Slide 1: Investor Presentation
Investor Presentation June 2022
Slide 2: Safe Harbor Statement
Safe Harbor Statement Statements in this presentation regarding TD 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 stateme
Slide 3: Quarter Highlights
Quarter Highlights Adjusted revenue and non-GAAP EPS(1)(2) at upper end of expectations Strong FCF(1) of $1B reflecting a cash conversion cycle of 21 days; Q2 adjusted ROIC(1) of 12.8% 1H’22 share repurchases of $53M at an average price of $103.21, consistent with capital allocation strategy Core an
Slide 4: Q2 FY2022 Financial Results
Q2 FY2022 Financial Results Q2 FY22 B/(W) vs PY (2) Revenue ($B) $15.3 (-1%) Operating Income ($M) $253 +16% Non-GAAP Operating Income ($M) (1) $398 +18% Operating Margin 1.66% +22bps Non-GAAP Operating Margin(1) 2.61% +42bps Key Takeaways 1 Adjusted revenue growth of +4%, reflecting broad based gro
Slide 5: Q2 FY22 Revenue Results Bridge
Q2 FY22 Revenue Results Bridge 1 Adjusted revenue growth of +4%(1), reflecting broad based growth in Core and High Growth Technologies 2 Accounting policy alignment negatively impacting revenue by $0.3B or ~2% 43.6% 43.3% 3 FX negatively impacted revenue by $0.5B(2) or ~3%(2) 41.7% 42.4% Q2 FY2022 R
Slide 6: LTM Financial Results
LTM Financial Results In $M, other than per share information Combined LTM Net Sales and Y/Y Growth % Combined LTM Non-GAAP OI(1) and % Margin(1) OI Conversion % 60,325 60,973 60,623 60,848 60,690 57,493 40% 42% 41% 42% 42% 38% 1,527 1,533 1,593 1,416 1,480 43.6% 1,313 8.3% 5.8% 0.6% 2.3% 2.5% 2.4%
Slide 7: Q3 FY2022 Outlook
Q3 FY2022 Outlook Guidance Q3 FY22E Revenue ($B) 14.5 – 15.5 Net Income ($M) 120 – 158 Non-GAAP Net Income ($M)(1) 241 – 279 Diluted EPS $1.24 - $1.64 Non-GAAP Diluted EPS(1) $2.50 - $2.90 Outstanding Diluted Weighted Avg. shares (Mil) 95.5 Net Total Interest Expense ($M) ~45 Tax Rate 24% Key Takeaw
Slide 8: FY2022 Outlook
FY2022 Outlook Guidance FY22E Diluted EPS $5.45 - $5.95 Non-GAAP Diluted EPS(1) $11.15 - $11.65 Outstanding Diluted Weighted Avg. shares (Mil) 95.6 Key Takeaways 1 We are maintaining our FY22 guidance despite an incremental $0.14 negative impact due to recent devaluation of the Euro (1) Non-GAAP mea
Slide 9: Special Topic: PC Market
Special Topic: PC Market TD SYNNEX PC Exposure Commercial vs Consumer PC Market Consumer PCs “While consumer PC demand may slow in the short term, commercial demand remains strong.” – Yuanqing Yang - Lenovo CEO 43.6% “And as a data point, we also think there is a potential of between 300 million and
Slide 10: Merger Integration Update
Merger Integration Update TD SYNNEX: Annual synergies Successful M&A Track Record Track-record of more than 15 successful M&A transactions Corporate IT with overachievement of synergy targets Deal Expected Realized Achieved? Occupancy/ Synergies procurement Personnel $150M $200M+ TD SYNNEX: Synergy
Slide 11: Strong Investment Grade Balance Sheet
Strong Investment Grade Balance Sheet Significant liquidity Long dated, well-laddered capital structure ($M) Nov 2021 Feb 2022 May 2022 Cash $995M $510M $522M Unsecured revolver $3,500M $3,500M $3,500M A/R securitization(1) $1,500M $751M $1,500M 3,500 Total liquidity $5,995M $4,761M $5,522M Investme
Slide 12: Generating Significant FCF with a Focus on Shareholder Returns
Generating Significant FCF with a Focus on Shareholder Returns Medium-term target capital allocation $400M stock buyback authorization in place Supplement organic growth with strategic $29M stock repurchased investments and M&A in Q2 FY22 25% Optimize cost of capital and target adjusted ROIC ~2-4% a
Slide 13: Appendix
© TD SYNNEX \ Appendix ;
Slide 14: TD SYNNEX
TD SYNNEX Connecting the global IT system Software & cloud Security Endpoint / Hyperscale Edge infrastructure Converged Big Data & Analytics & hyper- AI/IoT/Software converged Service providers Data center DMs / ISVs System Consumer retailers integrators electronics VARs GLOBAL IT PLATFORMS SPECIALI
Slide 15: Our Global Strategy
Our Global Strategy Delivering higher value Invest Strengthen in high growth technologies our end-to-end portfolio AR/VR metaverse Customer portfolio Data (analytics, AI, IOT) Solutions portfolio Hybrid cloud Vendor portfolio Hyperscale infrastructure TaaS, recurring revenue models Mobility & Edge S
