Insight Enterprises, Inc. · NASDAQ:NSIT
Insight Enterprises — Investor Day (October 2019)
49 slides from Insight Enterprises's investor day presentation, Oct 16, 2019
Slide 1: Insight Enterprises, Inc 2019 Investor Day
Insight Enterprises, Inc 2019 Investor Day Exhibit 99.1
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 the
Slide 3: Agenda
Agenda 9:00 A.M. Welcome Helen Johnson – SVP Finance, CFO - North America 9:05 A.M. Insight Overview & Growth Strategy Ken Lamneck – Chief Executive Officer 9:40 A.M. North America Overview Steve Dodenhoff – President, Insight North America 9:55 A.M. EMEA Overview Wolfgang Ebermann – President, Insi
Slide 4: Insight 2019 Investor Day
Insight’ Insight 2019 Investor Day
Slide 5: Global Intelligent Technology Solutions provider
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.
Slide 6: Track Record of Innovation
Innovation Focus Areas GEO Footprint Expansion Hardware Lifecycle Services Distribution and Integration Labs Software Licensing Solutions Innovation Focus Areas Advanced Networking Solutions Enterprise Software Integration Services GEO and Category Expansion Entry to Cloud and Digital Solutions Inno
Slide 7: Insight at a Glance (Pre PCM)
Profile $7.1 Billion 2018 Net Sales 7% 5 YR CAGR 30+ years Evolving in dynamic industry > 5,500 Client-facing Teammates > 7,600 Teammates Worldwide 18% 2018 Cloud GP to Total GP 46% 2018 Services GP to Total GP $237 Million 2018 Adjusted EFO* 12% 5 YR CAGR No. 430 2019 Fortune 500 > 3,000 Technical
Slide 8: 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 in services net sales Significant earnings accretion through co
Slide 9: Insight + PCM | Global Scale, Skills and Solutions Drive Value
Insight + PCM | Global Scale, Skills and Solutions Drive Value* * Proforma to includes PCM for Fiscal year ended December 31, 2018 > 8,000 Client-facing Teammates > 11,000 Teammates Worldwide > 4,500 Technical Resources Gross Margin* $994 Gross Profit ($M)* Net Sales ($M)* 14.0% $7,080
Slide 10: PCM Integration Timeline
System integration plan Leadership team Client / partner/ teammate communications Day 120 + Day 1 - 30 Day 31-120 Integration complete $70 million of expected run rate cost synergies by 2021 Brand migration Team alignment Market engagement IT systems onboard Common service delivery platforms Ecommer
Slide 11: Entering the Next Computing Cycle; Centered on Data
Computing growth drivers over time 1960–2030E Devices/users (mm in log scale) 1 100 10,000 1,000,000 19601970198019902000201020202030 Mainframe 1M+ units Minicomputer 10M+ units PC 100M+ units Desktop internet 1B+ units/users Mobile internet Billions of units Data Tens of billions of units IoT Artif
Slide 12: Market Backdrop Provides Opportunity for Growth
1. Gartner Market Databook, 3Q19 Update (September 2019) 2. Insight’s 2019 Internal analysis of Worldwide Market-Indirect Spend 3. 2019 Solution Provider 500 List, company reports and Insight internal analysis. Includes results of NSIT, CDW, Connection, ePlus, Perficient, Presidio, SHI, Softchoice,
Slide 13: Gartner | Cloud Market Trends
351 309 269 233 200 172 141 IaaS 23% PaaS 27% SaaS 15% 2017 – 2023 CAGR Non-CLOUD Cloud Shift Proportion by Cloud Shift Category2 (cloud and non-cloud) Forecast: Public Cloud Services Worldwide, 2017-2023, 2Q19 Update, August 2019 Gartner, Market Insight: Cloud Shift 2018-2022, August 2018. Gartner
Slide 14: Multi-Cloud World
Multi-Cloud World Private cloud Public clouds Intelligent edge Moving focus from data centers to centers of data
Slide 15: Managed Services Evolution
Managed Services Evolution Managed Services Lead in Cloud IT Services In which 3 Cloud-related IT Services is your organization investing the MOST? Percentage of Respondents, Sum of Top-3 Ranked Source: Gartner, Tech Growth and Innovation Conference, How Global Cloud Adoption Signals Future Opportun
Slide 16: Well Positioned to Address Industry Megatrends
Cloud Artificial intelligence Internet of Things (IoT) Security Managed services Well Positioned to Address Industry Megatrends
Slide 17: Global Strategic Assets are a Platform for Growth
Diverse and Loyal Client and Partner Relationships Operational Rigor and Financial Health Clients & Partners Discipline Culture, People and Leadership Culture Innovation Led | Solution Area Expertise Innovation Global Reach and Scale Global Strategic Assets are a Platform for Growth
Slide 18: Culture and Leadership is our Foundation
