Slide 1: Interim Results 2004
Interim Results 2004 7th September, 2004
Slide 2: Financial Highlights
Financial Highlights z Turnover unchanged at £1.25 billion z Profit before tax up 3.7% to £33.2 million z Eps up 6.8% to 12.6p z Strong operating cash flow Net cash at period end of £62 million z Interim dividend increased to 2.3p
Slide 3: Operational Highlights
Operational Highlights z Price erosion a continuing feature z Strong performance from UK Managed Services Growth of 18.7% z Modest decline in German profits due to market conditions But German integration programme proceeding well z Disappointing performance from CC France Small improvement in
Slide 4: Future Prospects
Future Prospects z Outlook for full year in line with expectations z Attractive long-term prospects Healthy UK franchise, Managed Services growth European turnaround Strong balance sheet, cash generation
Slide 5: Financial Review
Financial Review Tony Conophy
Slide 6: Computacenter PLC - P&L
Computacenter PLC - P&L H1 2003 Growth H1 2004 2004 / 2003 TOTAL £m £m % Revenues 1,254.9 1,254.7 0.0% Gross Profit 171.2 177.8 -3.7% 13.6% 14.2% Other Operating Exp 138.2 145.3 -4.9% 11.0% 11.6% Operating Profit 33.0 32.5 1.8% 2.6% 2.6% Profit before tax 33.2 32.0 3.7% 2.6% 2.6% Profit after tax 23
Slide 7: UK Revenue & Operating Profit
UK Revenue & Operating Profit UK Revenue 1,200 1,004 1,000 829 740 768 756 758 800 700 £m 600 400 200 0 Half 1 2001 Half 2 2001 Half 1 2002 Half 2 2002 Half 1 2003 Half 2 2003 Half 1 2004 UK Operating Profit 40 34.4 35 31.9 31.4 32.2 30.4 30 25.7 25 £m 20 16.9 15 10 5 0 Half 1 2001 Half 2 2001 Half
Slide 8: Computacenter UK - P&L
Computacenter UK - P&L H1 2004 H1 2003 G row th 2004/2003 £m £m % Revenues 758.4 755.8 0.3% G ross Profit 107.9 106.1 1.7% 14.2% 14.0% O ther O perating Exp 75.7 74.7 1.4% 10.0% 9.9% O perating Profit 32.2 31.4 2.4% 4.2% 4.2% Headcount *: Direct 3,162 2,906 8.8% Indirect 1,594 1,576 1.1% (* period e
Slide 9: Germany Revenue & Operating Profit
Germany Revenue & Operating Profit Germany Revenue 350 319 316 312 300 250 200 £m 150 100 50 0 Half 1 2003 Half 2 2003 Half 1 2004 Germany Operating Profit 6 5.5 5 4 3.2 £m 3 2.5 2 1 0 Half 1 2003 Half 2 2003 Half 1 2004
Slide 10: CC CompuNet - P&L
CC CompuNet - P&L G row th H1 2004 H1 2003 2004 / 2003 £m £m £m Revenues 311.9 316.0 -1.3% G ross Profit 42.4 48.8 -13.0% 13.6% 15.4% O ther O perating Exp 39.9 45.6 -12.4% 12.8% 14.4% O perating Profit 2.5 3.2 -21.4% 0.8% 1.0% Headcount *: Direct 2,468 2,564 -3.7% Indirect 997 1,025 -2.7% (* period
Slide 11: France Revenue & Operating Profit
France Revenue & Operating Profit France Revenue 200 173 177 176 180 160 148 147 140 140 117 120 £m 100 80 60 40 20 0 Half 1 2001 Half 2 2001 Half 1 2002 Half 2 2002 Half 1 2003 Half 2 2003 Half 1 2004 France Operating Profit 5.0 4.3 4.0 3.0 2.1 2.2 2.0 £m 1.0 0.2 0.0 Half 1 2001 Half 2 2001 Half 1
Slide 12: Computacenter France - P&L
Computacenter France - P&L H1 2004 H1 2003 Growth 2004 / 2003 £m £m % Revenues 147.1 148.1 -0.7% Gross Profit 16.6 18.6 -11.1% 11.3% 12.6% Other Operating Exp 18.6 22.4 -17.2% 12.6% 15.2% Operating Profit (2.0) (3.8) -47.4% -1.4% -2.6% Goodwill release 0.5 2.1 -75.0% Operating Profit (post goodwill)
Slide 13: Computacenter Austria – P&L
