SNX 7AE88A38-45E7-4B82-BFFB-3404FD8027A5_SNX012709

SYNNEX (NYSE: SNX)Analyst Day PresentationAnalyst Day Presentation

January 27, 2009

WELCOME

Thomas Alsborg

Chief Financial Officer

2

Safe Harbor

This presentation contains forward-looking statements th at involve risks and uncertainties. Theseforward looking statements include, but are not limited to, statements regarding expectations of ourrevenues, net income and earnings per share for the first qua rter of fiscal 2009 and beyond, ourcontinued execution, expansion of our business lines and im provements in efficiency and productivity,and our goal to provide expected profitability and returns, are subject to risks and uncertainties thatcould cause actual results to differ materially from those d iscussed in the forward-looking statements.These risks and uncertainties include, but are not limited t o: general economic conditions and anyweakness in IT spending; our ability to differentiate our bu siness and sustain competitive advantages,our ability to successfully execute on strategic focus goal s in the future, market acceptance and productlife of the products we assemble and distribute; the loss or c onsolidation of one or more of oursignificant OEM suppliers or customers ; competitive conditions in our industry and their impact on our

3

significant OEM suppliers or customers ; competitive conditions in our industry and their impact on ourmargins; pricing, margin and other terms with our OEM suppli ers; our ability to gain market share;variations in supplier-sponsored programs; changes in our costs and operating expenses; changes inforeign currency exchange rates; risks associated with our international operations; uncertainties andvariability in demand by our reseller and contract assembly customers; supply shortages or delays; anytermination or reduction in ours our customers’ floor plan f inancing arrangements; credit exposure toour reseller customers, and negative trends in their busine sses; any future incidents of theft; risksassociated with our contract assembly business.

For a discussion of the factors that could cause actual resul ts to differ, please refer to our most recentform 10-K under the section listed as “Risk Factors”. Except as required by law, we undertake noobligation to update or revise publicly any forward-lookin g statements after the date of this presentation.

Did you know …

SYNNEX has achieved 86 consecutive

profitable quarters

4

profitable quarters

SYNNEX is #1 with HP for Channel Sales

Out for last 2 years

Did you know …

5

Out for last 2 years

SYNNEX is the #1 Intel distributor in

North America over the last three years

Did you know …

6

North America over the last three years

SYNNEX has a comprehensive Public

Sector program and is the only distributor

Did you know …

7

Sector program and is the only distributor

with a GSA schedule and warehouse in

Chantilly, Virginia

SYNNEX has built 5 of the top 100

supercomputers in the world

Did you know …

8

supercomputers in the world

Meet the SYNNEX Executive Management Team

Kevin MuraiPresident and

Chief Executive

Thomas AlsborgChief Financial

Officer

Dennis Polk Chief Operating

Officer

Peter Larocque President, U.S.

Distribution

Jim Estill CEO, SYNNEX

Canada

Chris Caldwell Senior Vice

President, Global

9

Chief Executive

Officer

OfficerOfficerDistribution Canada President, Global

Business Solutions

Schedule of Today’s Event

9:30 a.m. Introductions - Thomas Alsborg, CFO

9:45 a.m. Kevin Murai, President & CEO

Peter Larocque, President, U.S. Distribution

Jim Estill, CEO, SYNNEX Canada

Dennis Polk, COO

11:30 p.m. Break for Lunch

10

11:30 p.m. Break for Lunch

12:30 p.m. Chris Caldwell, SVP, SYNNEX Global Business Solutions

Thomas Alsborg, CFO

Q&A Session – Executive Management

Closing Remarks – Kevin Murai

2:00 - 3:00 p.m. Reception

11

SYNNEX CORPORATION

Kevin MuraiPresident and Chief Executive Officer

SYNNEX – Overview

� Leading Business Process Services Company

� Channel Solutions for the Technology Industry

� Value-Add Supply Chain Solutions

– Core IT distribution solutions

– Supply chain management/contract assembly solutions

– Business process outsourcing solutions

� Fortune 500 Company

We offer OEMs and VARs an integratedsuite of Business Process Services

comprising: IT distribution, supply chain management, contract assembly and

business process outsourcing.

Demand generation,tech/customer support

12121212

� Fortune 500 Company

� 28 Years of Operating History

� Over 6,500 Employees Worldwide

� Seasoned Executive Management Team

� FY 2008 Revenues of $7.7 Billion

� Established Long-Standing Industry

Relationships

Core ITdistribution

services

Supply chain managementservices / Contractassembly services

SYNNEX Business Model- Providing Channel Solutions for the Technology Industry

End Users

Consumers

SMB

CorporateDistribution

15,000 +

Resellers /

Retailers /

Tech Support Supply Chain

Management

Design

Services

Demand Generation

100 + IT OEMs

13

We are expanding our services beyond Technology Distribution

� One-stop shop for CE and IT resellers

� Efficient go-to-market engine for manufacturers

� Supply-Chain Management reduces manufacturers inventory and improves time-to-market

� Design and Assembly Services

� Technical Support pre- and post-sales

� Demand Generation enables manufacturers’ go-to-market strategies

Corporate

Gov’tRetailers /

DMRsContract

Assembly

7.5% 7.4%7.9%

8.1%

6.9%7.3% 7.3%

8.9%

6.9%7.3%

6.6%

8.9%

7.8%7.2%

8.3%

10.6%

0.0%

2.0%

4.0%

6.0%

8.0%

10.0%

12.0% Prior Year Current Year

2.00%

3.00%

4.00%

5.00%

6.00%

Q405

Operating Margin

1.53%

Q408

Operating Margin

2.28%

SYNNEX Business Model- Financial Impact

SYNNEX Margin Trends Over Time SYNNEX ROIC Trends

0.0%

Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4

Latest QuarterROIC

AnnualROIC(1)

