Slide 1: 2019 Full-Year Results
2019 FULL-YEAR RESULTS Full-year results to 31 December 2019 (12 March 2020)
Slide 2: 2019 Financial Highlights
2019 FINANCIAL HIGHLIGHTS Group adjusted1 Cash and cash Group revenue Adjusted1 diluted EPS Final dividend of profit before tax equivalents £5.1bn £146.3m 92.5p £217.9m 26.9p • Group revenue increased 16.1 per cent • Proposed final dividend of 26.9 pence (2018: 21.6 pence), to £5.1 billion (2018: £4
Slide 3: 2019 Financial Highlights
2019 FINANCIAL HIGHLIGHTS 2015 2016 2017 2018 2019 2019 vs 2018 Revenue (£m) 3,057.6 3,245.4 3,793.4 4,352.6 5,052.8 16.1% Adjusted1 profit before tax (£m) 87.2 86.4 106.2 118.2 146.3 23.8% Adjusted1 diluted EPS (pence) 53.6 54.0 65.1 75.7 92.5 22.2% Dividend per share (pence) 21.4 22.2 26.1 30.3 37
Slide 4: Operating Highlights
2019 OPERATING HIGHLIGHTS The Group’s total revenues grew 16.1 per cent or £700.2 million during the year, and by 16.9 per cent or £732.2 million during the Group year in constant currency2 including growth of £586.6 million from acquisitions. A 23.8 per cent increase in adjusted1 profit before tax
Slide 5: Financial Review
FINANCIAL REVIEW Tony Conophy 12 March 2020 5 l © Computacenter 2020
Slide 6: Group Adjusted Financial Results
2019 GROUP ADJUSTED1 FINANCIAL RESULTS 2019 2018 Constant Performance headlines Change • Revenue up 16.1 per cent, and by 16.9 per cent in constant currency2 £m £m currency2 • Adjusted1 operating profit up 27.5 per cent and by 28.8 per cent in constant Revenue 5,052.8 4,352.6 16.1% 16.9% currency2 1
Slide 7: Reconciliation to Statutory Results
2019 RECONCILIATION TO STATUTORY RESULTS Exceptional Amortisation Utilisation of 2019 Statutory and other 2019 Adjusted1 2018 Adjusted1 of acquired DE deferred Change results adjusting results results intangibles tax asset items £m £m £m £m £m £m % Revenue 5,052.8 - - - 5,052.8 4,352.6 16.1% Cost of
Slide 8: Exceptional and Other Adjusting Items
2019 EXCEPTIONAL AND OTHER ADJUSTING ITEMS The profit before tax impact from exceptional and other adjusting items was a net loss of £5.3 million (2018: loss of £10.1 million). Tax items resulted in a gain of £1.3 million (2018: gain of £3.7 million). The net loss from exceptional and other adjustin
Slide 9: Revenue by Segment
2019 REVENUE BY SEGMENT Technology Sourcing revenue 2019 2018 2019 2018 Constant As noted in our 2018 Interim Report and Accounts, Change 2 the prior year revenue performance was flattered by £m £m £m/€m/$m £m/€m/$m currency Technology Sourcing revenue two one-off software licence sales in the UK to
Slide 10: Revenue and Adjusted Operating Profit by Segment
2019 REVENUE AND ADJUSTED1 New Segmental Reporting is in place for 2019 reporting. Refer to slide 36 for further details, and slide 11 for an analysis OPERATING PROFIT BY SEGMENT of Central Corporate Costs. UK performance saw a pleasing increase in adjusted1 operating profit as increasing margins ac
Slide 11: Central Corporate Costs
CENTRAL CORPORATE COSTS 2019 2018 Change Analysis of Central Corporate Costs £m £m £m Cost of the plc Board, related public company costs and Group Exec cost base (Segment unaligned) 7.0 7.5 (0.5) Shared-based payments (Group Exec Segment unaligned) 3.0 2.7 0.3 Strategic corporate initiatives 17.1 1
Slide 12: Group Adjusted Operating Profit Walk (£m)
2019 GROUP ADJUSTED1 OPERATING PROFIT WALK (£M) (CONSTANT CURRENCY2) 30.4 12.2 10.3 84.7 (1.2) 65.7 151.5 118.8 117.6 2018 Currency 2018 Technology Technology Services Services SG&A 2019 EBIT* EBIT* Sourcing Sourcing Volume GP % EBIT* (constant Volume GP % currency2) 1,2 Refer to the glossary for de
