Slide 1: Computacenter PLC
COMPUTACENTER PLC PRODUCT TECHNOLOGY MANAGED SUPPLY INTEGRATION SERVICES
Slide 2: Preliminary Results 2005
COMPUTACENTER PLC Preliminary Results 2005 14th March, 2006
Slide 3: 2005 Financial Highlights
COMPUTACENTER 2005 Financial Highlights PLC 2005 2004 ∆% Turnover £2.29 bn £2.41 bn (5) Profit before tax £34.0 m £67.9 m (50) Earnings per share 10.9 p 25.9 p (58) Net cash £100.4 m £41.0 m Page 3
Slide 4: Cash Return
COMPUTACENTER Cash Return PLC Cash resources exceed requirements £75 million to be returned to shareholders in Q2 Assumes resolution of tax considerations Intention to return further cash in future Subject to acquisition opportunities Page 4
Slide 5: 2005 Highlights
COMPUTACENTER 2005 Highlights PLC Major strategic repositioning underway in UK UK annual services contract base growth of 4.6% Encouraging growth in German services activities Satisfactory resolution of GE disputes Improved French performance in H2 … although challenges remain Page 5
Slide 6: Future Prospects
COMPUTACENTER Future Prospects PLC Trading in first two months of 2006 below last year But trading becoming increasingly end-quarter weighted Strategic focus: delivery of attractive eps growth Accelerate services growth and broaden range Re-engineer product business to reduce cost Extend product sal
Slide 7: Financial Review
COMPUTACENTER PLC Financial Review Tony Conophy
Slide 8: Group – profit and loss account
COMPUTACENTER Group – profit and loss account PLC 2004 Growth 2005 2005 / 2004 IFRS IFRS £m £m % Continuing operations Revenue 2,285.2 2,410.6 (5.2%) Cost of sales (1,996.4) (2,080.4) (4.0%) Gross profit 288.8 330.2 (12.5%) Gross profit % 12.6% 13.7% (1.1%) Other Operating Expenses (261.2) (264.0) (
Slide 9: Group - IFRS vs UK GAAP
COMPUTACENTER Group - IFRS vs UK GAAP PLC 2005 2004 TOTAL TOTAL £m £m UK GAAP : Profit before tax and exceptionals 33.0 67.3 1a Positive goodwill 0.3 0.3 1b Negative goodwill 0.0 (0.5) 2 Share based payment 0.4 (0.9) 3 Employee benefits (0.1) 0.0 4 Accounting for joint venture 0.0 0.2 5 Hedging 0.4
Slide 10: Group: operating profit split by half year
COMPUTACENTER Group : operating profit split by PLC half year H1 H2 H1 H2 2004 2004 2005 2005 IFRS IFRS IFRS IFRS £m £m £m £m UK 29.3 34.5 14.9 17.2 Germany 2.5 6.5 (1.5) 6.5 France (2.0) (4.7) (7.9) (1.4) BeLux 0.1 (0.1) (0.1) (0.0) Group : continuing operations 29.9 36.2 5.4 22.3 Page 10
Slide 11: UK – revenue and operating profit
COMPUTACENTER UK – revenue and operating PLC profit UK Revenue 900 829 768 756 758 800 716 699 675 700 636 600 500 £m 400 300 200 100 0 Half 1 2002 Half 2 2002 Half 1 2003 Half 2 2003 Half 1 2004 Half 2 2004 Half 1 2005 Half 2 2005 UK Operating Profit 40 34.6 35 31.9 31.4 30.4 29.3 30 25.7 25 £m 20
Slide 12: UK – profit and loss account
COMPUTACENTER UK – profit and loss account PLC 2005 2004 Growth 2005/2004 IFRS IFRS £m £m % Revenues 1,351.3 1,433.7 (5.7%) Gross Profit 169.9 205.7 (17.4%) 12.6% 14.3% Other Operating Expenses (137.8) (141.8) (2.9%) (10.2%) (9.9%) Operating Profit 32.1 63.8 (49.7%) 2.4% 4.5% Headcount *: Direct 3,1
Slide 13: Germany – revenue and operating profit
COMPUTACENTER Germany – revenue and PLC operating profit Germany Revenue 400 344 350 316 319 312 318 300 300 250 £m 200 150 100 50 0 Half 1 2003 Half 2 2003 Half 1 2004 Half 2 2004 Half 1 2005 Half 2 2005 Germany Operating Profit 7 6.5 6.5 6 5.5 5 4 3.2 3 2.5 £m 2 1 UK GAAP 0 Half 1 2003 Half 2 2003
Slide 14: Germany – profit and loss account
