Eplus Inc. · NASDAQ:PLUS
Eplus — Investor Presentation (November 2023)
36 slides from Eplus's investor presentation, November 2023
Slide 1: ePlus inc. Investor Presentation November 2023
ePlus inc. Investor Presentation + November 2023 © 2023 ePlus inc. Confidential and Proprietary.
Slide 2: Safe Harbor Statement
Safe Harbor Statement This investor presentation contains certain statements that are, or may be deemed to be, “forward-looking statements” within the meaning of the safe harbor provisions of the U.S. Private Securities Litigation Reform Act of 1995. Statements in this investor presentation that are
Slide 3: Mark Marron, Chief Executive Officer
Mark Marron Chief Executive Officer © 2023 ePlus inc. Confidential and Proprietary.
Slide 4: By the Numbers
By the Numbers 30+ Years 11% $2.07B $3.15B as a leading, global Listed companies FY23 net sales FY23 gross billings technology integrator in business for 30+ years 5,500+ 1,500+ 4,300+ 1,877 certifications OEM Vendor customers employees and Partnerships as of accreditations September 30, 2023 © 2023
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 30+ Years of Experience Technology, inc. Joined ePlus in 1997 30+ Years o
Slide 6: Expanding Footprint
Expanding Footprint SINGAPORE UK Resources to implement locally and globally INDIA INTERNATIONAL OFFICES 30+ locations serving the U.S., U.K., Europe, and Asia-Pac 24/7/365 managed services operations and integration centers strategically placed throughout the U.S. 5,500+ certifications from the top
Slide 7: Who We Are
Who We Are For more than 30 years… ePlus has stood side by side with thousands of customers + Customer First around the world, helping navigate an increasingly complex and dynamic IT environment. + Services Led Backed by an unparalleled bench of technical experts, top industry recognition and a rele
Slide 8: 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 22 – 67% GM 6 – 13% GM 16 – 21% GM 24 – 26% GM 30 – 32% GM GROSS MARGIN 1 Increasing customer value and vendor margin
Slide 9: Comprehensive Solutions & Services
Comprehensive Solutions & Services SERVICES PROFESSIONAL SERVICES | MANAGED SERVICES ADVISORY & CONSULTING SERVICES STRATEGIC TECHNOLOGY STAFFING LIFECYCLE CX SOLUTIONS | SOFTWARE LICENSE OPTIMIZATION SECURITY SECURITY SOLUTIONS | SECURITY ADVISORY SOLUTIONS | SECURITY OPERATIONS & ANALYTICS FINANCI
Slide 10: Cloud and Data Center: Efficient Journey to Modernization
CLOUD AND DATA CENTER: Efficient Journey to Modernization Customers from all industries and sizes seek ePlus to leverage cloud in transformative ways to help them drive business outcomes by modernizing applications, data sets and platforms. MODERNIZE THE DATA CENTER Automation-driven, software-defin
Slide 11: Security: Compromise Nothing
Compromise Nothing Go Beyond managing threats and start facilitating business outcomes Build an infrastructure that embeds security into every crevice of your technological environment. Because once that happens, other organizational objectives should become more achievable. Security Technologies Ad
Slide 12: Networking: The Cornerstone of Possibility
NETWORKING: The Cornerstone of Possibility Organizations rely on ePlus to help build resilient, efficient, agile, defensive and intelligent networks capable of supporting modern initiatives and enabling transformation. Design and deploy next-generation enterprise networks across: • SDN • SD-WAN • IO
Slide 13: Collaboration: Unleash Productivity from Anywhere
COLLABORATION: Unleash Productivity from Anywhere, CLOUD Simply and Securely CONTACT CENTER MEETING Empower ON-PREMISE your hybrid workforce © 2023 ePlus inc. Confidential and Proprietary.
Slide 14: ePlus Services: Perspective Means Everything
ePlus Services: Perspective Means Everything Leverage our team’s knowledge, insights and modular approach to design, develop, protect, optimize and manage the technology that fuels your business at every stage of the lifecycle. Our broad portfolio of consultative and managed services includes: Strat
Slide 15: Payment Solutions That Maximize Your Technology Investment Power
Payment Solutions That Maximize Your Technology Investment Power Our dedicated team of financial engineers understands exactly what business outcomes you are trying to achieve with technology, and then structures a customized payment plan that aligns with your budget requirements. Aligning technolog
Slide 16: Targeted M&A Strategy with Track Record of Success
Targeted M&A Strategy with Track Record of Success + April 2023 (Network Solutions + July 2022 + December 2020 + August 2019 Group, a business unit of CCI) + Texas and the South-Central + Upstate New York and the Northeast + Southern and Western Virginia + National provider of networking region + Co
Slide 17: Strategic Alliance Landscape
Strategic Alliance Landscape © 2023 ePlus inc. Confidential and Proprietary.