Slide 13: Closing Adjusted Net Funds
2019 CLOSING ADJUSTED NET FUNDS3 • Cash and cash equivalents have increased by £17.4 million since 31 £m December 2018 to £217.9 million at 31 December 2019 but were impacted by an unplanned, additional, debt 100 repayment of £30.0 million towards the FusionStorm facility in the second 30 half of th
Slide 14: Cash Flow Since December 2018 (£m)
2019 CASH FLOW SINCE DECEMBER 2018 (£M) • Free cash inflow of circa £156 million including lease liabilities (see below). • Acquisitions include PathWorks GmbH (£2.9 million cash outflow on acquisition) and RDC (£9.0 million cash inflow on acquisition). 11 • $10 million contingent liability paid to
Slide 15: Net Revenue Strong
2019 NET REVENUE STRONG (AS ADJUSTED) • Adjusted1 operating profit increased from 2.7 per cent of revenue to 3.0 Adjusted1 operating profit margin - Gross v Net per cent. Adjusted1 operating profit 10.0% margin percentage is always diluted 9.0% by Technology Sourcing revenues, 8.0% which are typical
Slide 16: Financial Returns Strong
2019 FINANCIAL RETURNS STRONG Return on capital employed* 42.6% 37.1% Return on capital 36.0% employed has increased 30.8% 31.1% from the level seen in 2018 as adjusted1 operating profit increased from £118.8 million to 13.4% 14.6% £151.5 million but capital 11.0% 12.0% employed reduced from 9.0% £3
Slide 17: 2020 Modelling Considerations
2020 MODELLING CONSIDERATIONS Tax Adjusted1 net interest Dependent on mix of earnings as we utilise losses in European operations. As the adjusted net funds3 are reduced due to the residual £56 million term loan to purchase FusionStorm and the c£25 million loan remaining against the Kerpen Headquart
Slide 18: Operating Review
OPERATING REVIEW Mike Norris 12 March 2020 18 l © Computacenter 2020
Slide 19: Top Line Growth Drivers
TOP LINE GROWTH DRIVERS 19 l © Computacenter 2020
Slide 20: Leading the Growth: Services Contract Base
LEADING THE GROWTH UK decline stems primarily from renegotiations of renewals and extensions. TO LEAD WITH AND GROW OUR SERVICES BUSINESS Germany showing a small growth with three major wins offsetting other losses. France has shown good growth with 800 several wins but will be impacted in 2020 with
Slide 21: Driving Efficiency
DRIVING EFFICIENCY TO IMPROVE OUR SERVICES PRODUCTIVITY Group AND ENHANCE OUR COMPETITIVENESS Managed Services margins have UK Germany France improved as the ‘difficult’ contracts are The Managed Services decline was driven by Professional Services we saw a very strong The new Managed Services contr
Slide 22: At the Heart of Our Business
AT THE HEART OF OUR BUSINESS TO RETAIN AND MAXIMISE THE RELATIONSHIP WITH OUR CUSTOMERS OVER THE LONG TERM GROUP 135 104 107 118 Our customers with over £1 million of contribution are a Strategic Priority for Group 94 performance. The USA and International Segments add 13 and six customers, respecti
Slide 23: 2019 United Kingdom
Share of 2019 Revenue Profile 2019 UNITED KINGDOM FINANCIAL HIGHLIGHTS 20% • Revenue down by 1.8% • Adjusted1 operating profit up by 10.6% • Technology Sourcing revenue down by 1.3% 8% 72% • Services revenue down by 3.2% OPERATIONAL HIGHLIGHTS • Technology Sourcing was up by 4.5% excluding the impac
Slide 24: 2019 Germany
Share of 2019 Revenue Profile 2019 GERMANY FINANCIAL HIGHLIGHTS • Revenue growth of 5.2% 19% • Adjusted1 operating profit up by 27.9% • Technology Sourcing revenue up by 4.2% 11% • Services revenue growth of 7.7% 70% OPERATIONAL HIGHLIGHTS • The German Technology Sourcing business has coped Technolo
Slide 25: 2019 France
