembly & Test

Professional Services

SPECIALTY

Niche – Targeted Markets

Partner Enablement

VOLUME

Supply Chain Efficiencies

Tech Support

Inventory Management

Financing Program

SMB29-32%

Consumers10-13%

Public Sector22-25%

Enterprise32-35%

Technology Solutions: Over $15 Billion Business


Technology Solutions Global CoverageStrategically positioned for growth

United States

Colombia

UnitedKingdom

UAE

Japan

Portugal

Spain

Saudi

Arabia

China

New Zealand

Philippines

Malaysia

Canada

Australia

Singapore

Thailand

Hong Kong

Taiwan

Indonesia

VietnamNigeria

Ghana

Senegal

Morocco

Kenya

Tanzania

MauritiusZambia

Angola

Namibia

South Africa

Johannesburg

Durban

Port ElizabethCape Town

France

TurkeyItaly

Greece

PolandGermany

Finland

Sweden

Norway

Czech Republic

DenmarkNetherlands

Belgium

SwitzerlandAustria

Mexico

Brazil

Uruguay

Chile

Peru

Ecuador

Venezuela

Argentina

Current Technology

Solutions business in

U.S., Canada, Japan, Mexico

and Latin America*Serving all countries in South America

10% Interest Westcon-ComstorEMEA and APAC businesses serving Europe and Asia markets

Guatemala

Costa Rica

Panama

DominicanRepublic

Uruguay


SYNNEX’ Comprehensive Cloud Strategy

ENTERPRISE HYPERSCALECOMPUTING

SMALL-TO-MEDIUM BUSINESSES

End-to-end Platform, XaaS, Subscription-Based

Deployment into SMB

Building out the Hyperscale

Datacenter with Custom Built,

Energy Efficient Solutions

Enabling Private and

Hybrid on Premise

Cloud-Based Architecture

Marketplace

Community

Applications

InfrastructureElectronic Software

Download

Ability to Burst to

the Public Cloud

OpenStack Cloud

Computing Platform

IaaS Utility Finance

Open Compute Project

High-Performance Computing

Design & Integration Capabilities


Concentrix 2017 Highlights

• Record revenue ~ $2B

• Customer satisfaction and innovation scores continue to climb

+ • Signed over $3.5B in deals

• Closed 44 new logos total, up 33% Year to year

• Generated strong cash flow from operations

• Record adjusted EBITDA ~ $246M

• Record adjusted Operating Margin over 9%



ConcentrixStrategic Acquisitions and Investment in Key Business Units Uniquely Positions Concentrix on a Global Basis



8.28%

8.86%

8.00%8.27%

9.04%

2.50%

3.50%

4.50%

5.50%

6.50%

7.50%

8.50%

9.50%

2013 2014 2015 2016 2017

$189

$1,096

$1,417

$1,588

$1,990

$0

$500

$1,000

$1,500

$2,000

$2,500

2013 2014 2015 2016 2017


Concentrix at a Glance


Priority Industry Verticals and Service OfferingsPriority Industry Verticals and Service Offerings

Banking andFinancial Services

Payer (Member)

