PR Newswire | Sep 28, 2021 08:03AM EDT

09/28 07:00 CDT

TD SYNNEX Reports Third Quarter Fiscal 2021 Results FREMONT, Calif. and CLEARWATER, Fla., Sept. 28, 2021

FREMONT, Calif. and CLEARWATER, Fla., Sept. 28, 2021 /PRNewswire/ -- TD SYNNEX (NYSE: SNX) today announced financial results for legacy SYNNEX for the fiscal third quarter ended August 31, 2021.

Q3 FY21 Q3 FY20 Net change

Revenue ($M) $ 5,207 $ 5,306 -1.9%

Operating income ($M) $ 148.2 $ 132.4 12.0%

Non-GAAP operating income ($M)^(1) $ 168.2 $ 148.6 13.2%

Operating margin 2.85 % 2.49 % 36 bps

Non-GAAP operating margin^(1) 3.23 % 2.80 % 43 bps

Income from continuing operations $ 94.7 $ 85.7 10.5%

Non-GAAP income from continuing operations^ $ 111.9 $ 97.2 15.1%(1)

Diluted earnings per common share ("EPS") $ 1.81 $ 1.65 9.7%from continuing operations

Non-GAAP Diluted EPS from continuing $ 2.14 $ 1.88 13.8%operations^(1)

"Results were consistent with expectations as ongoing industry-wide supply chain shortages led to a slight year-over-year revenue decline for legacy SYNNEX in the fiscal third quarter," said Marshall Witt, CFO of TD SYNNEX. "Despite these challenges, our team once again executed flawlessly, focusing on optimizing our core business and increasing our value-added services and products leading to improved margin performance."

Fiscal 2021 Third Quarter Highlights

* Revenue was $5.2 billion, down 1.9% from the prior fiscal third quarter. Operating income was $148 million, compared to $132 million, in the prior fiscal third quarter. Non-GAAP operating income was $168 million, in fiscal year third quarter 2021, compared to $149 million, in the prior fiscal third quarter. * The trailing fiscal third quarter Return on Invested Capital ("ROIC") was 17.5% compared to 12.5% in the prior fiscal year third quarter. The adjusted trailing fiscal third quarter ROIC was 18.4%. * Cash used in operations was $56 million for the quarter. * Prior period financial results of Concentrix (earlier "customer experience services" business of SYNNEX) are excluded from income from continuing operations and presented as discontinued operations.

"Since our merger closed, the team has been hard at work, focused on a robust, consistent and superior experience for our customers and vendors," said Rich Hume, CEO of TD SYNNEX. "Our role in the IT industry continues to increase in importance, and we are well positioned to raise the bar on the value we provide all our partners. We are energized by the opportunities ahead of us as we integrate our companies, combine our line card and expand our geographic presence."

Fourth Quarter Fiscal 2021 Outlook

The following statements are based on TD SYNNEX' current expectations for the fiscal 2021 fourth quarter for the combined company. Non-GAAP financial measures exclude the impact of the transaction-related and integration expenses, amortization of intangible assets, share-based compensation, purchase accounting adjustments, and the related tax effects thereon. These statements are forward-looking and actual results may differ materially.

* Revenue is expected to be in the range of $15 billion to $16 billion. * Net income is expected to be in the range of $38 million to $106 million and on a non-GAAP basis, net income is expected to be in the range of $242 million to $272 million. * Diluted earnings per share is expected to be in the range of $0.39 to $1.09 and on a non-GAAP basis, diluted earnings per share is expected to be in the range of $2.50 to $2.80, based on estimated outstanding diluted weighted average shares of 96.2 million.

DividendTD SYNNEX announced today that its Board of Directors declared a quarterly cash dividend of $0.20 per common share. The dividend is payable on October 29, 2021 to stockholders of record as of the close of business on October 15, 2021.

Conference Call and WebcastTD SYNNEX will host a conference call today to discuss the fiscal 2021 third quarter results at 6:00 AM (PT)/9:00 AM (ET).

A live audio webcast of the earnings call will be accessible at ir.synnex.com and a replay of the webcast will be available following the call.

