investor overview...adjusted net income attributable to arc $ 6.2 $ 4.5 earnings per share - diluted...

Information is current to June 30, 2015 unless otherwise indicated

Investor Overview

As a document solutions company

our goal is to improve efficiencies

and reduce costs wherever our

architectural, engineering and

construction (AEC) customers’

documents exist.

We have a relentless focus on

reducing the use of paper,

improving document workflow,

and providing instant access to

our customers’ documents anywhere,

anytime, and in any form.

4

We believe the cloud and mobile technology

will transform document management and

communications in the AEC industry.

5

We can deliver documents

and information with secure

mobile access anywhere,

anytime and to any device.

6

Project

Documents

…involving architectural,

engineering and design

drawings and documents,

largely involving plans and

specifications.

Archived

Documents

…related to all aspects

of business, including project

documents, specialized use

documents, and office

documents.

Office

Documents

…related to business

management and administration

such as financial, contractual,

compliance, marketing, HR, and

other activities.

7

• …average annual print cost per person is

$2,500 to $3,500

• …document-related costs

are the third largest office expense after people

and locations

• …printing project documents

typically costs twice as much as managing

documents digitally

• …delays from document organization

errors increase project schedules by days and

sometimes weeks

• …the majority of document storage

boxes are left untouched on the shelf for 16 years

For most of our customers…

8

ARC Developed Three Document Solutions

CDIM

Construction Document

& Information Management

MPS

Managed Print

Services

AIM

Archive & Information

Management

9

• …reduces annual print costs per

person from $250 up to $1,000

• …reduces all document-related

costs by as much as 30%

• …provides technology and services that

eliminate paper and printing from document

management

• …deliver solutions that strip days and weeks

from project schedules

• …makes all legacy documents

searchable and instantly accessible

ARC Document Solutions…

We save our largest

customers millions of

dollars per year.

10

CDIM

Construction Document

& Information Management

Primary Technology

• SmartScreens

• Tablets

• Web-enabled Printers

• Multi-Function Printers

• Scanners

Equipment & Hardware

• Hyperlinking

• BIM, File Conversion

• Color Production

• Onsite/Offsite print facilities

• Software Support

• Digital shipping

Supporting Services & Technology

CDIM is a suite of cloud-based tools and services

to manage and distribute construction documents

and improve the efficiency of construction teams.

11

• Multi-Function Devices

• Large Format Printers

• SmartScreens

• 3D printers


• Mail Room

• Onsite Staffing

• Software Installation &

Support

• Offsite Overflow Printing

• 3D Modeling


MPS

Managed Print Services

Primary Technology

MPS is an outsourced printing environment that

reduces costs and improves the efficiency of office

document management and production.

12

• Scanners

• SmartScreens

• Web-enabled

Plotters


• Onsite/Offsite Scanning

• Hardcopy/Box Pickup & Delivery

• Document Retention &

Information Governance

Consulting

• Financing


AIM

Archive & Information

Management

Primary Technology

AIM is a cloud-based archival platform that captures

documents of any size or type, with powerful search

tools to make legacy information available instantly.

13

CDIM AIM

A single location

where all documents,

and all information…

…are available anytime,

anywhere, on

any device.

MPS

14

Solutions are Unique to ARC

AEC-specific

Disruptive

Unprecedented value

Create efficiencies

Rooted in our industry

expertise

Solutions Address All Clients

Architects & Designers

Engineers

Industry-specific

General/Sub-Contractors

Multi-national

Local & Regional

ARC has exclusive document management agreements with

22 of the Top 100 AEC firms in the U.S.

