Slide 1: 2020 Full-Year Results
2020 FULL-YEAR RESULTS Full-year results to 31 December 2020 (16 March 2021)
Slide 2: 2020 Financial Highlights
2020 FINANCIAL HIGHLIGHTS Group Group adjusted1 Adjusted1 Cash and cash Final revenue profit before tax diluted EPS equivalents dividend of £5.4bn £200.5m 126.4p £309.8m 38.4p • Group revenue increased 7.7 per cent • Proposed final dividend of 38.4 pence (2019: 26.9 pence proposed to £5.4 billion (2
Slide 3: 2020 Financial Highlights
2020 FINANCIAL HIGHLIGHTS 2016 2017 2018 2019 2020 2020 vs 2019 Revenue (£m) 3,245.4 3,793.4 4,352.6 5,052.8 5,441.3 7.7% Adjusted1 profit before tax (£m) 86.4 106.2 118.2 146.3 200.5 37.0% Adjusted1 diluted EPS (pence) 54.0 65.1 75.7 92.5 126.4 36.6% Dividend per share (pence) 22.2 26.1 30.3 10.1 5
Slide 4: 2020 Operating Highlights
2020 OPERATING HIGHLIGHTS The Group’s revenues increased by 7.7 per cent and were 6.6 per cent higher in constant currency2. Significant reductions in expenditure from industrial customers have been offset by new business within the Public Sector and financial services. Group COVID-19 related cost r
Slide 5: Financial Review
FINANCIAL REVIEW Tony Conophy 16 March 2021 5 l © Computacenter 2021
Slide 6: 2020 Group Adjusted Financial Results
2020 GROUP ADJUSTED1 FINANCIAL RESULTS Performance headlines 2020 2019 Constant • Revenue up 7.7 per cent and by 6.6 per cent in constant currency2 Change 2 • Adjusted1 operating profit up 36.3 per cent and by 34.7 per cent in constant currency2 £m £m currency Revenue 5,441.3 5,052.8 7.7% 6.6% 1 Adj
Slide 7: 2020 Reconciliation to Adjusted Results
2020 RECONCILIATION TO ADJUSTED1 RESULTS Exceptional Amortisation and other 2020 Adjusted 1 2019 Adjusted1 2020 results of acquired Change adjusting results results intangibles items £m £m £m £m £m % Revenue 5,441.3 - - 5,441.3 5,052.8 7.7% Cost of sales (4,720.8) - - (4,720.8) (4,389.7) (7.5%) Gros
Slide 8: 2020 Exceptional and Other Adjusting Items
2020 EXCEPTIONAL AND OTHER ADJUSTING ITEMS The net gain from exceptional and other adjusting items in the year was £8.5 million (2019: loss of £4.0 million). Excluding the tax items, which resulted in a gain of £2.4 million (2019: gain of £1.3 million), the profit before tax impact was a net gain fr
Slide 9: 2020 Exceptional and Other Adjusting Items
2020 EXCEPTIONAL AND OTHER ADJUSTING ITEMS The net gain from exceptional and other adjusting items in the year was £8.5 million (2019: loss of £4.0 million). Excluding the tax items, which resulted in a gain of £2.4 million (2019: gain of £1.3 million), the profit before tax impact was a net gain fr
Slide 10: 2020 Other Adjusting Items
2020 OTHER ADJUSTING ITEMS The net gain from exceptional and other adjusting items in the year was £8.5 million (2019: loss of £4.0 million). Excluding the tax items, which resulted in a gain of £2.4 million (2019: gain of £1.3 million), the profit before tax impact was a net gain from exceptional a
Slide 11: 2020 Revenue by Segment
Technology Sourcing revenue 2020 REVENUE BY SEGMENT The UK Technology Sourcing business has seen exceptional growth, continuing to build through the second half of the year driven by workplace contracts to support our customers’ emergency 2020 2019 2020 2019 Constant transition to home working and G
Slide 12: 2020 Revenue and Adjusted Operating Profit by Segment
