Eplus Inc. · NASDAQ:PLUS
Eplus — Investor Presentation (May 2018)
25 slides from Eplus's investor presentation, May 2018
Slide 1: Investor Presentation
Investor Presentation May 2018 © 2018 ePlus inc.
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 © 2018 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/EMC, HPE, NetApp, Palo Alto Networks and VMware + FY18 net sales: $1.4 billion 7% CAGR FY14-FY18 + FY18 non-GAAP earnings per share: $4.40 *
Slide 5: Experienced Leadership Team
Experienced Leadership Team Mark Phil Elaine Marron Norton Marion Executive Chairman Chief Financial Officer Chief Executive Officer Joined ePlus in 1994 Joined ePlus in 1998 Joined ePlus in 2005 45+ Years of Experience 25+ Years of Experience 30+ Years of Experience Darren Dan Mark Raiguel Farrell
Slide 6: 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 17 – 23% GM 29 – 32% GM GROSS MARGIN 1 INCREASING CUSTOMER VALUE AND VENDOR MARGIN
Slide 7: Expanding Footprint
Expanding Footprint ENGLAND INDIA INTERNATIONAL OFFICES REGIONAL OFFICE SALES OFFICES MANAGED SERVICES CENTERS INTEGRATION CENTERS 40+ locations serving the U.S., Europe, and Asia-Pac 5 Managed Services Centers and 6 Integration Centers throughout the U.S. 400+ technical and support resources certif
Slide 8: Targeted M&A Strategy with Track Record of Success
Targeted M&A Strategy with Track Record of Success + September 2017 ($38.4 million) + May 2017 ($10.0 million) + December 2016 ($13.1 million) + December 2015 ($16.6 million) division of CCI + Chicago and Indianapolis data + Cloud-based services, solutions + Expand security offerings centers and Dev
Slide 9: Customized Solutions
Customized Solutions Positioned squarely at the forefront of today’s most transformative technologies… Cloud Security Digital Infrastructure Services Financing and Consumption Models Create customized Deliver cybersecurity Support the next phase Apply a lifecycle roadmaps, then programs built upon o
Slide 10: Measurable Results
Measurable Results ePlus helps organizations imagine, implement, and achieve more from technology. Cloud Security Digital Infrastructure Services Financing and Consumption Models Enterprise Defined Strategy and Risk IoT and Analytics Enhanced Maintenance Data Center Management SD-WAN Support As-a-Se
Slide 11: Independent Provider with Deep Strategic Relationships
Independent Provider with Deep Strategic Relationships SELECTED STRATEGIC PARTNERS + COMPLEMENTED BY ADDITIONAL EMERGING RELATIONSHIPS VENDORS SECURITY + Excellent channel partner for ePlus, representing 43% of technology segment net sales 1 + All core products plus data center, security, lifecycle
Slide 12: Broad and Diverse Customer Base
Broad and Diverse Customer Base 24% 17% 14% 15% 14% 16% GOVERNMENT TELECOM, FINANCIAL TECHNOLOGY ENTERTAINMENT, HEALTHCARE OTHER & EDUCATION SERVICES & MEDIA © 2018 ePlus inc. I 12
Slide 13: Sampling of Our Customers
Sampling of Our Customers GOVERNMENT TELECOM, FINANCIAL TECHNOLOGY ENTERTAINMENT, HEALTHCARE OTHER © 2018 ePlus inc. I 13 & EDUCATION SERVICES & MEDIA
Slide 14: Why ePlus
Why ePlus In today’s constantly changing, complex tech landscape, organizations need a partner that can solve short-term challenges with sustainable solutions that ensure long-term success. “Do what it takes” Industry-leading Comprehensive Proven processes Highly-accessible, dedication consultative
Slide 15: Elaine Marion, Chief Financial Officer
Elaine Marion Chief Financial Officer © 2018 ePlus inc. I 15
Slide 16: Strong Financial Results
Strong Financial Results FYE March 31 Net Sales and Adjusted Gross Billings * ($mm) + Operations are conducted through two segments. The technology segment sells $2,000 $1,891 information technology products, software and $1,776 services, while the financing segment provides $1,556 $1,500 $1,435 $1,
Slide 17: Strong Financial Results
Strong Financial Results FYE March 31 Gross Profit and Gross Margin, Product and Services ($mm) + Consolidated gross profit increased at a compounded annual rate of 11% from FY14 to $400 35.0% FY18, driven by our technology segment, which $323 represented 89% of our total gross profit in $300 $300 3
Slide 18: Strong Financial Results
Strong Financial Results FYE March 31 Net Earnings and Non-GAAP Net Earnings * ($mm) + From FY14 to FY18, net earnings increased at a $65 compounded annual rate of 12% and non-GAAP $55 net earnings increased 11% as a result of focusing on revenue growth and controlling $45 $59 $61 $53 $55 overhead e
Slide 19: Strong Financial Results
Strong Financial Results FYE March 31 + Adjusted EBITDA represents net earnings before Adjusted EBITDA * ($mm) interest expense, depreciation and amortization, share based compensation, acquisition and $110 16.0% $103 integration expenses, provision for income taxes, $99 and other income. Interest o
Slide 20: Growing Productivity While Strategically Expanding Workforce
Growing Productivity While Strategically Expanding Workforce Employee Headcount Growth by Function Adj. Gross Billings Per Sales and Marketing Employee ($mm) 1,400 $4.0 $3.8 1,260 8 $3.5 $3.5 1,200 80 934 207 $3.0 1,000 9 82 $2.5 800 181 466 $2.0 FY14 FY18 600 293 Adj. Gross Billings Per Employee ($
Slide 21: Strong Balance Sheet
Strong Balance Sheet $ in millions Assets March 31, 2018 March 31, 2017 + $118 million in cash and equivalents Ca s h a nd equi va l ents $ 118 $ 110 Accounts recei va bl e 297 291 + $250 million financing facility with Wells Inventory 40 93 Fargo Commercial Distribution Finance, LLC Fi na nci ng i
Slide 22: Appendix
Appendix © 2018 ePlus inc. I 22
Slide 23: Non-GAAP Financial Information
Non-GAAP Financial Information $ in thousands, except per share information Year Ended March 31, 2018 2017 2016 2015 2014 Sa l es of product a nd s ervi ces $ 1,364,145 $ 1,290,228 $ 1,163,337 $ 1,100,884 $ 1,013,374 Cos ts i ncurred rel a ted to s a l es of thi rd pa rty s oftwa re a s s ura nce, m
Slide 24: Return on Invested Capital
Return on Invested Capital $ in thousands Year Ended March 31, 2018 2017 2016 2015 2014 Numerator Opera ting i ncome $ 84,239 $ 85,732 $ 75,751 $ 70,710 $ 60,098 Les s : Ta xes [1] (26,535) (27,006) (23,862) (22,274) (18,931) Net opera ting profi t a fter taxes $ 57,704 $ 58,726 $ 51,889 $ 48,436 $
Slide 25: Investor Relations
Investor Relations ePlus inc. Kley Parkhurst, SVP 13595 Dulles Technology Drive Herndon, VA 20171-3413 (703) 984-8150 (703) 984-8400 / eplus.com [email protected] ©2018 ePlus inc. All rights reserved. ePlus, the ePlus logo, and all referenced product names are trademarks or registered trademarks o