Corporate Executive Deck
Transcript of Corporate Executive Deck
© 2017 Concentrix Corporation Confidential
Concentrix CorporationChris Caldwell
President@CNXPresident
Different by DesignTM
Baird 2017 Global Consumer, Technology
and Services Conference
June 6, 2017
© 2016 Concentrix Corporation Confidential© 2017 Concentrix Corporation Confidential
Safe Harbor Statement
2
Statements in this presentation regarding Concentrix Corporation or SYNNEX Corporation which are not historical facts may be 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, 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 our business strategy, our investments, our growth, CRM BPO market and growth
opportunities, growth rate of our verticals, our service features and capabilities, and our financial goals.
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 SYNNEX Corporation’s most recent Form 10-K and Form 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 Concentrix Corporation as of the date of presentation and Concentrix Corporation assumes no obligation
to update information contained in this presentation.
© 2016 Concentrix Corporation Confidential© 2017 Concentrix Corporation Confidential 3
Note: Financials based on last twelve months as of February 28, 2017.
(1) Non-GAAP Measure. See appendix for Definitions of Non-GAAP Measures and a reconciliation such measures to GAAP.
SYNNEX Corporation Services Division – Concentrix
$ 1 . 7 B
$ 1 4 9 M
R E V E N U E
A D J U S T E D
O P E R A T I N G
I N C O M E ( 1 )
$ 1 4 . 5 B
$ 4 8 0 M
R E V E N U E
A D J U S T E D
O P E R AT I N G
I N C O M E ( 1 )
• Founded in 1980
• NYSE: SNX
• 119 Consecutive
Quarters of Profitability
© 2016 Concentrix Corporation Confidential© 2017 Concentrix Corporation Confidential
Enable companies to be more cost effective
and strategic in delivering services to their
customers around the world
What We Do…
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Differentiation in the
Marketplace
Revenue and
Profit Growth
Increased
Customer Loyalty
Intelligent
Interactions
Personalized
Experiences
© 2016 Concentrix Corporation Confidential© 2017 Concentrix Corporation Confidential
$0
$500
$1,000
$1,500
$2,000
$2,500
$3,000
$3,500
$4,000
$4,500
CRM Marketplace
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($M Revenue)
Global Top 5 (1)
#5
Growth Opportunities (2)
$170B
$10B
$400B
$35B
$100B
$100B Digital
Marketing
ServicesVertical BPO
Back Office
BPO
Analytics Services
IT Consulting
Maintenance &
Support
Consulting
$135B
Internet of
Things
CRM BPO
$64B
Notes:
(1) Based on 2016 revenue as available. Peers adjusted for acquisitions. Concentrix adjusted for Minacs acquisition. Source: Company filings, Wall Street research and Gartner research.
(2) Source: Nelson Hall research, Gartner research, Nasscom reports, other industry research, Company public filings, Wall Street research.
© 2016 Concentrix Corporation Confidential© 2017 Concentrix Corporation Confidential
Concentrix At-A-Glance
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Environment
VOTED
BESTPLACETO WORK
Quality Experts
2000+Trained COPC Coordinators One of First Certified
Helped Develop Standard Self-Benchmarking Status
Global CRM Business Services
TOP
5
Top Ranked Global
Presence in
Awards
Industry Awardsin 2016
55
35+Clients
450+
Average Client Tenure
12
Years
Languages
40+
Staff Technology
ConnectedGlobalTechnologyInfrastructure
1
Over
Years35Longest Client Relationship
Relationships
Locations
125+
Leadership Position
2016MARKETLEADER
Recognized as a leader in
95%of publications and industry reports
YearsCountries
© 2017 Concentrix Corporation Confidential
Diversified Revenue Base >50% Outside North America
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United States
Uruguay
Colombia
Costa RicaBrazil
Nicaragua
United Kingdom
Australia
UAE
Japan
Bulgaria
Portugal
Spain
Slovakia
Saudi
ArabiaIndia
China
New Zealand
Philippines
Malaysia
South Korea
Canada
Brazil
Australia
Singapore
Romania
Romania
Presence in 35+ Countries
© 2016 Concentrix Corporation Confidential© 2017 Concentrix Corporation Confidential
Strong Portfolio – Key Verticals and High Value Solutions
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Client Solution Mix
Traditional
CRM
Technology
Enabled
>70%
Other
Verticals
Strategic
Verticals
>70%
Vertical Mix
Strategic verticals growing 3x faster
than rest of business
© 2016 Concentrix Corporation Confidential© 2017 Concentrix Corporation Confidential
Recognized as Leaders by Many Industry Experts & Our Clients
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Analyst Leader Placement
Client Recognition
• Best Service Experience – Largest China Communications
Company
• Best Customer Effort Score – Global Technology Company
• Outstanding Customer Service – Largest India Insurance
Company
• Customer Obsession Awards – Global eRetailer
• Top Individual Contributors – Global Financial Company
• Best Performing Business Partner – Top Healthcare Provider
Industry Awards
© 2016 Concentrix Corporation Confidential© 2017 Concentrix Corporation Confidential
Gartner Positions Concentrix as a Global Leader
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March 2017 Magic Quadrant for Customer Management Contact Center BPO, Worldwide
8th Time positioned as a Leader
A Leader in “Completeness of Vision”
Highest in “Ability to Execute”
(1) This graphic was published by Gartner, Inc. as part of a larger research document and should be evaluated in the context of the entire document. The Gartner document
is available upon request from Concentrix.
