Td Synnex Corporation · NYSE:SNX

Td Synnex — Q4 2023 Earnings Presentation

42 slides from Td Synnex's earnings presentation, Jan 9, 2024

1. Slide 1: Investor Presentation

   Investor Presentation January 2024

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: FY 2023: Delivering strong profitability, EPS generation and shareholder returns

   FY 2023: Delivering strong profitability, EPS generation and substantial shareholder returns (1) (3) $57.7B 2.9% $11.26 Adjusted Revenue(2) Non-GAAP operating margin(2) Non-GAAP EPS(2) 20%+ $1.3B $751M High-Growth technologies gross Free cash flow(2) Returned to shareholders, billings as a percentag

4. Slide 4: Delivering on our plan: portfolio transformation, cost optimization and capital return

   Delivering on our plan: portfolio transformation, cost optimization and capital return Continued High Growth Technologies Merger Synergies + Cost Optimization Cash Flow + Capital Allocation Execution (1) High Growth Technologies Gross Billings Cash Returned to Shareholders(3) 20% 22% 17% +213% • Exe

5. Slide 5: Attractive long-term growth in profitability

   Attractive long-term growth in profitability Gross Profit(1) Non-GAAP Operating Income(1,2) Non-GAAP Diluted EPS(2) 1. Figures are on a combined basis assuming the merger occurred at the beginning of the period. 2. Non-GAAP measure. See the appendix to this presentation for definitions of non-GAAP m

6. Slide 6: FQ4: Strong execution and increased shareholder returns

   FQ4: Strong execution and increased shareholder returns Revenue of $14.4B, within the previously provided outlook range, non-GAAP gross billings(1) of $19.7B, at the high end of the outlook range, and non-GAAP EPS(1) of $3.13, above outlook range Non-GAAP gross margin(1) of 7.07% (up 44 bps y/y) and

7. Slide 7: FQ4: Healthy margins and EPS above expectations

   FQ4: Healthy margins and EPS above expectations Q4 FY23 B/(W) vs PY Revenue ($B) $14.4 (11)% / (13)%(2) Non-GAAP gross billings ($B)(1) $19.7 (6)% / (8)%(2) Operating income ($M) $287 (14)% Non-GAAP operating income ($M)(1) $427 (14)% / (15)%(2) Operating margin 1.99% (7) bps Non-GAAP operating marg

8. Slide 8: Q1 FY 2024 Outlook

   Q1 FY 2024 Outlook Guidance Q1 FY24E Revenue (B) $14.0 – $14.7 Non-GAAP gross billings (B)(1) $19.0 – $20.0 Net income (M) $147 – $192 Non-GAAP net income (M)(1) $232 – $277 Diluted EPS $1.65 – $2.15 Non-GAAP diluted EPS(1) $2.60 – $3.10 Estimated outstanding diluted weighted avg. shares (M) 88.4 In

9. Slide 9: Strong investment grade balance sheet

   Strong investment grade balance sheet Significant liquidity Long dated, well-laddered capital structure ($M) Nov 2022 Nov 2023 Cash $523M $1,034M Unsecured revolver $3,500M $3,500M A/R securitization $1,500M $1,500M Total liquidity $5,523M $6,034M Investment grade balance sheet with low costs – FQ4’

10. Slide 10: Significant FCF potential with a focus on shareholder returns

    Significant FCF potential with a focus on shareholder returns Medium-term target capital allocation $621M of stock repurchased in FY2023 Supplement organic growth with strategic ~$400M remaining stock investments and M&A buyback authorization in place on existing $1B program Optimize cost of capital

11. Slide 11: 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

12. Slide 12: 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

13. Slide 13: Appendix

    © TD SYNNEX Appendix

14. Slide 14: TD SYNNEX

    TD SYNNEX Connecting the global IT system GLOBAL IT PLATFORMS SPECIALIZED SKILLS 14

15. Slide 15: Well positioned to benefit from industry evolution

    Well positioned to benefit from industry evolution 15

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

    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) 91% conversion OEM COGS >95% $1,749 ~2% Back-end Opex $(150) $1,599 $960 $20 <5% Margin ~4% Front- end Margin ~65% Variab

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 23 Zero Operating cash flow During recessionary environments when revenues decline, DSO DIO DPO balance she

18. Slide 18: Recent partner awards

    © TD SYNNEX Recent partner awards (J Alibaba Cloud 7sus' aws cow) valli. COHESITY [—] OIG” E extreme FEATINET. HPE 22s Hewett Packard @ intel. EE Microsoft FINetApp A NUTAND<. @ paloalto’ Ruckus SAMSUNG SEAL SHIELD” veeaAm 18

19. Slide 19: ESG highlights

    ESG highlights Environmental Social Governance • Committed to Science-Based Target Company • Strong corporate governance initiative (SBTi) Business Ambition • Seeking to increase our gender based on our values of Inclusion, Pledge diversity with 50% of our workforce Collaboration, Integrity and • Pl

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 (Currency in thousands) (Amounts may not add or compute 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, N

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 November 30, November 30, Non-GAAP gross billings in constant currency 2023 2022 Revenue $ 14,407,306 $ 16,247,957 Costs incurred and netted aga

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 November 30, November 30, Non-GAAP gross profit and gross margin 2023 2022 Revenue $ 14,407,306 $ 16,247,957 Gross profit $ 1,018,579 $ 1,059,71

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 Twelve Months Ended November 30, November 30, November 30, November 30, Non-GAAP operating income and non-GAAP operating margin 2023 2022 2023 2

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 Non-GAAP operating income in constant currency November 30, 2023 November 30, 2022 Operating income $ 286,754 $ 334,162 Acquisition, integration

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 Twelve Months Ended Free cash flow November 30, 2023 November 30, 2023 Net cash provided by operating activities $ 210,668 $ 1,407,373 Purchases

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 Non-GAAP interest expense, net November 30, 2023 Interest expense, net $ 66,130 Acquisition and integration interest costs (501) Non-GAAP intere

28. Slide 28: 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 income before income taxes, non-GAAP provision for income taxes and non- GAAP effective tax rate November 30, 2023 Income before income

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 30, November 30, 2023 2022 Non-GAAP diluted EPS(1) Diluted EPS(1) $ 2.06 $ 2.31 Acquisition, integration & 0.52 0.55 restructur

30. Slide 30: 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) Fiscal Years Ended November 30, November 30, November 30, November 30, 2023 2022 2021 2020 Non-GAAP diluted EPS(1) Diluted EPS $ 6.70 $ 6.77 $ 6.24 $ 6.46 Acquisit

31. 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 or compute due to rounding) Twelve Months Ended November 30, November 30, Non-GAAP diluted EPS in constant currency 2023 2022 Diluted EPS (1) $ 6.70 $ 6.77 Acquisition, integration &

32. Slide 32: Calculation of financial metrics

    Calculation of financial metrics TD SYNNEX (Currency in thousands) (Amounts may not add or compute due to rounding) November 30, 2023 ROIC Operating income (trailing fiscal four quarters) $ 1,078,032 Income taxes on operating income(1) (222,018) Operating income after taxes $ 856,014 Total invested

33. Slide 33: 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 February 29, 2024 Net income and diluted EPS(1) Low High Net income $ 147 $ 192 Acquisition, integration and

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 (Currency in billions) February 29, 2024 Non-GAAP gross billings Low High Revenue $ 14.0 $ 14.7 Costs incurred and netted against revenue related to sales of

35. Slide 35: Calculation of financial metrics

    Calculation of financial metrics TD SYNNEX (Currency in thousands) (Amounts may not add or compute due to rounding) Leverage ratio November 30, 2023 August 31, 2023 May 31, 2023 February 28, 2023 Total borrowings (a) $ 4,082,778 $ 4,079,182 $ 4,105,112 $ 4,388,723 Less: cash and cash equivalents (b)

36. Slide 36: TD SYNNEX results

    TD SYNNEX results TD SYNNEX (Currency in millions) (Amounts may not add or compute due to rounding) Three Months Ended November 30, 2021 Revenue $ 15,611.3 Cost of revenue (14,668.1) Gross profit 943.2 Operating expenses: Selling, general and administrative expenses (655.7) Acquisition, integration

37. Slide 37: 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, May 31, February 29, 2021 2021 2021 2020 2020 2020 2020 Revenue $ 5,207.1 $ 5,856.8 $ 4,939.0 $ 6,11

38. Slide 38: Legacy Tech Data results

    Legacy Tech Data results TIGER PARENT (AP) CORPORATION AND SUBSIDIARIES (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, May 31, February 29, 2021 2021 2021 2020 2020 2020 2020 Revenue $ 9,1

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) Three Months Ended August 31, May 31, February 28, November 30, August 31, May 31, February 29, 2021 2021 2021 2020 20

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) (Currency in millions) (Unaudited) (Amounts may not add or compute due to rounding) Trailing Twelve Months for Periods Ended November 30, November 30, 2021 2020 Revenue $ 60,623.5 55,974.5 Cost of reven

41. Slide 41: 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 November 30, Adjusted EBITDA less Capex 2023 Operating income $ 1,078.0 Adjustments Acquisition, integration and restructuri

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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