Td Synnex Corporation · NYSE:SNX

Td Synnex — Q1 2023 Earnings Presentation

42 slides from Td Synnex's earnings presentation, Mar 28, 2023

  1. Slide 1: Investor Presentation

    Investor Presentation March 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: FQ1: Strong execution and High-Growth technologies drove profit expansion and shareholder returns

    FQ1: Strong execution and High-Growth technologies drove profit expansion and shareholder returns Revenue of $15.1B, representing y/y growth of 1%(1), and non-GAAP gross billings(2) of $20.2B, representing y/y growth of 4%(1), driven by strength in Advanced Solutions and high-growth technologies, pa

  4. Slide 4: FQ1: Profit expansion fueled by strategic focus on High-Growth technologies

    FQ1: Profit expansion fueled by strategic focus on High-Growth technologies Q1 FY23 B/(W) vs PY Revenue ($B) $15.1 -2% / +1%(2) Non-GAAP gross billings ($B)(1) $20.2 +1% / +4%(2) Operating income ($M) $298 +34% Non-GAAP operating income ($M)(1) $443 +3% / +5%(2) Operating margin 1.97% 53 bps Non-GAA

  5. Slide 5: Recent Solid Financial Results

    Recent Solid Financial revenue Results growth and profitability 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% % 42.2 2.9% 6.3% % 2.9% 5.5% 9.2% 8.2% 2.3% 2.5% 2.4%

  6. Slide 6: Q2 FY 2023 Outlook

    Q2 FY 2023 Outlook Guidance Q2 FY23E Revenue (B) $14.0 – $15.0 Non-GAAP gross billings (B)(1) $18.7 – $20.0 Net income (M) $105 – $152 Non-GAAP net income (M)(1) $214 – $261 Diluted EPS $1.10 – $1.60 Non-GAAP diluted EPS(1) $2.25 – $2.75 Outstanding diluted weighted avg. shares (M) 94.2 Interest exp

  7. Slide 7: Cost synergy attainment ahead of plan

    Cost synergy attainment ahead of plan Synergies Achieved To Date Remaining Year 2 Targets IT Corporate, • Targeting an additional ~$30M in optimization and including taxes cost synergy benefits weighted toward SG&A and interest Synergies • More than 75% of North American distribution business now tr

  8. Slide 8: Strong investment grade balance sheet

    Strong investment grade balance sheet Significant liquidity Long dated, well-laddered capital structure ($M) Nov 2022 Feb 2023 Cash $523M $539M Unsecured revolver $3,500M $3,500M A/R securitization $1,500M $1,390M Total liquidity $5,523M $5,429M Investment grade balance sheet with low costs – FQ1’23

  9. Slide 9: Significant FCF potential with a focus on shareholder returns

    Significant FCF potential with a focus on shareholder returns Medium-term target capital allocation $115M stock repurchased YTD in Supplement organic FY2023 growth with strategic investments and M&A ~$900M remaining stock 25% buyback authorization in place on existing $1B Optimize cost of capital pr

  10. Slide 10: 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

  11. Slide 11: 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

  12. Slide 12: Appendix

    © TD SYNNEX Appendix

  13. Slide 13: TD SYNNEX: Connecting the global IT system

    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

  14. Slide 14: Well positioned to benefit from industry evolution

    Well positioned to benefit from industry evolution 14

  15. Slide 15: Solid track record of profitable growth

    Solid track record of profitable growth Revenue COVID crisis Global financial crisis +6% CAGR Combined TD SYNNEX revenue - Non-GAAP operating margin (1) (1) Non-GAAP measure. See the appendix to this presentation for definitions of non-GAAP measures and reconciliation of such measures to GAAP. 15

  16. Slide 16: Highly attractive business model with variable cost structure and limited capital intensity

    Highly attractive business model with variable cost structure and limited capital intensity Illustrative Business Model Highly Variable Cost Structure Adj. EBITDA less Capex ($M)(1) 93% conversion OEM COGS >95% $1,834 ~2% Back-end Opex $1,705 $960 $20 <5% Margin $(129) ~4% Front- end Margin ~65% Var

  17. Slide 17: 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 26 Zero Operating cash flow During recessionary environments when revenues decline, DSO DIO DPO balance she

  18. Slide 18: Recent awards & recognition

    Recent awards & recognition | | Hewlett Packard Enterprise 2022 Global Distributor of the Year aws 7] 2022 EMEA Distributor Partner 2022 North America Partner of the Year of the Year FE Extreme F:RTINET. networks 2021 Top Performing Distributor, Tech Data Hong Kong and 2021 Distributor Excellence, (

  19. Slide 19: 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

  20. Slide 20: 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

  21. Slide 21: Reconciliation of GAAP to non-GAAP financial measures

    Reconciliation of GAAP to non-GAAP financial measures TD SYNNEX (Amounts in thousands) (Amounts may not add or compute due to rounding) Three Months Ended Consolidated Americas Europe Asia-Pacific and Japan February 28, February 28, February 28, February 28, February 28, February 28, February 28, Fe

  22. Slide 22: Reconciliation of GAAP to non-GAAP financial measures

    Reconciliation of GAAP to non-GAAP financial measures TD SYNNEX (Amounts in thousands) (Amounts may not add or compute due to rounding) Three Months Ended February 28, Non-GAAP gross billings in constant currency February 28, 2023 2022 Revenue $ 15,125,371 $ 15,469,977 Costs incurred related to sale

  23. Slide 23: Reconciliation of GAAP to non-GAAP financial measures

    Reconciliation of GAAP to non-GAAP financial measures TD SYNNEX (Amounts in thousands) (Amounts may not add or compute due to rounding) Three Months Ended February 28, Gross profit and gross margin 2023 February 28, 2022 Revenue $ 15,125,371 $ 15,469,977 Gross profit $ 1,003,567 $ 968,661 Purchase a

  24. Slide 24: Reconciliation of GAAP to non-GAAP financial measures

    Reconciliation of GAAP to non-GAAP financial measures TD SYNNEX (Amounts in thousands) (Amounts may not add or compute due to rounding) Three Months Ended Consolidated Americas Europe Asia-Pacific and Japan February 28, February 28, February 28, February 28, February 28, February 28, February 28, Fe

  25. Slide 25: Reconciliation of GAAP to non-GAAP financial measures

    Reconciliation of GAAP to non-GAAP financial measures TD SYNNEX (Amounts in thousands) (Amounts may not add or compute due to rounding) Three Months Ended Non-GAAP operating income in constant currency February 28, 2023 February 28, 2022 Operating income $ 298,162 $ 222,440 Acquisition, integration

  26. Slide 26: Reconciliation of GAAP to non-GAAP financial measures

    Reconciliation of GAAP to non-GAAP financial measures TD SYNNEX (Amounts in thousands) (Amounts may not add or compute due to rounding) Three Months Ended Free cash flow February 28, 2023 Net cash used in operating activities $ (102,795) Purchases of property and equipment (37,278) Free cash flow $

  27. Slide 27: Reconciliation of GAAP to non-GAAP financial measures

    Reconciliation of GAAP to non-GAAP financial measures TD SYNNEX (Amounts in thousands) (Amounts may not add or compute due to rounding) Three Months Ended Non-GAAP interest expense February 28, 2023 Interest expense, net $ 80,200 Acquisition and integration interest costs (2,242) Non-GAAP interest e

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

    Reconciliation of GAAP to non-GAAP financial measures TD SYNNEX (Amounts 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 February 28, 2023 Income before income taxes $ 217,806 Acquisition,

  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 November November November February 28, 30, August 31, May 31, February 28, 30, August 31, May 31, February 28, 30, August 31, 2023 2022

  30. Slide 30: 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 February 28, February 28, 2023 2022 Diluted EPS $ 1.75 $ 1.37 Acquisition, integration & restructuring costs 0.56 0.99 Amortization of i

  31. Slide 31: Calculation of financial metrics

    Calculation of financial metrics TD SYNNEX (Amounts in thousands) (Amounts may not add or compute due to rounding) February 28, 2023 ROIC Operating income (trailing fiscal four quarters) $ 1,126,595 Income taxes on operating income(1) (237,869) Operating income after taxes $ 888,726 Total invested c

  32. Slide 32: Reconciliation of GAAP to non-GAAP financial measures

    Reconciliation of GAAP to non-GAAP financial measures TD SYNNEX (Amounts in millions, except per share amounts) (Amounts may not add or compute due to rounding) Forecast Three Months Ending May 31, 2023 Net income and diluted EPS Low High Net income $ 105 $ 152 Acquisition, integration and restructu

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

    Reconciliation of GAAP to non-GAAP financial measures TD SYNNEX (Amounts in millions) (Amounts may not add or compute due to rounding) Forecast Three Months Ending Non-GAAP interest expense May 31, 2023 Interest expense, net $ 78 Acquisition and integration interest costs (2) Non-GAAP interest expen

  34. Slide 34: 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 (Amounts in billions) May 31, 2023 Non-GAAP gross billings Low High Revenue $ 14.0 $ 15.0 Costs incurred related to sales of third-party supplier service cont

  35. Slide 35: Calculation of financial metrics

    Calculation of financial metrics TD SYNNEX (Amounts in thousands) (Amounts may not add or compute due to rounding) Leverage ratio February 28, 2023 November 30, 2022 August 31, 2022 May 31, 2022 Total borrowings (a) $ 4,388,723 $ 4,103,793 $ 4,134,437 $ 4,111,202 Less: cash and cash equivalents (b)

  36. Slide 36: TD SYNNEX results

    TD SYNNEX results TD SYNNEX (Amounts in millions) (Amounts may not add or compute due to rounding) Three Months Ended February 28, 2023 November 30, 2022 August 31, 2022 May 31, 2022 February 28, 2022 November 30, 2021 Revenue $ 15,125.4 $ 16,248.0 $ 15,356.1 $ 15,269.8 $ 15,470.0 $ 15,611.3 Cost of

  37. Slide 37: Legacy SYNNEX results

    Legacy SYNNEX results SYNNEX CORPORATION (Amounts 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 (4

  38. Slide 38: Legacy Tech Data results

    Legacy Tech Data results TIGER PARENT (AP) CORPORATION AND SUBSIDIARIES HISTORICAL FINANCIAL INFORMATION (Amounts 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,

  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) (Amounts 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

  40. Slide 40: Combined legacy SYNNEX and legacy Tech Data results

    Combined legacy SYNNEX and legacy Tech Data results Combined (Legacy SYNNEX and Legacy Tech Data) (Amounts in millions) (Unaudited) (Amounts may not add or compute due to rounding) Trailing Twelve Months for Periods Ended February 28, November 30, August 31, May 31, February 28, November 30, August

  41. Slide 41: Reconciliation of GAAP to non-GAAP financial measures

    Reconciliation of GAAP to non-GAAP financial measures TD SYNNEX (Amounts in millions) (Amounts may not add or compute due to rounding) Trailing Twelve Months for Period Ended February 28, Adjusted EBITDA less Capex 2023 Operating income $ 1,126.6 Adjustments Acquisition, integration and restructurin

  42. Slide 42: 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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