Slide 1: ePlus inc. Investor Presentation
ePlus inc. Investor Presentation February 6, 2024 © 2024 ePlus inc. Confidential and Proprietary.
Slide 2: Safe Harbor Statement
Safe Harbor Statement This investor presentation contains certain statements that are, or may be deemed to be, “forward-looking statements” within the meaning of the safe harbor provisions of the U.S. Private Securities Litigation Reform Act of 1995. Statements in this investor presentation that are
Slide 3: Mark Marron, Chief Executive Officer
Mark Marron Chief Executive Officer © 2024 ePlus inc. Confidential and Proprietary.
Slide 4: By the Numbers
By the Numbers 30+ Years 10% $2.07B $3.15B as a leading, global of listed companies FY23 net sales FY23 gross billings technology integrator trading since 1996 5,500+ 1,500+ 4,300+ 1,897 certifications OEM Vendor customers employees and Partnerships as of accreditations December 31, 2023 © 2024 ePlu
Slide 5: Key Five Year CAGRs
Key Five Year CAGRs Fiscal Year 2019 – Fiscal Year 2023 Net sales 11% Services revenue 15% Gross profit 12% Diluted EPS 18% Our growing portfolio of solutions and services has facilitated consistent top-and bottom-line growth, creating operating leverage for our business
Slide 6: Experienced Leadership Team
Experienced Leadership Team Mark Elaine Darren Marron Marion Raiguel Chief Executive Officer Chief Financial Officer Chief Operating Officer, Joined ePlus in 2005 Joined ePlus in 1998 President of ePlus 35+ Years of Experience 30+ Years of Experience Technology, inc. Joined ePlus in 1997 30+ Years o
Slide 7: Expanding Footprint
Expanding Footprint SINGAPORE UK Resources to implement locally and globally INDIA INTERNATIONAL OFFICES 30+ locations serving the U.S., U.K., Europe, and Asia-Pac 24/7/365 managed services operations and integration centers strategically placed throughout the U.S. 5,500+ certifications from the top
Slide 8: Comprehensive Set of Solutions & Services
Comprehensive Set of Solutions & Services SERVICES PROFESSIONAL SERVICES | MANAGED SERVICES ADVISORY & CONSULTING SERVICES STRATEGIC TECHNOLOGY STAFFING LIFECYCLE CX SOLUTIONS | SOFTWARE LICENSE OPTIMIZATION AI ASSESS, ENABLE, SECURE, IMPLEMENT, AMPLIFY SECURITY SECURITY SOLUTIONS | SECURITY ADVISOR
Slide 9: Key Strategic Focus Areas
Key Strategic Focus Areas Cloud: Security: Artificial Journey to Compromise Intelligence: Modernization Nothing Ignite Modernize data center Go Beyond managing threats by Assess, enable, secure, infrastructures, extend capabilities, building an infrastructure that implement and amplify the accelerat
Slide 10: Broad Portfolio of ePlus Services
Broad Portfolio of ePlus Services Our services are PROFESSIONAL designed with CX in SERVICES mind, offering options MANAGED SERVICES ranging from STRATEGIZE ARCHITECT ADVISORY & consultative to managed, For more agility For better outcomes CONSULTING that help customers SERVICES realize the full val
Slide 11: Financial Services: A Bridge to the Technology You Need
Financial Services: A Bridge to the Technology You Need Aligning technology with financing options provides cost predictability, flexible contract terms and fast access to hardware, software and services. © 2024 ePlus inc. Confidential and Proprietary.
Slide 12: Well Positioned within the IT Ecosystem
Well Positioned within the IT Ecosystem Our range of complex solutions and services places us in high end of the IT market Vendors Distributors VARs IT Solutions Services/Integrators 22 – 72% GM 6 – 13% GM 16 – 21% GM 24 – 26% GM 30 – 33% GM GROSS MARGIN 1 Increasing customer value and vendor margin
Slide 13: Targeted M&A Strategy with Track Record of Success
Targeted M&A Strategy with Track Record of Success + May 2017 + September 2017 + January 2019 + August 2019 + Cloud-based services, + Chicago and Indianapolis + Southern and central + Southern and Western solutions and DevOps data centers Virginia Virginia + Offices in Milpitas, CA and + New geograp
Slide 14: Customer First. Services Led. Results Driven.
Customer First. Services Led. Results Driven. TECHNOLOGY GOVERNMENT & TELECOM, ENTERTAINMENT FINANCIAL HEALTHCARE OTHER EDUCATION & MEDIA SERVICES 17% 16% 24% 10% 13% 20% Percentages are based on net sales during the twelve months ended December 31, 2023. © 2024 ePlus inc. Confidential and Proprieta
Slide 15: ePlus in Action
ePlus in Action CLOUD Children’s Hospital: Cloud Disaster SECURITY Industrial Manufacturing: vCISO Recovery Challenge: Significant security-related audit requirements arose Challenge: Current disaster recovery solution was unable to meet the without sufficient internal support resources to put polic
Slide 16: Customer Innovation Center
Customer Innovation Center New 80,000 square-foot facility supports fulfillment of global technology and logistics services for thousands of customers in 50+ countries • Technology Demonstration Lab • Configuration • Deployment • Warehouse • Briefing Center © 2024 ePlus inc. Confidential and Proprie
Slide 17: Elaine Marion, Chief Financial Officer
Elaine Marion Chief Financial Officer © 2024 ePlus inc. Confidential and Proprietary.
