Safe Harbor Statement Statements in this presentation regarding - - PowerPoint PPT Presentation

Raymond James S4 Conference – December 2014

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 success of the acquired IBM CRM business and related integration, our strategy, investments and growth, expectations of our revenues, net income and diluted earnings per share, our performance, benefits of our business alliances, benefits of our business model, our competitive position, our expectations for

• ur operating margins, profitability, ROIC, EBITDA, features and capabilities of our

products and services, and market conditions and trends. 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 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

• bligation to update information contained in this presentation.

Safe Harbor Statement

One Company: SYNNEX’ Integrated Suite of Services

Broad line and value add distribution services Supply chain optimization, reverse logistics System integration for large scale data center deployment Global Services focused

• n process optimization,

customer engagement strategy, technology innovation and ecosystem performance

Technology Solutions

(IT Distribution and Hyve Solutions)

Concentrix 1

2014 Ranked No. 260 on Fortune 500 Seasoned executive management team with average 20+ years tech/channel expertise >50,000 employees and associates worldwide

Facts About SYNNEX

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2013 Revenues of $10.8 billion

YTD 3Q14 Revenues >$10 billion

Celebrating 109 consecutive profitable quarters; That’s >27 years! Worldwide operations

Facts About SYNNEX

109 Q 3Q14

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Continued Excellent Track Record

• 109 consecutive quarters of profitability
• Strong results in both Technology Solutions & Concentrix segments
• Trailing four quarter ROIC of 8.2% (10.6% excl. IBM acq/integration costs)

Consistent Results in a Competitive Environment

• Technology Solutions organic revenue growth of 19%
• Successfully integrating transformative IBM CRM acquisition to capitalize
• n long-term growth opportunities
• Focus and invest in higher growth, higher margin Technology Solutions

segments and higher value Concentrix industry verticals

Strong Balance Sheet and Liquidity (as of 8/31/2014)

• Debt to capitalization of 38%
• Excellent liquidity: > $400 million in cash/credit facilities to fund growth
• Significant cash flow generation from IBM CRM acquisition

FQ3 2014 Highlights

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SYNNEX Technology Solutions

SYNNEX’ Hybrid Distribution Model for the Technology Industry

Converged Solution Distribution

• Supply-chain management reduces manufacturer’s

inventory and improves time-to-market

• Demand generation enhances manufacturers’

go-to-market strategies End Users Consumers SMB Corporate Public Sector 20,000 + Resellers / System Integrators Retailers / DMRs Supply Chain Management

Design Services

Assembly And Test

Differentiation Within Technology Distribution … Channel Solutions Beyond Technology Distribution

SYNNEX Hybrid Solutions Distribution Cross-sell/Up-sell Direct Sales Tech/Customer Support

• Hybrid Solutions Distribution spans spectrum of value

and volume distribution

• One-stop shop for CE and IT resellers
• Efficient go-to-market engine for manufacturers
• Design and assembly services
• Technical support

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SYNNEX Technology Solutions Segment Overview

$0 $50 $100 $150 $200 $250 2011 2012 2013 2014 2015 2016

(1) Source: MarketLine (June 2013)

Global Technology Distributors Industry Revenue (1)

($bn) 32% - 36% 30% - 34% 15% - 19% 9% - 13% 4% - 8%

2016 global technology distributors industry revenue expected to reach $223.2 billion

SYNNEX FY2013 Revenue by Product

Peripherals IT Systems System Components Software Networking

36 - 40% 29 - 33% 15% - 19% 6% - 10%

4% - 8%

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• Cost-effective, energy-efficient servers and storage data center solutions

built to actual workloads, yet scalable

• Unique role in the innovative Open Compute Project
• Easily deployed, customized data center solutions with integration of

hardware, software, and services

Purpose-Built Data Center Solutions

A new paradigm for computing

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Channel Solutions for Real Business Challenges

Investing in Value Added Solutions

Vertical Practices Technology Practices

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Concentrix

A Division of SYNNEX Corporation

SYNNEX Differentiators in Concentrix Segment

A Global Business Services Company

• Focused on an holistic approach to…
• Process Optimization
• Customer Engagement Strategy
• Technology Innovation
• Driving unique, transformational solutions for our clients

within their ecosystem across 10 industry verticals

Benefits to SYNNEX

• Contribution of high-margin revenue
• Value-added, strategic services to vendors and customers
• Back-office sales and support to operations

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Global Consistency, Local Intimacy

Location matters, size matters, and best in class is now measured on a global scale but with local expertise

