Td Synnex Corporation · NYSE:SNX

Td Synnex — Q2 2023 Earnings Presentation

41 slides from Td Synnex's earnings presentation, Jun 27, 2023

  1. Slide 1: Investor Presentation

    Investor Presentation June 2023

  2. 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 inheren

  3. Slide 3: FQ2: Solid growth in Advanced Solutions and High-Growth technologies

    FQ2: Solid growth in Advanced Solutions and High-Growth technologies, synergy attainment and robust cash flow Revenue was $14.1B, down 7%(1) y/y and non-GAAP gross billings(2) were $18.7B, down 4%(1) y/y driven by demand declines for PC ecosystem products, partially offset by growth for Advanced Sol

  4. Slide 4: FQ2: Broad portfolio and shift to High-Growth areas boosted margins

    FQ2: Broad portfolio and shift to High-Growth areas boosted margins Q2 FY23 B/(W) vs PY Revenue ($B) $14.1 (8)% / (7)%(2) Non-GAAP gross billings ($B)(1) $18.7 (5)% / (4)%(2) Operating income ($M) $253 —% Non-GAAP operating income ($M)(1) $376 (6)% / (5)%(2) Operating margin 1.80% +14 bps Non-GAAP o

  5. Slide 5: Recent Financial Results: solid and consistent margins in target range

    Recent Solid andFinancial consistentResults margins in target range In $M (except EPS and net leverage) Combined LTM Revenue and Y/Y Growth(1,4) % Combined LTM Non-GAAP OI(2,4) and % Margin(2,4) OI Conversion % (3) 43.6 % 9.2% 6.3% 5.5 6.3% 5.5% 2.9% % 6.3%% 42.2 2.9%2.9%5.5% 9.2% 8.2% 5.4% 2.3% 2.5

  6. Slide 6: Q3 FY 2023 Outlook

    Q3 FY 2023 Outlook Guidance Q3 FY23E Revenue (B) $13.5 – $14.5 Announced incremental $50M in cost optimizations over the next several Non-GAAP gross billings (B)(1) $18.0 – $19.3 quarters, to bring SG&A in line with Net income (M) $111 – $158 targeted range of 3.5% - 4% of net revenue Non-GAAP net i

  7. Slide 7: Strong investment grade balance sheet

    Strong investment grade balance sheet Significant liquidity Long dated, well-laddered capital structure ($M) Nov 2022 May 2023 Cash $523M $852M Unsecured revolver $3,500M $3,500M A/R securitization $1,500M $1,500M Total liquidity $5,523M $5,852M Investment grade balance sheet with low costs – FQ2’23

  8. Slide 8: Significant FCF potential with a focus on shareholder returns

    Significant FCF potential with a focus on shareholder returns Medium-term target capital allocation $175M stock repurchased YTD in Supplement organic FY2023 growth with strategic investments and M&A Increasing pace of repurchases in 2H FY2023 by ~$100M Optimize cost of capital and target adjusted RO

  9. Slide 9: Why own TD SYNNEX?

    Why own TD SYNNEX? Attractive core business Significant cash flow engine Target shareholder return of capitalizing on high-growth creates financial flexibility 15-20% technologies Industry leader levered to secular IT Strong investment grade balance Target TSR of 15-20% spending growth sheet in medi

  10. Slide 10: A differentiated investment opportunity

    A differentiated investment opportunity Leading Global IT Solutions Distributor with Significant Breadth and Depth 1 of Capabilities 2 Portfolio Squarely Aligned with Technology Megatrends, Driving Growth and Margin Uplift Central Role in IT Ecosystem Positions Us Well for Future Models of 3 Consump

  11. Slide 11: Appendix

    © TD SYNNEX Appendix

  12. Slide 12: TD SYNNEX: Connecting the global IT system

    TD SYNNEX Connecting the global IT system GLOBAL IT PLATFORMS SPECIALIZED SKILLS 12

  13. Slide 13: Well positioned to benefit from industry evolution

    Well positioned to benefit from industry evolution 13

  14. Slide 14: Solutions Aggregation

    Solutions Aggregation: Helping partners build multi-vendor solutions Accelerates delivery of Delivers a competitive Speeds time to business outcomes advantage & differentiation market 7,500+ solutions deployed Addresses skills Drives operational Lower costs & higher shortage efficiency profitability

  15. Slide 15: Highly attractive business model with variable cost structure and limited capital intensity

    Highly attractive business model with variable cost structure and limited capital intensity TTM Adj. EBITDA less Capex Illustrative Business Model Highly Variable Cost Structure ($M)(1) 92% conversion OEM COGS >95% $1,813 ~2% Back-end Opex $1,675 $960 $20 <5% Margin $(138) ~4% Front- end Margin ~65%

  16. Slide 16: Stable cash conversion cycle with countercyclical benefits

    Stable cash conversion cycle with countercyclical benefits Steady cash conversion cycle (days) Countercyclical cash generation Dot com bubble Global financial crisis COVID-19 pandemic 25 14 23 24 Zero Operating cash flow During recessionary environments when revenues decline, DSO DIO DPO balance she