2020 REVENUE AND ADJUSTED1 New Segmental Reporting is in place for 2020 reporting. OPERATING PROFIT BY SEGMENT Refer to slide 49 for further details, and slide 13 for an analysis of Central Corporate Costs. UK performance saw very strong Technology Sourcing revenue 2020 2019 2020 2019 Constant growt
Slide 13: Central Corporate Costs
CENTRAL CORPORATE COSTS 2020 2019 Change Analysis of Central Corporate Costs £m £m £m Cost of the plc Board, related public company costs and Group Exec cost base (Segment unaligned) 6.8 7.0 (0.2) Shared-based payments (Group Exec Segment unaligned) 3.2 3.0 0.2 Strategic corporate initiatives 17.1 1
Slide 14: 2020 Group Adjusted Operating Profit Walk
2020 GROUP ADJUSTED1 OPERATING PROFIT WALK (£M) (CONSTANT CURRENCY2) 8.9 2.4 3.9 5.6 1.8 32.4 206.5 151.5 153.3 2019 Currency 2019 Technology Technology Services Services SG&A 2020 EBIT* EBIT* Sourcing Sourcing Volume GP % EBIT* (constant Volume GP % currency2) 1,2 Refer to the glossary for definiti
Slide 15: 2020 Closing Adjusted Net Funds/(Debt)
2020 CLOSING ADJUSTED NET FUNDS/ (DEBT)3 • Cash and cash equivalents have increased by £91.6 million since 31 December 2019 to £188.6 million £m at 31 December 2020. • Cash was impacted by the £30.1 million outflow for acquisition of subsidiaries 100 - net of cash acquired and offset by the 30 non-p
Slide 16: 2020 Cash Flow Since December 2019
2020 CASH FLOW SINCE DECEMBER 2019 (£M) • Free cash inflow of circa £132 million including lease liabilities (see below). • Net IFRS 16 movements include, the depreciation of right-of-use assets for £45.2 million, the interest expense on lease 39 liabilities of £4.5 million and the 207 payment of le
Slide 17: 2020 Net Revenue Strong
2020 NET REVENUE STRONG (AS ADJUSTED) • Adjusted1 operating profit increased from 3.0 per cent of revenue to 3.8 Adjusted1 operating profit margin - Gross v Net per cent. Adjusted1 operating profit 14.0% margin percentage is always diluted by Technology Sourcing revenues, 12.0% which are typically ‘
Slide 18: 2020 Financial Returns Strong
2020 FINANCIAL RETURNS STRONG Return on capital employed* 46.7% Return on capital 42.6% employed has increased from the level seen in 36.0% 2019 as adjusted1 31.1% 30.8% operating profit increased from £151.5 million to £206.5 million with capital 18.3% employed increasing from 14.6% 13.4% 12.0% £35
Slide 19: Our Impact on the Environment
OUR IMPACT ON THE ENVIRONMENT 2015 - 2020 • 44 per cent reduction in Scope 1 and Scope 2 GROUP 2015 2016 2017 2018 2019 2020 emissions from 2015 to 2020, which on a like-for-like basis is even greater as the emissions from acquired Total Scope 1 and 2 businesses are included in current years but wer
Slide 20: How Have We Achieved This
HOW HAVE WE ACHIEVED THIS • Approx. 1.8 million kWh of electricity was self generated in 2020, this will increase to approx. 2.6 million kWh electricity in 2021, and approx. 3.3 million kWh in 2022 as our new systems in Germany come on-line. • Group electricity reduced in real terms in 2020 by 17.8
Slide 21: Future Plans
FUTURE PLANS • Implementation in our German headquarters of two new solar systems which will generate c.1.3m kilowatts hours of electricity per annum. • We will work with our vendors and supply chain to identify our Scope 3 emissions from both up and down stream activities. This will allow us to ide
Slide 22: 2020 The Environment – General Background
