Slide 1: Investor Presentation
Investor Presentation March 2024
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: FQ1'2024 snapshot
FQ1’2024 snapshot Solid EPS growth with robust free cash flow(1) and healthy capital returns $19.3B GROSS B I L L I N G S (1) 3.04% NON-GAAP OPERATING MARGIN (1) $2.99 NON-GAAP DILUTED E P S (1) ~23% STRATEGIC TECHNOLOGIES $344M FREE CASH FLOW (1) $235M RETURNED TO SHAREHOLDERS, GROSS BILLINGS AS A
Slide 4: Delivering strong financial results and margin expansion through focused execution
FQ1’2024 Delivering strong financial results and margin expansion through focused execution Q1 FY24 B/(W) vs PY Key takeaways Revenue and non-GAAP gross Revenue ($B) $14.0 (8)% / (8)%(2) billings(1) within outlook ranges. Y/Y declines driven by difficult comparisons Non-GAAP gross billings ($B)(1) $
Slide 5: FQ2'2024 outlook
FQ2’2024 outlook Q2 FY24E Revenue ($B) $13.3 – $14.9 Non-GAAP gross billings ($B)(1) $18.4 – $19.6 Net income (M) $139 – $183 Non-GAAP net income (M)(1) $219 – $263 Diluted EPS $1.59 – $2.09 Non-GAAP diluted EPS(1) $2.50 – $3.00 Estimated outstanding diluted weighted avg. shares (M) 86.8 Interest ex
Slide 6: Introducing enhanced financial disclosures
Introducing enhanced financial disclosures Technology & product solutions: Strategic technologies Endpoint solutions CLOUD (ES) SECURITY Advanced solutions (AS) HYPERSCALE INFRASTRUCTURE CLOUD SERVERS NETWORKING STORAGE SOFTWARE OTHER DATA/AI/IOT Endpoint Solutions and Advanced Solutions = Total Com
Slide 7: Results by technology category
FQ1’2024 Results by technology category(2) Key takeaways Net revenue Non-GAAP Gross profit gross billings(1) ES saw slight y/y growth in PCs, offset by softness in the demand $7.7B non-GAAP for mobile devices and some Endpoint $6.8B net revenue $327M gross billings(1) components solutions (ES) (5)%
Slide 8: Balanced end-to-end portfolio
Services 7% Networking Balanced end-to- 15% end portfolio Software Mobile 21% 5% Approximate % of total gross billings(1) by product category(2) Peripherals 7% PCs Servers and Storage 16% 20% Other 9% (1) Non-GAAP measure. See the appendix to this presentation for definitions of non-GAAP measures an
Slide 9: Well-positioned to leverage growing AI market
Well-positioned to leverage growing AI market Creating industry-leading aggregated AI solutions for the channel Strong vendor partnerships Enabled over 2,000 partners during successful Microsoft Copilot launch campaign Expanded collaboration with Nvidia in North America including full line of produc
Slide 10: Delivering on our plan
Delivering on our plan Expanding our presence in strategic technologies and delivering strong returns to shareholders Cash flow + Continued strategic technologies execution capital allocation Strategic technologies gross billings(1),(4) Cash returned to shareholders(3) 59% Continued expansion in str
Slide 11: Attractive long term growth in profitability
Attractive long term growth in profitability Gross profit(1) Non-GAAP operating income(1,2) Non-GAAP diluted EPS(2) 5% CAGR 7% CAGR 14% CAGR (1) Figures are on a combined basis assuming the merger occurred at the beginning of the period (2) Non-GAAP measure. See the appendix to this presentation for
Slide 12: Strong investment grade balance sheet
Strong investment grade balance sheet Significant liquidity Long dated, well-laddered capital structure ($M) Feb 2024 Cash $1,031M Unsecured revolver $3,500M A/R securitization $1,500M Total liquidity $6,031M Investment grade balance sheet with low costs – FQ1’24 Total debt leverage $4.0B 2.3x Net d
Slide 13: Significant FCF potential with a focus on shareholder returns
Significant FCF potential with a focus on shareholder returns Medium-term target capital allocation Return excess free cash flow after dividends and M&A through repurchases Supplement organic growth with strategic investments and M&A Repurchased $199M in stock in Q1 and announced new share repurchas
Slide 14: Why own TD SYNNEX?
