Insight Enterprises, Inc. · NASDAQ:NSIT
Insight Enterprises — Investor Day (October 2019)
105 slides from Insight Enterprises's investor day presentation, Oct 16, 2019
Slide 1: Insight Enterprises 2019 Investor Day
Insight Enterprises, Inc 2019 Investor Day Insight 2019 Investor Day 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 Welcome 9:00 A.M. Digital Marketing Helen Johnson – SVP Finance, CFO - North America 10:35 A.M. Amy Protexter – Senior Vice President, Marketing Insight Overview & Growth Strategy 9:05 A.M. Ken Lamneck – Chief Executive Officer Solution Area Overview Wolfgang Ebermann – President, Insight EME
Slide 4: Insight 2019 Investor Day
Insight 2019 Investor Day 44
Slide 5: Global Intelligent Technology Solutions provider that helps businesses run smarter
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. Insight 2019 Investor Day 55
Slide 6: Track Record of Innovation
Track Record of Innovation 1980s through mid 2000s Mid 2000s - 2016 2017 and Beyond Global Intelligent Technology Reseller IT services Solutions Provider Innovation Focus Areas Innovation Focus Areas Innovation Focus Areas GEO Footprint Expansion Advanced Networking Solutions Modern Workforce Soluti
Slide 7: Insight at a Glance (Pre PCM)
Insight at a Glance (Pre PCM) Profile Results Services Talent 30+ years $7.1 Billion 15% > 7,600 Evolving in 2018 Services Sales Teammates 2018 Net Sales dynamic industry 5 YR CAGR Worldwide 7% 5 YR CAGR 190 Countries 46% > 5,500 where clients are $237 Million 2018 Services GP to Client-facing 2018
Slide 8: Insight + PCM | Strategic and Powerful Combination
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 $200M
Slide 9: Insight + PCM | Global Scale, Skills and Solutions Drive Value
Insight + PCM | Global Scale, Skills and Solutions Drive Value* Net Sales ($M)* Gross Profit ($M)* Gross Margin* $9,244 $1,327 14.4% $5,144 $7,080 $994 $699 14.0% 13.6% 2013 2018 2013 2018 2013 2018 > 11,000 > 8,000 > 4,500 Teammates Worldwide Client-facing Teammates Technical Resources * Proforma t
Slide 10: PCM Integration Timeline
PCM Integration Timeline Day 1 - 30 Day 31-120 Day 120 + • System integration plan • Brand migration • IT systems onboard • Integration complete • Leadership team • Team alignment • Common service delivery • $70 million of expected run rate platforms cost synergies by 2021 • Client / partner/ teamma
Slide 11: Entering the Next Computing Cycle; Centered on Data
Entering the Next Computing Cycle; Centered on Data Computing growth drivers over time 1960–2030E Data Tens of billions of 1,000,000 units Mobile internet • IoT Billions of units • Artificial intelligence • AR/VR Devices/users (mm in log scale) Desktop internet • Automation 10,000 1B+ units/users PC
Slide 12: Market Backdrop Provides Opportunity for Growth
Market Backdrop Provides Opportunity for Growth Expanding IT Market1 Insight’s Market Share of Worldwide Solution Providers3 $4.3T Forecasted TAM by 2023 $3.7T TAM today $671B Insight market today Worldwide Indirect IT Spend 2018-2023 CAGR 4.8% 2 1. Gartner Market Databook, 3Q19 Update (September 20
Slide 13: Gartner | Cloud Market Trends
Gartner | Cloud Market Trends Public Cloud Market Growth1 Cloud Shift Proportion by Cloud Shift Category2 (cloud and non-cloud) 351 (Worldwide Billions $) 309 269 IaaS 233 200 Mgmt & Security Non-CLOUD 172 PaaS 141 SaaS 28% 24% 19% BPaaS 15% CLOUD 2017 2018 2019 2020 2021 2022 2023 2016 2018 2020 20
Slide 14: Multi-Cloud World
Multi-Cloud World Moving focus from data Private cloud centers to centers of data Public clouds Intelligent edge Insight 2019 Investor Day 14