2020 THE ENVIRONMENT – GENERAL BACKGROUND • Established our Climate Control Committee, chaired by • Completed our major, new efficient cooling system our Group Finance Director. upgrade to our Manchester Data Center. • Purchased new 100 per cent renewable green energy • Continued our programme of LE
Slide 23: 2021 Modelling Considerations
2021 MODELLING CONSIDERATIONS Dividends Adjusted1 net interest The Board recognises the importance of dividends to shareholders and the Group prides itself As the adjusted net funds3 continue to increase then the adjusted1 finance revenue will continue to grow. on a long track record of paying divid
Slide 24: Operating Review
OPERATING REVIEW Mike Norris 16 March 2021 24 l © Computacenter 2021
Slide 25: Top Line Growth Drivers
TOP LINE GROWTH DRIVERS 25 l © Computacenter 2021
Slide 26: Public Sector Revenue Mix
PUBLIC SECTOR REVENUE MIX 1,887 1,876 1,773 1,597 Public Sector revenue 65% 67% 70% has increased to 982 78% 789 32% 625 673 of total revenues in 2% 15% 46% 94% 2020 (£1,723 million) 13% 53% 3% 100% from 25 per cent in 2% 31% 2% 154 137 2019 (£1,262 million). 20% 17% 20% 52% 44% 67% 59% 5% 33% 41% 0
Slide 27: Leading the Growth: Services Contract Base
LEADING THE GROWTH French decline stems primarily from the loss of the Group’s largest contract and TO LEAD WITH AND GROW OUR SERVICES BUSINESS dragged the overall Group Contract Base down. UK and German renegotiations of 800 --- - --- --- renewals and extensions have affected the ---- -- - - ------
Slide 28: Driving Efficiency
DRIVING EFFICIENCY Group TO IMPROVE OUR SERVICES PRODUCTIVITY Whilst overall revenues held up in the AND ENHANCE OUR COMPETITIVENESS challenging environment, margins and profits increased due to a reduction in UK Germany France costs to serve our customers across Despite the challenging conditions,
Slide 29: COVID-19 Has Accelerated 2020
COVID-19 HAS ACCELERATED 2020 BUT EXCLUDING IT WE ARE STILL GROWING COMFORTABLY Estimated Net COVID impact ~£25m £7m £45m Non-COVID ~£30m growth Saved cost Services COVID COVID Net cost Estimated revenue impacted net COVID (externals, specific of Effect travel) lower customers business furlough acti
Slide 30: At the Heart of Our Business
AT THE HEART OF OUR BUSINESS GROUP Our customers with over £1 million of contribution TO RETAIN AND MAXIMISE THE RELATIONSHIP are a Strategic Priority for Group performance. WITH OUR CUSTOMERS OVER THE LONG TERM France North America 118 135 135 103 107 16 15 11 13 6 8 2016 2017 2018 2019 2020 13 13
Slide 31: 2020 United Kingdom
Share of 2020 Revenue Profile 2020 UNITED KINGDOM FINANCIAL HIGHLIGHTS 18% • Revenue up by 11.0% • Adjusted1 operating profit up by 40.2% 7% • Technology Sourcing revenue up by 16.2% 75% • Services revenue down by 2.0% OPERATIONAL HIGHLIGHTS • Technology Sourcing saw strong revenue growth supporting
Slide 32: 2020 Germany
Share of 2020 Revenue Profile 2020 GERMANY FINANCIAL HIGHLIGHTS • Revenue decline of 2.5% 18% • Adjusted1 operating profit up by 38.1% • Technology Sourcing revenue down by 5.4% 13% • Services revenue growth of 4.9% 69% OPERATIONAL HIGHLIGHTS • The German Technology Sourcing business saw reduced Tec
Slide 33: 2020 France
Share of 2020 Revenue Profile 2020 FRANCE FINANCIAL HIGHLIGHTS • Revenue up by 5.3% 17% • Adjusted1 operating profit down by 27.3% 5% • Technology Sourcing revenue up by 7.4% • Services revenue down by 1.6% 78% OPERATIONAL HIGHLIGHTS • The acquisition of Computacenter NS has added €15 million of Tec
Slide 34: 2020 North America
