Slide 1: Results 2009
Results 2009 Date: 11th March 2010 Location: Speaker: 1
Slide 2: 2009 Financial highlights
2009 Financial highlights • Group revenues decreased 2.2% to £2.50bn (2008: £2.56bn) • Adjusted profit before tax increased 25.8% to £54.2m (2008: £43.1m) • Adjusted diluted earnings per share increased 31.9% to 27.7p (2008: 21.0p) • Additional interim dividend of 8.0p per share, total dividend 11.0
Slide 3: Four Year Adjusted PBT and EPS
Four Year Adjusted PBT and EPS PBT EPS 60 30 3 Yr CAGR 50 25 PBT = 13% 40 20 EPS = 26% 30 15 20 10 10 5 0 0 2006 2007 2008 2009 Adjusted Profit before tax (£'m) Adjusted Diluted EPS (p per share) © Computacenter 2010 3
Slide 4: Operating highlights
Operating highlights • Group services contract base grew over 9% to £503.6m, b basedd on constant t t currency • Major new contract wins and extensions include Produban, Threadneedle,, BP,, Schroders and Severn Trent • Operational expenses reduced by £30m in constant currency • Successful S f l exit
Slide 5: Financial Review – Tony Conophy
Financial Review – Tony Conophy © Computacenter 2010 5
Slide 6: A glossary
A glossary • Adjusted results – PBT and EPS are adjusted for exceptional items and amortisation on acquired intangibles – Operating profit is stated after charging finance costs on CSF CSF, and excludes the transfer of internal ERP implementation costs between segments • Customer-specific financing
Slide 7: Group – adjusted income statement
Group – adjusted income statement As reported In constant currency Movement Movement FY 2009 FY 2008 FY 2009 FY 2008 09 v 08 09 v 08 £m £m % £m £m % Revenue 2,503.2 2,560.1 (2.2%) 2,503.2 2,701.7 (7.3%) Adj t d gross profit Adjusted fit 345 8 345.8 350 8 350.8 (1 4%) (1.4%) 345 8 345.8 369 7 369.7 (
Slide 8: Group – reconciliation of adjusted to statutory profit after tax
Group – reconciliation of adjusted to statutory profit after tax Movement FY 2009 FY 2008 09 v 08 Adjusted profit before tax 54.2 43.1 25.8% Amortisation of acquired intangibles (0.5) (0.5) -1.5% Exceptional items (5 3) (5.3) (3 0) (3.0) 74 0% 74.0% Statutory profit before tax 48.4 39.5 22.4% Adjust
Slide 9: Group – exceptional items
Group – exceptional items FY 2009 FY 2008 £m £m p Exceptional charges g within operating p g profit: p Profit on disposal of business 1.9 - Restructuring costs -Redundancy (5.3) - -Property (1.9) - Impairment of intangible assets - (1.1) Impairment of trademark - (1.9) ((5.3)) ((3.0)) Exceptional cr
Slide 10: Group – operating expenses
Group – operating expenses Movement FY 2009 FY 2008 09/08 £m £m UK 143.3 165.3 -13.3% Germany 104.8 111.4 -5.9% France 40.2 45.4 -11.6% Benelux 3.6 3.9 -7.5% Group 291.9 326.0 -10.5% Based on a constant 2009 exchange rate of £1= €1.123 © Computacenter 2010 10
Slide 11: Group – operating expenses
Group – operating expenses 350 4 4 300 45 43 4 40 250 108 08 111 200 Benelux £' millions 105 France 150 Germany UK 100 163 165 143 50 0 2007 2008 2009 Based on a constant exchange rate of £1= €1.123 © Computacenter 2010 11
Slide 12: Sources of revenue
Sources of revenue 3,000 2,500 6% 3% 8% 9% 2 000 2,000 CCD 67% 67% Product revenue 1,500 £'milliions 67% 68% Managed services 1,000 Professional services 500 23% 19% 20% 18% 6% 7% 7% 7% 0 2006 2007 2008 2009 Using exchange rates as reported © Computacenter 2010 12
Slide 13: Group – sources of revenue
Group – sources of revenue Reported In constant currency Movement Movement FY 2009 FY 2008 09 v 08 FY 2009 FY 2008 09 v 08 £m £m % £m £m % Product revenue Ongoing 1,678.6 1,717.3 (2.3%) 1,678.6 1,815.5 (7.5%) Trade Distribution 84.6 158.6 (46.7%) 84.6 158.6 (46.7%) Total product revenue 1,763.2 1,87
Slide 14: Segment adjusted operating profit
Segment adjusted operating profit 70 60 50 20 40 3 Benelux 10 14 France ons 30 £' millio Germany UK 20 38 38 33 30 10 0 (2) (2) (3) (7) 2006 2007 2008 2009 (10) © Computacenter 2010 14
Slide 15: UK – income statement
