A Technology Solutions and Business Services Company Fiscal 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. Page 2
Facts About SYNNEX 2017 Ranked No. 198 2007, Ranked No. 360 NYSE: SNX Global Leader in Magic Quadrant CELEBRATING 122 Consecutive, Profitable Quarters! as of November 30, 2017 Operating Margin 3.48% Operate throughout North and South America, Asia- Pacific and Europe. >110,000 ASSOCIATES Concentrix Top 5 Global CRM Business Services >$17.0 B 2017 REVENUE 5-Year CAGR 11% Page 3
SYNNEX Today SYNNEX IT Distribution 100,000+ Associates Worldwide Focused Footprint in North & Latin America Represent over 130 of the World s Leading Security, UCC and Networking Manufacturers 10,000+ Reseller Customers 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 A new paradigm for scale computing, with purpose-built, large scale data center solutions Hyperscale Factories in the US and UK WHAT WE LOOK LIKE 450+ Clients 5 Continents 40+ Languages Among Top 5 Global Business Services Companies Global customers leveraging Westcon- Comstor brand combined with SMB, Corporate, Enterprise and System Integrators 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 WHO WE SERVE Priority Verticals: Healthcare and Pharmaceuticals, Banking and Financial Services, Insurance, Consumer Electronics and Technology, and Automotive Single mgmt. platform including staging, integration, 3PL, deployment and resource provisioning for UCC, Network and Security Services Efficient Deployment of Technology and CE Products and Services through Volume and Value- Add Distribution Design and Deliver Custom, Purpose-Built Servers, Storage, Switches Efficient Design, Large Scale and Worldwide Deployment WHAT WE DO Deliver High-Value Business Services and Solutions Through Digital and Enabling Technologies for the Customer Relationship Lifecycle Revenue $15B Adjusted Operating Margin (1) 2.74% Revenue $1,990M Adjusted Operating Margin (1) 9.04% (1) Non-GAAP Measure. See the Appendix to this presentation for Definitions of Non-GAAP Measures and reconciliation of such measures to GAAP. Page 4
SYNNEX Consolidated Performance 2017 Acquisitions and Investments in the Business Driving Revenue and Margin Growth Revenue ($M) Adjusted Operating Margin (1) $18,000 $16,000 $14,000 $12,000 $10,000 $8,000 $6,000 $4,000 $10,845 $13,840 $13,338 $14,062 $17,046 4.00% 3.50% 3.00% 2.50% 2.00% 1.50% 1.00% 2.37% 2.94% 3.14% 3.20% 3.48% $2,000 0.50% $0 2013 2014 2015 2016 2017 0.00% 2013 2014 2015 2016 2017 (1) Non-GAAP Measure. See the Appendix to this presentation for Definitions of Non-GAAP Measures and reconciliation of such measures to GAAP. Page 5
SYNNEX Technology Solutions
Technology Solutions 2017 Highlights Revenue exceeded $15B Westcon-Comstor acquisition bringing $2.2B of accretive margin revenue + Adjusted ROIC of 11.3% at consolidated level Generated strong cash flow from operations Adjusted operating income was a record $413M Adjusted operating margin of 2.74% Significant linecard expansion with Network, UCC and Security vendors Page 7
Technology Solutions Higher Margin Investments in SYNNEX Cloud Solutions and Other Strategic Services Generating Revenue and Margin Expansion Revenue ($M) Adjusted Operating Margin (1) $16,000 $14,000 $12,000 $10,000 $10,666 $12,756 $11,937 $12,491 $15,071 3.00% 2.50% 2.00% 2.26% 2.42% 2.56% 2.55% 2.74% $8,000 1.50% $6,000 $4,000 $2,000 1.00% 0.50% $0 2013 2014 2015 2016 2017 0.00% 2013 2014 2015 2016 2017 (1) Non-GAAP Measure. See the Appendix to this presentation for Definitions of Non-GAAP Measures and reconciliation of such measures to GAAP. Page 8
Technology Solutions WW Marketplace UCC $38B Peripherals $51B Telecom Equipment $47B Enterprise Storage $44B Enterprise Network Infrastructure $42B IT Services $692B $2.2T Technology Solutions Devices $694B Software $463B Servers $64B IT Security $42B Source: IDC Worldwide Black Book, Version 4, April 2017 Page 9
Technology Solutions: Over $15 Billion Business VALUE-ADD Design Services Assembly & Test Professional Services SMB 29-32% SPECIALTY Niche Targeted Markets Partner Enablement VOLUME Supply Chain Efficiencies Tech Support Inventory Management Financing Program Enterprise 32-35% Public Sector 22-25% Consumers 10-13% Page 10
Technology Solutions Global Coverage Strategically positioned for growth Sweden Norway Finland Japan Canada United States United Denmark Netherlands Kingdom Belgium Poland Germany France Austria Czech Republic Switzerland Spain Italy Turkey Portugal Greece China Mexico Current Technology Solutions business in U.S., Canada, Japan, Mexico and Latin America *Serving all countries in South America Guatemala Costa Rica Panama 10% Interest Westcon-Comstor EMEA and APAC businesses serving Europe and Asia markets Colombia Ecuador Peru Dominican Republic Venezuela Chile Argentina Brazil Uruguay Uruguay Senegal Morocco Ghana Namibia South Africa Cape Town Nigeria Angola Zambia Saudi Arabia Kenya Tanzania Johannesburg Durban Port Elizabeth UAE Mauritius Thailand Hong Kong Taiwan Philippines Vietnam Malaysia Singapore Indonesia Australia New Zealand Page 11