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 Managed Services 18% 42% Implementation Services 13% 39% Development Services 11% 36% Support Services 8%
Slide 16: Well Positioned to Address Industry Megatrends
Well Positioned to Address Industry Megatrends Artificial Internet of Managed Cloud Security intelligence Things (IoT) services Insight 2019 Investor Day 16
Slide 17: Strategic Assets are a Platform for Growth
Strategic Assets are a Platform for Growth Culture Clients & Partners Culture, People and Diverse and Loyal Client Leadership and Partner Relationships Innovation Discipline Innovation Led | Operational Rigor and Financial Solution Area Expertise Health Global Global Reach and Scale Insight 2019 Inv
Slide 18: Culture and Leadership is our Foundation
Culture Culture and Leadership is our Foundation Hunger Heart Harmony We’re driven by a deep We don’t think of We’re different in skill curiosity — to learn, to ourselves as individuals sets, perspectives and explore and to grow. but as teammates. We backgrounds but united Where others assume, we ta
Slide 19: Leadership Commitments
Culture Leadership Commitments Demonstrate thought Create clarity. Inspire people. Deliver results. leadership. • Define a clear vision • Empower through • Actively propose new • Be client-obsessed. for your team and own energizing leadership. ideas and innovative our culture. solutions. • Have a bi
Slide 20: High-Performance Culture with Deeply Engaged Teammates
Culture High-Performance Culture with Deeply Engaged Teammates #23 on Fortune’s Teammate Satisfaction Sales Rep Tenure > 3 Years ‘Best Workplaces in Technology’ +40pts 60% +40pts FORTUNE 100 ‘2018 Best Workplaces for Diversity’ 2013 V 2018 28.01 #11 21.10 Australia’s “Best Places to Work 2019” Sales
Slide 21: Our Solutions Align to Industry Trends and Drive Business Outcomes
Innovation Our Solutions Align to Industry Trends and Drive Business Outcomes for our Clients Manage Today Transform Tomorrow Clients Suppliers Supply Connected Workforce Cloud + Data Center Digital Innovation Chain Optimization Transformation Product- Outcome- focused based CapEx OpEx Insight 2019
Slide 22: Insight Innovation in Action
Innovation Insight Innovation in Action Cloud Artificial intelligence Internet of Things (IoT) Security Managed services • Recognized on 2019 Gartner Magic • 2019 Forrester Wave for Midsize • 2018 Worldwide Artificial Intelligence Partner Quadrant™ for Managed Workplace Services, Agile Software Deve
Slide 23: Global Scale / Reach Sets us Apart
Global Global Scale / Reach Sets us Apart Insight Footprint represents ~ 70% of Global IT Spending 25 sites 52 sites 10 sites Insight-delivered Partner-delivered Insight offices 21 Countries | Multi-Currency and Multi-Lingual Support Insight 2019 Investor Day 23
Slide 24: Diverse, Loyal Base Presents Long-Term Growth Opportunity
Clients & Partners Diverse, Loyal Base Presents Long-Term Growth Opportunity ✓ Deep, Long-standing Client Relationships ✓ Opportunity to Accelerate Growth in Commercial Market 2018 Insight Sales Mix | Clients 2018 Proforma With PCM Public Commercial 13% 21% Public Commercial 13% Global* 15% 36% Glob
Slide 25: Solutions Supported by Strong Partner Relationships
Clients & Partners Solutions Supported by Strong Partner Relationships Major Solution Cloud Emerging Insight 2019 Investor Day 25
Slide 26: Enhance Client Experience and Drive Operational Efficiency
