Slide 1: 2022 Full-Year Results
2022 FULL-YEAR RESULTS Full-year results to 31 December 2022 (31 March 2023)
Slide 2: 2022 Financial Highlights
2022 FINANCIAL HIGHLIGHTS Group Group adjusted1 Adjusted1 Cash and cash Proposed final revenue profit before tax diluted EPS equivalents dividend £6.5bn £263.7m 169.7p £264.4m 45.8p • Group revenue increased 28.5 per cent • Adjusted1 diluted earnings per share (EPS) of 169.7 pence (2021: to £6.5 bil
Slide 3: 2022 Financial Highlights
2022 FINANCIAL HIGHLIGHTS 2018 2019 2020 2021 2022 2022 vs 2021 Gross Invoiced Income4 (£m) 4,352.6 5,052.8 5,441.3 6,923.5 9,052.2 30.7% Revenue (restated) (£m) n/a n/a n/a 5,034.5 6,470.5 28.5% Adjusted1 profit before tax (£m) 118.2 146.3 200.5 255.6 263.7 3.2% Adjusted1 diluted EPS (pence) 75.7 9
Slide 4: 2022 Operating Highlights
2022 OPERATING HIGHLIGHTS Achieved carbon neutral status for Scope 1 and 2 Eighteenth consecutive year of adjusted1 earnings emissions in 2022, making us one of the first per share growth companies in our industry to achieve this milestone Customer accounts with gross profit of over £1 million per N
Slide 5: Financial Review
FINANCIAL REVIEW Tony Conophy 31 March 2023 5 l © Computacenter 2023
Slide 6: 2022 Group Adjusted Financial Results
2022 GROUP ADJUSTED1 FINANCIAL RESULTS 2022 2021 Constant Performance headlines Change £m £m currency2 • Revenue up 28.5 per cent and by 25.2 per cent in constant currency2 • Adjusted1 operating profit up 2.4 per cent and by 1.2 per cent in Technology Sourcing 7,481.6 5,472.6 36.7% 32.1% constant cu
Slide 7: 2022 Revenue and Adjusted Operating Profit by Segment
2022 REVENUE AND ADJUSTED1 OPERATING PROFIT BY SEGMENT 2022 2021 2022 2021 Constant Change £m £m £m/€m/$m £m/€m/$m currency2 Revenue (restated) UK 1,269.4 1,425.4 (10.9%) 1,269.4 1,425.4 (10.9%) Germany 1,843.5 1,565.0 17.8% 2,159.3 1,553.7 17.5% France 613.9 555.2 10.6% 718.4 550.7 20.8% North Amer
Slide 8: Group Adjusted Operating Profit Walk (£m)
GROUP ADJUSTED1 OPERATING PROFIT WALK (£M) (CONSTANT CURRENCY2) (57.9) (79.1) 27.0 (58.5) 3.0 171.8 262.8 265.8 269.1 FY 2021 Currency FY 2021 Technology Technology Services Services SG&A FY 2022 EBIT* EBIT* Sourcing Sourcing Volume GP % EBIT* (constant Volume GP % currency2) (Revenue) (Revenue) 1,2
Slide 9: 2022 Closing Adjusted Net Funds/(Debt)
2022 CLOSING ADJUSTED NET FUNDS/(DEBT)3 • Cash and cash equivalents have decreased by £8.8 million since 31 December 2021 to £264.4 million £m at 31 December 2022. • Adjusted net funds3 have increased by £2.9 million since 31 December 100 2021 to £244.3 million at 31 December 2022. 310 • Other borro
Slide 10: 2022 Cash Flow Since December 2021 (£m)
2022 CASH FLOW SINCE DECEMBER 2021 (£M) • Free cash inflow of circa £124 million (2021: £142 million outflow) including lease liabilities (see below). • During the year, net operating cash outflows from working capital, including movement in provisions were £62.0 million 57 (2021: £80.0 million). 24
Slide 11: 2022 Net Revenue Strong
2022 NET REVENUE STRONG • Adjusted1 operating profit decreased (AS ADJUSTED) from 3.8 per cent of gross invoiced income in 2021 to 3.0 per cent in Adjusted1 operating profit margin - Gross v Net 2022, at the same level seen in 14.0% 2019. Adjusted1 operating profit 12.0% margin percentage is always
Slide 12: 2022 Financial Returns Strong
2022 FINANCIAL RETURNS STRONG Return on capital employed* Return on capital 52.2% employed has 46.7% decreased as adjusted1 42.6% 42.9% operating profit increased from £262.8 million in 2021 to 31.1% £269.1 million in 2022 with capital employed 21.5% increasing from £503.4 18.3% 16.8% million as at
Slide 13: 2023 Modelling Considerations
2023 MODELLING CONSIDERATIONS Dividends Capital expenditure Typically, capex is circa £25 - £35 million per annum with approximately 50 per cent run-rate The Board recognises the importance of dividends to shareholders and the Group prides itself on a capex, and 50 per cent discretionary (e.g. inves
Slide 14: 2022 Tax Modelling Considerations
2022 TAX MODELLING CONSIDERATIONS Calculated ETR 2022 one-off items benefiting tax charge The adjusted1 tax charge for the year was £67.3 million (2021: £63.6 million), on an adjusted1 profit During the second half of 2022 a number of one-off tax items were processed that before tax for the year of
Slide 15: Operating Review
OPERATING REVIEW Mike Norris 31 March 2023 15 l © Computacenter 2023
Slide 16: Initiatives and Investments - We Will Continue to Invest
INITIATIVES AND INVESTMENTS - WE WILL CONTINUE TO INVEST SALES & CUSTOMER ENGAGEMENT NORTH AMERICA GROWTH WORLDWIDE REACH New Sales CRM & Quotation Acquisition of BITS Acquisition of systems deployed globally strengthens Computacenter engineering in Mid-West United States operations in APAC Approx.
