Slide 1: Preliminary Results 2004
Preliminary Results 2004 15th March, 2005
Slide 2: 2004 Financial Highlights
2004 Financial Highlights 2004 2003 ∆% Turnover £2.46 bn £2.48 bn (1) Profit before tax* £67.3 m £65.2 m 3 Earnings per share* 25.5 p 25.0 p 2 Net cash £80.0 m £49.9 m *Excluding non-operating exceptional charges of £2.6 million
Slide 3: 2004 Highlights
2004 Highlights z UK Managed Services revenue growth of 16.6% z Integration of Computacenter Germany on plan z New management in France and Germany z Substantial investment in France to restore profitability z HP renegotiation to have adverse impact on 2005 profit
Slide 4: Future Prospects
Future Prospects z Trading in first two months of 2005 below anticipated levels z Strategic focus: restoring earnings growth Accelerate services growth Broaden range of services activities Extend product sales to small / medium-sized segment Capture growth opportunities in Germany Restore
Slide 5: Financial Review
Financial Review Tony Conophy
Slide 6: Computacenter PLC - P&L (1)
Computacenter PLC - P&L (1) 2003 Grow th 2004 2004 / 2003 TOT AL TO TAL TO TAL £m £m % Revenues 2,455.8 2,481.3 -1.0% Gross P rofit 335.4 344.6 -2.7% 1 3.7 % 1 3 .9 % Other Operating Expenses (269.7) (278.7) -3.2% -11 .0% -1 1.2 % Group O perating P rofit 65.7 65.9 -0.3% 2 .7 % 2 .7% Share o f JV /
Slide 7: Computacenter Plc - P&L (2)
Computacenter Plc - P&L (2) 2003 Grow th 2004 2004 / 2003 Group P BT P re-exceptional 67.3 65.2 3.2% Exceptional (2.6) 0.0 n/a Profit before tax 64.6 65.2 -0.8% 2 .6 % 2 .6% Tax (19.9) (18.9) 5.1% Effective tax rate 30.7% 29.0% 5.9% - excl exceptionals 29.5% 29.0% 1.8% Profit after tax 44.8 46.3 -3.
Slide 8: UK - Revenue & Operating Profit
UK - Revenue & Operating Profit UK Revenue 1,200 1,004 1,000 829 740 768 756 758 800 700 675 £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 Half 2 2004 UK Operating Profit 40 34.4 35 31.9 31.4 32.2 32.2 30.4 30 25.7 25 £m 20 16.9 15 10 5 0 Half 1
Slide 9: Computacenter UK - P&L
Computacenter UK - P&L 2004 2003 Growth 2004/2003 £m £m % Revenues 1,433.7 1,455.3 -1.5% Gross Profit 205.7 201.6 2.0% 14.3% 13.9% Other Operating Expenses (141.2) (139.7) 1.1% -9.9% -9.6% Operating Profit 64.4 61.8 4.2% 4.5% 4.2% Headcount *: Direct 3,213 2,987 7.6% Indirect 1,696 1,692 0.2% (* per
Slide 10: Germany - Revenue & Operating Profit
Germany - Revenue & Operating Profit Germany Revenue 400 344 350 316 319 312 300 250 £m 200 150 100 50 0 Half 1 2003 Half 2 2003 Half 1 2004 Half 2 2004 Germany Operating Profit 7 6.5 6 5.5 5 4 3.2 £m 3 2.5 2 1 0 Half 1 2003 Half 2 2003 Half 1 2004 Half 2 2004
Slide 11: CC Germany (formerly CompuNet) - P&L
CC Germany (formerly CompuNet) - P&L Growth 2004 2003 2004 / 2003 £m £m £m Revenues 655.5 635.2 3.2% Gross Profit 90.5 95.7 -5.5% 13.8% 15.1% Other Operating Expenses (81.5) (87.0) -6.3% -12.4% -13.7% Operating Profit 9.0 8.7 3.1% 1.4% 1.4% Headcount *: Direct 2,468 2,492 -1.0% Indirect 1,004 1,009
