Slide 1: Preliminary Results 2007
Preliminary Results 2007 Date: 11 March, 2008 Location: Speaker:
Slide 2: 2007 Financial Highlights
2007 Financial Highlights • Group revenues up 4.8% to £2.38 billion (2006: £2.27 billion) • Adjusted* profit before tax up 12.3% to £42.7 million (2006: £38.0 million) • Adjusted* diluted earnings per share up 34.1% to 18.5p (2006: 13.8p) • Final dividend of 5.5p per share, total dividend 8.0p (2006
Slide 3: Operating Highlights
Operating Highlights • First Group revenue growth since 2003 • UK business enters 2008 with a record contract base and a strong pipeline of new business across market sectors. • Best ever performance from Computacenter Germany since acquisition with growth across both product and services • Signific
Slide 4: Financial Review – Tony Conophy
Financial Review – Tony Conophy Computacenter (UK) Ltd 3
Slide 5: A glossary
A glossary • Adjusted results – PBT and EPS are adjusted for exceptional items (in 2006) and amortisation on acquired intangibles • Customer-specific financing (“CSF”) – Finance costs for CSF are charged after operating profit for statutory purposes – Management consider these costs to be contract s
Slide 6: Group – profit and loss account
Group – profit and loss account Growth Like-for-Like Existing Acquired FY 2007 FY 2006 Growth 07v06 07v06 £m £m £m £m % % Revenues 2,320.8 58.4 2,379.1 2,269.9 4.8% 2.2% Gross Profit 312.9 12.9 325.8 295.5 10.3% 5.9% 13.5% 22.1% 13.7% 13.0% 0.7% 0.5% Other Operating Expenses (270.6) (11.5) (282.1) (
Slide 7: Group tax charge
Group tax charge FY 2007 FY 2006 £m £m Accounting profit before tax 42.1 32.9 At the UK standard rate of corporation tax of 30% (2006: 30%) 12.6 9.9 Non-deductible expenses (incl share based payments) 1.1 0.9 Losses of overseas undertakings 1.2 4.0 Higher tax on overseas earnings 0.9 0.0 Changes in
Slide 8: UK – profit and loss account
UK – profit and loss account Growth Like-for-Like Existing Acquired FY 2007 FY 2006 Growth 07v06 07v06 £m £m £m £m % % Revenues 1,298.9 58.4 1,357.3 1,281.5 5.9% 1.4% Gross Profit 184.3 12.9 197.2 181.9 8.4% 1.3% 14.2% 22.1% 14.5% 14.2% 0.3% (0.0%) Other Operating Expenses (151.3) (11.5) (162.7) (14
Slide 9: Germany – profit and loss account
Germany – profit and loss account Growth FY 2007 FY 2006 07v06 £m £m % Revenues 708.6 654.7 8.2% Gross Profit 94.2 83.4 12.9% 13.3% 12.7% Other Operating Expenses (83.1) (80.6) 3.2% Finance costs on CSF (0.7) (0.3) 167.2% (11.7%) (12.3%) Adjusted Operating Profit 10.4 2.6 303.9% 1.5% 0.4% Headcount
Slide 10: France – profit and loss account
France – profit and loss account Growth FY 2007 FY 2006 07v06 £m £m % Revenues 285.7 307.3 (7.0%) Gross Profit 31.5 27.7 13.7% 11.0% 9.0% Other Operating Expenses (33.3) (34.2) (2.8%) (11.6%) (11.1%) Operating Profit (1.8) (6.5) (73.0%) (0.6%) (2.1%) Headcount *: Direct 615 579 6.4% Indirect 361 429
Slide 11: Group – revenue by segment
Group – revenue by segment Growth Like-for-Like FY 2007 FY 2006 Growth 07v06 07v06 £m £m % % Product 1,774.2 1,735.2 2.2% 1.6% Professional services 158.5 128.9 23.0% 5.9% Support and managed services 446.5 405.8 10.0% 3.7% Services 605.0 534.7 13.1% 4.2% Total group 2,379.1 2,269.9 4.8% 2.2% Comput
Slide 12: Group – cash from operations
Group – cash from operations Growth FY 2007 FY 2006 07v06 £m £m % Operating profit 43.1 28.5 14.6 Depreciation 27.1 14.6 12.5 Amortisation 3.5 1.9 1.6 Share based payment 2.7 1.4 1.2 Other non-current asset impairment & disposals 0.3 3.0 (2.7) (Increase)/decrease in inventories (8.7) 4.6 (13.3) Incr
Slide 13: Group – summary cash flow
Group – summary cash flow FY 2007 FY 2006 Diff £m £m £m Cash generated from operations 46.3 25.6 20.7 Income taxes paid (13.9) (12.0) (1.9) Net cash flows from operating activities 32.5 13.6 18.9 Net cash flows from investing activities (42.6) (3.0) (39.6) Net cash flows from financing activities (4