Why own TD SYNNEX? Attractive core business Significant cash flow Target shareholder capitalizing on strategic engine creates return of 15-20% technologies financial flexibility Industry leader levered to Strong investment grade Target TSR of 15-20% secular IT spending growth balance sheet in medium
Slide 15: A differentiated investment opportunity
A differentiated Leading global IT investment solutions distributor with significant breadth and Central role in IT ecosystem positions us well for future opportunity… depth of capabilities models of consumption Attractive cash-generative Portfolio squarely aligned business model supported by with t
Slide 16: Appendix
Appendix
Slide 17: TD SYNNEX
TD SYNNEX Connecting the global IT system G L O B A L I T P L AT F O R M S SPECIALIZED SKILLS 17
Slide 18: Well positioned to benefit from industry evolution
Well positioned to benefit from industry evolution Linear Model Solutions Aggregation Ecosystem Orchestration OEM TD SYNNEX Reseller End User Inventory financing Reduces solution building cost for resellers Expands ecosystem addressable market Logistics management Accelerated time to market As a ser
Slide 19: Attractive business model with variable cost structure and limited capital intensity
Attractive business model with variable cost structure and limited capital intensity Illustrative Business Model Highly Variable Cost Structure TTM Adj. EBITDA less Capex ($M)(1) 91% conversion OEM ~2% Back- $960 $20 end Margin 1,733 $(154) 1,579 Opex <5% COGS ~4% Front- >95% ~65% ~35% end Margin Va
Slide 20: Stable cash conversion cycle with countercyclical benefits
Stable cash conversion cycle with countercyclical benefits Steady cash conversion cycle (days) Countercyclical cash generation 23 23 21 Dot com bubble Global financial crisis COVID-19 pandemic 0 (75) 2000 2001 2002 2003 2008 2009 2010 2020 2021 2022 2023 2022 2023 Q1 FY24 DSO DIO DPO During recessio
Slide 21: ESG highlights
ESG highlights Environmental Social Governance Committed to Science-Based Target Company: Seeking to increase our gender diversity Strong corporate governance based on our values initiative (SBTi) Business Ambition Pledge with 50% of our workforce and 40% of leadership of Inclusion, Collaboration, I
Slide 22: 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 23: 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 February 29, February 28, February 29, February 28, February 29, February 28, February 29, F
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 February 29, February 28, February 29, February 28, February 29, February 28, February 29, F
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 Non-GAAP gross profit and non-GAAP gross margin February 29, 2024 February 28, 2023 Revenue $ 13,975,253 $ 15,125,371 Gross profit $ 1,005,766 $
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 Non-GAAP operating income and non-GAAP operating margin February 29, 2024 February 28, 2023 Revenue $ 13,975,253 $ 15,125,371 Operating income $
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 Free cash flow February 29, 2024 February 28, 2023 Net cash provided by operating activities $ 384,709 $ (102,795) Purchases of property and equ
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 Non-GAAP income before income taxes, non-GAAP provision for income taxes and non-GAAP effective tax rate February 29, 2024 Income before income
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 Non-GAAP diluted EPS(1) February 29, 2024 November 30, 2023 August 31, 2023 May 31, 2023 Diluted EPS(1) $ 1.93 $ 2.06 $ 1.49 $ 1.41 Acquisition,
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) Fiscal Years Ended November 30, November 30, November 30, November 30, 2023 2022 2021 2020 Non-GAAP diluted EPS(1) Diluted EPS $ 6.70 $ 6.77 $ 6.24 $ 6.46 Acquisit
Slide 31: Calculation of financial metrics
Calculation of financial metrics TD SYNNEX (Currency in thousands) (Amounts may not add or compute due to rounding) ROIC February 29, 2024 Operating income (trailing fiscal four quarters) $ 1,082,442 Income taxes on operating income(1) (222,351) Operating income after taxes $ 860,091 Total invested
Slide 32: 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 May 31, 2024 Net income and diluted EPS(1) Low High Net income $ 139 $ 183 Acquisition, integration and restr
Slide 33: 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 May 31, 2024 Non-GAAP gross billings Low High Revenue $ 13.3 $ 14.9 Costs incurred and netted against revenue related to sales of third
Slide 34: Calculation of financial metrics
Calculation of financial metrics TD SYNNEX (Currency in thousands) (Amounts may not add or compute due to rounding) Leverage ratio February 29, 2024 November 30, 2023 August 31, 2023 May 31, 2023 Total borrowings (a) $ 4,009,106 $ 4,082,778 $ 4,079,182 $ 4,105,112 Less: cash and cash equivalents (b)
Slide 35: TD SYNNEX results
TD SYNNEX results TD SYNNEX (Currency in millions) (Amounts may not add or compute due to rounding) Three Months Ended February 29, November 30, August 31, May 31, February 28, November 30, August 31, 2024 2023 2023 2023 2023 2022 2022 Revenue $ 13,975.3 $ 14,407.3 $ 13,960.6 $ 14,062.1 $ 15,125.4 $
Slide 36: 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 37: 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 38: 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 39: 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, 2023 2022 2021 2020 Reven
Slide 40: Reconciliation of GAAP to non-GAAP financial measures
Reconciliation of GAAP to non-GAAP financial measures TD SYNNEX (Currency in millions) (Amounts may not add or compute due to rounding) Trailing Twelve Months for Periods Ended February 29, Adjusted EBITDA less Capex 2024 Operating income $ 1,082.4 Adjustments Acquisition, integration and restructur
Slide 41: Thank you
THANK YOU Liz Morali Investor Relations TD SYNNEX Corporation 510-668-8436 IR@tdsynnex.com IR website: ir.tdsynnex.com