Slide 1: Interim Results 2010
Interim Results 2010 27 August 2010 © Computacenter 2010
Slide 2: H1 2010 Financial highlights
H1 2010 Financial highlights • Adjusted profit before tax increased 16.6% to £21.3 million (2009: £18 £18.2million) 2million) • Adjusted diluted earnings per share increased by 8.3% to 10.4p ((2009: 9.6p)) • Group revenues increased by 5.4% to £1.29 billion (2009: £1.22 billion) • Interim dividend i
Slide 3: Operating highlights
Operating highlights • Revenue growth ahead of the market in all our major geographies • Growth in contractual services base of 4.6% to £509.7 million (2009: £487.3 million) • Encouraging growth in product revenue, up 14.8%, in constant currency and excluding the effect of the disposal of our trade
Slide 4: Financial Review: Tony Conophy
Financial Review: Tony Conophy © Computacenter 2010 4
Slide 5: A glossary
A glossary Adjusted results • PBT and EPS are adjusted for exceptional items and amortisation on acquired intangibles • Operating profit is stated after charging finance costs on CSF, and excludes the transfer of internal ERP implementation costs between segments Customer-specific financing (‘CSF’)
Slide 6: Group – adjusted income statement
Group – adjusted income statement As reported In constant currency Movement Movement H1 10 H1 09 H1 10 H1 09 10 v 09 10 v 09 £m £m % £m £m % Revenue 1,288.8 1,222.2 5.4% 1,288.8 1,206.4 6.8% Adjusted gross profit 172 5 172.5 168 6 168.6 2 3% 2.3% 172 5 172.5 166 5 166.5 3 6% 3.6% 13.4% 13.8% (0.4%)
Slide 7: Group – sources of revenue
Group – sources of revenue Reported In constant currency Growth G th Growth G th 10 H1 10 H1 09 H1 10 H1 09 v 09 10 v 09 £m £m % £m £m % Product revenue Ongoing 907.1 800.4 13.3% 907.1 790.0 14.8% Trade Distribution - 46.5 (100.0%) - 46.5 (100.0%) Total product revenue 907.1 846.8 7.1% 907.1 836.5 8
Slide 8: Sources of revenue
Sources of revenue 1,400.0 1,200.0 7% 4% 8% 1,000.0 CCD Product revenue 70% £''millions 800.0 65% 67% Managed services 67% 600.0 Professional services 400.0 200.0 19% 24% 23% 19% 6% 7% 7% 7% 0.0 H1 07 H1 08 H1 09 H1 10 © Computacenter 2010 8
Slide 9: Group – reconciliation of adjusted to statutory profit after tax
Group – reconciliation of adjusted to statutory profit after tax Movement H1 10 H1 09 10 v 09 £m £m % Adjusted profit before tax 21.3 18.2 16.6% Amortisation of acquired intangibles (0.3) (0.3) 15.8% Exceptional items 0.0 (6.0) -100.0% Statutory profit before tax 21.0 12.0 75.1% Adjusted tax expense
Slide 10: Segment adjusted operating profit
Segment adjusted operating profit 25 20 4 7 15 Benelux 3 France ons 4 £' millio 10 Germany 18 UK 13 11 5 9 0 (2) (2) (1) (1) (0) (0) (0) (0) H1 07 H1 08 H1 09 H1 10 (5) © Computacenter 2010 10
Slide 11: Group – Operating expenses
Group – Operating expenses As Reported In constant currency Growth Growth H1 10 H1 09 H1 10 H1 09 10 v 09 10 v 09 £m £m % £m £m % UK 73.8 75.2 ‐2% 73.8 75.2 ‐2% Germany 56.3 53.1 6% 56.3 51.7 9% France 19.5 20.4 ‐4% 19.5 19.9 ‐2% Benelux 22 2.2 19 1.9 17% 22 2.2 19 1.9 20% Group 151.8 150.6 1% 151.8
Slide 12: UK – income statement
UK – income statement Growth H1 10 H1 09 UK 10 v 09 £m £m % Revenue - Ongoing 651.9 578.4 12.7% - CCD - 46.5 (100.0%) - Total 651.9 624.9 4.3% Adjusted gross profit 91.9 87.8 4.7% 14.1% 14.0% 0.1% Other operating expenses (73.8) (75.2) (1.8%) (11.3%) (12.0%) 0.7% Adjusted operating profit 18.1 12.6
Slide 13: Germany – income statement
Germany – income statement Reported In local currency Growth Growth H1 10 H1 09 H1 10 H1 09 Germany 10 v 09 10 v 09 £m £m % €m €m % Excluding becom 422.7 433.3 (2.4%) 486.2 485.3 0.2% becom 33.1 0.0 n/a 38.1 0.0 n/a Revenue 455.8 433.3 5.2% 524.3 485.3 8.0% Adjusted gross profit 60.0 60.3 (0.5%) 69.