Culture and Leadership is our Foundation Hunger We’re driven by a deep curiosity — to learn, to explore and to grow. Where others assume, we question, and where others stop, we’re just getting started. Heart We don’t think of ourselves as individuals but as teammates. We take care of each other, our
Slide 19: Leadership Commitments
Leadership Commitments Culture Create clarity. Inspire people. Demonstrate thought leadership. Deliver results. Define a clear vision for your team and own our culture. Simplify the complex and ambiguous. Engage in frequent, two-way communication. Empower through energizing leadership. Recruit, hire
Slide 20: High-Performance Culture with Deeply Engaged Teammates
28.01 21.10 2013 V 2018 +40pts Teammate Satisfaction +20% Gross Profit per Teammate* 2013 V 2018 +33% Sales per Teammate* 2013 V 2018 +40pts Sales Rep Tenure > 3 Years 60% #23 on Fortune’s ‘Best Workplaces in Technology’ FORTUNE 100 ‘2018 Best Workplaces for Diversity’ #11 Australia’s “Best Places t
Slide 21: Our Solutions Align to Industry Trends and Drive Business Outcomes
Our Solutions Align to Industry Trends and Drive Business Outcomes for our Clients Product-focused Suppliers Outcome-based Clients Supply Chain Optimization Connected Workforce Cloud + Data Center Transformation Digital Innovation CapEx OpEx Manage Today Transform Tomorrow Innovation
Slide 22: Insight Innovation in Action
Insight Innovation in Action Recognized on 2019 Gartner Magic Quadrant™ for Managed Workplace Services, North America (third year in a row) Gartner Market Guide for Managed IoT Services Gartner Market Guide Microsoft Office 365 Implementation and Support Services, Worldwide Top 5 Market Share Positi
Slide 23: Global Scale / Reach Sets us Apart
Global Scale / Reach Sets us Apart Insight-delivered Partner-delivered Insight offices Insight Footprint represents ~ 70% of Global IT Spending 52 sites 10 sites 25 sites 21 Countries | Multi-Currency and Multi-Lingual Support Global
Slide 24: Diverse, Loyal Base Presents Long-Term Growth Opportunity
Diverse, Loyal Base Presents Long-Term Growth Opportunity Opportunity to Accelerate Growth in Commercial Market Deep, Long-standing Client Relationships * Global represents a subset of clients, primarily Enterprise, doing business with Insight across multiple geographies Clients & Partners Global* 2
Slide 25: Solutions Supported by Strong Partner Relationships
Solutions Supported by Strong Partner Relationships Major Solution Cloud Emerging Clients & Partners
Slide 26: Enhance Client Experience and Drive Operational Efficiency
21.10 Enhance Client Experience and Drive Operational Efficiency 2010 V 2018 IT Systems ERP 5 to 2 43 web systems to 2 4 data centers to 2 Scalable IT Systems Cloud Marketplace ServiceNow Managed Services Service Delivery Platforms ERP System Consolidation Discipline of Transactions Delivered Electr
Slide 27: Our Financial Health Allows for Strategic Capital Allocation
Our Financial Health Allows for Strategic Capital Allocation Cumulative Share Repurchases $58M $300M ~ 11.5 million Shares Repurchased M&A Investment Organic Investment Sales and Technical Coverage Common ERP Systems Services Delivery Platforms Cloud and Ecommerce Engine Digital Marketing Stack and
Slide 28: Our Strategic Assets Support Continued Growth
Our Strategic Assets Support Continued Growth Grow with solutions that drive business outcomes for clients Continue to Innovate to capture share in high growth areas Expand and Scale in strategic clients and markets Optimize client experience and execution through operational excellence Strategic Pr
Slide 29: Key Imperatives to Deliver Long-Term Value
Key Imperatives to Deliver Long-Term Value Expand EBITDA Margin Optimize Return on Invested Capital Grow Services Gross Profit as % of Total GP Market Leader as Global Intelligent Technology Solution Provider Measures Grow Sales Faster than the Market
Slide 30: North America
North America Steve Dodenhoff – President, Insight North America
Slide 31: North America Business Overview
North America Business Overview 2018 Net Sales $5.4 Billion > 5,500 Teammates | Broad National Footprint | United States 95% Canada 5% Cloud 11% 2018 Gross Profit Mix 2018 Sales Mix - Client 2018 GEO Sales Mix Global* 34% * Global represents a subset of clients, primarily Enterprise, doing business
Slide 32: North America Strategic Direction
North America Strategic Direction From To Product Focus Solution Focus Customer Segment GTM Solution Area GTM Services Attach Services Lead Transaction Sale Recurring Sale OEM Sell Through OEM Ecosystem Sell With
Slide 33: North America Business Overview: The Last Five Years