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Ireland United States Canada Uruguay Costa Rica Brazil Nicaragua Bulgaria United Kingdom Hungary Portugal Slovakia India China Japan Malaysia Singapore Australia New Zealand Hong Kong Philippines Spain UAE Colombia South Korea

50,000+ Staff 25 Countries 40+ Languages 300+ Clients

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SYNNEX Differentiators in Concentrix Segment

Voice of the Customer analysis Propensity To Buy Process Optimization Campaign Management Cross-Media Marketing Demand Generation Direct Sales Data Management Technical Support Concierge / Customer Care Web Production Back Office Administration / Billings Cross-sell / Up-sell Service Revenue Generation Loyalty Programs License Renewals Social Media

Automotive Media and Communications Banking and Financial Services Retail and eCommerce Government and Public Sector Consumer Electronics Healthcare and Pharmaceutical Technology Insurance Travel, Transportation and Tourism

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Shifting Mix to Value-Added Higher Margin Business Through Investments in Both Technology Solutions and Concentrix Segments

Revenue Growth(1) Operating Margin(1)

(1) Fiscal Year Ended 11/30; Revenue CAGR and Operating Margin improvement calculated on full years 2008-2013; Operating Margin attributable to SYNNEX from Continuing Operations. Fiscal year 2013 operating margin excludes $8.4M acquisition expenses and integration charges primarily related to our announced acquisition of the IBM CRM unit. YTD 3Q13 excludes $5.9M amortization of intangibles and $2.6M one time acquisition and integration-related expenses, and YTD 3Q14 OM excludes $38.4M amortization of intangibles and $34.6M one time acquisition and integration-related expenses

5yr CAGR 2008-13 of 7% & YTD 3Q14 up 28% OM up 41bps 2008-13 & YTD 3Q14 up 50bps

s

$7.8B 2.31% 2.81% $10.0B

Please refer to Appendix for reconciliation of GAAP to non-GAAP financial measures

$3,000 $4,500 $6,000 $7,500 $9,000 $10,500 $12,000 2008 2009 2010 2011 2012 2013 YTD 3Q13 YTD 3Q14 ($MMs) 1.00% 2.00% 3.00% 2008 2009 2010 2011 2012 2013 YTD 3Q13 YTD 3Q14

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Investing in Mix Shift to Higher Margin Segments to Drive Long-term EPS and ROIC Growth

(1) Fiscal Year Ended 11/30; EPS CAGR and ROIC calculated on full fiscal years 2008-2013.

ROIC(1,2)

(2) ROIC %’s = fiscal trailing four quarters. FY13 and 3Q14 ROIC % excludes acquisition & integration expenses.

EPS Trend(1,3)

Trend(1

(3) FY13 EPS excludes $0.16 impact from acquisition expenses and integration expenses, and a one time numerator adjustment resulting in $0.97 dilution for convertible senior notes settlement. YTD FY13 excludes $0.10 impact of amortization of intangibles and $0.05 impact of one time acquisition and integration-related expenses. YTD FY14 excludes $0.63 impact of amortization of intangibles and $0.57 impact of one time acquisition and integration-related expenses

5yr CAGR 2008-13 of 13% YTD FY14 up 42%

s

10.6% $3.08 $4.36

5yr Increase of 120bps between 2008-13

Please refer to Appendix for reconciliation of GAAP to non-GAAP financial measures

$- $1.00 $2.00 $3.00 $4.00 $5.00 2008 2009 2010 2011 2012 2013 YTD 3Q13 YTD 3Q14 0.0% 2.0% 4.0% 6.0% 8.0% 10.0% 12.0% 2008 2009 2010 2011 2012 2013 3Q14

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Exceptional Distribution Business (Technology Solutions segment)

• Low cost leader in the industry due to focused geographies, flexible cost structure
• Competitive differentiators include proprietary ERP system as real-time dashboard
• Consistent, excellent financial performance even in difficult macro-environments

Differentiated Hybrid Distribution Model

• Moving up the value chain in services, solutions & support
• Investing in high growth, high margin tech segments
• Investing in people/infrastructure to profit from Third Platform & Cloud Computing trends

Fast Growing CRM Services Business (Concentrix segment)

• Combined Concentrix’ platform CRM solutions expanded across 10 industry verticals
• Now a Top 10 player with a blue chip client base in a growing $55B market
• IBM CRM acquisition adds to strong margin profile with significant cash flow generation;

supportive of long-term ROIC goals

Growing Margins, EPS and ROIC

• Driving profit expansion from prior/current acquisitions
• Increasing revenue in high-growth adjacent markets

SNX Investment Summary

Margin Expansion Opportunities Ahead

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Questions?

