Eplus Inc. · NASDAQ:PLUS
Eplus — Investor Presentation (May 2024)
30 slides from Eplus's investor presentation, May 2024
Slide 1: ePlus inc. Investor Presentation
ePlus inc. Investor Presentation + May 2024 © 2024 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 © 2024 ePlus inc. Confidential and Proprietary.
Slide 4: By the Numbers
By the Numbers 30+ Years 11% $2.23B $3.33B as a leading, global Listed companies FY24 net sales FY24 gross billings technology integrator in business for 30+ years 7,000+ 1,500+ 4,600+ 1,900 certifications OEM Vendor customers employees and Partnerships as of Mar 31, 2024 accreditations © 2024 ePlus
Slide 5: Key Five Year CAGRs
Key Five Year CAGRs Fiscal Year 2020 – Fiscal Year 2024 Net sales 9% Services revenue 11% Gross profit 9% Diluted EPS 14% Our growing portfolio of solutions and services has facilitated consistent top-and bottom-line growth, creating operating leverage for our business
Slide 6: 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 7: Growing Global Capabilities
Growing Global Capabilities + 30+ locations serving customers around the world + Integration centers strategically placed in the U.S. + Resources and teams to implement globally and locally
Slide 8: Comprehensive Set of Solutions & Services
Comprehensive Set of Solutions & Services SERVICES PROFESSIONAL SERVICES | MANAGED SERVICES ADVISORY & CONSULTING SERVICES STRATEGIC TECHNOLOGY STAFFING LIFECYCLE CX SOLUTIONS | SOFTWARE LICENSE OPTIMIZATION AI ASSESS, ENABLE, SECURE, IMPLEMENT, AMPLIFY SECURITY SECURITY SOLUTIONS | SECURITY ADVISOR
Slide 9: Key Strategic Focus Areas
Key Strategic Focus Areas Cloud: Security: Artificial Journey to Compromise Intelligence: Modernization Nothing Ignite Modernize data center Go Beyond managing threats by Assess, enable, secure, infrastructures, extend capabilities, building an infrastructure that implement and amplify the accelerat
Slide 10: Broad Portfolio of ePlus Services
Broad Portfolio of ePlus Services Our services are PROFESSIONAL designed with CX in SERVICES mind, offering options MANAGED SERVICES ranging from STRATEGIZE ARCHITECT ADVISORY & consultative to managed, For more agility For better outcomes CONSULTING that help customers SERVICES realize the full val
Slide 11: Financial Services: A Bridge to the Technology You Need
Financial Services: A Bridge to the Technology You Need Aligning technology with financing options provides cost predictability, flexible contract terms and fast access to hardware, software and services. © 2024 ePlus inc. Confidential and Proprietary.
Slide 12: 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 24 – 74% GM 7 – 13% GM 18 – 22% GM 24 – 26% GM 30 – 33% GM GROSS MARGIN 1 Increasing customer value and vendor margin
Slide 13: Targeted M&A Strategy with Track Record of Success
Targeted M&A Strategy with Track Record of Success + May 2017 + September 2017 + January 2019 + August 2019 + Cloud-based services, + Chicago and Indianapolis + Southern and central + Southern and Western solutions and DevOps data centers Virginia Virginia + Offices in Milpitas, CA and + New geograp
Slide 14: Customer Experience Across Any Industry
Customer Experience Across Any Industry TECHNOLOGY GOVERNMENT & TELECOM, ENTERTAINMENT FINANCIAL HEALTHCARE OTHER EDUCATION & MEDIA SERVICES 17% 15% 25% 11% 13% 19% Percentages are based on net sales during the twelve months ended March 31, 2024. © 2024 ePlus inc. Confidential and Proprietary.
Slide 15: ePlus in Action
ePlus in Action CLOUD Children’s Hospital: Cloud Disaster SECURITY Industrial Manufacturing: vCISO Recovery Challenge: Significant security-related audit requirements arose Challenge: Current disaster recovery solution was unable to meet the without sufficient internal support resources to put polic
Slide 16: Customer Innovation Center
Customer Innovation Center New 80,000 square-foot facility supports fulfillment of global technology and logistics services for thousands of customers in 50+ countries • Technology Demonstration Lab • Configuration • Deployment • Warehouse • Briefing Center
Slide 17: Elaine Marion, Chief Financial Officer
Elaine Marion Chief Financial Officer © 2024 ePlus inc. Confidential and Proprietary.
Slide 18: Strong Financial Results
Strong Financial Results FYE March 31 + 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. + The majority of our net sales are derived from our tec
Slide 19: Strong Financial Results
Strong Financial Results FYE March 31 + Professional services include advanced professional services, staff augmentation, project management services, cloud consulting services and security services. + Managed services include advanced managed services, service desk, storage-as-a- service, cloud hos
Slide 20: Strong Financial Results
Strong Financial Results FYE March 31 + Consolidated gross profit increased at a compounded annual rate of 9% from FY20 to FY24. Technology business represented 92% of our total gross profit in FY24. + Consolidated gross margin has increased from 24.6% in FY20 to 24.8% in FY24. + Technology business
Slide 21: Strong Financial Results
Strong Financial Results FYE March 31 + From FY20 to FY24, net earnings and diluted EPS increased at a compounded annual rate of 14% as a result of focusing on gross profit growth and cost management. + Non-GAAP EPS increased at a compounded annual rate of 13% from FY20 to FY24. + Non-GAAP EPS exclu
Slide 22: Strong Financial Results
Strong Financial Results FYE March 31 + 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. Interest on notes payable and depreciation expense pre
Slide 23: 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, AI, and digital infrastructure. + Customer facing personnel increased by 264 from FY20 to FY24, which rep
Slide 24: Strong Balance Sheet
Strong Balance Sheet Assets March 31, 2024 March 31, 2023 + $253 million in cash and equivalents (a mounts i n mi l l i ons ) + Financing portfolio of $182 million, Ca s h a nd equi va l ents $ 253 $ 103 Accounts recei va bl e 691 560 representing investments in leases Inventory 140 243 and notes Fi
Slide 25: Fiscal Year 2025 Guidance
Fiscal Year 2025 Guidance + Continue to outperform IT industry + Revenue growth of between 3% to 6% spending growth over the prior fiscal year + Upside driven by focus on sectors with + Adjusted EBITDA of between $200 above market growth million to $215 million © 2024 ePlus inc. Confidential and Pro
Slide 26: Q&A
Q&A Mark Marron Elaine Marion Chief Executive Officer Chief Financial Officer © 2024 ePlus inc. Confidential and Proprietary.
Slide 27: Appendix
Appendix © 2024 ePlus inc. Confidential and Proprietary.
Slide 28: Non-GAAP Financial Information
Non-GAAP Financial Information $ in thousands, except per share information Year Ended March 31, 2024 2023 2022 2021 2020 Net ea rni ngs $ 115,776 $ 119,356 $ 105,600 $ 74,397 $ 69,082 Provi s i on for i ncome taxes 45,317 43,618 41,284 32,509 26,877 Depreci a tion a nd a mortiza tion [1] 21,025 13,
Slide 29: Return on Invested Capital
Return on Invested Capital $ in thousands Year Ended March 31, 2024 2023 2022 2021 2020 Numerator Opera ting i ncome $ 158,257 $ 166,162 $ 147,316 $ 106,335 $ 95,279 Les s : Ta xes [1] (44,470) (44,531) (41,396) (32,326) (26,678) Net opera ting profi t a fter taxes $ 113,787 $ 121,631 $ 105,920 $ 74
Slide 30: 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 © 2024 ePlus inc. Confidential and Proprietary.