Slide 18: Customer Experience Across Any Industry
Customer Experience Across Any Industry TECHNOLOGY GOVERNMENT & TELECOM, ENTERTAINMENT FINANCIAL HEALTHCARE OTHER EDUCATION & MEDIA SERVICES 18% 16% 25% 10% 13% 18% Percentages are based on net sales during the twelve months ended September 30, 2023. © 2023 ePlus inc. Confidential and Proprietary.
Slide 19: Why ePlus?
Why ePlus? With a relentless commitment to innovation on behalf of everyone we serve, ePlus helps organizations secure, modernize, optimize and scale every aspect of their IT infrastructure for truly transformational results. “Do what it takes” Industry-leading Comprehensive Proven processes & Flexi
Slide 20: Elaine Marion, Chief Financial Officer
Elaine Marion Chief Financial Officer © 2023 ePlus inc. Confidential and Proprietary.
Slide 21: Strong Financial Results
Strong Financial Results FYE March 31 / Trailing twelve months ended September 30, unaudited + Operations are conducted through two businesses. The technology business sells information technology products, software and services, while the financing business provides lease and financing solutions. +
Slide 22: Strong Financial Results
Strong Financial Results FYE March 31 / Trailing twelve months ended September 30, unaudited + Professional services include advanced professional services, staff augmentation, project management services, cloud consulting services and security services. + Managed services include advanced managed s
Slide 23: Strong Financial Results
Strong Financial Results FYE March 31 / Trailing twelve months ended September 30, unaudited + Consolidated gross profit increased at a compounded annual rate of 12% from FY19 to FY23. Technology business represented 92% of our total gross profit in FY23. + Consolidated gross margin has increased fr
Slide 24: Strong Financial Results
Strong Financial Results FYE March 31 / Trailing twelve months ended September 30, unaudited + From FY19 to FY23, net earnings increased at a compounded annual rate of 17% as a result of focusing on gross profit growth and cost management. + Diluted EPS and non-GAAP EPS CAGR was 18% from FY19 to FY2
Slide 25: Strong Financial Results
Strong Financial Results FYE March 31 / Trailing twelve months ended September 30, 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 income.
Slide 26: Q2 FY24 Financial Results
Q2 FY24 Financial Results * See Non-GAAP Financial Information © 2023 ePlus inc. Confidential and Proprietary.
Slide 27: First Half FY24 Financial Results
First Half FY24 Financial Results * See Non-GAAP Financial Information © 2023 ePlus inc. Confidential and Proprietary.
Slide 28: 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 177 from FY19 to FY23, which represe
Slide 29: Strong Balance Sheet
Strong Balance Sheet $ in millions Assets September 30, 2023 March 31, 2023 + $82 million in cash and equivalents Ca s h a nd equi va l ents $ 82 $ 103 Accounts recei va bl e 723 560 + Financing portfolio of $205 million, Inventory 222 243 representing investments in leases Fi na nci ng i nves tment
Slide 30: Fiscal Year 2024 Guidance
Fiscal Year 2024 Guidance Issued August 7, 2023 + Continue to outperform IT industry + Adjusted EBITDA range of $200 million to spending growth $215 million + Upside driven by focus sectors with + Adjusted EBITDA margin of 9.0% to 9.2%. above market growth, improving supply chain and strong backlog
Slide 31: Q&A
Q&A Mark Marron Elaine Marion Chief Executive Officer Chief Financial Officer © 2023 ePlus inc. Confidential and Proprietary.
Slide 32: Appendix
Appendix © 2023 ePlus inc. Confidential and Proprietary.
Slide 33: Non-GAAP Financial Information
Non-GAAP Financial Information $ in thousands, except per share information Year Ended March 31, TTM Ended September 30, 2023 2022 2021 2020 2019 2023 2022 Net ea rni ngs $ 119,356 $ 105,600 $ 74,397 $ 69,082 $ 63,192 $ 135,059 $ 101,477 Provi s i on for i ncome taxes 43,618 41,284 32,509 26,877 23,
Slide 34: Non-GAAP Financial Information
Non-GAAP Financial Information $ in thousands, except per share information Three Months Ended September 30, Six Months Ended September 30, 2023 2022 2023 2022 Net ea rni ngs $ 32,664 $ 28,469 $ 66,511 $ 50,808 Provi s i on for i ncome taxes 12,316 11,772 24,991 20,463 Depreci a tion a nd a mortiza
Slide 35: Return on Invested Capital
Return on Invested Capital $ in thousands Year Ended March 31, TTM Ended September 30, 2023 2022 2021 2020 2019 2023 2022 Numerator Opera ting i ncome $ 166,162 $ 147,316 $ 106,335 $ 95,279 $ 79,534 $ 180,067 $ 147,851 Les s : Ta xes [1] (44,531) (41,396) (32,326) (26,678) (21,236) (47,304) (41,901)
Slide 36: Thank you!
Thank you! Customer First. Services Led. Results Driven. Investor Relations ePlus inc. Kley Parkhurst, SVP 13595 Dulles Technology Drive Herndon, VA 20171-3413 (703) 984-8150 [email protected] (703) 984-8400 / eplus.com © 2023 ePlus inc. Confidential and Proprietary.