Slide 16: ESG Highlights
ESG Highlights Environmental Social Governance Company • Helping to build a healthier planet • Seeking to increase our gender • Strong corporate governance • Committed to Science-Based diversity with 50% of our workforce based on our values of Inclusion, Target initiative (SBTi) Business and 40% of
Slide 17: Non-GAAP Financial Measures
Non-GAAP Financial Measures In addition to the financial results presented in accordance with GAAP, TD SYNNEX also uses adjusted selling, general and administrative expenses, non-GAAP operating income, non-GAAP operating margin, non-GAAP net income, and non-GAAP diluted earnings per share, which are
Slide 18: Reconciliation of GAAP to Non-GAAP Financial Measures
RECONCILIATION OF GAAP TO NON-GAAP FINANCIAL MEASURES (Currency in thousands) (Amounts may not add due to rounding) 18 18
Slide 19: Reconciliation of GAAP to Non-GAAP Financial Measures
RECONCILIATION OF GAAP TO NON-GAAP FINANCIAL MEASURES (Amounts in thousands) (Amounts may not add due to rounding) 19 19
Slide 20: Reconciliation of GAAP to Non-GAAP Financial Measures
RECONCILIATION OF GAAP TO NON-GAAP FINANCIAL MEASURES 20 20
Slide 21: Reconciliation of GAAP to Non-GAAP Financial Measures
RECONCILIATION OF GAAP TO NON-GAAP FINANCIAL MEASURES (Amounts may not add due to rounding) (1) Diluted EPS is calculated using the two-class method. Unvested restricted stock awards granted to employees are considered participating securities. Net income allocated to participating securities is est
Slide 22: Reconciliation of GAAP to Non-GAAP Financial Measures
RECONCILIATION OF GAAP TO NON-GAAP FINANCIAL MEASURES (Amounts may not add due to rounding) (1) Diluted EPS is calculated using the two-class method. Unvested restricted stock awards granted to employees are considered participating securities. Net income allocated to participating securities is est
Slide 23: Calculation of Financial Metrics
CALCULATION OF FINANCIAL METRICS (Amounts in thousands) (Amounts may not add due to rounding) (1) Income taxes on GAAP operating income was calculated using the effective year-to-date tax rates during the respective periods. Income taxes on non-GAAP operating income was calculated by excluding the t
Slide 24: Combined Legacy SYNNEX and Legacy Tech Data Results
COMBINED LEGACY SYNNEX AND LEGACY TECH DATA RESULTS Prior to the merger, SYNNEX Corporation and Tiger Parent (AP) Corporation (“Tech Data”) had different fiscal years. TD SYNNEX’ fiscal year ends on November 30, whereas Tech Data’s fiscal year ended on January 31. The unaudited historical financial
Slide 25: Combined Comparative Results
COMBINED COMPARATIVE RESULTS 25 25
Slide 26: Calculation of Financial Metrics – Combined Legacy Tech Data & Legacy SYNNEX
CALCULATION OF FINANCIAL METRICS – COMBINED LEGACY TECH DATA & LEGACY SYNNEX (Amounts in thousands) (Amounts may not add due to rounding) Excludes unrealized synergies. 26 26
Slide 27: TD SYNNEX Results
TD SYNNEX RESULTS © TD sYNNEX TD SYNNEX (Amounts in thousands) (Amounts may not add due to rounding) Three months ended: May 31, 2022 February 28,2022 November 30, 2021 Net sales $ 152698 $ 154700 © $ 156113 Cost of products sold (4314.0) (4501.3) (14,668.1) Gross profit 955.8 968.7 943.2 Operating
Slide 28: Legacy Tech Data Results
LEGACY TECH DATA RESULTS 28 28
Slide 29: Legacy SYNNEX Results
LEGACY SYNNEX RESULTS © TD sYNNEX SYNNEX CORPORATION (in millions) (Unaudited) (Amounts may not add due to rounding) Three months ended: August 31, May 31, February 28, | November 30, August 31, May 31, 2021 2021 2021 2020 2020 2020 Net sales S$ 52071 $ 58568 $ 49320 $ 61188 $ 53064 $ 44709 Cost of
Slide 30: Combined Legacy Tech Data & Legacy SYNNEX Results
COMBINED LEGACY TECH DATA & LEGACY SYNNEX RESULTS 30 30
Slide 31: Combined Legacy Tech Data & Legacy SYNNEX Results
COMBINED LEGACY TECH DATA & LEGACY SYNNEX RESULTS 31 31
Slide 32: Thank You
THANK YOU Liz Morali Investor Relations TD SYNNEX Corporation 510-668-8436 ir@synnex.com IR website: ir.synnex.com