Slide 1: 2023 Full Year Results
2023 Full Year Results 20 March 2024
Slide 2: Disclaimer
Disclaimer This presentation includes statements that are, or may be deemed to be, ‘forward-looking statements’. These forward-looking statements can be identified by the use of forward-looking terminology, including the terms ‘anticipates’, ‘believes’, ‘estimates’, ‘expects’, ‘intends’, ‘may’, ‘pla
Slide 3: 2023 Highlights
2023 Highlights Another record year, well-positioned for the future Market • Exceeded £10bn of Gross invoiced income outperformance • Driven by large customer spend, especially in H1 2023 A strong and • Revenue growth in Technology Sourcing, Managed Services and Professional Services diversified por
Slide 4: Financial Review
Financial Review Chris Jehle, CFO 4
Slide 5: 2023 Financial highlights
2023 Financial highlights 11.4% 7.0% 10.2% 5.4% 11.3% CCY 6.9% CCY 9.8% CCY 5.1% CCY Gross invoiced Revenue Gross Adjusted income profit profit before tax £10.1bn £6.9bn £1,044m £278m 3.0% 3.1% 125.2% 87.9% Adjusted Dividend Free cash flow Adjusted net funds diluted EPS 174.8p 70.0p £340m £459m 5 Re
Slide 6: Delivering growth while continuing to invest
Delivering growth while continuing to invest 2023 2022 Change Change • GII up 11.3% in constant currency £m £m (CCY) driven by Technology Sourcing Gross invoiced income (GII) 10,081.4 9,052.2 11.4% 11.3% outperformance; Revenue up 6.9% Revenue 6,922.8 6,470.5 7.0% 6.9% Gross profit 1,044.0 947.1 10.
Slide 7: Growth across all Service Lines
Growth across all Service Lines Diversified by Service Line and by geography Revenue by Service Line Revenue by Geography Adjusted operating profit1 by Geography £6,923m £6,923m £271.5m2 +6.9% in +6.9% in +0.6% in CCY CCY CCY Share of Change Change Share of Change Change Share of Change Change Group
Slide 8: Germany and North America strength outweighed softer UK
Germany and North America strength outweighed softer UK Diversified across markets Germany North America United Kingdom FY23 Adj op. profit FY23 Adj op. profit FY23 Adj op. profit DOWN UP UP £163.0m £65.0m £58.8m 27% +14% +24% • Strong momentum consolidating our • Continued execution of US growth •
Slide 9: Robust operating profit despite higher investment
Robust operating profit despite higher investment £m in constant currency 9.9 (4.3) (91.9) 36.5 • Strong Technology Sourcing 51.4 volumes and robust margin performance reflecting scale 0.8 benefits and product mix 269.1 269.9 271.5 • Modest increase in Services volumes with margin performance improv
Slide 10: Focus on driving productivity
Focus on driving productivity Adjusted operating profit as a percentage of gross profit 27% Excl. increase • Productivity is one of our 30% in strategic strategic KPIs 29% initiatives 28% spend • 4pts improvement since 2018 23% 26% 22% • 2023 impacted by increase in strategic initiatives spend • Sco
Slide 11: Strong working capital performance driven by inventory reduction
Strong working capital performance driven by inventory reduction Summary cash flows (£m) 136.7 (72.3) Group inventory • £216m at 31 December 2023 (35.1) • Down £202m year-on-year (19.3) (77.3) • Down £317m since peak in 41.8 339.9 September 2022 (28.8) 268.8 Adjusted net funds 214.5 • Adjusted net f
Slide 12: Growing return on capital
Growing return on capital Return on capital employed1 % 55% 52% 47% 43% 43% • High returns on capital 31% • FY 2023 12pts improvement in ROCE driven primarily by significant reduction in inventory 2018 2019 2020 2021 2022 2023 12 1. ROCE is defined as adjusted operating profit divided by net assets
Slide 13: A clear capital allocation framework
A clear capital allocation framework Organic Investment • Drive market share gains through consistent organic investment M&A • Continue to assess acquisitions based on strategic fit • Recent acquisitions have built geographic and business line diversity, which enhances the operational resilience of
Slide 14: 2024 technical guidance
2024 technical guidance Strategic initiatives opex Capex Adjusted effective Dividend cover tax rate 2-2.5x adjusted £28-30m £35-40m 28.5-30.5% diluted EPS 14
Slide 15: Growth in 2024 to be H2 weighted given strength of H1 2023
Growth in 2024 to be H2 weighted given strength of H1 2023 Revenue and Gross profit H1 23 vs FY 23 (£m) H1 23 FY 23 H1 23 FY 23 UP UP UP UP 23% 7% 16% 10% • Strong H1 2023 comparative reflecting exceptional large customer spend 6,923 • More normalised volumes expected in 2024 • Expect further progre
Slide 16: Operating review
Operating review Mike Norris, CEO 16
Slide 17: Well-positioned to deliver long-term profitable growth
Well-positioned to deliver long-term profitable growth Long-term relationships with diversified and high-quality customer base Diversified across markets and technology areas Market-leading scale infrastructure Largest services capability of any value-added reseller in the world Market-leading inter
Slide 18: Our strategic focus
Consistent strategic focus Helping our customers Our Purpose change the world Our strategic focus Target market Scale our Empower our customers activities people 18
Slide 19: Our worldwide coverage
