ePlus inc. -- Proprietary and Confidential


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ePlus inc. -- Proprietary and Confidential

  1. 1. e Plus Overview September, 2005
  2. 2. Safe Harbor Statement <ul><li>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 expected to,” “will continue,” “is anticipated,” “estimate,” “project” or similar expressions. Such statements are subject to certain risks and uncertainties that could cause actual results to differ materially from historical earnings and those presently anticipated or projected due to certain risks and uncertainties, including, without limitation, the existence of demand for, and acceptance of, our services; our ability to adapt our services to meet changes in market developments; the impact of competition in our markets; the possibility of defects in our products or catalog content data; our ability to hire and retain sufficient personnel; our ability to protect our intellectual property; the creditworthiness of our customers; our ability to raise capital and obtain non-recourse financing for our transactions; our ability to realize our investment in leased equipment; our ability to reserve adequately for credit losses; fluctuations in our operating results and our reliance on our management team. We also refer you to the disclosure contained in our Annual Report on Form 10-K for the year ended March 31, 2005 under the heading “Risks Factors” for a description of these risks and uncertainties. </li></ul><ul><li>We wish to caution you that these factors could affect our financial performance and could cause actual results for future periods to differ materially from any opinions or statements expressed with respect to future periods in any current statements. </li></ul><ul><li>We do not undertake and specifically decline any obligation to publicly release the result of any revisions which may be made to any forward looking statements to reflect events or circumstances after the date of such statements or to reflect the occurrence of anticipated or unanticipated events. </li></ul>
  3. 3. Mission Statement To be the Leading Provider of IT and Process Automation Solutions to Improve the Bottom Line Performance of Our Customers
  4. 4. Market Data <ul><li>+ Recent price $12.55 </li></ul><ul><li>+ 52-week range $9.32-$17.14 </li></ul><ul><li>+ Shares outstanding 8.5 million </li></ul><ul><li>+ Estimated float 5.8 million </li></ul><ul><li>+ Market capitalization $106 million </li></ul><ul><li>+ Management ownership 31% </li></ul><ul><li>+ Institutional holdings 49% (3/31/05) </li></ul><ul><li>+ Year Ended March 31 </li></ul>As of September 20, 2005:
  5. 5. Corporate Summary <ul><li>Founded 1990, IPO in 1996 </li></ul><ul><li>+ Headquartered in Herndon, VA (metropolitan Washington, DC) </li></ul><ul><li>$576MM Revenues FY05 </li></ul><ul><li>+ Over 2,500 customers </li></ul><ul><li>+ 10 Acquisitions (1996-2004) </li></ul><ul><li>+ 640 Employees </li></ul><ul><li>+ 211 in Sales and Marketing </li></ul><ul><li>33 locations in U.S. </li></ul>
  6. 6. Business Summary <ul><li>IT Sales & Services </li></ul><ul><ul><li>Direct Marketing of IT Products </li></ul></ul><ul><ul><li>Advanced Enterprise Services </li></ul></ul><ul><li>Leasing </li></ul><ul><ul><li>Financing </li></ul></ul><ul><ul><li>Process Automation </li></ul></ul><ul><ul><li>Payment Processing </li></ul></ul><ul><li>Software </li></ul><ul><ul><li>Enterprise </li></ul></ul><ul><ul><li>On Demand </li></ul></ul>
  7. 7. Marketing Strategy <ul><li>Direct End-User Salesforce </li></ul><ul><ul><li>211 people in sales and marketing </li></ul></ul><ul><ul><li>33 locations nationwide </li></ul></ul><ul><ul><li>Segmented by business </li></ul></ul><ul><li>Target Customer </li></ul><ul><ul><li>Commercial </li></ul></ul><ul><ul><ul><li>Middle Market ($10MM+) </li></ul></ul></ul><ul><ul><ul><li>F1000 </li></ul></ul></ul><ul><ul><li>Government </li></ul></ul><ul><ul><li>Higher ed & institutional </li></ul></ul><ul><li>eCommerce </li></ul><ul><ul><li>Order Automation & Lifecycle Management solutions for enterprise customers (eProcurement, content management, asset management, etc.) </li></ul></ul>
  8. 8. IT Solutions <ul><li>IT Fulfillment for Tier 1 suppliers such as IBM, Cisco, HP & Others </li></ul><ul><li>Provider of Advanced Enterprise Technology Services: </li></ul><ul><ul><li>IPT </li></ul></ul><ul><ul><li>Security </li></ul></ul><ul><ul><li>Network </li></ul></ul><ul><ul><li>Storage </li></ul></ul><ul><ul><li>Managed Services </li></ul></ul><ul><ul><li>Outsourcing </li></ul></ul><ul><li>Order Automation (OneSource) </li></ul><ul><li>Generates incremental revenue from software & leasing customers </li></ul>
  9. 9. <ul><li>Full life cycle management for lease process </li></ul><ul><ul><li>Financial benefits of lease financing </li></ul></ul><ul><ul><li>Leverages customers existing investments </li></ul></ul><ul><ul><li>Enforces controls and compliance </li></ul></ul><ul><ul><li>Delivers operating efficiency </li></ul></ul><ul><li>Contract Monitoring </li></ul><ul><li>Warranty, Maintenance & Service Management </li></ul><ul><li>Change Management </li></ul><ul><li>Deployment Planning </li></ul><ul><li>Electronic Payment Service </li></ul><ul><li>Electronic Business Process </li></ul><ul><li>Data Standardization </li></ul><ul><li>Category Drilldown & Product Detail </li></ul><ul><li>Order Audit Trail </li></ul><ul><li>Automatic Workflow Facilitation </li></ul>Leasing
