ePlus Inc. · NASDAQ:PLUS
ePlus — Needham Growth Conference January 2017
25 slides from ePlus's conference presentation, January 2017
Slide 1: Investor Presentation
Investor Presentation January 2017 © 2017 ePlus inc. I 1
Slide 2: Safe Harbor Statement
Safe Harbor Statement Statements in this presentation that are not historical facts may be deemed to be "forward-looking statements." Actual and anticipated future results may vary materially due to certain risks and uncertainties, including, without limitation, possible adverse effects resulting fr
Slide 3: Mark Marron, Chief Executive Officer
Mark Marron Chief Executive Officer © 2017 ePlus inc. I 3
Slide 4: ePlus at a Glance
ePlus at a Glance + Leading provider of technology solutions focused on cloud, data center, security, infrastructure, and collaboration solutions + Technology partners include Cisco, HPE, NetApp, Dell/EMC and VMware + FY16 net sales: $1.2 billion 10% CAGR FY12-FY16 + FY16 non-GAAP earnings per sha
Slide 5: Experienced Leadership Team, Strong Alignment of Interest
Experienced Phil Norton Mark Marron Elaine Marion Leadership Team, Executive Chairman 22 Years with ePlus + 45 Years of Experience Chief Executive Officer Chief Financial Officer 18 Years with ePlus 11 Years with ePlus Strong Alignment + 31 Years of Experience + 25 Years of Experience of Interest Da
Slide 6: Well Positioned within the IT Ecosystem
Well Positioned within the IT Ecosystem ePlus’ range of complex solutions and services place it at the high end of the IT market Vendors Distributors VARs IT Solutions Services/Integrators 25 – 65% GM 5 - 13% GM 13 - 16% GM 17 – 23% GM 29 – 32% GM GROSS MARGIN 1 INCREASING CUSTOMER VALUE AND VENDOR
Slide 7: Our footprint means we are never far away
Our footprint means we are never far away. 30+ office locations across the U.S. and in London Six integration centers throughout the U.S. Three Managed Service Centers 300+ technical resources certified by the top IT manufacturers in the world ©©2017 2017ePlus ePlusinc. inc. I 7
Slide 8: Targeted M&A Strategy with Track Records of Success
Targeted M&A Strategy with Track Records of Success + November 2013 ($2.8 million) + December 2015 ($16.6 million) + August 2014 ($10.5 million) + Rochester area reseller with + Expand security offerings + Sacramento Cisco VAR, storage expertise largest Cisco VAR to State + UK location to serve UK a
Slide 9: The End Goal: Driving Business Outcomes
The End Goal: Driving Business Outcomes From legacy IT to transformational technologies, our consultative approach focuses on driving cost- effective outcomes to move your business forward, securely. We are vendor agnostic and have a broad range of engineering credentials in all requisite technologi
Slide 10: End-to-End Suite of Customized Solutions
We’re experts in the most End-to-End Suite of Customized Solutions critical technologies that run our customers’ business. CLOUD MOBILITY & COLLABORATION + Private, Hybrid, and Public + Mobility and Wireless + Cloud as a Service + Unified Communications and + Co-location and Interconnection Web Conf
Slide 11: Expanding Professional and Managed Services
Expanding Professional and Managed Services Assessment Led, Consultative Approach: Focus on Customer Business Outcomes SERVICE HIGHLIGHTS + Expanded services headcount and offerings + Grew managed service center locations from 1 to 3 + Drove consistent growth in services revenue + Generated recurrin
Slide 12: Independent Provider with Deep Strategic Relationships
Independent Provider with Deep Strategic Relationships SELECTED STRATEGIC PARTNERS + COMPLEMENTED BY ADDITIONAL EMERGING RELATIONSHIPS VENDORS + Excellent channel partner for ePlus, representing 49% of technology sales 1 STORAGE + Networking, security, converged infrastructure + ePlus engineers are
Slide 13: Customer Verticals