UK – income statement Growth FY 2009 FY 2008 09 v 08 £m £m % Revenue - Ongoing 1,142.2 1,232.4 (7.3%) - CCD 84.7 158.8 (46.7%) - Total 1,226.9 1,391.2 (11.8%) Adjusted gross profit 181.1 194.9 (7.1%) 14.8% 14.0% 0.8% Other operating expenses (143.3) (165.3) (13.3%) (11.7%) (11.9%) 0.2% Adjusted oper
Slide 16: Germany – income statement
Germany – income statement Reported In local currency Growth Growth FY 2009 FY 2008 FY 2009 FY 2008 09 v 08 09 v 08 £m £m % €m €m % Excluding becom 918.6 830.7 10.6% 1,031.5 1,045.9 (1.4%) becom 12 1 12.1 00 0.0 n/a 13 6 13.6 00 0.0 n/a Revenue 930.7 830.7 12.0% 1,045.1 1,045.9 (0.1%) Adjusted gross
Slide 17: France – income statement
France – income statement Reported In local currency Growth Growth FY 2009 FY 2008 FY 2009 FY 2008 09 v 08 09 v 08 £m £m % €m €m Revenue 319.4 308.2 3.6% 358.7 388.0 (7.6%) Gross profit 37.4 38.8 (3.5%) 42.1 48.9 (14.0%) 11.7% 12.6% 11.7% 12.6% Other operating expenses (40.2) (40.5) (0.8%) (45.1) (5
Slide 18: Analysis of net funds
Analysis of net funds Movement Dec 09 Dec 08 09 v 08 £m £m £m Cash and cash equivalents 104.9 46.9 58.0 Own loans (3.7) 0.0 (3.7) g Factor financing ((14.8)) ((42.3)) 27.4 Net funds prior to CSF 86.4 4.6 81.8 Finance leases (42.6) (55.2) 12.6 Other loans (6.5) (34.0) 27.5 Total CSF (49.1) (89.2) 40.
Slide 19: Adjusted cash flow (excluding CSF)
£' million ns 20 40 60 80 100 120 140 160 0 Opening g Net 5 Funds © Computacenter 2010 54 PBT Depn / Am mort / 18 SBP Working 65 Ca apital Net inte erest 1 receivved 18 Tax x paid Adjusted Cash Flow ( excluding CSF) Capital 28 diture Expend 13 Dividends s paid Otherr 1 ( financing act / forex)) Clos
Slide 20: Working capital days
Working capital days 70 60 50 40 Stock turnover days Trade debtor days 30 Trade creditor days 20 Working capital days 10 ‐ 2006 2007 2008 2009 © Computacenter 2010 20
Slide 21: Group – balance sheet
Group – balance sheet Dec 09 Dec 08 Dec 07 £ £m £ £m £ £m PP&E DOWN: reduction of leased Non-current assets Property, plant and equipment 105.3 123.3 116.4 assets (held on customer contracts) Goodwill & Intangibles 73.0 51.6 45.2 Deferred income tax asset 16.4 16.7 8.2 Goodwill UP : Acquisitions 194
Slide 22: Appendix
Appendix © Computacenter 2010 22
Slide 23: Adjusted cash flow
Adjusted cash flow FY 2009 FY 2008 £m £m Adjusted operating profit 53.9 42.1 Adjustments to reconcile Group adjusted operating profit to net cash inflows from operating activities Depreciation and amortisation 17.7 18.1 Share-based payment 2.6 2.5 Working capital movements 65.9 15.3 Other adjustment
Slide 24: Operational Review – Mike Norris
Operational Review – Mike Norris © Computacenter 2010 24
Slide 25: Market Trends
Market Trends • Contractual Services – Customers are intensely focused on reducing operating costs – Multi-sourcing is replacing comprehensive outsourcing – Centralised assets and tools are critical to financial success success, customer satisfaction and competitive advantage – The market has grown
Slide 26: Contract base – Group
Contract base – Group* £M 600 500 400 300 200 100 0 06 06 07 07 07 07 07 07 08 08 08 08 08 08 09 09 09 09 09 09 Sep-0 Nov-0 Jan-0 Mar-0 May-0 Jul-0 Sep-0 Nov-0 Jan-0 Mar-0 May-0 Jul-0 Sep-0 Nov-0 Jan-0 Mar-0 May-0 Jul-0 Sep-0 Nov-0 Belux France Germany Total UK * Stated at constant currency at excha
Slide 27: Investing to maintain the growth
Investing to maintain the growth • Increase service desk capability in: – Milton Keynes – Hatfield – Erfurt – Barcelona – Cape Town – Roissy • Increase in datacentre capacity: – Manchester – fully operational – R f d – new facility Romford f ili opened d in i early l 2010 • Major ERP system on track
Slide 28: Revenue by type – Group excl CCD
Revenue by type – Group excl CCD 2007 2008 2009 25% 23% 28% 29% 29% 31% 6% 6% 6% 26% 26% 13% 23% 14% 14% Personal Systems Personal Systems Personal Systems Datacentre & networking Datacentre & networking Datacentre & networking Software Software Software 3rd Party Services 3rd Party Services 3rd Par
Slide 29: Acquisitions and Disposals
