Synnex Thailand PCL Opportunity Day

Aug 2012

2011 US$27 billions Global Distributors

Across 30 countries, 184 offices

SYNNEX APAC Group : Taiwan (HQ), HK, China, Australia, NZ, Thailand

Redington Group : India, Srilanka, Middle East, Africa, Turkey

SYNNEX USA Group : Canada, USA, Mexico

Operating History & Current Position....

Taiwan 1975 No.1

USA 1992 No.3

HK / China 1997 No.2

Australia 1998 No.2 (New Zealand)

Thailand 1999 No.1

India 2005 No.2

Middle East/Africa 2005 No.1

Turkey 2010 No.2

Over 10,000 millions in 2007

Over 20,000 millions in 2011

Synnex Thailand: Another Major Milestone in 2011

9,400,000,000

9,600,000,000

9,800,000,000

10,000,000,000

10,200,000,000

10,400,000,000

10,600,000,000

Y2012 Y2011

10,597,769,000

9,850,739,000

H1 Revenue

H1 Revenue

H1 2012 Sales Revenue

+7.60%

5,200,000,000

5,400,000,000

5,600,000,000

5,800,000,000

6,000,000,000

6,200,000,000

6,400,000,000

6,600,000,000

6,800,000,000

Y2012 Y2011

6,782,866,390

5,761,578,821

Top 10 categories : H1 2012

Top 10

H1 2012 Top 10 categories’ revenue

+17.73%

Preliminary Worldwide PC Vendor Unit Shipment Estimates for 2Q12 (Units)

Note: Data includes desk-based PCs and mobile PCs, including mini-notebooks but not media tablets such as the iPad.

Source: Gartner (July 2012)

Table 1: Preliminary Worldwide PC Vendor Unit Shipment Estimates for 2Q12 (Units)

Company 2Q12

Shipments

2Q12

Market

Share (%)

2Q11

Shipments

2Q11 Market

Share (%)

2Q12-

2Q11

Growth (%)

HP 13,036,548 14.9 14,838,734 16.9 12.1-

Lenovo 12,820,301 14.7 11,160,303 12.7 14.9

Acer 9,646,383 11.0 9,315,341 10.6 3.6

Dell 9,349,212 10.7 10,570,007 12.1 11.5-

ASUS 6,120,957 7.0 4,416,125 5 38.6

Others 36,495,872 41.7 37,256,607 42.6 2.0-

Total 87,469,273 100.0 87,557,116 100 0.1-

2Q 2012 Media Tablet shipments

Top 5 Vendors, Worldwide Media Tablet Shipments, Second Quarter 2012 (Preliminary) (Unit Shipments are in thousands)

Source: IDC Worldwide Quarterly Media Tablet Tracker, August 2, 2012.

Vendor 2Q12

Shipments

Market

Share

2Q11

Shipments

Market

Share2

YoY

Growth

1. Apple 17,042 68.2% 9,248 61.5% 84.3%

2. Samsung 2,391 9.6% 1,099 7.3% 117.6%

3. Amazon 1,252 5.0%

4. ASUS 855 3.4% 397 2.6% 115.5%

5. Acer 385 1.5% 629 4.2% -38.7%

Others 3,067 12.3% 3,668 24.4% -16.4%

All Vendors 24,994 100.0% 15,042 100.0% 66.2%

Worldwide Sales of Media Tablets to End Users by OS

OS 2011 2012 2013 2016

iOS 39,998 72,988 99,553 169,652

Android 17,292 37,878 61,684 137,657

Microsoft - 4,863 14,547 43,648

QNX 807 2,643 6,036 17,836

Others 1,919 510 637 464

Total Market 60,017 118,883 182,457 369,258

Source: Gartner (April 2012)

Table 1: Worldwide Sales of Media Tablets to End Users by OS (Thousands of Units)