Slide 17: Why BITS & Computacenter?
WHY BITS & COMPUTACENTER? THIS ISN’T ABOUT CONSOLIDATION / COST SAVINGS What BITS brings to CC: What CC brings to BITS: Large customers Vendor scale and credibility Great team Balance sheet Scales key Mid-West region Best International VAR Straightforward model Largest Services VAR Buffalo Grove Int
Slide 18: Computacenter North America – 2023
COMPUTACENTER NORTH AMERICA – 2023 WITH $3bn+ $200m+ 1,700 40+ SALES OPERATIONS IN UNITED STATES & CANADA SERVICE CENTER IN MEXICO CITY TOTAL GROSS PEOPLE PODIUM CUSTOMERS SERVICES REVENUE INVOICED INCOME • $250m+ revenue Canada Sales & Operations • 100 people • US$120m revenue • One of leading Mid-
Slide 19: Our FTE Headcount Since 2019
OUR FTE HEADCOUNT SINCE 2019 RO/ UK DE FR NA ROE ISCs IND Emerge +282 +211 +570 +995 +15 +337 +189 +1,103 2022 4,459 6,731 2,165 1,611 553 2,559 1,118 =19,389 2019 4,177 6,521 1,595 616 538 2,222 =15,689 19 l © Computacenter 2023
Slide 20: Driving Efficiency
DRIVING EFFICIENCY Group Overall Group Services margins TO IMPROVE OUR SERVICES PRODUCTIVITY decreased by 373 basis points during the period. Our Services margin AND ENHANCE OUR COMPETITIVENESS performance was impacted in 2022 by the unwinding of Covid-19-related UK Germany France benefits during th
Slide 21: At the Heart of Our Business
AT THE HEART OF OUR BUSINESS GROUP Our customers with over £1 million of gross profit TO RETAIN AND MAXIMISE THE RELATIONSHIP are a strategic priority for Group performance. WITH OUR CUSTOMERS OVER THE LONG TERM France North America 169 187 159 44 19 117 127 38 37 15 17 14 10 13 15 2018 2019 2020 20
Slide 22: 2022 United Kingdom
Share of 2022 Revenue Profile 2022 UNITED KINGDOM OPERATIONAL HIGHLIGHTS • The reduction in Technology Sourcing revenues reflected a shift in product mix towards 25% software and resold services, which improved margins but had less impact on reported revenue as they are booked on an agency or net ba
Slide 23: 2022 Germany
Share of 2022 Revenue Profile 2022 GERMANY OPERATIONAL HIGHLIGHTS • After a strong fourth quarter, we are very pleased with the full-year result. We exceeded our revenue growth expectations and despite somewhat weaker margins, the bottom-line result was above plan and the previous year’s. This was a
Slide 24: 2022 France
Share of 2022 Revenue Profile 2022 FRANCE OPERATIONAL HIGHLIGHTS • Our French business made good progress in 2022, mainly thanks to a very strong last quarter in 22% our Technology Sourcing business. Our Integration Center in Gonesse was busy throughout the year and handled record product volumes in
Slide 25: 2022 North America
Share of 2022 Revenue Profile 2022 NORTH AMERICA 5% OPERATIONAL HIGHLIGHTS 1% • Excluding the BITS acquisition, our organic North American revenue growth was 57.3 per cent on a constant currency2 basis. This was due to continued growth of hyperscale customers, as well as new customer wins, with grow
Slide 26: 2022 International
Share of 2022 Revenue Profile 2022 INTERNATIONAL OPERATIONAL HIGHLIGHTS • The Belgian business had a very strong year across all areas. Our investments of the last few 35% years to increase our capabilities in data center and networking solutions have resulted in good growth in these areas. • Our Du
Slide 27: Outlook
