Slide 1: Preliminary Results 2003
Preliminary Results 2003 16th March, 2004
Slide 2: 2003 Highlights
2003 Highlights z UK Managed Services revenue growth of 10.9% z Integration of CC CompuNet on plan z Computacenter France disappointing, but turn- around programme underway z Pan-European management structure to transfer best practice z Significant product price decline, driven by $ weakness
Slide 3: 2003 Financial Highlights
2003 Financial Highlights 2002 2003 ∆% Turnover £1.93 bn £2.48 bn 28.8 Profit before tax £55.1 m £65.2 m 18.3 Earnings per share 20.4 p 25.0 p 22.5 Net cash £83.4 m £49.9 m
Slide 4: Outlook
Outlook z 2004 focus Further market penetration of services France turn-around Continuing the German integration programme z Early signs of market improvement Volume growth in 2003 Encouraging pipeline: Managed Services and XP roll-outs
Slide 5: Financial Review
Financial Review Tony Conophy
Slide 6: Computacenter PLC - P&L
Computacenter PLC - P&L Existing Acqns 2002 Growth Growth 2003 2003 / 2002 2003 / 2002 TOTAL Incl Acqns Excl Acqns £m £m £m £m % % Revenues 1,797.1 684.1 2,481.2 1,926.7 28.8% -6.7% Gross Profit 226.3 96.2 322.4 232.8 38.5% -2.8% 12.6% 14.1% 13.0% 12.1% SG&A 167.6 88.9 256.5 176.6 45.2% -5.1% 9.3% 1
Slide 7: UK Revenue & Operating Profit
UK Revenue & Operating Profit UK Re ve n u e 1 , 2 0 0 1 ,0 0 1 1 , 0 0 0 829 753 768 756 8 0 0 700 £m 6 0 0 4 0 0 2 0 0 0 H a l f 1 2 0 0 1 H a l f 2 2 0 0 1 H a l f 1 2 0 0 2 H a l f 2 2 0 0 2 H a l f 1 2 0 0 3 H a l f 2 2 0 0 3 U K O p e r a t in g P r o f it 4 0 3 4 .4 3 5 3 1 .9 3 1 .4 3 0 .4 3
Slide 8: Computacenter UK - P&L
Computacenter UK - P&L 2003 2002 Growth 2003/2002 £m £m % Revenues 1,455.3 1,597.3 -8.9% Gross Profit 188.4 196.8 -4.3% 12.9% 12.3% SG&A 126.5 139.2 -9.1% 8.7% 9.0% Operating Profit 61.8 57.6 7.3% 4.2% 3.6% Headcount : Direct 2,987 2,953 1.1% Indirect 1,692 1,675 1.0% (* period end headcount) NB Inc
Slide 9: France Revenue & Operating Profit
France Revenue & Operating Profit France Revenue 200 173 177 175 18 0 16 0 150 140 14 0 117 12 0 £m 10 0 80 60 40 20 0 Half 1 2 0 0 1 Half 2 2 0 0 1 Half 1 2 0 0 2 Half 2 2 0 0 2 Half 1 2 0 0 3 Half 2 2 0 0 3 France Operating Profit 5 .0 4.3 4 .0 3 .0 2.1 2.2 2 .0 £m 1.0 0.2 0 .0 Ha l f 1 2 0 0 1 Ha
Slide 10: Computacenter France - P&L
Computacenter France - P&L 2003 2002 Growth 2003 / 2002 £m £m % Revenues 324.5 316.8 2.4% Gross Profit 36.1 34.9 3.2% 11.1% 11.0% SG&A 43.0 36.3 18.7% 13.3% 11.4% Operating Profit (7.0) (1.3) 422.4% -2.2% -0.4% Goodwill release 4.3 3.7 14.3% Operating Profit (post goodwill) (2.7) 2.4 -214.1% -0.8% 0
Slide 11: Total Acquisitions – P&L
Total Acquisitions – P&L •Total •CC CompuNet •CC Austria •Acquisitions •£m •£m •£m •Revenues •635.1 •49.0 •684.1 •Gross Profit •90.7 •5.5 •96.2 •14.3% •11.2% •14.1% •SG&A •81.9 •7.0 •88.9 •12.9% •14.3% •13.0% •Operating Profit •8.7 •(1.5) •7.2 •1.4% •-3.1% •1.1% •Headcount *: • Direct •2,492 •123 •2
Slide 12: CC CompuNet – Goodwill
CC CompuNet – Goodwill •Adjs / Reval'ns •Fair Value to •Net Assets at Date of Acquisition •Book Value •@ Dec 2003 •Group •£m •£m •£m •Tangible fixed assets •15.5 •(4.0) •11.5 •Investments •0.1 •0.0 •0.1 •Stock •34.4 •(1.1) •33.4 •Debtors •103.9 •5.4 •109.3 •Creditors < 1yr •(132.7) •(3.9) •(136.6) •