10.6% 8.5%

8.2%

5.8%

Latest QuarterOperating

Margin

TTM Operating Margin (1)

2.28% 1.95%

1.12%

0.86%

Q4

05

Q1

06

Q2

06

Q3

06

Q4

06

Q1

07

Q2

07

Q3

07

Q4

07

Q1

08

Q2

08

Q3

08

Q4

08

Gross Profit % Sales SG&A % Sales SG&A % Sales Excluding Charges

14141414

2007 2008

IM

TECD

IM

TECD

Note:1) TTM and annual numbers for IM and TECD are based on the prior three quarters of actual results for each companies respective fiscal year plus analyst estimates for the final quarter for each companies respective fiscal year.

5,641

6,344

7,004

7,768

1,000

2,000

3,000

4,000

5,000

6,000

7,000

8,000

9,000

1.38

1.69

2.04

2.63

0.50

1.00

1.50

2.00

2.50

3.00

EPS Growth in Dollars

SYNNEX Business Model - Financial Impact

Revenue Growth Billions

-

1,000

2005 2006 2007 2008

-

2005 2006 2007 2008

Annual Growth2008E (1)

28.9%

-17.5%

-18.2%

Annual Growth2008E (1)

10.9%

-0.87%

4.78%

15151515

IM

TECD

IM

TECD

Note:1) Annualized numbers for IM and TECD are based on the prior three quarters of actual results for each companies respective fiscal year plus analyst estimates for the final quarter for each companies respective fiscal year.

� Market Reality – Challenging Economic Environment

� SYNNEX Continues To Perform Well

Macro Economic Environment- SYNNEX Has Gained Share In Challenging Economies

– Increased Market Share

– Margin Expansion

– Earnings Growth

– ROIC Growth

– Superior Execution

– Diversification of the

Business Model

Driven By

� And We Continue To See Opportunities – We Have A Small Slice Of A Very

Large Pie.

– North American IT spend, excluding services forecast of approximately $300 billion in 2009

� North American Tier Two Market Share forecast of approximately $60 billion in 2009

– North American CE spend estimated forecast of $178 billion in 2009

– Global BPO and IT Services estimated forecast of $424 billion 2009

16

Note: Source: IDC, CEA and Company Reports,. (January 2009, July 2008)

Market Perception vs. Reality

Market Misnomers

� “You need a global footprint”

� “You need to be the largest in the space”

FWD P/E

TTM

Op Margin (1)

Annual

ROIC (1)

EPS

Growth (1)

Revenue

Growth (1)

17

FWD P/E Op Margin (1) ROIC (1) Growth (1) Growth (1)

8.5%

8.2%

5.8%

10.9%

-0.9%

4.8%

28.9%

-17.5%

-18.2%

2.0%

1.1%

0.9%

5.3

9.6

8.6

IM

TECD

Note:(1) Annualized numbers for IM and TECD are based on the prior three quarters of actual results for each companies respective fiscal year plus analyst estimates for the final quarter for each companies respective fiscal year.

Focus on Service and

relationships

IT Systems and

Processes

IT Distribution

Logistics Services

Streamlined, low-cost

infrastructure providing

economies of scale

The SYNNEX Difference- The Way We Manage Our Business

Superior Execution Highly Efficient

Low-Cost Model

Differentiated

Business Model

Processes

High Caliber People With

A “Can-Do-Attitude”

No Distractions – Clear

Focus on Moving Our

business forward

Assembly/

Manufacturing

Business Process

Services (BPO)

IT Systems

18

Optimize Core

Business

High-Growth

Adjacent MarketsDifferentiation

Through Services� Growth Beyond

Consumer

Electronics into

� Logistics Services

� Data Mining

� Professional

SYNNEX – Our Strategic Focus

Our Strategy Will Drive Growth, Margin and ROIC

� Continued focus on

Cost Efficiencies

� Working Capital Electronics into

Lifestyle Products

� Data Capture and

POS

� Enterprise (TSD)

� Managed Services

� Professional

Services

� SYNNEX Global

Business Solutions

19

� Working Capital

management

� Line Card expansion

� Enhanced Go-to-

Market capabilities

(VAR Communities,

Key Verticals Focus)

Questions ?

21

SYNNEX U.S.

Peter Larocque

President, U.S. Distribution

Overview

US Distribution � U.S. Business is $6.2 Billion

� Exceptional Gross Margin growth

� Execution Excellence

� Diverse business81%

19%

22

� 81% of the business

� Growing business

� Growing margins

� Growing ROIC

� Seasoned Management Team

� What makes us different

� Strategic focus in 2009

� Take away thoughts

81%

What Makes Us Different

� Business Model

– Segmented customer base

– Focused line card

– Multi site warehouse

– Full service supply chain offering

– Solutions distribution

� Execution

– Systems and processes

– Exceptional people

– Flat organization

23


– Integration of companies

� Low Cost Provider

– Insourcing

– IT – Pricing model, sales P&L, processes

� Vendor - Customer Relationships

– #1 customer relationship as noted in the most recent CRN

Sourcing Guide

– #1 on 7 out of top 10 vendors (In market share)

– Data mining, incremental customer development

What Makes Us Different- Business Model - Segmentation

� 50+ Segments

� Trusted Advisor To The Customer

� Vendor Engagement To The Customer

� Unique Coverage - PRINTSolv

Business Segments

System BuilderSupplies

Retail

24242424

� Unique Coverage - PRINTSolv

TSD

Commercial

SMB/Corp/Gov’t

Outsourcing

Logistics

Over Supply

Reconditioned

Most Recent CRN Sourcing Guide: SYNNEX Voted #1 in Customer

Relationships by our customers.

