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Insight Enterprises, Inc Company Overview

Insight Enterprises, Inc · Solution. Insight’s Connected Platform. to help rapidly evaluate, deploy, test and manage new technology across our ecosystem of 3,500+ partner products

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Page 1: Insight Enterprises, Inc · Solution. Insight’s Connected Platform. to help rapidly evaluate, deploy, test and manage new technology across our ecosystem of 3,500+ partner products

1Insight Proprietary & Confidential. Do Not Copy or Distribute. © 2019 Insight Direct USA, Inc. All Rights Reserved.

Insight Enterprises, IncCompany Overview

Page 2: Insight Enterprises, Inc · Solution. Insight’s Connected Platform. to help rapidly evaluate, deploy, test and manage new technology across our ecosystem of 3,500+ partner products

2Insight Proprietary & Confidential. Do Not Copy or Distribute. © 2019 Insight Direct USA, Inc. All Rights Reserved.

Disclosures

• Safe harbor statementThis 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 future trends in the IT market and our opportunities for growth, are forward-looking statements. These forward-looking statements are subject to assumptions, risks and uncertainties which could cause actual results or future events 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 is included in today’s press release and discussed in the Company’s most recently filed periodic reports and subsequent filings with the Securities and Exchange Commission.

• Non-GAAP measuresThis presentation will reference certain non-GAAP financial information as ‘Adjusted’. A reconciliation of non-GAAP financial measures presented in this document to our actual GAAP results is attached to back of this presentation and included in the press release issued today, which you may find on the Investor Relations section of our website at investor.insight.com.

Page 3: Insight Enterprises, Inc · Solution. Insight’s Connected Platform. to help rapidly evaluate, deploy, test and manage new technology across our ecosystem of 3,500+ partner products

3Insight Proprietary & Confidential. Do Not Copy or Distribute. © 2019 Insight Direct USA, Inc. All Rights Reserved. 3

Global Intelligent Technology SolutionsTM

provider that helps businesses run smarter.

We architect, design, implement and manage IT Solutions that enable digital readiness and drive business outcomes.

Page 4: Insight Enterprises, Inc · Solution. Insight’s Connected Platform. to help rapidly evaluate, deploy, test and manage new technology across our ecosystem of 3,500+ partner products

4Insight Proprietary & Confidential. Do Not Copy or Distribute. © 2019 Insight Direct USA, Inc. All Rights Reserved.

Profile

$7.7 Billion2019 Net Sales8% 5 YR CAGR

30+ yearsEvolving in dynamic industry

> 8,000Client-facingTeammates

> 11,000Teammates Worldwide

18%2019 Cloud GP toTotal GP

47%2019 Services GP toTotal GP

$282 Million2019 Adjusted EFO*15% 5 YR CAGR

No. 4092020 Fortune 500

> 4,500TechnicalResources

$5.42 2019 Adjusted DilutedEPS* 22% 5 YR CAGR

24%2019 Services Sales4 YR CAGR

190 Countrieswhere clients are served

Results Services Talent

All Financial Metrics through 12/31/2018 exclude PCM

Insight at a Glance

* Adjusted Non-GAAP measure excludes severance and restructuring expense and other unique items. See Non-GAAP information section in the Appendix of this presentation.

Page 5: Insight Enterprises, Inc · Solution. Insight’s Connected Platform. to help rapidly evaluate, deploy, test and manage new technology across our ecosystem of 3,500+ partner products

5Insight Proprietary & Confidential. Do Not Copy or Distribute. © 2019 Insight Direct USA, Inc. All Rights Reserved.

Innovation Focus Areas

GEO Footprint Expansion

Hardware Lifecycle Services

Distribution and Integration Labs

Software Licensing Solutions

1988 1995 1997 2002 2006 2008 2011 2012 2015 2017 2018 2019

Innovation Focus Areas

Advanced Networking Solutions

Enterprise Software Integration Services

GEO and Category Expansion

Entry to Cloud and Digital Solutions

Innovation Focus Areas

Modern Workforce Solutions

Data Center and Cloud Services and Solutions

Digital Innovation Solutions

Expanded Delivery of Solutions and Services into Mid-Market

2017 and Beyond

Global Intelligent TechnologySolutions ProviderIT services

Mid 2000s - 20161980s through mid 2000s

Reseller

Track Record of Innovation

Page 6: Insight Enterprises, Inc · Solution. Insight’s Connected Platform. to help rapidly evaluate, deploy, test and manage new technology across our ecosystem of 3,500+ partner products

6Insight Proprietary & Confidential. Do Not Copy or Distribute. © 2019 Insight Direct USA, Inc. All Rights Reserved.

