Slide 1: 2021 Interim Results
2021 INTERIM RESULTS Half-year results to 30 June 2021 (09 September 2021)
Slide 2: H1 2021 Financial Highlights
H1 2021 FINANCIAL HIGHLIGHTS Group Group adjusted1 Adjusted1 Cash and cash Interim revenue profit before tax diluted EPS equivalents dividend of £3.2bn £118.9m 73.1p £158.6m 16.9p • Group revenue increased 29.2 per cent • Interim dividend of 16.9 pence (H1 2020: 12.3 pence), to £3.2 billion (H1 2020
Slide 3: H1 2021 Financial Highlights
H1 2021 FINANCIAL HIGHLIGHTS H1 2017 H1 2018 H1 2019 H1 2020 H1 2021 H1 2021 vs H1 2020 Revenue (£m) 1,700.3 2,008.9 2,427.0 2,462.2 3,180.0 29.2% Adjusted1 profit before tax (£m) 41.9 52.1 53.5 74.6 118.9 59.4% Adjusted1 diluted EPS (pence) 25.6 32.7 34.5 46.7 73.1 56.5% Dividend per share (pence)
Slide 4: H1 2021 Operating Highlights
H1 2021 OPERATING HIGHLIGHTS The Group’s total revenues grew 29.2 per cent during the first half of the year, by 31.4 per cent in constant currency2, and by 9.0 per cent in constant currency2 organically, without the impact of acquisitions made since 1 January 2020. Significant increases in expendit
Slide 5: Financial Review
FINANCIAL REVIEW Tony Conophy 9 September 2021 5 l © Computacenter 2021
Slide 6: H1 2021 Group Adjusted Financial Results
H1 2021 GROUP ADJUSTED1 FINANCIAL RESULTS Performance headlines H1 2021 H1 2020 Constant • Revenue up 29.2 per cent and by 31.4 per cent in constant currency2 Change 2 £m £m currency • Adjusted1 operating profit up 58.5 per cent and by 60.3 per cent in constant currency2 Revenue 3,180.0 2,462.2 29.2
Slide 7: H1 2021 Revenue by Segment
H1 2021 REVENUE BY SEGMENT Technology Sourcing revenue The UK, in particular, has seen very strong demand within public sector during Q1 that has been supported by a return of private sector customers, particularly H1 2021 H1 2020 H1 2021 H1 2020 Constant industrials, in the second quarter of the ye
Slide 8: H1 2021 Revenue and Adjusted Operating Profit by Segment
H1 2021 REVENUE AND ADJUSTED1 UK performance saw an increase in revenues of 9.4 per cent as Technology Sourcing revenues saw further strong growth to cope OPERATING PROFIT BY SEGMENT with the residual demand generated by the COVID-19 crisis and Professional Services revenues saw very encouraging gro
Slide 9: Central Corporate Costs
CENTRAL CORPORATE COSTS H1 2021 H1 2020 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) 4.1 3.3 0.8 Shared-based payments (Group Exec Segment unaligned) 1.4 1.3 0.1 Strategic corporate initiatives 5.
Slide 10: H1 2021 Group Adjusted Operating Profit Walk (£m)
H1 2021 GROUP ADJUSTED1 OPERATING PROFIT WALK (£M) (CONSTANT CURRENCY2) (65.5) 13.5 25.4 7.4 (0.9) 65.3 122.5 77.3 76.4 H1 2020 Currency H1 2020 Technology Technology Services Services SG&A H1 2021 EBIT* EBIT* Sourcing Sourcing Volume GP % EBIT* (constant Volume GP % currency2) 1,2 Refer to the glos
Slide 11: H1 2021 Closing Adjusted Net Funds/(Debt)
H1 2021 CLOSING ADJUSTED NET FUNDS/ (DEBT)3 • Cash and cash equivalents have decreased by £63.5 million since 30 June 2020 and by £151.3 million since 31 December 2020 to £158.6 £m million at 30 June 2021. • Adjusted net funds3 have decreased by £27.2 million since 30 June 2020 and by £66.8 million
Slide 12: H1 2021 Cash Flow Since December 2020 (£m)
H1 2021 CASH FLOW SINCE DECEMBER 2020 (£M) • Free cash outflow of circa £45 million (H1 2020: £8 million inflow) including lease liabilities (see below). • During the period, net operating cash outflows from working capital, including movement in provisions were £146.5 million (H1 2020: 29 £51.7 mil
Slide 13: H1 2021 Net Revenue Strong
