Slide 1: Interim Results 2008
Interim Results 2008 Mike Date:Norris & Tony Conophy 28 August 2008 Location: Speaker:
Slide 2: H1 2008 Financial Highlights
H1 2008 Financial Highlights 2008 2007 ∆% Turnover £1.25 bn £1.16 bn 7.8 Profit before tax £11.0 m £12.8 m (14.2) Diluted earnings per share 5.2 p 4.7 p 10.6 Net funds* (£29.7 m) (£16.5 m) *prior to customer-specific financing Computacenter Plc
Slide 3: H1 2008 Operational Highlights
H1 2008 Operational Highlights • Very weak first six weeks in UK and France • Strong Q2 across the company • Strong growth in Software in all geographies • Group Services revenue up 14.1% • Services now represents 27% of group sales • Strong Services wins in each country Computacenter Plc
Slide 4: Outlook
Outlook • Too early in the period to draw any firm conclusions • New services take-on’s in H2 will be strong • EPS should show the third year of significant increase driven by lower tax rate and fewer shares • Management is confident to achieve its current expectations Computacenter Plc
Slide 5: Financial Review
Financial Review Date: Tony Conophy Conophy Location: Speaker:
Slide 6: Group – income statement
Group – income statement Growth H1 2008 H1 2007 08 v 07 £m £m % Revenue 1,250.3 1,160.3 7.8% Gross profit 169.5 154.2 10.0% Finance costs on CSF (1.7) (0.6) 176.8% Adjusted gross profit * 167.8 153.5 9.3% 13.4% 13.2% 0.2% Other operating expenses (156.8) (141.1) 11.2% Adjusted operating profit * 11.
Slide 7: UK – income statement
UK – income statement Growth H1 2008 H1 2007 08 v 07 £m £m % Revenue 708.1 671.2 5.5% Gross profit 98.9 95.3 3.8% Finance costs on CSF (1.5) (0.2) 504.5% Adjusted gross profit 97.4 95.1 2.5% 13.8% 14.2% (0.4%) Other operating expenses (88.6) (83.8) 5.7% (12.5%) (12.5%) (0.0%) Adjusted operating prof
Slide 8: Germany – income statement
Germany – income statement Reported In local currency Growth Growth H1 2008 H1 2007 H1 2008 H1 2007 08 v 07 08 v 07 £m £m % €m €m % Revenue 379.8 340.7 11.5% 490.3 505.2 (3.0%) Gross profit 52.0 43.3 19.9% 67.1 64.3 4.4% Finance costs on CSF (0.2) (0.4) (34.8%) (0.3) (0.6) (43.2%) Adjusted gross pro
Slide 9: France – income statement
France – income statement Reported In local currency Growth Growth H1 2008 H1 2007 H1 2008 H1 2007 08 v 07 08 v 07 £m £m % €m €m Revenue 147.2 135.3 8.8% 190.0 200.7 (5.3%) Gross profit 17.0 14.2 19.6% 21.9 21.0 4.1% 11.5% 10.5% 11.5% 10.5% Other operating expenses (18.9) (16.3) 16.0% (24.4) (24.2)
Slide 10: Group – revenue by segment
Group – revenue by segment Growth H1 2008 H1 2007 08 v 07 £m £m % Product 923.2 873.6 5.7% Professional services 84.0 71.1 18.2% Support and managed services 243.1 215.6 12.7% Services 327.1 286.7 14.1% Total group 1,250.3 1,160.3 7.8% Computacenter Plc 9
Slide 11: Adjusted cash flow
Adjusted cash flow H1 H1 2008 2007 £m £m Adjusted operating profit 11.0 12.4 Adjustments to reconcile Group adjusted operating profit to net cash inflows from operating activities Depreciation and amortisation 9.0 8.6 Share-based payment 1.6 1.3 Working capital movements (5.5) (13.8) Currency and ot
Slide 12: Analysis of net funds
Analysis of net funds Jun 08 Jun 07 Dec 07 £m £m £m Cash and cash equivalents 14.6 4.6 7.3 Factor financing (44.3) (21.1) (23.5) Net debt prior to CSF (29.7) (16.5) (16.2) Finance leases (50.0) (30.2) (47.6) Other loans (16.2) (6.7) (16.0) Total CSF (66.2) (36.9) (63.6) Net debt (95.9) (53.4) (79.8)
Slide 13: Group – balance sheet
Group – balance sheet Jun 08 Jun 07 Dec 07 £m £m £m Non-current assets Property, plant and equipment 114.4 102.1 116.4 Goodwill & Intangibles 46.2 44.8 45.2 Deferred income tax asset 8.6 8.2 8.2 169.1 155.1 169.8 Current assets Inventories 94.7 92.0 110.5 Trade & other receivables 477.1 410.4 454.2
Slide 14: Operational Review
Operational Review Date: Mike Mike Norris Norris Location: Speaker:
Slide 15: H1 2008 Operational Highlights
