Slide 1: Interim Results 2006
COMPUTACENTER PLC Interim Results 2006 12th September, 2006
Slide 2: Financial Highlights
COMPUTACENTER Financial Highlights PLC Turnover steady at £1.11 billion Profit before tax up 77% to £14.5 million Eps up to 4.3p (2005: 1.2p) Strong balance sheet, £91 million at period end £74 million returned to shareholders in July Interim dividend maintained at 2.5p
Slide 3: Operational Highlights
COMPUTACENTER Operational Highlights PLC UK Encouraging performance of Technology Solutions Progress in embedding our shared services delivery model Strong growth in Computacenter Direct and Software business units Germany Return to profit Significant Managed Services contract wins France Improved p
Slide 4: Looking Ahead
COMPUTACENTER Looking Ahead PLC Significant efforts continuing across the Group to improve competitiveness Outlook for full year in line with expectations
Slide 5: Financial Review
COMPUTACENTER PLC Financial Review Tony Conophy
Slide 6: Group – Profit and Loss Account
COMPUTACENTER Group – Profit and Loss Account PLC 2005 Growth 2006 2006 / 2005 £m £m % Revenue 1,114.9 1,151.6 (3.2%) Cost of sales (969.6) (1,009.3) (3.9%) Gross profit 145.3 142.3 2.1% Gross profit % 13.0% 12.4% 0.7% Other Operating Expenses (133.3) (137.5) (3.1%) Operating Profit (pre IFRS 2) 12.
Slide 7: Group: Operating Profit Split by Half Year
COMPUTACENTER Group: Operating Profit Split by PLC Half Year H1 H2 H1 H2 H1 2004 2004 2005 2005 2006 £m £m £m £m £m UK 29.3 34.5 14.9 17.2 16.4 Germany 2.5 6.5 (1.5) 6.5 0.5 France (2.0) (4.7) (7.9) (1.4) (5.4) BeLux 0.1 (0.1) (0.1) (0.0) (0.1) Group 29.9 36.2 5.4 22.2 11.4
Slide 8: UK – Revenue and Operating Profit
COMPUTACENTER UK – Revenue and Operating PLC Profit UK Revenue 780 756 758 760 740 716 720 699 700 676 680 661 £m 660 637 640 620 600 580 560 H1 2003 H2 2003 H1 2004 H2 2004 H1 2005 H2 2005 H1 2006 UK Operating Profit 40.0 34.5 35.0 31.4 30.4 29.3 30.0 25.0 £m 20.0 17.2 16.4 14.9 15.0 10.0 UK GAAP 5
Slide 9: UK – Profit and Loss Account
COMPUTACENTER UK – Profit and Loss Account PLC 2006 2005 Growth 2006/2005 £m £m % Revenues 661.1 715.5 (7.6%) Gross Profit 91.1 88.1 3.4% 13.8% 12.3% Other Operating Expenses (74.7) (73.2) 2.0% (11.3%) (10.2%) Operating Profit 16.4 14.9 10.3% 2.5% 2.1% Headcount *: Direct 3,047 3,192 (4.6%) Indirect
Slide 10: Germany – Revenue and Operating Profit
COMPUTACENTER Germany – Revenue and PLC Operating Profit Germany Revenue 400 344 350 316 319 312 318 300 298 300 250 £m 200 150 100 50 0 H1 2003 H2 2003 H1 2004 H2 2004 H1 2005 H2 2005 H1 2006 Germany Operating Profit 7.0 6.5 6.5 6.0 5.5 5.0 4.0 3.2 3.0 2.5 £m 2.0 1.0 0.5 UK GAAP 0.0 H1 2003 H2 2003
Slide 11: Germany – Profit and Loss Account
COMPUTACENTER Germany – Profit and Loss PLC Account Growth 2006 2005 2006 / 2005 £m £m % Revenues 297.7 300.0 (0.8%) Gross Profit 40.4 40.7 (0.8%) 13.6% 13.6% Other Operating Expenses (39.9) (42.2) (5.3%) (13.4%) (14.1%) Operating Profit 0.5 (1.5) (130.9%) 0.2% (0.5%) Headcount *: Direct 2,506 2,488
Slide 12: France – Revenue and Operating Profit
COMPUTACENTER France – Revenue and PLC Operating Profit France Revenue 200 176 170 180 160 148 147 153 142 140 126 120 £m 100 80 60 40 20 0 H1 2003 H2 2003 H1 2004 H2 2004 H1 2005 H2 2005 H1 2006 France Operating Profit 0.0 H1 2003 H2 2003 H1 2004 H2 2004 H1 2005 H2 2005 H1 2006 -1.0 -2.0 (1.7) (1.0
Slide 13: France – Profit and Loss Account
