Slide 1: 2024 Full Year Results
2024 Full Year Results 18 March 2025
Slide 2: Disclaimer
Disclaimer This presentation includes statements that are, or may be deemed to be, ‘forward-looking statements’. These forward-looking statements can be identified by the use of forward-looking terminology, including the terms ‘anticipates’, ‘believes’, ‘estimates’, ‘expects’, ‘intends’, ‘may’, ‘pla
Slide 3: Highlights
Highlights Improved • Solid 2024 result against a tough H1 comparative, with record H2 performance momentum across • Another year of strong cash generation 2024 • Good progress in growing the number of major customers Continued strategic • Double-digit growth in Professional Services progress • Anot
Slide 4: Financial Review
Financial Review Keith Mortimer, Group Commercial Finance Director 4
Slide 5: 2024 Financial highlights
2024 Financial highlights Gross invoiced Revenue Gross Adjusted income profit profit before tax £9.9bn £7.0bn £1,035m £254m +0.5% CCY +2.9% CCY +1.2% CCY -6.3% CCY -1.6% +0.6% -0.9% -8.6% Adjusted Dividend Free cash flow Adjusted diluted EPS net funds 159.9p 70.7p £349m £482m -8.5% +1.0% +2.6% +5.1%
Slide 6: 2024 Income Statement
2024 Income Statement 2024 2023 Change Change (CCY) £m £m Gross invoiced income (GII) 9,916.5 10,081.4 -1.6% +0.5% • GII slightly up in constant currency, Revenue 6,964.8 6,922.8 +0.6% +2.9% mainly reflecting challenging H1 Gross profit 1,035.0 1,044.0 -0.9% +1.2% comparative and a strong H2 Gross p
Slide 7: Operating profit bridge
Operating profit bridge £m in constant currency (18.0) • Increase in Technology Sourcing 22.4 (6.8) 6.8 1.4 (30.6) volume accompanied by slight margin decline, reflecting strong execution and product mix 271.5 264.7 246.7 • Modest increase in Services volume driven by Professional Services; margin i
Slide 8: A record second half
A record second half H2 Gross profit since 2020 (£m) H2 Adjusted operating profit since 2020 (£m) CAGR CAGR +8.7% +6.4% +7.0% 563 166 522 538 in CCY 155 153 +11.2% in CCY 140 443 129 403 H2 20 H2 21 H2 22 H2 23 H2 24 H2 20 H2 21 H2 22 H2 23 H2 24 8
Slide 9: Performance overview by geography
Performance overview by geography Resilience from diversified geographic exposure Germany North America United Kingdom 2024 Adj. operating profit -0.8% 2024 Adj. operating profit +14.0% 2024 Adj. operating profit -30.8% £156.9m (2023: £163.0m) in CCY £72.3m (2023: £65.0m) in CCY £40.7m (2023: £58.8m
Slide 10: Diversified by Service Line and geography
Diversified by Service Line and geography North America nearly 25% of Group operating profit Revenue by Service Line Revenue by Geography Adjusted operating profit1 by Geography £6,965m £6,965m £297.6m1 +2.9% in +2.9% in -5.6% in CCY CCY CCY Share of Change Change Share of Change Change Share of Cha
Slide 11: Continued focus on Productivity improvement
Continued focus on Productivity improvement Adjusted operating profit as a percentage of gross profit 30.8% 31.4% • Group-wide investment has 30.0% 28.7% 27.4% increased significantly over 25.1% 30.1% last three years 28.4% 28.4% 25.9% 22.7% 23.8% • Continued focus on improvement as we drive volume
Slide 12: Another year of strong cash generation
Another year of strong cash generation Summary cash flows (£m) Group inventory • £307m at 31 December 2024 • Up £91m year-on-year driven 10.4 (61.1) 151.0 by US contract wins (31.5) (18.4) Adjusted net funds (78.9) 348.6 • Adjusted net funds at 31 33.1 December 2024 increased by (217.3) 251.3 £23m y
Slide 13: Consistently strong Free Cash Flow generation and ROCE
Consistently strong Free Cash Flow generation and ROCE Free cash flow (£m) Return on Capital Employed1 339.9 348.6 73.2% 55.4% 52.2% 46.7% 42.9% 160.3 150.9 136.6 2020 2021 2022 2023 2024 2020 2021 2022 2023 2024 1. ROCE is calculated as adjusted operating profit, divided by capital employed, which
Slide 14: Disciplined and balanced approach to capital allocation
Disciplined and balanced approach to capital allocation Nearly £1bn of capital distributed to shareholders since 2013 Capital returns to shareholders (£m) Organic Investment • Drive market share gains and improve efficiency 300 Total Return 250 since 2013 M&A £974m1 • Continue to assess acquisitions