COMPUTACENTER Germany – profit and loss PLC account Growth 2005 2004 2005 / 2004 IFRS IFRS £m £m % Revenues 618.2 655.5 (5.7%) Gross Profit 87.7 90.5 (3.1%) 14.2% 13.8% Other Operating Expenses (82.7) (81.5) 1.5% (13.4%) (12.4%) Operating Profit 5.0 9.0 (44.4%) 0.8% 1.4% Headcount *: Direct 2,481 2,
Slide 15: France – revenue and operating profit
COMPUTACENTER France – revenue and operating PLC profit France Revenue 200 177 176 170 180 148 147 153 160 140 140 126 120 £m 100 80 60 40 20 0 Half 1 2002 Half 2 2002 Half 1 2003 Half 2 2003 Half 1 2004 Half 2 2004 Half 1 2005 Half 2 2005 France Operating Profit 4.0 2.2 2.0 0.2 0.0 Half 1 2002 Half
Slide 16: France – profit and loss account
COMPUTACENTER France – profit and loss account PLC 2005 2004 Growth 2005 / 2004 IFRS IFRS £m £m % Revenues 295.8 300.4 (1.5%) Gross Profit 28.9 31.8 (8.9%) 9.8% 10.6% Other Operating Expenses (38.3) (38.5) (0.6%) (12.9%) (12.8%) Operating Profit (9.3) (6.7) 38.9% (3.1%) (2.2%) Headcount *: Direct 56
Slide 17: BeLux – profit and loss account
COMPUTACENTER BeLux – profit and loss account PLC 2005 2004 Growth 2005 / 2004 IFRS IFRS £m £m % Revenues 19.9 21.0 (5.4%) Gross Profit 2.3 2.3 0.5% 11.6% 10.9% Other Operating Expenses (2.4) (2.3) 5.9% (12.1%) (10.8%) Operating Profit (0.1) 0.0 (802.2%) (0.6%) 0.1% Headcount *: Direct 88 89 (0.6%)
Slide 18: Group – revenue by business segment
COMPUTACENTER Group – revenue by business PLC segment Growth 2005 2004 2005 / 2004 IFRS IFRS £m £m % Product 1,758.0 1,895.0 (7.2%) Technology Solutions 114.2 109.8 4.1% Support and Managed services 413.0 405.8 1.8% Services 527.2 515.6 2.3% Total continuing operations 2,285.2 2,410.6 (5.2%) Discont
Slide 19: Group – cash from operations
COMPUTACENTER Group – cash from operations PLC 2005 2004 Growth 2005 / 2004 IFRS IFRS £m £m % Cash flows from operating activities Operating profit 27.7 64.6 (57.2%) Depreciation / amortisation 17.3 18.4 (5.8%) Share based payments (0.4) 0.9 n/a Profit / loss on disposal of fixed assets & investment
Slide 20: Group – summary cash flow
COMPUTACENTER Group – summary cash flow PLC 2005 2004 Growth 2005 / 2004 £m £m % Cash generated from operations 66.0 60.3 9.4% Income taxes paid (18.4) (12.3) 49.4% Net cash flows from operating activities 47.6 48.0 (0.9%) Net cash flows used in investing activities 25.6 (3.2) (898.4%) Net cash flow
Slide 21: Group – balance sheet
COMPUTACENTER Group – balance sheet PLC 2005 2004 Growth 2005 / 2004 £m £m % Property, plant, equipment 81.6 89.9 (9.2%) Intangible assets 9.5 7.9 19.8% Investments 0.3 0.4 (22.7%) Deferred Tax Asset 5.5 1.5 272.0% Non-current assets 96.9 99.7 (2.8%) Inventories 100.2 118.9 (15.7%) Trade and other r
Slide 22: Group – key ratios
COMPUTACENTER Group – key ratios PLC Dec 2005 Jun 2005 Dec 2004 IFRS IFRS IFRS Stock (days) 23 21 26 Debtor (days) 51 54 51 Creditor (days) 39 39 33 Working Capital (days) 36 36 45 Page 22IFRS : Continuing operations
Slide 23: Operational Review
COMPUTACENTER PLC Operational Review Mike Norris
Slide 24: UK
COMPUTACENTER UK PLC Challenging year, particularly with our non Enterprise hardware product business Strategic review required considerable management time Organisational change into discrete business units Cost control remains a priority, headcount fell from 4,754 to 4,589 Page 24
Slide 25: UK – Services Division
COMPUTACENTER UK – Services Division PLC Total revenue £267.2 million Annual contracted base £177.1 million, up 4.6% Page 25