About SYNNEXTD SYNNEX (NYSE: SNX) is a leading global distributor and solutions aggregator for the IT ecosystem. We're an innovative partner helping more than 150,000 customers in 100+ countries to maximize the value of technology investments, demonstrate business outcomes and unlock growth opportunities. Headquartered in Clearwater, Florida, and Fremont, California, TD SYNNEX' 22,000 co-workers are dedicated to uniting compelling IT products, services and solutions from 1,500+ best-in-class technology vendors. Our edge-to-cloud portfolio is anchored in some of the highest-growth technology segments including cloud, cybersecurity, big data/analytics, IoT, mobility and everything as a service. TD SYNNEX is committed to serving customers and communities, and we believe we can have a positive impact on our people and our planet, intentionally acting as a respected corporate citizen. We aspire to be a diverse and inclusive employer of choice for talent across the IT ecosystem. For more information, visit TDSYNNEX.com.

(1)Use of Non-GAAP Financial InformationIn addition to the financial results presented in accordance with GAAP, TD SYNNEX also uses adjusted selling, general and administrative expenses, non-GAAP operating income, non-GAAP operating margin, non-GAAP income from continuing operations, non-GAAP net income, and non-GAAP diluted earnings per share, which are non-GAAP financial measures that exclude transaction-related and integration expenses, the amortization of intangible assets, share-based compensation expense and the related tax effects thereon. The Company also uses adjusted earnings before interest, taxes, depreciation and amortization ("Adjusted EBITDA") which excludes other income (expense), net, transaction-related and integration expenses and income from discontinued operations. In prior periods, SYNNEX has excluded other items relevant to those periods for purposes of its non-GAAP financial measures.

Transaction-related expenses typically consist of acquisition, integration, and divestiture related costs and are expensed as incurred. These expenses primarily represent costs for legal, banking, consulting and advisory services, and debt extinguishment fees. From time to time, this category may also include transaction-related gains/losses on divestitures/spin-off of businesses.

TD SYNNEX' acquisition activities have resulted in the recognition of intangible assets which consist primarily of customer relationships and vendor lists. Definite-lived intangible assets are amortized over their estimated useful lives and are tested for impairment when events indicate that the carrying value may not be recoverable. The amortization of intangible assets is reflected in the Company's statements of operations. Although intangible assets contribute to the Company's revenue generation, the amortization of intangible assets does not directly relate to the sale of the Company's products and the services performed for the Company's clients. Additionally, intangible asset amortization expense typically fluctuates based on the size and timing of the Company's acquisition activity. Accordingly, the Company believes excluding the amortization of intangible assets, along with the other non-GAAP adjustments which neither relate to the ordinary course of the Company's business nor reflect the Company's underlying business performance, enhances the Company's and investors' ability to compare the Company's past financial performance with its current performance and to analyze underlying business performance and trends. Intangible asset amortization excluded from the related non-GAAP financial measure represents the entire amount recorded within the Company's GAAP financial statements, and the revenue generated by the associated intangible assets has not been excluded from the related non-GAAP financial measure. Intangible asset amortization is excluded from the related non-GAAP financial measure because the amortization, unlike the related revenue, is not affected by operations of any particular period unless an intangible asset becomes impaired or the estimated useful life of an intangible asset is revised.

Share-based compensation expense is a non-cash expense arising from the grant of equity awards to employees based on the estimated fair value of those awards. Although share-based compensation is an important aspect of the compensation of our employees, the fair value of the share-based awards may bear little resemblance to the actual value realized upon the vesting or future exercise of the related share-based awards and the expense can vary significantly between periods as a result of the timing of grants of new stock-based awards, including grants in connection with acquisitions. Given the variety and timing of awards and the subjective assumptions that are necessary when calculating share-based compensation expense, TD SYNNEX believes this additional information allows investors to make additional comparisons between our operating results from period to period.

