Eplus Inc. · NASDAQ:PLUS
Eplus — Investor Presentation (May 2023)
30 slides from Eplus's investor presentation, May 24, 2023
Slide 1: Investor Presentation May 24, 2023
+ 4 . + . e ) “< Where Technology Means More® -< SS x ePlus inc. Investor Presentation May 24, 2023 © 2023 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 © 2023 ePlus inc. I 3
Slide 4: ePlus at a glance: partnerships, customers, billings
OEM Vendor Partnerships Listed companies employees in business for 30+ years customers as a leading, global technology integrator FY23 gross billings certifications FY23 net sales © 2023 ePlus inc.
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 35+ Years of Experience 30+ Years of Experience Technology, inc. Joined ePlus in 1997 30+ Years o
Slide 6: Expanding Footprint
Expanding Footprint SINGAPORE UK Resources to implement locally and globally INDIA INTERNATIONAL OFFICES REGIONAL OFFICE SALES OFFICES MANAGED SERVICES CENTERS INTEGRATION CENTERS 30+ locations serving the U.S., U.K., Europe, and Asia-Pac 24/7/365 managed services operations and integration centers
Slide 7: Independent Provider with Deep Strategic Relationships
Independent Provider with Deep Strategic Relationships SELECT STRATEGIC PARTNERS + All core products plus data center, collaboration, security, enterprise software, and lifecycle services + ePlus has over 230 Cisco certified individuals + Broad next-generation platform for security from the network
Slide 8: Broad and Diverse Customer Base
Broad and Diverse Customer Base GOVERNMENT & TELECOM, ENTERTAINMENT FINANCIAL TECHNOLOGY HEALTHCARE OTHER EDUCATION & MEDIA SERVICES 20% 14% 26% 8% 14% 18% ©© 2023 2023ePlus ePlusinc. inc. I 8
Slide 9: Comprehensive Solutions & Services
Comprehensive Solutions & Services SERVICES PROFESSIONAL SERVICES | MANAGED SERVICES ADVISORY & CONSULTING SERVICES STRATEGIC TECHNOLOGY STAFFING LIFECYCLE CX SOLUTIONS | SOFTWARE LICENSE OPTIMIZATION SECURITY SECURITY SOLUTIONS | SECURITY ADVISORY SOLUTIONS | SECURITY OPERATIONS & ANALYTICS FINANCI
Slide 10: Accelerated Adoption Of Strategic Solutions
Accelerated Adoption Of Strategic Solutions Recalibration of Business Strategies caused by: + Global Pandemic + Talent Shortage + Increased Regulatory & Compliance Requirements + Complex / Distributed Environments + Appeal of “As a Service” © 2023 ePlus inc. I 10
Slide 11: Supporting Digital Modernization
Supporting Digital Modernization Transformative technologies span the breadth of our solutions portfolio and provide customers with a solid but flexible foundation to pivot as needed. Refined over 30 years, our expertise and capabilities position us well to be a partner of choice as customer organiz
Slide 12: Cloud Focused Solutions
Cloud Focused Solutions Building Connected Workforces Through Agility and Modernization DATA MODERN CLOUD DATA CENTER CENTER Servers Advanced PS/MS Converged/HCI Storage Modern Data, Traditional Protection Backup Automation, Containers Basic PS/MS Hybrid Cloud Platforms EMS End-User Compute © 2023 e
Slide 13: ePlus Services: See the Forest and the Trees
ePlus Services: See the Forest and the Trees We bring deep and broad services expertise across thousands of customers and multiple industries to make the best decisions for your business and discover more from your technology. Strategize Architect Accelerate Optimize for more agility for better outc
Slide 14: Targeted M&A Strategy with Track Record of Success
Targeted M&A Strategy with Track Record of Success + April 2023 (Network Solutions + July 2022 + December 2020 + August 2019 Group, a business unit of CCI) + Texas and the South-Central + Upstate New York and the + Southern and Western Virginia + National provider of networking region Northeast serv
Slide 15: 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 – 67% GM 6 – 13% GM 16 – 20% GM 23 – 26% GM 30 – 32% GM GROSS MARGIN 1 INCREASING CUSTOMER VALUE AND VENDOR MARGIN
Slide 16: A Commitment to Corporate Social Responsibility
A Commitment to Corporate Social Responsibility © 2023 ePlus inc.
Slide 17: Who We Are
Who We Are Our unparalleled expertise has been refined over more than three decades of hands-on engagement and experience, helping customers successfully navigate unforeseen and unprecedented challenges while maximizing the return on their technology investments. More depth. More breadth. More persp
Slide 18: Elaine Marion, Chief Financial Officer
Elaine Marion Chief Financial Officer © 2023 ePlus inc. I 18
Slide 19: Strong Financial Results
Strong Financial Results FYE March 31 + 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 majority of our net sales are derived from our technol
Slide 20: Strong Financial Results
Strong Financial Results FYE March 31 + Service revenue includes professional services, managed services, and staffing services. + From FY19 to FY23, service revenue has increased at a compound annual rate of 15%. + Service revenue as a percentage of consolidated net sales grew from 10.9% in FY19 to
Slide 21: Strong Financial Results
Strong Financial Results FYE March 31 + Consolidated gross profit increased at a compounded annual rate of 12% from FY19 to FY23. Technology segment represented 92% of our total gross profit in FY23. + Consolidated gross margin has increased from 24.1% in FY19 to 25.0% in FY23. + Technology segment
Slide 22: Strong Financial Results
Strong Financial Results FYE March 31 + 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. + Non-GAAP EPS excluded other income (expense), shar
Slide 23: Strong Financial Results
Strong Financial Results FYE March 31 + 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. Interest on notes payable and depreciation expense pre
Slide 24: 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 25: Strong Balance Sheet
Strong Balance Sheet $ in millions Assets March 31, 2023 March 31, 2022 + $103 million in cash and equivalents Cash and equivalents $ 103 $ 155 Accounts receivable 560 479 + Financing portfolio of $174 million, Inventory 243 155 Financing investments 174 126 representing investments in leases and no
Slide 26: 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 … Q&A … Colla
Slide 27: Appendix
Appendix © 2023 ePlus inc. I 27
Slide 28: Non-GAAP Financial Information
Non-GAAP Financial Information $ in thousands, except per share information $ in thousands Year Ended March 31, 2023 2022 2021 2020 2019 Net ea rni ngs $ 119,356 $ 105,600 $ 74,397 $ 69,082 $ 63,192 Provi s i on for i ncome ta xes 43,618 41,284 32,509 26,877 23,038 Depreci a ti on a nd a morti za ti
Slide 29: Return on Invested Capital
Return on Invested Capital $ in thousands Year Ended March 31, 2023 2022 2021 2020 2019 Numerator Opera ti ng i ncome $ 166,162 $ 147,316 $ 106,335 $ 95,279 $ 79,534 Les s : Ta xes [1] (44,531) (41,396) (32,326) (26,678) (21,236) Net opera ti ng profi t a fter ta xes $ 121,631 $ 105,920 $ 74,009 $ 6
Slide 30: Kley Parkhurst, SVP ePlus inc.
Kley Parkhurst, SVP (703) 984-8150 investors@eplus.com ePlus inc. 13595 Dulles Technology Drive Herndon, VA 20171-3413 (703) 984-8400 / eplus.com 30