Addenda

Resellers Reduce Complexity by Deploying the CLOUDSolv Platform as Their Cloud Business Platform for SMB Customers

Marketplace Operations Solutions Hosting

Plan + Pilot

Assessments

Procure + Provision

Consolidated purchasing and provisioning

Integrate + Deploy

Migrations  Upgrades

Support + Manage

Support Services  Managed Services

SYNNEX Differentiators

SYNNEX Differentiator: CLOUDSolv

RFID Tag

Connect Connect

Connected people, workforce and devices

MOBILITYSolv Enables End-to-End Enterprise Mobility (MDM, BYOD & M2M)

Wired, WiFi, RFID, Mobile

WAN

Mo Move

Push and pull information across the enterprise

MaaS, RaaS, RitC, MDM Services

Contr Control

• l

Control, manage and secure

SYNNEX Differentiator: MobilitySolv

Reconciliation of GAAP to Non-GAAP

Reconciliation of GAAP to Non-GAAP financial measures (currency in thousands except per share amounts)

Three Months Ended Nine Months Ended August 31, 2014 August 31, 2013 August 31, 2014 August 31, 2013

Diluted Net Income adjusted for Impact of conversion premium $ 44,986 $ 7,137 $ 122,954 $ 74,340 Impact of conversion premium on Net Income (1) — 39,474 — 36,409 Net income attributable to SYNNEX Corporation $ 44,986 $ 46,611 $ 122,954 $ 110,749 IBM CRM acquisition and other integration expenses, net of taxes(2) 6,327 2,064 22,176 2,064 Amortization of Intangibles(2) 11,188 1,282 24,540 3,818 Non-GAAP net income attributable to SYNNEX Corporation $ 62,501 $ 49,957 $ 169,670 $ 116,631 Diluted EPS $ 1.15 $ 0.19 $ 3.16 $ 1.97 Impact of conversion premium on EPS (1) — 1.05 — 0.96 IBM CRM acquisition and other integration expenses 0.16 0.06 0.57 0.05 Amortization of Intangibles 0.28 0.03 0.63 0.10 Non-GAAP Diluted EPS $ 1.59 $ 1.33 $ 4.36 $ 3.08

(1) For the three months ended August 31, 2013, the impact of conversion premium is the difference between the

estimated conversion premium as of May 31, 2013 and the final conversion premium settlement amount. For the nine months ended August 31, 2013, the impact of conversion premium is the difference between the estimated conversion premium as of April 2013 and the final conversion premium settlement amount.

(2) The tax effect of the non-GAAP adjustments was calculated using the applicable effective tax rate during the

periods, except for IBM CRM acquisition and other integration expenses for the three months ended August 31, 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.

Reconciliation of GAAP to non-GAAP

Effective in the first quarter of 2014, the Company realigned its business segments. Certain operations of the Company which were previously reported under the Concentrix segment and which provided inter -segment support and IT services to the Technology Solutions segment have now been aligned with and report into the Technology Solutions segment. The Concentrix segment includes the legacy Concentrix business and the newly acquired IBM customer care business. For comparability, the financial informati on presented herein reflects the impact of the preceding segment structure change for all periods presented.

Three Months Ended Nine Months Ended August 31, 2014 August 31, 2013 August 31, 2014 August 31, 2013

Consolidated: Revenue $ 3,535,202 $ 2,733,913 $ 10,015,721 $ 7,786,113 GAAP operating income $ 78,802 $ 63,499 $ 208,835 $ 171,403 IBM CRM acquisition and other integration expenses 9,932 2,596 34,581 2,596 Amortization of intangibles 17,564 1,998 38,427 5,922 Non-GAAP operating income $ 106,298 $ 68,093 $ 281,843 $ 179,921 GAAP operating margin 2.23 % 2.32 % 2.09 % 2.20 % Non-GAAP operating margin 3.01 % 2.49 % 2.81 % 2.31 % Technology Solutions Revenue $ 3,204,534 $ 2,690,265 $ 9,270,438 $ 7,656,397 GAAP operating income $ 76,937 $ 62,496 $ 210,602 $ 164,718 Amortization of intangibles 914 998 2,811 2,904 Non-GAAP operating income $ 77,851 $ 63,494 $ 213,413 $ 167,622 GAAP operating margin 2.40 % 2.32 % 2.27 % 2.15 % Non-GAAP operating margin 2.43 % 2.36 % 2.30 % 2.19 % Concentrix Revenue $ 333,796 $ 46,288 $ 754,242 $ 137,386 GAAP operating income (loss) $ 1,746 $ 826 $ (2,202 ) $ 6,516 IBM CRM acquisition and other integration expenses 9,932 2,596 34,581 2,596 Amortization of intangibles 16,650 1,000 35,617 3,019 Non-GAAP operating income $ 28,328 $ 4,422 $ 67,996 $ 12,131 GAAP operating margin 0.52 % 1.78 % (0.29 )% 4.74 % Non-GAAP operating margin 8.49 % 9.55 % 9.02 % 8.83 %