Additionally, TD SYNNEX refers to revenue at constant currency or adjusting for the translation effect of foreign currencies so that certain financial results can be viewed without the impact of fluctuations in foreign currency exchange rates, thereby facilitating period-to-period comparisons of TD SYNNEX' business performance. Financial results adjusted for currency are calculated by translating current period activity in the transaction currency using the comparable prior year periods' currency conversion rate. Generally, when the dollar either strengthens or weakens against other currencies, revenue at constant currency rates or adjusting for currency will be higher or lower than revenue reported at actual exchange rates.

Trailing fiscal four quarters ROIC is defined as the last four quarters' tax effected operating income divided by the average of the last five quarterly balances of borrowings (excluding book overdraft) and equity, net of surplus cash. Adjusted ROIC is calculated by excluding the tax effected impact of non-GAAP adjustments from operating income and by excluding the cumulative tax effected impact of current and prior period non-GAAP adjustments on equity.

TD SYNNEX also uses free cash flow, which is cash flow from operating activities, reduced by purchases of property and equipment. TD SYNNEX uses free cash flow to conduct and evaluate its business because, although it is similar to cash flow from operations, TD SYNNEX believes it is an additional useful measure of cash flows since purchases of fixed assets are a necessary component of ongoing operations. Free cash flow reflects an additional way of viewing TD SYNNEX' liquidity that, when viewed with its GAAP results, provides a more complete understanding of factors and trends affecting its cash flows. Free cash flow has limitations due to the fact that it does not represent the residual cash flow available for discretionary expenditures. For example, free cash flow does not incorporate payments for business acquisitions. Therefore, TD SYNNEX believes it is important to view free cash flow as a complement to its entire consolidated statements of cash flows.

TD SYNNEX management uses non-GAAP financial measures internally to understand, manage and evaluate the business, to establish operational goals, and in some cases for measuring performance for compensation purposes. These non-GAAP measures are intended to provide investors with an understanding of TD SYNNEX' operational results and trends that more readily enable investors to analyze TD SYNNEX' base financial and operating performance and to facilitate period-to-period comparisons and analysis of operational trends, as well as for planning and forecasting in future periods. Management believes these non-GAAP financial measures are useful to investors in allowing for greater transparency with respect to supplemental information used by management in its financial and operational decision-making. As these non-GAAP financial measures are not calculated in accordance with GAAP, they may not necessarily be comparable to similarly titled measures employed by other companies. These non-GAAP financial measures should not be considered in isolation or as a substitute for the comparable GAAP measures, and should be read only in conjunction with TD SYNNEX' consolidated financial statements prepared in accordance with GAAP. A reconciliation of TD SYNNEX' GAAP to non-GAAP financial information is set forth in the supplemental tables at the end of this press release.

Safe Harbor StatementStatements in this news release 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. These forward-looking statements may be identified by terms such as believe, foresee, expect, may, will, provide, could and should and the negative of these terms or other similar expressions. These forward-looking statements include, but are not limited to, statements regarding strategies and objectives of TD SYNNEX for future operations; our expectations and outlook for the fiscal 2021 fourth quarter as to revenue, net income, non-GAAP net income, diluted earnings per share, non-GAAP diluted earnings per share, outstanding diluted weighted average shares, and the anticipated benefits of the non-GAAP financial measures.

The forward-looking statements are subject to risks and uncertainties that could cause actual results to differ materially from those discussed in the forward-looking statements. These risks and uncertainties include, but are not limited to: the unfavorable outcome of any legal proceedings that have been or may be instituted against us; the ability to retain key personnel; general economic conditions and any weakness in information technology and consumer electronics spending; the loss or consolidation of one or more of our significant original equipment manufacturer, or OEM, suppliers or customers; market acceptance and product life of the products we assemble and distribute; competitive conditions in our industry and their impact on our margins; pricing, margin and other terms with our OEM suppliers; our ability to gain market share; variations in supplier-sponsored programs; changes in our costs and operating expenses; changes in foreign currency exchange rates; changes in tax laws; risks associated with our international operations; uncertainties and variability in demand by our reseller and integration customers; supply shortages or delays; any termination or reduction in our floor plan financing arrangements; credit exposure to our reseller customers and negative trends in their businesses; any future incidents of theft; the declaration, timing and payment of dividends, and the Board's reassessment thereof; and other risks and uncertainties detailed in our Form 10-K for the fiscal year ended November 30, 2020 and subsequent SEC filings. Statements included in this press release are based upon information known to TD SYNNEX as of the date of this release, and TD SYNNEX assumes no obligation to update information contained in this press release.

