Slide 1: Interim Results 2007
COMPUTACENTER PLC Interim Results 2007 11th September, 2007
Slide 2: H1 2007 - Financial Highlights
COMPUTACENTER H1 2007 - Financial Highlights PLC 2007 2006 ∆% Turnover £1.16 bn £1.11 bn 4.1 Operating profit £12.8 m £11.5 m 12.1 Profit before tax £12.8 m £14.5 m (11.8) Diluted earnings per share 4.7 p 4.3 p 9.3 Net funds* (£16.5 m) £92.4 m** *prior to customer-specific financing **prior to retur
Slide 3: H1 2007 Operational Highlights
COMPUTACENTER H1 2007 Operational Highlights PLC Signing a 5 year contract with BT Group UK services losses in 2006 and price erosion on renewals Improving UK services pipeline Weak UK product sales particularly in Q1 to Government Strong German performance Improvement in France Page 3
Slide 4: Looking Ahead
COMPUTACENTER Looking Ahead PLC Positive start to H2 but too early to draw meaningful conclusion We are increasingly confident about our outlook for the full year, which remains unchanged Page 4
Slide 5: Financial Review
COMPUTACENTER PLC Financial Review Tony Conophy Blackfriars 11th September 2007
Slide 6: Group – profit and loss account
COMPUTACENTER Group – profit and loss account PLC Growth Growth Existing Acquired H1 2007 H1 2006 07v06* 07v06 £m £m £m £m % % Revenues 1,138.4 22.0 1,160.3 1,114.9 4.1% 2.1% Gross Profit 148.9 5.2 154.2 145.3 6.1% 2.5% 13.1% 23.7% 13.3% 13.0% 0.3% 0.0% Other Operating Expenses (135.5) (5.6) (141.1)
Slide 7: UK – profit and loss account
COMPUTACENTER UK – profit and loss account PLC Growth Growth Existing Acquired H1 2007 H1 2006 07v06* 07v06 £m £m £m £m % % Revenues 649.2 22.0 671.2 661.1 1.5% (1.8%) Gross Profit 90.1 5.2 95.3 91.1 4.6% (1.1%) 13.9% 23.7% 14.2% 13.8% 0.4% 0.1% Other Operating Expenses (78.3) (5.6) (83.8) (74.7) 12
Slide 8: Germany – profit and loss account
COMPUTACENTER Germany – profit and loss PLC account Growth H1 2007 H1 2006 07v06 £m £m % Revenues 340.7 297.7 14.4% Gross Profit 43.3 40.4 7.3% 12.7% 13.6% Other Operating Expenses (39.6) (39.9) (1.0%) (11.6%) (13.4%) Operating Profit 3.8 0.5 739.7% 1.1% 0.2% Headcount *: Direct 2,820 2,506 12.5% In
Slide 9: France – profit and loss account
COMPUTACENTER France – profit and loss account PLC Growth H1 2007 H1 2006 07v06 £m £m % Revenues 135.3 141.7 (4.5%) Gross Profit 14.2 12.6 12.5% 10.5% 8.9% Other Operating Expenses (16.3) (18.0) (9.4%) (12.0%) (12.7%) Operating Profit (2.1) (5.4) (60.6%) (1.6%) (3.8%) Headcount *: Direct 611 568 7.5
Slide 10: Group – revenue by business segment
COMPUTACENTER Group – revenue by business PLC segment Growth Growth H1 2007 H1 2006 07v06* 07v06 £m £m % % Product 873.6 846.8 3.2% 2.8% Professional services 71.1 59.3 19.9% 9.1% Support and managed services 215.6 208.8 3.2% (2.6%) Services 286.7 268.1 6.9% (0.0%) Total group 1,160.3 1,114.9 4.1% 2
Slide 11: Group – cash from operations
COMPUTACENTER Group – cash from operations PLC H1 2007 H1 2006 £m £m Operating profit 12.8 11.4 Depreciation 11.1 6.9 Amortisation 1.6 0.9 Share based payment 1.3 0.6 Decrease in inventories 4.9 12.8 Decrease in trade and other receivables 16.2 14.2 Decrease in trade and other payables (36.2) (41.6)
Slide 12: Group – summary cash flow
COMPUTACENTER Group – summary cash flow PLC H1 2007 H1 2006 FY 2006 £m £m £m Cash generated from operations 11.8 5.6 25.6 Income taxes paid (6.3) (4.7) (12.0) Net cash flows from operating activities 5.4 0.8 13.6 Net cash flows from investing activities (39.4) 1.6 (3.0) Net cash flows from financing
Slide 13: Group : customer specific financing
COMPUTACENTER Group : customer specific financing PLC Finance Total financing Operating Loans leases commitments Lease income £m £m £m £m Less than 1 year (5.3) (13.9) (19.2) 19.7 1 to 5 years (1.4) (19.8) (21.2) 22.2 Total (6.7) (33.8) (40.5) 41.9 Page 13
