Eplus Inc. · NASDAQ:PLUS
Eplus — Investor Presentation (November 2019)
29 slides from Eplus's investor presentation, November 2019
Slide 1: Investor Presentation
ePlus inc. Investor Presentation November 2019
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 © 2019 ePlus inc. I 3
Slide 4: ePlus at a Glance
ePlus at a Glance + Leading provider of technology solutions focused on cloud, security, and digital infrastructure + Technology partners include Cisco, Dell Technologies, HPE, NetApp, Palo Alto Networks and VMware + FY19 adjusted gross billings: $1.9 billion § 7% CAGR FY15-FY19 + FY19 net sales: $1
Slide 5: 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 30+ Years of Experience 25+ Years of Experience Technology, inc. Joined ePlus in 1997 25+ Years o
Slide 6: 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 25 – 65% GM 5 – 13% GM 13 – 16% GM 20 – 25% GM 29 – 32% GM GROSS MARGIN 1 INCREASING CUSTOMER VALUE AND VENDOR MARGIN
Slide 7: Expanding Footprint
Expanding Footprint SINGAPORE UK Resources to implement locally and globally INDIA INTERNATIONAL OFFICES REGIONAL OFFICE SALES OFFICES MANAGED SERVICES CENTERS INTEGRATION CENTERS 40+ locations serving the U.S., Europe, and Asia-Pac 24/7 365 managed services operations and integration centers strate
Slide 8: Targeted M&A Strategy with Track Record of Success
Targeted M&A Strategy with Track Record of Success + August 2019 + January 2019 + September 2017 + May 2017 + Southern and Western Virginia + Southern and central Virginia + Chicago and Indianapolis data + Cloud-based services, solutions centers and DevOps + New customers, SLED focus, + Security man
Slide 9: ePlus Solution Areas
ePlus Solution Areas … … CL OUD DAT A CEN T ER S ECURIT Y N ET W ORK IN G COL L AB OR AT ION ü Cloud Consulting ü Compute ü Threat Prevention & ü Software Defined ü Voice & Video Calling Services Detection Networking ü Virtualization ü Real-Time Messaging & ü Cloud Hosted Services ü Data Protection
Slide 10: Independent Provider with Deep Strategic Relationships
Independent Provider with Deep Strategic Relationships SELECTED STRATEGIC PARTNERS + Excellent channel partner for ePlus, representing 42% of technology segment net sales 1 COMPLEMENTED BY ADDITIONAL RELATIONSHIPS + All core products plus data center, security, lifecycle services, and Cisco One/soft
Slide 11: Broad and Diverse Customer Base
Broad and Diverse Customer Base GOVERNMENT & TELECOM, ENTERTAINMENT FINANCIAL TECHNOLOGY EDUCATION & MEDIA SERVICES HEALTHCARE OTHER 22% 17% 16% 14% 15% 16% ©© 2019 2019ePlus ePlusinc. inc. I 11
Slide 12: A Commitment to Corporate Social Responsibility
A Commitment to Corporate Social Responsibility I 12
Slide 13: Why ePlus
Why ePlus Technology evolves quickly, and every new development exposes our customers to new opportunities and new challenges. ePlus is the partner that can help them navigate with confidence and agility. “Do what it takes” Industry-leading Comprehensive Proven processes Highly-accessible, dedicatio
Slide 14: Elaine Marion, Chief Financial Officer
Elaine Marion Chief Financial Officer © 2019 ePlus inc. I 14
Slide 15: Strong Financial Results
Strong Financial Results FYE March 31 / Trailing twelve months ended September 30, unaudited + Operations are conducted through two segments. The technology segment sells information technology products, software and services, while the financing segment provides lease and financing solutions. + The
Slide 16: Strong Financial Results: Service Revenue
Strong Financial Results FYE March 31 / Trailing twelve months ended September 30, unaudited Service Revenue ($mm) + Service revenue includes professional services, % = 24 managed services, and staffing services. ro wth ue G $200 e ve n 20.0% 24% i ce R R= Serv $174 + From FY17 to FY19, service reve
Slide 17: Strong Financial Results: Gross Profit and Margin
