president, concentrix · gamification, ux, cx, app development, system integration, sentiment...
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© 2019 Concentrix Corp. All Rights Reserved. Confidential and Proprietary.
Concentrix CorporationChris CaldwellPresident, ConcentrixJune 2019
© 2019 Concentrix Corp. All Rights Reserved. Confidential and Proprietary.
Safe Harbor Statement
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
investments, our growth and growth opportunities, core CRM BPO market CAGR, market expansion beyond CRM BPO, our market positioning,
our profitability, our margin, and our cash flow generation and financial profile. 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 the Company assumes no
obligation to update information contained in this presentation.
© 2019 Concentrix Corp. All Rights Reserved. Confidential and Proprietary.
Concentrix at a glanceEnable companies to be more cost effective and strategic in
delivering services to their customers around the world
650+clients
225k+employees
50+Unicorns/Disruptors
6k+CredentialedProfessionals
80+Fortune500 Clients
40+Countries
80+Industry Awards
70Languages
Revenue (1)
$4.7BAdj Op Income (1)
$446M
(1) Pro forma 2018 financials includes full year financials for Convergys. Adjusted Operating Income is a Non-GAAP Measure. See pages 14 & 15 for definitions of Non-GAAP Measures and a reconciliation such measures to GAAP.
NYSE:
SNX
© 2019 Concentrix Corp. All Rights Reserved. Confidential and Proprietary.
Marketplace - Larger than just CRM BPO
Source: IDC, Nelson Hall, Gartner, HFS, Bain & Company, Nasscom, Company filings, and other industry research.
$70B Core CRM BPO market today
• Growing at a ~3-5% CAGR over the next 5 years
Addressable market beyond CRM BPO:
• Large market opportunity in other areas
• As our industry evolves we’re investing in new
relevant markets
$70BCRM BPO
Consulting
$188B+
Maintenance
Services
$135B+
Back Office
BPO
$125B+
Vertical BPO
$200B+
RPA
$2B+
Artificial
Intelligence
$20B
Digital Services
$100B+
IoT
$235B
Analytics /
Big Data
$145B+
Marketplace continues to expand beyond CRM BPO
© 2019 Concentrix Corp. All Rights Reserved. Confidential and Proprietary.
We have successfully executed on our strategic acquisitions
We have a history of strong organic growth and we are a proven consolidator in a highly fragmented market
2005
50 Staff
2006
Concentrix is acquiredand integrated with
BSA to make the newConcentrix
2007
Link2Support is acquired
2008
1,800 Staff
2009
IntelligentOutsourcing and
Occidental BusinessServices are acquired
2010
e4e Teleservices,Encover and Aspire
are acquired
2011
gem (Belfast) isacquired
2012
7,500 Staff
2013
10,000 Staff
2014
IBM CRM IndustryVertical Business
is acquired
2015
55,000 Staff
2016
Minacs isacquired
2017
Ultimate CSR andTigerspike are acquired
110,000 Staff
Convergys is acquired225,000 Staff
2018
Synnex acquiresBSA Sales
2004
© 2019 Concentrix Corp. All Rights Reserved. Confidential and Proprietary.
Global Beverage
Brand
Global Snack
Company
Performance
Car Company
Big Four
Clearing Bank
Global Technology
CompanyLargest Retail
Disruptor
Global Consumer
Electronics CompanyLeading Cloud
Company
World’s Largest
Ride-Share Company
Subscription Media
Streaming Company
Major Healthcare
Provider
Top Global
AirlineYou already count on Concentrix every day
We stand behind the iconic brands you trust.
average years of client tenure
years of longest client partnership
12+ 35+
© 2019 Concentrix Corp. All Rights Reserved. Confidential and Proprietary.
of overall business
~65% than rest of
business
Growing
faster
• High compliance
• High investment
• Barriers to entry
• Deeper engagement
We focus on 5 key verticals and high value solutions
Healthcare Insurance Automotive
TechnologyBanking
© 2019 Concentrix Corp. All Rights Reserved. Confidential and Proprietary.
We’re making bets that will drive additional margin expansion
as we see scale and leverage from these investments.
Our investment in technology differentiates us
IVR
VOC & Analytics
AI
Platforms &App Development
IOTAutomation & RPA
User Design
Social Care
Connected Devices
System Integration
© 2019 Concentrix Corp. All Rights Reserved. Confidential and Proprietary.
Innovation is in our DNAWe have provided technology-infused
solutions for longer than a decade.
2005
Software platform,
user experience,
process automation
(GIAS), social media
care & forum
moderation
Banking work flow
automation & BO
platform (Factorin,
Tradefree), real-time
business rules and
policy mgmt (DDS)
Security automation,
fraud prevention
(OCOC)
User experience,
real-time intelligence,
self-serve automation
(Stats on Demand)
Analytics,
intelligence,
process automation
(Red Flag System)
User design, real-time
productivity gains,
knowledgebase automation
(call back tracker), intelligent
marketing optimization
platform (Aurora), web-based
performance (eCoaching)
User design, CX,
self-serve automation
(RenewalsManager),
VOC (text analytics),
CX-focused journey
analytics & consulting
Social media care,
intelligence
(forum moderation),
next best action
GUI based desktop
automation (AIF)
CEM platform with
algorithmic logic &
analytics (AltCRM),
gamification
Multichannel &
augmented CRM
(omnichannel), fraud
automation, cognitive
learning & AI (ACAS)
Advance analytics
(speech and text)
predictive analytics,
preventative modeling,
contextual interaction
across channels (CIH)
IOT, Connected Car,
advanced learning
automation
BI tool (Ultimate CSR),
voice biometrics
Gamification, UX, CX,
app development, system
integration, sentiment analysis,
Uberish app for staff transport
(e-care), IVR support of cloud
NLU, digitally transformed VOC
platform
2018
Facial recognition
biometrics for WAH,
emotion analytics,
cognitive customer
engagement platform,
AR technical services
2006 2008 2010 2012 2014 20162007 2009 2011 2013 2015 2017 2019
Solv gig platform,
Conversational Virtual
Assistants
© 2019 Concentrix Corp. All Rights Reserved. Confidential and Proprietary.
