Td Synnex Corporation · NYSE:SNX
Td Synnex — Q4 2021 Earnings Presentation
32 slides from Td Synnex's earnings presentation, Jan 11, 2022
Slide 1: Investor Presentation January 2022
INVESTOR PRESENTATION JANUARY 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: Who We Are
WHO WE ARE We’re 22,000 of the IT industry’s best and brightest, who share an unwavering passion for bringing compelling technology products, services and solutions to the world. We’re an innovative partner that helps our customers maximize the value of IT investments, demonstrate business outcomes
Slide 4: Our Purpose, Our Vision
OUR PURPOSE OUR VISION We empower our global To connect the global IT partners to achieve ecosystem and unlock great outcomes with its potential for all technology 4
Slide 5: Our Mission
OUR MISSION We deliver compelling technology solutions to a dynamic global marketplace. Intent on the success of our partners, shareholders and each other, we hold ourselves to the highest standards and deliver excellence every day. 5
Slide 6: Executive Leadership Team
EXECUTIVE LEADERSHIP TEAM Experienced team with track record of success RICH HUME Chief Executive Officer MICHAEL URBAN Chief Legal Officer Chief Information Americas President EU & APAC President Chief Financial Officer Officer SIMON LEUNG Chief Human Head of Global Businesses & Chief Strategy Offi
Slide 7: Corporate Social Responsibility
CORPORATE SOCIAL RESPONSIBILITY Environmental Social Governance At TD SYNNEX, our vision for a We believe anyone can do great things with True to our values of Inclusion, vibrant, interconnected world technology – and “anyone” is the operative Collaboration, Integrity and remains focused on protecti
Slide 8: Our Locations
OUR LOCATIONS We're proud to serve customers and vendors in more than 100 countries with our co-workers in the following locations. APJ ~3k co-workers Australia China Americas Hong Kong ~12k co-workers India Europe Indonesia Argentina ~8k co-workers Japan Brazil Macau Austria Netherlands Canada Mala
Slide 9: Business Partner Ecosystem Evolution
BUSINESS PARTNER ECOYSTEM EVOLUTION CLOUD SOLUTION CONSUMERS PROVIDERS ISVs AND OEMs MSPs SYSTEM INTEGRATIONS ANCHOR CLOUD PROVIDERS ECOSYSTEM TECHNOLOGY CUSTOMER 9 SUPPLIERS PARTNERS
Slide 10: Aggregating Solutions to Create Value
AGGREGATING SOLUTIONS TO CREATE VALUE 10
Slide 11: Providing Solutions Across the IT Spectrum
PROVIDING SOLUTIONS ACROSS THE IT SPECTRUM Our differentiated edge-to-cloud skills and capabilities are strengthening and expanding our position as a trusted partner to the world’s leading technology vendors while serving our customers better than any other company in our space. - Rich Hume, Chief E
Slide 12: Key Growth Trends
KEY GROWTH TRENDS Market Mega Trends: Multi-year cycle of increased IT investment driven by Cloud, Big Data/AI, IoT, security and XaaS Increased scope and Enhanced financial Above market growth breadth performance • Greater ability to • Expanded geographic • Cost synergies invest in next- presence •
Slide 13: Q4 FY21 Earnings
Q4 FY21 EARNINGS REPORTED ON JANUARY 11, 2022
Slide 14: Consistent Performance and Execution
CONSISTENT PERFORMANCE AND EXECUTION $18.5 Revenue ($B) Adj. OP%(1) $16.5 $16.0 $15.4 $15.6 $14.5 $15.2 $14.3 $12.5 $13.7 $13.7 $12.6 2.9% $10.5 2.6% 2.5% 2.5% 2.6% $8.5 2.2% 1.9% 1.8% $6.5 $4.5 $2.5 $0.5 FQ1'20 FQ2'20 FQ3'20 FQ4'20 FQ1'21 FQ2'21 FQ3'21 FQ4'21 (1) Non-GAAP measure. See the Appendix
Slide 15: Solid Y/Y Revenue Growth