What Makes Us Different- Business Model – Solutions Distribution

25

What Makes Us Different- Execution

� Business Model

– Segmented customer base, Value-Velocity, Trusted Advisor


– Multi-Warehouse



� Execution

– Exceptional people with a “can do attitude”


– Integration of companies– Integration of companies

– Great solutions and services


– Insourcing

– IT – Pricing model


– #1 customer relationship as noted in the most recent CRN Sourcing Guide



26

What Makes Us Different- Low Cost Provider

� Business Model



– Multi-Warehouse



� Execution



– Integration of companies– Integration of companies


– Insourcing

– IT – Pricing model, Sales P&L, processes





27

What Makes Us Different- Vendor\Customer Relationships

� Business Model



– Multi-Warehouse

– Full Service supply chain offering


� Execution




28



– Insourcing

– IT – Pricing model





What Makes Us Different- Vendor\Customer Relationships - Data Mining, Incremental

Vertical Market

SYNNEX

End User

Count

D&B

Total

US Base Penetration

COLLEGES, UNIVERSITIES,

PROFESSIONAL SCHOOLS, &

JR. COLLEGES 8,188 28,645 29%

ELEMENTARY AND

SECONDARY SCHOOLS40,961 171,767 24%

HOSPITALS 5,916 28,984 20%

ELECTRONIC COMPONENTS

Vertical Market Penetration (examples)Unique End User Count by Major Industry

REAL ESTATE

WHOLESALE TRADE - DURABLE GOODS

EDUCATIONAL SERVICES

HEALTH SERVICES

ENGINEERING, ACCOUNTING, …

BUSINESS SERVICES

29292929

90%+ of end users under 1000 employees (SMB)

ELECTRONIC COMPONENTS

AND ACCESSORIES 2,604 13,464 19%

FINANCE, TAXATION,

AND MONETARY POLICY 1,605 8,462 19%

EXECUTIVE OFFICES 7,478 40,253 19%

LABORATORY, ANALYTICAL,

OPTICAL & MEASURING

INSTRUMENTS 2,814 15,272 18%

ADMINISTRATION OF

PUBLIC HEALTH PROGRAMS 1,788 9,749 18%

DRUGS 1,641 9,398 17%

ELECTRIC SERVICES 2,115 12,892 16%

COMPUTER AND

OFFICE EQUIPMENT 1,608 9,833 16%

0 20,000 40,000 60,000 80,000100,000

WHOLESALE TRADE - NONDURABLE …

MISCELLANEOUS RETAIL

LEGAL SERVICES

MEMBERSHIP ORGANIZATIONS

CONSTRUCTION - SPECIAL TRADE …

REAL ESTATE

� Operational Excellence

� Consumer Electronics - NAE

� TSD

– Services

– HP Servers & Storage

– ICG

– PRINTSolv

� Vertical Markets

Strategic Focus - How We Will Outperform - Operational Excellence

30

– Government

– Healthcare

– Many more

� Oversupply - Reconditioned

� SMB Reseller Communities / Varnex

� New Vendors


� Consumer Electronics – NAE

� TSD

– Services

– HP servers & storage

– ICG

– PRINTSolv


Strategic Focus - How We Will Outperform- Consumer Electronics (New Age Electronics)

31313131

– Government

– Healthcare

– Many more



� New Vendors

Strategic Focus - How We Will Outperform- Consumer Electronics (New Age Electronics)

� Integration Successful

� P&L Discipline Drives Results

� System Drove Better Behavior

� Vendor’s – Customers Satisfied

� Adjacent Business Grow is Faster

� Sales & Product Management Changes

Mass

Merchandise

Regional Retail

Photo

OPSS Commercial Clubs

32323232

� Sales & Product Management Changes

� Grow Share

– Existing customers

– New vendors

– New customers

– Cross sell – Legacy distribution

– New markets

� Competition Fragmented

MilitaryBroadcast

ChannelsRental

Food & Drug DRC E-Commerce



� Technology Solutions Division (TSD)

– Services

– PRINTSolv


– ICG


Strategic Focus - How We Will Outperform - Technology Solutions Division Services

� Why?