COMPUTACENTER France – Profit and Loss PLC Account 2006 2005 Growth 2006 / 2005 £m £m % Revenues 141.7 126.2 12.3% Gross Profit 12.6 12.4 1.8% 8.9% 9.8% Other Operating Expenses (18.0) (20.3) (11.6%) (12.7%) (16.1%) Operating Profit (5.4) (7.9) (32.4%) (3.8%) (6.3%) Headcount *: Direct 568 614 (7.5%
Slide 14: BeLux – Profit and Loss Account
COMPUTACENTER BeLux – Profit and Loss Account PLC 2006 2005 Growth 2006 / 2005 £m £m % Revenues 14.4 9.8 46.7% Gross Profit 1.2 1.0 15.1% 8.3% 10.6% Other Operating Expenses (1.3) (1.1) 11.7% (8.9%) (11.7%) Operating Profit (0.1) (0.1) (22.4%) (0.6%) (1.1%) Headcount *: Direct 102 87 17.2% Indirect
Slide 15: Group – Revenue by Business Segment
COMPUTACENTER Group – Revenue by Business PLC Segment Growth 2006 2005 2006 / 2005 £m £m % Product 846.8 893.8 (5.3%) Technology Solutions 59.3 52.8 12.2% Support and Managed services 208.8 205.0 1.9% Services 268.1 257.8 4.0% Total group 1,114.9 1,151.6 (3.2%)
Slide 16: Group – Cash from Operations
COMPUTACENTER Group – Cash from Operations PLC Growth 2006 2005 2006 / 2005 £m £m % Cash flows from operating activities Operating profit 11.4 5.4 110.9% Depreciation / amortisation 7.7 8.9 (13.4%) Share based payments 0.6 (0.6) (189.2%) Profit / loss on disposal of fixed assets & investments 0.3 (0
Slide 17: Group – Summary Cash Flow
COMPUTACENTER Group – Summary Cash Flow PLC 2006 2005 Growth 2006 / 2005 £m £m % Cash generated from operations 5.6 66.6 (91.6%) Income taxes paid (4.7) (12.6) (62.3%) Net cash flows from operating activities 0.8 54.0 (98.5%) Net cash flows from investing activities 1.6 (2.1) (173.9%) Net cash flows
Slide 18: Group – Balance Sheet
COMPUTACENTER Group – Balance Sheet PLC 2006 2005 Growth 2006 / 2005 £m £m % Property, plant, equipment 77.5 86.2 (10.2%) Intangible assets 9.7 9.6 1.8% Investments 0.2 0.2 6.4% Deferred tax asset 5.6 1.5 260.6% Non-current assets 93.0 97.5 (4.7%) Inventories 87.7 88.2 (0.5%) Trade and other receiva
Slide 19: Group – Key Ratios
COMPUTACENTER Group – Key Ratios PLC Jun 2006 Dec 2005 Jun 2005 Stock (days) 21 23 20 Debtor (days) 51 51 46 Creditor (days) 35 39 34 Working Capital (days) 37 36 32
Slide 20: Operational Review
COMPUTACENTER PLC Operational Review Mike Norris
Slide 21: Agenda
COMPUTACENTER Agenda PLC Group revenue by type UK Services UK Product Germany France
Slide 22: Group
COMPUTACENTER Group PLC Group 2005 revenue by type 2006 revenue by type 22% 23% 33% 37% 5% 4% 10% 12% 26% 27% Personal Systems Network, Server, Storage Personal Systems Network, Server, Storage Software 3rd Party Services Software 3rd Party Services Services Services
Slide 23: UK
COMPUTACENTER UK PLC UK 2005 revenue by type 2006 revenue by type 18% 20% 35% 38% 7% 6% 9% 12% 27% 27% Personal Systems Network, Server, Storage Personal Systems Network, Server, Storage Software 3rd Party Services Software 3rd Party Services Services Services
Slide 24: UK Services Strategy
COMPUTACENTER UK Services Strategy PLC We are an IT infrastructure services provider that works with IT departments to reduce cost and increase the value of IT to users Invest in services we can share across that customer base such as helpdesks, datacentres, disaster recovery and technical skills Ac
Slide 25: UK Services Highlights
COMPUTACENTER UK Services Highlights PLC Good growth in Technology Solutions on the back of a number of projects Particular success in datacentre virtualisation and datacentre moves Contractual services growth in the first half was modest The pipeline for the remainder of 2006 looks better Growth in
