Download - A Technology Solutions and Business Services Company · • Growth expected approximately 4.6% CAGR • Large players consolidating the market through recent M&A • BPO market approximately

A Technology Solutions and

Business Services Company

Stifel Technology Conference

June 5, 20171

Safe Harbor StatementStatements 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, shareholder return, margins, revenues, technology

trends and IT market growth, IoT spending and installs growth, CRM BPO market and 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, our product and service features and capabilities, our target revenue growth range, our

target adjusted operating margin 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.

2

© 2017, SYNNEX Corporation. All rights reserved.

Facts About SYNNEX

2016

Ranked

No. 212

Consecutive,

Profitable

Quarters!

Operate

throughout

North and South

America, Asia-

Pacific and

Europe.

5-Year

CAGR 6.2%>100,000

ASSOCIATES

CELEBRATING

119as of February 28, 2017

2016REVENUE

>$14 B

NYSE: SNX

3


• A new paradigm for scale

computing, with purpose-

built, large scale data center

solutions

• Hyperscale Factories in the

US and UK

The World’s Largest Data

Center Customers

• Web 2.0/Social Media,

Finance, Entertainment

Design and Deliver Custom, Purpose-Built Servers, Storage, Switches

• Efficient Design, Large Scale and Worldwide Deployment

• Focused Footprint in the US, Canada and Japan

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

• 20,000+ Reseller and Retail Customers

Efficient Deployment of Technology and CE Products and Services through Volume and Value-Add Distribution

• 100,000 Associates Worldwide

• 6 Continents

• 40+ Languages

• Among Top 5 Global Business

Services Companies

Priority Verticals: Healthcare and Pharmaceuticals, Banking and Financial Services, Insurance, and Consumer Electronics and Technology

Deliver High-Value Business Services and Solutions for the Customer Relationship Lifecycle

SYNNEX Today

All End Markets, including Public

Sector, Corporate & Enterprise,

SMB and Consumer through

Value Added Resellers and

Retailers

IT Distribution

Markets We Serve

What We Do

What We Look Like

4


SYNNEX Technology

Solutions

5


Technology Solutions: $12.8 Billion Business

FOCUSED

MARKETS

DIVISIONS

END MARKETS SERVED

SMB35-40%

Consumers15-20%

Public Sector30-35%

Enterprise20-25%

• Resellers

• VARs

• MSPs

• CSPs

• DMRs

• System

Integrators

Business

Sector

Resellers

CE Retailers

• Food &

Drug

• Military

• Broadcast

• Retailers

• E-Tailers

• Big Box

6© 2017, SYNNEX Corporation. All rights reserved.

Growth is in 3rd Platform Technologies

2nd PLATFORM

3rd PLATFORM

Emerging

Distribution Model

1. Cloud Computing

2. Enterprise Mobility

3. Big Data & Analytics

4. Consumer Technology

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IoT spending will grow from $692.6 billion in 2015 to $1.46 trillion in 2020 with a CAGR of 16.1%. The install

base of IoT endpoints will grow from 12.1 billion in 2015 to more than 30 billion devices in 2020.