Slide 15: 2025 technical guidance
2025 technical guidance Exchange rates Central costs Capex Adjusted effective Dividend cover 15 tax rate 2024 rates1: GBP/USD £50-55m 29.5-31.5% 2-2.5x c.£35m $1.278 adjusted GBP/EUR diluted EPS €1.181 1. Foreign exchange rates for Income Statement 15
Slide 16: Operating review
Operating review Mike Norris, CEO 16
Slide 17: Our strategic focus
Our strategic focus Target Scale our Empower market activities our people customers 17
Slide 18: Good growth in major customers
Good growth in major customers Increases in Germany, North America and UK Major customers each generating >£1m of gross profit pa • Growing the number of major customers is an important driver of long-term growth and resilience 184 192 179 155 162 51 • Majority of our major customers use at 41 47 le
Slide 19: Significant potential for further growth
Significant potential for further growth We have significant customer growth opportunities across all of our geographies Major customers in 2024 – those generating >£1m of gross profit 22 51 54 65 455 965 325 380 Customers and prospects with the potential to become major customers 19
Slide 20: North America – another record year
North America – another record year Accounting for nearly a quarter of Group adjusted operating profit in 2024 Operating profit ($m) • 14.0% increase in adjusted operating 92.3 profit in 2024 to $92.3m Computacenter Total acquisition 81.0 ‘value added’ • Growing enterprise and hyperscale spend of $3
Slide 21: Our value to high-tech
Our value to high-tech Leveraging Technology Sourcing and Professional Services 1 2 3 4 Rapidly Growing Supply Chain Customized Rack Global Market Reach Services Demands Management Integration Scalability Cost Efficiency AI Global Operations Reliability Velocity Dense Compute Scalable Infrastructure
Slide 22: Rapid Data Center Deployment
Rapid Data Center Deployment Speed and agility Number of integrated rack builds delivered in North America 1,454 HCAP solves unique and complex problems for our target customers 782 676 • Purpose built, industry leading • Improves accuracy 538 470 • Delivers more value to our customers 2020 2021 202
Slide 23: Building long-term relationships with Enterprise customers
Building long-term relationships with Enterprise customers Through our integrated services model Healthcare Southeast Financial East Retail Southeast Technology Sourcing Technology Sourcing Technology Sourcing Professional Services Professional Services Professional Services Managed Services Managed
Slide 24: Germany – robust performance
Germany – robust performance • Broadly stable result is pleasing given: Germany adjusted operating profit (£m) • strong comparative • soft economic backdrop CAGR • includes underperforming Managed Services contract 14.6% 163.0 156.9 -0.8% 137.8 140.9 in CCY • Growth in podium customers reflects brea
Slide 25: UK – softer performance but growth in major customers
UK – softer performance but growth in major customers • Performance reflects softer Technology Sourcing demand for UK adjusted operating profit (£m) hardware, a sharper competitive environment and an underperforming Managed Service contract 33.3 • H2 2024 significantly ahead of H1 2024 27.2 25.5 • S
Slide 26: Professional Services: good progress in scaling our offer
Professional Services: good progress in scaling our offer Professional Services Professional 2024 Professional Services Services revenue (£m) +6.2% • Good progress in replicating and scaling our proven success in Germany to grow market share across all regions 408 £778m +12% in CCY • Advisory and de
Slide 27: Managed Services: building the pipeline
Managed Services: building the pipeline Managed Services Professional 2024 Managed Services Services revenue (£m) -4.6% • Portfolio of contracts performed as anticipated with exception of two underperforming contracts in Germany and UK 345 -4.8% £860m -5% in CCY 295 • Increasing value to customers t
