Slide 1: Fourth Quarter and Full Year 2019 Earnings Conference Call and Webcast
Insight Enterprises, Inc. Fourth Quarter and Full Year 2019 Earnings Conference Call and Webcast Exhibit 99.2
Slide 2: Agenda
Agenda Opening Comments CEO Commentary Fourth Quarter 2019 Consolidated Financials Full Year 2019 Consolidated Financials 2019 Highlights 2020 Priorities CFO Commentary Financial results by region Taxes and cash flow Closing Comments & 2020 Guidance
Slide 3: Disclosures: Safe harbor statement
Disclosures Safe harbor statement This presentation includes “forward-looking statements” within the meaning of the Private Securities Litigation Reform Act of 1995 related to Insight’s plans and expectations. Statements that are not historical facts, including the Company’s expected 2020 financial
Slide 4: Q4 2019 Year over Year
Q4 2019 Year over Year Results Net Sales Gross Profit Gross Margin +31% YoY +33% YoY +20 bps YoY SG&A % of Net Sales Adj EFO* Adj Diluted EPS* +50 bps YoY +29% YoY +11% YoY $2.30B 2018 2019 $338M 2018 2019 $82M 2018 2019 11.6% 2018 2019 14.7% 2018 2019 $1.57 2018 2019 GAAP Earnings from operations $
Slide 5: FY 2019 Year over Year
* Adjusted Non-GAAP excludes severance and restructuring expense and other unique items FY 2019 Year over Year Results Net Sales Gross Profit Gross Margin +9% YoY +15% YoY +70 bps YoY SG&A % of Net Sales Adj EFO* Adj Diluted EPS* +80 bps YoY +11% YoY +9% YoY $7.73B 2018 2019 $1.14B 2018 2019 $282M 2
Slide 6: FY 2019 Highlights
FY 2019 Highlights Strategic Investments Acquisition of PCM Teammate Development Fortune’s 100 Best Workplaces for Diversity, ranked #70 Fortune’s 50 Best Workplaces in Technology, ranked #23 Capacity for growth – New debt facilities Strong Financial Performance High single-digit top line growth Fou
Slide 7: Our go-to market strategy
Our go-to market strategy Product-focused Suppliers Outcome-based Clients Supply Chain Optimization Connected Workforce Cloud + Data Center Transformation Digital Innovation CapEx OpEx Manage Today Transform Tomorrow
Slide 8: CFO Commentary
CFO Commentary Financial results by region Taxes and cash flow
Slide 9: Q4 North America Financial
* Adjusted Non-GAAP excludes severance and restructuring expense and other unique items Q4 North America | Financial Results Net Sales Gross Profit Gross Margin +38% YoY +44% YoY +70 bps YoY SG&A % of Net Sales Adj EFO* Sales Mix +80 bps YoY +40% YoY 67% 20% 13% Hardware Software Services $1.86B 201
Slide 10: FY 2019 North America Financial
* Adjusted Non-GAAP excludes severance and restructuring expense and other unique items FY 2019 North America | Financial Results Net Sales Gross Profit Gross Margin +12% YoY +19% YoY +80 bps YoY SG&A % of Net Sales Adj EFO* Sales Mix +80 bps YoY +14% YoY 66% 21% 13% Hardware Software Services $6.02
Slide 11: Q4 EMEA Financial
* Adjusted Non-GAAP excludes severance and restructuring expense and other unique items ** Reference “Constant currency” section on slide 3 of this presentation Q4 EMEA | Financial Results Net Sales Gross Profit Gross Margin +11% YoY +4% YoY -90 bps YoY SG&A % of Net Sales Adj EFO* Sales Mix -30 bps
Slide 12: FY 2019 EMEA Financial
* Adjusted Non-GAAP excludes severance and restructuring expense and other unique items ** Reference “Constant currency” section on slide 3 of this presentation FY 2019 EMEA | Financial Results Net Sales Gross Profit Gross Margin +5% YoY +8% YoY +30 bps YoY SG&A % of Net Sales Adj EFO* Sales Mix +30
Slide 13: Q4 APAC Financial
* Adjusted Non-GAAP excludes severance and restructuring expense and other unique items ** Reference “Constant currency” section on slide 3 of this presentation Q4 APAC | Financial Results Net Sales Gross Profit Gross Margin -2% YoY -7% YoY -140 bps YoY SG&A % of Net Sales Adj EFO* Sales Mix +170 bp
Slide 14: FY 2019 APAC Financial
* Adjusted Non-GAAP excludes severance and restructuring expense and other unique items ** Reference “Constant currency” section on slide 3 of this presentation FY 2019 APAC | Financial Results Net Sales Gross Profit Gross Margin +2% YoY +6% YoY +90 bps YoY SG&A % of Net Sales Adj EFO* Sales Mix +80
Slide 15: Cash Flows and Cash Cycle
* Adjusted Non-GAAP excludes severance and restructuring expense and other unique items Cash Flows and Cash Cycle Net cash from operations Cash Conversion Cycle +5 days YoY Days sales outstanding Days inventory outstanding Days purchases outstanding -2 days YoY 0 days YoY -7 days YoY $128M 2018 2019
Slide 16: Closing Comments
Closing Comments 2020 net sales expected to grow between 20% and 25% Adjusted diluted earnings per share* are expected to be between $6.55 and $6.65 per share for the full year 2020 Assumptions: interest expense between $35 and $40 million. an effective tax rate of 25% to 26% for the full year 2020.
Slide 17: Appendix – Reconciliation of GAAP to Non-GAAP Financial Measures
Appendix – Reconciliation of GAAP to Non-GAAP Financial Measures
Slide 18: Appendix – Reconciliation of GAAP to Non-GAAP Financial Measures (continued)
Appendix – Reconciliation of GAAP to Non-GAAP Financial Measures (continued)
Slide 19: Appendix – Reconciliation of GAAP to Non-GAAP Financial Measures (continued)
Appendix – Reconciliation of GAAP to Non-GAAP Financial Measures (continued) * The adjusted non-GAAP consolidated EFO amount used for the Adjusted non-GAAP ROIC calculation does not exclude amortization of intangible assets. This calculation remains consistent with the metric utilized in management’