H1 2008 Operational Highlights • Very weak first six weeks in UK and France • Strong Q2 across the company • Strong growth in Software in all geographies • Group Services revenue up 14.1% • Services now represents 27% of group sales • Strong Services wins in each country Computacenter Plc
Slide 16: H1 Sales by type: Group
H1 Sales by type : Group 2006 revenue by type 2007 revenue by type 2008 revenue by type 24% 25% 27% 29% 31% 34% 5% 5% 4% 11% 12% 15% 27% 26% 26% Personal Systems Network, Server & Storage Personal Systems Network, Server & Storage Personal Systems Network, Server & Storage Software 3rd Party Service
Slide 17: Contract Base: Group
Contract Base : Group 450.0 £M 400.0 350.0 300.0 250.0 200.0 150.0 100.0 3 year CAGR = 15.1% 50.0 At constant ccy = 12.7% - Oct-05 Oct-06 Oct-07 Apr-06 Apr-07 Apr-08 Feb-06 Feb-07 Feb-08 Jun-05 Jun-06 Jun-07 Jun-08 Aug-05 Dec-05 Aug-06 Dec-06 Aug-07 Dec-07 UK as reported UK Acquired Germany France B
Slide 18: UK Highlights
UK Highlights • Good Managed Services and Support Services wins in H1 will drive contract base growth in H2 and revenue enhancement in 2009 • Good performance in Professional Services particularly in the datacentre arena • Software revenue growth by 34.8% driven predominantly by Microsoft sales • 27
Slide 19: H1 Sales by type: UK
H1 Sales by type : UK 2006 revenue by type 2007 revenue by type 2008 revenue by type 21% 23% 23% 31% 30% 35% 5% 5% 4% 12% 13% 16% 28% 27% 27% Personal Systems Network, Server & Storage Personal Systems Network, Server & Storage Personal Systems Network, Server & Storage Software 3rd Party Services S
Slide 20: Contract Base: UK
Contract Base : UK £M 220 Embedded 200 product rentals 180 160 140 3 year CAGR = 4.4% (excl product) 120 = 6.7% (incl product) 100 Oct-05 Oct-06 Oct-07 Apr-06 Apr-07 Apr-08 Aug-05 Dec-05 Aug-06 Dec-06 Aug-07 Dec-07 Jun-05 Jun-06 Jun-07 Jun-08 Feb-06 Feb-07 Feb-08 Computacenter Plc 19
Slide 21: German Highlights
German Highlights • Strong performance in Services margin • Significant Services wins that will come on board in H2 • Product volumes down, partly due to one low margin contract coming to an end • Successful management transition Computacenter Plc 20
Slide 22: H1 Sales by type: Germany
H1 Sales by type : Germany 2006 revenue by type 2007 revenue by type 2008 revenue by type 22% 22% 20% 35% 34% 38% 27% 3% 31% 5% 30% 5% 9% 9% 10% Personal Systems Network, Server & Storage Personal Systems Network, Server & Storage Personal Systems Network, Server & Storage Software 3rd Party Service
Slide 23: Contract Base: Germany
Contract Base : Germany €M 250 200 150 100 3 year CAGR = 20.8% 50 - Dec-07 Dec-06 Dec-05 Sep-07 Sep-06 Sep-05 Jun-08 Jun-07 Jun-06 Jun-05 Mar-08 Mar-07 Mar-06 Computacenter Plc 22
Slide 24: France Highlights
France Highlights • Good performance in Q2 after a very difficult Q1 • Reduced operating loss despite revenue declines • Increased Services revenue gives the business more predictability • Breakthrough Service contract with EDF • Nothing to report on the French Army Computacenter Plc 23
Slide 25: H1 Sales by type: France
H1 Sales by type : France 2006 revenue by type 2007 revenue by type 2008 revenue by type 13% 14% 16% 4% 4% 4% 44% 13% 14% 51% 54% 18% 15% 17% 17% Personal Systems Network, Server & Storage Personal Systems Network, Server & Storage Personal Systems Network, Server & Storage Software 3rd Party Servic
Slide 26: Contract Base: France
Contract Base : France €M 40 35 30 25 20 15 10 3 year CAGR = 17.4% 5 0 Sep-05 Sep-06 Sep-07 Dec-05 Dec-06 Dec-07 Jun-05 Jun-06 Jun-07 Jun-08 Mar-06 Mar-07 Mar-08 Computacenter Plc 25
Slide 27: Outlook
Outlook • Too early in the period to draw any firm conclusions • New services take-on’s in H2 will be strong • EPS should show the third year of significant increase driven by lower tax rate and fewer shares • Management is confident to achieve its current expectations Computacenter Plc
Slide 28: Interim Results 2008
Interim Results 2008 Mike Date:Norris & Tony Conophy 28 August 2008 Location: Speaker: