Slide 1: Investor Presentation
Investor Presentation January 2023
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: FY 2022: Strong Year
FY 2022: Strong Year 1 +9% +20 % (2,4) $11.94 Adjusted(1,2) y/y revenue growth Non-GAAP operating income(3) Non-GAAP EPS(3) growth y/y $0.74 above high-end of initial outlook +23% $145M $240M Growth y/y in High-Growth Synergies realized, ahead of schedule Capital returned to shareholders via technol
Slide 4: Recent awards & recognition
Recent awards & recognition We’re proud of the industry awards we’ve received that recognize everything from our expansive global 2022 Worldwide Partner of the Year 2022 Global Distributor of the Year 2022 Global Distributor of the Year; 2022 North America Partner of the Year AMS Distribution Partne
Slide 5: FY 2022: Significant revenue and profit expansion
FY 2022:Financial Recent significantResults revenue and profit expansion Adjusted revenue growth of +9%(1,2), exceeding targeted 6-8% range and driven by market share gains, 1 acceleration in high-growth technologies and solid growth of core technology portfolio 2 Robust operating income and margin
Slide 6: FQ4: Strong topline growth with profitability expansion
FQ4: Strong topline growth with profitability expansion Revenue of $16.2B, representing y/y growth of 14%(1), well above expectations and driven by strong demand in Advanced Solutions, high-growth technologies, especially Hyperscale Infrastructure and Services Non-GAAP operating income of $496M(2),
Slide 7: Q4 FY 2022 Results
Q4 FY 2022 Results Q4 FY22 B/(W) vs PY Revenue ($B) $16.2 +4% / +14%(2) Operating Income ($M) $334 +80% Non-GAAP Operating Income ($M) (1) $496 +22% / +26%(3) Operating Margin 2.06% +87 bps Non-GAAP Operating Margin(1) 3.05% +44 bps Non-GAAP Earnings Per Share(1) $3.44 +20% Key Takeaways 1 Adjusted
Slide 8: Robust organic growth across Core and High Growth
Robust organic growth across Core and High Growth 1 Adjusted revenue growth of +14% y/y (2), reflecting robust growth across all 3 regions as supply improved 2 Merger-related revenue recognition policy alignment headwind of ~$500M 43.6% 43.3% 3 FX headwind of ~$1B (1), primarily due to Euro devaluat
Slide 9: Recent Financial and profitability results
Expanding revenueResults Recent Financial and profitability In $M (except EPS and net leverage) Combined LTM Net Sales and Y/Y Growth(1,4) % Combined LTM Non-GAAP OI(2,4) and % Margin(2,4) OI Conversion % (3) $60,325 $60,973 $60,623 $60,848 $60,690 $61,707 $62,344 44% 42% 42% 42% 43% 40% 41% $1,636
Slide 10: Q1 FY 2023 outlook
Q1 FY 2023 outlook Guidance Q1 FY23E Revenue (B) $15.2 – $16.2 Net Income (M) $139 – $178 Non-GAAP Net Income (M)(1) $248 – $287 Diluted EPS $1.46 – $1.86 Non-GAAP Diluted EPS(1) $2.60 – $3.00 Outstanding Diluted Weighted Avg. shares (M) 94.8 Net Total Interest Expense (M) ~$73 Tax Rate 24% • Equate
Slide 11: Cost synergies significantly ahead of plan
Cost synergies significantly ahead of plan Year 1 Synergies Year 2 Targets IT Corporate, • Targeting an additional ~$55M in optimization and including taxes cost synergy benefits weighted toward SG&A and interest Synergies • On track to complete Americas ERP migration project by September 2023, resu
Slide 12: Strong investment grade balance sheet
Strong investment grade balance sheet Significant liquidity Long dated, well-laddered capital structure ($M) Nov 2022 Cash $523M Unsecured revolver $3,500M A/R securitization $1,500M 3,500 Total liquidity $5,523M Investment grade balance sheet with low costs – FQ4’22 1500 1,200 Total debt leverage $
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 Supplement organic Announced $1B stock growth with strategic repurchase authorization investments and M&A 25% Optimize cost of capital and target adjusted (1) $0.35 quarterly ROIC ~2-4% above ~$1.5B+
Slide 14: Key investment points
Key investment points Leading Global Provider of End-to-End Distribution, Systems Design & Integration Solutions for the IT Industry Business Levered to Secularly Growing IT Spend Increasing Focus on High-Growth Technologies, Growing Double-Digits at Accretive Margins Expect to generate >$1B of Free
Slide 15: Appendix
© TD SYNNEX Appendix
Slide 16: 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 17: 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 18: Solid track record of profitable growth
Solid track record of profitable growth COVID crisis Net revenue Global financial crisis +6% CAGR 60.6 62.3 56.308919 56.975571 50.902635 39.56528 39.592359 38.853884 38.974645 35.773298 36.01403 33.866402 31.07731 31.698543 30.601637 26.786726 28.361843 25.371686 2005 2006 2007 2008 2009 2010 2011
Slide 19: Highly variable cost structure provides flexibility in an economic downturn
Highly variable cost structure provides flexibility in an economic downturn Approximately 2/3 of total cash operating More than 90% of overall cost structure is COGS, which is expenses are estimated to be variable directly linked to revenue generation and variable in nature ~35% Fixed Opex COGS ~65%
Slide 20: 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 41 25 14 23 53 51 42 48 54 46 42 41 Zero (56) (59) (75) 2000 2001 2002 2003 2008 2009 2010 2019 2020 2021 (84) Opera
Slide 21: Corporate citizenship highlights
