Slide 1: Preliminary Results 2008 / 2008 Financial highlights
Preliminary Results 2008 Date: 10th March, 2009 Location: Speaker: 2008 Financial highlights • Group revenues increased 7.6% to £2.60bn (2007: £2.38bn) j • Adjusted profit p before tax increased 1.0% to £43.1m ((2007: £42.7m)) • Adjusted diluted earnings per share increased 13.5% to 21.0p (2007: 18.
Slide 2: Operating highlights
Operating highlights • Group services contract base grew over 10% to £498m, b basedd on constant t t currency • Major UK change programme launched in Q4 2008 to accelerate transition to higher margin services and solutions business and improve capital return • UK contract base grows 7.5% to £217m, w
Slide 3: A glossary / Group – income statement
A glossary • Adjusted results – PBT andd EPS are adjusted dj t d ffor exceptional ti l ititems and d amortisation ti ti on acquired intangibles • Cus Customer-specific o e spec c financing a c g ((“CSF”) CS ) – Finance costs for CSF are charged after operating profit for statutory purposes – These c
Slide 4: Group – exceptional items / UK – income statement
Group – exceptional items FY FY 2008 2007 £m £m Exceptional charges within operating profit: Impairment of software (1.1) - Impairment of trademark (1.9) - (3.0) - Exceptional credits within income tax expense: Adjustment following agreement of certain items for earlier years 3.6 - Changes in recove
Slide 5: Germany – income statement / France – income statement
Germany – income statement Reported In local currency Growth Growth FY 2008 FY 2007 FY 2008 FY 2007 08 v 07 08 v 07 £m £m % €m €m % Revenue 830.7 708.6 17.2% 1,045.9 1,035.9 1.0% Gross profit 114.4 94.2 21.5% 144.1 137.7 4.6% Finance costs on CSF (0.7) (0.7) 7.5% (0.9) (1.0) (7.5%) Adjusted gross pr
Slide 6: Adjusted cash flow / Analysis of net funds
Adjusted cash flow FY 2008 FY 2007 £m £m Adj t d operating Adjusted ti profit fit 42 1 42.1 41 7 41.7 Adjustments to reconcile Group adjusted operating profit to net cash inflows from operating activities Depreciation and amortisation 18.1 16.6 Share-based payment 2.5 2.7 Working capital movements 1
Slide 7: Group – balance sheet
Group – balance sheet Dec 08 Dec 07 £m £m Non-current Non current assets Property, plant and equipment 123.3 116.4 Goodwill & Intangibles 51.6 45.2 Deferred income tax asset 16.7 8.2 191.5 169.8 Current assets Inventories 105.8 110.5 Trade & other receivables 529.5 454.2 Prepayments &accrued income
Slide 8: Group revenue split / Group ERP system
Group revenue split 2006 revenue by type 2007 revenue by type 2008 revenue by type 24% 26% 27% 28% 32% 31% 5% 4% 4% 11% 12% 13% 27% 27% 27% Personal Systems Network, Server & Storage Personal Systems Network, Server & Storage Personal Systems Network, Server & Storage Software 3rd Party Services Sof
Slide 9: Contract base – Group / UK revenue split
Contract base – Group* £M 500 450 400 350 300 250 200 150 100 50 0 Apr-06 Oct-06 Apr-07 Oct-07 Apr-08 Oct-08 Feb-06 Feb-07 Feb-08 Jun-06 Jun-07 Jun-08 Dec-05 Aug-06 Dec-06 Aug-07 Dec-07 Aug-08 Dec-08 O O O A A A D D D D A A A J J J F F F Belux France Germany Total UK * Stated at constant currency at
Slide 10: UK highlights / Contract base – UK
UK highlights • 2.5% 2 5% revenue growth • Decline in operating profit • Some S restructuring t t i • 14.2% decline in trade distribution • Services revenue growth of 4.3% • Contract base growth of 7.5% 7 5% 19 Contract base – UK Increaseof£23m £M contractedinQ1‘09 240 220 200 180 160 140 120 100 De
Slide 11: UK highlights / Recent UK services wins
UK highlights • 2.5% 2 5% revenue growth • Decline in operating profit • Some S restructuring t t i • 14.2% decline in trade distribution • Services revenue growth of 4.3% • Contract base growth of 7.5% 7 5% • Major new contract wins 21 Recent UK services wins • Unipart p • M&S • Nationwide • Hays •
Slide 12: UK highlights / UK change programme
UK highlights • 2.5% revenue growth g • Decline in operating profit • Some restructuring • 14.2% decline in trade distribution • Services revenue growth of 4.3% • Contract base ggrowth of 7.5% • Major new contract wins • Change programme launched 23 UK change programme • CCD to focus on server and s
Slide 13: Germany revenue split / Germany highlights
Germany revenue split 2006 revenue by type 2007 revenue by type 2008 revenue by type 19% 20% 19% 34% 35% 36% 30% 5% 33% 31% 5% 5% 9% 9% 10% Personal Systems Network, Server & Storage Personal Systems Network, Server & Storage Personal Systems Network, Server & Storage Software 3rd Party Services Sof
Slide 14: Contract base – Germany / Germany highlights
Contract base – Germany Increaseof€5m €M contractedinH1‘09 300 250 200 150 100 50 - Dec-05 Sep-06 Dec-06 Sep-07 Dec-07 Sep-08 Dec-08 J un-06 J un-07 J un-08 Mar-06 Mar-07 Mar-08 M M M D D D D S S S 27 Germany highlights • Small revenue increase of 1% • Record profit year • Services S i revenue growt
Slide 15: French revenue split / French highlights
French revenue split 2006 revenue by type 2007 revenue by type 2008 revenue by type 12% 14% 16% 4% 4% 5% 13% 47% 15% 53% 56% 16% 14% 14% 16% Personal Systems Network, Server & Storage Personal Systems Network, Server & Storage Personal Systems Network, Server & Storage Software 3rd Party Services So
Slide 16: Contract base – France / 2008 Financial highlights
Contract base – France €M 40 35 30 25 20 15 10 5 0 ec-05 ec-06 ec-07 ec-08 ep-06 ep-07 ep-08 un-06 un-07 un-08 ar-06 ar-07 ar-08 Ma Ma Ma De Se De Se De Se De Ju Ju Ju 31 2008 Financial highlights • Group revenues increased 7.6% to £2.60bn (2007: £2.38bn) j • Adjusted profit p before tax increased 1
Slide 17: Future prospects
Future prospects • As we state everyy yyear it is not p possible to draw any meaning about current year until end Q1 • Current economic conditions are undoubtedly affecting ff i our marketsk • Customers drive to reduce costs is aiding our growth in Managed Services • Product revenues are under press