Slide 26: UK Contract Base
£M 100 110 120 130 140 150 160 170 180 190 Jun-03 Aug-03 Oct-03 Dec-03 Feb-04 Apr-04 UK Contract Base Jun-04 Aug-04 Oct-04 Dec-04 Feb-05 Apr-05 Jun-05 3 yr CAGR = 6.5% Aug-05 Oct-05 Dec-05 Feb-06 Apr-06 Jun-06 PLC COMPUTACENTER
Slide 27: UK Product Strategy
COMPUTACENTER UK Product Strategy PLC Re-engineer our product business to deliver lower cost account management Invest in systems to continually drive down supply chain costs Build a sizeable presence in the mid market business sector Create a specialist software business unit to increase our market
Slide 28: UK Product Highlights
COMPUTACENTER UK Product Highlights PLC Product price decline in the order of 10% compared to H1-05 Improved product margins due to operational rigour and a more favourable business mix, particularly lower trade distribution sales and higher demand from the financial services sector Continuing shift
Slide 29: Vendor Share H1-06 v H1-05
-80% -60% -40% -20% 0% 20% 40% 60% 80% 100% Fujitsu Siemens (53.8%) IBM (14.3%) IBM - Lenovo (9.4%) NEC (3.6%) EMC (1.6%) HP (0.3%) Vendor Share H1-06 v H1-05 Microsoft 6.1% Toshiba 14.5% Sun 31.8% Cisco 63.6% PLC COMPUTACENTER
Slide 30: Germany
COMPUTACENTER Germany PLC Germany 2005 revenue by type 2006 revenue by type 13% 23% 34% 35% 35% 2% 3% 28% 13% 14% Personal Systems Network, Server, Storage Personal Systems Network, Server, Storage Software 3rd Party Services Software 3rd Party Services Services Services
Slide 31: German Highlights
COMPUTACENTER German Highlights PLC The first half produced a modest profit and an improvement on last year helped by the absence of the loss making contract we had in 2005 Good growth in services Good new Managed Services wins which will help revenue in the second half but wont make a positive cont
Slide 32: Germany Contract Base
COMPUTACENTER Germany Contract Base PLC Some of this growth 120 relates to conversions of existing accounts to longer term contracts & 100 better measurement / capture of contract base 80 £M 60 40 3 yr CAGR = 23.9% 20 - Aug-03 Apr-04 Aug-04 Apr-05 Aug-05 Apr-06 Oct-03 Dec-03 Dec-04 Jun-03 Feb-04 Oct
Slide 33: France
COMPUTACENTER France PLC France 2005 revenue by type 2006 revenue by type 13% 12% 0% 0% 9% 13% 60% 60% 17% 15% Personal Systems Network, Server, Storage Personal Systems Network, Server, Storage Software 3rd Party Services Software 3rd Party Services Services Services
Slide 34: French Highlights
COMPUTACENTER French Highlights PLC Increased revenue, partially due to our largest customer spend patterns, but not solely Severe margin pressure intensified due to vendor direct strategies Reduced operating loss aided by non re-occurring costs in H1-05 Improved services utilisation The market rema
Slide 35: France Contract Base
£M - 2 4 6 8 10 12 14 16 18 Jun-03 Aug-03 Oct-03 Dec-03 Feb-04 Apr-04 Jun-04 Aug-04 France Contract Base Oct-04 Dec-04 Feb-05 Apr-05 Jun-05 Aug-05 3 yr CAGR = 19.6% Oct-05 Dec-05 Feb-06 Apr-06 Jun-06 PLC COMPUTACENTER
Slide 36: Looking Ahead
COMPUTACENTER Looking Ahead PLC Significant efforts continuing across the Group to improve competitiveness Outlook for full year in line with expectations
Slide 37: Interim Results 2006
COMPUTACENTER PLC Interim Results 2006 12th September, 2006