  17. Slide 17: Recent partner awards

    © TD SYNNEX Recent partner awards (J Alibaba Cloud 7sus' aws cow) valli. COHESITY LTechnologies few De@LLTechnologies O | Gl v E Extreme F:2 RATINET. HPE3o@2° Hewlett Packard @ intel EE Microsoft FINetApp ~y NUTAND<. @ paloalto’ Ruckus SAMSUNG SEAL SHIELD” veeaAm 17

  18. Slide 18: 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 Target diversity with 50% of our workforce based on our values of Inclusion, initiative (SBTi) Business Ambition an

  19. Slide 19: 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

  20. Slide 20: 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 Revenue in constant currency May 31, 2023 May 31, 2022 May 31, 2023 May 31, 2022 May 31, 202

  21. Slide 21: 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 billings in constant currency May 31, 2023 May 31, 2022 Revenue $ 14,062,124 $ 15,269,791 Costs incurred and netted against reven

  22. Slide 22: 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 and gross margin May 31, 2023 May 31, 2022 Revenue $ 14,062,124 $ 15,269,791 Gross profit $ 963,410 $ 955,789 Purchase accounting a

  23. 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 Operating income and operating margin May 31, 2023 May 31, 2022 May 31, 2023 May 31, 2022 Ma

  24. 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 Non-GAAP operating income in constant currency May 31, 2023 May 31, 2022 Operating income $ 252,883 $ 252,737 Acquisition, integration and restr

  25. 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 Free cash flow May 31, 2023 Net cash provided by operating activities $ 707,545 Purchases of property and equipment (30,331) Free cash flow $ 67

  26. 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 interest expense May 31, 2023 Interest expense, net $ 74,285 Acquisition and integration interest costs (2,296) Non-GAAP interest expen

  27. 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 Income before income taxes, provision for income taxes and effective tax rate May 31, 2023 Income before income taxes $ 174,434 Acquisition, int

  28. Slide 28: Reconciliation of GAAP to non-GAAP financial measures

    Reconciliation of GAAP to non-GAAP financial measures TD SYNNEX (Per share amounts) (Unaudited) (Amounts may not add or compute due to rounding) Three Months Ended May 31, February 28, November 30, August 31, May 31, February 28, November 30, August 31, May 31, February 28, November 30, August 31, 2

  29. Slide 29: Reconciliation of GAAP to non-GAAP financial measures

    Reconciliation of GAAP to non-GAAP financial measures TD SYNNEX (Per share amounts) (Unaudited) (Amounts may not add or compute due to rounding) Three Months Ended May 31, May 31, 2023 2022 Diluted EPS $ 1.41 $ 1.55 Acquisition, integration & restructuring costs 0.41 0.36 Amortization of intangibles

  30. Slide 30: Calculation of financial metrics

    Calculation of financial metrics TD SYNNEX (Currency in thousands) (Amounts may not add or compute due to rounding) May 31, 2023 ROIC Operating income (trailing fiscal four quarters) $ 1,126,741 Income taxes on operating income(1) (234,638) Operating income after taxes $ 892,103 Total invested capit

  31. Slide 31: 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 August 31, 2023 Net income and diluted EPS Low High Net income $ 111 $ 158 Acquisition, integration and restr

  32. Slide 32: 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) Forecast Three Months Ending Non-GAAP interest expense August 31, 2023 Interest expense, net $ 74 Acquisition and integration interest costs 2 Non-GAAP interest exp

  33. Slide 33: Reconciliation of GAAP to non-GAAP financial measures

    Reconciliation of GAAP to non-GAAP financial measures TD SYNNEX (Amounts may not add or compute due to rounding) Forecast Three Months Ending (Currency in billions) August 31, 2023 Non-GAAP gross billings Low High Revenue $ 13.5 $ 14.5 Costs incurred and netted against revenue related to sales of th

  34. 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 May 31, 2023 February 28, 2023 November 30, 2022 August 31, 2022 Total borrowings (a) $ 4,105,112 $ 4,388,723 $ 4,103,793 $ 4,134,437 Less: cash and cash equivalents (b)

  35. 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 May 31, February 28, November 30, August 31, May 31, February 28, November 30, 2023 2023 2022 2022 2022 2022 2021 Revenue $ 14,062.1 $ 15,125.4 $ 16,248.0 $ 15,356.1 $ 15,269.8 $ 15

  36. 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, 2021 2021 2021 2020 2020 Revenue $ 5,207.1 $ 5,856.8 $ 4,939.0 $ 6,118.8 $ 5,306.4 Cost of revenue (

  37. Slide 37: Legacy Tech Data results

    Legacy Tech Data results TIGER PARENT (AP) CORPORATION AND SUBSIDIARIES HISTORICAL FINANCIAL INFORMATION (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, 2021 2021 2021 2020 2020 Revenue $ 9

  38. 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, 2021 2021 2021 2020 2020 Revenue $ 14,339.2

  39. 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 May 31, February 28, November 30, August 31, May 31, February 28, November 30

  40. 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 Period Ended May 31, Adjusted EBITDA less Capex 2023 Operating income $ 1,126.7 Adjustments Acquisition, integration and restructuring ex

  41. Slide 41: THANK YOU

    THANK YOU Liz Morali Investor Relations TD SYNNEX Corporation 510-668-8436 IR@tdsynnex.com IR website: ir.tdsynnex.com

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