Share of 2020 Revenue Profile 2020 NORTH AMERICA 1% FINANCIAL HIGHLIGHTS 2% • Revenue increased by 27.8% • Adjusted1 operating profit increased by 58.6% to $18.4 million • Technology Sourcing revenue up by 27.3% • Services revenue down by 46.0% 97% OPERATIONAL HIGHLIGHTS Technology Sourcing Professi
Slide 35: 2020 International
Share of 2020 Revenue Profile 2020 INTERNATIONAL FINANCIAL HIGHLIGHTS 33% • Revenue down by 9.7% • Adjusted1 operating profit down by 56.1% • Technology Sourcing revenue down by 10.7% 63% • Services revenue down by 7.9% 4% OPERATIONAL HIGHLIGHTS Technology Sourcing Professional Services • The Intern
Slide 36: Pivot Is Consistent With Our US Strategy
PIVOT IS CONSISTENT WITH OUR US STRATEGY Establish a ‘CC-like’ US Growth Opportunity Vendor Positioning opportunity Computacenter’s Group model: capability in US for our control, scalability & leverage international customers • US is the most important • Huge market, quite • Vendors are US-centric a
Slide 37: What Does Merging With Pivot Bring For CC US
WHAT DOES MERGING WITH PIVOT BRING FOR CC US Computacenter US & Pivot combined >US$2bn US$160m 1,300 Doubles Own-provided our revenue Employees services Significantly increased Services scale: Canada Sales & Operations >350 Pivot Technical Additional Resources presence in Mid-West Integration Center
Slide 38: What Does Merging With CC US Bring For Pivot
WHAT DOES MERGING WITH CC US BRING FOR PIVOT Computacenter US & Pivot combined >US$2bn US$160m 1,300 Doubles Own-provided our revenue Employees services Integration Center in New York office & strong customer base Livermore CA, nr. Silicon Valley Additional presence in Mid-West US Managed Services R
Slide 39: Acquisition of BT Services France Summary
ACQUISITION OF BT SERVICES FRANCE SUMMARY Completion date 2 November 2020 NOC/SOC Employees/Offices 550 FTEs in 10 locations (all in France) ‘CCNS’ • BT Services France becomes Computacenter NS (CCNS). • For at least 18 months, CCNS remains a separate legal entity and cannot implement any social pla
Slide 40: Outlook
OUTLOOK ‘At the start of last year, our performance in 2019 set us a high bar for 2020. The COVID related lockdowns towards the end of the first quarter made improving on 2019 feel even more challenging. After multiple upgrades during the year and today’s excellent results it is clear that the 2020
Slide 41: Appendix
APPENDIX 41 l © Computacenter 2021
Slide 42: COVID-19 Impact (Introduction)
COVID-19 IMPACT (INTRODUCTION) We are a technology company supporting customers worldwide, at a time when technology has proven critical to mitigating COVID-19’s disruption of normal business practices. We have also executed our own business continuity plans to great effect and remained sufficiently
Slide 43: COVID-19 Impact – The Financial Impact of COVID-19
COVID-19 IMPACT – THE FINANCIAL IMPACT OF COVID-19 The financial impact of COVID-19 Group’s expense, and a minority of Belgian employees were on part-time working The Group has experienced significant operational and financial impacts from the arrangements. All other employees across the Group have
Slide 44: COVID-19 Impact – Looking After Our People
COVID-19 IMPACT – LOOKING AFTER OUR PEOPLE Looking after our people these key locations and expressly thank all those who provided this vital service for The safety and wellbeing of our staff remains our highest priority. As the COVID-19 our customers. The challenge was immense and we were pleased t
Slide 45: COVID-19 Impact – Supporting Our Customers (1)