– Scale, stickiness, defense, offense, annuity-refresh

� Capabilities:

– Assessment

– Print

– Server

– Storage

– Remote monitoring

– Onsite deployment

– Recycle

33333333

– Government

– Healthcare

– Many more



� New Vendors

– Recycle

– Asset management

� Tools

– Remote monitoring

– Asset management

– Assessment writing

� Agnostic Opinion

� Dedicated Team


� Consumer Electronics- NAE


– Services

– PRINTSolv


– ICG


Strategic Focus - How We Will Outperform - TSD PRINTSolv

� The Print Market Is $9 Billion

� Managed Print Is Growing At 25%

� What Is PRINTSolv

� Results:

– 80 million pages and growing

� Field Reps Call On End Users - Behalf Of VARs

34343434

– Government

– Healthcare

– Many more



� New Vendors

� Field Reps Call On End Users - Behalf Of VARs

� ½ Business In Annuity

� Products Sold As A Contract




– Services

– PRINTSolv

– HP Servers & Storage

– ICG


Strategic Focus - How We Will Outperform- TSD HP Servers & Storage

� Huge Target Market Of Other Manufacturers

� Complete Suite Of Authorizations

� HP Is A Winner

� Dedicated Team

– Technically savvy sales team both inside and field

� Strong Growth Potential

Strong Value Proposition

35353535


– Government

– Healthcare

– Many others



� New Vendors

� Strong Value Proposition



� TSD– Services

– PRINTSolv

– H.P. servers & storage

– ICG


Strategic Focus - How We Will Outperform - Vertical Markets - Government

� Grow The Market

� Dedicated Team

� Chantilly Location – TAA Compliant Stock

� GSA Schedule – Example Of Success

36363636

– Government

– Healthcare

– Many more



� New Vendors

Take-Away Thoughts

� We Have Exceptional People

� We Execute

� We Run A Tight Ship

� We Have Significant Upside On The Value Business – We Hit Our TSD Metrics

37

� We Are Excited With Our New Businesses

Jim Estill

SYNNEX Canada

38

Jim EstillChief Executive Officer, SYNNEX Canada, LTD

North America Auto I.D., North America Supplies

81%

19%

Overview

■ SYNNEX Canada Business is $1.4B in 2008

■ Canadian Distribution Market is about $5.5B

■ Canadian and U.S. Markets Align But Have

Several Key Differentiators – Vendors tend to sell to major retail through

Distribution

– National VARs (Corporate VARs) are a

Canada Distribution

– National VARs (Corporate VARs) are a significant segment

■ SYNNEX Canada ranked #2 in Revenues; More Than Doubling Revenues since FY 2003

■ Outside of National VAR, SYNNEX share is disproportionately high

■ We have significant share in both IT and Consumer Electronics

� 19% of the business

� Growing business

� Growing margins

� Growing ROIC

SYNNEX Canada

� Business Model

– Segmented sales force and web based communities creates

value through expertise

– More warehouses increase service and lower freight costs; sales

presence across Canada (Vancouver to Halifax)

� Execution

– Process and systems



40




– In sourcing

– IT – Pricing model, processes


– Broad line card coverage for IT business and consumer

electronics

– #1 in market share with 8 of our top 10 vendors

SYNNEX Canada- Business Model - Segmentation

� Strong Market Share Position In All

Reseller/Retailer Segments Outside

Of National VAR/DMR:

– Major retail (IT, CE) #1

– Smb var #1/#2

– Office product dealers #1

41

– Office product dealers #1

– System builders #1/#2

– Apple authorized resellers #1/#2

– Independent retailers #1/#2

– Point of sales/auto ID market #1

Segmented Sales Divisions and

Web Based Marketing

“Communities” Add Value through

Expertise

SYNNEX Canada– Business Model – Geographic Warehouse and Sales Coverage

� 4 Regional Warehouses

– Guelph, Vancouver, Calgary, Halifax

– Increased redundancy

� Master Warehouse in Guelph

– Low overhead

Decentralized Warehouse Strategy

Means Better Service, Lower Cost

– Low overhead

– Better service

� Value-add Configuration Center

– Guelph

� 8 Sales Locations

� Warehouse Coverage Provides Next-day

Ground Delivery To Over 95% Of The

PopulationGuelph, ON

Toronto, ONVancouver, BC

Montreal, QC

Calgary, AB

Halifax, NS

Master Warehouse

Regional Warehouses

Configuration Centers

Sales Locations

Sales Branches

Winnipeg, MB

Ottawa, ON

SYNNEX Canada

� Business Model





� Execution




43




– In sourcing




electronics


SYNNEX Canada

� Business Model





� Execution




44




– In sourcing




electronics


SYNNEX Canada– Vendor – Customer Relationships

� Business Model





� Execution




IPG

Imaging

45




– In sourcing




electronics

– #1 in market share with 8 of our top 10 vendors Exclusive Distributor in Canada

SYNNEX Canada is the #1 performing Distributor in Canada


– Cash to cash cycle focus

– Continue to reduce costs as a percentage of sales while enhancing

our value proposition

– Farm team

– Guelph

� Enterprise Solutions to SMB VARs

Strategic Focus - How We Will Outperform- Operational Excellence

46


� Fee Based Logistics

� New Vendors

� Increase Sales to Independent Retailers

� Scale our “AVS Model” (RGC)

– We fully represent consumer electronic vendors, high value model

Strategic Focus - How We Will Outperform- Enterprise Solutions to SMB / VARs

� Enterprise Solutions to SMB VARS

– Printsolv – North American initiative

– HP EVA – North American initiative

– VIBE (SMB server virtualization solution) –

local initiative


– Reduce inventory days without compromising high fill rates

– Continue to reduce costs as a percentage of sales while

enhancing our value proposition



� New Vendors

47

� New Vendors



– We fully represent consumer electronic vendors,

high value model


– Reduce inventory days without compromising high fill rates

– Continue to reduce costs as a percentage of sales while

enhancing our value proposition



� New Vendors

Strategic Focus - How We Will Outperform- Fee Based Logistics

� SYNNEX Canada Provides the Logistics

Capabilities to the Vendor Communities,

Establishing Strong Relationships With The

Top IT and CE Canadian Retailers:

– Wal-Mart

– Staples

– Costco

– Future Shop/Best Buy

48

� New Vendors




high value model

– Future Shop/Best Buy


– Reduce inventory days without compromising high

fill rates

– Continue to reduce costs as a percentage of sales

while enhancing our value proposition



Strategic Focus - How We Will Outperform- New Vendors

� Selectively Fill Line Card Gaps

� Strong Focus On Emerging Vendors in

Growth Technologies

49

� New Vendors




high value model



fill rates





Strategic Focus - How We Will Outperform- Increase Sales to Independent Retailers


– Many VARS/System Builders/Apple Resellers also

have “store fronts” and etailing

– XM Exclusive brings SYNNEX 1,000+ new Car Audio

Retailers

50

� New Vendors




high value model



fill rates





Strategic Focus - How We Will Outperform - Scale Our AVS Model (RGC)

� SYNNEX AVS Represents Vendors For All

Sales And Marketing Programs For Major

Retailers

� Current Exclusives Include Sandisk, Cobra,

Sakar, GE Cameras, Case Logic

� Very Narrow Line Card Ensures Deep Focus

51

� New Vendors




high value model

� Allocated Resources To Continue Growing

This Business

Take-Away Thoughts

� SYNNEX Canada continues to grow faster than our competitors

- Growing market share while also growing gross margins

� SYNNEX Canada is second largest but #1 in share with vendor base:

- #1 in market share with 8 of our top 10 vendors

52

- #1 in market share with 8 of our top 10 vendors

� We Are Contributing Solid Profitability For SYNNEX Overall

� Focused Execution

� Growing ROIC with Cash to Cash cycle focus

OPERATIONAL OVERVIEW

Dennis Polk

Chief Operating Officer

53

Operational Overview Agenda

�Operating Model Differentiators

� Low Cost Leader

�Acquisition Strategy

�Asset Management/Financial Operations

54

� Take-Away Thoughts

Operating Model Differentiators

� North American Concentrated

– Reduced complexity/Swift Execution

– Focused product line

� IT System

– Company developed for distribution business

– Operational and financial transparency

– “Scalable” and “Changeable”

� Offshore Support/Onshore Investment

US & CanadaDistribution Network

55555555

� Offshore Support/Onshore Investment

– In-sourced versus outsourced

– Ten year history/stability/execution

– Cost offshore enable onshore investment

� Warehouse Strategy

– Diversified/customer focused

� Manufacturing/Product Value Add

– Synergy with distribution business

Low Cost Distribution Leader

� Management Philosophy

� IT System

� Transaction Visibility

– P&L’s by:� SKU, order, customer, vendor

– All factors of business incorporated� Direct expense, overhead, capital

– Drives P&L responsibility to each department

within the company

SG&A as Percentage of Sales: 2003 - 2008

4.00%

5.00%

6.00%

Q405

Operating Margin

Q408

Operating Margin

2.28%

56565656

within the company� Daily / real-time visibility

� Warehouse Set-up/Investment

� Insourcing

2.00%

3.00%

Q4

05

Q1

06

Q2

06

Q3

06

Q4

06

Q1

07

Q2

07

Q3

07

Q4

07

Q1

08

Q2

08

Q3

08

Q4

08


Operating Margin

1.53%

Overseas Back Offices

� Order Entry

– Less than 15% of orders touched in the U.S.

� Customer Service

– Major customers support – offshore

– 30% of CSR

� Tech Support

– 90%+ of all inbound calls

SYNNEX China

Low Cost Leader - Insourcing

57575757

– 90%+ of all inbound calls

� Financial / Operations

– Accounts payable

– Vendor claims

– Credit

– Purchasing

– Warehouse monitoring

– Content support

SYNNEX Philippines

�More To Be Done

– Margin Improvement

� Freight

– Top Grading

� Compensation ROI

Low Cost Leader- More To Be Done

58

– Cash Conversion Cycle

– Operational Efficiency\Insourcing

Acquisition Strategy

� Organic Growth First

� Needs From Acquisition Perspective:

– Line improvement

– Customer breadth

– New product segments

– Geographic expansion

– Diversify business

� Investment Requirements:

59595959

� Investment Requirements:

– Strict ROIC/EPS accretion goals

– Ease of integration

– Solid leadership/adaptable to SYNNEX culture

– Synergistic

� Current Environment

– Disciplined philosophy on acquisition strategy

Asset Management/Financial Operations

�Cash to Cash Cycle Focus

�Credit Management:– Solid performance in tough environment

– IT system provides high level of visibility

– Portfolio is well diversified

– Reseller’s are primarily long standing/well run companies

– Protect assets through insurance and other means

– Credit availability for growth – Credit availability for growth

� Inventory Management:– Solid performance in tough environment

– IT system provides high level of visibility

– Do business with well capitalized/long-term channel positive vendors

– Limited line card allows for deep understanding of product set/great relationships

60

Take-Away Thoughts

�High Visibility To All Aspects Of Organization

� Low Cost Culture But Willing To Make Investment “Bets”

�Culture of “Can Do” And Rapid Response

�ROIC Focused�ROIC Focused

– Cash to Cash Cycle

�Company is Built To Execute In Up And Down Economic Environments

– Zero based budget philosophy

� The Machine is Running Well

61

SYNNEX GLOBAL BUSINESS

Chris Caldwell

Senior Vice President, Global Business Solutions

62

� Business Process Outsourcing services specializing in:

– Customer Care

– BPO/KPO

– IT/Internet services

� 4,500+ employees around the world

� “Best-shore” delivery model

� Value Proposition:

Overview

63

� Value Proposition:

– Allow businesses to focus on core capabilities

– More efficient on customers non-core processes

– Scalable cost efficient labor pool

– Knowledge management transfer expertise

We target companies that require multiple high value interactions with their customers.

