Slide 1: Preliminary Results 2006
COMPUTACENTER PLC Preliminary Results 2006 13th March, 2007
Slide 2: 2006 Financial Highlights
COMPUTACENTER 2006 Financial Highlights PLC 2006 2005 ∆% Turnover £2.27 bn £2.29 bn (1) Profit before tax* £38.0 m £35.7 m 6 Diluted earnings per share* 13.8 p 11.8 p 17 Net funds** £29.4 m £101.0 m *before exceptional items **before customer-specific financing Page 2
Slide 3: 2006 Highlights
COMPUTACENTER 2006 Highlights PLC UK Product business showing benefits of re-engineering In UK Services, strong performance from Technology Solutions Good underlying progress in Germany, although some unanticipated contract start-up losses Performance in France still unsatisfactory, although improvi
Slide 4: Future Prospects
COMPUTACENTER Future Prospects PLC Too soon to draw any meaningful conclusions from early trading in 2007 Strategic focus: delivery of attractive eps growth Accelerate services growth and broaden range Extend “shared services” delivery Re-engineer product business to reduce cost Extend product sales
Slide 5: Financial Review
COMPUTACENTER PLC Financial Review Tony Conophy
Slide 6: Group – profit and loss account
COMPUTACENTER Group – profit and loss account PLC 2005 Growth 2006 2006 / 2005 £m £m % Revenue 2,269.9 2,285.2 (0.7%) Cost of sales (1,974.4) (1,996.4) (1.1%) Gross profit 295.5 288.8 2.3% Gross profit % 13.0% 12.6% 0.4% Other Operating Expenses (260.5) (259.9) 0.2% Share-based payments (1.4) 0.4 (4
Slide 7: UK – profit and loss account
COMPUTACENTER UK – profit and loss account PLC 2006 2005 Growth 2006/2005 £m £m % Revenues 1,281.5 1,351.3 (5.2%) Gross Profit 181.9 169.9 7.1% 14.2% 12.6% Other Operating Expenses (144.4) (137.8) 4.8% (11.3%) (10.2%) Operating Profit 37.5 32.1 16.8% 2.9% 2.4% Headcount *: Direct 2,841 3,195 (11.1%)
Slide 8: Germany – profit and loss account
COMPUTACENTER Germany – profit and loss PLC account Growth 2006 2005 2006 / 2005 £m £m % Revenues 654.7 618.2 5.9% Gross Profit 83.4 87.7 (4.9%) 12.7% 14.2% Other Operating Expenses (80.6) (82.7) (2.5%) (12.3%) (13.4%) Operating Profit 2.8 5.0 (44.2%) 0.4% 0.8% Headcount *: Direct 2,604 2,481 5.0% I
Slide 9: France – profit and loss account
COMPUTACENTER France – profit and loss account PLC 2006 2005 Growth 2006 / 2005 £m £m % Revenues 307.3 295.8 3.9% Gross Profit 27.7 28.9 (4.2%) 9.0% 9.8% Other Operating Expenses (34.2) (36.6) (6.5%) (11.1%) (12.4%) Operating Profit (6.5) (7.6) (15.0%) (2.1%) (2.6%) Headcount *: Direct 579 563 2.8%
Slide 10: Group – revenue by business segment
COMPUTACENTER Group – revenue by business PLC segment Growth 2006 2005 2006 / 2005 £m £m % Product 1,735.2 1,770.4 (2.0%) Professional services 128.9 114.2 12.8% Support and managed services 405.8 400.6 1.3% Services 534.7 514.8 3.9% Total group 2,269.9 2,285.2 (0.7%) Page 10
Slide 11: Group – cash from operations
COMPUTACENTER Group – cash from operations PLC Growth 2006 2005 2006 / 2005 £m £m % Cash flows from operating activities Operating profit 28.5 27.7 3.2% Depreciation / amortisation 16.5 17.3 (4.8%) Share based payments 1.4 (0.4) (485.2%) Profit / loss on disposal of non-current assets 0.5 (0.1) (662
Slide 12: Group – summary cash flow