(2) Gartner does not endorse any vendor, product or service depicted in its research publications, and does not advise technology users to select only those vendors with
the highest ratings or other designation. Gartner research publications consist of the opinions of Gartner's research organization and should not be construed as
statements of fact. Gartner disclaims all warranties, expressed or implied, with respect to this research, including any warranties of merchantability or fitness for a
particular purpose.
(3) Concentrix acquired IBM’s CRM and Industry Vertical Business in early 2014.
© 2016 Concentrix Corporation Confidential© 2017 Concentrix Corporation Confidential
Evolution of the Market
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PRICE OF
SERVICE VALUE OF
TRANSACTIONALIGNED
FINANCIAL
PRINCIPLES1990s
2000s
2020+
• Fragmented Delivery
• Labor Arbitrage
• Vendor Relationships • Consolidation of Vendors
• New Delivery Channels
• Technology Introduced
• Closer Partnerships• End-to-End Process
Management
• Effortless Engagement
• Emotional Connections
• Personalized Experiences
• Embedded Partners
© 2016 Concentrix Corporation Confidential© 2017 Concentrix Corporation Confidential
More Disruption to Come
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• Personalized Emotional Experiences
• Focus on True Loyalty, Brand Advocates, Repeat Buyers
CUSTOMER
SENTIMENT
• Collecting, Connecting and Interpreting Data
• Effortless Engagement
• Gain Share – Aligned Financial Rewards
• Collaborative Partner Ecosystem
CONNECTED
ENVIRONMENT
ALIGNED
GOALS
© 2016 Concentrix Corporation Confidential© 2017 Concentrix Corporation Confidential
Concentrix - Investing for the Future
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SENTIMENT
ANALYSIS
SYSTEM
INTEGRATION
PERSONALIZED
INTERACTIONS
• Analysis of Communication Styles
• Real Time Emotional Feedback
• Digital Development and SI Capabilities
• Channel Technology Enhancement – AI
• Big Data - 360 Degree View of Customer
• Connected Car \ Internet Of Things
© 2016 Concentrix Corporation Confidential© 2017 Concentrix Corporation Confidential
$11 $16
$97
$113$131
$149$160
$189
$1,096
$1,417
$1,588
$1,721
$0
$400
$800
$1,200
$1,600
2012 2013 2014 2015 2016 Q1 LTM
Concentrix Performance – First Investment 2004
(1) Non-GAAP Measure. See appendix for Definitions of Non-GAAP Measures and reconciliation to GAAP measures.
(2) Q1 LTM financials based on last twelve months as of February 28, 2017.
Financial Performance
Adjusted Operating Income (1)
$200
$100
Revenue
$1,417
$1,588
$1,096
$1,721
($M)
Strategic Investments and Strong Organic Growth Driving Step Changes in Revenue
Take Share of Wallet
Targeting Double-Digit
Adjusted Operating Margin
Superior Adjusted ROIC
Strategic Acquisitions
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(2)
© 2016 Concentrix Corporation Confidential© 2017 Concentrix Corporation Confidential
Well Positioned to Grow
• Corporate Culture Aligned to Being Contrarian
• Recognized Global Leader in the Market
• Focused on Personalized, Intelligent Services in Key Growth Markets
• Investments in Disruptive Technologies, Applications and Services
• Continued Plan for Strategic Acquisitions
• Strong Balance Sheet
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© 2017 Concentrix Corporation Confidential
Appendix
Different by DesignTM
© 2016 Concentrix Corporation Confidential© 2017 Concentrix Corporation Confidential
Use of Non-GAAP Financial Measures
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To supplement the financial results presented in accordance with GAAP, Concentrix/SYNNEX uses Adjusted operating income, Adjusted operating margin, and
Adjusted return on invested capital, among others, which are non-GAAP financial measures that exclude the amortization of intangible assets, restructuring costs,
acquisition and integration expenses and the related tax effects thereon. These non-GAAP measures provide investors with an additional tool to evaluate operating
results. Because these non-GAAP 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 the Company's consolidated financial statements prepared in accordance with GAAP.
Concentrix/SYNNEX management uses the 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. Concentrix/SYNNEX management believes it is useful for the company and
investors to review, as applicable, both GAAP information, and the non-GAAP measures in order to assess the performance of Concentrix/SYNNEX’ continuing
businesses and for planning and forecasting in future periods. These non-GAAP measures are intended to provide investors with an understanding of
Concentrix/SYNNEX’ operational results and trends that more readily enable investors to analyze Concentrix/SYNNEX' base financial and operating performance and
to facilitate period-to-period comparisons and analysis of operational trends. The management of Concentrix/SYNNEX believes the 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. A reconciliation of Concentrix/SYNNEX’ non-GAAP financial information to GAAP is set forth in the supplemental information table at the end of this
presentation.
The non-GAAP financial measures included in this presentation are:
• Adjusted operating income, which is operating income as adjusted to exclude acquisition and integration expenses, restructuring costs and the amortization of
intangible assets.
• Adjusted operating margin, which is Adjusted operating income as defined above divided by Revenue (at the consolidated level) and Segment Revenue at the
segment level.
© 2016 Concentrix Corporation Confidential© 2017 Concentrix Corporation Confidential
Reconciliation of GAAP to Non-GAAP Financial Measures
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