Share of 2019 Revenue Profile 2019 FRANCE FINANCIAL HIGHLIGHTS • Revenue up by 15.7% 15% • Adjusted1 operating profit up €6.1 million to €14.1 million 4% • Technology Sourcing revenue up by 17.8% • Services revenue up by 7.3% 81% OPERATIONAL HIGHLIGHTS • The French business continues its momentum fr
Slide 26: 2019 USA
Share of 2019 Revenue Profile 2019 USA 3% FINANCIAL HIGHLIGHTS 2% • Revenue of $986.6 million in the year with the FusionStorm business acquired in 2018 contributing $951.3 million • Adjusted1 operating profit of $11.6 million in the year (2018: $5.6 million) with $10.8 million coming from the acqui
Slide 27: 2019 International
Share of 2019 Revenue Profile 2019 INTERNATIONAL FINANCIAL HIGHLIGHTS 33% • Revenue up by £89.2 million to £191.4 million including the contribution from acquisitions of £104.6 million (2018: £24.9 million) • Adjusted1 operating profit up by £0.7 million to 65% £8.2 million including the contributio
Slide 28: Outlook
OUTLOOK As we stated back in January, the results for 2019 set a high are some concerns going forward. We do however have some bar for the business in 2020. It is too early to predict the concerns that in the medium-term, customers may postpone outcome for the year as a whole and there is still much
Slide 29: Appendix
APPENDIX 29 l © Computacenter 2020
Slide 30: Glossary
GLOSSARY 1. Adjusted measures 2. Constant currency The Group uses a number of non-Generally Accepted Accounting Practice (non- We evaluate the long-term performance and trends within our Strategic Priorities GAAP) financial measures in addition to those reported in accordance with IFRS. on a constan
Slide 31: Glossary (continued)
GLOSSARY (CONTINUED) 3. Net funds Adjusted net funds or adjusted net debt includes cash and cash equivalents, other short or other long-term borrowings and current asset investments. Following the adoption of IFRS 16 this measure excludes all lease liabilities. CSF balances which were previously inc
Slide 32: Exceptional and Other Adjusting Items (1/2)
2019 EXCEPTIONAL AND OTHER ADJUSTING ITEMS (1/2) The profit before tax impact from exceptional and other adjusting items was a net loss of £5.3 million (2018: loss of £10.1 million). Tax items resulted in a gain of £1.3 million (2018: gain of £3.7 million). The net loss from exceptional and other ad
Slide 33: Exceptional and Other Adjusting Items (2/2)
2019 EXCEPTIONAL AND OTHER ADJUSTING ITEMS (2/2) The profit before tax impact from exceptional and other adjusting items was a net loss of £5.3 million (2018: loss of £10.1 million). Tax items resulted in a gain of £1.3 million (2018: gain of £3.7 million). The net loss from exceptional and other ad
Slide 34: IFRS 16 Leases Further Detail (1/2)
2019 IFRS 16 LEASES FURTHER DETAIL (1/2) Background The accounting policies adopted for the year are consistent with those of the IFRS 16 therefore results in an increase to operating profit, which is reported prior previous financial year as disclosed in the 2018 Annual Report and Accounts except t
Slide 35: IFRS 16 Leases Further Detail (2/2)
2019 IFRS 16 LEASES FURTHER DETAIL (2/2) Impact of Adoption The adoption of IFRS 16 has had a significant impact on the presentation of the Group’s assets and liabilities. The right-of-use assets are included within property, plant and equipment and corresponding lease liabilities are included withi
Slide 36: Change in Segmental Reporting
CHANGE IN SEGMENTAL REPORTING Due to the acquisitions made in 2018, Management reviewed the way it reported Poland, Malaysia, India and China. During the year, Computacenter Switzerland Segmental performance to the Board and the Chief Executive Officer, who is the acquired PathWorks, a value-added r