Copyright 2021 SYNNEX CORPORATION. All rights reserved. TD SYNNEX, the TD SYNNEX Logo, and all other TD SYNNEX company, product and services names and slogans are trademarks or registered trademarks of SYNNEX Corporation. Other names and marks are the property of their respective owners.

ContactsLiz MoraliInvestor Relations510-668-8436ir@synnex.com

Bobby EagleGlobal Corporate Communications 727-538-5864bobby.eagle@techdata.com

SYNNEX CorporationConsolidated Balance Sheets(currency and share amounts in thousands, except par value)(Amounts may not add due to rounding)(unaudited)

August 31, November 30, 2020 2021

ASSETS

Current assets:

Cash and cash equivalents $ 4,050,364 $ 1,412,016

Accounts receivable, net 2,229,640 2,791,703

Receivables from vendors, net 262,147 286,327

Inventories 2,866,212 2,684,076

Other current assets 195,058 173,940

Current assets of discontinued operations - 1,421,065

Total current assets 9,603,421 8,769,127

Property and equipment, net 152,293 157,645

Goodwill 425,100 423,885

Intangible assets, net 158,397 186,047

Deferred tax assets 40,134 39,636

Other assets, net 127,636 138,070

Noncurrent assets of discontinued operations - 3,754,180

Total assets $ 10,506,980 $ 13,468,590

LIABILITIES AND EQUITY

Current liabilities:

Borrowings, current $ 8,737 $ 124,958

Accounts payable 3,222,284 3,751,240

Accrued compensation and benefits 104,387 103,075

Other accrued liabilities 647,855 618,616

Income taxes payable 24,131 46,363

Current liabilities of discontinued - 985,840operations

Total current liabilities 4,007,393 5,630,092

Long-term borrowings 4,016,449 1,496,700

Other long-term liabilities 130,917 130,296

Deferred tax liabilities 13,931 5,836

Noncurrent liabilities of discontinued - 1,866,807operations

Total liabilities 8,168,690 9,129,730

Stockholders' equity:

Preferred stock, $0.001 par value, 5,000shares authorized, no shares issued or - -outstanding

Common stock, $0.001 par value, 200,000shares authorized, 53,855 and 53,671 shares 54 54issued as of August 31, 2021 and November30, 2020, respectively

Additional paid-in capital 1,615,688 1,591,536

Treasury stock, 2,550 and 2,538 shares as ofAugust 31, 2021 and November 30, 2020, (192,316) (191,216)respectively

Accumulated other comprehensive income (156,778) (194,571)(loss)

Retained earnings 1,071,642 3,133,058

Total stockholders' equity 2,338,290 4,338,860

Total liabilities and equity $ 10,506,980 $ 13,468,590

SYNNEX CorporationConsolidated Statements of Operations(currency and share amounts in thousands, except per share amounts)(Amounts may not add due to rounding)(unaudited)

Three Months Ended Nine Months Ended

August 31, 2021 August 31, 2020 August 31, 2021 August 31, 2020

Revenue $ 5,207,064 $ 5,306,361 $ 16,002,904 $ 13,858,313

Cost of revenue (4,894,442) (5,008,881) (15,056,539) (13,031,113)

Gross profit 312,622 297,480 946,365 827,201

Selling, generaland (164,418) (165,107) (508,511) (506,239)administrativeexpenses

Operating income 148,204 132,373 437,853 320,962

Interest expenseand finance (26,365) (19,747) (71,766) (59,531)charges, net

Other income 4,796 25 2,707 (1,004)(expense), net

Income fromcontinuingoperations 126,635 112,650 368,794 260,426before incometaxes

