Reference Security Registrar Thailand Securities Depository Company Limited 93, 14th Floor, Ratchadaphisek Road, Dindaeng, Dindaeng, Bangkok 10400 Telephone Fax Security Registrar KPMG Phoomchai Audit Limited 48th-50th Floors, Empire Tower Building, 1, South Sathorn Road, Bangkok 10120 Telephone Fax CONTENT 2 Vision and Mission 32 Securities and Shareholders 3 Strategies 33 Dividend Policy Message from Board of Directors and 4 the Board of Directors 34 Management 6 Financial Highlight Organization and 47 Management Structure 8 General Information 68 Corporate Governance History and Major Development Corporate Social 11 78 Responsibilities Major Events and Report of the 16 Activities in 2019 86 Audit Committee Business Structure and Report of the Board of 18 Shareholding Directors on Financial 89 Reporting Business Overview and 19 Objectives 90 Related Transactions Industrial Outlook, Competition and Management Discussion 26 Maintaining of market share 95 and Analysis (MD&A) 28 Risk Factors Internal Control and 30 Risk Management * Reference ** Independent Auditor’s Report and Financial Statement for the year ended 31 December 2019 (QR Code) *** Annual Report 2019 English version (QR Code) VISION AND MISSION Vision “SYNNEX is committed to being a leading Thai company as well as to developing and growing its businesses to be strong and stable, together with incorporating a positive corporate culture and good governance practices and also in being responsible towards society and the environment, so as to achieve excellence in a sustainable manner” Mission • Being committed to achieving customer satisfaction together giving importance to delivering quality products and services to satisfy its customers and clients. • Being committed to creating economic value together with delivering trust and conffiidence with regards to conducting its businesses in accordance with the principles of good governance, as well as to being an organization that delivers positive ffiinancial returns to all involved Stakeholder groups in an equitable manner. • Being committed to developing creative thinking and innovation, as well as to making use of the latest modern and advanced technology or applications in managing its businesses so as to increase overall business effectiveness. • Being committed to creating a knowledge-based culture within the organization, so as to engage all its staff in developing and growing together with the Company and also to facilitate a mutually happy work environment. • Being committed to paying attention to as well as acting in a fully responsible manner towards the community, society as a whole and also the environment, so as to achieve ongoing business sustainability. 2 ANNUAL REPORT 2019 STRATEGIES 1. People Excellence: The strategy to maintain being in the 3. Operation Excellence: The strategy to maintain leading No. 1 position with regard to our human resources through being in the No. 1 position with regard to our business ongoing training and continuous development of our people, so operations through having in place the technology and that they will possess the skills, knowledge, leadership capabilities innovation Knowledge Base as a vital tool in adapting the Artiffiificial Intelligence-based technology for use within our as well as be ahead of the curve in being in synch with the fast internal operations management processes. This is to enhance changing latest technologies; together with building our human our potential capabilities in being able to launch and distribute resources team who are well-experienced with regard to the both IT products and IT-related services in a speedy and Internet of Things (IOT) so as to enable us to meet the current effiffiicient manner so as to create a distinct competitive business and immediate requirements of customers. Additionally, the advantage for the Company; together with reengineering the Company will give importance to looking after and taking care of internal working procedures and processes of the organization the health and welfare of our people as best as we can, in order to be fully aligned with the objective of growing the business to drive the Company towards achieving further successes in the future. under the latest Agile Methodology, in order to both more effectively meet and fully satisfy the needs of all involved 2. Product & Service Excellence: The strategy to maintain parties. being in the No. 1 position with regard to the types of IT products 4. Collaboration Excellence: This strategy is to maintain and associated services we provide through selecting only the being in the No.1 position within the hearts and minds of all latest and most innovative technology products with world-class involved Stakeholders of the Company - namely: business principals international brand names, so as to expand our products portfolio and partners/suppliers, customers, general consumers, investors and meet the various consumer demands in this current digital era. and Shareholders, local communities and society as a whole, Additionally, we will develop our Company to be the comprehensive through relying on the close cooperation of our personnel as a center of technological products together with being the center for key factor and primary means to create ongoing business technology-related services under the “Synnex as a Service (SaaS)” value-added for the Company in the domestic Thailand and concept, that will enable the SYNNEX to provide further types of regional Indo-China markets. As such, the strategy of Key Partner IT-related services to our customers. The Company will also further Management will be implemented by analyzing and assessing our Business Partners so as to successfully be able to access and develop and upgrade the quality standards of our comprehensive cooperate with this targeted group of desired Business Partners range of services under the “Total Solution Service” concept in in a more effective manner, together with supporting the emerging line with being an Integrated Service Solutions provider to support and smaller Business Partners so as to create greater confiffiidence the IoT Ecosystem, provided by a team of Certififfiied Engineers with and achieve ongoing stronger business growth with them. Additionally, the capability to deliver both the best-in-class IT products and the Company will conduct our businesses within the principles associated services to our customers and general consumers under of good corporate governance and corporate social responsibility the “Trusted by SYNNEX” corporate brand logo. for the beneffiifit of achieving continuous business growth and development on a sustainable basis. SYNNEX (THAILAND) PUBLIC COMPANY LIMITED 3 MESSAGE FROM THE BOARD OF DIRECTORS During the past year 2019, both the Public and Private Sectors profiffiit margin together with the revised sales commission schemes continue to make investments in various projects in order to support for the respective sales channels to be are more appropriate to the upcoming growth of the Digital Economy); as well as started to support the future growth of the business. make use of various digital tools so as to modernize and transform their respective organizations and also to enhance their capabilities For 2020, the concept of Digital Transformation will still continue and competitiveness. However, given the external factors relating to to be of great importance for organizations within both the Public the ongoing trade war between the US and China that has resulted and Private Sectors. As such, investments in new technology have in the overall negative impacts on exports and investment activities, been made to enhance the work effectiveness and effiffiiciency as together with other internal issues - especially with regard to the well as to support the ongoing growth of the digital economy. delayed legislative approval of the 2019 Government Budget, have Additionally, investments in the upcoming 5G telecommunications all resulted in a decline in the level of public confiffiidence in the network during this year is another key factor in promoting Government during the last part of the year and an overall slowdown ongoing investments in new technologies and platforms relating in domestic consumers’ spending despite the continuing economic to the Internet of Things (IoT) and Artiffiificial Intelligence (AI). This, stimulus initiatives undertaken by the Government towards the end in turn, will result in the actual realization and establishment of of the year. As such, the abovementioned major negative factors the IoT Ecosystem, that will form the foundation for the sales have resulted in the slowdown of the GDP and overall economic of both IT products and IT-related consulting services to various growth of Thailand when compared to the previous year; as well as industries - whether it relates to Smart Building, Smart Home, have caused the unavoidable decline in both ongoing investments and Smart Classroom as well as Smart Manufacturing within the in and consumption of IT and communications products within the Manufacturing Industry Sector. Information and Communications Technology Sector. SYNNEX, in its capacity of being one of the country’s distributor For 2019, SYNNEX achieved Total Sales Revenues together with a of a comprehensive range of IT products and provider of various Total Net Profiffiit of Baht 34,804 million and Baht 524 million, or a IT-related services, will continue to conduct its business within the decrease of 8.9% and 27.4% from the previous year,