Eplus Inc. · NASDAQ:PLUS
Eplus — Investor Presentation (February 2023)
35 slides from Eplus's investor presentation, Feb 7, 2023
Slide 1: Investor Presentation, February 7, 2023
+ 4 . + . e ) “< Where Technology Means More® -< SS x ePlus inc. Investor Presentation February 7, 2023 © 2023 ePlus inc. Confidential and Proprietary.
Slide 2: Mark Marron, Chief Executive Officer
Mark Marron Chief Executive Officer © 2023 ePlus inc. I 2
Slide 3: ePlus at a glance
OEM Vendor Partnerships Listed companies employees in business for 30+ years customers as a leading, global technology integrator FY22 adjusted gross billings certifications *See Non-GAAP Financial Information FY22 net sales © 2023 ePlus inc.
Slide 4: 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 5: Expanding Footprint
Expanding Footprint SINGAPORE UK Resources to implement locally and globally INDIA INTERNATIONAL OFFICES REGIONAL OFFICE SALES OFFICES MANAGED SERVICES CENTERS INTEGRATION CENTERS 30+ locations serving the U.S., U.K., Europe, and Asia-Pac 24/7/365 managed services operations and integration centers
Slide 6: Independent Provider with Deep Strategic Relationships
Independent Provider with Deep Strategic Relationships SELECT STRATEGIC PARTNERS + All core products plus data center, collaboration, security, enterprise software, and lifecycle services + ePlus has over 170 Cisco certified individuals + Broad next-generation platform for security from the network
Slide 7: Broad and Diverse Customer Base
Broad and Diverse Customer Base GOVERNMENT & TELECOM, ENTERTAINMENT FINANCIAL TECHNOLOGY HEALTHCARE OTHER EDUCATION & MEDIA SERVICES 18% 13% 28% 9% 14% 18% ©© 2023 2023ePlus ePlusinc. inc. I 7
Slide 8: Where technology means more
Where technology means more Helping customers use technology to successfully navigate business challenges is at the center of everything we do. © 2023 2023 ePlus ePlus inc. inc. © I 8
Slide 9: Accelerated Adoption Of Strategic Solutions
Accelerated Adoption Of Strategic Solutions Recalibration of Business Strategies caused by: + Global Pandemic + Talent Shortage + Increased Regulatory & Compliance Requirements + Complex / Distributed Environments + Appeal of “As a Service” © 2023 ePlus inc. I 9
Slide 10: Supporting Digital Modernization
Supporting Digital Modernization Transformative technologies span the breadth of our solutions portfolio and provide customers with a solid but flexible foundation to pivot as needed. Refined over 30 years, our expertise and capabilities position us well to be a partner of choice as customer organiz
Slide 11: Cloud Focused Solutions
Cloud Focused Solutions Building Connected Workforces Through Agility and Modernization DATA MODERN CLOUD DATA CENTER CENTER Servers Advanced PS/MS Converged/HCI Storage Modern Data, Traditional Protection Backup Automation, Containers Basic PS/MS Hybrid Cloud Platforms EMS End-User Compute © 2023 e
Slide 12: Security: Go Beyond and Drive Successful Business Outcomes
Security: Go Beyond and Drive Successful Business Outcomes ePlus designs and delivers effective, integrated cybersecurity programs centered on culture and technology, aimed at mitigating business risk, enabling innovation and empowering digital transformation. Secure Mission Security Technologies Ad
Slide 13: ePlus Services: See the Forest and the Trees
ePlus Services: See the Forest and the Trees We bring deep and broad services expertise across thousands of customers and multiple industries to make the best decisions for your business and discover more from your technology. Strategize Architect Accelerate Optimize for more agility for better outc
Slide 14: Targeted M&A Strategy with Track Record of Success
Targeted M&A Strategy with Track Record of Success + July 2022 + December 2020 + August 2019 + January 2019 + Texas and the South-Central + Upstate New York and the + Southern and Western Virginia + Southern and central Virginia region Northeast + New customers, SLED focus, + Security managed servic
Slide 15: 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 21 – 67% GM 6 – 13% GM 15 – 19% GM 23 – 26% GM 29 – 32% GM GROSS MARGIN 1 INCREASING CUSTOMER VALUE AND VENDOR MARGIN
Slide 16: A Commitment to Corporate Social Responsibility
A Commitment to Corporate Social Responsibility © 2023 ePlus inc.