Provision for (31,931) (26,953) (93,165) (56,023)income taxes

Income fromcontinuing 94,705 85,697 275,628 204,403operations

Income fromdiscontinued - 48,767 - 109,605operations, netof taxes

Net income $ 94,705 $ 134,464 $ 275,628 $ 314,008

Earnings percommon share:

Basic

Continuing $ 1.82 $ 1.67 $ 5.32 $ 3.97operations

Discontinued - 0.95 - 2.13operations

Net income $ 1.82 $ 2.61 $ 5.32 $ 6.10

Diluted

Continuing $ 1.81 $ 1.65 $ 5.27 $ 3.95operations

Discontinued - 0.94 - 2.12operations

Net income $ 1.81 $ 2.60 $ 5.27 $ 6.07

Weighted-averagecommon sharesoutstanding:

Basic 51,275 50,890 51,204 50,851

Diluted 51,766 51,241 51,679 51,172

SYNNEX CorporationReconciliation of GAAP to Non-GAAP financial measures(currency in thousands)(Amounts may not add due to rounding)

Three Months Ended Nine Months Ended

August 31, 2021 August 31, 2020 August 31, 2021 August 31, 2020

Revenue in constantcurrency

Revenue $ 5,207,064 $ 5,306,361 $ 16,002,904 $ 13,858,313

Foreign currency (36,698) (113,467)translation

Revenue in constant $ 5,170,366 $ 5,306,361 $ 15,889,437 $ 13,858,313currency

Three Months Ended Nine Months Ended

August 31, 2021 August 31, 2020 August 31, 2021 August 31, 2020

Selling, generaland administrativeexpenses

GAAP selling,general and $ 164,418 $ 165,107 $ 508,511 $ 506,239administrativeexpenses

Transaction-relatedand integration 4,133 1,278 10,068 1,632expenses

Amortization of 9,386 9,995 28,128 30,130intangibles

Share-based 6,509 4,996 18,146 13,221compensation

Adjusted selling,general and $ 144,390 $ 148,838 $ 452,169 $ 461,256administrativeexpenses

Three Months Ended Nine Months Ended

August 31, 2021 August 31, 2020 August 31, 2021 August 31, 2020

Operating incomeand operatingmargin

Revenue $ 5,207,064 $ 5,306,361 $ 16,002,904 $ 13,858,313

GAAP operating $ 148,204 $ 132,373 $ 437,853 $ 320,962income

Transaction-relatedand integration 4,133 1,278 10,068 1,632expenses

Amortization of 9,386 9,995 28,128 30,130intangibles

Share-based 6,509 4,996 18,146 13,221compensation

Non-GAAP operating $ 168,232 $ 148,642 $ 494,195 $ 365,945income

GAAP operating 2.85 % 2.49 % 2.74 % 2.32 %margin

Non-GAAP operating 3.23 % 2.80 % 3.09 % 2.64 %margin

Three Months Ended Nine Months Ended

August 31, 2021 August 31, 2020 August 31, 2021 August 31, 2020

Adjusted EBITDA

Net income $ 94,705 $ 134,464 $ 275,628 $ 314,008

Interest expenseand finance 26,365 19,747 71,766 59,531charges, net

Provision for 31,931 26,953 93,165 56,023income taxes

Depreciation 5,633 5,937 16,800 17,650

Amortization of 9,386 9,995 28,128 30,130intangibles

EBITDA $ 168,020 $ 197,096 $ 485,487 $ 477,342

Other (income) (4,796) (25) (2,707) 1,004expense, net

Transaction-relatedand integration 7,258 1,278 13,193 1,632expenses

Share-based 6,509 4,996 18,146 13,221compensation

Income fromdiscontinued - (48,767) - (109,605)operations

Adjusted EBITDA $ 176,991 $ 154,578 $ 514,119 $ 383,594

SYNNEX CorporationReconciliation of GAAP to Non-GAAP financial measures(currency and share amounts in thousands, except per share amounts)(Amounts may not add due to rounding)(continued)