Our worldwide coverage We Source, Transform and Manage technology for our customers in over 70 countries worldwide 19
Slide 20: Strong customer relationships
Strong customer relationships Customers generating >£1m of gross profit • Focused on securing, maintaining and growing 188 183 our relationships with large corporate and 165 public sector customers 156 44 47 134 37 • We have successfully retained and maximised 119 15 38 19 the relationships over the
Slide 21: Powerful partnerships
Powerful partnerships We’re proud to have built powerful partnerships with the world’s leading technology vendors Computacenter holds over 200 technology accreditations. Our people hold over 13,000 technical certifications. 21
Slide 22: Driving long-term growth across the Group
Driving long-term growth across the Group We have grown across all Service Lines Technology Sourcing GII (£m) Professional Services revenue (£m) Managed Services revenue (£m) 8,445 958 CAGR CAGR CAGR 22% 7,482 17% 679 3% 934 637 552 899 5,473 425 865 4,180 366 3,822 836 2019 2020 2021 2022 2023 2019
Slide 23: We grew faster than the market in 2023 driven by large customer spend
We grew faster than the market in 2023 driven by large customer spend Technology Technology Sourcing Sourcing GII (£m) Professional Professional ServicesServices revenue (£m) Managed Managed Services Services revenue (£m) +11.8% +13.5% +4.7% 3,454 UP UP UP £8.4bn 365 £679m £958m 13% 6% 400 1% -1.0%
Slide 24: Our investments to create value
Our investments to create value CIRCULAR SERVICES ARTIFICIAL INTELLIGENCE SALES & CUSTOMER ENGAGEMENT New Circular Services ERP Our new key platforms include New Sales CRM and Quotation system configured for our AI capabilities: e.g. ServiceNow, systems being deployed globally specific needs (Micros
Slide 25: Artificial Intelligence
Artificial Intelligence It’s not all new – extension of digital transformation TECHNOLOGY SOURCING MANAGED SERVICES PROFESSIONAL SERVICES AI will help us to grow and AI will help us to improve our user Customers are asking us to help generate additional revenue and customer experience them make the
Slide 26: Circular Services growth opportunity
Circular Services growth opportunity Recover a device for every device we sell Circular Services Center – Braintree Integration Center - Hatfield 775,000 4.7m devices recovered new devices sold (2023) (2023) 26
Slide 27: Summary and outlook
Summary and outlook 19th year of consecutive adjusted EPS growth in 2023 1 Excellent cash performance 2 Continuing to invest in strategic initiatives to secure future growth 3 Expect to make further progress in 2024 with growth weighted to H2 4 Well-positioned to continue to deliver long-term profit
Slide 28: Capital Markets Day
CAPITAL MARKETS DAY 5 June 2024 (pm) London SAVE THE DATE
Slide 29: Q&A
Q&A 29
Slide 30: Appendix
Appendix 30
Slide 31: Continued growth in profit, cash and shareholder returns
Continued growth in profit, cash and shareholder returns Adjusted diluted EPS (p) Net cash flow from operations (£m) Capital returned to shareholders (£m) 200 450 410.6 140 Total Return 174.8 180 400 since 2013 160 120 £697m 350 10 year 10 year 140 CAGR CAGR 100 300 15% 21% 120 250 80 100 200 80 60
Slide 32: Strategic KPIs
Strategic KPIs Customer growth Lead with Services Productivity No of customers >£1m gross profit Services revenue (£m) Adj Op profit as % of Gross profit 188 183 1,637 1,571 30% 29% 165 1,451 28% 156 26% 1,231 1,261 134 23% 2019 2020 2021 2022 2023 2019 2020 2021 2022 2023 2019 2020 2021 2022 2023 3
Slide 33: Financial KPIs
Financial KPIs Gross invoiced income / Revenue (£m) Gross profit (£m) CAGR CAGR 10,081 19% 9,052 12% 1,044 947 868 6,923 5,441 721 5,053 663 6,471 6,923 5,035 2019 2020 2021 2022 2023 2019 2020 2021 2022 2023 Revenue GII Adjusted diluted EPS (p) Adjusted net funds (£m) CAGR 459 17% CAGR 169.7 174.8
Slide 34: Summary Income Statement
Summary Income Statement 2023 2022 Constant Change £m £m currency Technology Sourcing 8,444.9 7,481.6 12.9% 13.1% Professional Services 678.8 636.6 6.6% 5.7% Managed Services 957.7 934.0 2.5% 1.3% Services 1,636.5 1,570.6 4.2% 3.1% Gross invoiced income 10,081.4 9,052.2 11.4% 11.3% Technology Sourci
Slide 35: Summary by geography
Summary by geography 2023 2022 Constant Change £m £m currency Revenue UK 1,213.7 1,269.4 (4.4%) (4.4%) Germany 2,027.5 1,843.5 10.0% 8.0% France 663.5 613.9 8.1% 6.2% North America 2,748.7 2,507.3 9.6% 11.0% International 269.4 236.4 14.0% 12.0% Total Group 6,922.8 6,470.5 7.0% 6.9% Adjusted operati
Slide 36: Significant reduction in inventory
Significant reduction in inventory Inventory reduction of £317m since peak in September 2022 31 December 31 December Change Change 2023 2022 in constant • Industry supply chain conditions £m £m currency United Kingdom 15.4 20.1 (23.4%) (23.2%) returned to more normal pre- Germany 76.3 107.5 (29.0%)
Slide 37: Balance sheet strength
Balance sheet strength Record adjusted net funds 31 December 2023 31 December 2022 Change £m £m £m Cash and cash equivalents 471.2 264.4 206.8 • Adjusted net funds at 31 December 2023 increased by Bank loans (7.7) (10.4) 2.7 £214.7m to £459.0m Other loans (4.5) (9.7) 5.2 Adjusted net funds 459.0 244