Insight Enterprises, Inc. · NASDAQ:NSIT

Insight Enterprises — Raymond James Technology Investors Conference 2019

28 slides from Insight Enterprises's conference presentation, Dec 9, 2019

  1. Slide 1: Insight Enterprises, Inc Company Overview

    Insight Enterprises, Inc Company Overview Insight Proprietary & Confidential. Do Not Copy or Distribute. © 2019 Insight Direct USA, Inc. All Rights Reserved. 1

  2. Slide 2: Disclosures

    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 statements about future trends in th

  3. Slide 3: Global Intelligent Technology Solutions provider that helps businesses run smarter

    Global Intelligent Technology SolutionsTM provider that helps businesses run smarter. We architect, design, implement and manage IT Solutions that enable digital readiness and drive business outcomes. Insight Proprietary & Confidential. Do Not Copy or Distribute. © 2019 Insight Direct USA, Inc. All

  4. Slide 4: Culture and Leadership is our Foundation

    Culture and Leadership is our Foundation Hunger Heart Harmony We’re driven by a deep We don’t think of We’re different in skill curiosity — to learn, to ourselves as individuals sets, perspectives and explore and to grow. but as teammates. We backgrounds but united Where others assume, we take care

  5. Slide 5: Track Record of Innovation

    Track Record of Innovation 1980s through mid 2000s Mid 2000s - 2016 2017 and Beyond Global Intelligent Technology Reseller IT services Solutions Provider Innovation Focus Areas Innovation Focus Areas Innovation Focus Areas GEO Footprint Expansion Advanced Networking Modern Workforce Solutions Soluti

  6. Slide 6: Insight at a Glance (Pre PCM)

    Insight at a Glance (Pre PCM) Profile Results Services Talent 30+ years $7.1 Billion 15% > 7,600 Evolving in 2018 Services Sales Teammates 2018 Net Sales dynamic industry 5 YR CAGR Worldwide 7% 5 YR CAGR 190 Countries 46% > 5,500 where clients are $237 Million 2018 Services GP to Client-facing 2018

  7. Slide 7: Insight + PCM | Strategic and Powerful Combination

    Insight + PCM | Strategic and Powerful Combination • Expands Insight’s position in the mid-market • Access to a large base of new clients • Extends Insight’s geographic footprint • Adds substantial sales and technical resources • Strengthens our position with our key partners • Adds more than $200M

  8. Slide 8: Insight + PCM | Global Scale, Skills and Solutions Drive Value

    Insight + PCM | Global Scale, Skills and Solutions Drive Value* Net Sales ($M)* Gross Profit ($M)* Gross Margin* $9,244 $1,327 14.4% $5,144 $7,080 $994 $699 14.0% 13.6% 2013 2018 2013 2018 2013 2018 > 11,000 > 8,000 > 4,500 Teammates Worldwide Client-facing Teammates Technical Resources * Proforma t

  9. Slide 9: PCM Integration Timeline

    PCM Integration Timeline Day 1 - 30 Day 31-120 Day 120 + • System integration plan • Brand migration • IT systems onboard • Integration complete • Leadership team • Team alignment • Common service delivery • $70 million of expected run rate platforms cost synergies by 2021 • Client / partner/ teamma

  10. Slide 10: Diverse, Loyal Base Presents Long-Term Growth Opportunity

    Diverse, Loyal Base Presents Long-Term Growth Opportunity  Deep, Long-standing Client Relationships  Opportunity to Accelerate Growth in Commercial Market 2018 Insight Sales Mix | Clients 2018 Proforma With PCM Public Commercial 13% 21% Public Commercial 13% Global* 15% 36% Global* 27% Enterprise

  11. Slide 11: Global Scale / Reach Sets us Apart

    Global Scale / Reach Sets us Apart Insight Footprint represents ~ 70% of Global IT Spending 25 sites 52 sites 10 sites Insight-delivered Partner-delivered Insight offices 21 Countries | Multi-Currency and Multi-Lingual Support Insight Proprietary & Confidential. Do Not Copy or Distribute. © 2019 Ins

  12. Slide 12: Entering the Next Computing Cycle; Centered on Data

    Entering the Next Computing Cycle; Centered on Data Computing growth drivers over time 1960–2030E Data Tens of billions of 1,000,000 units Mobile internet • IoT Billions of units • Artificial intelligence • AR/VR Devices/users (mm in log scale) Desktop internet • Automation 10,000 1B+ units/users PC

  13. Slide 13: Market Backdrop Provides Opportunity for Growth

    Market Backdrop Provides Opportunity for Growth Expanding IT Market1 Insight’s Market Share of Worldwide Solution Providers3 $4.3T Forecasted TAM by 2023 $3.7T TAM today $671B Insight market today Worldwide Indirect IT Spend 2018-2023 CAGR 4.8% 2 1. Gartner Market Databook, 3Q19 Update (September 20

  14. Slide 14: Gartner | Cloud Market Trends

    Gartner | Cloud Market Trends Public Cloud Market Growth1 Cloud Shift Proportion by Cloud Shift Category2 (cloud and non-cloud) 351 (Worldwide Billions $) 309 269 IaaS 233 200 Mgmt & Security Non-CLOUD 172 PaaS 141 SaaS 28% 24% 19% BPaaS 15% CLOUD 2017 2018 2019 2020 2021 2022 2023 2016 2018 2020 20