OUTLOOK ‘At Computacenter, we are pleased to have shown adjusted1 earnings per share growth in 2022 over the previous year considering the challenging headwind from the unravelling of temporary Covid-related cost base reduction benefits. In 2023, we do not have anywhere near the same challenge as we
Slide 28: Appendix
APPENDIX 28 l © Computacenter 2023
Slide 29: Product Supply Shortages
PRODUCT SUPPLY SHORTAGES Supply chain constraints remain in the forefront of our customers’ minds and their planning. Whilst product availability varies by vendor and product line, product shortages materially affected the supply of key networking equipment for our customers throughout 2021 into 202
Slide 30: IASB Interpretation Committee – Agent vs Principal
IASB INTERPRETATION COMMITTEE – AGENT VS PRINCIPAL Following a recently approved interpretation of the revenue accounting Further information on this change, including the retrospective standard by the International Accounting Standards Board, we, and a restatement of the financial statements, and t
Slide 31: 2022 Technology Sourcing Gross Invoiced Income
2022 TECHNOLOGY SOURCING GROSS INVOICED INCOME4 2022 2021 2022 2021 Change % TECHNOLOGY SOURCING Change % (constant £m £m £m/€m/$m £m/€m/$m currency2) Gross invoiced income UK 1,864.2 1,581.5 17.9% 1,864.2 1,581.5 17.9% Germany 1,704.7 1,427.7 19.4% 1,994.7 1,662.8 20.0% France 606.7 481.4 26.0% 709
Slide 32: 2022 Revenue by Segment
2022 REVENUE BY SEGMENT 2022 2021 2022 2021 Change % REVENUE Change (constant £m £m £m/€m/$m £m/€m/$m currency2) Technology Sourcing UK 809.1 943.2 (14.2%) 809.1 943.2 (14.2%) Germany 1,153.1 942.6 22.3% 1,349.7 1,097.4 23.0% France 435.8 383.2 13.7% 509.5 445.5 14.4% North America 2,357.9 1,226.3 9
Slide 33: 2022 Inventory by Segment
2022 INVENTORY BY SEGMENT Dec-2022 Dec-2021 Dec-2022 Dec-2021 Change % Change (constant £m £m £m/€m/$m £m/€m/$m currency ) 2 Inventory UK 20.1 26.2 (23.3%) 20.1 26.2 (23.3%) Germany 107.5 75.8 41.8% 121.5 90.4 34.4% France 26.4 21.1 25.1% 29.8 25.1 18.6% North America 248.1 212.5 16.8% 299.2 286.4 4
Slide 34: 2022 Reconciliation to Adjusted Results
2022 RECONCILIATION TO ADJUSTED1 RESULTS Principal Exceptional Amortisation element on and other 2022 adjusted 1 2021 adjusted 1 2022 results of acquired Change agency adjusting results results intangibles contracts items £m £m £m £m £m £m % Revenue / GII 6,470.5 2,581.7 - - 9,052.2 6,923.5 30.7% Co
Slide 35: 2022 Exceptional and Other Adjusting Items
2022 EXCEPTIONAL AND OTHER ADJUSTING ITEMS The net loss from exceptional and other adjusting items in the year was £12.2 million (2021: loss of £5.5 million). Excluding the tax items noted below, which resulted in a gain of £2.5 million (2021: gain of £2.1 million), the profit before tax impact was
Slide 36: Central Corporate Costs
CENTRAL CORPORATE COSTS 2022 2021 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) 7.2 9.1 (1.9) Shared-based payments (Group Exec Segment unaligned) 1.7 3.8 (2.1) Strategic corporate initiatives 14.8
Slide 37: Sources of Revenue: Percentage Change by Revenue Type
SOURCES OF REVENUE: PERCENTAGE CHANGE BY REVENUE TYPE Group Group UK UK (4.6%) (4.6%) (4.5%) (4.5%) (4.5%) (4.5%) (10.9%) (10.9%) (14.2%) (14.2%) 36.7% 36.7% 32.0% 32.0% 28.5% 28.5% 25.2% 25.2% 15.2% 15.2% 13.7% 13.7% 8.3% 8.3% 7.7% 7.7% 4.0% 4.0% 4.1% 4.1% Technology Technology Professional Profess
Slide 38: Sources of Revenue: Percentage Change by Revenue Type