  10. 10. <ul><li>Procurement </li></ul><ul><li>Product Content Management </li></ul><ul><li>Asset Management </li></ul><ul><li>Spend Management & Analysis </li></ul><ul><li>Document Imaging </li></ul><ul><li>Order Automation </li></ul>Software
  11. 11. Synergies <ul><li>Leasing consists of business processes which e Plus has automated for customers via internal process optimization & software </li></ul><ul><li>IT Sales & Services generates revenue growth and is platform for cross-selling </li></ul><ul><li>Software differentiates e Plus’ solutions in core business & binds entire supply chain </li></ul>Result <ul><li>Multiple entry points to customer </li></ul><ul><li>Outsourcing creates stickiness </li></ul><ul><li>Incremental revenue generated by multiple cross-sell & up-sell opportunities </li></ul><ul><li>Customers become reliant on e Plus </li></ul>Why Enterprise Cost Management Works
  12. 12. Financial Performance <ul><li>Cash Flow </li></ul><ul><ul><li>From Operations (FY05) $41.5MM </li></ul></ul><ul><li>Liquidity </li></ul><ul><ul><li>$38.9MM cash 3/31/05 </li></ul></ul><ul><ul><li>$45MM credit agreement </li></ul></ul><ul><ul><li>$75MM floorplanning </li></ul></ul><ul><li>Stock Repurchase (since 9/01) </li></ul><ul><ul><li>2.3MM shares </li></ul></ul><ul><ul><li>$22.9MM </li></ul></ul><ul><li>Diverse Sources of Revenues & Earnings </li></ul><ul><ul><li>Sales of Product & Services </li></ul></ul><ul><ul><li>Lease Revenue & Fees </li></ul></ul><ul><ul><li>License Fees & Subscription </li></ul></ul>$0.96 $1.02 $2.68 Diluted EPS $9.7 $10.1 $25.3 Net Earnings $300 $330 $576 Revenues 2003 2004 2005 ($/millions except EPS) Years Ended March 31,
  13. 13. Management <ul><li>Management </li></ul><ul><li>Phillip G. Norton, Chmn, CEO, President </li></ul><ul><li>Bruce M. Bowen, EVP, President, e Plus Group (Leasing Co) </li></ul><ul><li>Kenneth G. Farber, President, e Plus Systems (Software) </li></ul><ul><li>Steven J. Mencarini, CFO </li></ul><ul><li>Kleyton L. Parkhurst, SVP Corp Dev., M&A, IR </li></ul><ul><li>Erica S. Stoecker, General Counsel </li></ul><ul><li>Board of Directors </li></ul><ul><li>Phil Norton (3) </li></ul><ul><li>Bruce Bowen (3) </li></ul><ul><li>Tom Faulders (1)(2), ret. CEO LCC International </li></ul><ul><li>Terry O’Donnell (1)(2), SVP, GC Textron </li></ul><ul><li>Larry Herman (1)(2), Mng. Partner BearingPoint </li></ul><ul><li>Milt Cooper (1), retired Pres. CSC Federal </li></ul><ul><li>(1) independent, (2) audit, nominating & corporate governance, and compensation committees, (3) stock incentive committee </li></ul>
  14. 14. Strategic Acquisitions <ul><li>10 Acquisitions Since 1996 </li></ul><ul><li>IT Integrators/Solutions Providers </li></ul><ul><ul><li>New Markets (CA, NYC, Boston, Philadelphia, Washington, Baltimore, Florida, NC) </li></ul></ul><ul><ul><li>New Products & Services </li></ul></ul><ul><ul><li>Cross sell: leasing, BPO, software </li></ul></ul><ul><li>Software </li></ul><ul><ul><li>Procurement, Asset Management, Content Management, Document Imaging </li></ul></ul><ul><li>Acquisition Strategy: </li></ul><ul><ul><li>Geographic & Market Expansion </li></ul></ul><ul><ul><li>Gain Customers & Salespeople </li></ul></ul><ul><ul><li>Add Solutions & Software </li></ul></ul><ul><ul><li>Asset Gathering for Leases </li></ul></ul>
  15. 15. Growth Strategies <ul><li>Enhance organic growth through incremental cross-selling and up-selling </li></ul><ul><li>Acquire new markets, customers, products, and services via strategic, accretive acquisitions </li></ul><ul><li>Attract and retain the best professionals in sales and services </li></ul><ul><li>Deliver the best business process software/service solution in the marketplace </li></ul><ul><li>Develop channel partnerships for software </li></ul>
  16. 16. Investment Considerations <ul><li>Core businesses provide: </li></ul><ul><ul><li>solid financial foundation </li></ul></ul><ul><ul><li>business process experience and expertise </li></ul></ul><ul><ul><li>technology platform </li></ul></ul><ul><li>Broad cross section of commercial, municipal, and federal customers </li></ul><ul><li>Direct marketing & direct sales force </li></ul><ul><li>Intellectual property portfolio </li></ul><ul><li>We are visionaries in our application of technology, services, and products to meet the needs of our customers </li></ul>
  17. 17. For More Information <ul><ul><li>Kley Parkhurst, SVP </li></ul></ul><ul><ul><li>[email_address] </li></ul></ul><ul><ul><li>(703) 984-8150 </li></ul></ul><ul><ul><li>www.eplus.com </li></ul></ul><ul><ul><li>e Plus inc. </li></ul></ul><ul><ul><li>13595 Dulles Technology Drive </li></ul></ul><ul><ul><li>Herndon, VA 20171-3413 </li></ul></ul><ul><ul><li>(703) 984-8400 </li></ul></ul>