Reconciliation of GAAP to non-GAAP

Computation of GAAP diluted earnings per share

Amounts in thousands except per share amounts

Fiscal Year Ended November 30, 2013 Numerator: Net income attributable to SYNNEX Corporation

152,237 $

Less: impact of conversion premium *

(36,409)

Net income for diluted earnings per share calculation

115,828 $

Denominator: Weighted average common shares outstanding- diluted

37,800

Diluted earnings per share attributable to SYNNEX Corporation ("Diluted EPS")

3.06 $

Impact of conversion premium on diluted earnings per share

(0.97) $

No adjustments were needed to prior year diluted earnings per share. * For the fiscal year ended November 30, 2013 the impact of conversion premium of the Convertible Notes is the difference between the estimated conversion premium as of April 2013 and the final conversion premium settlement amount. The Convertible Notes were settled in the third quarter of fiscal year ended November 30, 2013.

Reconciliation of GAAP to non-GAAP

Reconciliation of GAAP to Non-GAAP financial measures Amounts in thousands November 30, 2013 November 30, 2013 Consolidated: Revenue 3,059,051 $ 10,845,164 $ GAAP operating income 69,425 $ 240,828 $ IBM CRM acquisition and other integration expenses 5,798 8,394 Non-GAAP operating income 75,223 $ 249,222 $ GAAP operating margin 2.27% 2.22% Non-GAAP operating margin 2.46% 2.30% GBS: Revenue 61,003 $ 223,600 $ GAAP operating income (loss) (2,062) $ 7,960 $ IBM CRM acquisition and other integration expenses 5,798 8,394 Non-GAAP operating income 3,736 $ 16,354 $ GAAP operating margin

• 3.38%

3.56% Non-GAAP operating margin 6.12% 7.31% Three months ended Fiscal Year Ended

Reconciliation of GAAP to non-GAAP

Reconciliation of GAAP to Non-GAAP financial measures Amounts in thousands except per share amounts November 30, 2013 November 30, 2013 Net income attributable to SYNNEX Corporation 41,488 $ 152,237 $ IBM CRM acquisition and other integration expenses, net of taxes (1) 3,922 5,986 Non-GAAP net income attributable to SYNNEX Corporation 45,410 $ 158,223 $ Diluted EPS 1.10 $ 3.06 $ IBM CRM acquisition and other integration expenses 0.10 0.16 Impact of conversion premium (2)

• 0.97

Non-GAAP Diluted EPS 1.20 $ 4.19 $ Three months ended Fiscal Year Ended

(1) The tax effect of the Non-GAAP adjustments was calculated using the tax deductible portion of the expenses and applying the entity-specific, U.S Federal and blended state tax rates. The estimated tax effect of these items was $1.9 million and $2.4 million for the three and twelve months ended November 30, 2013. (2) For the fiscal year ended November 30, 2013, the net income for the purpose of computation of diluted EPS was adjusted for the change in the estimated value of the conversion premium of the convertible notes from April 2013 through the settlement date. The convertible notes were settled in the third quarter of fiscal year 2013.

Financial Results

Record Revenue of $10.8B

• Record revenues in both

Technology Solutions and Concentrix segments, up 7.9% and 13.3% respectively, over prior year in constant dollars Non-GAAP diluted EPS of $4.19

• 5% growth over 2012

Trailing four quarters ROIC of 9.4%

• 9.7% excl. IBM acquisition costs

FY 2013 Highlights

Business Results

Technology Solutions

• Strong growth in US and Japan
• Acquisition of SuperCom Canada
• Japan profitability improvements

taking hold

• Grew TSD double digits
• Doubled Hyve Solutions sales

Concentrix

• Non-GAAP Operating Income up

21% yr/yr

• Transformative IBM CRM acquisition

announced in Sept 2013

Please refer to Appendix for reconciliation of GAAP to non-GAAP financial measures

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