Top Smartphone Operating Systems, Shipments, and Market Share

Operating

System

Q2 2012

Shipments

Q2 2012

Market Share

Q2 2011

Shipments

Q2 2011

Market Share

YoY

Change

Android 104.8 68.1% 50.8 46.9% 107%

iOS 26.0 16.9% 20.4 18.8% 28%

BlackBerry OS 7.4 4.8% 12.5 11.5% -41%

Symbian 6.8 4.4% 18.3 16.9% -63%

Windows Phone 5.4 3.5% 2.5 2.3% 115%

Linux 3.5 2.3% 3.3 3.0% 6%

Others 0.1 0.1% 0.6 0.5% -80%

Grand Total 154.0 100.0% 108.3 100.0% 42%

Source: IDC Worldwide Mobile Phone Tracker, August 8, 2012

Top Smartphone Operating Systems, Shipments, and Market Share, Q2 2012 (Units in Millions)

Notes: Smartphone OS shipments are branded shipments and exclude OEM sales for all vendors. Unbranded phones, also referred to as "White Phones", are included.

PRODUCTS TREND

Microsoft Windows 8

Microsoft Surface

Ultrabook – Slim and Powerful

All In One Desktop PC With & Without Touch Panel

Media Tablets +

Smarter Smartphones

Video Conference: Work Anywhere

IDC: Top 10 key ICT predictions in 2012 for Thailand

1. Sustained spending in Thailand’s ICT industry

2. Mobile Data Services to lead Telecommunication spending

3. Consumerization: The New World Order

4. Clear skies ahead for Cloud Computing

5. Knock the door please – May FTTx come in?

6. Battle between smart devices and PCs continues in 2012

7. Providers will actively expand Wi-Fi services for 3G offload

8. Business Continuity and Disaster Recovery

9. Customer Centricity – Beyond Traditional CRM

10. Growing demand for big data analytics

1. Sustained spending in Thailand’s ICT industry

• IDC expects the total ICT spending in 2012 to post a YoY increase of 10.4%, reaching close to US$16.8 billion

6. Battle between smart devices and PCs continues in 2012

• IDC forecasts that the shipment of smart devices in 2012 will be 6.7 million units compared to only 4.1 million PC units

Internet in Thailand updated : 3G, FTTH

• A 3G UMTS/HSDPA network was launched in Bangkok and its vicinity in December 2009 with speed up to 7.2 Mbit/s on the 2100 MHz band.

• In the late 2011, TOT released 3G on HSPA+ technology covering all areas in Bangkok with the speed of up to 42 Mbit/s.

• Major mobile network operators in Thailand also have released their 3G services on the 850 MHz and 900 MHz bands

• These networks are scheduled to be switched to HSPA+ in the middle of 2012

• There are initiatives to offer mainstream FTTH (Fiber to the Home) providing bandwidth of up to 100 Mbit/s

From Wikipedia, the free encyclopedia

FINANCIAL HIGHLIGHTS

Opportunity Day Q2/2012

30 August 2012

OverVIEW q2/12 and h1/12

• IT Market is doomed to slow growth and is expected to grow by 0-2%

• Synnex posts 3.31% YoY sales growth for Q2/2012 and 7.58% for 1H/2012

• The net profit margin of Q2/2012 was 1.46% and 1.53% for H1/12

• The increase in SG&A expenses was due to personnel expenses and operating expenses but they were under control.

• Inventories rise higher and customers are paying more slowly.

Unit : MB. Q2/11 Q2/12 YoY

Sales 5,297.1 5,472.4 3.31%

Cost of sales 5,003.2 5,205.4 4.04%

Gross Profit 293.9 267.0 -9.14%

SG&A 141.8 151.5 6.86%

EBIT 156.4 121.3 -22.40%

Financial Cost 14.2 16.4 15.89%

Net Profit 107.6 80.1 -25.54%

EPS (Baht/Share) 0.16 0.12 -25.00%

Income statement (YOY) Unit: Million Baht

Unit : MB. H1/10 H1/11 H1/12 YoY

Sales 7,504.2 9,850.7 10,597.8 7.58%

Cost of sales 7,083.2 9,269.4 10,077.9 8.72%

Gross Profit 420.9 581.4 519.9 -10.58%

SG&A 256.8 282.9 309.6 9.43%

EBIT 199.3 313.7 242.3 -22.75%

Financial Cost 14.6 24.0 27.2 13.50%

Net Profit 133.9 216.1 162.6 -24.75%

EPS (Baht/Share) 0.20 0.32 0.24 -25.00%

Income statement (h1) Unit: Million Baht

Ratio H1/10 H1/11 H1/12

Gross Profit Margin (%) 5.61% 5.90% 4.91%

SG&A (%) 3.42% 2.87% 2.92%

EBIT (%) 2.66% 3.18% 2.29%

Financial Cost (%) 0.19% 0.24% 0.26%

Net Profit Margin (%) 1.78% 2.19% 1.53%

Return on Assets (ROA) (%) 9.45% 10.98% 8.72%

Return on Equity (ROE) (%) 18.95% 24.65% 19.84%

Return on Invested Capital (ROIC) (times)