SYNNEX Comprehensive Cloud Strategy Marketplace OpenStack Cloud Computing Platform Open Compute Project Applications Community Infrastructure Electronic Software Download Ability to Burst to the Public Cloud IaaS Utility Finance Design & Integration Capabilities High- Performance Computing SMALL-TO-MEDIUM BUSINESSES End-to-end Platform, XaaS, Subscription-Based Deployment into SMB ENTERPRISE Enabling Private and Hybrid on Premise Cloud-Based Architecture HYPERSCALE COMPUTING Building out the Hyperscale Datacenter with Custom Built, Energy Efficient Solutions Page 12
Concentrix 2017 Highlights Record revenue ~ $2B + 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 ~ $246M Record adjusted Operating Margin over 9% Customer satisfaction and innovation scores continue to climb Page 14
Concentrix Strategic Acquisitions and Investment in Key Business Units Uniquely Positions Concentrix on a Global Basis Revenue ($M) Adjusted Operating Margin (1) $2,500 $2,000 $1,500 $1,000 $1,096 $1,417 $1,588 $1,990 9.50% 8.50% 7.50% 6.50% 5.50% 8.28% 8.86% 8.00% 8.27% 9.04% 4.50% $500 $189 3.50% $0 2013 2014 2015 2016 2017 2.50% 2013 2014 2015 2016 2017 (1) Non-GAAP Measure. See the Appendix to this presentation for Definitions of Non-GAAP Measures and reconciliation of such measures to GAAP. Page 15
Concentrix at a Glance Page 16
Priority Industry Verticals and Service Offerings Healthcare & Pharmaceuticals Banking and Financial Services Insurance Consumer Electronics and Technology Automotive Payer (Member) Support Provider Service Policy Management Enrollment Services Claims Auditing & Payments 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 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 Digital Customer Engagement Analytics Consulting/Transformation Technology Platforms Page 17
2018 Market Forecasts Opportunities Larger Than Just CRM Digital Services $100B Artificial Intelligence $19.3B IoT $772B Big Data & Analytics $170B $71B CRM RPA $629M Vertical BPO $206B Consulting $37B Maintenance Services $137B Back Office BPO $119B Source: IDC 2017 research, HfS 2017 research Page 20
CRM Marketplace Disruptors Digital AI RPA Alternative Workforce Solutions Disruptive Areas Growing Significantly Faster Than Rest of Market Core 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 Market Trends 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 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 Invest in the Future Leverage Strengths Across Concentrix Business Units AI / Chatbots RPA Digital Customers Footprint Workforce Alternatives Gig Platform Tigerspike opportunity across large customer base Technologies Capabilities + Double Digit Adjusted Operating Margins in FY 18 Drive Brand Recognition As the Market Leader Strong signings focused on disrupted technology solutions Page 22
Recognized as Leaders by Many Industry Experts & Our Clients Industry Awards Analyst Relations Client Recognition 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 Page 23
SYNNEX: Focused on the Future
Continued Growth and Margin Expansion Core Organic Growth beyond Market Growth in TS and CNX Focused Verticals Adjacent Market Growth Hyve Solutions, BPO beyond Customer Care Emerging Technologies Third Platform/IoT/ Services and CNX Proprietary Platforms Continued Optimization of Core Businesses Continued Mix Shift to Higher Margin Technology Platforms and Services Deeper Penetration of CNX in Priority High Margin Verticals Hyve Solutions Leverage Scale in TS and CNX to Drive More Efficiency Revenue Growth Platform Sustainable Margin Expansion Page 25
Investment Highlights WHAT WE ACCOMPLISHED Strong Track Record of Revenue Growth, Margin Expansion and Strategic Investments Penetrated Growth Markets Customer-Centric Business Strategy Focused on Growth Markets Recognized Leadership in Customer Care BPO and Technology Distribution Seasoned Management with In-Depth Industry Experience Superior Total Shareholder Return 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. Page 29
Reconciliation of GAAP to Non-GAAP Financial Measures (Amounts in thousands, except per share amounts) Consolidated 2012 2013 2014 2015 2016 2017 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 Fiscal year ended November 30, 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 Amortization of intangibles 3,882 3,912 3,538 2,630 2,657 14,929 Adjusted operating income $ 252,806 $ 241,202 $ 309,037 $ 305,580 $ 318,142 $ 412,973 GAAP operating margin 2.46% 2.22% 2.40% 2.54% 2.53% 2.62% Adjusted operating margin 2.49% 2.26% 2.42% 2.56% 2.55% 2.74% 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 - Amortization of intangibles 4,407 4,041 51,623 52,126 52,833 64,252 Adjusted operating income $ 10,783 $ 15,684 $ 97,114 $ 113,362 $ 131,358 $ 179,932 GAAP operating margin 4.00% 1.71% 0.22% 3.61% 4.02% 5.76% Adjusted operating margin 6.76% 8.28% 8.86% 8.00% 8.27% 9.04% Page 30
Reconciliation of GAAP to Non-GAAP Financial Measures (Amounts in thousands, except per share amounts) (Continued) Fiscal year ended November 30, 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 (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. (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. (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. Page 31