Slide 1: Investor Presentation January 2025
Investor Presentation January 2025
Slide 2: Safe harbor statement
Safe harbor statement Statements in this presentation regarding TD SYNNEX that are not historical facts are “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. Such forward- looking statements are inhere
Slide 3: FQ4'2024 snapshot
FQ4’2024 snapshot Continued y/y non-GAAP gross billings(1) growth and robust free cash flow(1) $21.2B 2.66% $3.09 N O N - G A A P G R O S S B I L L I N G S (1) N O N - G A A P O P E R A T I N G M A R G I N (1) N O N - G A A P D I L U T E D E P S (1) + 7% y / y (30) bps y/y (1)% y/y ~26% $513M $136M
Slide 4: FY2024 snapshot
FY2024 snapshot Non-GAAP gross billings(1) growth, solid EPS growth, and robust free cash flow(1) $80.1B 2.78% $11.68 N O N - G A A P G R O S S B I L L I N G S (1) N O N - G A A P O P E R A T I N G M A R G I N (1) N O N - G A A P D I L U T E D E P S (1) + 4% y / y (7) bps y / y +4% y/y ~25% $1.0B ~$
Slide 5: Benefited from improving IT spending environment
FQ4’2024 Benefited from improving IT spending environment and end-to-end technology portfolio Q4 FY24 Y/Y Key takeaways GAAP Revenue ($B) $15.8 10% / 9%(2) Non-GAAP gross billings(1) grew 7% Operating Income ($M) $325 13% driven by significant growth within Advanced Solutions and broad-based growth
Slide 6: FQ4'2024 Performance by Geography
FQ4’2024 Performance by Geography Supporting Partners Around the World – Five Continents, 100+ Countries Served $9.2B Revenue (+10.6% y/y) $12.9B Non-GAAP gross billings(1) (+7.0% y/y) $284M Non-GAAP operating income(1) 3.07% Non-GAAP operating margin(1) $5.5B Revenue (+5.5% y/y) $7.0B Non-GAAP gros
Slide 7: FQ1'2025 outlook
FQ1’2025 outlook Q1 FY25E GAAP Non-GAAP (1) Gross billings ($B) $19.7 – $20.7 (2) Gross to net % (26.9)% (2) Revenue ($B) $14.4 – $15.2 $14.4 – $15.2 Net income ($M) $147 – $189 $224 – $266 (2) Estimated outstanding diluted weighted avg. shares (M) 83.8 83.8 Diluted earnings per share $1.74 – $2.24
Slide 8: Results by technology category
FQ4’2024 Results by technology category(2) Key takeaways Revenue Non-GAAP Gross profit gross billings(1) Endpoint Solutions non-GAAP gross $9.2B non-GAAP $402M billings(1) grew by 3% driven by growth Endpoint $8.1B revenue gross billings(1) 5% gross margin in PCs and Peripherals solutions (ES) +5% y
Slide 9: Balanced end-to-end portfolio
Services 5% Networking Balanced end-to- 16% end portfolio Software 18% Mobile Approximate % of total non-GAAP 6% gross billings(1) by product category(2) for FQ4’2024 Peripherals Servers and Storage 12% 20% PCs Other 17% 6% (1) Non-GAAP measure. See the appendix to this presentation for definitions
Slide 10: Delivering on our plan
Delivering on our plan Expanding our presence in strategic technologies and delivering strong returns to stockholders Cash flow + Continued strategic technologies execution capital allocation Strategic technologies as a % of non-GAAP gross billings(3) Cash returned to stockholders(2) $751M $750M 25%
Slide 11: Attractive long term growth in profitability
Attractive long term growth in profitability Gross profit(1) Non-GAAP operating income(1)(2) Non-GAAP diluted EPS(2) 4% CAGR 6% CAGR 12% CAGR $3,900 $3,957 $3,981 $3,649 $1,724 $3,414 $1,642 $1,627 $11.94 $11.68 $1,480 $11.26 $1,294 $9.40 $7.38 FY 2020 FY 2021 FY 2022 FY 2023 FY 2024 FY 2020 FY 2021
Slide 12: Strong investment grade balance sheet
Strong investment grade balance sheet Capital structure provides ample liquidity and flexibility Significant liquidity Long dated, well-laddered capital structure ($M) Nov 2024 Cash $1,059M Unsecured revolver $3,500M A/R securitization $1,500M 1,500 Total liquidity $6,059M 3,500 Investment grade bal
Slide 13: Significant FCF potential with a focus on stockholder returns
Significant FCF potential with a focus on stockholder returns Flexible medium-term capital allocation framework that prioritize investments based on ROI Return excess free cash flow after Target 2x gross leverage ratio dividends and M&A through repurchases As of November 2024, 2.2x Gross Leverage(1)
Slide 14: Why own TD SYNNEX?