Discipline Enhance Client Experience and Drive Operational Efficiency Scalable IT Systems Frictionless Client Experience SG&A Discipline ERP 5 to 2 76% of 43 web systems to 2 +60% Gross Profit 4 data centers to 2 400 bps of Transactions Delivered 2010 V 2018 IT Systems Electronically Over Last 5 Yea
Slide 27: Our Financial Health Allows for Strategic Capital Allocation
Discipline Our Financial Health Allows for Strategic Capital Allocation Organic Investment Cumulative Share Repurchases Sales and Technical Coverage Common ERP Systems $300M Services Delivery Platforms Cloud and Ecommerce Engine Digital Marketing Stack and Web experience B2B/EDI and Process Automati
Slide 28: Our Strategic Assets Support Continued Growth
Strategy Our Strategic Assets Support Continued Growth Strategic Assets Strategic Priorities Culture, People and Leadership • Continue to Innovate to capture share in high growth areas Innovation Led | Solution Area Expertise • Grow with solutions that drive business outcomes for clients Global Reac
Slide 29: Key Imperatives to Deliver Long-Term Value
Measures Key Imperatives to Deliver Long-Term Value Grow Sales Faster Expand EBITDA Optimize Return on Grow Services Gross than the Market Margin Invested Capital Profit as % of Total GP Market Leader as Global Intelligent Technology Solution Provider Insight 2019 Investor Day 29
Slide 30: North America
North America Steve Dodenhoff – President, Insight North America Insight 2019 Investor Day 30
Slide 31: North America Business Overview
North America Business Overview 2018 Net Sales $5.4 Billion APAC 3% Public 9% EMEA 21% Commercial 17% Services 44% Global* Cloud NA 34% 11% 76% Hardware / Software 56% Enterprise 74% 2018 GEO Sales Mix 2018 Sales Mix - Client 2018 Gross Profit Mix > 5,500 Teammates | Broad National Footprint | Unite
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 Insight 2019 Investor Day 32
Slide 33: North America Business Overview
North America Business Overview The Last Five Years 5-Year Results • Client engagement | Enterprise, Global, Results Commercial • Net Sales 9% CAGR | • Ecommerce and digital marketing investments Organic growth 7% CAGR • Adjusted EFO* 11% CAGR • Strategic acquisitions to add capabilities and Innovat
Slide 34: Client Needs | Insight Intelligent Technology Index
Client Needs | Insight Intelligent Technology Index 59% 73% Top 3 77% of IT decision-makers of enterprises consume concerns for accelerated call up-front costs or globally say their IT supply bundled products and data growth in the next 3-5 monthly expenditures one chain is “very or extremely servic
Slide 35: Solution Areas in North America
Solution Areas in North America Manage Today Transform Tomorrow Supply Chain Connected Cloud + Digital Optimization Workforce Data Center Innovation Transformation Insight 2019 Investor Day 35
Slide 36: Our Priorities are Aligned to Drive Growth
Our Priorities are Aligned to Drive Growth Strategic Assets Strategic Priorities Culture, People and Leadership • Best Places to Work Initiatives • Grow through Innovation and in core solution Innovation Led | Solution areas Area Expertise • Optimize growth in new scale and opportunity in the commer
Slide 37: EMEA Overview
EMEA Overview Wolfgang Ebermann – President, Insight EMEA Insight 2019 Investor Day 37
Slide 38: EMEA Business Overview
EMEA Business Overview 2018 Net Sales $1.5 Billion Other 15% Services France 8% 47% UK Cloud Germany 9% 55% 37% Hardware/Software Netherlands 53% 13% 2018 Sales Mix by Country 2018 Gross Profit Mix > 1,600 Teammates | 14 Countries | 25 Sites Insight 2019 Investor Day 38
Slide 39: EMEA Business Overview
