Eplus Inc. · NASDAQ:PLUS
Eplus — Non-Deal Roadshow (April 2006)
21 slides from Eplus's roadshow presentation, April 2006
Slide 1: ePlus Overview
ePlus Overview April 2006 ePlus inc. -- Proprietary and Confidential 1
Slide 2: Safe Harbor Statement
Safe Harbor Statement The statements made during this presentation, which are not historical facts, may be deemed to contain forward-looking statements within the meaning of Section 21E of the Securities Exchange Act of 1934 . These statements include words or phrases like “will likely result,” “are
Slide 3: Who is ePlus?
Who is ePlus? An Emerging World-Class IT Sales and Services Platform, Differentiated by Proprietary Software, Advanced Vendor Relationships, and Unique Business Processes, with a Singular and Focused Mission to Improve the Financial Performance of Our Customers in the Indirect Supply Chain Technolog
Slide 4: ePlus Goals
ePlus Goals + Create platform of customers • Be the ‘ADP’ of the Supply Chain • OneSource + Strive for continuous improvement; be a leader + Robust, diverse, defendable: • Earnings • Customers • Products + Drive earnings from cross-selling ePlus inc. -- Proprietary and Confidential 4
Slide 5: Market Drivers
Market Drivers Customers Need: + Simplified and efficient sourcing, service, and support processes + Reduced vendor management costs + Compliance with purchasing standards and policies + Consolidated spend reporting and proactive asset management + Single point of engagement and delivery for service
Slide 6: Customer Focused
Customer Focused + More than 2,500 direct customer relationships Commercial : Middle Market ($10MM+) & F1000 Government & Higher education & institutional + 10 Acquisitions (1996-2004) + 1/3 Total Employees in Sales and Marketing + 33 locations in the United States + Solutions driven by customer
Slide 7: Corporate Summary
Corporate Summary + Founded 1990, IPO in 1996, secondary 2000 + Headquartered in Herndon, VA + 10 Acquisitions + 670 Employees + As of 12/31/06: Goodwill: $26.1mm Equity: $131.1mm $16.07/share or $12.87/tangible Treasury Stock: $28.6mm + FYE05 results include revenue from a $37mm patent infrin
Slide 8: Market Data
Market Data As of March 8, 2006: + Recent price $14.40 + 52-week range $10.26-$14.94 + Shares outstanding 8.2 million + Market capitalization $117 million + Management ownership 32%* + Institutional holdings 42%* Source: Nasdaq Online *as of latest available filings ePlus inc. -- Proprietary and Con
Slide 9: Financial Performance
Financial Performance + Cash Flow From Operations (FY05) $41.5MM (includes Ariba settlement) + Liquidity $17.4MM cash (12/31/05) $35MM credit agreement $75MM floor planning + Balance Sheet Note Non-Recourse Debt is Non-Recourse As of 12/31/05: • Lease Assets: $ 205.8MM • Non-Recourse Deb
Slide 10: Business Segments
Business Segments Segment Financial Performance Technology Business Unit Finance Business Unit + IT Sales & Services + Leasing + Direct Marketing of IT Products + Business Processes + Advanced Enterprise Services + Lifecycle Management Services + Software Year Ended March 31 ($MM) Year Ended March 3
Slide 11: Why This Mix?
Why This Mix? + IT Centric – IT Is Universal + Business Processes Common to All Enterprises Select Vendors Select Equipment Requisition, Order, Receive Pay, Finance, Optimize, Reduce TCO Visibility, Spend Mgmt, SOX Own, Dispose, Risk Management Install, Monitor, Migrate, Improve + Netw
Slide 12: IT Solutions
IT Solutions + IT Fulfillment for Tier 1 suppliers such as Manufacturer Manufacturer Authorization Level IBM, Cisco, HP & Others Hewlett Packard Cisco Systems HP Platinum/VPA (National) Cisco Gold DVAR (National) Cisco: Microsoft Microsoft Gold (National) Sun Microsystems Sun iForce Strategic Part
Slide 13: Leasing
Leasing + Full lifecycle management for lease process Financial benefits of lease financing Leverages customers’ existing investments Enforces controls and compliance Delivers operating efficiency + Contract Monitoring + Change Management + Deployment Planning + Electronic Business Process +
Slide 14: Software
Software Will become the On-Demand Portal for: Enterprise Applications + Procurement + Product Content Management + Asset Management + Spend Management & Analysis + Document Imaging + Order Automation ePlus inc. -- Proprietary and Confidential 14
Slide 15: Synergies
Synergies Why Enterprise Cost Management Works + Leasing consists of business processes that ePlus has systemized for customers via internal process optimization & software + IT Sales & Services generates revenue growth and is platform for cross-selling + Software differentiates ePlus’ solutions in
Slide 16: Management
Management Management Phillip G. Norton, Chairman, CEO, President Bruce M. Bowen, EVP, President, ePlus Group (Leasing Co) Kenneth G. Farber, President, ePlus Systems (Software) Steven J. Mencarini, CFO Kleyton L. Parkhurst, SVP Corp Dev., M&A, IR Erica S. Stoecker, General Counsel Board of Director
Slide 17: Growth Strategies
Growth Strategies + Focus on customer base: double leasing and professional services penetration + Optimize product mix to enhance gross IT sales margin + Use OneSource for point of sale customer interface: add-on products and services; onramp to all of ePlus + Enhance organic growth through increme
Slide 18: Investment Considerations
Investment Considerations + Core businesses provide: Solid financial foundation Business process experience and expertise Technology platform + Broad cross section of commercial, municipal, and federal customers + Direct marketing & direct sales force + Intellectual property portfolio + We are
Slide 19: For More Information
For More Information Kley Parkhurst, SVP [email protected] (703) 984-8150 www.eplus.com ePlus inc. 13595 Dulles Technology Drive Herndon, VA 20171-3413 (703) 984-8400 ePlus inc. -- Proprietary and Confidential 19
Slide 20: Marketing Strategy
Marketing Strategy + Direct End-User Salesforce 211 people in sales and marketing 33 locations nationwide Segmented by business + Target Customer Commercial • Middle Market ($10MM+) • F1000 Government Higher education & institutional + eCommerce Order Automation & Lifecycle Management
Slide 21: History of Innovation
History of Innovation Event Timeline 1978-1990: Senior management team together at prior company 1990: Company founded ¹ 1990-1996: Focus on leasing, business process, and lease/equipment brokerage $ 1996: IPO ($10mm)(holding company formed) 9 1993-1998: Leasing business processes developed (Manage+