Slide 14: Group – balance sheet
COMPUTACENTER Group – balance sheet PLC Jun 07 Jun 06 Dec 06 £m £m £m Non-current assets Goodwill & Intangibles 44.8 9.9 9.9 Property, plant and equipment 102.1 77.5 84.9 Deferred income tax asset 8.2 5.6 6.2 155.1 93.0 101.0 Current assets Inventories 92.0 87.7 94.6 Trade & other receivables 410.4
Slide 15: Group – key ratios
COMPUTACENTER Group – key ratios PLC Jun 07 Jun 06 Dec 06 Stock (days) 22 21 23 Debtor (days) 55 51 58 Creditor (days) 39 35 40 Working Capital (days) 37 37 41 Page 15
Slide 16: Operational Review
COMPUTACENTER PLC Operational Review Mike Norris
Slide 17: Agenda
COMPUTACENTER Agenda PLC Group revenue by type UK Services UK Product Germany France Page 17
Slide 18: Revenue by type – Group
COMPUTACENTER Revenue by type – Group PLC 2005 revenue by type 2006 revenue by type 2007 revenue by type 23% 24% 24% 31% 34% 38% 5% 5% 5% 9% 11% 12% 25% 26% 27% Personal Systems Network, Server & Storage Personal Systems Network, Server & Storage Personal Systems Network, Server & Storage Software 3
Slide 19: Contract Base – Group
£M Page 19 100 150 200 250 300 350 Jun-04 Sep-04 Dec-04 Mar-05 Jun-05 Contract Base – Group Sep-05 Dec-05 Mar-06 Jun-06 3 yr CAGR = 11.4% Sep-06 Dec-06 Mar-07 Jun-07 PLC COMPUTACENTER
Slide 20: Revenue by type – UK
COMPUTACENTER Revenue by type – UK PLC 2005 revenue by type 2006 revenue by type 2007 revenue by type 18% 20% 21% 31% 35% 38% 7% 6% 5% 9% 12% 14% 27% 27% 28% Personal Systems Network, Server & Storage Personal Systems Network, Server & Storage Personal Systems Network, Server & Storage Software 3rd
Slide 21: UK Services Highlights
COMPUTACENTER UK Services Highlights PLC Overall services revenue decline of 3.7% to £129.9 million Managed Services revenue decline of 14.3% Good contractual win rate in H1, contract base will be marginally up on the year as a whole Page 21
Slide 22: Contract Base – UK
COMPUTACENTER Contract Base – UK PLC 190 180 170 160 150 £M 140 130 3 yr CAGR = 0.5% 120 110 100 Mar-05 Mar-06 Mar-07 Jun-04 Dec-04 Jun-05 Dec-05 Jun-06 Dec-06 Jun-07 Sep-04 Sep-05 Page 22 Sep-06
Slide 23: UK Services Highlights
COMPUTACENTER UK Services Highlights PLC Overall services revenue decline of 3.7% to £129.9 million Managed Services revenue decline of 14.3% Good contractual win rate in H1, contract base will be marginally up on the year as a whole Renewal of the BT contract at similar revenue but lower margins Pr
Slide 24: UK Services Acquisitions
COMPUTACENTER UK Services Acquisitions PLC Digica Datacentre, managed services and hosting provider Increases our skills and facilities H1 profit performance below expectation Confident of significant improvement in H2 Allnet Provider of network integration and structured cabling services Increments
Slide 25: UK Product Highlights
COMPUTACENTER UK Product Highlights PLC UK product revenue decline of 1.3% to £519.2 million Increasing demand from customers for Computacenter to own assets Continued investment in internal and external systems Desktop decline offset by server, network and storage growth Page 25
Slide 26: Vendor Share
-20% 0% 20% 40% 60% 80% 100% Page 26 NEC (18.4%) IBM - Lenovo (16.2%) Vendor Share Sun (15.4%) HP (14.6%) Toshiba (8.0%) Fujitsu Siemens 8.4% Cisco 21.0% Microsoft 38.5% EMC 57.9% IBM 64.1% PLC COMPUTACENTER
Slide 27: UK Product Highlights
COMPUTACENTER UK Product Highlights PLC UK product revenue decline of 1.3% to £519.2 million Increasing demand from customers for Computacenter to own assets Continued investment in internal and external systems Desktop decline offset by server, network and storage growth Software revenues increase