Three Months Ended Nine Months Ended

August 31, 2021 August 31, 2020 August 31, 2021 August 31, 2020

Income fromcontinuingoperations

Income fromcontinuing $ 94,705 $ 85,697 $ 275,628 $ 204,403operations

Transaction-relatedand integration 7,258 1,278 13,193 1,632expenses

Amortization of 9,386 9,995 28,128 30,130intangibles

Share-based 6,509 4,996 18,146 13,221compensation

Income taxesrelated to the (5,933) (4,741) (15,191) (13,501)above^(1)

Non-GAAP incomefrom continuing $ 111,925 $ 97,225 $ 319,904 $ 235,885operations

Diluted earningsper common share("EPS")^(2)

Income fromcontinuing $ 94,705 $ 85,697 $ 275,628 $ 204,403operations

Less: income fromcontinuingoperations (1,182) (944) (3,280) (2,380)allocated toparticipatingsecurities

Income fromcontinuingoperations 93,523 84,753 272,348 202,023attributable tocommon stockholders

Transaction-relatedand integrationexpenses 7,168 1,264 13,038 1,614attributable tocommon stockholders

Amortization ofintangibles 9,269 9,885 27,796 29,794attributable tocommon stockholders

Share-basedcompensation 6,428 4,941 17,932 13,074attributable tocommon stockholders

Income taxesrelated to theabove attributable (5,859) (4,689) (15,012) (13,350)to commonstockholders^(1)

Non-GAAP incomefrom continuingoperations $ 110,528 $ 96,154 $ 316,102 $ 233,154attributable tocommon stockholders

Weighted-averagenumber of common 51,766 51,241 51,679 51,172shares - diluted:

Diluted EPS fromcontinuing $ 1.81 $ 1.65 $ 5.27 $ 3.95operations^(2)

Transaction-relatedand integration 0.14 0.02 0.25 0.03expenses

Amortization of 0.18 0.19 0.54 0.58intangibles

Share-based 0.12 0.10 0.35 0.26compensation

Income taxesrelated to the (0.11) (0.09) (0.29) (0.26)above^(1)

Non-GAAP dilutedEPS from continuing $ 2.14 $ 1.88 $ 6.12 $ 4.56operations^(2)

SYNNEX CorporationReconciliation of GAAP to Non-GAAP financial measures(Amounts may not add due to rounding)(continued)

Three Months Ended Nine Months Ended

(Currencyin August 31, 2021 August 31, 2020 August 31, 2021 August 31, 2020thousands)

Free cashflow

Net cashprovided by(used in)operating $ (55,525) $ 230,376 $ 248,791 $ 1,159,534activities[Continuingoperations]

Purchasesof propertyand (4,997) (5,697) (14,111) (21,099)equipment[Continuingoperations]

Free cashflow $ (60,522) $ 224,679 $ 234,680 $ 1,138,435[Continuingoperations]

Forecast

Three Months Ending November 30, 2021

(Amounts in millions, except per share Low Highamounts)

Net income $ 38 $ 106

Transaction-related and integration 119 99expenses^(4)

Amortization of intangibles 110 90

Share-based compensation 7 7

Purchase accounting adjustments^(3) 35 25

Income taxes related to the above^(1) (68) (55)

Non-GAAP net income $ 242 $ 272

Diluted EPS^(2) $ 0.39 $ 1.09

Transaction-related and integration 1.23 1.02expenses^(4)

Amortization of intangibles 1.14 0.93

Share-based compensation 0.07 0.07

Purchase accounting adjustments^(3) 0.36 0.26

Income taxes related to the above^(1) (0.70) (0.57)

Non-GAAP diluted EPS $ 2.50 $ 2.80

^ The tax effect of taxable and deductible non-GAAP adjustments was(1) calculated using the effective year-to-date tax rate during the respective periods.

Diluted EPS is calculated using the two-class method. Unvested restricted stock awards granted to employees are considered participating securities. For purposes of calculating Diluted EPS, income from continuing operations^ allocated to participating securities was approximately 1.2% of income from(2) continuing operations for both the three and nine months ended August 31, 2021, and approximately 1.1% and 1.2% for the three and nine months ended August 31, 2020, respectively. Net income allocable to participating securities is estimated to be approximately 0.8% of the forecast Net income for the three months ending November 30, 2021.