Source: IDC – Worldwide Internet of Things Forecast Update 2016-2020, May 2016

Cloud Computing

Everything-as-a-Service

Infrastructure & Business Continuity

Security

Professional Services

PaaS SaaSIaaS

Big Data

Data Warehousing

Professional Services

Business Intelligence

Predictive and Applied Analytics

Data Center Infrastructure

Consumer Technology

Home Automation

Wearables

Home Healthcare

Entertainment

SYNNEX Invests in Growth Technologies

Personal Devices

M2M

Connectivity

Solutions

Security

Device

Management

EnterpriseMobility

Internet of Things Driving Growth



SYNNEX’ Comprehensive Cloud Strategy

End-to-end Platform, XaaS, Subscription-Based Deployment into SMB

• Marketplace

• Community

• Applications

• Infrastructure

• Electronic Software

Download

Enabling Private and

Hybrid on Premise

Cloud-Based

Architecture

• Ability to Burst to the Public Cloud

• OpenStack Cloud Computing Platform

• IaaS

• Utility Finance

ENTERPRISE HYPERSCALE COMPUTING

Building out the

Hyperscale Datacenter

with Custom Built,

Energy Efficient

Solutions

• Open Compute Project

• High-Performance Computing

• Design & Integration Capabilities

SMALL-TO-MEDIUM BUSINESSES

9

Multi-Faceted

Corporate, Commercial,

Consumer, Cloud,

Services Value-Added

Distributor

*$12.8B RevenueAdj. Op. Margin: 2.59%

Commercial Desktop,

Peripheral & Component Distributor

$5B Revenue Adj. Op.

Margin: 1.62%

• Growth in Changing Environment

• Investments in Where Markets are Headed

• Solid Base for Next Step-Up

10

*Trailing 12 months ended February 28, 2017.

Technology SolutionsGrowth and Diversification through Organic Investments and Acquisition


11


Concentrix At-A-Glance


Priority 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


Service

Optimization

Revenue

Generation

Customer

Experience

DIGITAL CUSTOMER ENGAGEMENT

CUSTOMER CARE AND TECHNICAL SUPPORT

TECHNOLOGY AND ADVANCED ANALYTICS

CONSULTING AND DESIGN THINKING

FRONT OFFICE BACK OFFICE

CustomerPriorities

EnterprisePriorities

• Brand Awareness

• Profit

• Growth

• Stakeholder Value

• Employee

Satisfaction

• Community

Involvement

CUSTOMER LIFECYCLE MANAGEMENT

LOYALTY PROGRAMS AND PRODUCT RENEWALS

CONNECTED CUSTOMER ENABLEMENT

PROCESS OPTIMIZATION AND AUTOMATION

MARKETING OPTIMIZATION

LEAD GENERATION AND MARKETING EXECUTION

End-to-End Customer Engagement SolutionsHolistic approach across front and back office to improve the customer experience and drive higher value for our clients

• Positive

Experience

• Minimal Level

of Effort

• Meets

Expectations

• Personalized

• Value Received


Annualized revenue for Concentrix is approximately $1.9 billion, including recent

acquisition of Minacs on August 1, 2016.

*Trailing 12 months ended February 28, 2017

ConcentrixTransformation from Niche ServiceOfferings to Global High Value Innovator

• Consultative Approach

• Extensive Domain Expertise

• Deep Relationships

Revenue$7M

15

Top Ten BPO CRM Service Provider

*$1.7B RevenueAdj. Op. Margin: 8.67%


CRM BPO Large and Growing Market

$61 $64 $67

$70 $73

$77 $172 $178

$188 $197

$208 $219

$0

$50

$100

$150

$200

$250

2015 2016 2017 2018 2019 2020

Non-CRM CRM

IDC Market Summary

• CRM approximately $64B market

• Growth expected

approximately 4.6% CAGR

• Large players consolidating the

market through recent M&A

• BPO market approximately

$178B to $188B represents

adjacent growth opportunities

• BPO grow expected at

4.9% CAGR

Source: IDC Worldwide and U.S. Business Process

Outsourcing Services Forecast, 2016-2020, April 2016.

16

IDC Worldwide BPO Market

Billions


Financials

17


Contribution from Business Segments – LTM 2017Concentrix Adjusted Operating Income is 31% of SYNNEX Adjusted Operating Income

Concentrix$1.7B

Revenue Adjusted Operating Income(1)

Technology Solutions

$12.8BConcentrix

$149MTechnologySolutions

$331M

LTM is the last twelve months ended February 28, 2017.

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

GAAP Measures and reconciliation such measures to GAAP.

