SYNNEX Corporation. Acquires IBM s $1.2+B CRM BPO Business. September 10, 2013

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1 SYNNEX Corporation Acquires IBM s $1.2+B CRM BPO Business September 10, 2013

2 Safe Harbor Statements in this presentation regarding SYNNEX Corporation, which are not historical facts may be forwardlooking statements within the meaning of Section 27A of the Securities Act of 1933 and Section 21E of the Securities Exchange Act of These forward-looking statements may be identified by terms such as believe, 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 the anticipated benefits for SYNNEX of the acquisition of IBM s worldwide customer care services business, including future financial and operating results, SYNNEX competitive position, value to SYNNEX stockholders, SYNNEX plans, objectives, expectations and intentions and the timing of the closing. These are subject to risks and uncertainties that could cause actual results to differ materially from those discussed in the forward-looking statements. Please refer to the documents filed with the Securities and Exchange Commission, specifically our most recent Form 10-K and 10-Q, for information on risk factors that could cause actual results to differ materially from those discussed in these forward looking statements. Statements included in this presentation are based upon information known to SYNNEX Corporation as of the date of presentation and SYNNEX Corporation assumes no obligation to update information contained in this presentation. 2

3 Transaction Overview On 9/10/2013 SYNNEX and IBM announced a definitive agreement by which SYNNEX will acquire IBM s $1.2+ billion worldwide customer care outsourcing business $505 million purchase price: $430 million in cash and $75 million in SYNNEX common stock IBM s CRM business will be combined with Concentrix, a wholly-owned subsidiary of SYNNEX, to become one of the world s foremost customer engagement outsourcing companies in the $55 billion+ CRM BPO market IBM s CRM business services ~170 clients in >40 languages through over 40 delivery centers on six continents SYNNEX will enter into a multi-year agreement whereby Concentrix will become an IBM strategic business partner for global customer care business process outsourcing services Initial close expected to occur in the coming months, subject to customary closing conditions and satisfaction of domestic and foreign regulatory requirements/approvals 3

4 Acquisition Rationale Strategically and Financially Compelling Acquisition Compelling shareholder value creation Strong margin profile with significant cash flow generation Anticipated immediate accretion with EPS impact of approximately $0.55 in the 12 months following the closing of the transaction (excluding 1X charges) Supportive of long-term ROIC goals Concentrix becomes Top 10 provider in growing $55B+ CRM BPO market Attractive blue chip client base, with long-term contracts, is well-diversified across industry verticals and geographies, and is complementary to Concentrix existing client base Expanded global footprint for additional language delivery and service locations Combined ~45,000 employees, 50+ delivery centers Expands Concentrix global infrastructure and services portfolio Additional technology platforms to enhance operating leverage Extensive portfolio of services, technologies and offerings to support customer life-cycle Multi-year strategic partnership with IBM as preferred partner for CRM BPO 4

5 Overview of Combined Business New Concentrix Overview Top 10 player in global CRM marketplace ~ 45,000 staff 40+ languages ~ 300 customers Comprehensive portfolio of services and offerings Global footprint with 50+ delivery centers on six continents Customer Care, Sales Support, Marketing Services, Customer Fulfillment, Industry/Vertical Services, Insurance Services Robust technology platforms to support the customer lifecycle Campaign Management Cross-Media Marketing Demand Gen Direct Sales Data Management Technical Support Customer Care e-support Billings Concierge Evergreen Loyalty Service Revenue Generation Contact to Close Deep industry vertical knowledge: Automotive, Banking, Computer Services, Government, Insurance, IT, Telecom, Utilities, Other 5

6 Synergies/Opportunities Opportunities for expansion of client relationships on both sides through complementary technologies and service offerings Opportunity to penetrate mid-market and grow in new and emerging markets given a well-distributed client base around the globe Focus on gaining share in a consolidating, fragmented market Meaningful cost savings from operational leverage and efficiencies from a combined organization Enhances our value added solutions-based services offerings 6

7 Additional information is available on the SYNNEX Investor Relations site: ir.synnex.com which includes press releases, conference call webcasts and presentations, and also on Concentrix website: 7