Eplus Inc. · NASDAQ:PLUS
Eplus — Canaccord Genuity Growth Conference 2014
29 slides from Eplus's conference presentation, August 2014
Slide 1: ePlus Investor Presentation
ePlus Investor Presentation Canaccord Genuity EXCELLENCE THROUGH EXPERIENCE Growth Conference August 2014 © ePlus inc. Confidential and Proprietary. E XCELLENCE THROUGH E XPERIENCE
Slide 2: Safe Harbor Statement
Safe Harbor Statement Statements in this presentation, which are not historical facts, may be deemed to be "forward‐looking statements.” Actual and anticipated future results may vary due to certain risks and uncertainties, including, without limitation; possible adverse effects resulting from the r
Slide 3: Phil Norton, Chairman, CEO and President
Phil Norton Chairman, CEO and President EXCELLENCE THROUGH EXPERIENCE 3 © ePlus inc. Confidential and Proprietary. E XCELLENCE THROUGH E XPERIENCE
Slide 4: ePlus at a Glance
ePlus at a Glance + Leading provider of technology solutions focused on cloud, data center, security, networking and collaboration solutions + Technology partners include Cisco, EMC, HP, NetApp and VMware + FY14 revenue: $1.1 billion 18% CAGR FY10‐FY14 + FY 14 earnings per share: $4.37 31% CAGR
Slide 5: Experienced Leadership Team with Strong Alignment of Interest
Experienced Leadership Team with Strong Alignment of Interest + Stable senior management team; compensation aligned with growth objectives Phil Norton Mark Marron Elaine Marion Kley Parkhurst Chairman, Chief Executive Officer Chief Operating Officer and Chief Financial Officer Senior Vice President,
Slide 6: ePlus is Well Positioned in the Market
ePlus is Well Positioned in the Market + Broad product/service offering + Deep technical expertise + Meaningful vendor relationships Select + Top vendor certifications large‐scale + National U.S. footprint IT platforms Widening gap } ‐ Narrower solutions focus Small, regional VARs ‐ Regionally orien
Slide 7: Investment Highlights
Investment Highlights + Increasingly complex IT environment drives demand for sophisticated, broad‐based solutions + Differentiated business model serving entire IT lifecycle, with focus on high‐end products and services + Established relationships with key and emerging vendors + Diversified custome
Slide 8: Mark Marron, Chief Operating Officer
Mark Marron Chief Operating Officer EXCELLENCE THROUGH EXPERIENCE 8 © ePlus inc. Confidential and Proprietary. E XCELLENCE THROUGH E XPERIENCE
Slide 9: IT Market Needs Have Become Increasingly Complex
IT Market Needs Have Become Increasingly Complex 2000s Today Cloud Datacenter Security Software & Hardware Resale Collaboration Mobility BYOD Managed Services Networking 2013 Top 10 IT Budget Priorities 1 30% 27% 26% 25% 19% 20% 17% 17% 16% 15% 15% 14% 10% 0% Cloud Virtualization IT Mobile Software
Slide 10: Large TAM with Solid Fundamentals
Large TAM with Solid Fundamentals Expectations for U.S. IT Spending 1 Expected Growth for Complex IT Solutions in the U.S. 2 ($ in billions) ($ in billions) Market 2012 2017E CAGR Mobility $2.4 $11.7 37% Cloud $19.1 $49.3 21% Security $24.6 $36.0 8% Managed $40.8 $53.7 6% Services Virtualization $2.
Slide 11: Expanding Footprint and Capabilities
Expanding Footprint and Capabilities + 384 sales resources + 302 engineering professionals + Serving middle‐market clients to large multinational enterprises + Customer‐centric project management + Ability to deploy complex solutions globally + Regional Offices ★Sales Offices ★Managed Service Center
Slide 12: End-to-End Suite of Customized Solutions
End‐to‐End Suite of Customized Solutions + Cloud Computing + Flexible Payment Solutions + Virtual Desktop Infrastructure / VXI + Operating Leases + Server Consolidation / Virtualization + Capital Leases + Storage & Backup + Entire Asset Acquisition Process + Data Security + Trade‐In Programs + Unifi
Slide 13: Expanding Professional and Managed Services
Expanding Professional and Managed Services + Hired Dan Farrell as Senior Vice President of National Professional Services in 2010 Expansion Highlights (since 2010) + Expanded Services headcount by 93% + Grew managed service center locations from 1 to 3 + Consistent growth in services revenue Key Se
Slide 14: Independent Provider with Deep Strategic Relationships
Independent Provider with Deep Strategic Relationships Selected Strategic Partners Complemented by Additional Relationships + Top vendor for ePlus, representing 48% of technology sales 1 + Networking, security, converged infrastructure + ePlus engineers are trained in 26 different Cisco product line