EMEA Business Overview 2018 Net Sales $1.5 Billion Public 21% Corporate 19% Public 21% Commercial 4% Commercial 4% Other Enterprise 11% Enterprise 74% Global 44% 2018 Sales Mix – Client 2018 Sales Mix As reported Subset Description * Global designation represents a subset of Enterprise clients doing
Slide 40: EMEA Intelligent Technology Index
EMEA Intelligent Technology Index ~42% of IT professionals consider ~67% of IT professionals strongly Cloud one of the most critical technologies agree or somewhat agree that IT is struggling for their digital innovation initiatives over the to balance the dual responsibilities of past two years. tr
Slide 41: Solution Areas in EMEA
Solution Areas in EMEA Positioned to help IT manage the Dual Responsibility: Core IT and Lead Digital Innovation Manage Today Transform Tomorrow Supply Chain Connected Cloud + Digital Optimization Workforce Data Center Innovation Transformation Insight 2019 Investor Day 41
Slide 42: EMEA Business Overview
EMEA Business Overview In constant US$ The Last Five Years 5-Year Results • Business Model Transformation: Results • Net Sales 4% CAGR • Prioritzed Cloud and Services • Gross Profit 6% CAGR • GTM Model Design: 4 Solution Areas • Adjusted EFO* 31% CAGR • Operational Excellence Focus: Innovation • Ins
Slide 43: Our Priorities are Aligned to Drive Growth
Our Priorities are Aligned to Drive Growth Strategic Assets Strategic Priorities Culture, People and Leadership • Recruit and Invest in People to be recognized as a Best Place to Work Innovation Led | Solution • Grow organically Area Expertise • End markets | Corporate and Commercial clients Global
Slide 44: APAC Overview
APAC Overview Mike Morgan – VP, General Manager, Insight Asia Pacific Insight 2019 Investor Day 44
Slide 45: APAC Business Overview
APAC Business Overview 2018 Net Sales $187 Million China 13% Hardware/ Enterprise 27% Software Singapore 8% 30% Public Hong Kong 7% 41% Cloud 39% Global* Cloud Australia 65% 21% 39% New Zealand 7% Services Commercial 70% 32% 2018 Sales Mix by Country 2018 Sales Mix - Client 2018 Gross Profit Mix >35
Slide 46: Solution Areas in APAC
Solution Areas in APAC Manage Today Transform Tomorrow Supply Chain Connected Cloud Cloud++ Digital Optimization Workforce Data DataCenter Center Innovation Transformation Transformation Insight 2019 Investor Day 46
Slide 47: APAC Business Overview
APAC Business Overview In constant US$ The Last Five Years 5-Year Results • Solution area strategy and alignment Results • Net sales +2% CAGR – Increased Netting • Category expansion • Gross profit CAGR 6% • Strategic acquisitions to add Digital Innovation • Adjusted EFO margin* +20bps skills and of
Slide 48: Our Priorities are Aligned to Drive Growth
Our Priorities are Aligned to Drive Growth Strategic Assets Strategic Priorities Culture, People and Leadership • Diversify sales mix through growth in hardware and services Innovation Led | Solution • Scale Digital Innovation services across Area Expertise Region footprint and build Managed Service
Slide 49: Break
Break Insight 2019 Investor Day 49
Slide 50: Brand and Digital Marketing
Brand and Digital Marketing Amy Protexter, SVP Marketing Insight 2019 Investor Day 50
Slide 51: B2B Buyer Has Fundamentally Changed
B2B Buyer Has Fundamentally Changed • 65% of tech decisions are now made by business leaders • 68% of business buyers prefer to research on their own • 73% find buying from the web more convenient • 80% of buyers report that salespeople are not specialized enough • 67% prefer not to interact with a
Slide 52: Who serves the 68%?