Why own TD SYNNEX? Attractive core business Significant cash flow capitalizing on strategic Target stockholder engine creates technologies return of 15-20% financial flexibility Strong investment grade Target TSR of 15-20% Industry leader levered to balance sheet in medium-term secular IT spending g
Slide 15: Appendix
Appendix
Slide 16: Technology and product solutions
Technology Technology and and product product solutions solutions Strategic technologies CLOUD Endpoint solutions (ES) SECURITY Advanced D ATA / A I / I O T solutions (AS) HYPERSCALE CLOUD SERVERS NETWORKING STORAGE SOFTWARE OTHER INFRASTRUCTURE HYPERSCALE INFRASTRUCTURE 16
Slide 17: TD SYNNEX
TD SYNNEX Connecting the global IT system G L O B A L I T P L AT F O R M S SPECIALIZED SKILLS 17
Slide 18: Well positioned to benefit from industry evolution
Well positioned to benefit from industry evolution Linear Model Solutions Aggregation Ecosystem Orchestration OEM TD SYNNEX Reseller End User Inventory financing Reduces solution building cost for resellers Expands ecosystem addressable market Logistics management Accelerated time to market As a ser
Slide 19: Attractive business model with variable cost structure
Attractive business model with variable cost structure and limited capital intensity Illustrative Business Model Highly Variable Cost Structure TTM Adj. EBITDA less Capex ($M)(1) OEM 90% conversion ~2% Back- $960 $20 end Margin $1,737 $(175) $1,562 Opex <5% COGS ~4% Front- ~65% ~35% >95% end Margin
Slide 20: Best line card in the industry to take advantage of AI growth
Best line card in the industry to take advantage of AI growth Enabled via first to market Destination AI channel program AI-Enabled Independent Software Vendors (ISVs) AI Accelerators AI Accelerators Core AI Software/ Core AI Software/Platforms Platforms AI Infrastructure 20
Slide 21: Stable cash conversion cycle with countercyclical benefits
Stable cash conversion cycle with countercyclical benefits Steady cash conversion cycle (days) Countercyclical cash generation 23 23 18 Dot com bubble Global financial crisis COVID-19 pandemic 53 65 60 54 49 51 0 (75) (84) (91) (93) 2000 2001 2002 2003 2008 2009 2010 2020 2021 2022 2023 FY 2022 FY 2
Slide 22: ESG highlights
ESG highlights Environmental Social Governance Commitment to Science-Based Target initiative Company: Seeking to increase our gender diversity Strong corporate governance based on our values (SBTi) Business Ambition Pledge with net zero with 50% of our workforce and 40% of leadership of Inclusion, C
Slide 23: Non-GAAP financial measures
Non-GAAP financial measures In addition to the financial results presented in accordance with GAAP, TD SYNNEX refers to revenues on a constant currency basis which adjusts for the translation effect of foreign currencies so that certain financial results can be viewed without the impact of fluctuati
Slide 24: Reconciliation of GAAP to Non-GAAP financial measures
Reconciliation of GAAP to Non-GAAP financial measures TD SYNNEX (Currency in thousands) (Amounts may not add or compute due to rounding) Three Months Ended Consolidated Americas Europe Asia-Pacific and Japan November 30, November 30, November 30, November 30, November 30, November 30, November 30, N
Slide 25: Reconciliation of GAAP to Non-GAAP financial measures