Slide 28: Revenue by type – Germany
COMPUTACENTER Revenue by type – Germany PLC 2005 revenue by type 2006 revenue by type 2007 revenue by type 22% 21% 31% 34% 35% 34% 2% 30% 3% 5% 31% 8% 25% 9% 9% Personal Systems Network, Server & Storage Personal Systems Network, Server & Storage Personal Systems Network, Server & Storage Software 3
Slide 29: German Highlights
COMPUTACENTER German Highlights PLC Record operating performance Services revenue up 12% Continued growth in the contract base Page 29
Slide 30: Contract Base – Germany
COMPUTACENTER Contract Base – Germany PLC 160 140 120 100 £M 80 60 3 yr CAGR = 32.6% 40 20 - Jun-04 Dec-04 Mar-05 Jun-05 Dec-05 Mar-06 Jun-06 Dec-06 Mar-07 Jun-07 Sep-04 Sep-05 Sep-06 Page 30
Slide 31: German Highlights
COMPUTACENTER German Highlights PLC Record operating performance Services revenue up 12% Continued growth in the contract base Shared datacentre contract losses removed in H1 This will aid material improvement in H2 Desktop product growth despite price decline due to one significant contract Page 31
Slide 32: Vendor share Germany
-40% -30% -20% -10% 0% 10% 20% 30% 40% 50% Page 32 SUN (35.6%) EMC (25.7%) IBM (19.2%) Cisco (8.7%) HP 0.6% Vendor share Germany Microsoft 1.0% NetApp 16.5% FSC 17.2% Samsung 21.0% Lenovo 42.2% PLC COMPUTACENTER
Slide 33: German Highlights
COMPUTACENTER German Highlights PLC Record operating performance Services revenue up 12% Continued growth in the contract base Shared datacentre contract losses removed in H1 This will aid material improvement in H2 Desktop product growth despite price decline due to one significant contract Overall
Slide 34: Revenue by type – France
COMPUTACENTER Revenue by type – France PLC 2005 revenue by type 2006 revenue by type 2007 revenue by type 14% 13% 14% 3% 4% 4% 9% 13% 14% 51% 55% 57% 17% 15% 17% Personal Systems Network, Server & Storage Personal Systems Network, Server & Storage Personal Systems Network, Server & Storage Software
Slide 35: French Highlights
COMPUTACENTER French Highlights PLC Operating loss reduced by 60.6% despite small revenue decline Material margin improvement in both product and services Services revenue growth of only 0.8% but further contract base improvement Page 35
Slide 36: Contract Base – France
Page 36 £M - 2 4 6 8 10 12 14 16 18 20 Jun-04 Sep-04 Dec-04 Mar-05 Jun-05 Sep-05 Contract Base – France Dec-05 Mar-06 Jun-06 3 yr CAGR = 22.1% Sep-06 Dec-06 Mar-07 Jun-07 PLC COMPUTACENTER
Slide 37: French Highlights
COMPUTACENTER French Highlights PLC Operating loss reduced by 60.6% despite small revenue decline Material margin improvement in both product and services Services revenue growth of only 0.8% but further contract base improvement Enterprise product growth not yet gaining sufficient traction Page 37
Slide 38: Vendor share France
-50% 0% 50% 100% 150% 200% 250% 300% Page 38 HP (24.0%) NEC (15.0%) Dell 1.7% Xerox 8.5% Vendor share France Lenovo 11.2% Microsoft 18.7% Epson 34.1% IBM 43.1% Acer 241.5% Sun 283.9% PLC COMPUTACENTER
Slide 39: French Highlights
COMPUTACENTER French Highlights PLC Operating loss reduced by 60.6% despite small revenue decline Material margin improvement in both product and services Services revenue growth of only 0.8% but further contract base improvement Enterprise product growth not yet gaining sufficient traction H2 compa
Slide 40: Looking Ahead
COMPUTACENTER Looking Ahead PLC Positive start to H2 but too early to draw meaningful conclusion We are increasingly confident about our outlook for the full year, which remains unchanged Page 40
Slide 41: Interim Results 2007
COMPUTACENTER PLC Interim Results 2007 11th September, 2007