Slide 14: France – income statement
France – income statement Reported In local currency Growth Growth H1 10 H1 09 H1 10 H1 09 France 10 v 09 10 v 09 £m £m % €m €m Revenue 164.3 151.1 8.7% 189.0 169.2 11.7% Gross profit 18.3 19.0 (3.6%) 21.1 21.3 (1.0%) 11.2% 12.6% 11.2% 12.6% Other operating expenses (19.5) (20.4) (4.5%) (22.5) (22.9
Slide 15: Analysis of net funds
Analysis of net funds June 10 June 09 Dec 09 £m £m £m Cash and cash equivalents 128.1 69.7 105.0 Own loans (1.4) 0.0 (3.7) Factor financing (31 1) (31.1) (22 4) (22.4) (14 8) (14.8) Net funds prior to CSF 95.6 47.3 86.4 Finance leases (32.8) (48.9) (42.6) Other loans (5 7) (5.7) (16 4) (16.4) (6 5)
Slide 16: Adjusted Cash Flow (excluding CSF)
£' million ns 20 40 60 80 100 120 140 0 Opening Net 86 © Computacenter 2010 Fun nds 21 PBT Depn / A Amort / 10 SBP W Working 13 Capital C Net interest 1 recceived 5 Tax paid Ca apital 16 Expenditure 12 Dividends paid Adjusted Cash Flow (excluding CSF) Other 3 ( financin ng act / fore ex) Closing Net
Slide 17: Working capital days
Working capital days 70 60 50 40 Stock turnover days Trade debtor days 30 Trade creditor days 20 Working capital days 10 ‐ Jun‐07 Dec‐07 Jun‐08 Dec‐08 Jun‐09 Dec‐09 Jun‐10 © Computacenter 2010 17
Slide 18: Group – balance sheet
Group – balance sheet Jun 10 Jun 09 Dec 09 PP&E DOWN: reduction of leased assets (held on customer contracts) £m £m £m Non-current assets Property, plant and equipment 96.2 113.4 105.3 Goodwill & Intangibles 77.4 52.5 73.0 Intangibles UP: ERP investment Deferred income tax asset 17.6 17.7 16.4 191.2
Slide 19: Operational Review: Mike Norris
Operational Review: Mike Norris © Computacenter 2010 19
Slide 20: Group Trends and Highlights
Group Trends and Highlights • Return of capital expenditure gave a boost to product sales • Integration projects have returned • Professional services are busy • Good contractual growth g g balance sheet • Good strengthening • ERP project on track, approximately 80% of capital spent © Computacenter
Slide 21: Revenue by type – Group
Revenue by type – Group 2008 H1 2009 H1 2010 H1 23% 24% 29% 27% 32% 30% 4% 5% 5% 24% 24% 26% 16% 14% 16% Personal Systems Personal Systems Personal Systems Datacentre & networking Datacentre & networking Datacentre & networking Software Software Software 3rd Party Services 3rd Party y Services 3rd P
Slide 22: Contract base – Group
Contract base – Group* £M 600 500 400 300 200 100 0 Oct-07 Apr-08 Oct-08 Apr-09 Oct-09 Apr-10 Feb-08 Feb-09 Feb-10 JJun-07 JJun-08 JJun-09 JJun-10 Aug-07 Dec-07 Aug-08 Dec-08 Aug-09 Dec-09 O O O A A A D D D A A A F F F Belux France Germany Total UK * Stated at constant currency at exchange rates pre
Slide 23: UK Highlights
UK Highlights • Revenue growth of 12.7% to £651.9 million • Services grew by 8.0% • Product revenue increase of 14.6% • Flat SG&A • Service contract base grew by 6.1% • Strong performance by RDC p gp • Operating profit g grew by y 43.7% to £18.1 million © Computacenter 2010 23
Slide 24: Revenue by type – UK
