Softcat Plc · LSE:SCT
Softcat — H1 2020 Earnings Presentation
15 slides from Softcat's earnings presentation, Mar 17, 2020
Slide 1: Results for the 6 months ended 31 January 2020
$Softcat RESULTS FOR THE 6 MONTHS ENDED 31 JANUARY 2020 Graeme Watt, CEO Graham Charlton, CFO 17 March 2020
Slide 2: Who we are
Who we are We are a leading reseller of infrastructure technology solutions to customers in the UK&l, with multinational fulfilment capabilities 1483 £992m £84.5m Employees at 31 January 2020 FY19 revenue FY19 operating profit . fs) 9500 £21im 92% Customer base at 31 FY19 gross profit FY19 cash conv
Slide 3: H1 2020 summary results
H1 2020 summary results Sustained profitable growth e Gross profit growth of 18.0% to £112m e Operating profit up 19.5% to £40.5m e Revenue* up 20.8% to £524m e Gross invoiced income* up 19.7% to £728m e Gross profit per customer growth of 12.2% to £24.1k e Customer base increased 4.2% to 9,500 e 29
Slide 4: Business update
Business update {<=> #vas e Structural growth in the market continues, driven by WE ARE A hybrid and cloud computing, digital transformation, CaO GHisices OF the proliferation of connected devices, distributed IT SOLUTIONS at the edge and security NO ences e Ongoing investment in headcount with the
Slide 5: Strategy update and progress
Strategy update and progress SELL MORE TO EXISTING ACQUIRE MORE CUSTOMERS CUSTOMERS e Customer base up 400 (+4.2%) e Gross profit per customer up 12.2% ¢ Growth coming from both corporate e Product penetration metrics increasing and public sector across all sales force cohorts EXPANDING OUR PEOPLE A
Slide 6: Market size and wallet share — new analysis and data
Market size and wallet share — new analysis and data Large and growing market e The most recent CRN Top 350 VARs report comprises businesses reporting a total of £22bn in income e Gartner estimate that the UK (non-consumer) IT market was worth £100bn in 2019 e Company analysis of these and other sou
Slide 7: H1 2020 Financial Review
$Softcat H1 2020 FINANCIAL REVIEW Graham Charlton, CFO Results for the 6 months ended 31 January 2020 7
Slide 8: Summary income statement
Summary income statement £m H1FY20 H1FY19 Growth Revenue 524.1 434.0 20.8% Gross invoiced 9 income 7277 607.8 19.7% |e Gross profit 111.7 94.7 18.0% GP % 21.3% 21.8% Admin. expenses (71.2) (60.8) (17.1%) Operating Profit 40.5 33.9 19.5% OP /GP % 36.2% 35.8% Interest 0.0 01 Tax (7.5) (6.5) + Profit a
Slide 9: £250m £230m £210m £190m £170m £150m £130m £110m £90m £70m £50m 500 700 900
£250m £230m £210m £190m £170m £150m £130m £110m £90m £70m £50m 500 700 900 1,100 1,300 1,500 1,700 1,900
Slide 10: Customer Base and GP per Customer
Customer Base GP per Customer £24k 10,000 £20k 8,000 £16k 6,000 4,000 £12k Jul-15 Jan-16 Jul-16 Jan-17 Jul-17 Jan-18 Jul-18 Jan-19 Jul-19 Jan-20
Slide 11: Cash flow
Cash flow £m FY20 FY19 Operating profit 40.5 33.9 aoa oe b Capital expenditure requirements have increased as expected Depreciation and amortisation 1.6 0.8 | due to implementation of the new finance system and major et capital expenditure (2.0) (1.3) a-77~ | refurbishment of the Marlow and Manchest
Slide 12: Dividend
Dividend FY20 FY19 Interim 5.4p 4.5p Ex Dividend Date 2 April 2020 Payment Date 15 May 2020 e The Company's dividend policy remains unchanged e The normal dividend constitutes 40-50% of post tax profits e The Company seeks to maintain a minimum cash balance of £30m but will periodically consider the
Slide 13: Closing remarks
$Softcat CLOSING REMARKS Graeme Watt, CEO ag —_ —_ Results for the 6 months ended 31 January 2020 13
Slide 14: Summary
Summary e Our straight forward strategy remains unchanged and continues to serve us well e Market conditions were again strong in the first half and we think the structural growth drivers will continue in the medium term e Strong growth also reflects further gains in market share e Growth was again
Slide 15: Outlook
Outlook e The second half has started well and to date we have not seen a material impact from the ongoing Covid-19 outbreak, although this does create uncertainty for the remainder of our financial year. Given the strength of our business model, lack of any bank debt and a strong cash position, we