Eplus Inc. · NASDAQ:PLUS

Eplus — ICR XChange Conference 2010

20 slides from Eplus's conference presentation, January 2010

1. Slide 1: ePlus inc. Investor Presentation

   ePlus inc. inc Investor Presentation ICR XChange Conference January 2010 1

2. 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

3. Slide 3: Vision

   Vision ePlus’ vision is…. …to be our customer’s partner for technology solutions, services, and financing in the most cost effective manner. manner Mark Marron, SVP 3 Copyright 2010 ePlus inc.

4. Slide 4: Corporate Overview

   Corporate Overview ePlus provides technology solutions and IT products, specializing in advanced technology engineering services, leasing, and proprietary software to automate the supply chain including spend analytics, software, analytics procurement and asset management. + FYE 3/31/2009: + $700 mi

5. Slide 5: History of Accomplishments

   History of Accomplishments 2004 2006 2009 1990 Achieved FY04 sales of $331mm Received HP Achieved sales Founded as Performance Acquired q Manchester of $698mm MLC Holdings Excellence Award 1996 Technologies assets 2003 + + + 2007-2008 IPO on NASDAQ Acquired Digital p assets Paper Achieves Cisco Mast

6. Slide 6: Key Takeaways

   Key Takeaways + Maintain strong balance sheet + Organic Growth: + Capture more spend within customer base  New technology solutions  Add-on Add on sales and services + Profitably expand market share  TeleSales for new customers  Hire sales professionals + Acquisitions  Tuck-under Tuck under wit

7. Slide 7: Corporate Capabilities & Focus on the Customer

   Corporate Capabilities & Focus on the Customer 7 Copyright 2010 ePlus inc.

8. Slide 8: Offerings

   Offerings Technology Solutions Financing Solutions Assessment Design + Assessment, Design, + Equipment & Software Leasing Implementation, Fulfillment + Technology Refresh Programs + Technologies: + Total Lifecycle Management Data Center  Virtualization  Network Approach: A h Infrastructure  Colla

9. Slide 9: Why Clients Choose ePlus

   Why Clients Choose ePlus + Our Focus on Advanced Technologies  Data Center  Networking  Security  Virtualization + Our Focus on the Customer  Our customer-centric, project management approach ens res ccustomer ensures stomer satisfaction + Our Web Portal, OneSource, Helps Streamline and HP•Ente

10. Slide 10: Business Results

    Business Results Kley Parkhurst, SVP 10 Copyright 2010 ePlus inc.

11. Slide 11: Strong Balance Sheet

    Strong Balance Sheet Strong Balance Sheet (9/30/09): + Cash: $88.3 million + Shareholders Shareholders’ equity: $184 $184.1 1 million + Book Value per share: $21.86 per share, $2.67 of goodwill + De De-leveraged: leveraged: debt is non-recourse non recourse As of 1/6/10 1 : + Closinggpprice p per sh

12. Slide 12: Financial Results

    Financial Results Annual Results (March YE) + FY09 revenues and net earnings i d declined li d as a resultlt off general economic conditions + Some of the revenue decline is attributable to lower sales of leased equipment (FY09: $4.6 mm vs. FY08:$45.5mm) + Reduction in net earnings include a pre-tax

13. Slide 13: Quarterly Results

    Quarterly Results + Fiscal 2Q10 Results (ended 09/30/09):  Revenues totaled $ $172.7 million,, down 12.3% % from 2Q09 Q  Sales of product & services totaled $157.3 million, down 12.4% from 2Q09  Gross margins on products & services improved 60 basis points to 14.6% from 2Q09  Selling, general an

14. Slide 14: Multiple Sources of Revenue and Earnings

    Multiple Sources of Revenue and Earnings + Technology Segment Sales  In FY09 FY09, sales of Cisco products generated 36% of revenue; sales of HP products generated 18% of revenue  Other major mfgs: VMware, VMware NetApp NetApp, Sun Sun, Microsoft, EMC, IBM, etc.  Tiered mfg. incentive programs an

15. Slide 15: Financing Segment

    Financing Segment + Maintain credit quality and risk profile + Use balance sheet to provide financing to credit worthy customers + Increase focus on federal government & public sector + Focus on ePlus Technology customers to increase leasing volume and technology sales + Hire more sales Financing Se

16. Slide 16: Diversified Customer Base

    Diversified Customer Base + More than 1,500 customers in a variety of industries and geographies  No N single i l customer t represents t more th than 5% off revenue  Public sector + Majority of commercial customers are middle market in size + Significant opportunity to expand current client base

17. Slide 17: Q&A

    Q&A 17 Copyright 2010 ePlus inc.

18. Slide 18: Investment Thesis

    Investment Thesis + Large addressable market  $491 billion market for IT spending in North America1  Highly fragmented: 50,000 50 000 potential middle market to larger companies with annual revenues between $25 million and $2.5 billion + Diversified customer base: commercial, federal, and state/lo

19. Slide 19: Contact Information

    Contact Information Kley Parkhurst Parkhurst, SVP ePlus inc. (703) 984 984-8150 8150 investors@eplus.com ePlus inc. 13595 Dulles Technology Drive Herndon, VA 20171-3413 (703) 984 984-8400 8400 www.eplus.com 19 Copyright 2010 ePlus inc.

20. Slide 20: Appendix: Non-GAAP Financial Results

    Appendix: Non-GAAP Financial Results RECONCILIATION OF NON-GAAP INFORMATION Year Ended March 31, 2009 2008 [2] (i thousands, (in th d exceptt per share h amounts) GAAP earnings before provision for income taxes as reported $22,048 $29,942 Plus: Impairment of goodwill 4,644 - Non-GAAP Earnings before

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