B2B Buyer Has Fundamentally Changed • 65% of tech decisions are now made by business leaders • 68% of business buyers prefer to research on their own • 73% find buying from the web more convenient • 80% of buyers report that sales people are not specialized enough • 67% prefer not to interact with a
Slide 53: Marketing's Role has Changed
Marketing’s Role has Changed Old B2B buyer funnel New B2B buyer funnel Marketing Brand Awareness Brand Awareness Interest Interest Consideration Consideration Intent Marketing Intent Evaluation Sales Evaluation Sales Decision Decision Buy Buy Insight 2019 Investor Day 53
Slide 54: Brand, Marketing, eCommerce Drive Client Engagement
Brand, Marketing, eCommerce Drive Client Engagement A robust, multi Simplified, A powerful, function digital touchless buying evolving brand platform to drive experience client engagement Insight 2019 Investor Day 54
Slide 55: The Brand is the Strategy; the Strategy is the Brand
The Brand is the Strategy; the Strategy is the Brand 2017 2018 2019 2015-2016 Reseller to IT Solution area Intelligent Global rebrand Solution Provider amplification Technology Solution Provider™ House of brands to Solution acquisitions: Develop and aligned under Differentiation branded house Datali
Slide 56: Our Brand Impact
Our Brand Impact Our Brand Drive client loyalty Impact Create competitive advantage Drives employee engagement “The values really resonate with my “The transformation you did a number of ”I joined for the values. I stay for the company. It’s the type of person we years ago made you a more strategic
Slide 57: Impact of Ongoing Marketing Engagement
Impact of Ongoing Marketing Engagement Solution Area Enterprise clients spend 3X and commercial clients spend 4X if engaging with marketing All Insight All Global/Enterprise Commercial /Supply Chain 73% Marketing 83% Marketing 75% Marketing Engagement Engagement Engagement • Highly efficient, highly
Slide 58: Sales / Marketing Engagement Drives Lifetime Value
Sales / Marketing Engagement Drives Lifetime Value Enterprise Clients Commercial Clients 6 300 5 250 $ - Thousands 4 $ - Millions 200 3 150 2 100 1 50 0 0 0-1 Years 1-2 Years 2-5 Years 5-7 Years 7-10 Years 10+ Years 0-1 Years 1-2 Years 2-5 Years 5-7 Years 7-10 Years 10+ Years Enterprise Clients Comm
Slide 59: Integrated, Sophisticated Digital Toolset
Integrated, Sophisticated Digital Toolset Insight 2019 Investor Day 59
Slide 60: Engagements through Many Channels, Strategies
Engagements through Many Channels, Strategies Thought Leadership Demand Generation New Client Acquisition Insight It Takes Insight Insight Intelligent Solution Area Product Brand Campaign Technology™ Campaigns Merchandising Unassisted Sales Index Enterprise Clients Commercial Clients Insight + Partn
Slide 61: Engaging Clients via a Frictionless Experience
Engaging Clients via a Frictionless Experience 73% find buying from the web more convenient Frictionless B2C- Complex Configured Cloud subscription Like Experience Insight 2019 Investor Day 61
Slide 62: Engaging Clients via a Frictionless Experience
Engaging Clients via a Frictionless Experience 73% find buying from the web more convenient Complex Configured Cloud subscription Frictionless B2C-Like Global 50/ 1K – 5K Seats All segments/2 Tier Experience Fortune 500 System to system Self-service capabilities License Management Intuitive shopping
Slide 63: Insight + PCM = More Contacts, Channels
Insight + PCM = More Contacts, Channels 22 million contacts Scalable, low cost marketing support High velocity acquisition remarketing Platform to acquire new accounts Access to differentiated products Insight 2019 Investor Day 63
Slide 64: Validation of our Approach
Validation of our Approach “Investing in marketing can be a key differentiator for many of our “Insight has a unique brand story and sophisticated partners. One of our partners, Insight, is a great example of a marketing engine that power a valued partnership partner that has built the foundational
Slide 65: How Insight serves the 68%
Brand, Marketing, eCommerce Drive Client Experience How Insight serves the 68% A robust, multi A powerful, function digital Simplified touchless evolving brand platform to drive buying experience client engagement Insight 2019 Investor Day 65