Slide 26: UK Contract Base
£M Page 26 100.0 110.0 120.0 130.0 140.0 150.0 160.0 170.0 180.0 190.0 Dec-02 Feb-03 Apr-03 Jun-03 Aug-03 UK Contract Base Oct-03 Dec-03 Feb-04 Apr-04 Jun-04 Aug-04 Oct-04 Dec-04 3 yr CAGR = 8.3% Feb-05 Apr-05 Jun-05 Aug-05 Oct-05 Dec-05 PLC COMPUTACENTER
Slide 27: UK – Services Division
COMPUTACENTER UK – Services Division PLC Total revenue £267.2 million Annual contracted base £177.1 million, up 4.6% Reduce operational costs through streamlined service delivery model New contracts and renewals Six solutions units; database, storage, communications, Microsoft technologies, security
Slide 28: UK – Product Division
COMPUTACENTER UK – Product Division PLC Product revenue down 7.3% Gross profit down £35.2 million of which £27.0 million is lower vendor rebates Poor PC and Notebook sales, good Enterprise revenue Page 28
Slide 29: Product – change in vendor share of our business
Page 29 -40% -20% 0% 20% 40% 60% 80% 100% L e no v o (1 5 .0% ) T os h ib a (11 .3 % ) F u jits u (9.8 % ) S ie m en s HP (9.4 % ) NEC (1.7 % ) Product – change in vendor M icro s oft 2.6% share of our business Sun 1 2 .2% IB M 4 1.4 % C isc o 4 6.9% EMC 276.8% PLC COMPUTACENTER
Slide 30: UK – Product Division
COMPUTACENTER UK – Product Division PLC Product revenue down 7.3% Gross profit down £35.2 million of which £27.0 million is lower vendor rebates Poor PC and Notebook sales, good Enterprise revenue Light touch sales models to reduce cost Software grew to £134 million, up 4.6% Computacenter Direct up
Slide 31: Germany
COMPUTACENTER Germany PLC Revenue decline of 5.7% to £618.2 million Services revenue up 5.8% to £220.6 million Contracted services base up 19.8% Page 31
Slide 32: Germany Contract Base
£M Page 32 - 20.0 40.0 60.0 80.0 100.0 120.0 Jan-03 Mar-03 May-03 Jul-03 Sep-03 Nov-03 Jan-04 Mar-04 Germany Contract Base May-04 Jul-04 Sep-04 Nov-04 3 yr CAGR = 19.6% Jan-05 Mar-05 May-05 Jul-05 Sep-05 Nov-05 PLC COMPUTACENTER
Slide 33: Germany
COMPUTACENTER Germany PLC Revenue decline of 5.7% to £618.2 million Services revenue up 5.8% to £220.6 million Contracted services base up 19.8% The strong 2nd half was due to: Strong sales in Q3 Improved margin in services Good new business pipeline for MS in H1 2006 Page 33
Slide 34: France
COMPUTACENTER France PLC Partial recovery in H2 due to: Seasonal factors Le Ministère de la Défense resumed Restructure in H1 Lower indirect cost base Improvements in Maintenance Good contract base pipeline Page 34
Slide 35: France Contract Base
£M Page 35 - 2.0 4.0 6.0 8.0 10.0 12.0 14.0 16.0 Dec-02 Feb-03 Apr-03 Jun-03 Aug-03 Oct-03 Dec-03 France Contract Base Feb-04 Apr-04 Jun-04 Aug-04 Oct-04 Dec-04 3 yr CAGR = 20.0% Feb-05 Apr-05 Jun-05 Aug-05 Oct-05 Dec-05 PLC COMPUTACENTER
Slide 36: France
COMPUTACENTER France PLC Partial recovery in H2 due to: Seasonal factors Le Ministère de la Défense resumed Restructure in H1 Lower indirect cost base Improvements in Maintenance Good contract base pipeline Much remains to be done Page 36
Slide 37: Future Prospects
COMPUTACENTER Future Prospects PLC Trading in first two months of 2006 below last year But trading becoming increasingly end-quarter weighted Strategic focus: delivery of attractive eps growth Accelerate services growth and broaden range Re-engineer product business to reduce cost Extend product sal
Slide 38: Computacenter PLC
COMPUTACENTER COMPUTACENTER PLC PLC PRODUCT TECHNOLOGY MANAGED Page 38 SUPPLY INTEGRATION SERVICES