H1 2021 NET REVENUE STRONG (AS ADJUSTED) • Adjusted1 operating profit increased from 3.1 per cent of revenue in H1 Adjusted1 operating profit margin - Gross v Net 2020 to 3.9 per cent in H1 2021. 14.0% Adjusted1 operating profit margin 12.0% percentage is always diluted by Technology Sourcing revenu
Slide 14: H1 2021 Financial Returns Strong
H1 2021 FINANCIAL RETURNS STRONG Return on capital employed* 46.7% Return on capital 42.6% employed has increased as adjusted1 36.0% operating profit 31.1% increased from £77.3 million in H1 2020 to 21.5% £122.5 million in H1 18.3% 2021 with capital 13.4% 14.6% employed increasing 12.0% from £422.7
Slide 15: 2021 Modelling Considerations
2021 MODELLING CONSIDERATIONS Dividends Adjusted1 net interest The Board recognises the importance of dividends to shareholders and the Group prides itself on a As the adjusted net funds3 continue to increase then the adjusted1 finance revenue will continue to grow. long track record of paying divid
Slide 16: Operating Review
OPERATING REVIEW Mike Norris 9 September 2021 16 l © Computacenter 2021
Slide 17: Top Line Growth Drivers
TOP LINE GROWTH DRIVERS 17 l © Computacenter 2021
Slide 18: Public Sector Revenue Mix
PUBLIC SECTOR REVENUE MIX 939 926 910 859 844 Public sector revenue 60% has reduced to 30.6% 68% 65% 66% 85% 378 of total revenues in H1 2% 304 313 2021 (£972 million) 2% from 31.1 per cent in 14% 38% 15% 48% 55% 100% H1 2020 (£765 33% 3% 2% 9% 77 91 million). 18% 19% 49% 44% 77% 72% 28% 23% HY 20 H
Slide 19: Leading the Growth: Services Contract Base
LEADING THE GROWTH The French and North American results include the contract base of acquisitions TO LEAD WITH AND GROW OUR SERVICES BUSINESS made on 2 November 2020 which contribute €52 million and $11 million, respectively. 800 Excluding the impact of acquisition, France is down 21.5% since June
Slide 20: Driving Efficiency
DRIVING EFFICIENCY Group Overall Services margins increased by TO IMPROVE OUR SERVICES PRODUCTIVITY 193 basis points in the period as Professional Services, with its higher AND ENHANCE OUR COMPETITIVENESS profitability grew faster than Managed Services coupled with a continued UK Germany France redu
Slide 21: At the Heart of Our Business
AT THE HEART OF OUR BUSINESS GROUP Our customers with over £1 million of contribution TO RETAIN AND MAXIMISE THE RELATIONSHIP are a Strategic Priority for Group performance. WITH OUR CUSTOMERS OVER THE LONG TERM France North America 159 167 119 135 18 107 37 38 16 15 11 8 13 13 2017 2018 2019 2020 H
Slide 22: H1 2021 United Kingdom
Share of H1 2021 Revenue Profile H1 2021 UNITED KINGDOM FINANCIAL HIGHLIGHTS 17% • Revenue up by 9.4% • Adjusted1 operating profit up by 12.6% 8% • Technology Sourcing revenue up by 10.0% 75% • Services revenue up by 7.7% OPERATIONAL HIGHLIGHTS • Technology Sourcing saw strong revenue growth support
Slide 23: H1 2021 Germany
Share of H1 2021 Revenue Profile H1 2021 GERMANY FINANCIAL HIGHLIGHTS • Revenue increased by 10.5% 19% • Adjusted1 operating profit up by 74.6% • Technology Sourcing revenue up by 8.2% 15% • Services revenue growth of 15.1% 66% OPERATIONAL HIGHLIGHTS • Technology Sourcing growth was mainly recorded
Slide 24: H1 2021 France
Share of H1 2021 Revenue Profile H1 2021 FRANCE FINANCIAL HIGHLIGHTS 21% • Revenue up by 4.0%, down by 8.5% organically • Adjusted1 operating profit loss of €2.3 million (H1 2020: profit of €4.3 million) 7% • Technology Sourcing revenue down by 2.8%, down by 5.6% 72% organically • Services revenue u
Slide 25: H1 2021 North America
Share of H1 2021 Revenue Profile H1 2021 NORTH AMERICA 3% FINANCIAL HIGHLIGHTS 1% • Revenue increased by 164.7% (by 18.1% organically) • Adjusted1 operating profit increased by 331.7% to $25.9 million (by 120.0% organically) • Technology Sourcing revenue up by 158.5% (by 18.2% 96% organically) • Ser
Slide 26: H1 2021 International