Slide 37: Sources of Revenue: Percentage Change by Revenue Type
SOURCES OF REVENUE: PERCENTAGE CHANGE BY REVENUE TYPE Group UK (0.9%) (1.3%) (1.8%) (3.2%) (4.0%) 20.3% 21.3% 16.1% 16.9% 13.7% 14.5% 1.3% 1.7% 5.2% 4.7% Technology Professional Managed Services Total Services Total Technology Professional Managed Services Total Services Total Sourcing Services Sour
Slide 38: UK Adjusted Income Statement
UK ADJUSTED1 INCOME STATEMENT 2019 2018 Change £m £m % Revenue 1,581.6 1,611.3 (1.8%) 1 Adjusted gross profit 221.2 205.7 7.5% 14.0% 12.8% 1.2% Administrative expenses (156.7) (147.4) 6.3% (9.9%) (9.1%) (0.8%) Adjusted1 operating profit 64.5 58.3 10.6% 4.1% 3.6% 0.5% 1 Refer to the glossary for defi
Slide 39: UK Adjusted Operating Profit Walk (£m)
UK ADJUSTED1 OPERATING PROFIT WALK (£M) 9.3 3.3 1.3 12.1 8.0 64.5 58.3 2018 Technology Technology Services Services SG&A 2019 EBIT* Sourcing Sourcing Volume GP % EBIT* Volume GP % * EBIT refers to adjusted1 operating profit 39 l © Computacenter 2020
Slide 40: Germany Adjusted Income Statement
GERMANY ADJUSTED1 INCOME STATEMENT 2019 2018 2019 2018 Constant Change £m £m €m €m currency2 Revenue 1,943.7 1,872.7 3.8% 2,226.6 2,115.7 5.2% Adjusted1 gross profit 260.7 231.2 12.8% 298.7 261.4 14.3% 13.4% 12.3% 1.1% 13.4% 12.4% 1.0% Administrative expenses (176.2) (164.4) 7.2% (202.0) (185.8) 8.7
Slide 41: Germany Adjusted Operating Profit Walk (£m)
GERMANY ADJUSTED1 OPERATING PROFIT WALK (£M) CONSTANT CURRENCY2 13.7 17.8 1.2 6.9 2.0 5.9 84.5 66.8 65.6 2018 Currency 2018 Technology Technology Services Services SG&A 2019 EBIT* EBIT* Sourcing Sourcing Volume GP % EBIT* (constant Volume GP % currency2) 1,2 Refer to the glossary for definitions. *
Slide 42: France Adjusted Income Statement
FRANCE ADJUSTED1 INCOME STATEMENT 2019 2018 2019 2018 Constant Change £m £m €m €m currency2 Revenue 562.9 493.3 14.1% 644.7 557.4 15.7% Adjusted1 gross profit 68.2 55.7 22.4% 78.2 62.9 24.3% 12.1% 11.3% 0.8% 12.1% 11.3% 0.8% Administrative expenses (55.9) (48.6) 15.0% (64.1) (54.9) 16.8% (9.9%) (9.9
Slide 43: France Adjusted Operating Profit Walk (£m)
FRANCE ADJUSTED1 OPERATING PROFIT WALK (£M) CONSTANT CURRENCY2 8.0 1.0 0.9 3.9 7.4 12.3 0.0 7.1 7.1 2018 Currency 2018 Technology Technology Services Services SG&A 2019 EBIT* EBIT* Sourcing Sourcing Volume GP % EBIT* (constant Volume GP % currency2) 43 l © Computacenter 2020 * EBIT refers to adjuste
Slide 44: Net Funds
NET FUNDS • One of the Group’s primary measures when managing the business is adjusted net funds.3. • Adjusted net funds3 have increased Dec 19 Dec 18 Change Adjusted net funds3 £70.9 million since 31 December £m £m £m 2018. Cash and Cash Equivalents 217.9 200.4 17.4 • Operating cashflow for 2019 wa
Slide 45: Group Cash Flow
2019 2018 GROUP CASH FLOW £m 141.0 £m 108.1 Net finance cost/(income) 6.1 1.2 Depreciation and amortisation 33.0 34.8 • Operating net cash inflow of £202.0 million Depreciation of right of use assets 40.3 - Share-based payments 6.8 6.4 (2018: inflow of £115.2 million). Loss/(profit) on disposal of n
Slide 46: Group Balance Sheet
2019 2018 Change GROUP BALANCE SHEET Non-current assets £m £m £m Property, plant and equipment 212.3 106.3 106.1 Prepayments 3.5 3.5 (0.0) Goodwill & Intangibles 175.7 184.6 (8.9) • On initial application of IFRS 16 ‘Leases’, Investments in associates 0.1 0.1 (0.0) the Group has elected to record ri
Slide 47: 2019 Full-Year Results
2019 FULL-YEAR RESULTS Full-year results to 31 December 2019 (12 March 2020)