Slide 66: Solution Area Overview
Solution Area Overview Wolfgang Ebermann, Steve Dodenhoff, Matt Jackson Insight 2019 Investor Day 66
Slide 67: Intelligent Technology Solution Provider
Intelligent Technology Solution ProviderTM Manage Today Transform Tomorrow Supply Chain Connected Cloud Cloud++ Digital Optimization Workforce Data DataCenter Center Innovation Transformation Transformation Insight 2019 Investor Day 67
Slide 68: Supply Chain Optimization Remains a Key Priority
Supply Chain Optimization Remains a Key Priority ~52% of IT decision-makers report they ~54% of IT professionals are looking need to improve the e-procurement process, for resources that will give them greater with only visibility and insight into IT supply chain ~18% having fully automated IT manag
Slide 69: Supply Chain Optimization | Client Value Proposition
Supply Chain Optimization | Client Value Proposition We help clients invest smarter. By optimizing supply chain, we help clients maximize resources and do more today so they can invest in the future. Today’s Solutions Outcomes challenges ▪ Automate procurement • Procurement Services • Reduced time,
Slide 70: Supply Chain Optimization | Key Client Benefits
Supply Chain Optimization | Key Client Benefits Cost Efficient Supply Enable Digital Business IT Supply Chain Optimization Build and Implement Intelligent with Global Scale Solutions Insight 2019 Investor Day 70
Slide 71: Creating a Modern Workplace Means Embracing Subscription-based Models
Creating a Modern Workplace Means Embracing Subscription-based Models and Managed Services In the past year, ~51% of organizations have migrated ~73% services and workloads to ~76% indicate their organizations cloud-based platforms. Looking of IT decision-makers believe consume at least some bundled
Slide 72: Connected Workforce | Client Value Proposition
Connected Workforce | Client Value Proposition We help employees work smarter. By enabling the workforce, we help clients create productive employee experiences. Today’s Solutions Outcomes challenges • Insight Managed Office • Productive workplace • Insight Managed Mobility • Secure environment ▪ Mi
Slide 73: Solution Area Cross-Sell
Solution Area Cross-Sell American sandwich restaurant franchise with over 42,000+ restaurants Supply Chain Connected Solution in 100+ countries Optimization Workforce • Employee onboarding • Modern Apple provisioning and training • Help Desk services • Net new tablet device • Centralized depot servi
Slide 74: Data, Cloud and Security Remain High Priorities
Data, Cloud and Security Remain High Priorities By 2022, 90% By 2021, over 75% Cybersecurity concerns of corporate strategies will remain an issue; of midsize and large organizations explicitly mention information will have adopted a multicloud 91% agreeing the as a critical enterprise asset threat
Slide 75: Cloud & Data Center Transformation | Client Value Proposition
Cloud & Data Center Transformation | Client Value Proposition We help clients run workloads smarter. By defining and navigating cloud and data center platforms, we help clients achieve business agility. Today’s Solutions Outcomes challenges • Consulting Services • Business agility • Professional Ser
Slide 76: Driving Digital Transformation
Driving Digital Transformation Data Standardization Productivity Platform Modernization Application Modernization Applications Analytics Colocation Remote CDN Customer Compliance IoT Edge Data location center Branch Operations CRM ERP Accelerated speed of innovation and Created DevOps automation and
Slide 77: Digital Innovation | Client Value Proposition
Digital Innovation | Client Value Proposition We help clients innovate smarter by helping drive differentiation across their digital experiences. Today’s Solutions Outcomes challenges • Digital Transformation • Differentiated end- • Workforce Applications user experiences ▪ Driving loyalty • Real-Ti
Slide 78: IoT project challenges