Share of H1 2021 Revenue Profile H1 2021 INTERNATIONAL FINANCIAL HIGHLIGHTS 37% • Revenue up by 17.6% • Adjusted1 operating profit of £4.1 million (H1 2020: £0.2 million • Technology Sourcing revenue up by 14.8% 59% • Services revenue up by 21.9% 4% OPERATIONAL HIGHLIGHTS Technology Sourcing • The B
Slide 27: Outlook
OUTLOOK ‘Computacenter is 40 years old next month and our ability to adapt to an ever-changing market has been paramount to our continued success. This ability has been particularly prevalent over the last 18 months during the pandemic. The vast majority of our customers have returned to business as
Slide 28: Appendix
APPENDIX 28 l © Computacenter 2021
Slide 29: Product Supply Shortages
PRODUCT SUPPLY SHORTAGES Product shortages have materially impacted supply of key unfulfilled orders. However whilst supply has been restricted, technologies for our customers. In some instances, these demand has continued to rise substantially with our product shortages have resulted in orders bein
Slide 30: COVID-19 Update
COVID-19 UPDATE The Group has seen increasing levels of business returning from key industrial customers, some of which were largely suppressed during 2020. This is coupled with ongoing public sector spend and has created significant organic revenue growth for the Group. Similar to the situation in
Slide 31: H1 2021 Reconciliation to Adjusted Results
H1 2021 RECONCILIATION TO ADJUSTED1 RESULTS Amortisation H1 2021 H1 2020 H1 2021 of acquired Adjusted1 Adjusted1 Change results intangibles results results £m £m £m £m % Revenue 3,180.0 - 3,180.0 2,462.2 29.2% Cost of sales (2,754.7) - (2,754.7) (2,144.4) (28.5%) Gross profit 425.3 - 425.3 317.8 33.
Slide 32: H1 2021 Exceptional and Other Adjusting Items
H1 2021 EXCEPTIONAL AND OTHER ADJUSTING ITEMS The net loss from other adjusting items in the year was £2.8 million (H1 2020: loss of £1.6 million). Excluding the tax items noted below, which resulted in a gain of £0.9 million (H1 2020: gain of £0.6 million), the profit before tax impact was a net lo
Slide 33: 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 34: 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. A table reconciling this measure, incl
Slide 35: Sources of Revenue: Percentage Change by Revenue Type
SOURCES OF REVENUE: PERCENTAGE CHANGE BY REVENUE TYPE Group UK 36.6% 38.3% 39.4% 32.4% 35.2% 29.2% 31.4% 7.7% 18.8% 19.8% 10.0% 9.4% 9.5% 10.5% (2.2%) Technology Professional Managed Services Total Services Total Technology Professional Managed Services Total Services Total Sourcing Services Sourcin
Slide 36: Sources of Revenue: Percentage Change by Revenue Type
SOURCES OF REVENUE: PERCENTAGE CHANGE BY REVENUE TYPE International North America 542.4% 486.5% 460.8% 21.2% 22.4% 24.3% 21.9% 23.9% 409.1% 17.6% 17.6% 19.0% 14.8% 15.8% 248.0% 287.1% 135.1% 158.5% 140.6% 164.7% Technology Professional Managed Total Total Technology Professional Managed Total Total
Slide 37: UK Adjusted Income Statement
UK ADJUSTED1 INCOME STATEMENT H1 2021 H1 2020 Change £m £m % Revenue 939.5 858.8 9.4% 1 Adjusted gross profit 133.1 122.6 8.6% 14.2% 14.3% (0.1%) Administrative expenses (81.4) (76.7) 6.1% (8.7%) (8.9%) 0.2% 1 Adjusted operating profit 51.7 45.9 12.6% 5.5% 5.3% 0.2% 1 Refer to the glossary for defin
Slide 38: UK Adjusted Operating Profit Walk (£m)
UK ADJUSTED1 OPERATING PROFIT WALK (£M) 4.7 1.9 1.4 4.4 6.6 51.7 45.9 H1 2020 Technology Technology Services Services SG&A H1 2021 EBIT* Sourcing Sourcing Volume GP % EBIT* Volume GP % * EBIT refers to adjusted1 operating profit 38 l © Computacenter 2021
Slide 39: Germany Adjusted Income Statement