Slide 28: Recover a device for every device we sell
Circular Services growth Recover a device for every device we sell Circular Services Center Integration Center 895k +15% devices recovered (2024) 3.5m new devices sold (2024) 28
Slide 29: Good progress with roll out of our Group-wide investments
Good progress with roll out of our Group-wide investments 29 SALES & CUSTOMER ENGAGEMENT ARTIFICIAL INTELLIGENCE CIRCULAR SERVICES New Sales CRM and Quotation Leveraging AI capabilities of Circular Services ERP system systems being deployed globally new platforms: e.g. ServiceNow, configured for our
Slide 30: Summary and outlook
Summary and outlook Solid overall performance in 2024 Strategic progress • Tough first half comparison • Growth in major customers • Record second half profit • Strong growth in Professional • Continued investment for future growth Services Another year of strong cash generation 2025 outlook • Disci
Slide 31: Q&A
Q&A 31
Slide 32: Appendix
Appendix 32
Slide 33: Track record of growth in profit, cash and shareholder returns
Track record of growth in profit, cash and shareholder returns Adjusted diluted EPS (p) Net cash flow from operations (£m) Capital returned to shareholders (£m) 200 450 417.1 Total Return 180 159.9 400 since 2013 160 10 year £974m 350 10 year CAGR 140 13% CAGR 300 16% 120 250 100 200 80 150 60 100 4
Slide 34: Strategic KPIs
Strategic KPIs Customer growth Lead with Services Productivity No of customers >£1m gross profit1 Services revenue (£m) Adj Op profit as % of Gross profit1 1,637 1,638 30.1% 1,571 28.4% 28.4% 192 184 179 1,451 25.9% 23.8% 162 1,261 155 2020 2021 2022 2023 2024 2020 2021 2022 2023 2024 2020 2021 2022
Slide 35: Financial KPIs
Financial KPIs Gross invoiced income / Revenue (£m) Gross profit (£m) CAGR CAGR 16% 9% 10,081 9,917 1,044 1,035 9,052 947 868 6,923 721 5,441 6,471 6,923 6,965 5,035 2020 2021 2022 2023 2024 2020 2021 2022 2023 2024 Revenue GII Adjusted diluted EPS (p) Adjusted net funds (£m) CAGR 6% CAGR 482 459 16
Slide 36: Long-term growth across the Group
Long-term term growth across the Group Technology Sourcing GII (£m) Professional Services revenue (£m) Managed Services revenue (£m) CAGR CAGR CAGR 2% 19% 14% 778 8,445 8,278 711 665 925 7,482 586 906 5,473 460 865 860 4,180 801 2020 2021 2022 2023 2024 2020 2021 2022 2023 2024 2020 2021 2022 2023 2
Slide 37: 2024 Summary Income Statement
2024 Summary Income Statement 2024 2023 Constant Change £m £m currency Technology Sourcing 8,278.1 8,444.9 (2.0%) 0.1% Professional Services 778.3 711.2 9.4% 11.9% Managed Services 860.1 925.3 (7.0%) (5.3%) Services 1,638.4 1,636.5 0.1% 2.1% Gross invoiced income 9,916.5 10,081.4 (1.6%) 0.5% Technol
Slide 38: Adjusted operating profit by geography – H1/H2 splits
Adjusted operating profit by geography – H1/H2 splits FY 2024 H2 2024 H1 2024 FY 2023 H2 2023 H1 2023 £m £m £m £m £m £m Adjusted operating profit UK 40.7 27.3 13.4 58.8 33.3 25.5 Germany 156.9 97.4 59.5 163.0 89.7 73.3 Western Europe 13.7 11.6 2.1 14.9 9.0 5.9 North America 72.3 46.2 26.1 65.0 35.7
Slide 39: Summary balance sheet
Summary balance sheet FY 2024 FY 2023 £m £m Non-current assets Property, plant and equipment 90.7 96.1 Right-of-use assets 119.0 104.5 Intangible assets 317.5 322.4 Trade and other receivables, Prepayment and Deferred tax asset 46.8 43.1 574.0 566.1 Current assets Inventories 307.2 216.0 Trade and o
Slide 40: Inventory by geography
Inventory by geography 31 December 31 December Change Constant currency 2024 2023 £m £m United Kingdom 18.9 15.4 22.7% 22.7% Germany 93.5 76.3 22.5% 28.5% France 15.3 23.5 (34.9%) (31.7%) North America 166.3 98.1 69.5% 67.0% International 13.2 2.7 388.9% 387.7% Total Group 307.2 216.0 42.2% 44.4% 40
Slide 41: Balance sheet strength
Balance sheet strength Record adjusted net funds 31 December 2024 31 December 2023 Change £m £m £m Cash and cash equivalents 489.6 471.2 18.4 • Adjusted net funds at 31 December 2023 increased by Bank loans (5.3) (7.7) 2.4 £23.2m to £482.2m Other loans (2.1) (4.5) 2.4 Adjusted net funds 482.2 459.0