Synnex — Interim / Quarterly Report 2021

Oct 18, 2021

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Q2 2021 Results SYNNEX TECH. INTL. CORP.

August, 2021

Disclaimer

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IMPORTANT NOTICE

Synnex’s statements of its current expectations provided herein are forward-looking. These statements are subject to risks and uncertainties that might cause significant deviations from actual results, including but not limited to changes in business policy, possible fluctuations in economic situations, technology development, competition environment, and other circumstances beyond control. Synnex undertakes no obligation to update the forward-looking statements to reflect events or circumstances after the issuance of the statements.

Nothing contained herein constitutes an investment advice, offer or solicitation for the purchase or sale of any financial instrument. While reasonable care has been taken to ensure that the information contained herein is not untrue or misleading at the time of publication, Synnex makes no representation that it is accurate or complete. Neither Synnex nor any of its officers or employees shall be liable for any direct, indirect or consequential loss, damage, cost or expense incurred or arising from any use of the information contained herein.

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Company Overview

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A USD	$45BGlobal Hi-Tech Service Provider	$45BGlobal Hi-Tech Service Provider	Supply	Chain
			USA	1980	No.1
			Japan	1962	No.3
			Taiwan	1975	No.1
			HK / China	1982	No.3
			Australia	1991	No.1
			(New Zealand)
			Indonesia	1975	No.1
India	1993	No.2	Thailand	1988	No.1
Middle East / Africa	1997	No.1	Vietnam	1988	No.1
Turkey	1991	No.1
Across 38 countries, 200 offices, 60% world population

Redington : India, Srilanka, Bangladesh, Middle East, Africa, Turkey, CIS P4 SYNNEX US : USA, Canada, Mexico, Japan

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Historical Performance

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Profitability Trend

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Gross Margin
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3yr average 4.21%
- 15yr average 3.94%
Operating Income
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3yr average 1.78%
- 15yr average 1.52%
OPI/GP Ratio
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3yr average 42%
- 15yr average 39%
Profit Before Tax
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3yr average 2.61%
- 15yr average 2.07%
PBT/GP Ratio
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3yr average 62%
- 15yr average 53%
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Value Creation for Shareholder

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Net Income & ROE Net Income: - 5yr CAGR 14% - 15yr CAGR 8% ROE: 15yr average 14% Book Value - Q2Y21: NT$ 54.3B & NT$ 33 per share - 15yr CAGR 6% Dividend & Payout ratio - Y20 NT$3.30, Payout 67% - 15yr average: NT$ 2.32 - 15yr average Payout 66%

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Q2Y21 Performance

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Q2Y21 Performance Snapshot

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Revenue Gross Margin Operating Income
27% 13% 15%
Y21Q2 NT$96.6B NT$4.1B / 4.21% NT$2.0B / 2.12%
JV Income Profit before Tax EPS
180% 67% 87%
NT$755M NT$3.8B / 3.98% PAT NT$3.3B / NT$2.00
WC Days ROE Free Cash Flow
60 days 24.7% NT$ -6.6B
Y20Q2 59 days / +1 days 15yr avg. 14%
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: Historical High : Record High in Same Period

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H1Y21 Performance Snapshot

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Revenue Gross Margin Operating Income
27% 17% 25%
Y21H1 NT$183.3B NT$8.1B / 4.44% NT$4.2B / 2.29%
JV Income Profit before Tax EPS
87% 53% 64%
NT$1,428M NT$6.9B / 3.76% PAT NT$5.9B / NT$3.52
WC Days ROE Free Cash Flow
64 days 21.8% NT$3.4B
Y20H1 64 days / +0 days 15yr avg. 14%
: Historical High : Record High in Same Period
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Performance Trend

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By Quarter

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By Half-Year

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Performance – By Product

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NT$ B

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|---|---|---|---|---|
|Y21Q2|Y21H1|
|Revenue|YOY|Revenue|YOY|
|Consolidated|$96.6|27%|$183.3|27%|
|IT Commercial|25.1|18%|47.7|21%|
|IT Consumer|36.4|15%|69.2|13%|
|Telecom|3.4|20%|7.8|22%|
|IC Components|31.7|55%|58.7|57%|

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Consolidated Income Statement – Q2Y21

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NT$M
Y21Q2 YOY Y20Q2
Revenue $ 96,567 27% $ 75,944
Gross profit 4,069 13% 3,603
Operating expenses (2,027) 11% (1,827)
Operating income 2,043 15% 1,777
Others income/expense 1,798 529
Core-biz investments * 755 180% 270
Others 1,043 259
Pre-tax income & minority interest 3,840 67% 2,306
Income tax (414) (459)
Minority interest (income) loss (91) (63)
Net income $ 3,335 87% $ 1,784
EPS (NT$) $ 2.00 87% $ 1.07
Gross profit% 4.2% 4.7%
Operating expenses% 2.1% 2.4%
Operating income% 2.1% 2.3%
Pre-tax income% 4.0% 3.0%
Net income% 3.5% 2.3%
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• Investments in Synnex USA, Redington India, Synnex Thailand and Synnex FPT which were accounted under equity method.

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Consolidated Income Statement – H1Y21

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NT$M
Y21H1 YOY Y20H1
Revenue $ 183,311 27% $ 144,649
Gross profit 8,139 17% 6,985
Operating expenses (3,938) 8% (3,631)
Operating income 4,201 25% 3,354
Others income/expense 2,700 1,144
Core-biz investments * 1,428 87% 765
Others 1,272 379
Pre-tax income & minority interest 6,901 53% 4,498
Income tax (800) (780)
Minority interest (income) loss (227) (132)
Net income $ 5,873 64% $ 3,586
EPS (NT$) $ 3.52 64% $ 2.15
Gross profit% 4.4% 4.8%
Operating expenses% 2.1% 2.5%
Operating income% 2.3% 2.3%
Pre-tax income% 3.8% 3.1%
Net income% 3.2% 2.5%
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• Investments in Synnex USA, Redington India, Synnex Thailand and Synnex FPT which were accounted under equity method.

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Working Capital Metrics

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Indicator Y19Q1 Y19Q2 Y19Q3 Y19Q4 Y20Q1 Y20Q2 Y20Q3 Y20Q4 Y21Q1 Y21Q2
Net Turnover Days 70 65 53 51 69 59 50 53 67 60
AR Days 62 57 53 52 65 57 56 58 66 59
INV Days 45 40 32 32 42 37 28 27 33 30
AP Days 37 33 33 33 38 35 34 31 32 29
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Balance Sheet Key Index

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Y20Q2 Y20Q4 Y21Q2
Debt Ratio 65% 64% 66% Net Int. bearing Debt / Equity 57% 73% 67% Net Worth Per Share(NT$) 28.3 32.7 32.6

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Group website http://www.synnex-grp.com/en CSR http://www.synnex-grp.com/en/csr-report

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