North America Business Overview The Last Five Years 5-Year Results Results Net Sales 9% CAGR | Organic growth 7% CAGR Adjusted EFO* 11% CAGR Innovation Solution Area Capabilities Expansion Insight Services Sales 18% CAGR Cloud GP 11% of Total GP Culture > 9,500 Teammates (with PCM) NPS +40 Pts Great
Slide 34: Digital Innovation Client Needs
Digital Innovation Client Needs | Insight Intelligent Technology Index 59% of IT decision-makers globally say their IT supply chain is “very or extremely optimized.” Yet only 18% have fully automated procurement processes. 73% of enterprises consume bundled products and services, and even more (86%)
Slide 35: Solution Areas in North America
Solution Areas in North America Digital Innovation Supply Chain Optimization Connected Workforce Cloud + Data Center Transformation Manage Today Transform Tomorrow
Slide 36: Our Priorities are Aligned to Drive Growth
Our Priorities are Aligned to Drive Growth Best Places to Work Initiatives Grow through Innovation and in core solution areas Optimize growth in new scale and opportunity in the commercial market Continue focus on Global, Enterprise and Public Sector clients Operational Excellence Ecommerce and Auto
Slide 37: EMEA Overview
EMEA Overview Wolfgang Ebermann – President, Insight EMEA
Slide 38: EMEA Business Overview
EMEA Business Overview > 1,600 Teammates | 14 Countries | 25 Sites 2018 Net Sales $1.5 Billion Cloud 37% 2018 Gross Profit Mix 2018 Sales Mix by Country
Slide 39: EMEA Business Overview: Sales Mix
EMEA Business Overview 2018 Net Sales $1.5 Billion 2018 Sales Mix – Client As reported * Global designation represents a subset of Enterprise clients doing business with Insight across multiple geographies. Corporate designation represents a subset of Enterprise clients 2018 Sales Mix Subset Descrip
Slide 40: EMEA Intelligent Technology Index
EMEA Intelligent Technology Index ~67% of IT professionals strongly agree or somewhat agree that IT is struggling to balance the dual responsibilities of transformational projects and managing core operations. ~42% of IT professionals consider Cloud one of the most critical technologies for their di
Slide 41: Solution Areas in EMEA
Solution Areas in EMEA Digital Innovation Supply Chain Optimization Connected Workforce Cloud + Data Center Transformation Positioned to help IT manage the Dual Responsibility: Core IT and Lead Digital Innovation Manage Today Transform Tomorrow
Slide 42: EMEA Business Overview: The Last Five Years
EMEA Business Overview The Last Five Years 5-Year Results Business Model Transformation: Prioritzed Cloud and Services GTM Model Design: 4 Solution Areas Operational Excellence Focus: Digitalisation of own Business Client Segmentation Balance and Target Market Share Gain M&A : Cloud Service Provider
Slide 43: Our Priorities are Aligned to Drive Growth
Our Priorities are Aligned to Drive Growth Strategic Priorities Recruit and Invest in People to be recognized as a Best Place to Work Grow organically End markets | Corporate and Commercial clients Solution Areas and Innovation | Cloud and Managed Services Accelerate through M&A | Solutions Operatio
Slide 44: APAC Overview
APAC Overview Mike Morgan – VP, General Manager, Insight Asia Pacific
Slide 45: APAC Business Overview
APAC Business Overview >350 Teammates | 5 Countries | 10 Sites 2018 Net Sales $187 Million Cloud 39% Cloud 39% 2018 Gross Profit Mix 2018 Sales Mix - Client 2018 Sales Mix by Country Global* 21% * Global represents a subset of clients, primarily Enterprise, doing business with Insight across multipl
Slide 46: Solution Areas in APAC
Solution Areas in APAC Digital Innovation Supply Chain Optimization Connected Workforce Cloud + Data Center Transformation Cloud + Data Center Transformation Manage Today Transform Tomorrow
Slide 47: APAC Business Overview: The Last Five Years
APAC Business Overview The Last Five Years 5-Year Results Results Net sales +2% CAGR – Increased Netting Gross profit CAGR 6% Adjusted EFO margin* +20bps Innovation Solution Area Expansion Insight Services Sales 39% CAGR Cloud GP 39% of Total GP Culture > 350 Teammates NPS +22 Pts Best Places to Wor
Slide 48: Our Priorities are Aligned to Drive Growth
Our Priorities are Aligned to Drive Growth Diversify sales mix through growth in hardware and services Scale Digital Innovation services across Region footprint and build Managed Services focused on Cloud Disciplined execution across our operating model Strategic Priorities Innovation Led | Solution
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