IoT project challenges Successful IoT projects typically require 10+ different partners to execute.1 This means client organizations must manage multiple niche specialists, point technologies and integration points with obscured visibility over the whole solution. 1. Cisco. (April 2017). The Journey
Slide 79: Solving Client Challenges through Digital Innovation
Solving Client Challenges through Digital Innovation Challenge: • Crisis info sharing management • Improve deployment of public safety mechanisms Solution: • IoT-enabled safety platform • Deployed Safe Spaces technology utilizing power of Microsoft Azure Outcome: • City of Houston receives Internati
Slide 80: Solving Client Challenges through Digital Innovation
Solving Client Challenges through Digital Innovation Challenge: • Healthcare data is immense, highly secure, and very complex • Research data isn’t tabulated or organized in the same way, making it difficult to combine and analyze with other studies Solution: • Independent data repository • In-depth
Slide 81: Solving Client Challenges through Digital Innovation
Solving Client Challenges through Digital Innovation The challenge • Improve on-site safety • Reduce maintenance costs The solution • Drone-based imaging solution • IoT edge technology to process and prioritize images • Cloud data platform The outcome • Reduced maintenance costs • Advance notice of
Slide 82: Pillars of Digital Innovation
Pillars of Digital Innovation Cloud enablement Digital experience provides winning solutions that engage customers and Data & AI employees in new, meaningful ways. Dev Ops Disruptive technology innovations, both proven and emerging, captivate customers, empower employees and Digital Strategy transfo
Slide 83: Financial Overview and Vision
Financial Overview and Vision Glynis Bryan – Chief Financial Officer Insight 2019 Investor Day 83
Slide 84: Superior Financial Results
Discipline Superior Financial Results Net Sales ($B) CAGR Gross Profit ($M) & (%) CAGR 7% 7% 14.0% $7.080 13.6% $993.7 $5.144 $698.9 2013 2018 2013 2018 SG&A % of Net Sales -30 Adj. EFO* ($M) & (%) CAGR bps 12% 11.0% 3.4% $237.2 2.6% 10.7% $134.0 2013 2018 2013 2018 * Adjusted Non-GAAP measure exclu
Slide 85: Superior Financial Results
Discipline Superior Financial Results Adj. Diluted EPS* CAGR ROIC* +760 Adj. Free Cash Flow* +$200M 20% bps $4.63 $260.0 16.9% $1.87 9.3% +45 bps $55.5 2013 2018 2013 2018 2013 2018 * Adjusted Non-GAAP measure excludes severance and restructuring expense and other unique items. See Non-GAAP informat
Slide 86: Client Billed vs Net Sales Growth
Discipline Client Billed vs Net Sales Growth 5 Year CAGR 7% 12% 10% 8% 8% 9% 8% 27% 32% 38% 37% 38% 40% 54% 54% 52% 54% 58% 61% 2013 2014 2015 2016 2017 2018 Client Billed Net Hardware Sales Net Software Sales Net Services Sales Insight 2019 Investor Day 86
Slide 87: Strong and Improving Cash Conversion Cycle
Discipline Strong and Improving Cash Conversion Cycle ✓ Increased sales reported net drives more volatile ✓ Stable mix and terms drives healthy cash flow cycle optically generation 35 33 30 27 26 Q4-13 Q4-17 Q4 18 Q1 19 Q2 19 As Reported Client Billed Insight 2019 Investor Day 87
Slide 88: PCM: Financial Rationale
Discipline PCM: Financial Rationale Adds scale to top line and expands addressable market in corporate and mid-market clients • 2018 PCM Net sales of $2.2 Billion at 15.9% gross margin • Higher margin end markets • Cross sell opportunity within Solution Areas Expands services capabilities adding mor
Slide 89: Key Imperatives to Deliver Long-Term Value
Measures Key Imperatives to Deliver Long-Term Value Grow Sales Faster Expand EBITDA Optimize Return on Grow Services Gross than the Market Margin Invested Capital Profit as % of Total GP Insight 2019 Investor Day 89
Slide 90: Net Sales
Discipline Net Sales 8 - 10% CAGR $7.1B 8-10 % (CAGR) Grow Sales Faster than the Market FY 2018 Core End Market Innovation Target Business Expanson Insight 2019 Investor Day 90
Slide 91: Adjusted EBITDA
Discipline Adjusted EBITDA $700,000 5.0% - 5.5% $600,000 $500,000 $400,000 5.0% - 5.5% $300,000 3.9%* Expand EBITDA Margin $200,000 $100,000 $0 FY 2018 Core End Market Innovation Operational Target Business Expanson Excellence * Adjusted Non-GAAP measure excludes severance and restructuring expense