Slide 17: Who We Are
Who We Are Our unparalleled expertise has been refined over more than three decades of hands-on engagement and experience, helping customers successfully navigate unforeseen and unprecedented challenges while maximizing the return on their technology investments. More depth. More breadth. More persp
Slide 18: Elaine Marion, Chief Financial Officer
Elaine Marion Chief Financial Officer © 2023 ePlus inc. I 18
Slide 19: Strong Financial Results
Strong Financial Results FYE March 31 / Trailing twelve months ended December 31, unaudited + Operations are conducted through two segments. The technology segment sells information technology products, software and services, while the financing segment provides lease and financing solutions. + The
Slide 20: Strong Financial Results
Strong Financial Results FYE March 31 / Trailing twelve months ended December 31, unaudited + Service revenue includes professional services, managed services, and staffing services. + From FY18 to FY22, service revenue has increased at a compound annual rate of 17%. + Service revenue as a percentag
Slide 21: Strong Financial Results
Strong Financial Results FYE March 31 / Trailing twelve months ended December 31, unaudited + Consolidated gross profit increased at a compounded annual rate of 9% from FY18 to FY22. Technology segment represented 89% of our total gross profit in FY22. + Consolidated gross margin has increased from
Slide 22: Strong Financial Results
Strong Financial Results FYE March 31 / Trailing twelve months ended December 31, unaudited + From FY18 to FY22, net earnings increased at a compounded annual rate of 18% as a result of focusing on gross profit growth and cost management. + EPS and non-GAAP EPS CAGR were 19% and 15%, respectively, f
Slide 23: Strong Financial Results
Strong Financial Results FYE March 31 / Trailing twelve months ended December 31, 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 24: Q3 FY23 Financial Results
Q3 FY23 Financial Results * See Non-GAAP Financial Information. EPS and non-GAAP EPS are on a diluted basis. © 2023 ePlus inc. I 24
Slide 25: Q3 FY23 YTD Financial Results
Q3 FY23 YTD Financial Results * See Non-GAAP Financial Information. EPS and non-GAAP EPS are on a diluted basis. © 2023 ePlus inc. I 25
Slide 26: 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 303 from FY18 to FY22, which represe
Slide 27: Strong Balance Sheet
Strong Balance Sheet $ in millions + $99 million in cash and equivalents Assets December 31, 2022 March 31, 2022 Ca s h a nd equi va l ents $ 99 $ 155 + Financing portfolio of $186 million, Accounts recei va bl e 746 479 Inventory 245 155 representing investments in leases and notes Fi na nci ng i n
Slide 28: Customized Solutions. Measurable Results. Q & A
Customized Solutions. Measurable Results. Cloud Positioned squarely at the forefront of today’s most Data Center transformative technologies, ePlus’ solutions, services, and financing expertise help organizations imagine, Security implement, and achieve more from technology. Networking … Q&A … Colla
Slide 29: Appendix
Appendix © 2023 ePlus inc. I 29
Slide 30: Non-GAAP Financial Information
Non-GAAP Financial Information $ in thousands Year Ended March 31, TTM Ended December 31, 2022 2021 2020 2019 2018 2022 2021 Technol ogy s egment net s a l es [1] $ 1,733,036 $ 1,507,954 $ 1,530,138 $ 1,329,520 $ 1,372,765 $ 1,951,439 $ 1,645,435 Cos ts i ncurred rel a ted to s a l es of thi rd-pa r
Slide 31: Non-GAAP Financial Information
Non-GAAP Financial Information $ in thousands, except per share information Year Ended March 31, TTM Ended December 31, 2022 2021 2020 2019 2018 2022 2021 GAAP: Ea rni ngs before ta x $ 146,884 $ 106,906 $ 95,959 $ 86,230 $ 83,891 $ 155,057 $ 135,529 Sha re ba s ed compens a ti on 7,114 7,167 7,954
Slide 32: Non-GAAP Financial Information
Non-GAAP Financial Information $ in thousands, except per share information Three Months Ended December 31, Nine Months Ended December 31, 2022 2021 2022 2021 Technol ogy s egment net s a l es $ 611,774 $ 476,975 $ 1,532,037 $ 1,313,634 Cos ts i ncurred rel a ted to s a l es of thi rd-pa rty ma i nt
Slide 33: Return on Invested Capital
Return on Invested Capital $ in thousands Year Ended March 31, TTM Ended December 31, 2022 2021 2020 2019 2018 2022 2021 Numerator Opera ti ng i ncome $ 147,316 $ 106,335 $ 95,279 $ 79,534 $ 84,239 $ 158,224 $ 136,430 Les s : Ta xes [1] (41,396) (32,326) (26,678) (21,236) (28,894) (45,220) (38,878)
Slide 34: Investor Relations Contact
Kley Parkhurst, SVP (703) 984-8150 [email protected] ePlus inc. 13595 Dulles Technology Drive Herndon, VA 20171-3413 (703) 984-8400 / eplus.com 34
Slide 35: 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 Section 27A of the Securities Act of 1933, as amended, and Section 21E of the Securities Exchange Act of 1934, as amended, or “Exchange Ac