Eplus Inc. · NASDAQ:PLUS
Eplus — Investor Presentation (May 2021)
28 slides from Eplus's investor presentation, May 2021
Slide 1: Investor Presentation
ePlus inc. Investor Presentation May 2021
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 © 2021 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 Technologies, HPE, NetApp, Palo Alto Networks and VMware + FY21 adjusted gross billings: $2.3 billion 6% CAGR FY17-FY21 + FY21 net sales: $1
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 25+ Years of Experience Technology, inc. Joined ePlus in 1997 25+ Years o
Slide 6: 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. © 2021 ePlus © 2021 ePlus inc. inc. © 2021 ePlus inc. I 6
Slide 7: ePlus Forward Focused Solutions
ePlus Forward Focused Solutions SECURITY SERVICES FINANCING © 2021 ePlus inc. ©©2021 2021ePlus ePlusinc. inc. I 7
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 25 – 65% GM 5 – 13% GM 13 – 16% GM 20 – 25% GM 29 – 32% GM GROSS MARGIN 1 INCREASING CUSTOMER VALUE AND VENDOR MARGIN
Slide 9: Expanding Footprint
Expanding Footprint SINGAPORE UK Resources to implement locally and globally INDIA INTERNATIONAL OFFICES REGIONAL OFFICE SALES OFFICES MANAGED SERVICES CENTERS INTEGRATION CENTERS 35+ locations serving the U.S., Europe, and Asia-Pac 24/7/365 managed services operations and integration centers strate
Slide 10: Targeted M&A Strategy with Track Record of Success
Targeted M&A Strategy with Track Record of Success + December 2020 + August 2019 + January 2019 + September 2017 + Upstate New York and the + Southern and Western Virginia + Southern and central Virginia + Chicago and Indianapolis data Northeast centers + New customers, SLED focus, + Security manage
Slide 11: Independent Provider with Deep Strategic Relationships
Independent Provider with Deep Strategic Relationships SELECT STRATEGIC PARTNERS + Excellent channel partner for ePlus, representing 35% of technology segment net sales 1 + All core products plus data center, collaboration, security, enterprise software, and COMPLEMENTED BY ADDITIONAL RELATIONSHIPS
Slide 12: Broad and Diverse Customer Base
Broad and Diverse Customer Base GOVERNMENT & TELECOM, ENTERTAINMENT FINANCIAL TECHNOLOGY HEALTHCARE OTHER EDUCATION & MEDIA SERVICES 17% 16% 25% 13% 13% 16% ©© 2021 2021ePlus ePlusinc. inc. I 12
Slide 13: A Commitment to Corporate Social Responsibility
A Commitment to Corporate Social Responsibility I 13
Slide 14: Why ePlus
Why ePlus Technology evolves quickly, and every new development exposes our customers to new opportunities and new challenges. ePlus is the partner that can help them navigate with confidence and agility. “Do what it takes” Industry-leading Comprehensive Proven processes Highly-accessible, dedicatio
Slide 15: Elaine Marion, Chief Financial Officer
Elaine Marion Chief Financial Officer © 2021 ePlus inc. I 15
Slide 16: Strong Financial Results
Strong Financial Results FYE March 31 + 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 majority of our net sales are derived from our technol
Slide 17: Strong Financial Results
Strong Financial Results FYE March 31 + Service revenue includes professional services, managed services, and staffing services. + From FY17 to FY21, service revenue has increased at a compound annual rate of 20%. + Service revenue as a percentage of net sales grew from 7.3% in FY17 to 12.9% in FY21
Slide 18: Strong Financial Results
Strong Financial Results FYE March 31 + Consolidated gross profit increased at a compounded annual rate of 7% from FY17 to FY21. Technology segment represented 88% of our total gross profit in FY21. + Consolidated gross margin has increased from 22.5% in FY17 to 25.1% in FY21. + Technology segment g
Slide 19: Strong Financial Results
Strong Financial Results FYE March 31 + From FY17 to FY21, net earnings increased at a compounded annual rate of 10% as a result of focusing on revenue and gross profit growth. + EPS and non-GAAP EPS CAGR were 11% and 7%, respectively, from FY17 to FY21. + Non-GAAP EPS excluded other income (expense
Slide 20: 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 21: 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 358 from FY17 to FY21, which represe
Slide 22: Strong Balance Sheet
Strong Balance Sheet $ in millions Assets March 31, 2021 March 31, 2020 + $130 million in cash and equivalents Cash and equivalents $ 130 $ 86 Accounts receivable 433 412 + Financing portfolio of $196 million, Inventory 70 50 Financing investments 196 144 representing investments in leases and notes
Slide 23: 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 24: Appendix
Appendix © 2021 ePlus inc. I 24
Slide 25: Non-GAAP Financial Information
Non-GAAP Financial Information $ in thousands Year Ended March 31, 2021 2020 2019 2018 2017 Technology segment net sales [1] $ 1,507,954 $ 1,530,138 $ 1,329,520 $ 1,372,765 $ 1,294,937 Costs incurred related to sales of third-party maintenance, software assurance and subscirption/SaaS licenses, and
Slide 26: Non-GAAP Financial Information
Non-GAAP Financial Information $ in thousands, except per share information Year Ended March 31, 2021 2020 2019 2018 2017 GAAP: Earnings before tax $ 106,906 $ 95,959 $ 86,230 $ 83,891 $ 86,112 Share based compensation 7,167 7,954 7,244 6,464 6,025 Acquisition and integration expense 271 1,676 1,813
Slide 27: Return on Invested Capital
Return on Invested Capital $ in thousands Year Ended March 31, 2021 2020 2019 2018 2017 Numerator Operating income $ 106,335 $ 95,279 $ 79,534 $ 84,239 $ 85,732 Less: Taxes [1] (32,326) (26,678) (21,236) (28,894) (35,407) Net operating profit after taxes $ 74,009 $ 68,601 $ 58,298 $ 55,345 $ 50,325
Slide 28: Investor Relations
Investor Relations Kley Parkhurst, SVP (703) 984-8150 [email protected] ePlus inc. 13595 Dulles Technology Drive Herndon, VA 20171-3413 (703) 984-8400 / eplus.com © 2021 ©2021 ePlus inc. All ePlus inc. Confidential rights reserved. andand ePlus, the ePlus logo, Proprietary. all referenced product