Slide 1: Interim Results 2011
Interim Results 2011 30 August 2011 © Computacenter 2011
Slide 2: Agenda
Agenda • Highlights Mike Norris • Financial review Tony Conophy • Operational review Mike Norris • Outlook Mike Norris • Summary and Q&A © Computacenter 2011 2
Slide 3: H1 2011 Highlights
H1 2011 Highlights • Group adjusted PBT £26.6m an increase of 24.9% • Adjusted diluted EPS of 12.9p an increase of 24% • Multi-year contracts with new customers across all geographies won • Continued benefit from industrialisation of service offerings • Roll out of ERP project on track • Two acquisi
Slide 4: Financial Review – Tony Conophy
Financial Review – Tony Conophy © Computacenter 2011 4
Slide 5: 2011: Group financial results
2011: Group financial results YTD June YTD June Change 2011 2010 £m £m Revenue excluding acquisitions 1,328.7 1,288.8 3.1% Acquisitions 36.5 - n/a Total Revenue 1,365.3 1,288.8 5.9% Adjusted gross profit 188.5 172.5 9.3% 13.8% 13.4% 3.2% Numbers shown are as Other operating expenses (162.9) (151.8)
Slide 6: 2011: Revenue and Operating profit by segment
2011: Revenue and Operating profit by segment YTD June YTD June YTD June YTD June Change 2011 2011 2011 2010 Like for Like for Incl Acquisitions Total Like Like Acquisitions £m £m £m £m % % Revenue UK 547.3 - 547.3 651.9 (16.0%) (16.0%) Germany 576.4 4.0 580.4 457.2 26.1% 26.9% France 187.2 32.5 219
Slide 7: 2011: Growth continuing in Europe
2011: Growth continuing in Europe Revenue growth in Europe, more Continued operating profit than offsetting UK Product decline growth 1,600 1,400 1,200 220 159 85 164 151 1,000 147 30 457 800 580 £' millions 382 435 25 600 400 8 549 540 652 547 20 3 200 15 7 0 £' millions 2008 (H1) 2009 (H1) 2010 (H
Slide 8: Group – PBT bridge
Group – PBT bridge £m 3.6 5.5 5 1.2 2 Organic Organic Organic 26.6 Other 21.3 Product Services SG&A Acquisitions Amortisation YTD June YTD June Interest Volume Volume Margin Margin SG&A 2010 2011 ERP © Computacenter 2011 8
Slide 9: Group – reconciliation of adjusted to statutory profit after tax
Group – reconciliation of adjusted to statutory profit after tax H1 2011 H1 2010 Change £m £m % Tax rate continues to Adjusted profit before tax 26.6 21.3 24.9% benefit from a low tax Amortisation of acquired intangibles (0.4) (0.3) 22.8% rate in Germany Statutory profit before tax 26.2 21.0 24.9% A
Slide 10: Net funds improved in the year
Net funds improved in the year June 2011 Dec 2010 June 2010 The Group’s cash has reduced due to: £m £m £m Acquisitions - £23m Cash and cash equivalents 79.3 155.9 128.1 Current asset investments 25.0 - - Reduction in the Own loans and leases benefit from - - (1.4) temporary credit Factor financ
Slide 11: Net funds bridge
But impacted by one off investing activities 200 Volume reduction in extended terms from significant supplier 180 10 5 1 6 160 26 20 140 23 120 14 3 100 £11m on RDC £' millions 80 property 139 60 Top Info, HSD 104 and ICS 40 20 0 Acquisitions Working Net interest EBIT Dividends paid Closing Net ( fi
Slide 12: Continuing positive cash flows
Continuing positive cash flows Operating cash flow Free cash flow utilised on Despite acquisitions and continues to be ahead of capex in 2011 capex, net funds are operating profit higher than June 2010 150 70 70 60 100 60 50 50 50 96 104 40 40 47 30 30 - 20 (30) (23) (38) 20 (65) 10 (66) 10 (50) 0 0
Slide 13: Financial return
Financial return 30.0% EBIT margin improvement 25.0% 8.0% 6.6% 20.0% 6.0% 5.1% 15.0% 4.0% 10.0% 2.4% 2.0% 1.9% 5.0% 0.0% 0.0% 2006 2007 2008 2009 2010 2011 2008 2009 2010 2011 EBIT/Net revenue % [Full year] EBIT/Net revenue % [Half year] Full Year Half Year Reported EBIT margin % [Full year] Reporte
Slide 14: FY11 modelling considerations
FY11 modelling considerations Net interest • No material changes expected • Dependant on mix in earnings as we utilise losses in Tax European operations • Similar proportion of earnings should result in tax rate being 23 – 25% • No exceptional items expected until ERP benefits start being Exceptiona
Slide 15: Operational Review & Outlook – Mike Norris
Operational Review & Outlook – Mike Norris © Computacenter 2011 15
Slide 16: Group highlights
Group highlights Contract base – CAGR • Group profitability growth £M 600 demonstrates the benefit of 500 multi-country investment 400 300 3yr CAGR = 9.1% • Growth in the services mix of the 200 business 100 0 • Successfully executed two Jun-08 Aug-08 Oct-08 Dec-08 Feb-09 Apr-09 Jun-09 Aug-09 Oct-09
Slide 17: UK highlights
UK highlights Contract base – CAGR • Disappointing decline in UK £M 300 Product revenue 250 • Services revenue growth remains 200 150 positive 100 3yr CAGR = 8.2% 50 • Gross margin improvement in - Aug-08 Dec-08 Aug-09 Dec-09 Aug-10 Dec-10 Jun-08 Oct-08 Apr-09 Jun-09 Oct-09 Apr-10 Jun-10 Oct-10 Apr-