SOURCES OF REVENUE: PERCENTAGE CHANGE BY REVENUE TYPE International North America 63.1% 62.2% 92.3% 89.6% 71.6% 69.2% 42.0% 40.3% 58.1% 55.5% 41.1% 44.6% 38.7% 4.5% 19.4% 17.3% 18.2% 15.9% 28.7% 8.2% Technology Professional Managed Total Total Technology Professional Managed Total Total Sourcing rev
Slide 39: UK Adjusted Operating Profit Walk (£m)
UK ADJUSTED1 OPERATING PROFIT WALK (£M) (5.9) (20.0) (19.5) (13.4) 36.4 102.9 80.5 FY 2021 Technology Technology Services Services SG&A FY 2022 EBIT* Sourcing Sourcing Volume GP % EBIT* Volume GP % (Revenue) (Revenue) * EBIT refers to adjusted1 operating profit 39 l © Computacenter 2023
Slide 40: Germany Adjusted Operating Profit Walk (£m)
GERMANY ADJUSTED1 OPERATING PROFIT WALK (£M) CONSTANT CURRENCY2 (28.2) (10.2) (11.5) 19.2 (0.6) 34.4 137.8 137.2 140.9 FY 2021 Currency FY 2021 Technology Technology Services Services SG&A FY 2022 EBIT* EBIT* Sourcing Sourcing Volume GP % EBIT* (constant Volume GP % currency2) (Revenue) (Revenue) *
Slide 41: France Adjusted Operating Profit Walk (£m)
FRANCE ADJUSTED1 OPERATING PROFIT WALK (£M) CONSTANT CURRENCY2 (1.3) (5.8) 0.6 2.0 7.1 0.2 7.9 3.5 3.7 FY 2021 Currency FY 2021 Technology Technology Services Services SG&A FY 2022 EBIT* EBIT* Sourcing Sourcing Volume GP % EBIT* (constant Volume GP % currency2) (Revenue) (Revenue) 41 l © Computacent
Slide 42: North America Adjusted Operating Profit Walk (£m)
NORTH AMERICA ADJUSTED1 OPERATING PROFIT WALK (£M) CONSTANT CURRENCY2 (98.1) (4.1) (19.4) 5.4 135.4 53.0 2.8 31.0 33.8 FY 2021 Currency FY 2021 Technology Technology Services Services SG&A FY 2022 EBIT* EBIT* Sourcing Sourcing Volume GP % EBIT* (constant Volume GP % currency2) (Revenue) (Revenue) 42
Slide 43: International Adjusted Operating Profit Walk (£m)
INTERNATIONAL ADJUSTED1 OPERATING PROFIT (1.2) WALK (£M) CONSTANT CURRENCY2 (2.7) (8.4) 4.6 7.1 0.6 11.3 11.9 11.3 FY 2021 Currency FY 2021 Technology Technology Services Services SG&A FY 2022 EBIT* EBIT* Sourcing Sourcing Volume GP % EBIT* (constant Volume GP % currency2) (Revenue) (Revenue) 43 l ©
Slide 44: Net Funds
NET FUNDS • One of the Group’s primary measures when managing the business is adjusted net funds3. Dec 22 Dec 21 Change • Adjusted net funds3 have increased Adjusted net funds 3 by £2.9 million since 31 December £m £m £m 2021. Cash and Cash Equivalents 264.4 273.2 (8.8) • Operating cashflow inflow f
Slide 45: Group Cash Flow
GROUP CASH FLOW 2022 £m 2021 £m Profit before tax 249.0 248.0 Net finance cost/(income) 7.4 7.2 • Operating net cash inflow of £242.1 million Depreciation and amortisation 40.4 40.1 Depreciation of right-of-use assets 50.5 50.6 during the year (2021: inflow of £224.3 million). Share-based payments 8
Slide 46: Group Balance Sheet
GROUP BALANCE SHEET 2022 £m 2021 £m Change £m Non-current assets Property, plant and equipment 94.1 90.0 4.1 Right-of-use assets 119.4 138.1 (18.7) Goodwill and intangibles 342.1 273.7 68.4 Investment in associates 0.1 0.1 - Deferred income tax assets 11.3 30.2 (18.9) Prepayments 19.4 16.6 2.8 586.4
Slide 47: 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 48: Glossary (continued)
GLOSSARY (CONTINUED) 3. Net funds Adjusted net funds or adjusted net debt includes cash and cash equivalents, other short- or long-term borrowings and current asset investments. Following the adoption of IFRS 16, this measure excludes all lease liabilities. A table reconciling this measure, includin
Slide 49: 2022 Full-Year Results
2022 FULL-YEAR RESULTS Full-year results to 31 December 2022 (31 March 2023)