SOLID Y/Y REVENUE GROWTH Revenue ($B) Adj. OP%(1) +8.3% Y/Y $60.5 $60.6 $50.5 $56.0 Growth $40.5 $30.5 2.3% 2.4% $20.5 $10.5 $0.5 FY 2020 FY 2021 (1) Non-GAAP measure. See the Appendix to this presentation for definitions of non-GAAP measures and reconciliation of such measures to GAAP. 15 Reflects
Slide 16: Q4 FY2021 Financial Results
Q4 FY2021 FINANCIAL RESULTS $15.6 billion 2.90% 2.61% Non-GAAP Non-GAAP Revenue Operating Operating Margin (1) Margin(1) Saw solid demand despite continued supply chain challenges, tough Y/Y compares and FX » Revenue decreased 2% Y/Y if adjusted for merger Healthy adjusted ROIC of 16%, up from 15.5%
Slide 17: Q4 FY2021 Key Highlights
Q4 FY2021 KEY HIGHLIGHTS • Good progress on integration efforts, on track to exceed targets, achieving 30% non-GAAP EPS accretion vs. original 25% • Revenue of $15.6B, down 2% Y/Y(1) due to supply chain headwinds, robust prior year performance and FX headwinds of ~ 1% • Operating cash flow of $561 m
Slide 18: Q1 FY2022 Outlook
Q1 FY2022 OUTLOOK Guidance Q1 FY22E Revenue ($B) 14.75 – 15.75 Net Income ($M) 74 – 134 Non-GAAP Net Income ($M)(1) 245– 275 Diluted EPS $0.77 – $1.39 Non-GAAP Diluted EPS(1) $2.55 – $2.85 Outstanding Diluted Weighted Avg. Shares (Mil) 95.9 Net Total Interest Expense ($M) ~38 Tax Rate 24% 18 (1) Non
Slide 19: FY2022 Outlook
FY2022 OUTLOOK Guidance FY22E Diluted EPS $4.83 – $5.90 Non-GAAP Diluted EPS(1) $10.80 – $11.20 Outstanding Diluted Weighted Avg. Shares (Mil) 95.9 19 (1) Non-GAAP measure. See the Appendix to this presentation for definitions of non-GAAP measures and reconciliation of such measures to GAAP. 19
Slide 20: Capital Allocation Framework
CAPITAL ALLOCATION FRAMEWORK • Healthy free cash flow generation of $1B annually Long Term Target Capital Allocation expected by end of FY 2023 • Capital allocation strategy over next 2-3 years is to distribute ~50% of free cash flow to shareholders via dividends and share buybacks 25% • Increased d
Slide 21: Appendix
© TD SYNNEX APPENDIX
Slide 22: Non-GAAP Financial Measures
NON-GAAP FINANCIAL MEASURES Use of 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 income from continuing oper
Slide 23: 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) 23 23
Slide 24: 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) Three months Ended November 30, 2021 Free Cash Flow Net Cash provided by operating activities [Continuing operations] $ 560,993 Purchase of property and equipment [Continuing operations
Slide 25: 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. For purposes of calculating Diluted EPS, income from co
Slide 26: Reconciliation of GAAP to Non-GAAP Financial Measures
RECONCILIATION OF GAAP TO NON-GAAP FINANCIAL MEASURES (Amounts may not add due to rounding) 26 26
Slide 27: 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 28: Legacy Tech Data Results
LEGACY TECH DATA RESULTS TIGER PARENT (AP) CORPORATION AND SUBSIDIARIES HISTORICAL FINANCIAL INFORMATION (In millions) (Unaudited) (Amounts may not add due to rounding) 28 28
Slide 29: Legacy SYNNEX Results
LEGACY SYNNEX RESULTS SYNNEX CORPORATION (In millions) (Unaudited) (Amounts may not add due to rounding) 29 29
Slide 30: Combined Legacy SYNNEX and Legacy Tech Data Results
COMBINED LEGACY SYNNEX AND LEGACY TECH DATA RESULTS Combined (Legacy SYNNEX and Legacy Tech Data) (In millions) (Unaudited) (Amounts may not add due to rounding) 30 30
Slide 31: 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. 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