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Revenue Growth ($M) Adjusted Operating Margin(1)


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

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

Strong Performance Due To Effective Pursuit of

Initiatives In Focus Growth Areas In Both Segments

$10,845

$13,840$13,338

$14,062 $14,457

$0

$2,000

$4,000

$6,000

$8,000

$10,000

$12,000

$14,000

$16,000

2013 2014 2015 2016 LTM 2017

2.37%

2.94%3.14% 3.20% 3.32%

0.00%

0.50%

1.00%

1.50%

2.00%

2.50%

3.00%

3.50%

2013 2014 2015 2016 LTM 2017

19




$10,666

$12,756

$11,937

$12,491

$12,753

$9,500

$10,000

$10,500

$11,000

$11,500

$12,000

$12,500

$13,000

2013 2014 2015 2016 LTM 2017

2.26%2.42%

2.56% 2.55% 2.59%

0.00%

0.50%

1.00%

1.50%

2.00%

2.50%

3.00%

2013 2014 2015 2016 LTM 2017

Higher Margin Investments in SYNNEX Cloud Strategy Generating

Revenue and Margin Expansion




20


Concentrix


Strategic Acquisitions and Investment in Key Growth Verticals

Uniquely Positions Concentrix on a Global Basis

$189

$1,096

$1,417

$1,588$1,721

$0

$200

$400

$600

$800

$1,000

$1,200

$1,400

$1,600

$1,800

$2,000

2013 2014 2015 2016 LTM 2017

8.28%

8.86%

8.00%

8.27%

8.67%

7.40%

7.60%

7.80%

8.00%

8.20%

8.40%

8.60%

8.80%

9.00%

2013 2014 2015 2016 LTM 2017




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(1)Refer to Appendix for calculation.(2)Total liquidity at February 28, 2017 is calculated as the sum of our cash and cash

equivalents, short-term investments and the unused portion of our available borrowing

facilities including any accordion features thereon.(3)Approximate dollar value of shares that may yet be purchased under the Program

Strong Balance Sheet Creates Financial Flexibility

As of February 28, 2017

Cash, Cash Equivalents, Short-Term Investments $219M

Working Capital Velocity(1) 8X

Total Liquidity(2) $1.1B

Total Borrowings $1.0B

Debt to Capitalization(1) 33.1%

Dividend Yield (Annualized)(1) 0.8%

3-Year $100 million Share Repurchase Program(3) $84M


Adjusted EBITDA Growing at a Faster Rate than Revenues

Adjusted EBITDA(1) ($Millions)

Five Year CAGR 2011-2016 of 12.9%

$274

$443 $468

$516

$551

$0

$100

$200

$300

$400

$500

$600

2013 2014 2015 2016 LTM 2017



Non-GAAP Measures and reconciliation of such measures to GAAP.23


SYNNEX:Focused on the Future


Deeper Penetration of

CNX in Priority High

Margin Verticals

Hyve Solutions

Leverage Scale in

TS and CNX to Drive

More Efficiency

Continued

Optimization of

Core Businesses

Continued Mix Shift

to Higher Margin

Technology Platforms

and Services

Adjacent Market Growth –

Hyve Solutions, BPO

beyond Customer Care

Core Organic Growth

beyond Market Growth

in TS and CNX

Focused Verticals

Emerging

Technologies–

Third Platform/IoT/

Services and CNX

Proprietary Platforms

Continued Growth and Margin Expansion


Target Revenue Growth Range Target Adjusted Operating Margin

Underlying Financial Goals: Grow EPS Faster than Revenue Growth

ROIC Consistently Higher than WACC

Shareholder Return Superior to our Peers and in Top Tier of Public Companies

0

1

2

3

4

5

6

7

8

9

10

11

12

TechnologySolutions

Concentrix Consolidated

12%

11%

10%

9%

8%

7%

6%

5%

4%

3%

2%

1%

0 0

1

2

3

4

5

6

7

8

9

10

11

12

TechnologySolutions

Concentrix Consolidated

12%

11%

10%

9%

8%

7%

6%

5%

4%

3%

2%

1%

0

+20 to 60 bps

Outlook through FY 2017


Investment Highlights

Seasoned Management with In-Depth Industry Experience

Strong Track Record of Revenue Growth, Margin Expansion and Strategic Investments

Superior Total Shareholder Return

Customer-Centric Business Strategy Focused on Growth Markets

Recognized Leadership in Customer Care BPO and Technology Distribution

27


Appendix

28


Use of Non-GAAP Financial Measures

To supplement the financial results presented in accordance with GAAP, SYNNEX uses Adjusted operating

income, Adjusted operating margin, and Adjusted Earnings Before Interest, Taxes, Depreciation and

Amortization ("EBITDA"), 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 table at the end of this presentation.