Computacenter Austria – P&L G row th H1 2004 H1 2003 2004 / 2003 £m £m £m Revenues 26.0 27.4 -5.1% G ross Profit 3.1 3.3 -6.2% 12.0% 12.1% O ther O perating Exp 3.4 3.6 -6.3% 13.1% 13.3% O perating Profit (0.3) (0.3) -8.2% -1.1% -1.1% Headcount *: Direct 137 115 18.8% Indirect 85 96 -11.5% (* period
Slide 14: Computacenter Belux – P&L
Computacenter Belux – P&L H1 2004 H1 2003 G row th 2004 / 2003 £m £m % Revenues 11.5 7.4 55.4% G ross Profit 1.2 0.9 36.6% 10.4% 11.8% O ther O perating Exp 1.1 1.1 3.4% 9.8% 14.7% O perating Profit 0.1 (0.2) -131.8% 0.6% -2.9% Headcount *: Direct 87 75 16.1% Indirect 17 18 -5.7% (* period end headc
Slide 15: Computacenter PLC - Operating Cash Flow
Computacenter PLC - Operating Cash Flow H1 2004 H1 2003 G row th 2004 / 2003 £m £m £m % O perating profit 33.0 32.5 1.5% Depreciation 9.5 12.0 (21.0%) Am ortisation of goodw ill (0.4) (2.0) (78.7%) Loss on disposal of fixed assets 0.5 (1.1) (144.0%) Debtors 4.3 (28.9) (114.8%) Stocks 10.2 13.2 (22.8
Slide 16: Computacenter PLC Summary Cash Flow
Computacenter PLC Summary Cash Flow 2004 2003 G row th 2004 / 2003 £m £m £m % O perating Activities 31.5 10.6 198.8% Servicing of finance (0.4) (0.6) (29.6%) Taxation (6.4) (10.3) (37.9%) Capex & Financial Investm ent (5.1) (10.9) (52.9%) Acquisitions/disposals 0.0 (37.8) (100.0%) Dividends paid (9.
Slide 17: Computacenter PLC - Balance Sheet
Computacenter PLC - Balance Sheet Jun 2004 Jun 2003 Growth 2004 / 2003 £m £m % Fixed Assets 110.7 118.8 (6.8%) Current assets: Stocks 121.0 117.6 2.9% Debtors : Gross 485.7 422.7 n/a less : Non Returnable Proceeds (55.6) 0.0 n/a Debtors 430.1 422.7 1.8% Cash 101.0 65.8 53.5% Total Current assets 652
Slide 18: Computacenter plc - Key Ratios
Computacenter plc - Key Ratios Jun 2004 Jun 2003 D ec 2003 Stock (days) 25 26 28 Debtor (days) 41 43 44 Creditor (days) 30 30 37 W orking Capital (days) 36 39 35
Slide 19: Operational Review
Operational Review Mike Norris
Slide 20: The Positives
The Positives z Improvements in all the following areas: Good Managed Services growth Managed Services systems development Strong UK product volumes, particularly servers Broadening market coverage z Increase in Financial Services spend z Significant progress made in Germany
Slide 21: Neutral
Neutral z Product price decline Prices have declined significantly since last year Price decline is now slowing z CC France remains challenging
Slide 22: Negatives
Negatives z Product margin under pressure z Services margin under pressure Particularly in Germany New contract wins and renewals z Central Government spend reducing
Slide 23: Pricing Pressure Eases
Pricing Pressure Eases Channel ASPs Top 7 countries … except in 1750 consumer notebooks 1500 ASP € 1250 1000 750 Business Desktop Business Mobile Consumer Desktop Consumer Mobile 500 Jan- Feb- Mar- Apr- May- Jun- Jul- Aug- Sep- Oct- Nov- Dec- Jan- Feb- Mar- Apr- May- Jun- 03 03 03 03 03 03 03 03 03
Slide 24: Computacenter UK
Computacenter UK z Good Managed Services contract base growth
Slide 25: UK Managed Services Contract Base
£M Ja n- 9 0 20 40 60 80 100 120 140 160 180 M 9 ar - M 99 ay -9 Ju 9 l- 9 Se 9 p- 9 N 9 ov -9 Ja 9 n- 0 M 0 ar - M 00 ay -0 Ju 0 l- 0 Se 0 p- 0 N 0 ov -0 Ja 0 n- 0 M 1 ar - M 01 ay -0 Ju 1 l- 0 Se 1 p- 0 N 1 ov -0 Ja 1 n- 0 M 2 ar - M 02 ay -0 Ju 2 CAGR = 20.3% l- 0 Se 2 p- 0 N 2 ov -0 Ja 2 n- 0 M
