Softcat Plc · LSE:SCT
Softcat — FY2023 Earnings Presentation
16 slides from Softcat's earnings presentation, October 2023
Slide 1: Results for the year ended 31 July 2023
Results for the year ended 31 July 2023
Slide 2: Largest provider of cyber security, cloud and IT infrastructure solutions in the UK
We are the largest provider of cyber security, cloud and IT infrastructure solutions in the UK¹, supporting local customers with their global needs Our purpose is to help customers use UK technology to succeed, by putting our Dublin Netherlands employees first Washington Hong Kong Singapore 2,315 £2
Slide 3: Who we are
Who we are Who we are We are a leading reseller of IT infrastructure solutions, supporting UK and Irish customers with their global needs What we do Softcat makes designing, sourcing, implementing and supporting organisations’ IT infrastructure simpler and more effective Our mission To be the world’
Slide 4: Our sources of competitive advantage
Our sources of competitive advantage Our special culture Our competitive advantage Market-leading Market-leading customer offering engagement Passion Fun Highly Customer trust engaged and loyalty Responsibility Intelligence employees over years Community Investment in Market-leading tech and service
Slide 5: Our proven growth strategy
Our proven growth strategy SELL MORE TO ACQUIRE MORE CUSTOMERS EXISTING CUSTOMERS MAINTAIN RELEVANCE AND PEOPLE AND CULTURE EASE OF DOING BUSINESS EXPAND OUR ADDRESSABLE MARKET ~50k 10,100 Softcat UK market share: <5% (1) Potential UK&I customers (corporate and public sector)(2) Softcat customers So
Slide 6: Softcat: at the core of the IT value chain
Softcat: at the core of the IT value chain Workplace technology Networking and security Cloud and data centre Hardware manufacturers and services Software publishers and services Direct Distributors Enterprise Small and medium business Public sector Note: Enterprise includes companies with over 2,00
Slide 7: Our track record: strong and consistent organic growth
Our track record: strong and consistent organic growth 18 years of uninterrupted growth Scaled and stable platform Operating profit (1) Gross profit 373 136 141 £m - FYE 31 July 327 £m +18% +18% 119 CAGR 276 CAGR 13-23 236 13-23 94 211 84 175 68 136 50 121 46 103 41 89 36 71 27 43 56 22 22 29 16 15
Slide 8: Outstanding sale track record…
Outstanding sale track record… We grow our customer base and drive growth in gross profit per customer £40k 10,000 £35k £30k 8,000 £25k 6,000 £20k 4,000 £15k £10k 2,000 £5k - - FY07 FY08 FY09 FY10 FY11 FY12 FY13 FY14 FY15 FY16 FY17 FY18 FY19 FY20 FY21 FY22 FY23 Customer base GP per customer Customer
Slide 9: …with significant growth opportunity
…with significant growth opportunity Large and growing market • The most recent CRN Top 100 VARs report comprises businesses reporting a total of £19.3bn in income, with thousands of Softcat Addressable Market (£M) smaller resellers in the UK outside the top 100 £77.5bn • Gartner estimate that the U
Slide 10: Sales experience drives successful productivity
Sales experience drives successful productivity Account manager progression… …delivers strong gross profit growth Elevated level of account manager productivity £1,120k GP (£m) from investment in breadth of offering since IPO 450 400 FY23 350 FY22 300 FY21 GP (£m) £618k FY20 250 FY19 200 FY18 £316k
Slide 11: Diverse offering with broad and deep capability
Diverse offering with broad and deep capability Selling to a variety of customers… FY23 gross invoiced income: £2,563m Enterprise (>2k employees) 16% Workplace Cloud and Services 20% data centre 31% 39% 37% 24% Public sector 60% Hardware 43% Software 30% SMB(<2k Networking and security employees) Us
Slide 12: Softcat: the vendors' trusted partner
Softcat: the vendors’ trusted partner % of FY23 gross Selected FY20 to FY23 Vendor invoiced income accreditations CAGR • Strong relationships with leading Microsoft 23% Azure Expert MSP 14% global vendors Cisco Systems 7% Gold Partner 17% • Scale and breath of vendor relationships ensures impartial
Slide 13: Robust margins and strong operating efficiency
Robust margins and strong operating efficiency Best-in-class operating efficiency… …and a lean cost base Operating expenses evolution as % of gross profit 43% 42% 40% 39% 40% 39% 39% 40% 40% 38% 38% 38% 37% 9% 35% 11% 9% 9% 10% 10% 34% 8% 9% 22% 21% 22% 21% 20% 21% 20% 20% 30% 33% 31% 30% 30% 31% 29
Slide 14: Appendix
APPENDIX Results for the year ended 31 July 2023 14
Slide 15: Softcat: the UK champion
Softcat: the UK champion UK Gross Invoiced Income per CRN Top 100 VARs for selected peers £2.5bn £2.0bn £1.5bn £1.0bn £0.5bn - 2010 2011 2012 2013 2014 2015 2016 2017 2018 2019 2020 2021 2022/23 Source: ChannelWeb CRN Top VARs 2011 to 2023 and selected company published financial statements. Investo
Slide 16: Summary income statement
Summary income statement £m FY23 FY22 Change Revenue 985.3 1,077.9 (8.6% ) Gross invoiced 2,563.3 2,507.5 2.2% income Gross profit 373.8 327.2 14.2% GP/GII % 14.6% 13.1% 154bps Admin. expenses (232.9) (191.1) 21.9% Operating profit 140.9 136.1 3.5% OP/GP % 37.7% 41.6% (392bps) Interest 1.0 (0.0) Tax