Slide 13: Computacenter Belux – P&L
Computacenter Belux – P&L 2003 2002 Growth 2003 / 2002 £m £m % Revenues 17.3 12.6 37.2% Gross Profit 1.8 1.1 75.0% 10.6% 8.3% SG&A 2.2 4.9 -54.6% 12.9% 39.0% Operating Profit (0.4) (3.9) -89.9% -2.3% -30.6% Headcount *: Direct 84 74 12.8% Indirect 17 15 10.0% (* period end headcount)
Slide 14: Computacenter PLC - Operating Cash Flow
Computacenter PLC - Operating Cash Flow 2003 2002 2001 £m £m £m £m Operating Profit 65.9 56.2 55.1 Depreciation/impairment 22.7 21.9 19.9 Amortisation of goodwill (3.7) (3.3) 0.3 Revaluation of Listed Investment (0.3) 0.0 0.0 Loss on Disposal of Fixed Assets 0.9 0.1 0.8 Debtors (17.0) 9.0 43.0 Stock
Slide 15: Computacenter PLC Summary Cash Flow
Computacenter PLC Summary Cash Flow 2003 2002 2001 £m £m £m £m Operating Activities 53.5 60.6 86.6 Servicing of finance (1.0) (0.5) (1.5) Taxation (22.5) (17.5) (17.8) Capex & Financial Investment (14.6) (9.1) (18.7) Acquisitions/disposals (37.3) 7.6 (4.4) Dividends paid (14.4) (5.3) (5.3) (36.2) 35
Slide 16: Computacenter PLC - Balance Sheet
Computacenter PLC - Balance Sheet Dec 2003 Dec 2002 £m £m Fixed Assets 115.8 106.8 Current assets: Stocks 134.1 95.7 Debtors 442.3 286.9 Cash 97.0 92.1 Total Current assets 673.4 474.7 Current liabilities: Trade creditors (207.1) (155.8) Other (259.7) (164.8) Total Current liabilities (466.8) (320.6
Slide 17: Computacenter plc - Key ratios
Computacenter plc - Key ratios Dec 2003 Dec 2002 Stock (days) 28 24 Debtor (days) 44 43 Creditor (days) 37 33 Working Capital (days) 35 34
Slide 18: Operational Review
Operational Review Mike Norris
Slide 19: Positives
Positives z UK Managed Services contract base growth z Major UK Managed Services wins z Steady UK Professional Services utilisation z Good first year financial performance from Germany z Maintained our strong HP relationship z Rigorous cost management
Slide 20: Negatives
Negatives z Substantial product price decline across all geographies z Leading to disappointing top line performance z Poor financial performance in France
Slide 21: Industry Unit Growth
Industry Unit Growth Personal computers 35 30 25 20 Growth (%) 15 10 5 0 -5 -10 -15 2 1 2 3 4 1 2 3 4 1 3 4 1 2 3 4 Q Q Q Q Q Q Q Q Q Q Q Q Q Q Q Q 2000 2001 2002 2003 Source: CONTEXT PC Shipments, Q403
Slide 22: Product Price Decline
Product Price Decline % Change in ASP: 2002 – 2003 in 500+ and Government segments PC Laptop Server UK Germany France -12% -12% -15% -17% -20% -21% -22% -25% -27% Source: Gartner; team analysis
Slide 23: Managed Services Contract Base - UK
Managed Services Contract Base - UK •180 •160 •140 •120 •100 •£m •80 •60 •40 Average length of contract 3.6 years •20 CAGR = 21.3% over 5 years •- •Dec- •Jan- •Feb- •Mar- •Apr- •May- •Jun- •Jul- •Aug- •Sep- •Oct- •Nov- •Dec- •Jan- •Feb- •Mar- •Apr- •May- •Jun- •Jul- •Aug- •Sep- •Oct- •Nov- •Dec- •01
Slide 24: Managed Services Contract Base - Group
Managed Services Contract Base - Group •250 •200 •Rest of Group •150 •£m •100 •UK •50 •- •Dec- •Jan- •Feb- •Mar- •Apr- •May- •Jun- •Jul- •Aug- •Sep- •Oct- •Nov- •Dec- •Jan- •Feb- •Mar- •Apr- •May- •Jun- •Jul- •Aug- •Sep- •Oct- •Nov- •Dec- •01 •02 •02 •02 •02 •02 •02 •02 •02 •02 •02 •02 •02 •03 •03 •