Strong Financial Results FYE March 31 / Trailing twelve months ended September 30, unaudited + Consolidated gross profit increased at a Gross Profit and Gross Margin ($mm) compounded annual rate of 8% from FY15 to th = 1 1% $400 ro f it Grow 35.0% P FY19, driven by our technology segment, % Gross GR
Slide 18: Strong Financial Results: Net Earnings and EPS
Strong Financial Results FYE March 31 / Trailing twelve months ended September 30, unaudited + From FY15 to FY19, net earnings increased at a Net Earnings and Non-GAAP Net Earnings * ($mm) compounded annual rate of 8% as a result of $100 wth = 1 4% R = 8% Ea rn ings Gro w th = 10% focusing on revenu
Slide 19: Q2 FY20 Financial Results
Q2 FY20 Financial Results Net Sales and Adjusted Gross Billings * ($mm) Gross Profit and Gross Margin ($mm) % rowth = 19 Growth = 21% $650 Net Sales G = 19% $140 Gross Profit 35.0% th AGB Grow $548.4 $103.0 $550 $105 30.0% $85.5 $485.9 $450 $70 25.0% $381.4 24.8% 25.0% $350 $345.0 $35 20.0% $250 $0
Slide 20: Q2 FY20 YTD Financial Results
Q2 FY20 YTD Financial Results Net Sales and Adjusted Gross Billings * ($mm) Gross Profit and Gross Margin ($mm) % Gross Profit Growth = 18% $2,000 rowth = 13 $300 35.0% Net Sales G Gro w th = 16% sted Gro ss Billings Ad ju $195.7 $1,500 $225 30.0% $1,127.4 $166.2 $968.2 $150 25.0% $1,000 $792.9 $701
Slide 21: Growing Customer Facing Personnel
Growing Customer Facing Personnel Employee Headcount Growth by Function + Acquiring consultative sales professionals to 1,800 1,537 bring successful business outcomes to our 1,600 7 customers. 1,400 313 % + Focused on growing engineering talent in 17 1,200 986 8 cloud, security, and digital infrastr
Slide 22: Strong Balance Sheet
Strong Balance Sheet $ in millions + $56 million in cash and equivalents as a Assets September 30, 2019 March 31, 2019 result of the change in working capital and Ca s h a nd equi va l ents $ 56 $ 80 Accounts recei va bl e 394 342 repurchases of our common stock Inventory 57 50 Fi na nci ng i nves t
Slide 23: Customized Solutions. Measurable Results. Q&A
Customized Solutions. Measurable Results. Cloud Positioned squarely at the forefront of today’s most Data Center transformative technologies, ePlus’ solutions, services, and financing expertise help organizations imagine, Security implement, and achieve more from technology. Networking … Collaborati
Slide 24: Appendix
Appendix © 2019 ePlus inc. I 24
Slide 25: Non-GAAP Financial Information
Non-GAAP Financial Information $ in thousands Year Ended March 31, TTM Ended September 30, 2019 2018 2017 2016 2015 2019 2018 Technol ogy s egment net s a l es [1] $ 1,329,520 $ 1,372,765 $ 1,294,937 $ 1,169,065 $ 1,108,449 $ 1,414,141 $ 1,332,820 Cos ts i ncurred rel a ted to s a l es of thi rd-pa
Slide 26: Non-GAAP Financial Information
Non-GAAP Financial Information $ in thousands, except per share information Year Ended March 31, TTM Ended September 30, 2019 2018 2017 2016 2015 2019 2018 GAAP: Ea rni ngs before tax $ 86,230 $ 83,891 $ 86,112 $ 75,751 $ 78,313 $ 91,821 $ 79,886 Sha re ba s ed compens a ti on 7,244 6,464 6,025 5,71
Slide 27: Non-GAAP Financial Information
Non-GAAP Financial Information $ in thousands, except per share information Three Months Ended September 30, Six Months Ended September 30, 2019 2018 2019 2018 Technol ogy s egment net s a l es $ 397,718 $ 334,768 $ 766,253 $ 681,632 Cos ts i ncurred rel a ted to s a l es of thi rd-pa rty ma i ntena
Slide 28: Return on Invested Capital
Return on Invested Capital $ in thousands Year Ended March 31, TTM Ended September 30, 2019 2018 2017 2016 2015 2019 2018 Numerator Opera ti ng i ncome $ 79,534 $ 84,239 $ 85,732 $ 75,751 $ 70,710 $ 85,629 $ 79,945 Les s : Ta xes [1] (21,236) (28,894) (35,407) (30,982) (29,345) (23,890) (22,145) Net
Slide 29: 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 © 2019 ©2019 ePlus inc. All ePlus inc. Confidential rights reserved. andand ePlus, the ePlus logo, Proprietary. all referenced product