Slide 15: Deep Expertise and Experience with Emerging Vendors
Deep Expertise and Experience with Emerging Vendors Selected Emerging Vendors Featured Vendors ($ in thousands, FYE 3/31) Storage $5,085 Vendor A $285 Security FY2012 FY2014 $16,003 Big Data Vendor B $1,004 FY2012 FY2014 Network $2,160 Vendor C $146 Servers FY2012 FY2014 Well‐positioned for continue
Slide 16: Broad and Diverse Customer Base
Broad and Diverse Customer Base FY14 Revenue + Focused on enterprise and middle‐market customers Other 11% Technology + > 2,800 existing customers 21% Financial + Only one 10% (of revenues) customer in FY2014 Services 11% SLED + Broad‐based services capabilities and multi‐ 20% Healthcare Telecom, ve
Slide 17: Select clients
Select clients State & Local Government Telecom, Media & Technology and Education Entertainment Financial Services Healthcare Other 17 © ePlus inc. Confidential and Proprietary. E XCELLENCE THROUGH E XPERIENCE
Slide 18: Multiple Vectors of Growth
Multiple Vectors of Growth + Continue to consolidate fragmented industry Pursue + Focus on expanding customer base, geographic Strategic coverage and vendor relationships Acquisitions + Build out national footprint + Continue to hire and retain engineering talent Expand Professional + Continue to gr
Slide 19: Elaine Marion, Chief Financial Officer
Elaine Marion Chief Financial Officer EXCELLENCE THROUGH EXPERIENCE 19 © ePlus inc. Confidential and Proprietary. E XCELLENCE THROUGH E XPERIENCE
Slide 20: Impressive Financial Results
Impressive Financial Results ($ in millions, except per share data, FYE 3/31) Revenue Gross Profit $983 $1,057 $1,000 $250 $217 50% $826 $205 $800 $719 $200 $172 40% $157 $600 $551 $150 $129 30% $100 20% $400 17.8% 18.0% 18.3% $50 17.7% 17.9% 10% $200 $0 0% $0 FY2010 FY2011 FY2012 FY2013 FY2014 FY20
Slide 21: Financial Contribution, by Segment
Financial Contribution, by Segment ($ in millions, FYE 3/31) Revenue by Segment Pre‐Tax Earnings by Segment 21 © ePlus inc. Confidential and Proprietary. E XCELLENCE THROUGH E XPERIENCE
Slide 22: Positive comparisons in 1Q15
Positive comparisons in 1Q15 ($ in millions, except per share data FYE 3/31) Revenue Gross Profit $275.0 $272.3 $270.0 $8.9 $265.0 $259.3 $260.0 Financing $255.0 $10.8 $250.0 $263.4 Technology $245.0 $248.5 $240.0 $235.0 1Q14 1Q15 Operating Income Consolidated Earnings Per Share $16.0 $14.7 $1.40 $1
Slide 23: Growing Productivity While Strategically Expanding Workforce
Growing Productivity While Strategically Expanding Workforce ($ in millions, FYE 3/31) Employee Headcount Growth by Function Revenue per Sales & Marketing Employee +13% +58% Revenue per Employee Note: Excludes part time employees 23 © ePlus inc. Confidential and Proprietary. E XCELLENCE THROUGH E XP
Slide 24: Strong Balance Sheet
Strong Balance Sheet ($ in millions) Assets 6/30/2014 3/31/2014 + $67 million in cash and equivalents Cash and equivalents $67 $80 + $225 million financing facility with Accounts receivable 207 243 GE Commercial Distribution Inventory 30 23 Finance Financing investments 158 144 + Financing portfolio
Slide 25: Phil Norton, Chairman, CEO and President
Phil Norton Chairman, CEO and President EXCELLENCE THROUGH EXPERIENCE 25 © ePlus inc. Confidential and Proprietary. E XCELLENCE THROUGH E XPERIENCE
Slide 26: Investment Highlights
Investment Highlights + Focused on growing service revenues to maintain and expand margins + Investments in key engineering and sales personnel to drive growth in excess of market + Growing geographic footprint offers entry into new regional markets + Targeting new and existing client bases for reve
Slide 27: Appendix
Appendix EXCELLENCE THROUGH EXPERIENCE 27 © ePlus inc. Confidential and Proprietary. E XCELLENCE THROUGH E XPERIENCE
Slide 28: Reconciliation of Non-GAAP Information
Reconciliation of Non‐GAAP Information ePlus inc. AND SUBSIDIARIES RECONCILIATION OF NON‐GAAP INFORMATION Three Months Ended June 30, 2014 2013 [2] (in thousands, except per share amount) GAAP earnings before provision for income taxes as reported $16,176 $13,353 Less: Other income 1,434 ‐ Non‐GAAP
Slide 29: Investor Relations Contact Information
Investor Relations Contact Information Kley Parkhurst, SVP ePlus inc. (703) 984‐8150 investors@eplus.com ePlus inc. 13595 Dulles Technology Drive Herndon, VA 20171‐3413 (703) 984‐8400 www.eplus.com 29 © ePlus inc. Confidential and Proprietary. E XCELLENCE THROUGH E XPERIENCE