• System integration plan

• Leadership team

• Client / partner/ teammate communications

Day 120 +Day 1 - 30 Day 31-120

• Integration complete

• $70 million of expected run rate cost synergies by 2021

• Brand migration

• Team alignment

• Market engagement

• IT systems onboard

• Common service delivery platforms

• Ecommerce integration

• Real Estate consolidation

PCM Integration Timeline

More than 90% PCM clients migrated onto IT systems; expect to complete migration by end of third quarter

Expect to exit 2020 ~$50-$55 million in annualized run-rate savings towards our 2-year commitment of $70 million

Page 7: Insight Enterprises, Inc · Solution. Insight’s Connected Platform. to help rapidly evaluate, deploy, test and manage new technology across our ecosystem of 3,500+ partner products

7Insight Proprietary & Confidential. Do Not Copy or Distribute. © 2019 Insight Direct USA, Inc. All Rights Reserved.

Our Solutions Align to Industry Trends and Drive Business Outcomes for our Clients

Product-focused

Suppliers

Outcome-based

Clients

Supply

Chain Optimization

Connected Workforce Cloud + Data Center

Transformation

Digital Innovation

CapEx OpEx

Manage Today Transform Tomorrow

Page 8: Insight Enterprises, Inc · Solution. Insight’s Connected Platform. to help rapidly evaluate, deploy, test and manage new technology across our ecosystem of 3,500+ partner products

8Insight Proprietary & Confidential. Do Not Copy or Distribute. © 2019 Insight Direct USA, Inc. All Rights Reserved.

Our Response to COVID-19

Connected Workforce Digital InnovationSupply

Chain Optimization

Cloud + Data Center

Transformation

Page 9: Insight Enterprises, Inc · Solution. Insight’s Connected Platform. to help rapidly evaluate, deploy, test and manage new technology across our ecosystem of 3,500+ partner products

9Insight Proprietary & Confidential. Do Not Copy or Distribute. © 2019 Insight Direct USA, Inc. All Rights Reserved.

Proposed solutions for all public and corporate spacesProblemHow do we help reopen offices, airports, stadiums, parks and all public spaces, so people can get back to work (or moreimportantly fun) while also feeling safe?

SolutionInsight’s Connected Platform to help rapidly evaluate, deploy, test and manage new technology across our ecosystem of 3,500+ partner products and solutions such as temp sensing cameras, connected soap dispensers, networking equipment, Citizen Care Pods for onsite screening, virus testing and more.

Page 10: Insight Enterprises, Inc · Solution. Insight’s Connected Platform. to help rapidly evaluate, deploy, test and manage new technology across our ecosystem of 3,500+ partner products

10Insight Proprietary & Confidential. Do Not Copy or Distribute. © 2019 Insight Direct USA, Inc. All Rights Reserved.

• Integrate cameras and non-contact thermometers to take temperatures of people entering facilities.

• Integrate smart GOJO soap and hand hygiene dispensers throughout the park.

• Integrate smart cones for monitoring lines and social distancing of families and staff.

• Integrate portable virus testing centers.

• Gateway device for edge compute

• Appropriate alerts to employees & guests

• Data driven reporting to stakeholders monitoring overall trends & results

Detect and Prevent Solution

Page 11: Insight Enterprises, Inc · Solution. Insight’s Connected Platform. to help rapidly evaluate, deploy, test and manage new technology across our ecosystem of 3,500+ partner products

11Insight Proprietary & Confidential. Do Not Copy or Distribute. © 2019 Insight Direct USA, Inc. All Rights Reserved.