In 2008, we were trusted by our clients to represent them in over 14 million interactions.

SGB Org Chart

64

BPO Investments

� Customer Care� BPO/KPO� IT Services

� SAAS� IT/Internet Services

� Customer Care� BPO/KPO� Internet Services

Customer Care BPO/KPO IT Services

Core Capabilities

Technical Support / Customer Service

End to End Transaction ProcessingEnd to End Transaction Processing

65

Web Design / Hosting / SAASWeb Design / Hosting / SAAS

Process AutomationProcess Automation

Application DevelopmentApplication Development

Data Analytics / Marketing Services / Lead Generation / Sales Data Analytics / Marketing Services / Lead Generation / Sales

SGB Supply Circle

SGB Major Offices

SGB Major Offices

67

� Over 25 offices worldwide

� Over 12 languages supported

� Our staff in our facilities

OUTSOURCE HC = 100 ONSHORE HC = 20

ONSHORE

$1.00 = $1.00 0%

Cost Neutral

$1.00 = $0.7525%

Cost Model Sample

68

CUSTOMER

OUTSOURCE HC = 100 ONSHORE HC = 20NEARSHORE HC = 80

NEARSHORE

25% Decrease

OFFSHORE

$1.00 = $0.6040%

Decrease

SGB Segment Financials

SGB

Fiscal Year ended November 30, 2008:

Revenue 113,998

Income from operations 13,022

Total assets 165,648


Revenue 82,722

2 YEAR CAGR 2 YEAR CAGR

Sales 69%Sales 69%

69

Revenue 82,722


Total assets 117,818


Revenue 39,639


Total assets 35,681

Sales 69%Sales 69%

Income fromIncome fromOperationsOperations 86%86%

� Increase share of spend from existing customers

– Customers utilizing us for multiple services

� Create incremental value in existing client services

– Increased ROI on their spend

� Offer branded services

– Brand affinity – unique differentiator

Focus

� Focus services around the customer lifecycle

– Lower costs / higher value for our clients customers

� On boarding new client relationships

Acquire – Support – Retain – Renew

70

PCI CertificationClient Award 2007 and 2008: Star Award in Technical Support & Customer Care

“Site of the Year” 2007 and 2008

Client Award

Recognitions

71

Level III

“Best in Class B2B Teleservices 2008

Top Employer for Northern Mindanao 2008

2009 World’s Best Service Advisor

Rankings

“Best 10 Companies by Services Offered

2008

�Services we offer create value for SYNNEX vendors and customers

�Growing profitably both organically and through new customers

�Good, diversified income base: top 10 customers represent less

than 50% of business

Take-Away Thoughts

72

than 50% of business

�Trusted advisor and thought leader to our clients

�We deliver high value, cohesive global services

FINANCIAL OVERVIEW

Thomas Alsborg

Chief Financial Officer

73

Financial Overview Agenda

� Overview Financial Model / Financial Position

� Overview Financial Performance Results

- Segment Reporting

� Balance Sheet Specifics

- Corporate working capital lines refinancing

74

� Financial Misnomers / Questions

� Valuation Considerations

� Take-Away Thoughts

Overview Financial Model / Financial Position - Flexible Financial Model and Healthy Financial Position

� Over 20 years of consecutive quarterly profitability

– Consistent performer in all economic environments

� SYNNEX utilizes a well-run, low-cost, flexible financial model

– With a substantial portion of our industry SG&A being variable costs; we can flex in a soft

economy

� Strong, healthy balance sheet and liquidity

– Quality of working capital assets is very good

– Cash conversion cycle has gotten shorter

– Good continuous growth in equity

� Strong established banking relationships afford continuous access to capital

75

DRAFT

2.00%

3.00%

4.00%

5.00%

6.00%

Q40

5

Q10

6

Q20

6

Q30

6

Q40

6

Q10

7

Q20

7

Q30

7

Q40

7

Q10

8

Q20

8

Q30

8

Q40

8


Q405

Operating Margin

1.53%

Q408

Operating Margin

2.28%

SYNNEX Margin Trends Over Time

5,641

6,344

7,004

7,768

-

1,000

2,000

3,000

4,000

5,000

6,000

7,000

8,000

9,000

2005 2006 2007 2008

Revenue Growth Billions

Overview Financial Performance Results– Differentiating Results

7.5% 7.4%7.9%

8.1%

6.9%7.3% 7.3%

8.9%

6.9%7.3%

6.6%

8.9%

7.8%7.2%

8.3%

10.6%

0.0%

2.0%

4.0%

6.0%

8.0%

10.0%

12.0%

Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4

Prior Year Current Year

76767676

SYNNEX ROIC Trends

1.38

1.69

2.04

2.63

-

0.50

1.00

1.50

2.00

2.50

3.00

2005 2006 2007 2008

EPS Growth in Dollars

2007 2008

Overview Financial Performance Results- Able to Consistently Generate Positive Operating Cash Flows

2008 2007 2006

Cash flows from operating activities ($K): $ 52,593 $ (152,453) $ (18,939)

149,268

2007 adjustments for reclassification of off balance sheet AR 280,730

Proforma adjusted cash flow from operating activities $ 52,593 $ 128,277 $ 130,329

77

Proforma adjusted cash flow from operating activities $ 52,593 $ 128,277 $ 130,329

Less Capital Expenditures(1) (33,521) (22,781) (7,916)

Proforma Free Cash Flow $ 19,072 $ 105,496 $ 122,413

(1) Maintenance capital expenditure is approx $10M.