^ Purchase accounting adjustments are primarily related to certain(3) consideration received from vendors.

^ Includes amounts recorded in selling, general and administrative expenses(4) and interest expense and finance charges, net.

SYNNEX CorporationCalculation of Financial Metrics(currency in thousands)(Amounts may not add or compute due to rounding)Return on Invested Capital ("ROIC")

August 31, 2021 August 31, 2020

ROIC

Operating income (trailing fiscal four $ 638,233 $ 487,796quarters)

Income taxes on operating income^(1) (162,054) (97,475)

Operating income after taxes $ 476,179 $ 390,321

Total invested capital comprising equityand borrowings, less surplus cash (last $ 2,718,666 $ 3,126,766five quarters average)^(2)

ROIC 17.5 % 12.5 %

Adjusted ROIC

Non-GAAP operating income (trailing $ 714,785 $ 543,686fiscal four quarters)

Income taxes on Non-GAAP operating income (184,081) (114,812)^(1)

Non-GAAP operating income after taxes $ 530,704 $ 428,874

Total invested capital comprising equityand borrowings, less surplus cash (last $ 2,718,666 $ 3,126,766five quarters average)^(2)

Tax effected impact of cumulativenon-GAAP adjustments (last five 167,660 118,923

quarters average)

Total Non-GAAP invested capital (last $ 2,886,326 $ 3,245,689five quarters average)^(2)

Adjusted ROIC 18.4 % 13.2 %

Income taxes on GAAP operating income was calculated using the effective^ year-to-date tax rates during the respective periods. Income taxes on(1) non-GAAP operating income was calculated by excluding the tax effect of taxable and deductible non-GAAP adjustments using the effective year-to-date tax rate during the respective periods.

^ Invested capital for the fiscal quarters preceding the quarter ended(2) February 28, 2021 are based on pro forma presentation to reflect the separation of the Company's erstwhile Concentrix reportable segment into an independent public company on December 1, 2020.

Debt to Adjusted EBITDA leverage ratio

August 31, 2021 August 31, 2020

Total borrowings, excluding (a) $ 4,024,729 $ 1,654,108book overdraft^(1)

Less: cash and cash (b) 4,050,364 1,347,650equivalents^(1)

Net debt / (Net cash) (c)=(a)-(b) $ (25,635) $ 306,458

Trailing four quarters (d) $ 741,981 $ 571,542Adjusted EBITDA

Debt to Adjusted EBITDA (e)=(a)/(d) 5.4 2.9leverage ratio

Net debt to Adjusted EBITDA (f)=(c)/(d) - 0.5leverage ratio

^ Borrowings and cash and cash equivalents as of August 31, 2020 are based on(1) pro forma presentation to reflect the separation of the Company's erstwhile Concentrix reportable segment into an independent public company on December 1, 2020.

SYNNEX CorporationCalculation of Financial Metrics(currency in thousands)(Amounts may not add or compute due to rounding)(continued)Cash Conversion Cycle

Three Months Ended

August 31, 2021 August 31, 2020

Days salesoutstanding

Revenue (a) $ 5,207,064 $ 5,306,361

Accountsreceivable, (b) 2,229,640 2,640,879net^(1)

Days sales (c) = (b)/((a)/the number 39 46outstanding of days during the period)

Days inventoryoutstanding

Cost of (d) $ 4,894,442 $ 5,008,881revenue

Inventories^ (e) 2,866,212 2,832,607(1)

Days inventory (f) = (e)/((d)/the number 54 52outstanding of days during the period)

Days payableoutstanding

Cost of (g) $ 4,894,442 $ 5,008,881revenue

Accounts (h) 3,222,284 3,537,419payable^(1)

Days payable (i) = (h)/((g)/the number 61 65outstanding of days during the period)

Cashconversion (j) = (c)+(f)-(i) 32 33cycle

^ Accounts receivable, inventories and accounts payable as of August 31, 2020(1) are based on pro forma presentation to reflect the separation of the Company's prior Concentrix reportable segment into an independent public company on December 1, 2020.

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SOURCE TD SYNNEX