STATE & LOCAL GOVERNMENT, EDUCATION TECHNOLOGY HEALTHCARE FINANCIAL SERVICES TELECOM, MEDIA & ENTERTAINMENT OTHER © 2017 © 2017 ePlus ePlus inc. inc. I 13
Slide 14: Broad and Diverse Customer Base
Broad and Diverse Customer Base Net Sales TTM 2QFY17 1 + Focused on enterprise and middle-market customers Other, 18% + > 3,100 existing customers (As of 3/31/2016) Technology, 23% Healthcare, 10% + No customers in excess of 10% of net sales in FY16 + Broad-based services capabilities and multi-vend
Slide 15: Elaine Marion, Chief Financial Officer
Elaine Marion Chief Financial Officer © 2017 ePlus inc. I 15
Slide 16: Annual Financial Results: Net Sales
* See Non-GAAP Financial Information Annual Financial Results: $ in millions, FYE 3/31 / Trailing twelve months ended 9/30/2016, unaudited / : Technology : Financing Net Sales + Operations are conducted through two $1,400 $1,268 $1,204 $32 segments. The technology segment sells $1,200 $1,143 $35 $1,
Slide 17: Annual Financial Results: Gross Profit
Annual Financial Results: $ in millions, FYE 3/31 / Trailing twelve months ended 9/30/2016, unaudited / : Technology : Financing Gross Profit + Consolidated gross profit increased at a $300 $281 $262 $26 compounded annual rate of 11% from FY12 to $250 $245 $25 $217 $24 FY16, driven by our technology
Slide 18: Annual Financial Results: Net Earnings
Annual Financial Results: $ in millions, FYE 3/31 / Trailing twelve months ended 9/30/2016, unaudited Net Earnings + From FY 12 to FY16, net earnings increased at a $55 $48 compounded annual rate of 18% as a result of $46 $45 $45 focusing on revenue growth and controlling $35 $35 overhead expenses.
Slide 19: Annual Financial Results (cont): Adjusted EBITDA
Annual Financial Results (cont): * See Non-GAAP Financial Information $ in millions, FYE 3/31 / Trailing twelve months ended 9/30/2016, unaudited Adjusted EBITDA * + Adjusted EBITDA represents net earnings before $100 $86 interest expense, depreciation and amortization, $81 $80 $75 provision for inc
Slide 20: Growing Productivity While Strategically Expanding Workforce
Growing Productivity While Strategically Expanding Workforce ($ in millions) Employee Headcount Growth by Function Net Sales Per Sales & Marketing Employee 1,200 $2.8 1,074 $2.6 7 $2.6 73 1,000 833 195 $2.4 9 $2.3 800 66 $2.2 168 342 $2.0 600 FY12 FY16 226 Net Sales Per Employee 400 $1.4 457 200 364
Slide 21: Strong Balance Sheet
Strong Balance Sheet: ($ in millions) Assets September 30, 2016 March 31, 2016 + $48 million in cash and equivalents Ca s h a nd equi va l ents $ 48 $ 95 Accounts recei va bl e 327 276 + $300 million financing facility with Wells Inventory 80 33 Fi na nci ng i nves tments 151 132 Fargo Commercial Di
Slide 22: Appendix
™ Appendix ePlus. Where Technology Means More.® © 2017 ePlus inc. I 22
Slide 23: Non-GAAP Financial Information
Non-GAAP Financial Information: $ in thousands, except per share information Year Ended March 31, 2016 2015 2014 2013 2012 Sa l es of product a nd s ervi ces , a s reported $ 1,163,337 $ 1,100,884 $ 1,013,374 $ 936,228 $ 784,951 Cos ts i ncurred rel a ted to s a l es of thi rd pa rty s ervi ces 393,
Slide 24: Non-GAAP Financial Information
Non-GAAP Financial Information: $ in thousands, except per share information Three Months Ended September 30, Six Months Ended September 30, 2016 2015 2016 2015 Sa l es of product a nd s ervi ces , a s reported $ 361,227 $ 324,259 $ 651,408 $ 583,955 Cos ts i ncurred rel a ted to s a l es of thi rd
Slide 25: Investor Relations
Investor Relations Kley Parkhurst, SVP (703) 984-8150 investors@eplus.com ePlus inc. 13595 Dulles Technology Drive, Herndon, VA 20171-3413 (703) 984-8400 / eplus.com ©2017 ePlus inc. All rights reserved. ePlus, the ePlus logo, and all referenced product names are trademarks or registered tr ademarks