Overview Financial Performance Results - Segment Reporting ($K)

Distribution GBSInter-Segment

Elimination ConsolidatedFiscal Year ended November 30, 2006:

Revenue………………………………………………………………………….6,316,332$ 39,639$ (12,457)$ 6,343,514$ Income from operations before non-operating items,

income taxes and minority interest……………………………………………92,482 3,760 - 96,242 Depreciation and amortization expense………………….………………………..8,911 870 - 9,781 Total assets………………………………………………………………………1,356,999 35,681 (9,946) 1,382,734

Fiscal Year ended November 30, 2007:Revenue………………………………………………………………………….6,938,926$ 82,722$ (17,528)$ 7,004,120$ Income from operations before non-operating items,

income taxes and minority interest……………………………………………103,088 9,059 - 112,147

78

Financial Synergies: Revenue Generation, Margin Enh ancing, Reduced Costs,Income Diversification, Cash Flow Complementary

income taxes and minority interest……………………………………………103,088 9,059 - 112,147 Total assets………………………………………………………………………1,841,369 117,818 (72,084) 1,887,103

Fiscal Year ended November 30, 2008:Revenue………………………………………………………………………….7,674,048$ 113,998$ (19,816)$ 7,768,230$ Income from operations before non-operating items,

income taxes and minority interest……………………………………………138,826 13,022 - 151,848 Total assets………………………………………………………………………1,951,024 165,648 (83,792) 2,032,880

Balance Sheet Specifics

� Maintaining Good Liquidity

� Good Access to Capital

� Ample Cash Availability

� Excellent Banking Relationships

79

Balance Sheet Specifics- Maintaining Good Liquidity

Net Current Assets Ratio Remains Healthy� Maintaining Good Liquidity

– Liquid assets trends consistently in range of 1.5

times current liabilities

– We expect liquidity to increase in soft economic

environment, thereby further improving the ratio

– No deterioration in Cash Conversion Cycle


80808080




– Available corporate credit up to $430M

– “Accordion” feature can increase facilities by

$120M additional credit when desired

– $390M in eligible assets today


– $150M in available borrowing today

Balance Sheet Specifics- Good Access to Capital, Ample Cash Availability





81818181

Balance Sheet Specifics- Excellent Banking Relationships






– Recently refinanced working capital lines

– Increased flexibility of terms for business growth

– Non constraining covenants

– Comparable effective interest rates

82828282

� AR Securitization

– 364 day facility

– $350M credit

– CP + 150 bps

� 2 Financial Covenants

– Fixed Charge Coverage Ratio – same covenant

as revolver

Excellent Banking Relationships- Corporate Working Capital Line Refinancing, January 2009

� Revolving ABL Credit Facility

– Line matures in February 2011

– $80M credit

– Can increase to $150M

– LIBOR +250 bps or Prime

� 2 Financial Covenants

– Fixed Charge Coverage Ratio of 1.25 : 1.00

83838383

as revolver

– Net Worth – same covenant as revolver

� Increased Flexibility

– More room for M&A – same terms as revolver

– Others

– Fixed Charge Coverage Ratio of 1.25 : 1.00

– Minimum Net Worth of $429.3M

� Increased Flexibility

– More room for M&A

– Others

Financial Misnomers / Questions

� “Over leveraged: Debt to capitalization ratio too hard to manage in weak

economy?”

� “Weak economy could cause goodwill charges. Could this cause a covenant

default?”

� “How can SYNNEX continue to perform in headwinds of weak economy?”

84

11/30/2008

Securitization (1) $266.4

Revolver $110.0

Converts (4% due 2013) $143.8

Other (2) $31.8

Total Debt $551.9

Total Equity $679.8

Financial Misnomers / Questions - Capital Structure

SYNNEX Capitalization� Total Debt to Cap Ratio is 44.8%

– Low 40’s range selected intentionally

– Use of debt lowers cost of capital, allows SYNNEX

to optimize WACC

� Fixed-term debt to cap ratio is 14.0%

– Fixed debt has static service requirements

Total Equity $679.8

Total Capitalization $1,231.7

Fixed Debt to Capitalization (3) 14.0%

Working Capital Lines to Capitalization 30.8%

(1) Includes $59M in Canadian off balance sheet AR line.

(2) Primarily term debt of subsidiaries.

(3) Includes converts and Other.