Support

Provider Service

Policy

Management

Enrollment

Services

Claims Auditing

& Payments

Consumer Electronics and

Technology

Collections &

Debit

Management

Risk Management

& Compliance

Credit Card

Processing

Payment

Services

Customer

Acquisition

Life & Health

Policy

Administration

Policy Issuance

Claims

Adjudication

Payment

Processing

Benefit Payments

Technology Platforms

Analytics

Consulting/Transformation

Digital Customer Engagement

Insurance

Digital

Production &

Marketing

Channel

Optimization

Loyalty

Management

Customer

Experience

Management

Acquisition &

Upsell Support

Development &

Use of Telematics

To Provide

Improved

Business

Solutions

Enabling Dealer

Channel Data To

Connect With Auto

Manufacturers,

Dealers &

Customers

Technical &

Customer Support

AutomotiveHealthcare & Pharmaceuticals


Source: IDC 2017 research, HfS 2017 research

2018 Market Forecasts – Opportunities Larger Than Just CRM

$71BCRMBig Data & Analytics

$170B

Consulting

$37B Maintenance

Services

$137B

Back Office BPO

$119B

Vertical BPO

$206B

RPA

$629M

Artificial

Intelligence

$19.3B

Digital Services

$100B

IoT

$772B

Page 20


CRM Marketplace Disruptors

`

Core Market

Market Trends

Disruptive Areas

Growing Significantly Faster Than

Rest of Market

Core CRM market today at $71B

Expected to grow at ~3-5%

CAGR over next 5 years

BPO market at $180B, growing

at 4.8% CAGR, represents

adjacent opportunities

Digital

AI

RPA

Alternative

Workforce

Solutions

Drive towards increased

digital / non-human

(automation, AI) handling of

transactions

Higher value service offerings

and vertical expertise

becoming more critical

Mobile intelligent apps / self

service

Increased M&A activity in

digital / RPA / AI

Page 21


Concentrix Strategic Focus

Invest in the Future

Leverage Strengths Across Concentrix

Business Units

Double Digit Adjusted Operating

Margins in FY 18

Drive Brand Recognition As the

Market Leader

Continue to Invest in Key Verticals While Expanding Margins

• Continued growth in higher margin strategic verticals

• Growing share with strategic relationships

• Continue to invest in high value services• Ongoing optimization of network

• AI / Chatbots

• RPA

• Digital

• Workforce Alternatives

• Gig Platform – Tigerspike

opportunity across large customer

base

+

• Customers

• Footprint

• Technologies

• Capabilities

• Strong signings focused on disrupted technology solutions

Page 22


Recognized as Leaders by Many Industry Experts & Our Clients

Best Service Experience – Largest China Communications Company

Best Customer Effort Score – Global Technology Company

Outstanding Customer Service – Largest India Insurance Company

Customer Obsession Awards – Global eRetailer

Top Individual Contributors – Global Financial Company

Best Performing Business Partner – Top Healthcare Provider

Industry Awards

Client Recognition

Analyst Relations

Page 23

SYNNEX:

Focused on the

Future


Continued Mix Shift to Higher Margin

Technology Platforms and Services

Continued Growth and Margin Expansion

Revenue Growth Platform Sustainable Margin Expansion

Deeper Penetration of CNX in Priority

High Margin VerticalsAdjacent Market

Growth –Hyve Solutions,

BPO beyond Customer Care

Hyve Solutions

Leverage Scale in TS and

CNX to Drive More Efficiency

Core Organic Growth beyond

Market Growth in TS and CNX

Focused VerticalsContinued

Optimization of Core

Businesses

Emerging Technologies–

Third Platform/IoT/Services and CNX

Proprietary Platforms

Page 25


Investment Highlights

Strong Track Record of Revenue Growth,

Margin Expansion and Strategic Investments

WHAT WE ACCOMPLISHED

Superior Total Shareholder Return

Seasoned Management with In-Depth Industry

Experience

Recognized Leadership in Customer Care BPO

and Technology Distribution

Penetrated Growth Markets

Customer-Centric Business Strategy Focused on

Growth Markets

Page 26

Appendix


Use of Non-GAAP Financial Measures

To supplement the financial results presented in accordance with GAAP, SYNNEX uses adjusted selling,

general and administrative expenses, adjusted operating income, adjusted operating margin, adjusted

earnings before interest, taxes, depreciation and amortization, non-GAAP net income attributable to

SYNNEX Corporation, and non-GAAP diluted earnings per share (“EPS), and adjusted return on invested

capital, which are non-GAAP financial measures that exclude the amortization of intangible assets,

restructuring costs, acquisition-related and integration expenses and the related tax effects thereon. These

non-GAAP measures provide investors with an additional tool to evaluate operating results. Because these

non-GAAP measures are not calculated in accordance with GAAP, they may not necessarily be

comparable to similarly titled measures employed by other companies. These non-GAAP financial

measures should not be considered in isolation or as a substitute for the comparable GAAP measures, and

should be read only in conjunction with the Company's consolidated financial statements prepared in

accordance with GAAP.

SYNNEX management uses the non-GAAP financial measures internally to understand, manage and

evaluate the business, to establish operational goals, and in some cases for measuring performance for

compensation purposes. SYNNEX management believes it is useful for the company and investors to

review, as applicable, both GAAP information, and the non-GAAP measures in order to assess the

performance of SYNNEX’ continuing businesses and for planning and forecasting in future periods. These

non-GAAP measures are intended to provide investors with an understanding of SYNNEX’ operational

results and trends that more readily enable investors to analyze SYNNEX' base financial and operating

performance and to facilitate period-to-period comparisons and analysis of operational trends. The

management of SYNNEX believes the non-GAAP financial measures are useful to investors in allowing for

greater transparency with respect to supplemental information used by management in its financial and

operational decision-making. A reconciliation of SYNNEX’ non-GAAP financial information to GAAP is set

forth in the supplemental information tables in the following slides.