Our Strategic Assets Support Continued Growth

Grow with solutions that drive business outcomes for clients

Continue to Innovate to capture share in high growth areas

Expand and Scale in strategic clients and markets

Optimize client experience and execution through operational excellence

Strategic Priorities

Innovation Led | Solution Area Expertise

Culture, People and Leadership

Global Reach and Scale

Diverse and Loyal Client and Partner relationships

Operational Rigor and Financial Health

Strategic Assets

Page 12: Insight Enterprises, Inc · Solution. Insight’s Connected Platform. to help rapidly evaluate, deploy, test and manage new technology across our ecosystem of 3,500+ partner products

12Insight Proprietary & Confidential. Do Not Copy or Distribute. © 2019 Insight Direct USA, Inc. All Rights Reserved.

Disciplined Capital Allocation Aligned with Shareholder Interests

1

Pursue strategic M&A

Invest organically

2

4 Return excess cash to shareholders

Scalable IT and service delivery platforms

Digital Marketing and client facing tools

Technical and sales talent

Cultural / strategic / financial/ integration

Accretive within the first full fiscal year following acquisition

ROIC at 300 bps above WACC by end of year three

Return some percentage of excess cash to shareholders after meeting other priorities

Pay down debt Maintain modest leverage

3

Page 13: Insight Enterprises, Inc · Solution. Insight’s Connected Platform. to help rapidly evaluate, deploy, test and manage new technology across our ecosystem of 3,500+ partner products

13Insight Proprietary & Confidential. Do Not Copy or Distribute. © 2019 Insight Direct USA, Inc. All Rights Reserved.

Key 5-Year Imperatives to Deliver Value

5.0% – 5.5%Expand EBITDA

Margin

19% – 21%Optimize Return on

Invested Capital

50% – 52% Grow Services Gross

Profit as %of Total GP

Value Creation for Insight Shareholders, Clients, Partners and

Teammates

8% – 10% (CAGR)Grow Sales Faster

than the Market

Page 14: Insight Enterprises, Inc · Solution. Insight’s Connected Platform. to help rapidly evaluate, deploy, test and manage new technology across our ecosystem of 3,500+ partner products

14Insight Proprietary & Confidential. Do Not Copy or Distribute. © 2019 Insight Direct USA, Inc. All Rights Reserved.

Appendix

Page 15: Insight Enterprises, Inc · Solution. Insight’s Connected Platform. to help rapidly evaluate, deploy, test and manage new technology across our ecosystem of 3,500+ partner products

15Insight Proprietary & Confidential. Do Not Copy or Distribute. © 2019 Insight Direct USA, Inc. All Rights Reserved.

Reconciliation of GAAP to Non-GAAP Financial Measures

US Dollar in $000s, except per share data 2019 2018 2019 2018Adjusted Consolidated Earnings from Operations:GAAP consolidated EFO 67,016$ 58,659$ 240,594$ 233,483$ Severance and restructuring expenses 1,713 715 5,425 3,424 Acquisition-related expenses 2,282 - 11,342 282 Amortization of intangible assets 9,395 4,338 22,985 15,737 Impairment of construction in Process 1,501 - 1,501 - Adjusted non-GAAP consolidated EFO 81,908$ 63,712$ 281,847$ 252,926$

Adjusted Consolidated Net Earnings:GAAP consolidated net earnings 42,950$ 47,041$ 159,407$ 163,677$

Severance and restructuring expenses 1,713 715 5,425 3,424 Acquisition-related expenses 2,283 - 11,342 282 Amortization of intangible assets 9,395 4,338 22,985 15,737 Impairment of construction in Process 1,501 - 1,501 - Amortization of debt discount and issuance costs 2,825 - 4,223 - Income taxes on non-GAAP adjustments (4,485) (1,277) (10,073) (4,767) Adjusted non-GAAP consolidated net earnings 56,182$ 50,817$ 194,810$ 178,353$

Adjusted Diluted EPS:GAAP diluted EPS 1.20$ 1.31$ 4.43$ 4.55$ Severance and restructuring expenses 0.05 0.02 0.15 0.09 Acquisition-related expenses 0.06 - 0.32 0.01 Amortization of intangible assets 0.26 0.12 0.64 0.43 Impairment of construction in Process 0.04 - 0.04 - Amortization of debt discount and issuance costs 0.08 - 0.12 - Income taxes on non-GAAP adjustments (0.13) (0.04) (0.28) (0.13) Adjusted non-GAAP diluted EPS 1.56$ 1.41$ 5.42$ 4.95$

Twelve Months EndedDec 31,

Three Months EndedDec 31,