19.68% 25.33% 19.66%

Key ratio KEY RATIO

quarterly REVENUE AND PROFIT

Q1 09 Q2 09 Q3 09 Q4 09 Q1 10 Q2 10 Q3 10 Q4 10 Q1 11 Q2 11 Q3 11 Q4 11 Q1 12 Q2 12

Total Revenue 3,05 3,47 3,92 3,03 3,77 3,76 4,23 3,88 4,56 5,30 5,95 4,44 5,15 5,47

Net Profit 33 62 74 34 72 62 86 51 108 108 87 67 82 80

-

20

40

60

80

100

120

140

160

180

200

-

1,000

2,000

3,000

4,000

5,000

6,000

7,000

TO

TA

L R

EV

EN

UE

(M

B)

Unit: Million Baht

CAPITAL STRUCTURE AND LEVERAGE

Q1 10 Q2 10 Q3 10 Q4 10 Q1 11 Q2 11 Q3 11 Q4 11 Q112 Q212

Total Debt to Equity (times) 1.85 2.03 2.08 1.66 2.07 2.50 2.37 1.65 1.98 2.46

Interest Coverage (times) 16.35 11.54 16.48 8.58 16.00 11.04 9.14 9.30 11.18 8.90

-

2

4

6

8

10

12

14

16

18

-

1.0

2.0

3.0

4.0

5.0

6.0

7.0

H1/10 H1/11 H1/12

Cash 160 86 106

Accounts Receivable 2,169 2,964 3,185

A/R Days 43 50 48

Inventories 1,188 1,642 1,948

Inventory Days 23 31 33

Others 122 268 380

Total Current Asset 3,639 4,960 5,619

Total Non-Current Asset 392 406 364

Total Asset 4,031 5,366 5,983

H1/2012 - ASSET Unit: Million Baht

H1/10 H1/11 H1/12

Current Liabilities

Bank Loan 1,293 1,882 1,612

Loan/Equity 0.97 1.23 0.93

Accounts Payable 1,128 1,682 2,253

A/P Days 20 27 31

Others 147 232 204

Total Current Liabilities 2,568 3,796 4,070

LT Loan 110 - 145

Other 20 37 39

Total Non-Current Liabilities

130 37 185

Total Liabilities 2,699 3,833 4,255

H1/2012 - liabilities Unit: Million Baht

H1/10 H1/11 H1/12

Shareholders’ Equity

Paid-up Share Capital 688 691 697

Share Premium 326 334 339

Retained Earning 317 507 692

Total Shareholders’ Equity

1,331 1,532 1,728

Total Liabilities and Equity

4,031 5,366 5,983

H1/2012 - equity Unit: Million Baht

Outlook for H2/2012 - Smartphone and 3G Trends - Growth driven by Windows 8 - New product launching

Outlook for H2/2012

- Expansion IT Business in Republic of the Union of Myanmar

- Efficiency in negotiating with vendors on Sales target, profit and inventory

- Cost saving

CORPORATE SOCIAL RESPONSIBILITY

• โครงการ “กิก๊เก่าพี่ แต่ กิก๊ใหม่หนู”

Corporate social responsibility

ซนิเน็คฯ ไดเ้ขา้ชงิรางวลั CSR Awards 3 ปีซอ้น

CORPORATE SOCIAL RESPONSIBILITY

• รางวลัตา่งๆ ทีซ่นิเน็คฯไดรั้บ

Questions & answers

Thank you

INVESTOR RELATIONS: EMAIL: IR@SYNNEX.CO.TH

FOR FURTHER INFORMATION AND CURRENT NEWS: WWW.SYNNEX.CO.TH/INVESTOR