Slide 92: ROIC
Discipline ROIC 19% - 21% 16.9%* +760 bps 19% - 21% With 9.3%* Optimize Return on PCM Invested Capital 2013 2018 2020 Target * Adjusted Non-GAAP measure excludes severance and restructuring expense and other unique items. See Non-GAAP information in the Appendix of this presentation. Insight 2019 In
Slide 93: Services Gross Profit
Discipline Services Gross Profit $1,000,000 50% - 52% $900,000 $800,000 $700,000 $600,000 $500,000 46% 50% - 52% $400,000 Grow Services Gross Profit as % $300,000 of Total GP $200,000 $100,000 $0 FY 2018 Core End Market Expanson Innovation Target Business Insight 2019 Investor Day 93
Slide 94: New Debt Structure - Capacity for Growth
Discipline New Debt Structure - Capacity for Growth Existing Borrowings ▪ Asset Based Loan (ABL) $1.2 Billion Funded PCM acquisition 5-year term, existing loan, variable rate ▪ Convertible Senior Notes $350M 5.5-year term, fixed value, fixed rate Hedged up to 100% conversion premium PCM Funding ABL
Slide 95: Disciplined Capital Allocation Aligned with Shareholder Interests
Discipline Disciplined Capital Allocation Aligned with Shareholder Interests Scalable IT and service delivery platforms 1 Invest organically Digital Marketing and client facing tools Technical and sales talent Cultural / strategic / financial integration 2 Pursue strategic M&A Accretive within the f
Slide 96: Closing Comments
Closing Comments Ken Lamneck – Chief Executive Officer Insight 2019 Investor Day 96
Slide 97: Key 5-Year Imperatives to Deliver Value
Measures Key 5-Year Imperatives to Deliver Value 8% – 10% (CAGR) 5.0% – 5.5% 19% – 21% 50% – 52% Grow Sales Faster Expand EBITDA Optimize Return on Grow Services Gross than the Market Margin Invested Capital Profit as % of Total GP Value Creation for Insight Shareholders, Clients, Partners and Teamm
Slide 98: Q&A Session
Q&A Session Insight Executive Team Insight 2019 Investor Day 98
Slide 99: Appendix
Appendix Insight 2019 Investor Day 99
Slide 100: Reconciliation of GAAP to Non-GAAP Financial Measures
Reconciliation of GAAP to Non-GAAP Financial Measures Twelve Months Ended December 31, US Dollar in $000s 2018 2013 Adjusted Consolidated Earnings from Operations: GAAP consolidated EFO $ 233,483 $ 121,237 Severance and restructuring expenses 3,424 12,740 Acquisition-related expenses 282 - Adjusted
Slide 101: Reconciliation of GAAP to Non-GAAP Financial Measures
Reconciliation of GAAP to Non-GAAP Financial Measures Twelve Months Ended December 31, US Dollar in $000s 2018 2013 Adjusted North America Earnings from Operations: GAAP EFO from North America segment $ 185,705 $ 106,482 Severance and restructuring expenses 1,617 3,325 Acquisition-related expenses 2
Slide 102: Reconciliation of GAAP to Non-GAAP Financial Measures
Reconciliation of GAAP to Non-GAAP Financial Measures Twelve Months Ended December 31, US Dollar in $000s 2018 2013 Adjusted return on invested capital: GAAP consolidated EFO $ 233,483 $ 121,237 Severance and restructuring expenses 3,424 12,740 Acquisition-related expenses 282 - Adjusted non-GAAP co
Slide 103: Reconciliation of GAAP to Non-GAAP Financial Measures
Reconciliation of GAAP to Non-GAAP Financial Measures Twelve Months Ended December 31, US Dollar in $000s 2018 2013 Adjusted free cash flow: Net cash provided by (used in) operating activities $ 292,647 $ 76,066 Purchases of property and equipment (17,251) (19,024) Net (repayments) borrowings under
Slide 104: Reconciliation of GAAP to Non-GAAP Financial Measures
Reconciliation of GAAP to Non-GAAP Financial Measures Twelve Months Ended Trailing Twelve Months December 31, June 30, US Dollar in $000s 2018 2019 Adjusted EBITDAS: GAAP Net Earnings $ 163,677 $ 168,520 Depreciation and amortization of property and equipment 21,721 20,991 Amortization of intangible
Slide 105: Reconciliation of GAAP to Non-GAAP Financial Measures
Reconciliation of GAAP to Non-GAAP Financial Measures PCM Adjusted EBITDA Trailing Twelve Months June 30, US Dollar in $000s 2019 EBITDAS (a) Consolidated operating profit $ 42,605 Add: Consolidated depreciation expense 10,192 Consolidated amortization expense 2,428 Equity income from unconsolidated