15

Solutions are Interconnected

MPS, AIM & CDIM share

infrastructure on the

Amazon Cloud

Share equipment

Can be sold separately,

but offer tremendous

cross-selling

opportunities

Solutions are Global

Cloud-based services

release ARC from

geographical limits,

but…

Service center footprint

of 199 locations

provides enormous

competitive advantage

ARC has transformed to a new and growing business with a bigger

addressable market, and a better value proposition for the future

Annual recurring revenue now represents 33% of net sales via

MPS, and is expected to grow with new revenue lines

Management team of experienced, entrepreneurial veterans sensitive

to future needs

Growth, margins and cash potential in the future

Stock is undervalued given we are at the beginning of a

non-res recovery cycle, and there is a lack of awareness

of ARC’s transformation

Investment Opportunity

Financial Discussion

18

CDIM MPS AIM

52% of Net Revenue in Q2 15

YOY Growth of 2%

Sales of $59mm in Q2 15

Estimated gross margin: 37%-40%


YOY Growth of 4%

Sales of $37 mm in Q2 15



YOY Growth of 15%



Equipment & Supplies

(defensive)12% of Net Revenue in Q2 15

YOY Growth of 10%



Revenue growth in MPS and stabilizing non-res construction

Gross Margins grow by leveraging fixed costs against revenue growth and targeted margin

improvement exercises

EBITDA grows from sales and gross margin improvements

Cash Flows grow from improved financial performance, deleveraging senior debt, and

payment of minimal cash taxes due to approximately $94mm in NOL's

Free Cash Flow grew 40% YOY from $29.1mm in 2013 to $40.7mm in 2014*

Adjusted EBITDA ($mm)

18.320.9

16.618.3 17.4 17.0 16.1 16.8

20.9 21.6

$0.0

$3.0

$6.0

$9.0

$12.0

$15.0

$18.0

$21.0

Q2'13

Q2'14

Q3'13

Q3'14

Q4'13

Q4'14

Q1'14

Q1'15

Q2'14

Q2'15

$105

$109

$101

$108

$101

$108

$100

$104

$109

$113

$90

$95

$100

$105

$110

$115

Q2'13

Q2'14

Q3'13

Q3'14

Q4'13

Q4'14

Q1'14

Q1'15

Q2'14

Q2'15

34.0%

36.0%

32.5%

33.9%33.0%

32.5%

33.8%34.5%36.0%

36.0%

24.0%

28.0%

32.0%

36.0%

40.0%

Q2'13

Q2'14

Q3'13

Q3'14

Q4'13

Q4'14

Q1'14

Q1'15

Q2'14

Q2'15

Revenue ($mm) Gross Margin

Financial Leverage

* Free Cash Flow calculated from Adjusted Cash Flow from Operations

20

Revenue grew 4.0% year-over-year

Adjusted diluted earnings per share were $0.13 vs. $0.10 in Q2 2014

Gross profit rose 4.2% delivering a gross margin of 36.0%

Adjusted cash flow from operations was $16.9 million vs. $15.7 million in Q2 2014

Adjusted EBITDA of $21.6 million; grew 3% in line with sales despite planned investments in SG&A

Maintains 2015 fully-diluted annual adjusted earnings per share projected to be in the range of $0.37 to $0.41; annual

adjusted cash provided by operating activities projected to be in the range of $61 to $66 million; and annual adjusted

EBITDA to be in the range of $75 million to $80 million

Q2 2015 Performance UpdateThree Months Ended

June 30,

(All dollar amounts in millions, except EPS) 2015 2014

Net Revenue $ 113.4 $ 109.0

Gross Margin 36.0% 36.0%

Net income attributable to ARC $ 9.3 $ 4.5

Adjusted Net Income attributable to ARC $ 6.2 $ 4.5

Earnings per share - Diluted $ 0.19 $ 0.10

Adjusted earnings per share - Diluted $ 0.13 $ 0.10

Adjusted EBITDA $ 21.6 $ 20.9

Adjusted Cash provided by operating activities $ 16.9 $ 15.7

Capital Expenditures $ (4.1) $ (3.0)

Debt & Capital Leases (including current) $ 189.0 $ 210.8

1.) Margin Expansion

2.) Deleveraging

4.) Transformation

3.) Revenue Growth

Restructure MIM & Consol. Rev. Growth Mix Shift

Refinance Senior Debt Continue to Pay Down Debt…

Organic Growth New Business Cycle Recovery

Growth in Technology Services

2013 2014 2015 2016-forward

• Strategic customer relations, not transactional

• Make customer better at what they do

• Long term vs. short term

• Recurring revenue

Value Drivers of ARC

Thank you for your interest.

For further information, please contact David Stickney,

ARC’s VP of Corporate Communications & IR at 925-949-5114