29


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.

Adjusted EBITDA, which is Adjusted operating income as defined above,

plus depreciation.

30


Reconciliation of GAAP to Non-GAAP Financial Measures

(Amounts in Thousands)

LTM

2011 2012 2013 2014 2015 2016 as of February 28, 2017

Consolidated

Revenue 10,409,840$ 10,285,507$ 10,845,164$ 13,839,590$ 13,338,397$ 14,061,837$ 14,457,084$

Operating Income 256,228$ 255,012$ 240,828$ 308,507$ 354,552$ 379,596$ 405,729$

Acquisition-related and other integration expenses - - 8,394 43,036 10,109 10,393 10,002

Restructuring Charges - - - - - 4,255 4,255

Amortization of intangibles 7,584 8,289 7,953 55,161 54,756 55,490 60,273

Adjusted operating income 263,812$ 263,301$ 257,175$ 406,704$ 419,417$ 449,734$ 480,259$

Depreciation expense 17,089 16,341 16,509 36,538 48,754 65,803 70,789

Adjusted EBITDA 280,901$ 279,642$ 273,684$ 443,242$ 468,171$ 515,537$ 551,048$

Operating margin 2.46% 2.48% 2.22% 2.23% 2.66% 2.70% 2.81%

Adjusted operating margin 2.53% 2.56% 2.37% 2.94% 3.14% 3.20% 3.32%


Revenue 10,289,877$ 10,135,795$ 10,666,215$ 12,755,514$ 11,936,660$ 12,490,718$ 12,752,507$

Operating income 246,610$ 248,924$ 237,290$ 305,499$ 302,950$ 315,485$ 328,235$



GAAP operating margin 2.40% 2.46% 2.22% 2.40% 2.54% 2.53% 2.57%


Concentrix

Revenue 127,026$ 159,522$ 189,463$ 1,096,214$ 1,416,670$ 1,587,736$ 1,721,208$

Operating income 9,618$ 6,376$ 3,249$ 2,455$ 51,127$ 63,877$ 77,332$

Acquisition-related and other integration expenses - - 8,394 43,036 10,109 10,393 10,002

Restructuring Charges - - - - - 4,255 4,255



GAAP operating margin 7.57% 4.00% 1.71% 0.22% 3.61% 4.02% 4.49%


Fiscal year ended November 30,

31


Calculation of Financial Metrics(Amounts in Thousands, except per share amounts)

as of Feburary 28, 2017

Working Capital Velocity

Revenue (last twelve months) (a) 14,457,084$

Average working capital

Accounts receivable (last 5-quarters average) (b) 1,626,125$

Inventories (last 5-quarters average) (c) 1,563,171

Accounts payable (last 5-quarters average) (d) (1,468,567)

Average working capital (e)=(b)+(c)+(d) 1,720,729$

Working Capital Velocity (f)=(a)/(e) 8X

Debt to Capitalization

Total borrowings, excluding book overdraft (g) 1,006,485$

Total equity (h) 2,038,219

Debt to capitalization (i)=(g)/((g)+(h)) 33.1%

Dividend Yield (Annualized)

Per share dividend declared in the last twelve months (j) 0.90$

Stock price (k) 116.92

Dividend yield (annualized) (l)=(j)/(k) 0.8%

The following table presents the calculation for working capital velocity, debt to capitalization ratio and dividend yield

(Annualized).

32


Download - A Technology Solutions and Business Services Company · • Growth expected approximately 4.6% CAGR • Large players consolidating the market through recent M&A • BPO market approximately

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