Our unique access and view
BRANDS
COMPETITIVE
MARKET
HUMANBEHAVIOR
© 2019 Concentrix Corp. All Rights Reserved. Confidential and Proprietary.
Everest Group recognizes
us as a PEAK LEADERRecognized as a leader
• 4th time as a leader
• A star performer based on movement
• High buyer satisfaction scores
• A leader in market impactClient Recognition
Industry Awards
89 client awards in 2018
37 client awards in Q1 2019 (FY)
• Customer Obsession Awards –
Global eRetailer
• Best Creative Thinking Partner –
Global Technology Company
• Outstanding Service Award –
Top Healthcare Provider
• Best Vendor Partner Award –
Top India Insurance Company
• Service Excellence Award – Global
Travel/Transportation Company
76 awards in 2018
20 awards in Q1 2019 (FY)
• Innovation in Business to Business
Services – Stevie Asia Pacific Awards
• Workforce Management: Best Inclusion
and Diversity Strategy – Brandon Hall
• Dream Company to Work For – Asia Best
Employer Brand Awards
• Best New Improved Product or Service –
UK Customer Experience Awards
• Inspirational Leadership, Special Awards
– CCA Global Excellence Awards Analyst Top Box Mentions
© 2019 Concentrix Corp. All Rights Reserved. Confidential and Proprietary.
Strategic investments and strong organic growth driving step changes in financial profile
(1) Non-GAAP Measure. See pages 14 & 15 for definitions of Non-GAAP Measures and a reconciliation such measures to GAAP.
(2) Pro forma 2018 financials includes full year financials for Convergys.
$2,463Adjusted Operating Income (1)
Revenue
$1,990
$1,588
$1,417
$1,096
$189$160
2018201720162015201420132012
$257
$180$131
$113$97
$16$11
($M)
$1,000
$200
$100
$0
$4,696
PF 2018 (2)
$446
$5,000
Financial performance
© 2019 Concentrix Corp. All Rights Reserved. Confidential and Proprietary.
Investment Highlights
Strong
portfolio of
capabilities
Recognized
global leader
in the market
Investments in
disruptive
technologies,
applications
and services
Well positioned
in an evolving,
yet attractive
market
Attractive
financial profile
and strong cash
flow generation
650+ clients base -
vast majority name
brand, unicorns or
major players in
their marketplace
© 2019 Concentrix Corp. All Rights Reserved. Confidential and Proprietary.
Non-GAAP Financial Measures
Use of Non-GAAP Financial Measures
To supplement the financial results presented in accordance with GAAP, SYNNEX uses Revenue in constant currency, adjusted selling, general and administrative
expenses, adjusted operating income, adjusted operating margin, adjusted earnings before interest, taxes, depreciation and amortization, non-GAAP net income
attributable to SYNNEX Corporation, non-GAAP diluted earnings per share (“EPS), and adjusted return on invested capital, which are non-GAAP financial measures that
exclude the amortization of intangible assets, restructuring costs, acquisition-related and integration expenses and the related tax effects thereon. In the fiscal year
2018, non-GAAP net income and non-GAAP diluted earnings per share also exclude the impact of an adjustment relating to the enactment of the Tax Cuts and Jobs Act
of 2017. This adjustment includes a transition tax on accumulated overseas profits and the remeasurement of deferred tax assets and liabilities to the new U.S. tax
rate.
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 SYNNEX’ operational
results and trends that more readily enable investors to analyze 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 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. A reconciliation of SYNNEX’ non-GAAP financial information to GAAP is set
forth in the following slide.
Definition of Non-GAAP Financial Measures included in this presentation:
• Adjusted operating income, which is operating income as adjusted to exclude acquisition-related and integration expenses, restructuring costs and the amortization
of intangible assets.
© 2019 Concentrix Corp. All Rights Reserved. Confidential and Proprietary.
Reconciliation of GAAP to Non-GAAP Financial Measures
Fiscal year ended November 30,
2012 2013 2014 2015 2016 2017 2018
Concentrix
Revenue 159,522$ 189,463$ 1,096,214$ 1,416,670$ 1,587,736$ 1,990,180$ 2,463,151$
Operating income 6,376 3,249 2,455 51,127 63,877 114,623 144,761
Acquisition-related and integration expenses - 8,394 43,036 10,109 10,393 1,057 37,490
Restructuring costs - - - - 4,255 - -
Amortization of intangibles 4,407 4,041 51,623 52,126 52,833 64,252 74,325
Adjusted operating income 10,783$ 15,684$ 97,114$ 113,362$ 131,358$ 179,932$ 256,576$
Amounts in $’000