COMPUTACENTER Group – summary cash flow PLC 2006 2005 Growth 2006 / 2005 £m £m % Cash generated from operations 25.6 66.0 (61.2%) Income taxes paid (12.0) (18.4) (34.7%) Net cash flows from operating activities 13.6 47.6 (71.5%) Net cash flows from investing activities (3.0) 25.6 (111.8%) Net cash f
Slide 13: Group : customer specific financing
COMPUTACENTER Group : customer specific financing PLC Total Operating Finance Loans financing Lease leases commitments income £m £m £m £m Less than 1 year (4.4) (2.8) (7.2) 8.5 1 to 5 years (2.8) (8.6) (11.4) 12.7 Total (7.2) (11.4) (18.6) 21.2 Page 13
Slide 14: Group – balance sheet
COMPUTACENTER Group – balance sheet PLC 2006 2005 Growth 2006 / 2005 £m £m % Property, plant, equipment 84.9 81.6 4.0% Intangible assets 9.9 9.5 4.8% Investments 0.0 0.3 (100.0%) Deferred tax asset 6.2 5.5 11.5% Non-current assets 101.0 96.9 4.2% Inventories 94.6 100.2 (5.6%) Trade and other receiva
Slide 15: Group – key ratios
COMPUTACENTER Group – key ratios PLC Dec 2006 Dec 2005 Jun 2006 Stock (days) 23 23 21 Debtor (days) 58 51 50 Creditor (days) 40 39 35 Working Capital (days) 41 35 36 Page 15
Slide 16: Operational Review
COMPUTACENTER PLC Operational Review Mike Norris
Slide 17: Group revenue by type
COMPUTACENTER Group PLC 2004 revenue by type 2005 revenue by type 2006 revenue by type 22% 23% 24% 32% 37% 41% 5% 5% 5% 8% 10% 11% 25% 25% 28% Personal Systems Network, Server & Storage Personal Systems Network, Server & Storage Personal Systems Network, Server & Storage Software 3rd Party Services
Slide 18: Group Contract Base
Page 18 £M 100 150 200 250 300 350 Jul-03 Oct-03 Jan-04 Apr-04 Jul-04 Group Contract Base Oct-04 Jan-05 Apr-05 Jul-05 Oct-05 3 yr CAGR = 9.4% Jan-06 Apr-06 Jul-06 Oct-06 PLC COMPUTACENTER
Slide 19: UK revenue by type
COMPUTACENTER UK PLC 2004 revenue by type 2005 revenue by type 2006 revenue by type 19% 21% 22% 32% 37% 41% 7% 6% 5% 8% 11% 12% 25% 26% 28% Personal Systems Network, Server & Storage Personal Systems Network, Server & Storage Personal Systems Network, Server & Storage Software 3rd Party Services Sof
Slide 20: UK Services Strategy
COMPUTACENTER UK Services Strategy PLC We are an IT infrastructure services provider that works with IT departments to reduce cost and increase the value of IT to users Invest in services we can share across that customer base such as helpdesks, datacentres, disaster recovery and technical skills Ac
Slide 21: UK Services Highlights
COMPUTACENTER UK Services Highlights PLC Overall services growth of 3.1% Technology Solutions grew strongly with Professional Services revenue up 10.6% High cost-conscious Support Services market Some good Managed Services wins but some contracts lost at renewal stage In January 2007 we acquired Dig
Slide 22: UK Contract Base
Page 22 £M 100 110 120 130 140 150 160 170 180 190 Jul-03 Oct-03 Jan-04 UK Contract Base Apr-04 Jul-04 Oct-04 Jan-05 Apr-05 Jul-05 Oct-05 3 yr CAGR = 1.5% Jan-06 Apr-06 Jul-06 Oct-06 PLC COMPUTACENTER
Slide 23: UK Product Strategy
COMPUTACENTER UK Product Strategy PLC Re-engineer our product business to deliver lower cost routes to market Invest in systems to continually drive down supply chain costs Build a sizeable presence in the mid market business sector Create a specialist software business unit to increase our market s