COVID-19 IMPACT – SUPPORTING OUR CUSTOMERS (1) Supporting our customers The resilience of our Services and infrastructure was demonstrated during The ‘near-shore’ location strategy for our internal service providers and Service 2020 as never before. Within four weeks of the start of the pandemic we
Slide 46: COVID-19 Impact – Supporting Our Customers (2)
COVID-19 IMPACT – SUPPORTING OUR CUSTOMERS (2) Supporting our customers (continued) In addition, our scale and breadth of service meant that we were a natural choice as As the crisis intensified, we became a critical partner for governments across Europe an aggregator of technology, which positioned
Slide 47: Glossary
GLOSSARY 1. Adjusted measures 2. Constant currency The Group uses a number of non-Generally Accepted Accounting Practice (non- We evaluate the long-term performance and trends within our Strategic Priorities GAAP) financial measures in addition to those reported in accordance with IFRS. on a constan
Slide 48: Glossary (continued)
GLOSSARY (CONTINUED) 3. Net funds Adjusted net funds or adjusted net debt includes cash and cash equivalents, other short or other long-term borrowings and current asset investments. Following the adoption of IFRS 16 this measure excludes all lease liabilities. A table reconciling this measure, incl
Slide 49: Change in Segmental Reporting
CHANGE IN SEGMENTAL REPORTING During the first half of the year, Management reviewed the way it reported Segmental grouped within the International Segment. We have, therefore, restated the Managed performance to the Board and the CEO, who is the Group’s Chief Operating Decision Services revenues fo
Slide 50: Sources of Revenue: Percentage Change by Revenue Type
SOURCES OF REVENUE: PERCENTAGE CHANGE BY REVENUE TYPE Group UK 16.2% 14.8% 16.2% 9.7% 11.0% 9.4% 8.3% 7.7% 1.4% 6.6% 2.5% (6.0%) (2.0%) (3.3%) (4.3%) Technology Professional Managed Services Total Services Total Technology Professional Managed Services Total Services Total Sourcing Services Sourcing
Slide 51: Sources of Revenue: Percentage Change by Revenue Type
SOURCES OF REVENUE: PERCENTAGE CHANGE BY REVENUE TYPE 80.0% 75.6% International North America 45.2% 48.8% 44.1% 46.0% 41.2% 38.5% 25.4% 27.3% 25.8% 27.8% (10.7%) (12.4%) (7.9%) (10.0%) (9.7%) (11.5%) (13.3%) (15.3%) Technology Professional Managed Total Total Technology Professional Managed Total To
Slide 52: UK Adjusted Income Statement
UK ADJUSTED1 INCOME STATEMENT 2020 2019 Change £m £m % Revenue 1,773.4 1,597.0 11.0% 1 Adjusted gross profit 249.2 221.2 12.7% 14.1% 13.9% 0.2% Administrative expenses (158.8) (156.7) 1.3% (9.0%) (9.8%) 0.8% 1 Adjusted operating profit 90.4 64.5 40.2% 5.1% 4.0% 1.1% 1 Refer to the glossary for defin
Slide 53: UK Adjusted Operating Profit Walk
UK ADJUSTED1 OPERATING PROFIT WALK (£M) 2.1 2.2 5.7 6.8 17.7 90.4 64.5 2019 Technology Technology Services Services SG&A 2020 EBIT* Sourcing Sourcing Volume GP % EBIT* Volume GP % * EBIT refers to adjusted1 operating profit 53 l © Computacenter 2021
Slide 54: Germany Adjusted Income Statement
GERMANY ADJUSTED1 INCOME STATEMENT 2020 2019 2020 2019 Constant Change 2 £m £m €m €m currency Revenue 1,876.3 1,887.2 (0.6%) 2,108.2 2,161.9 (2.5%) 1 Adjusted gross profit 279.9 253.2 10.5% 313.8 290.1 8.2% 14.9% 13.4% 1.5% 14.9% 13.4% 1.5% Administrative expenses (167.3) (173.7) (3.7%) (188.1) (199
Slide 55: Germany Adjusted Operating Profit Walk
