Softcat Plc · LSE:SCT
Softcat — FY2020 Earnings Presentation
16 slides from Softcat's earnings presentation, Oct 20, 2020
Slide 1: Results for the year ended 31 July 2020
$Softcat | RESULTS FOR THE YEAR ENDED 31 JULY 2020 te ! Graeme Watt, CEO Graham Charlton, CFO 20 October 2020
Slide 2: Who we are
Who we are We are a leading reseller of infrastructure technology solutions to customers in the UK and Ireland 1534 £1.6bn £93.7m Employees at 31 July 2020 FY20 gross invoiced income FY20 operating profit . fs) 9500 £235.7m 88% Customer base at 31 July 2020 FY20 gross profit FY20 cash conversion rT
Slide 3: 2020 summary results
2020 summary results * Gross invoiced income (Gll) is retained as an alternative performance measure and represents the full value of invoices raised to customers before the IFRS 15 net down process overlaid on certain items such as cloud-based software. Working capital movements are thereforemore c
Slide 4: People, Customers and Communities First; Market Dynamics; Resilience in our model
People, Customers and Communities First Market Dynamics Resilience in our model
Slide 5: Business update
Business update e Structural growth in the market continues, driven by remote working, adoption of hybrid multi-cloud computing, digital transformation, the proliferation of connected devices, distributed IT at the edge and security e Continued investment in headcount to enhance capacity and capabil
Slide 6: Strategy update and progress
Strategy update and progress ACQUIRE SELL MORE TO MORE CUSTOMERS EXISTING CUSTOMERS * Customer base up 300 (+3.3%) ¢ Gross profit per customer up 7.8% ¢ Growth coming from all customer ¢ Growth coming from all customer segments segments ¢ We estimate that we trade with around ¢ We estimate that our
Slide 7: 2020 Financial Review
$Softcat | 2020 FINANCIAL REVIEW Graham Charlton, CFO
Slide 8: Summary income statement
Summary income statement a ENTS Growth _ Revenue 1,077.1 991.8 8.6% Gross invoiced income 1,646.2 1,414.1 16.4% | Gross profit 235.7 211.1 11.6% crisi%’ = ititit«t KSC | aamin-expenses (1420) 267) (124%) Operating profit 93.7 84.5 10.9% | OP/GP % 39.8% 40.0% lineest = st=<C*«~«s S(t‘ | Tax (18.0) (1
Slide 9: H1/H2 split
H1/H2 split £m H1 20 H119 Growth Gross invoiced income 7277 6078 19.7% Gross profit 111.7 94.7 18.0% GP/GII % 15.3% 15.6% Admin. expenses (71.2) (60.8) (17.1%) Operating profit 40.5 33.9 19.5% OP/GP % 36.2% 35.8% £m H2 20 H219 Growth Gross invoiced income 918.5 806.3 13.9% Gross profit 124.0 116.5 6
Slide 10: £250.0m £230.0m £210.0m £190.0m £170.0m £150.0m £130.0m £110.0m £90.0m £70.0m £50.0m 550 750 950
£250.0m £230.0m £210.0m £190.0m £170.0m £150.0m £130.0m £110.0m £90.0m £70.0m £50.0m 550 750 950 1,150 1,350 1,550 1,750 1,950
Slide 11: Customer base and GP per customer
12,000 £26k 11,000 £24k 10,000 £22k 9,000 £20k 8,000 £18k 7,000 £16k 6,000 £14k Jul-15 Jan-16 Jul-16 Jan-17 Jul-17 Jan-18 Jul-18 Jan-19 Jul-19 Jan-20 Jul-20 Customer base GP per Customer
Slide 12: Cash flow
Cash flow £m FY20 FY19 le Capital expenditure increased as expected during FY20 due to major refurbishment of the Marlow and Manchester offices Operating profit 93.7 84.5 as well as progress through the first phase of the finance —_ a system implementation Depreciation and amortisation 36 15 | Expen
Slide 13: Dividend
Dividend FY20 FY19 Interim (FY20 declared not paid) 5.4p 4.5p Final (FY20 normalised) 11.2p 10.4p Total ordinary 16.6p 14.9p Special 76p 16.0p Ex-dividend date 5 November 2020 Payment date 11 December 2020 e The Company’s dividend policy remains unchanged e The normal dividend constitutes 40-50% of
Slide 14: Closing remarks
SSoftcat | CLOSING REMARKS Graeme Watt, CEO
Slide 15: Summary
Summary e Record performance e Dealing effectively with challenges of CV-19 pandemic e Growth was again broad based with most business lines and all customer segments performing well e Cash conversion maintained e Ordinary and special dividend proposed e Our straightforward strategy remains unchange
Slide 16: Outlook
Outlook OD we During the last four months of our 2020 financial year our public sector business performed strongly, but we did experience a softening in demand from corporate customers. This year has started well, however we do expect corporate customers to continue to be circumspect with their spen