Slide 25: Sample Managed Services Wins/Renewals
Sample Managed Services Wins/Renewals z Abbey (stage II April 04) z HBOS z Marsh z Deutsche Börse z Swift z BASF z EDF
Slide 26: PS Utilisation
•100% •10% •20% •30% •40% •50% •60% •70% •80% •90% •0% •30-Dec •13-Jan •27-Jan •10-Feb •24-Feb •10-Mar •24-Mar •7-Apr PS Utilisation •21-Apr •5-May •19-May •2-Jun •Actual •16-Jun •30-Jun •Target •14-Jul •28-Jul •11-Aug •25-Aug •8-Sep •22-Sep •6-Oct •20-Oct •3-Nov •17-Nov •1-Dec •15-Dec •29-Dec
Slide 27: UK Infrastructure Integration
UK Infrastructure Integration z Stable UK utilisation throughout 2003 z Improving trend in Q4 carried over into 2004 z Microsoft XP is the main driver of high utilisation z Substantial contracts already secured z Pipeline continues to grow
Slide 28: UK Sectors
UK Sectors z Government: Remains positive with different spend patterns z Financial Services: Cost savings remain the key buying criteria, good for Managed Services z Communications: Performed well but still underlying concerns z Commercial: Capital expenditure remains tight
Slide 29: UK Vendor Share
0% (40%) (20%) 20% 40% 60% 80% (27.6%) •Cisco (20.3%) Microsoft (17.4%) IBM UK Vendor Share (7.9%) Toshiba (6.7%) Dell Lotus 4.3% •% Change in Share - 2003 v 2002 NEC 4.5% HP 7.7% Sun 28.0% Fujitsu 71.3% Siemens
Slide 30: CC CompuNet
CC CompuNet z Strong financial performance z Substantial business improvements made since acquisition including: New sales incentive plan introduced 01.01.04 Customer P&L reporting system Established service enablement function New logistics systems and procedures introduced 01.10.03 CC Co
Slide 31: Computacenter France
Computacenter France z Disappointing performance with operating loss of £2.7million z Negative good will write back of £4.0 million, net of France good will write-off z Substantial reductions in cost base made predominantly in H2 of the year at a cost of £3.1million z Will benefit from new pan-Europ
Slide 32: Other Countries
Other Countries z Belux Substantial improvements made in 2003, operating loss reducing by 89.9% to £0.4million Organic sales growth of 37.2% Strong services pedigree z Austria: Integration given lower priority Extremely disappointing year New management installed Q4 03
Slide 33: Prospects
Prospects z UK: Good managed services growth predicted Substantial XP opportunity z Germany: Improvement focus shifts towards sales & marketing Good prospects with enterprise servers and Cisco z France: Cost base has been reduced 04 should be a year of substantial improvement z Belux:
Slide 34: 2003 Highlights
2003 Highlights z UK Managed Services revenue growth of 10.9% z Integration of CC CompuNet on plan z Computacenter France disappointing, but turn- around programme underway z Pan-European management structure to transfer best practice z Significant product price decline, driven by $ weakness
Slide 35: Outlook
Outlook z 2004 focus Further market penetration of services France turn-around Continuing the German integration programme z Early signs of market improvement Volume growth in 2003 Encouraging pipeline: Managed Services and XP roll-outs
Slide 36: Preliminary Results 2003
Preliminary Results 2003 16th March, 2004