Reconciliation of GAAP to Non-GAAP financial measures TD SYNNEX (Currency in thousands) (Amounts may not add or compute due to rounding) Three Months Ended Consolidated Americas Europe Asia-Pacific and Japan November 30, November 30, November 30, November 30, November 30, November 30, November 30, N
Slide 26: Reconciliation of GAAP to Non-GAAP financial measures
Reconciliation of GAAP to Non-GAAP financial measures TD SYNNEX (Currency in thousands) (Amounts may not add or compute due to rounding) Three Months Ended Gross profit as a % of non-GAAP gross billings November 30, 2024 November 30, 2023 Revenue $ 15,844,563 $ 14,407,306 Costs incurred and netted a
Slide 27: Reconciliation of GAAP to Non-GAAP financial measures
Reconciliation of GAAP to Non-GAAP financial measures TD SYNNEX (Currency in thousands) (Amounts may not add or compute due to rounding) Three Months Ended Adjusted selling, general and administrative expenses, as a percentage of non-GAAP gross billings and as a percentage of gross profit November 3
Slide 28: Reconciliation of GAAP to Non-GAAP financial measures
Reconciliation of GAAP to Non-GAAP financial measures TD SYNNEX (Currency in thousands) (Amounts may not add or compute due to rounding) Three Months Ended Consolidated Americas Europe APJ Non-GAAP operating income, non-GAAP operating margin, and non- November 30, November 30, November 30, November
Slide 29: Reconciliation of GAAP to Non-GAAP financial measures
Reconciliation of GAAP to Non-GAAP financial measures TD SYNNEX (Currency in thousands) (Amounts may not add or compute due to rounding) Three Months Ended Twelve Months Ended November 30, November 30, November 30, November 30, Free cash flow 2024 2023 2024 2023 Net cash provided by operating activi
Slide 30: Reconciliation of GAAP to Non-GAAP financial measures
Reconciliation of GAAP to Non-GAAP financial measures TD SYNNEX (Currency in thousands) (Amounts may not add or compute due to rounding) Three Months Ended Non-GAAP income before income taxes, non-GAAP provision for income taxes and non-GAAP effective tax rate November 30, 2024 Income before income
Slide 31: Reconciliation of GAAP to Non-GAAP financial measures
Reconciliation of GAAP to Non-GAAP financial measures TD SYNNEX (Currency in thousands, except per share amounts) (Amounts may not add or compute due to rounding) Three Months Ended (1) Non-GAAP net income and non-GAAP diluted EPS November 30, 2024 August 31, 2024 May 31, 2024 February 29, 2024 Reve
Slide 32: Reconciliation of GAAP to Non-GAAP financial measures
Reconciliation of GAAP to Non-GAAP financial measures TD SYNNEX (Per share amounts) (Amounts may not add or compute due to rounding) Fiscal Years Ended November 30, November 30, November 30, November 30, November 30, Non-GAAP diluted EPS(1) 2024 2023 2022 2021 2020 Diluted EPS(1) $ 7.95 $ 6.70 $ 6.7
Slide 33: Calculation of financial metrics
Calculation of financial metrics TD SYNNEX (Currency in thousands) (Amounts may not add or compute due to rounding) ROIC November 30, 2024 Operating income (trailing fiscal four quarters) $ 1,194,211 Income taxes on operating income(1) (243,995) Operating income after taxes $ 950,216 Total invested
Slide 34: Calculation of financial metrics
Calculation of financial metrics TD SYNNEX (Currency in thousands) (Amounts may not add or compute due to rounding) Three Months Ended Cash conversion cycle November 30, 2024 Days sales outstanding Revenue (a) $ 15,844,563 Accounts receivable, net (b) 10,341,625 (c) = ((b)/(a))*the number Days sales