Slide 24: UK Product Highlights
COMPUTACENTER UK Product Highlights PLC Overall product revenue down 7.2% End user product revenue down 2.0% Product gross margin increase by 1.7% Improved business controls Less CCD Sales Higher enterprise product mix Higher SME sales Improved e-commerce systems Better vendor terms than 2005 Softwa
Slide 25: Vendor Share
-80% -60% -40% -20% 0% 20% 40% 60% 80% 100% Page 25 Fujitsu Siemens (56.3%) IBM - Lenovo (18.9%) Vendor Share Microsoft (13.3%) NEC (8.1%) HP (4.2%) Toshiba (2.4%) Sun 21.1% IBM 33.3% Cisco 68.8% EMC 83.1% PLC COMPUTACENTER
Slide 26: Germany revenue by type
COMPUTACENTER Germany PLC 2004 revenue by type 2005 revenue by type 2006 revenue by type 19% 28% 31% 31% 34% 34% 2% 8% 5% 33% 2% 29% 9% 9% 28% Personal Systems Network, Server & Storage Personal Systems Network, Server & Storage Personal Systems Network, Server & Storage Software 3rd Party Services
Slide 27: German Strategy
COMPUTACENTER German Strategy PLC Increase the breadth of our customer base Cross sell to our customers Invest in shared and packaged services Grow Managed Services Better risk management Page 27
Slide 28: Germany Highlights
COMPUTACENTER Germany Highlights PLC Revenue grew by 5.9% Operating profit down to £28 million Losses on two new contracts of £6.2 million Overall contract base growth of 22% Same year end spend due to the VAT increase Increase in enterprise product, most notably networking Page 28
Slide 29: Germany Contract Base
Page 29 £M 20 40 60 80 100 120 140 Jul-03 Oct-03 Jan-04 Apr-04 Jul-04 Oct-04 Germany Contract Base Jan-05 Apr-05 Jul-05 Oct-05 3 yr CAGR = 27.8% Jan-06 Apr-06 Jul-06 Oct-06 PLC COMPUTACENTER
Slide 30: France revenue by type
COMPUTACENTER France PLC 2004 revenue by type 2005 revenue by type 2006 revenue by type 13% 12% 12% 3% 3% 4% 7% 11% 13% 57% 56% 15% 62% 17% 14% Personal Systems Network, Server & Storage Personal Systems Network, Server & Storage Personal Systems Network, Server & Storage Software 3rd Party Services
Slide 31: French Strategy
COMPUTACENTER French Strategy PLC Retain and grow the French Army Grow the business in the regions Drive more enterprise business Double Maintenance Reduce costs Page 31
Slide 32: French Highlights
COMPUTACENTER French Highlights PLC Revenue grew by 3.9% Operating loss of £6.5 million with £1.1 million in H2 Fall in margin in the year but some improvement in Q4 Improvement in services particularly Maintenance and Managed Services Ongoing focus on reducing costs Page 32
Slide 33: France Contract Base
Page 33 £M 2 4 6 8 10 12 14 16 18 Jul-03 Oct-03 Jan-04 Apr-04 Jul-04 France Contract Base Oct-04 Jan-05 Apr-05 Jul-05 Oct-05 3 yr CAGR = 17.2% Jan-06 Apr-06 Jul-06 Oct-06 PLC COMPUTACENTER
Slide 34: Future Prospects
COMPUTACENTER Future Prospects PLC Too soon to draw any meaningful conclusions from early trading in 2007 Strategic focus: delivery of attractive eps growth Accelerate services growth and broaden range Extend “shared services” delivery Re-engineer product business to reduce cost Extend product sales
Slide 35: Computacenter
COMPUTACENTER PLC COMPUTACENTER PLC PRODUCT TECHNOLOGY MANAGED Page 35 SUPPLY INTEGRATION SERVICES