Corporate citizenship 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) Bu
Slide 22: Corporate citizenship recognition
Corporate citizenship recognition EcoVadis Sustainability, Bronze Great Places to Best Place to Work for LGBTQ CRN UK, 2022 Innovative Medal Rating, 2022 Work® Certified, U.S. Equality, 2022, U.S. Project Award, Ecosystem Sustainability Project Forbes FORTUNE Forbes World’s Top Female World’s Most A
Slide 23: 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 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 due to rounding) Three Months Ended Consolidated Americas Europe Asia-Pacific and Japan November 30, November 30, November 30, November 30, November 30, November 30, November 30, November 30,
Slide 25: Reconciliation of GAAP to non-GAAP financial measures
Reconciliation of GAAP to non-GAAP financial measures TD SYNNEX (Amounts in billions) (Amounts may not add due to rounding) Three Months Ended Twelve Months Ended November 30, November 30, November 30, November 30, Adjusted Revenue Growth 2022 2021 2022 2021(3) Revenue $ 16.2 $ 15.6 $ 62.3 $ 60.6 Ad
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 due to rounding) Three Months Ended November 30, 2022 November 30, 2021 Gross profit and gross margin Revenue $ 16,247,957 $ 15,611,266 Gross profit $ 1,059,719 $ 943,170 Purchase accounting a
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 due to rounding) Three Months Ended Consolidated Americas Europe Asia-Pacific and Japan November 30, November 30, November 30, November 30, November 30, November 30, November 30, November 30,
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 due to rounding) Three Months Ended Non GAAP Operating income in constant currency November 30, 2022 November 30, 2021 GAAP operating income $ 334,162 $ 185,365 Acquisition, integration and re
Slide 29: 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 due to rounding) Three Months Ended Free cash flow November 30, 2022 Net cash provided by operating activities $ 302,189 Purchases of property and equipment (38,527) Free cash flow $ 263,662 2
Slide 30: 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 due to rounding) Three Months Ended Income before income taxes, provision for income taxes and effective tax rate November 30, 2022 GAAP income before income taxes $ 265,224 Acquisition, integ
Slide 31: 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 due to rounding) Three Months Ended November 30, August 31, May 31, February 28, November 30, August 31, May 31, February 28, November 30, August 31, 2022 2022 2022 2022 2021 2021 202
Slide 32: 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 due to rounding) Twelve Months Ended November 30, November 30, 2022 2021 Diluted EPS $ 6.77 $ 6.24 Acquisition, integration & restructuring costs 2.40 2.51 Amortization of intangibles
Slide 33: 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 due to rounding) Forecast Three Months Ending February 28, 2023 Low High Net income $ 139 $ 178 Acquisition, integration and restructuring costs 50 50 Amortization of
Slide 34: Calculation of financial metrics
Calculation of financial metrics TD SYNNEX (Amounts in thousands) (Amounts may not add due to rounding) November 30, 2022 ROIC Operating income (trailing fiscal four quarters) $ 1,050,873 Income taxes on operating income(1) (223,384) Operating income after taxes $ 827,489 Total invested capital comp
Slide 35: Calculation of financial metrics
Calculation of financial metrics TD SYNNEX (Amounts in thousands) (Amounts may not add due to rounding) Leverage ratio November 30, 2022 August 31, 2022 May 31, 2022 February 28, 2022 Total borrowings $ 4,103,793 $ 4,134,437 $ 4,111,202 $ 5,046,620 Less: cash and cash equivalents (b) 522,604 350,810
Slide 36: TD SYNNEX results
TD SYNNEX results TD SYNNEX (Amounts in millions) (Amounts may not add due to rounding) Three Months Ended November 30, 2022 August 31, 2022 May 31, 2022 February 28, 2022 November 30, 2021 Revenue $ 16,248.0 $ 15,356.1 $ 15,269.8 $ 15,470.0 $ 15,611.3 Cost of revenue (15,188.2) (14,440.1) (14,314.0
Slide 37: Legacy SYNNEX results
Legacy SYNNEX results SYNNEX CORPORATION (Amounts in millions) (Unaudited) (Amounts may not add 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 (4,894.4) (5,
Slide 38: Legacy Tech Data results
Legacy Tech Data results TIGER PARENT (AP) CORPORATION AND SUBSIDIARIES HISTORICAL FINANCIAL INFORMATION (Amounts in millions) (Unaudited) Three Months Ended August 31, May 31, February 28, November 30, August 31, 2021 2021 2021 2020 2020 Revenue $ 9,132.1 $ 9,570.6 $ 10,306.6 $ 9,842.1 $ 8,384.8 Co
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 round 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 $ 15,427.
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 round due to rounding) Trailing Twelve Months for Periods Ended November 30, August 31, May 31, February 28, November 30, August 31, May 31, 2022 2022
Slide 41: 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 round due to rounding) Trailing Twelve Months for Periods Ended November 30, November 30, 2022 2021 (1) Operating income $ 1,050.9 $ 893.5 Adjustments
Slide 42: THANK YOU
THANK YOU Liz Morali Investor Relations TD SYNNEX Corporation 510-668-8436 IR@tdsynnex.com IR website: ir.tdsynnex.com