Acquisitions and Disposals • becom beco – Should increase German revenue by circa 10% in 2010 – Focus on IBM datacentre products mainly server and storage – Some S on‐off ff iintegration t ti costs t but b t nett positive iti 2010 • Thesaurus – IBM Z Series ((mainframe)) skills – Builds on our long‐
Slide 30: UK Highlights
UK Highlights • Operating p gpprofit increased 27.8% to £37.8m • Ongoing revenue fell by 7.3% to £1.14bn • Product revenue declined caused by reduced capital expenditure • Small growth of 2% in Q4 which may have been aided by the VAT rate increase • Substantial cost reduction of £22m • Growth in ser
Slide 31: Contract base – UK
£M © Computacenter 2010 - 50 100 150 200 250 Se ep-06 No ov-06 Ja an-07 Mar-07 Ma ay-07 JJul-07 Contract base ‐ UK Se ep-07 No ov-07 Ja an-08 Mar-08 Ma ay-08 UK Contract Base JJul-08 Se ep-08 No ov-08 Ja an-09 Mar-09 Ma ay-09 JJul-09 Se ep-09 No ov-09 31
Slide 32: Revenue by type – UK excl CCD
Revenue by type – UK excl CCD 2007 2008 2009 18% 24% 28% 29% 27% 29% 8% 8% 6% 29% 26% 21% 15% 16% 17% Personal Systems Personal Systems Personal Systems Datacentre & networking Datacentre & networking Datacentre & networking Software Software Software 3rd Party Services 3rd Party Services 3rd Party
Slide 33: New and Renewed Contracts
New and Renewed Contracts • Threadneedle • NHS Oldham • Retail Bank • Schroders • BT Group • Produban (Santander Group) • Financial Services Group • BP © Computacenter 2010 33
Slide 34: German Highlights
German Highlights • Operating profit growth of 21.9% to €22.0m • Revenue decline of 1.4% to €1.03bn, excluding becom • Product revenue declined caused by reduced capital expenditure • 2009 a year off llots off smallll improvements i • Contract base growth of 8.4% • Good progress in networking in bot
Slide 35: Contract base – Germany
€M © Computacenter 2010 0 50 100 150 200 250 300 Sep-06 Dec-06 Mar-07 Jun-07 Sep-07 Dec-07 Mar-08 Contract base ‐ Germany Jun-08 GER Contract Base Sep-08 Dec-08 Mar-09 Jun-09 Sep-09 Dec-09 35
Slide 36: Revenue by type – Germany
Revenue by type ‐ Germany 2007 2008 2009 20% 19% 22% 35% 36% 36% 31% 30% 27% 5% 6% 5% 9% 9% 10% Personal Systems Personal Systems Personal Systems Datacentre & networking Datacentre & networking Datacentre & networking Software Software Software 3rd Party Services 3rd Party Services 3rd Party Servic
Slide 37: France Highlights
France Highlights • Operating performance declined slightly to €3.1m • Revenue fell by 7.6% to €358.7m • Product revenue declined 10.8% but only 1% when excluding our largest customer who renewed their contract with us in the period • Services revenue grew by 10.2% in local currency • Simplifying ma
Slide 38: Contract base – France
€M © Computacenter 2010 0 5 10 15 20 25 30 35 40 45 50 Sep-06 Dec-06 Mar-07 Jun-07 Sep-07 Dec-07 Contract base ‐ France Mar-08 Jun-08 FRA Contract Base Sep-08 Dec-08 Mar-09 Jun-09 Sep-09 Dec-09 38
Slide 39: Revenue by type – France
Revenue by type ‐ France 2007 2008 2009 14% 16% 18% 4% 6% 4% 47% 47% 15% 52% 16% 19% 15% 16% 12% Personal Systems Personal Systems Personal Systems Datacentre & networking Datacentre & networking Datacentre & networking S ft Software S ft Software S ft Software 3rd Party Services 3rd Party Services
Slide 40: 2009 Financial highlights
2009 Financial highlights • Group revenues decreased 2.2% to £2.50bn (2008: £2.56bn) j • Adjusted p profit before tax increased 25.8% to £54.2m ((2008: £43.1m)) • Adjusted diluted earnings per share increased 31.9% to 27.7p (2008: 21.0p) • Additional interim dividend of 8.0p per share, total dividen
Slide 41: Outlook
Outlook • Long‐term g contract base set to ggrow due to market trends and contracts that have already been secured • Some gross profit improvement due to improved business t k on take • Professional services and product supply more difficult to predict but earlyy signs p g are ppositive in the UK bu
Slide 42: Results 2009
Results 2009 Date: 11th March 2010 Location: Speaker: 42