GERMANY ADJUSTED1 INCOME STATEMENT H1 2021 H1 2020 H1 2021 H1 2020 Constant Change 2 £m £m €m €m currency Revenue 926.5 843.7 9.8% 1,067.4 966.4 10.5% 1 Adjusted gross profit 147.5 118.5 24.5% 170.1 135.3 25.7% 15.9% 14.0% 1.9% 15.9% 14.0% 1.9% Administrative expenses (86.4) (82.9) 4.2% (99.4) (94.8
Slide 40: Germany Adjusted Operating Profit Walk (£m)
GERMANY ADJUSTED1 OPERATING PROFIT WALK (£M) CONSTANT CURRENCY2 4.0 14.2 0.5 8.3 2.6 4.9 61.1 35.6 35.1 H1 2020 Currency H1 2020 Technology Technology Services Services SG&A H1 2021 EBIT* EBIT* Sourcing Sourcing Volume GP % EBIT* (constant Volume GP % currency2) * EBIT refers to adjusted1 operating
Slide 41: France Adjusted Income Statement
FRANCE ADJUSTED1 INCOME STATEMENT H1 2021 H1 2020 H1 2021 H1 2020 Constant Change 2 £m £m €m €m currency Revenue 313.1 304.3 2.9% 360.4 346.5 4.0% 1 Adjusted gross profit 32.8 31.1 5.5% 37.8 35.4 6.8% 10.5% 10.2% 0.3% 10.5% 10.2% 0.3% Administrative expenses (34.8) (27.3) 27.5% (40.1) (31.1) 28.9% (
Slide 42: France Adjusted Operating Profit Walk (£m)
FRANCE ADJUSTED1 OPERATING PROFIT WALK (£M) CONSTANT CURRENCY2 7.8 0.1 0.7 0.8 1.9 3.8 3.7 1.7 H1 2021 EBIT* H1 2020 Currency H1 2020 Technology Technology Services Services -2.0 EBIT* EBIT* Sourcing Sourcing Volume GP % (constant Volume GP % currency2) SG&A 42 l © Computacenter 2021 * EBIT refers t
Slide 43: North America Adjusted Income Statement
NORTH AMERICA ADJUSTED1 INCOME STATEMENT H1 2021 H1 2020 H1 2021 H1 2020 Constant Change 2 £m £m $m $m currency Revenue 910.1 378.2 140.6% 1,263.5 477.4 164.7% 1 Adjusted gross profit 94.3 30.9 205.2% 130.9 39.1 234.8% 10.4% 8.2% 2.2% 10.4% 8.2% 2.2% Administrative expenses (75.6) (26.2) 188.5% (105
Slide 44: North America Adjusted Operating Profit Walk (£m)
NORTH AMERICA ADJUSTED1 OPERATING PROFIT WALK (£M) CONSTANT CURRENCY2 1.7 51.7 6.4 18.1 0.3 18.7 4.7 4.4 43.2 H1 2020 Currency H1 2020 Technology Technology Services Services SG&A H1 2021 EBIT* EBIT* Sourcing Sourcing Volume GP % EBIT* (constant Volume GP % currency2) 44 l © Computacenter 2021 * EBI
Slide 45: International Adjusted Income Statement
INTERNATIONAL ADJUSTED1 INCOME STATEMENT H1 2021 H1 2020 Change £m £m Revenue 90.8 77.2 17.6% 1 Adjusted gross profit 17.6 14.7 19.7% 19.4% 19.0% 0.4% Administrative expenses (13.5) (14.5) (6.9%) (4.3%) (4.8%) 0.5% 1 Adjusted operating profit 4.1 0.2 1,950.0% 4.5% 0.3% 4.2% 1,2 Refer to the glossary
Slide 46: International Adjusted Operating Profit Walk (£m)
INTERNATIONAL ADJUSTED1 OPERATING PROFIT WALK (£M) CONSTANT CURRENCY2 0.9 0.1 4.1 0.1 2.2 0.2 0.0 0.2 0.8 H1 2020 Currency H1 2020 Technology Technology SG&A Services Services H1 2021 EBIT* EBIT* Sourcing Sourcing Volume GP % EBIT* (constant Volume GP % currency2) 46 l © Computacenter 2021 * EBIT re
Slide 47: Net Funds
NET FUNDS • One of the Group’s primary measures when managing the business is 3 Jun 21 Jun 20 Change adjusted net funds3. Adjusted net funds £m £m £m • Adjusted net funds3 have decreased £27.2 million since 30 June 2020. Cash and Cash Equivalents 158.6 222.1 (63.5) • Operating cashflow inflow for H1
Slide 48: Group Cash Flow
H1 2021 H1 2020 GROUP CASH FLOW Profit before tax £m 115.2 £m 72.4 Net finance cost/(income) 3.6 2.7 Depreciation and amortisation 19.7 17.1 • Operating net cash inflow of £1.6 million Depreciation of right of use assets 26.3 22.2 Share-based payments 4.6 3.8 during the period (H1 2020: inflow of £4
Slide 49: Group Balance Sheet
GROUP BALANCE SHEET H1 2021 H1 2020 Change £m £m £m Non-current assets Property, plant and equipment 101.2 104.4 (3.2) Right-of-use assets 141.9 117.9 24.0 Goodwill and intangibles 272.8 180.6 92.3 Investment in associates 0.0 0.1 (0.0) Deferred income tax assets 18.9 10.3 8.6 Prepayments 16.6 4.2 1
Slide 50: 2021 Interim Results
2021 INTERIM RESULTS Half-year results to 30 June 2021 (09 September 2021)