Slide 1: Insight Enterprises, Inc. Second Quarter 2018 Earnings Conference Call and Webcast
Insight Enterprises, Inc. Second Quarter 2018 Earnings Conference Call and Webcast Insight Presentation Insight’s Tagline Would Go Here Insight Proprietary & Confidential. Do Not Copy or Distribute. © 2017 Insight Direct USA, Inc. All Rights Reserved. 1
Slide 2: Agenda
Agenda Opening comments CEO commentary • Second Quarter 2018 Results • Consolidated Financials • ROIC and Free Cash Flow • Cardinal Acquisition Update CFO commentary • North America Financial Results • EMEA Financial Results • APAC Financial Results • Cash Flows and Cash Conversion Cycle Closing com
Slide 3: 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 the
Slide 4: Consolidated Financial Results
Consolidated Financial Results Three Months Ended June 30, Six Months Ended June 30, US Dollar in $M 2018 2017 change 2018 2017 change Insight Enterprises, Inc. Net sales: Products $ 1,619.8 $ 1,505.5 8% $ 3,201.9 $ 2,827.5 13% Services 217.1 178.6 22% 397.9 334.1 19% Total net sales 1,836.9 1,684.1
Slide 5: ROIC and Free Cash Flow
ROIC and Free Cash Flow TTM Quarter Ended June 30, 2018 US Dollar in $Ms 2018 2017 change Return on invested capital - Adjusted Adjusted Earnings from operations (1 ) (net $ 158.5 $ 116.6 $ 41.9 of tax)(2 ) Average Equity (avg 5 quarters) 848.7 723.5 125.2 Average Debt (avg 5 quarters) 317.5 209.7 1
Slide 6: Cardinal Acquisition Update
Cardinal Acquisition Update • Expertise in mobile app development, IoT, and cloud enabled BI • 450 technical sales and service delivery teammates • Expect to acquire for ~$79M (net of cash acquired, subject to a final working capital adjustment) Insight Presentation Insight Proprietary & Confidentia
Slide 7: Digital Innovation - Transportation
Digital Innovation - Transportation Drone rail inspection program Problem • Client wanted to improve rail safety by automating detection and alerts of track issues utilizing their BVLOS (beyond visual line of sight) drone program Solution • Created a near-real-time visual imagery anomaly detection s
Slide 8: CFO Commentary
CFO Commentary • North America Financial Results • EMEA Financial Results • APAC Financial Results • Cash Flows and Cash Conversion Cycle Insight Presentation Insight Proprietary & Confidential. Do Not Copy or Distribute. © 2017 Insight Direct USA, Inc. All Rights Reserved. 8
Slide 9: Insight North America | Financial Results
Insight North America | Financial Results Three Months Ended June 30, Six Months Ended June 30, US Dollar in $M 2018 2017 change 2018 2017 change North America Net sales: Products $ 1,206.4 $ 1,145.1 5% $ 2,370.2 $ 2,129.9 11% Services 163.0 136.3 20% 306.6 262.4 17% Total net sales 1,369.4 1,281.4
Slide 10: Insight EMEA | Financial Results
Insight EMEA | Financial Results Three Months Ended June 30, Six Months Ended June 30, US Dollar in $M 2018 2017 change 2018 2017 change EMEA Net sales: Products $ 364.5 $ 314.1 16% $ 736.4 $ 622.3 18% Services 41.8 31.9 31% 70.3 54.1 30% Total net sales 406.3 346.0 17% 806.7 676.4 19% Gross profit
Slide 11: Insight APAC | Financial Results
Insight APAC | Financial Results Three Months Ended June 30, Six Months Ended June 30, US Dollar in $M 2018 2017 change 2018 2017 change APAC Net sales: Products $ 48.9 $ 46.4 6% $ 95.3 $ 75.3 27% Services 12.3 10.3 19% 21.0 17.6 19% Total net sales 61.2 56.7 8% 116.3 92.9 25% Gross profit 11.9 12.8
Slide 12: Cash Flows & Cash Cycle
Cash Flows & Cash Cycle Six Months Ended June 30, US Dollar in $Ms 2018 2017 change Statement of cash flows Net cash provided by operating activities $ 351.0 $ (99.3) $ 450.3 Acquisition, net of cash acquired - (180.9) 180.9 Purchases of property and equipment (10.6) (10.3) (0.3) Other - - - Net cas
Slide 13: Closing Comments – 2018 Outlook
Closing Comments – 2018 Outlook • 2018 sales expected to grow in the high-single to low double digit range • Adjusted diluted earnings per share are expected to be between $4.50 and $4.60 per share for the full year • Effective tax rate expected between 26% and 27% for the balance of the year • Cash
Slide 14: Appendix – Reconciliation of GAAP to Non-GAAP Financial Measures
Appendix – Reconciliation of GAAP to Non-GAAP Financial Measures Insight Presentation Insight Proprietary & Confidential. Do Not Copy or Distribute. © 2017 Insight Direct USA, Inc. All Rights Reserved. 14
Slide 15: Appendix – Reconciliation of GAAP to Non-GAAP Financial Measures (continued)
Appendix – Reconciliation of GAAP to Non-GAAP Financial Measures (continued) Insight Presentation Insight Proprietary & Confidential. Do Not Copy or Distribute. © 2017 Insight Direct USA, Inc. All Rights Reserved. 15
Slide 16: Appendix – Reconciliation of GAAP to Non-GAAP Financial Measures (continued)
Appendix – Reconciliation of GAAP to Non-GAAP Financial Measures (continued) Insight Presentation Insight Proprietary & Confidential. Do Not Copy or Distribute. © 2017 Insight Direct USA, Inc. All Rights Reserved. 16