Slide 35: Reconciliation of GAAP to non-GAAP financial measures
Reconciliation of GAAP to non-GAAP financial measures TD SYNNEX (Currency in millions, except per share amounts) (Amounts may not add or compute due to rounding) Forecast Three Months Ending February 28, 2025 Non-GAAP net income and non-GAAP diluted EPS(1) Low High Net income $ 147 $ 189 Amortizatio
Slide 36: Reconciliation of GAAP to non-GAAP financial measures
Reconciliation of GAAP to non-GAAP financial measures TD SYNNEX (Currency in billions) (Amounts may not add or compute due to rounding) Forecast Three Months Ending February 28, 2025 Non-GAAP gross billings Low High Revenue $ 14.4 $ 15.2 Costs incurred and netted against revenue related to sales of
Slide 37: Calculation of financial metrics
Calculation of financial metrics TD SYNNEX (Currency in thousands) (Amounts may not add or compute due to rounding) Leverage ratio November 30, 2024 August 31, 2024 May 31, 2024 February 29, 2024 Total borrowings (a) $ 3,907,491 $ 4,050,202 $ 4,595,698 $ 4,009,106 Less: cash and cash equivalents (b)
Slide 38: TD SYNNEX results
TD SYNNEX results TD SYNNEX (Currency in millions) (Amounts may not add or compute due to rounding) Three Months Ended November 30, August 31, May 31, February 29, November 30, August 31, May 31, February 28, November 30, 2024 2024 2024 2024 2023 2023 2023 2023 2021 Revenue $ 15,844.6 $ 14,684.7 $ 1
Slide 39: Legacy SYNNEX results
Legacy SYNNEX results SYNNEX CORPORATION (Currency in millions) (Unaudited) (Amounts may not add or compute due to rounding) Three Months Ended August 31, May 31, February 28, November 30, August 31, May 31, February 29, 2021 2021 2021 2020 2020 2020 2020 Revenue $ 5,207.1 $ 5,856.8 $ 4,939.0 $ 6,11
Slide 40: Legacy Tech Data results
Legacy Tech Data results TIGER PARENT (AP) CORPORATION AND SUBSIDIARIES (Currency in millions) (Unaudited) (Amounts may not add or compute due to rounding) Three Months Ended August 31, May 31, February 28, November 30, August 31, May 31, February 29, 2021 2021 2021 2020 2020 2020 2020 Revenue $ 9,1
Slide 41: Combined legacy SYNNEX and legacy Tech Data results
Combined legacy SYNNEX and legacy Tech Data results Combined (Legacy SYNNEX and Legacy Tech Data) (Currency in millions) (Unaudited) (Amounts may not add or compute due to rounding) Three Months Ended August 31, May 31, February 28, November 30, August 31, May 31, February 29, 2021 2021 2021 2020 20
Slide 42: Combined legacy SYNNEX and legacy Tech Data results
Combined legacy SYNNEX and legacy Tech Data results Combined (Legacy SYNNEX and Legacy Tech Data) (Currency in millions) (Unaudited) (Amounts may not add or compute due to rounding) Trailing Twelve Months for Periods Ended November 30, November 30, November 30, November 30, November 30, 2024 2023 20
Slide 43: Reconciliation of GAAP to non-GAAP financial measures
Reconciliation of GAAP to non-GAAP financial measures TD SYNNEX (Currency in thousands) (Amounts may not add or compute due to rounding) Trailing Twelve Months for Periods Ended November 30, Adjusted EBITDA less Capex 2024 Net income $ 689,091 Interest expense and finance charges, net 319,458 Provis
Slide 44: THANK YOU
THANK YOU Jack Huddleston TD SYNNEX Corporation 510-668-8436 IR@tdsynnex.com IR website: ir.tdsynnex.com