Slide 12: France Revenue & Operating Profit
France Revenue & Operating Profit France Revenue 200 173 177 176 180 148 147 153 160 140 140 117 120 £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 Half 2 2004 France Operating Profit 5.0 4.3 4.0 3.0 2.2 2.1 2.0 1.0 0.2 0.0 £m Half 1 2001 Hal
Slide 13: Computacenter France - P&L
Computacenter France - P&L 2004 2003 Growth 2004 / 2003 £m £m % Revenues 300.4 324.5 -7.4% Gross Profit 31.8 39.8 -20.2% 10.6% 12.3% Other Operating Expenses (38.5) (46.8) -17.8% -12.8% -14.4% Operating Profit (6.7) (7.0) -4.4% -2.2% -2.2% Goodwill release 0.5 4.3 -87.5% Operating Profit (post goodw
Slide 14: Computacenter Belux – P&L
Computacenter Belux – P&L 2004 2003 Growth 2004 / 2003 £m £m % Revenues 21.0 17.3 21.4% Gross Profit 2.3 1.9 19.1% 10.9% 11.1% Other Operating Expenses (2.3) (2.3) -1.7% -10.8% -13.4% Operating Profit 0.0 (0.4) -104.0% 0.1% -2.3% Headcount *: Direct 89 84 6.0% Indirect 16 17 -6.1% (* period end head
Slide 15: Computacenter Austria (discontinued) – P&L
Computacenter Austria (discontinued)– P&L Growth 2004 2003 2004 / 2003 £m £m £m Revenues 45.2 49.0 -7.9% Gross Profit 5.2 5.7 -8.1% 11.5% 11.6% Other Operating Expenses (6.7) (7.2) -5.8% -14.9% -14.6% Operating Profit (1.5) (1.5) 3.0% -3.4% -3.1% Headcount *: Direct 128 123 4.2% Indirect 86 90 -4.5%
Slide 16: Computacenter PLC - Operating Cash Flow
Computacenter PLC - Operating Cash Flow 2 004 200 3 G row th 200 4 / 20 03 £m £m £m % O p eratin g p rofit 65.7 65 .9 (0.3 %) D ep reciatio n 18.4 22 .7 (18.9 %) Am or tisa tio n of go o dw ill (0.3) (3.7) (93.2 %) P rofit on /Reva lua tio n of lis ted in vestme nt (1.6) (0.3) 449.0% L o ss o n d is
Slide 17: Computacenter PLC Summary Cash Flow
Computacenter PLC Summary Cash Flow 2004 2 003 G row th 2 004 / 2003 £m £m £m % O p erating Ac tivities 60.3 53.5 1 2.7% Se rvicin g o f fina nce 0.9 (1 .0) (198.8%) T axatio n (12.3) (22 .5) (45.2%) C ape x & F ina ncia l In vestm en t (7.6) (14 .6) (47.9%) Acq uis itio ns/disp os als 0.0 (37 .3) (
Slide 18: Computacenter PLC - Balance Sheet
Computacenter PLC - Balance Sheet 2004 2003 Growth 2004 / 2003 £m £m % Fixed Assets 103.9 115.8 (10.3% ) Current assets: Stocks 120.1 134.1 (10.5% ) Debtors : G ross 501.7 520.7 n/a less : Non Returnable P roceeds (39.0) (78.4) n/a Debtors 462.7 442.3 4.6% Cash 139.2 97.0 43.5% Total Current assets
Slide 19: Computacenter plc - Key ratios
Computacenter plc - Key ratios Dec 20 04 D ec 2003 Jun 200 4 Stock (days) 26 28 25 D ebto r (days) 46 44 41 C red ito r (days) 32 37 30 W orking Cap ital (days ) 39 35 36
Slide 20: Operational Review
Operational Review Mike Norris
Slide 21: 2004 UK Highlights
2004 UK Highlights z UK Managed Services revenue growth of 16.6% z Good new business wins and contract extensions z Product revenue down 3.2% z Product price decline approximately 12-15% z Re-negotiation of HP terms z Introduction of mid market business