85858585

Core ITdistribution

services


� Remaining debt from working capital

lines

– Lines flex with working capital requirements

– Don’t have static service requirements

– At yearend lines were 30.8% of total

capitalization

Financial Misnomers / Questions – Debt Management Shown to be Consistently Managed

� Debt to cap ratio consistently managed

over the years

– Managed in 40 to 45 range since IPO

� Working capital lines flex with

economic environment

– Provide ultimate flexibility for seasonal business

SYNNEX’ Debt to Cap Ratio

86868686

Core ITdistribution

services


– Provide ultimate flexibility for seasonal business

– Natural debt “right sizing” as cash to cash cycle

is managed

– Slow growth uses less cash, thus less debt to

service

� Increased flexibility

– More room for M&A

Financial Misnomers / Questions - 2008 Working Capital Management Shown to Improve

34

36

38

40

42

44

46

48

87

SYNNEX’ working capital lines flex with working capital requirements

-Naturally “right size” debt with proper working capital management

30

32

34

Q108 Q208 Q308 Q408

DSO DIO

Financial Misnomers / Questions

� “Over leveraged: Debt to cap ratio too hard to manage in weak economy?”


default?”


88

Financial Misnomers / Questions- Debt Covenants

Actual Pro Forma11/30/2008 11/30/2008

Fixed Charge Coverage Ratio

No Write-offs 1.63 1.63

With Goodwill Charge No Effect

With Goodwill and Intangible Charge No Effect

Required 1.25 1.25


89

Required 1.25 1.25

Net Worth 679,935

With Goodwill Charge 605,973 (a)

With Goodwill and Intangible Charge 588,724 (b)

Required 429,287 429,287

(a) Goodwill was $113,438 as of November 30, 2008.

(b) Goodwill and intangibles were $139,894 as of November 30, 2008

Financial Misnomers / Questions - Debt Covenants: “What If Scenarios” Intangible Impairment

Actual Pro Forma11/30/2008 11/30/2008


No Write-offs 1.63 1.63

With Goodwill Charge No Effect

With Goodwill and Intangible Charge No Effect

Required 1.25 1.25

90

Required 1.25 1.25

Net Worth 679,935

With Goodwill Charge 605,973 (a)

With Goodwill and Intangible Charge 588,724 (b)

Required 429,287 429,287

(a) Goodwill was $113,438 as of November 30, 2008.

(b) Goodwill and intangibles were $139,894 as of November 30, 2008

Key take-away: SYNNEX has no liquidity impact in any impairment scenario.

SYNNEX Financial Position - Misnomers

� “Over leveraged: Debt to cap ratio too hard to manage in weak economy?”


default?”


91

Financial Misnomers / Questions- SYNNEX Earnings Model Proves to be Flexible, Sustainable

� SYNNEX called a weak economy heading into 2008 and still delivered substantial

EPS and ROIC growth

� Flexible cost structure – substantial part of our industry leading SG&A margin

made up of variable costs

� Minimal risks

- Income diversification comes through our business model and adjacent market segment penetration, not

geography where risk is greater

92

- North America is relatively more stable and expected to lead world out of recession

� Of course no guarantees, but consider SYNNEX’ past and recent performance

- 86 quarters of consecutive profitability; record performances in 2008

Valuation Considerations

� Solving for the misnomers and questions

� Considering the embedded value of Business Process Outsourcing with SYNNEX

Global Business

� Back to basics valuation techniques

FWD P/E

TTM

Op Margin (1)

Annual

ROIC (1)

EPS

Growth (1)

Revenue

Growth (1)

93

FWD P/E Op Margin (1) ROIC (1) Growth (1) Growth (1)

8.5%

8.2%

5.8%

10.9%

-0.9%

4.8%

28.9%

-17.5%

-18.2%

2.0%

1.1%

0.9%

5.3

9.6

8.6

IM

TECD

Note:(1) Annualized numbers for IM and TECD are based on the prior three quarters of actual results for each companies respective fiscal year plus analyst estimates for the final quarter for each companies respective fiscal year.

Valuation Considerations

� Solving for the misnomers and questions

� Considering the embedded value of Business Process Outsourcing with SYNNEX

Global Business

– BPO has an historical P/E ratio that is as much as 2 to 3 times traditional distribution multiples

– BPO has experienced industry growth rates of 18 to 20%

– SYNNEX GSB has grown revenue at a 2-year CAGR of 69% with an operating income CAGR of 86%

– SYNNEX GSB contributing in range of 10% of SYNNEX earnings, and growing

� Back to basics valuation techniques

– With balance sheet concerns minimized, valuation ought to be based on growth in income and

returns

– SYNNEX has established a more profitable business model than traditional distribution which has

traditional P/Es of 10 to 14 times earnings

– SYNNEX distribution segment margins well surpass those of the traditional broadline space

– SYNNEX has clearly differentiated its model as more profitable and sustainable

94

Key Take-Away Thoughts

� Our business is differentiated and as a result, our financial results also stand out

� We have a flexible, sustainable earnings model and a strong, healthy balance sheet

� Our debt and capital structure is strategic and readily manageable; we have no

concerns about covenants, liquidity, or cash availability

� We have performed well in prior weak economies and are we are succeeding

95

� We have performed well in prior weak economies and are we are succeeding

during the current weak economy as well

� We believe current and even traditional distribution valuations overlook the

embedded value of the BPO business of SYNNEX’ SGB segment

� Given our low risk profile and our superior financial track record, at a fwd P/E of 5

times earnings, SYNNEX represents a significant value to investors

Thank you for your attention today. We would like

to open the discussion up for your questions.to open the discussion up for your questions.

Thank You

Economy & Finance

SNX 7AE88A38-45E7-4B82-BFFB-3404FD8027A5_SNX012709