Insight Enterprises, Inc.
Overview
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Insight Presentation
Insight Presentation
Insight Proprietary & Confidential. Do Not Copy or Distribute. © 2015 Insight Direct, USA. All Rights Reserved.
Disclosures
Safe Harbor Statement
This presentation includes “forward-looking statements” within the meaning of the Private Securities Litigation
Reform Act of 1995 related to Insight’s plans and expectations. Statements that are not historical facts,
including statements about growth in net sales, gross profit, earning from operations, and earnings per share
and statements regarding cash flow and future uses of cash are forward-looking statements. These forwardlooking statements are subject to assumptions, risks and uncertainties which could cause actual results or
facts to differ materially from such statements. The Company undertakes no obligation to update publicly or
revise any of the forward-looking statements, except as otherwise required by law. More detailed information
about risk factors are discussed in the Company’s Annual Report on Form 10-K for the year ended December
31, 2013.
Non-GAAP Measures
This presentation will reference certain non-GAAP financial information. For a reconciliation of non-GAAP
measures presented in this document, see the exhibits attached to this presentation or visit the investor
relations section of our website at www.Insight.com.
Insight Presentation
Insight Proprietary & Confidential. Do Not Copy or Distribute. © 2015 Insight Direct, USA. All Rights Reserved.
Insight Enterprises Overview
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•
Insight is a leading worldwide provider
of business technology solutions to
corporate and government clients.
Net Sales ($B)
$5.3
$5.3
$5.1
$5.3
2011
2012
2013
2014
$4.8
Headquartered in Tempe, Arizona
– Over 5,400 teammates
– Locations in 22 countries and serving
clients in over 190 countries
2010
•
Full range of technology solutions
include: software, network, data center,
and cloud solutions
Sales Mix by Segment and Category
APAC 4%
•
•
Key markets: Global Enterprises,
Corporate and SMB clients, Government,
Education, Healthcare and Service
Providers
Represent over 3,500 partners
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Svc 5%
EMEA 29%
HW 52%
SW 43%
NA 67%
Insight Proprietary & Confidential. Do Not Copy or Distribute. © 2015 Insight Direct, USA. All Rights Reserved.
27 Years Building our Expertise
Reseller
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IT Services
Innovative Technology Solutions
Insight Proprietary & Confidential. Do Not Copy or Distribute. © 2015 Insight Direct, USA. All Rights Reserved.
We link Partners and Clients Together
Partners
Component
Manufacturers
& Distributors
Original
Design
Manufacturers
Electronic
Manufacturing
Service
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Original
Equipment
Manufacturers
Software
Publishers
Insight
Full Line &
Specialty
Distributors
Clients
Gov & Corporate
Resellers
Government &
Education
Direct Marketers
Fortune 1,000
VARs
SMB
Retailers
Consumer
Insight Proprietary & Confidential. Do Not Copy or Distribute. © 2015 Insight Direct, USA. All Rights Reserved.
Industry Update
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Forces of Industry Transformation
Big Data/
Analytics
Mobility
Social
Business
Cloud
Security
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Insight Proprietary & Confidential. Do Not Copy or Distribute. © 2015 Insight Direct, USA. All Rights Reserved.
IT Growth
2013
2020
Internet of Things (Endpoints)
20B
32B
Growth in Computer Capacity (#cores)
80M
2.5B
4.4 Zettabytes
44 Zettabytes
Growth in Virtual Machines
68M
240M
Next Generation Applications
12%
40%
Growth in Storage
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Insight Proprietary & Confidential. Do Not Copy or Distribute. © 2015 Insight Direct, USA. All Rights Reserved.
Market Opportunity
Total Addressable Market (TAM)
Highly Fragmented Market
Total Worldwide Market
$2.5 Trillion1
Insight’s Market Share of Worldwide
Solution Provider
Insight
TAM
$427 Billion1
Hardware
Software
Services
Worldwide Indirect IT Spend 2014-2018 CAGR 3.5%1
Highly Fragmented Market with Large Growth Opportunity; Top 10 most comparable
global solution providers represent approx. 10% of the addressable market
1
2
Gartner Market Databook December 2014, Gartner Combined Devices Forecast, Insight Internal Analysis
2014 Solution Provider 500 List, Insight internal estimates as of 12/31/2014
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Insight Proprietary & Confidential. Do Not Copy or Distribute. © 2015 Insight Direct, USA. All Rights Reserved.
How We Deliver Value
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Insight Proprietary & Confidential. Do Not Copy or Distribute. © 2015 Insight Direct, USA. All Rights Reserved.