  15. Slide 15: Multi-Cloud World

    Multi-Cloud World Moving focus from data Private cloud centers to centers of data Public clouds Intelligent edge Insight Proprietary & Confidential. Do Not Copy or Distribute. © 2019 Insight Direct USA, Inc. All Rights Reserved. 15

  16. Slide 16: Our Solutions Align to Industry Trends and Drive Business Outcomes for our Clients

    Our Solutions Align to Industry Trends and Drive Business Outcomes for our Clients Manage Today Transform Tomorrow Clients Suppliers Supply Connected Workforce Cloud + Data Center Digital Innovation Chain Optimization Transformation Product- Outcome- focused based CapEx OpEx Insight Proprietary & Co

  17. Slide 17: High-Performance Culture with Deeply Engaged Teammates

    High-Performance Culture with Deeply Engaged Teammates #23 on Fortune’s Teammate Satisfaction Sales Rep Tenure > 3 Years ‘Best Workplaces in Technology’ +40pts 60% +40pts FORTUNE 100 ‘2018 Best Workplaces for Diversity’ 2013 V 2018 28.01 #11 21.10 Australia’s “Best Places to Work 2019” Sales per Tea

  18. Slide 18: Solutions Supported by Strong Partner Relationships

    Solutions Supported by Strong Partner Relationships Major Solution Cloud Emerging Insight Proprietary & Confidential. Do Not Copy or Distribute. © 2019 Insight Direct USA, Inc. All Rights Reserved. 18

  19. Slide 19: Enhance Client Experience and Drive Operational Efficiency

    Enhance Client Experience and Drive Operational Efficiency Scalable IT Systems Frictionless Client Experience SG&A Discipline ERP 5 to 2 76% of 43 web systems to 2 +60% Gross Profit 4 data centers to 2 400 bps of Transactions Delivered 2010 V 2018 IT Systems Electronically Over Last 5 Years 21.10 Se

  20. Slide 20: Our Strategic Assets Support Continued Growth

    Our Strategic Assets Support Continued Growth Strategic Assets Strategic Priorities Culture, People and Leadership • Continue to Innovate to capture share in high growth areas Innovation Led | Solution Area Expertise • Grow with solutions that drive business outcomes for clients Global Reach and Sca

  21. Slide 21: Disciplined Capital Allocation Aligned with Shareholder Interests

    Disciplined Capital Allocation Aligned with Shareholder Interests Scalable IT and service delivery platforms 1 Invest organically Digital Marketing and client facing tools Technical and sales talent Maintain modest leverage 2 Pay down debt Cultural / strategic / financial/ integration 3 Pursue strat

  22. Slide 22: Key 5-Year Imperatives to Deliver Value

    Key 5-Year Imperatives to Deliver Value 8% – 10% (CAGR) 5.0% – 5.5% 19% – 21% 50% – 52% Grow Sales Faster Expand EBITDA Optimize Return on Grow Services Gross than the Market Margin Invested Capital Profit as % of Total GP Value Creation for Insight Shareholders, Clients, Partners and Teammates Insi

  23. Slide 23: Appendix

    Appendix Insight Proprietary & Confidential. Do Not Copy or Distribute. © 2019 Insight Direct USA, Inc. All Rights Reserved. 23

  24. Slide 24: Reconciliation of GAAP to Non-GAAP Financial Measures

    Reconciliation of GAAP to Non-GAAP Financial Measures Twelve Months Ended December 31, US Dollar in $000s 2018 2013 Adjusted Consolidated Earnings from Operations: GAAP consolidated EFO $ 233,483 $ 121,237 Severance and restructuring expenses 3,424 12,740 Acquisition-related expenses 282 - Adjusted

  25. Slide 25: Reconciliation of GAAP to Non-GAAP Financial Measures

    Reconciliation of GAAP to Non-GAAP Financial Measures Twelve Months Ended December 31, US Dollar in $000s 2018 2013 Adjusted return on invested capital: GAAP consolidated EFO $ 233,483 $ 121,237 Severance and restructuring expenses 3,424 12,740 Acquisition-related expenses 282 - Adjusted non-GAAP co

  26. Slide 26: Reconciliation of GAAP to Non-GAAP Financial Measures

    Reconciliation of GAAP to Non-GAAP Financial Measures Twelve Months Ended December 31, US Dollar in $000s 2018 2013 Adjusted free cash flow: Net cash provided by (used in) operating activities $ 292,647 $ 76,066 Purchases of property and equipment (17,251) (19,024) Net (repayments) borrowings under

  27. Slide 27: Reconciliation of GAAP to Non-GAAP Financial Measures

    Reconciliation of GAAP to Non-GAAP Financial Measures Twelve Months Ended Trailing Twelve Months December 31, June 30, US Dollar in $000s 2018 2019 Adjusted EBITDAS: GAAP Net Earnings $ 163,677 $ 168,520 Depreciation and amortization of property and equipment 21,721 20,991 Amortization of intangible

  28. Slide 28: Reconciliation of GAAP to Non-GAAP Financial Measures

    Reconciliation of GAAP to Non-GAAP Financial Measures PCM Adjusted EBITDA Trailing Twelve Months June 30, US Dollar in $000s 2019 EBITDAS (a) Consolidated operating profit $ 42,605 Add: Consolidated depreciation expense 10,192 Consolidated amortization expense 2,428 Equity income from unconsolidated

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