Slide 26: Computacenter UK
Computacenter UK z Good Managed Services contract base growth z Steady performance in Professional Services
Slide 27: UK Professional Services
•100% •10% •20% •30% •40% •50% •60% •70% •80% •90% •0% 1-Jan 12-Jan 26-Jan 9-Feb 23-Feb 8-Mar 22-Mar 5-Apr 19-Apr 3-May 17-May 31-May 14-Jun 28-Jun 12-Jul 26-Jul 9-Aug UK Professional Services 23-Aug 6-Sep 20-Sep 4-Oct 18-Oct 1-Nov 15-Nov 29-Nov 13-Dec
Slide 28: Computacenter UK
Computacenter UK z Good Managed Services contract base growth z Steady performance in Professional Services z Strong server sales which we take as a good lead indicator
Slide 29: Vendor Share of CC UK
-50% -30% -10% 10% 30% 50% 70% (34.4%) Sun (24.2%) Microsoft (22.4%) Fujitsu Siemens (16.2%) Dell HP 1.3% Cisco 6.0% Vendor Share of CC UK IBM 18.1% Toshiba 20.0% Veritas 48.8% NEC 61.7%
Slide 30: Computacenter UK
Computacenter UK z Good Managed Services contract base growth z Steady performance in Professional Services z Strong server sales which we take as a good lead indicator z Stronger Financial Services and weaker Central Government
Slide 31: UK Sector Revenue Split
UK Sector Revenue Split % H1 2003 %H1 2004 Government 29.7 30.6 Financial Services 13.3 14.2 Corporate 16.3 15.0 Commercial 11.3 9.1 Scotland 9.5 12.4 Trade Distribution 19.2 18.0 Other* 0.7 0.7 *Other from divisions not categorised by sector, including training
Slide 32: Computacenter UK
Computacenter UK z Good Managed Services contract base growth z Steady performance in Professional Services z Strong server sales which we take as a good lead indicator z Stronger Financial Services and weaker Central Government z RDC continued to perform well
Slide 33: Computacenter UK
Computacenter UK z Good Managed Services contract base growth z Steady performance in Professional Services z Strong server sales which we take as a good lead indicator z Stronger Financial Services and weaker Central Government z RDC continued to perform well z Significant revenue fall at CCD due t
Slide 34: Computacenter Germany
Computacenter Germany z Decline in operating profits z Stronger underlying business z Significant investments in systems z New Chief Executive z Managed Services progress z Re-naming to Computacenter in H2
Slide 35: Computacenter France
Computacenter France z Excluding good will progress looks positive, loss reduced to £2.0 million (2003: £3.8 million) z Significant problems still remain z Cost base is still too high z Re-engineering many parts of the business, particularly Maintenance z Taking a long term approach z Fixing our pro
Slide 36: Other Countries
Other Countries z Good progress made in Belgium and Luxembourg which saw its first positive operating performance z Austria is a source of some concern
Slide 37: Financial Highlights
Financial Highlights z Turnover unchanged at £1.25 billion z Profit before tax up 3.7% to £33.2 million z Eps up 6.8% to 12.6p z Strong operating cash flow Net cash at period end of £62 million z Interim dividend increased to 2.3p
Slide 38: Future Prospects
Future Prospects z Outlook for full year in line with expectations z Attractive long-term prospects Healthy UK franchise, Managed Services growth European turnaround Strong balance sheet, cash generation
Slide 39: Interim Results 2004
Interim Results 2004 7th September, 2004