Helping Businesses Run Smarter
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Relevant Business Technology Solutions
•
Differentiated Services Capabilities
•
Full Suite of Cloud Solutions
•
Strong Partner Alliances
•
Global Footprint
•
Financial Flexibility
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Solutions that Address Top CIO Focus Areas
1 Business intelligence/analytics
7 Security
2 Infrastructure and data center
8 Networking, voice and data comms
3 Cloud
9 Customer relationship/experience
4
ERP
10 Industry-specific applications
5
Mobile
11 Legacy modernization
6 Digitalization/digital marketing
12 Enterprise applications
Source: Gartner Flipping to Digital Leadership: The 2015 CIO Agenda, October 4, 2014
n = 2,793
We deliver comprehensive technology solutions to
solve the current business challenges of CIOs
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Differentiated Services Offerings
Consulting Services
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•
•
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Assessment, Design,
Implementation
Consultants, Architects
Office Productivity,
Networking, Collaboration
& Data Center Practices
Cloud assessment and
migration
Technical Services
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•
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Deployment, Outsourcing,
Maintenance
Technicians, Engineers
Desktop to Infrastructure
Managed Services
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•
•
•
Monitor, Manage,
Resolve
Technicians,
Engineers
RNOC, Service Desk,
Integration Labs
Cloud providers environments
1,200+ Professionals and Technicians
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New Technologies: Cloud Adoption
Worldwide Public Cloud Services
End-user Spend, 2013-2018 ($M)
•
$60
Insight Cloud Solutions
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Public, Private, Hybrid
•
Focus areas: Collaboration, mobility,
data protection, security and hybrid
cloud
$50
SaaS +20%
$40
$Billions
•
$30
IaaS +32%
$20
$10
Cloud Services
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Readiness assessment and migration
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Monitoring and support of cloud
environments
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On staff technical, sales and billing
assistance
PaaS +22%
$0
2013
2015
2016
2017
2018
Rapid pace of Cloud adoption in Market
Insight is accelerating growth in Cloud
Source: Gartner Forecast: Public Cloud Services, Worldwide, 2012-2018, 4Q14 Update, December 2014
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Insight Proprietary & Confidential. Do Not Copy or Distribute. © 2015 Insight Direct, USA. All Rights Reserved.
Industry Leading and Emerging Partner Relationships
Market Leaders
Emerging Contenders
We are a valued partner for the vendor community
Microsoft’s largest global partner; Top 5 market position with largest partners
Insight Presentation
Insight Proprietary & Confidential. Do Not Copy or Distribute. © 2015 Insight Direct, USA. All Rights Reserved.
Global Footprint
Our global footprint, but local presence, allows us to efficiently serve multi-nationals while
bringing local expertise and relevant solutions to corporate and public sector clients of any size
Insight Presentation
Insight Proprietary & Confidential. Do Not Copy or Distribute. © 2015 Insight Direct, USA. All Rights Reserved.
Earnings Power and Financial Flexibility
YoY Growth
2014 results
• Sales growth in all geo’s
–
Led by devices and software
• Expense discipline
• Strategic investments
• Strong EFO and EPS growth*
* Non-GAAP
Total Capitalization
Debt
8%
Equity
92%
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Strong cash flow generation – low debt
• Operating cash flow $110M
• Capex $10M
• Share repurchases $50M; Open authorization
$92M
Future uses of cash
• Organic investments
• Selective M&A
• Share repurchases
Insight Proprietary & Confidential. Do Not Copy or Distribute. © 2015 Insight Direct, USA. All Rights Reserved.
Investment Highlights
• The IT industry is transforming, and we are well positioned to
participate
• A recognized leader in a highly fragmented market
• Our Value Drivers
– Differentiated services offerings
– Ability to deliver on emerging market trends including Cloud
– Deep knowledge in client relevant solution areas
– Strong partner relationships
– Global footprint with local presence
– Financial flexibility and earnings power
Insight Presentation
Insight Proprietary & Confidential. Do Not Copy or Distribute. © 2015 Insight Direct, USA. All Rights Reserved.
Thank You.
Questions?
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Insight Proprietary & Confidential. Do Not Copy or Distribute. © 2015 Insight Direct, USA. All Rights Reserved.
Exhibits
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Insight Proprietary & Confidential. Do Not Copy or Distribute. © 2015 Insight Direct, USA. All Rights Reserved.
RECONCILIATION OF GAAP TO NON-GAAP FINANCIAL MEASURES
(IN THOUSANDS, EXCEPT PER SHARE DATA) (UNAUDITED)
Insight Presentation
Insight Proprietary & Confidential. Do Not Copy or Distribute. © 2015 Insight Direct, USA. All Rights Reserved.