Slide 18: Germany highlights
Germany highlights Contract base – CAGR €M 350 • Product revenue grew strongly 300 from a firm base 250 200 • Services revenue was strong 150 3yr CAGR = 8.8% 100 from a weak base 50 - Sep-08 Dec-08 Sep-09 Dec-09 Sep-10 Dec-10 Jun-08 Jun-09 Jun-10 Jun-11 Mar-09 Mar-10 Mar-11 • Windows 7 increasing de
Slide 19: France highlights
France highlights Contract base – CAGR • Substantial acquisition to €M 60 increase scale 50 40 • Small operating profit including 30 acquisition 20 3yr CAGR = 13.5% 10 • Product and Services revenue 0 Sep-08 Dec-08 Sep-09 Dec-09 Sep-10 Dec-10 Jun-08 Jun-09 Jun-10 Jun-11 Mar-09 Mar-10 Mar-11 growth e
Slide 20: No change to impact from our ERP implementation
No change to impact from our ERP implementation Amortisation & depreciation will increase as But the long term benefits to the our countries go live on our new ERP system Group are significant... during 2011 (c£3m) and 2012 (c£5m) Germany UK France go live Introduce a clear control go live go live
Slide 21: Outlook
Outlook • We remain on track to achieve the Board’s expectations for 2011 • Second half growth in Germany has a more challenging comparator than H1 • Incremental depreciation from new ERP System in H2 • Strong contractual services wins and pipeline bodes well for the future • Increased contractual s
Slide 22: Appendix
Appendix © Computacenter 2011 22
Slide 23: Glossary
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, and excludes the transfer of internal ERP implementation costs between segments • Customer-specific financing (“CSF”
Slide 24: Group – sources of revenue
Group – sources of revenue Reported In constant currency YTD June YTD June YTD June YTD June 2011 2010 Change 2011 2010 Change £m £m % £m £m % Product revenue Total Product revenue 963.3 907.1 6.2% 963.3 906.5 6.3% Services revenue Professional services 99.4 90.3 10.1% 99.4 90.3 10.2% Support and ma
Slide 25: UK – income statement
UK – income statement YTD June YTD June Change 2011 2010 £m £m % Revenue 547.3 651.9 (16.0% ) Adjusted gross profit 90.0 91.9 (2.1% ) 16.5% 14.1% 2.4% Other operating expenses (73.4) (73.8) (0.6% ) (13.4%) (11.3%) (2.1%) Adjusted operating profit 16.7 18.1 (7.9% ) 3.0% 2.8% 0.3% Headcount: * Direct
Slide 26: Germany – income statement
Germany – income statement1 Reported In local currency YTD June YTD June YTD June YTD June Change Change 2011 2010 2011 2010 £m £m % €m €m % Revenue excluding acquisitions 576.4 457.2 26.1% 664.0 525.7 26.3% Acquisitions 4.0 - n/a 4.6 - n/a Revenue 580.4 457.2 26.9% 668.6 525.7 27.2% Adjusted gross
Slide 27: France – income statement
France – income statement Reported In local currency YTD June YTD June YTD June YTD June Change 2011 2010 Change 2011 2010 £m £m % €m €m % Revenue excluding acquisitions 187.2 164.3 14.0% 215.6 188.9 14.2% Acquisitions 32.5 - n/a 37.5 - n/a Revenue 219.7 164.3 33.8% 253.1 188.9 34.0% Adjusted gross
Slide 28: Adjusted cash flow
Adjusted cash flow YTD June YTD June 2011 2010 £m £m Adjusted operating profit 25.6 20.6 Adjustm ents to reconcile Group adjusted operating profit to net cash inflow s from operating activities Depreciation and amortisation 8.7 8.8 Share-based payments 1.3 1.3 Working capital movements (5.2) 13.2 Ot
Slide 29: Group – balance sheet
Group – balance sheet June 2011 Dec 2010 June 2010 £m £m £m Non-current assets Property, plant and equipment 97.2 88.9 96.2 Goodwill & Intangibles 100.7 78.5 77.3 Investments 0.5 0.0 0.1 PP&E UP: Purchase of Property in Deferred income tax asset 17.3 15.5 17.6 RDC 215.7 183.0 191.3 Intangibles U
Slide 30: UK – Operating profit bridge
UK – Operating profit bridge £m Organic Organic Organic Product Services SG&A 11 0.7 2.5 18.1 6 16.7 YTD June YTD June Volume Volume Margin Margin SG&A 2010 © Computacenter 2011 2011 30
Slide 31: Germany – Operating profit bridge
Germany – Operating profit bridge €m -2.4 3.5 -1.4 0.8 -5.8 11 9.7 Organic Organic Organic 4.0 Services Other SG&A Product amortisation YTD June YTD June Volume Volume Margin Margin Other 2010 2011 ERP © Computacenter 2011 31
Slide 32: France – Operating profit bridge
France – Operating profit bridge €m Organic Organic Organic Product Other Services SG&A 0.5 -1.6 0.6 0.2 1.9 -1.4 Acquisition Tax reclass YTD June YTD June Volume Volume Margin Margin Other 2010 2011 © Computacenter 2011 32
Slide 33: Working capital days
Working capital days 50 45 40 35 30 Stock turnover days 25 Trade debtor days 20 Trade creditor days 15 Working capital days 10 5 - 2008 H1 2009 H1 2010 H1 2011 H1 © Computacenter 2011 33