Slide 18: Strong Financial Results
Strong Financial Results FYE March 31 / Trailing twelve months ended December 31, unaudited + Operations are conducted through two businesses. The technology business sells information technology products, software and services, while the financing business provides lease and financing solutions. +
Slide 19: Strong Financial Results
FYE March 31 / Trailing twelve months ended December 31, unaudited Strong Financial Results + Professional services include advanced professional services, staff augmentation, project management services, cloud consulting services and security services. + Managed services include advanced managed se
Slide 20: Strong Financial Results
Strong Financial Results FYE March 31 / Trailing twelve months ended December 31, unaudited + Consolidated gross profit increased at a compounded annual rate of 12% from FY19 to FY23. Technology business represented 92% of our total gross profit in FY23. + Consolidated gross margin has increased fro
Slide 21: Strong Financial Results
Strong Financial Results FYE March 31 / Trailing twelve months ended December 31, unaudited + From FY19 to FY23, net earnings increased at a compounded annual rate of 17% as a result of focusing on gross profit growth and cost management. + Diluted EPS and non-GAAP EPS CAGR was 18% from FY19 to FY23
Slide 22: Strong Financial Results
Strong Financial Results FYE March 31 / Trailing twelve months ended December 31, unaudited + Adjusted EBITDA represents net earnings before interest expense, depreciation and amortization, share based compensation, acquisition and integration expenses, provision for income taxes, and other income.
Slide 23: Q3 FY24 Financial Results
Q3 FY24 Financial Results * See Non-GAAP Financial Information © 2024 ePlus inc. Confidential and Proprietary.
Slide 24: Q3 FY24 YTD Financial Results
Q3 FY24 YTD Financial Results * See Non-GAAP Financial Information © 2024 ePlus inc. Confidential and Proprietary.
Slide 25: Growing Customer Facing Personnel
Growing Customer Facing Personnel + Acquiring consultative sales professionals to bring successful business outcomes to our customers. + Focused on growing engineering talent in cloud, security, and digital infrastructure. + Customer facing personnel increased by 177 from FY19 to FY23, which represe
Slide 26: Strong Balance Sheet
Strong Balance Sheet $ in millions Assets December 31, 2023 March 31, 2023 + $142 million in cash and equivalents Ca s h a nd equi va l ents $ 142 $ 103 Accounts recei va bl e 647 560 + Financing portfolio of $197 million, Inventory 218 243 representing investments in leases Fi na nci ng i nves tmen
Slide 27: Fiscal Year 2024 Guidance
Fiscal Year 2024 Guidance Issued August 7, 2023 + Continue to outperform IT industry + Adjusted EBITDA range of $200 million to spending growth $215 million + Upside driven by focus sectors with + Adjusted EBITDA margin of 9.0% to 9.2%. above market growth, improving supply chain and strong backlog
Slide 28: Q&A
Q&A Mark Marron Elaine Marion Chief Executive Officer Chief Financial Officer © 2024 ePlus inc. Confidential and Proprietary.
Slide 29: Appendix
Appendix © 2024 ePlus inc. Confidential and Proprietary.
Slide 30: Non-GAAP Financial Information
Non-GAAP Financial Information $ in thousands, except per share information Year Ended March 31, TTM Ended December 31, 2023 2022 2021 2020 2019 2023 2022 Net ea rni ngs $ 119,356 $ 105,600 $ 74,397 $ 69,082 $ 63,192 $ 126,647 $ 110,747 Provi s i on for i ncome taxes 43,618 41,284 32,509 26,877 23,0
Slide 31: Non-GAAP Financial Information
Non-GAAP Financial Information $ in thousands, except per share information Three Months Ended December 31, Nine Months Ended December 31, 2023 2022 2023 2022 Net ea rni ngs $ 27,282 $ 35,694 $ 93,793 $ 86,502 Provi s i on for i ncome taxes 11,131 13,671 36,122 34,134 Depreci a tion a nd a mortiza t
Slide 32: Return on Invested Capital
Return on Invested Capital $ in thousands Year Ended March 31, TTM Ended December 31, 2023 2022 2021 2020 2019 2023 2022 Numerator Opera ting i ncome $ 166,162 $ 147,316 $ 106,335 $ 95,279 $ 79,534 $ 171,656 $ 158,224 Les s : Ta xes [1] (44,531) (41,396) (32,326) (26,678) (21,236) (45,437) (45,220)
Slide 33: Thank you!
Thank you! Customer First. Services Led. Results Driven. Investor Relations ePlus inc. Kley Parkhurst, SVP 13595 Dulles Technology Drive Herndon, VA 20171-3413 (703) 984-8150 investors@eplus.com (703) 984-8400 / eplus.com © 2024 ePlus inc. Confidential and Proprietary.