Revenue by type – UK 2008 H1 2009 H1 2010 H1 20% 23% 26% 27% 28% 29% 4% 4% 4% 26% 27% 19% 24% 17% 20% Personal Systems Personal Systems Personal Systems Datacentre & networking Datacentre & networking Datacentre & networking Software Software Software 3rd Party Services 3rd Party Services 3rd Party
Slide 25: Contract base - UK
- £M 100 150 200 250 50 Jun-07 J © Computacenter 2010 Aug-07 A Oct-07 Dec-07 D Feb-08 F Apr-08 Jun-08 J Contract base - UK Aug-08 A Oct-08 Dec-08 D Feb-09 F Apr-09 Jun-09 J 8 0% 3yr CAGR = 8.0% Aug-09 A Oct-09 Dec-09 D Feb-10 F Apr-10 Jun-10 J 25
Slide 26: Germany Highlights
Germany Highlights • Revenue increased by y 8.0% including g becom • Very weak Q1 getting better in Q2 • Decrease in service revenue of 2 2.4% 4% • Poor utilisation of professional services • Good integration of becom • Operating profit reduced by 46.7% © Computacenter 2010 26
Slide 27: Revenue by type - Germany
Revenue by type - Germany 2008 H1 2009 H1 2010 H1 20% 20% 20% 38% 36% 40% 27% 24% 29% 5% 7% 10% 6% 8% 10% Personal Systems Personal Systems Personal Systems Datacentre & networking Datacentre & networking Datacentre & networking Software Software Software 3rd Partyy Services 3rd Partyy Services 3rd
Slide 28: Contract base - Germany
- €M 100 150 250 200 300 50 Ju un-07 © Computacenter 2010 Se ep-07 De ec-07 Ma ar-08 Ju un-08 Se ep-08 3yr De ec-08 Contract base - Germany Ma ar-09 Ju un-09 Se ep-09 8 8% 3 CAGR = 8.8% De ec-09 Ma ar-10 Ju un-10 28
Slide 29: France Highlights
France Highlights • Revenue increase of 8.7% • Some product margin erosion • Service growth of 7.8% • Product growth of 12.6% • Ahead of our internal Plan • Operating loss reduced to £1.2 million © Computacenter 2010 29
Slide 30: Revenue by type - France
Revenue by type - France 2008 H1 2009 H1 2010 H1 16% 19% 19% 4% 39% 44% 5% 43% 6% 18% 20% 21% 17% 13% 15% Personal Systems Personal Systems Personal Systems Datacentre & networking Datacentre & networking Datacentre & networking Software Software Software 3rd Party Services 3rd Party Services 3rd Pa
Slide 31: Contract base - France
10 20 30 40 50 60 €M 0 Jun-07 © Computacenter 2010 Sep-07 Dec-07 Mar-08 Jun-08 Sep-08 Contract base - France Dec-08 Mar-09 Jun-09 Sep-09 3yr CAGR = 20.1% Dec-09 Mar-10 Jun-10 31
Slide 32: H1 2010 Financial highlights
H1 2010 Financial highlights • Adjusted profit before tax increased 16.6% to £21.3 million (2009: £18 £18.2million) 2million) • Adjusted diluted earnings per share increased by 8.3% to 10.4p p ((2009: 9.6p) p) • Group revenues increased by 5.4% to £1.29 billion (2009: £1.22 billion) • Interim divide
Slide 33: Outlook
Outlook • It is early in the second half but so far growth rates are in line or ahead of H1 • Contractual services growth will continue in H2 but we need new wins to maintain the growth in 2011 • Product sales look strong even when you include UK Public Sector • Professional services are very encour
Slide 34: Appendix
Appendix © Computacenter 2010 34
Slide 35: Adjusted cash flow
Adjusted cash flow H1 10 H1 09 £m £m Adjusted operating profit 20.6 18.0 Adjustments Adj t t tto reconcile il G Group adjusted dj t d operating ti profit fit tto nett cash h inflows i fl from operating activities Depreciation and amortisation 8.8 8.3 Share-based payment 1.3 1.1 Working capital movem