Eplus Inc. · NASDAQ:PLUS
Eplus — Investor Presentation (February 2020)
29 slides from Eplus's investor presentation, February 2020
Slide 1: Investor Presentation
ePlus inc. Investor Presentation February 2020
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 © 2020 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 … … CLOUD DATA CENTER SECURITY NETWOR KI NG COLLAB ORATI ON ✓ Cloud Consulting ✓ Compute ✓ Threat Prevention & ✓ Software Defined ✓ Voice & Video Calling Services Detection Networking ✓ Virtualization ✓ Real-Time Messaging & ✓ Cloud Hosted Services ✓ Data Protection Meetings ✓ H
Slide 10: Independent Provider with Deep Strategic Relationships
Independent Provider with Deep Strategic Relationships SELECT STRATEGIC PARTNERS + Excellent channel partner for ePlus, representing 42% of technology segment net sales 1 + All core products plus data center, collaboration, security, enterprise software, and COMPLEMENTED BY ADDITIONAL RELATIONSHIPS
Slide 11: Broad and Diverse Customer Base
Broad and Diverse Customer Base GOVERNMENT & TELECOM, ENTERTAINMENT FINANCIAL TECHNOLOGY HEALTHCARE OTHER EDUCATION & MEDIA SERVICES 22% 17% 17% 14% 15% 15% ©© 2020 ePlus 2020 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 © 2020 ePlus inc. I 14
Slide 15: Strong Financial Results
Strong Financial Results FYE March 31 / Trailing twelve months ended December 31, 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
Strong Financial Results FYE March 31 / Trailing twelve months ended December 31, unaudited + Service revenue includes professional services, managed services, and staffing services. + From FY17 to FY19, service revenue has increased at a compound annual rate of 24%. + Service revenue as a percentag
Slide 17: 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 8% from FY15 to FY19. Technology segment represented 89% of our total gross profit in FY19. + Consolidated gross margin has increased from
Slide 18: Strong Financial Results
Strong Financial Results FYE March 31 / Trailing twelve months ended December 31, unaudited + From FY15 to FY19, net earnings increased at a compounded annual rate of 8% as a result of focusing on revenue and gross profit growth. + EPS and non-GAAP EPS CAGR were 11% and 8%, respectively, from FY15 t
Slide 19: Q3 FY20 Financial Results
Q3 FY20 Financial Results © 2020 ePlus inc. I 19 * See Non-GAAP Financial Information
Slide 20: Q3 FY20 YTD Financial Results
Q3 FY20 YTD Financial Results © 2020 ePlus inc. I 20 * See Non-GAAP Financial Information
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 1,200 986 8 cloud, security, and digital infrastructur
Slide 22: Strong Balance Sheet
Strong Balance Sheet $ in millions + $60 million in cash and equivalents as a Assets December 31, 2019 March 31, 2019 result of the change in working capital and Ca s h a nd equi va l ents $ 60 $ 80 Accounts recei va bl e 451 342 repurchases of our common stock Inventory 61 50 Fi na nci ng i nves tm
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 … … Collabora
Slide 24: Appendix
Appendix © 2020 ePlus inc. I 24
Slide 25: Non-GAAP Financial Information
Non-GAAP Financial Information $ in thousands Year Ended March 31, TTM Ended December 31, 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 $ 1,490,058 $ 1,335,470 Cos ts i ncurred rel a ted to s a l es of thi rd-pa r
Slide 26: Non-GAAP Financial Information
Non-GAAP Financial Information $ in thousands, except per share information Year Ended March 31, TTM Ended December 31, 2019 2018 2017 2016 2015 2019 2018 GAAP: Ea rni ngs before tax $ 86,230 $ 83,891 $ 86,112 $ 75,751 $ 78,313 $ 98,339 $ 84,371 Sha re ba s ed compens a tion 7,244 6,464 6,025 5,711
Slide 27: Non-GAAP Financial Information
Non-GAAP Financial Information $ in thousands, except per share information Three Months Ended December 31, Nine Months Ended December 31, 2019 2018 2019 2018 Technol ogy s egment net s a l es $ 410,628 $ 334,711 $ 1,176,881 $ 1,016,343 Cos ts i ncurred rel a ted to s a l es of thi rd-pa rty ma i nt
Slide 28: Return on Invested Capital
Return on Invested Capital $ in thousands Year Ended March 31, TTM Ended December 31, 2019 2018 2017 2016 2015 2019 2018 Numerator Opera ting i ncome $ 79,534 $ 84,239 $ 85,732 $ 75,751 $ 70,710 $ 91,871 $ 83,577 Les s : Ta xes [1] (21,236) (28,894) (35,407) (30,982) (29,345) (25,632) (27,079) Net o
Slide 29: Investor Relations ePlus inc.
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 © 2020 ©2020 ePlus inc. All ePlus inc. Confidential rights reserved. andand ePlus, the ePlus logo, Proprietary. all referenced product