Page 28


Definition of Non-GAAP Financial Measures

Non-GAAP financial measures included in this presentation are:

Adjusted operating income, which is operating income as adjusted to

exclude acquisition-related and integration expenses, restructuring costs

and the amortization of intangible assets.

Adjusted operating margin, which is Adjusted operating income as defined

above, divided by Revenue.

Non-GAAP diluted EPS, which is diluted EPS excluding the per share, tax

effected impact of (i) acquisition-related and integration expenses, (ii)

restructuring costs, and (iii) amortization of intangible assets.

© 2018, SYNNEX Corporation. All rights reserved. Page 29


Reconciliation of GAAP to Non-GAAP Financial Measures(Amounts in thousands, except per share amounts)

2012 2013 2014 2015 2016 2017

Consolidated

Revenue 10,285,507$ 10,845,164$ 13,839,590$ 13,338,397$ 14,061,837$ 17,045,700$

Operating Income 255,012$ 240,828$ 308,507$ 354,552$ 379,596$ 508,965$

Acquisition-related and other integration expenses - 8,394 43,036 10,109 10,393 4,781

Restructuring costs - - - - 4,255 -

Amortization of intangibles 8,289 7,953 55,161 54,756 55,490 79,181

Adjusted operating income 263,301$ 257,175$ 406,704$ 419,417$ 449,734$ 592,927$

Depreciation expense 16,341 16,509 36,538 48,754 65,803 80,705

Adjusted EBITDA 279,642$ 273,684$ 443,242$ 468,171$ 515,537$ 673,632$

Operating margin 2.48% 2.22% 2.23% 2.66% 2.70% 2.99%

Adjusted operating margin 2.56% 2.37% 2.94% 3.14% 3.20% 3.48%

Technology Solutions

Revenue 10,135,795$ 10,666,215$ 12,755,514$ 11,936,660$ 12,490,718$ 15,071,185$

Operating income 248,924$ 237,290$ 305,499$ 302,950$ 315,485$ 394,320$

Acquisition-related and integration expenses 3,724$



GAAP operating margin 2.46% 2.22% 2.40% 2.54% 2.53% 2.62%


Concentrix

Revenue 159,522$ 189,463$ 1,096,214$ 1,416,670$ 1,587,736$ 1,990,180$

Operating income 6,376$ 3,249$ 2,455$ 51,127$ 63,877$ 114,623$

Acquisition-related and other integration expenses - 8,394 43,036 10,109 10,393 1,057

Restructuring costs - - - - 4,255 -



GAAP operating margin 4.00% 1.71% 0.22% 3.61% 4.02% 5.76%


Fiscal year ended November 30,

Page 30


Reconciliation of GAAP to Non-GAAP Financial Measures(Amounts in thousands, except per share amounts)

(Continued)

2012 2013 2014 2015 2016 2017

Diluted EPS(1)3.96$ 3.02$ 4.57$ 5.24$ 5.88$ 7.51$

Acquisition-related and other integration expenses 0.22 1.09 0.25 0.26 0.12

Restructuring charges - - - - 0.11 -

Amortization of intangibles 0.22 0.21 1.40 1.38 1.39 1.97

Impact of conversion premium(2)- 0.97 - - - -

Income taxes related to the above(3)(0.08) (0.14) (0.91) (0.59) (0.60) (0.74)

Non-GAAP Diluted EPS(4)4.10$ 4.28$ 6.16$ 6.28$ 7.04$ 8.86$

Fiscal year ended November 30,

(3) The tax effect of the non-GAAP adjustments was calculated using the effective year-to date tax rate during the respective fiscal periods, except for the

acquisition-related and other integration expenses for fiscal year 2013, which was calculated using the tax deductible portion of the expenses and applying the

entity-specific, U.S. Federal and blended state tax rates.

(4) The sum of the components of Non-GAAP Diluted EPS may not agree to totals, as presented, due to rounding.

(2) For fiscal year 2013, net income attributable to SYNNEX Corporation for the purpose of computation of diluted EPS was adjusted for the change in the

estimated value of the conversion premium of convertible notes from April 2013 through the final settlement date. The convertible notes were settled in the third

quarter of fiscal year 2013.

(1) Diluted EPS for LTM 2017 represents the sum of the Diluted EPS of each of the last four quarters ended on May 31, 2017.

Page 31

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