Eplus Inc. · NASDAQ:PLUS
Eplus — Investor Presentation (September 2017)
26 slides from Eplus's investor presentation, September 2017
Slide 1: Investor Presentation
Investor Presentation © 2017 ePlus inc. I 1
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: Kley Parkhurst
Kley Parkhurst Senior Vice President © 2017 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 solutions + Technology partners include Cisco, Dell/EMC, HPE, Juniper, NetApp and VMware + FY17 net sales: $1.3 billion 8% CAGR FY13-FY17 + FY17 non-GAAP earnings per share: $3.74 * 14% CAGR on N
Slide 5: Experienced Leadership Team, Strong Alignment of Interest
Experienced Phil Norton Elaine Marion Darren Raiguel Leadership Team, Executive Chairman 22 Years with ePlus Chief Financial Officer 18 Years with ePlus Executive Vice President, Technology Sales Strong Alignment + 45 Years of Experience + 25 Years of Experience 19 Years with ePlus + 24 Years of Exp
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 17 – 23% GM 29 – 32% GM GROSS MARGIN 1 INCREASING CUSTOMER VALUE AND VENDOR MARGIN
Slide 7: International Footprint
International Footprint means we are never far away. REGIONAL OFFICES SALES OFFICES : MANAGED SERVICES CENTERS 40+ locations serving the U.S., Europe, and Asia-Pac Four Managed Services Centers / Six Integration Centers throughout the U.S. 500+ technical & support resources certified by the top IT m
Slide 8: Targeted M&A Strategy with Track Record of Success
Targeted M&A Strategy with Track Record of Success + September 2017 (n.d.) + May 2017 ($10.0 million) + December 2016 ($13.1 million) + December 2015 ($16.6 million) division of CCI + Chicago and Indianapolis data + Cloud-based services, solutions + Expand security offerings centers and DevOps + Min
Slide 9: Why ePlus?
Why ePlus? We have proven success in helping businesses optimally select, implement, and operate the IT solutions they require. Cloud, with a keen Security, through a holistic Digital Infrastructure, via the Professional and managed understanding of today’s approach to securing data, design and depl
Slide 10: We're experts in the technologies that our clients rely on
We’re experts in the technologies that our clients rely on. Cloud CLOUD SECURITY Hybrid + Strategy and Risk Management + Hyper-Converged + Architecture and Design + Orchestration + Managed Security Services + Automation and Management + Application Portfolio Rationalization + Managed Services + Hybr
Slide 11: Professional and Managed Services
Professional Professional and and Managed Managed Services Services We employ an assessment-led, consultative approach that focuses on We employ an assessment-led, consultative approach that focuses on business outcomes. business outcomes. Highlights Key Services New: Training Expanded services head
Slide 12: Independent Provider with Deep Strategic Relationships
Independent Provider with Deep Strategic Relationships SELECTED STRATEGIC PARTNERS + COMPLEMENTED BY ADDITIONAL EMERGING RELATIONSHIPS VENDORS + Excellent channel partner for ePlus, representing 47% of technology sales 1 + Networking, security, converged infrastructure + ePlus engineers are trained
Slide 13: Customer Verticals
STATE & LOCAL GOVERNMENT & EDUCATIONAL INSTITUTIONS TECHNOLOGY HEALTHCARE FINANCIAL SERVICES TELECOM, MEDIA & ENTERTAINMENT OTHER © 2017 ePlus inc. I 13
Slide 14: Broad and Diverse Customer Base
Broad and Diverse Customer Base Net Sales TTM 1QFY18 1 + Focused on enterprise and middle-market customers + > 3,200 existing customers (As of 3/31/2017) Other Technology 17% 25% + A large technology customer in excess of 10% of net sales in FY17 Healthcare 11% + Broad-based services capabilities an
Slide 15: Competitive Advantages: Why ePlus
Competitive Advantages: Why ePlus + Capability to help clients better understand their evolving business environment. + Consultative expertise and ability to engineer transformative technology solutions that drive business outcomes. + Process: Up-front assessments and envisioning, followed by design
Slide 16: Jim Belger
Jim Belger Vice President and Controller © 2017 ePlus inc. I 16
Slide 17: Strong Financial Results: Net Sales and Adjusted Gross Billings
Strong Financial Results FYE March 31 / Trailing twelve months ended June 30, unaudited Net Sales and Adjusted Gross Billings * ($mm) + Operations are conducted through two segments. The technology segment sells $2,000 $1,860 information technology products, software and $1,776 $1,622 services, whil
Slide 18: Strong Financial Results: Gross Profit and Gross Margin
Strong Financial Results FYE March 31 / Trailing twelve months ended June 30, unaudited Gross Profit and Gross Margin, Product and Services ($mm) + Consolidated gross profit increased at a compounded annual rate of 10% from FY13 to $400 25.0% FY17, driven by our technology segment, which $310 repres
Slide 19: Strong Financial Results: Net Earnings and EPS
Strong Financial Results FYE March 31 / Trailing twelve months ended June 30, unaudited Net Earnings ($mm) + From FY13 to FY17, net earnings increased at a $60 compounded annual rate of 10% as a result of $50 focusing on revenue growth and controlling overhead expenses. $40 $51 $53 $46 $45 $47 + FY1
Slide 20: Strong Financial Results: Adjusted EBITDA
Strong Financial Results FYE March 31 / Trailing twelve months ended June 30, unaudited Adjusted EBITDA * ($mm) + Adjusted EBITDA represents net earnings before interest expense, depreciation and amortization, provision for income taxes, and other income. $100 $93 $96 7.5% Interest on notes payable
Slide 21: Growing Productivity While Strategically Expanding Workforce
Growing Productivity While Strategically Expanding Workforce Employee Headcount Growth by Function Adj. Gross Billings Per Sales & Marketing Employee ($mm) 1,400 $4.0 1,173 $3.6 7 $3.5 $3.3 1,200 73 890 $3.0 1,000 200 9 $2.5 77 800 184 400 $2.0 FY13 FY17 600 264 Adj. Gross Billings Per Employee ($mm
Slide 22: Strong Balance Sheet
Strong Balance Sheet $ in millions + $98 million in cash and equivalents Assets June 30, 2017 March 31, 2017 Ca s h a nd equi va l ents $ 98 $ 110 + $250 million financing facility with Wells Accounts recei va bl e 302 291 Inventory 91 93 Fargo Commercial Distribution Finance, LLC Fi na nci ng i nve
Slide 23: Appendix
™ Appendix ePlus. Where Technology Means More.® © 2017 ePlus inc. I 23
Slide 24: Non-GAAP Financial Information
Non-GAAP Financial Information $ in thousands, except per share information Year Ended March 31, TTM Ended June 30, 2017 2016 2015 2014 2013 2017 2016 Sa l es of product a nd s ervi ces , a s reported $ 1,290,228 $ 1,163,337 $ 1,100,884 $ 1,013,374 $ 936,228 $ 1,357,127 $ 1,193,822 Cos ts i ncurred
Slide 25: Return on Invested Capital
Return on Invested Capital $ in thousands Year Ended March 31, TTM Ended June 30, 2017 2016 2015 2014 2013 2017 2016 Numerator Opera ting i ncome $ 85,732 $ 75,751 $ 70,710 $ 60,098 $ 58,745 $ 88,753 $ 78,171 Les s : Ta xes [1] (34,293) (30,300) (28,284) (24,039) (23,498) (35,501) (31,268) Net opera
Slide 26: Investor Relations
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 ©2017 ePlus inc. All rights reserved. ePlus, the ePlus logo, and all referenced product names are trademarks or registered trademarks