Slide 22: Managed Services Contract Base - UK
£M 20 40 60 80 100 120 140 160 180 Dec-01 Jan-02 Feb-02 Mar-02 Apr-02 May-02 Jun-02 Jul-02 Aug-02 Sep-02 Oct-02 Nov-02 Dec-02 Jan-03 Feb-03 CAGR = 17.8% over 3 years Mar-03 Apr-03 May-03 Jun-03 Jul-03 Aug-03 Sep-03 Oct-03 Nov-03 CAGR = 17.8% over 3 years Dec-03 Jan-04 Feb-04 Mar-04 Apr-04 May-04 Jun
Slide 23: Revenue by Sector Split
Revenue by Sector Split % FY 2004 % FY 2003 Government 29.0% 28.8% Financial Services 16.4% 13.8% Corporate 15.0% 14.8% Scotland 11.9% 10.3% Commercial 9.5% 11.5% Trade Distribution 17.7% 20.2% Other * 0.6% 0.7% •Other from non - sector divisions, including training
Slide 24: Mid Market Initiative
Mid Market Initiative fomputacenter *;", ~ Dire ct Right Now. [ompufacenter
Slide 25: 2004 Germany Highlights
2004 Germany Highlights z 10.1% growth in revenue in H2, giving 5.2% in the year z Modest increase in full year profit to £9.0 million z New Chief Executive appointed in June 04 z Growth in Managed Services contract base to £82.9 million z Re-branding to Computacenter
Slide 26: Managed Services Contract Base - Group
£M - 50 100 150 200 250 300 Dec-01 Jan-02 Feb-02 Mar-02 Apr-02 May-02 Jun-02 Jul-02 Aug-02 Sep-02 Oct-02 Nov-02 Dec-02 Jan-03 Feb-03 CAGR = 34.5% over 3 years Mar-03 Apr-03 May-03 Jun-03 Jul-03 UK Aug-03 Sep-03 Oct-03 Nov-03 Dec-03 Jan-04 Feb-04 Mar-04 Apr-04 Rest of Group May-04 Jun-04 Jul-04 Aug-0
Slide 27: 2004 France Highlights
2004 France Highlights z Operating loss £6.2 million z Revenue decline to £300.4 million (2003: £324.5 million) z Marginal improvement in operating loss excluding good will z One-off operating costs z New Chief Executive from the beginning of 2005
Slide 28: Other Highlights
Other Highlights z Small operating profit in Belux z Disposal of our Austrian subsidiary to S&T
Slide 29: Channel Sales Out Growth
Channel Sales Out Growth •Top 7 countries 2004 annual channel sales PC channel sales growth Q303 – Q404 growth 10.2%. Top 7 countries •Context panel sales out 30% growth rates for Q404 still down on last year. 25% 23.1% •Seasonal sequential 25.2% 20% 17.6% growth rate increase down from last year’s
Slide 30: Product Price Decline Continues
Product Price Decline Continues Channel ASPs Top 7 countries •Pressure continued on 1400 notebook PC pricing as 1300 competition grew in 1200 lower-price segment. 1100 •While business desktop ASP € 1000 PC ASPs held steady during the quarter, 900 increasing sales of 800 higher spec consumer 700 Busi
Slide 31: Future Prospects
Future Prospects z Trading in first two months of 2005 below anticipated levels z Strategic focus: restoring earnings growth Accelerate services growth Broaden range of services activities Extend product sales to small / medium-sized segment Capture growth opportunities in Germany Restore
Slide 32: Preliminary Results 2004
Preliminary Results 2004 15th March, 2005