Eplus Inc. · NASDAQ:PLUS
Eplus — Investor Presentation (February 2021)
33 slides from Eplus's investor presentation, February 2021
Slide 1: Investor Presentation
ePlus inc. Investor Presentation February 2021
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: Mark Marron, Chief Executive Officer
Mark Marron Chief Executive Officer © 2021 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 infrastructure + Technology partners include Cisco, Dell Technologies, HPE, NetApp, Palo Alto Networks and VMware + FY20 adjusted gross billings: $2.2 billion 9% CAGR FY16-FY20 + FY20 net sales: $1
Slide 5: Experienced Leadership Team
Experienced Leadership Team Mark Elaine Darren Marron Marion Raiguel Chief Executive Officer Chief Financial Officer Chief Operating Officer, Joined ePlus in 2005 Joined ePlus in 1998 President of ePlus 35+ Years of Experience 25+ Years of Experience Technology, inc. Joined ePlus in 1997 25+ Years o
Slide 6: Where technology means more.
Where technology means more. Helping customers use technology to successfully navigate business challenges is at the center of everything we do. © 2021 ePlus © 2021 ePlus inc. inc. © 2021 ePlus inc. I 6
Slide 7: ePlus Forward Focused Solutions
ePlus Forward Focused Solutions SECURITY SERVICES FINANCING © 2021 ePlus inc. ©©2021 2021ePlus ePlusinc. inc. I 7
Slide 8: COVID-19 Impact
COVID-19 Impact + Majority of workforce at home since mid- March, no material impact on operations + Onsite personnel conforming to customer/partner requirements and local ordinances + Future IT spending is impacted by general economic trends + Solution set easily pivoted to fulfill customer needs f
Slide 9: The CIO Today: Unpredictability from COVID causes a heightened focus
The CIO Today: Unpredictability from COVID causes a heightened focus on: Cloud Remote Managed and AI: Analytics and Collaboration Security Acceleration Workforce Professional Automation Enablement Services “Infrastructure-led innovation is a new way of thinking among progressive I&O organizations. I
Slide 10: 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 20 – 25% GM 29 – 32% GM GROSS MARGIN 1 INCREASING CUSTOMER VALUE AND VENDOR MARGIN
Slide 11: Expanding Footprint
Expanding Footprint SINGAPORE UK Resources to implement locally and globally INDIA INTERNATIONAL OFFICES REGIONAL OFFICE SALES OFFICES MANAGED SERVICES CENTERS INTEGRATION CENTERS 35+ locations serving the U.S., Europe, and Asia-Pac 24/7/365 managed services operations and integration centers strate
Slide 12: Targeted M&A Strategy with Track Record of Success
Targeted M&A Strategy with Track Record of Success + December 2020 + August 2019 + January 2019 + September 2017 + Upstate New York and the + Southern and Western Virginia + Southern and central Virginia + Chicago and Indianapolis data Northeast centers + New customers, SLED focus, + Security manage
Slide 13: Independent Provider with Deep Strategic Relationships
Independent Provider with Deep Strategic Relationships SELECT STRATEGIC PARTNERS + Excellent channel partner for ePlus, representing 40% of technology segment net sales 1 + All core products plus data center, collaboration, security, enterprise software, and COMPLEMENTED BY ADDITIONAL RELATIONSHIPS
Slide 14: Broad and Diverse Customer Base
Broad and Diverse Customer Base GOVERNMENT & TELECOM, ENTERTAINMENT FINANCIAL TECHNOLOGY HEALTHCARE OTHER EDUCATION & MEDIA SERVICES 18% 16% 23% 13% 14% 16% ©© 2021 2021ePlus ePlusinc. inc. I 14
Slide 15: A Commitment to Corporate Social Responsibility
A Commitment to Corporate Social Responsibility I 15
Slide 16: Why ePlus
Why ePlus Technology evolves quickly, and every new development exposes our customers to new opportunities and new challenges. ePlus is the partner that can help them navigate with confidence and agility. “Do what it takes” Industry-leading Comprehensive Proven processes Highly-accessible, dedicatio
Slide 17: Elaine Marion, Chief Financial Officer
Elaine Marion Chief Financial Officer © 2021 ePlus inc. I 17
Slide 18: Strong Financial Results
Strong Financial Results FYE March 31 / Trailing twelve months ended December 31, 2020 unaudited + Operations are conducted through two segments. The technology segment sells information technology products, software and services, while the financing segment provides lease and financing solutions. +
Slide 19: Strong Financial Results
Strong Financial Results FYE March 31 / Trailing twelve months ended December 31, 2020 unaudited + Service revenue includes professional services, managed services, and staffing services. + From FY17 to FY20, service revenue has increased at a compound annual rate of 26%. + Service revenue as a perc
Slide 20: Strong Financial Results
Strong Financial Results FYE March 31 / Trailing twelve months ended December 31, 2020 unaudited + Consolidated gross profit increased at a compounded annual rate of 11% from FY16 to FY20. Technology segment represented 87% of our total gross profit in FY20. + Consolidated gross margin has increased
Slide 21: Strong Financial Results
Strong Financial Results FYE March 31 / Trailing twelve months ended December 31, 2020 unaudited + From FY16 to FY20, net earnings increased at a compounded annual rate of 11% as a result of focusing on revenue and gross profit growth. + EPS and non-GAAP EPS CAGR were 14% and 10%, respectively, from
Slide 22: Strong Financial Results
Strong Financial Results FYE March 31 / Trailing twelve months ended December 31, 2020 unaudited + Adjusted EBITDA represents net earnings before interest expense, depreciation and amortization, share based compensation, acquisition and integration expenses, provision for income taxes, and other inc
Slide 23: Q3 FY21 Financial Results
Q3 FY21 Financial Results © 2021 ePlus inc. I 23 * See Non-GAAP Financial Information
Slide 24: Q3 FY21 YTD Financial Results
Q3 FY21 YTD Financial Results © 2021 ePlus inc. I 24 * See Non-GAAP Financial Information
Slide 25: Growing Customer Facing Personnel
Growing Customer Facing Personnel + Acquiring consultative sales professionals to bring successful business outcomes to our customers. + Focused on growing engineering talent in cloud, security, and digital infrastructure. + Customer facing personnel increased by 472 from FY16 to FY20, which represe
Slide 26: Strong Balance Sheet
Strong Balance Sheet $ in millions Assets December 31, 2020 March 31, 2020 + $86 million in cash and equivalents Cash and equivalents $ 86 $ 86 Accounts receivable 495 412 + Financing portfolio of $214 million, Inventory 81 50 Financing investments 214 144 representing investments in leases and note
Slide 27: Customized Solutions. Measurable Results. Q & A
Customized Solutions. Measurable Results. Cloud Positioned squarely at the forefront of today’s most Data Center transformative technologies, ePlus’ solutions, services, and financing expertise help organizations imagine, Security implement, and achieve more from technology. Networking … Q&A … Colla
Slide 28: Appendix
Appendix © 2021 ePlus inc. I 28
Slide 29: Non-GAAP Financial Information
Non-GAAP Financial Information $ in thousands Year Ended March 31, TTM Ended December 31, 2020 2019 2018 2017 2016 2020 2019 Technology segment net sales [1] $ 1,530,138 $ 1,329,520 $ 1,372,765 $ 1,294,937 $ 1,169,065 $ 1,529,410 $ 1,490,058 Costs incurred related to sales of third-party maintenance
Slide 30: Non-GAAP Financial Information
Non-GAAP Financial Information $ in thousands, except per share information Year Ended March 31, TTM Ended December 31, 2020 2019 2018 2017 2016 2020 2019 GAAP: Earnings before tax $ 95,959 $ 86,230 $ 83,891 $ 86,112 $ 75,751 $ 101,486 $ 98,339 Share based compensation 7,954 7,244 6,464 6,025 5,711
Slide 31: Non-GAAP Financial Information
Non-GAAP Financial Information $ in thousands, except per share information Three Months Ended December 31, Nine Months Ended December 31, 2020 2019 2020 2019 Technology segment net sales $ 415,570 $ 410,628 $ 1,176,153 $ 1,176,881 Costs incurred related to sales of third-party maintenance, software
Slide 32: Return on Invested Capital
Return on Invested Capital $ in thousands Year Ended March 31, TTM Ended December 31, 2020 2019 2018 2017 2016 2020 2019 Numerator Operating income $ 95,279 $ 79,534 $ 84,239 $ 85,732 $ 75,751 $ 100,623 $ 91,871 Less: Taxes [1] (26,678) (21,236) (28,894) (35,407) (30,982) (29,150) (25,632) Net opera
Slide 33: Investor Relations ePlus inc.
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 © 2021 ©2021 ePlus inc. All ePlus inc. Confidential rights reserved. andand ePlus, the ePlus logo, Proprietary. all referenced product