GERMANY ADJUSTED1 OPERATING PROFIT WALK (£M) CONSTANT CURRENCY2 10.0 8.1 2.0 21.7 2.3 5.2 112.6 79.5 81.5 2019 Currency 2019 Technology Technology Services Services SG&A 2020 EBIT* EBIT* Sourcing Sourcing Volume GP % EBIT* (constant Volume GP % currency2) * EBIT refers to adjusted1 operating profit
Slide 56: France Adjusted Income Statement
FRANCE ADJUSTED1 INCOME STATEMENT 2020 2019 2020 2019 Constant Change 2 £m £m €m €m currency Revenue 672.8 625.0 7.6% 753.9 715.8 5.3% 1 Adjusted gross profit 74.4 75.7 (1.7%) 83.3 86.7 (3.9%) 11.1% 12.1% (1.0%) 11.0% 12.1% (1.1%) Administrative expenses (61.4) (58.4) 5.1% (68.9) (66.9) 3.0% (9.1%)
Slide 57: France Adjusted Operating Profit Walk
FRANCE ADJUSTED1 OPERATING PROFIT WALK (£M) CONSTANT CURRENCY2 3.4 0.1 3.7 0.2 4.4 1.7 17.3 17.5 13.0 2019 Currency 2019 Technology Technology Services Services SG&A 2020 EBIT* EBIT* Sourcing Sourcing Volume GP % EBIT* (constant Volume GP % currency2) 57 l © Computacenter 2021 * EBIT refers to adjus
Slide 58: North America Adjusted Income Statement
NORTH AMERICA ADJUSTED1 INCOME STATEMENT 2020 2019 2020 2019 Constant Change 2 £m £m $m $m currency Revenue 944.5 750.6 25.8% 1,223.8 957.8 27.8% 1 Adjusted gross profit 86.3 69.5 24.2% 112.2 88.6 26.6% 9.1% 9.3% (0.2%) 9.2% 9.3% (0.1%) Administrative expenses (72.3) (60.4) 19.7% (93.8) (77.0) 21.8%
Slide 59: North America Adjusted Operating Profit Walk
NORTH AMERICA ADJUSTED1 OPERATING PROFIT WALK (£M) CONSTANT CURRENCY2 8.8 4.4 12.3 6.3 0.2 15.5 14.0 9.1 8.9 2019 Currency 2019 Technology Technology Services Services SG&A 2020 EBIT* EBIT* Sourcing Sourcing Volume GP % EBIT* (constant Volume GP % currency2) 59 l © Computacenter 2021 * EBIT refers t
Slide 60: International Adjusted Income Statement
INTERNATIONAL ADJUSTED1 INCOME STATEMENT 2020 2019 Change £m £m Revenue 174.3 193.0 (9.7%) 1 Adjusted gross profit 30.7 43.5 (29.4%) 17.6% 22.5% (4.9%) Administrative expenses (27.1) (35.3) (23.2%) (4.0%) (5.6%) 1.6% 1 Adjusted operating profit 3.6 8.2 (56.1%) 2.1% 4.2% (2.1%) 1,2 Refer to the gloss
Slide 61: International Adjusted Operating Profit Walk
INTERNATIONAL ADJUSTED1 OPERATING PROFIT WALK (£M) CONSTANT CURRENCY2 2.9 7.6 0.2 1.9 0.5 8.5 8.2 8.0 3.6 2019 Currency 2019 Technology Technology SG&A Services Services 2020 EBIT* EBIT* Sourcing Sourcing Volume GP % EBIT* (constant Volume GP % currency2) 61 l © Computacenter 2021 * EBIT refers to a
Slide 62: Net Funds
NET FUNDS • One of the Group’s primary measures when managing the business is adjusted net funds3. 3 Dec 20 Dec 19 Change • Adjusted net funds3 have increased Adjusted net funds £51.5 million since 31 December 2019. £m £m £m • Operating cashflow inflow for 2020 of 309.8 217.9 92.0 £236.8 million (20
Slide 63: Group Cash Flow
2020 2019 GROUP CASH FLOW £m £m Profit before tax 206.6 141.0 Net finance cost/(income) 5.9 6.1 Depreciation and amortisation 38.7 33.0 • Operating net cash inflow of £236.8 million Depreciation of right of use assets 45.2 40.3 Share-based payments 8.0 6.8 (2019: inflow of £198.3 million). Loss on d
Slide 64: Group Balance Sheet
GROUP BALANCE SHEET 2020 £m 2019 £m Change £m Non-current assets Property, plant and equipment 107.0 101.4 5.5 Right-of-use assets 129.6 110.9 18.7 Goodwill and intangibles 274.7 175.7 99.1 Investment in associates 0.1 0.1 0.0 Deferred income tax assets 10.1 9.2 0.9 Prepayments 23.6 3.5 20.1 545.1 4
Slide 65: 2020 Full-Year Results
2020 FULL-YEAR RESULTS Full-year results to 31 December 2020 (16 March 2021)