Slide 14: Group – balance sheet
Group – balance sheet Dec 07 Dec 06 Diff £m £m £m Non-current assets Property, plant and equipment 116.4 84.9 31.6 Goodwill & Intangibles 45.2 9.9 35.2 Deferred income tax asset 8.2 6.2 2.0 169.8 101.0 68.8 Current assets Inventories 110.5 94.6 15.9 Trade & other receivables 454.2 427.4 26.7 Prepaym
Slide 15: Operational Review – Mike Norris
Operational Review – Mike Norris Computacenter (UK) Ltd 14
Slide 16: Group Revenue Split
Group Revenue Split 2005 revenue by type 2006 revenue by type 2007 revenue by type 23% 24% 26% 32% 31% 37% 5% 5% 4% 10% 11% 12% 25% 28% 27% Personal Systems Network, Server & Storage Personal Systems Network, Server & Storage Personal Systems Network, Server & Storage Software 3rd Party Services Sof
Slide 17: Group Contract Base
Group Contract Base 450.0 £M 400.0 350.0 300.0 250.0 200.0 150.0 100.0 50.0 - Feb-05 Feb-06 Feb-07 Oct-07 Dec-04 Apr-05 Jun-05 Oct-05 Dec-05 Apr-06 Jun-06 Oct-06 Dec-06 Apr-07 Jun-07 Dec-07 Aug-05 Aug-06 Aug-07 UK UK Acquired Germany France Belux Computacenter (UK) Ltd 16
Slide 18: UK Revenue Split
UK Revenue Split 2005 revenue by type 2006 revenue by type 2007 revenue by type 21% 22% 23% 32% 31% 37% 6% 5% 4% 11% 12% 13% 26% 28% 28% Personal Systems Network, Server & Storage Personal Systems Network, Server & Storage Personal Systems Network, Server & Storage Software 3rd Party Services Softwa
Slide 19: UK Services Highlights
UK Services Highlights • As predicted, a challenging year • Strong recovery in H2 • Annual growth in contract base • Greater use of shared facilities, tools and processes • New BT contract for 5 years • Successful acquisition of Digica and Allnet • Growth in datacentre skills and revenue Computacent
Slide 20: UK Contract Base
100 120 140 160 180 200 £M220 Dec-04 Feb-05 Computacenter (UK) Ltd Like for like Acquisitions Apr-05 Jun-05 Aug-05 Oct-05 Dec-05 Feb-06 Apr-06 Jun-06 Aug-06 Oct-06 UK Contract Base Dec-06 Feb-07 Apr-07 Jun-07 Aug-07 Oct-07 Dec-07 19 BT product
Slide 21: UK Product Highlights
UK Product Highlights • Product growth in Networking, Server and Storage • Growth in total end user sales and decline in trade distribution revenue • Success from our continuing investment in Software Services with an 18.7% growth • Improved e-commerce systems should enable further cost reductions •
Slide 22: UK Vendor Share
100% 150% 200% 0% 50% (50%) EMC (14.2%) Computacenter (UK) Ltd HP (12.9%) Cisco (12.6%) Toshiba (11.8%) Lenovo (2.7%) Sun 11.8% UK Vendor Share IBM 15.3% Symantec 30.1% Microsoft 33.2% Dell 171.4% 21
Slide 23: UK Vendor Share – V2
0% 10% 20% 30% 40% (20%) (10%) EMC (14.2%) Computacenter (UK) Ltd HP (12.9%) excluding Dell Cisco (12.6%) Toshiba (11.8%) Lenovo (2.7%) Sun 11.8% IBM 15.3% UK Vendor Share – V2 FSC 20.2% Symantec 30.1% Microsoft 33.2% 22
Slide 24: Germany Revenue Split
Germany Revenue Split 2005 revenue by type 2006 revenue by type 2007 revenue by type 19% 20% 28% 34% 34% 35% 2% 33% 31% 5% 5% 9% 28% 9% 9% Personal Systems Network, Server & Storage Personal Systems Network, Server & Storage Personal Systems Network, Server & Storage Software 3rd Party Services Soft
Slide 25: Germany Highlights
Germany Highlights • Record year for our German business • Good revenue growth of 8.2% • Weaker like for like growth in H2 due only to extraordinary H2 2006 • Substantial progress, particularly in Managed Services, Networking and Datacentre • Material profit improvement helped by turnaround in loss
Slide 26: Germany Contract Base
- 50 100 150 200 €M250 Dec-04 Computacenter (UK) Ltd Mar-05 Jun-05 Sep-05 Dec-05 Mar-06 Jun-06 Sep-06 Dec-06 Mar-07 Germany Contract Base Jun-07 Sep-07 Dec-07 25
Slide 27: Germany Vendor Share
0% 10% 20% 30% 40% 50% 60% (40%) (30%) (20%) (10%) EMC (32.1%) Computacenter (UK) Ltd Cisco (13.6%) Microsoft (10.9%) IBM (2.1%) HP (1.2%) SUN 2.7% Net App 27.8% Germany Vendor Share FSC 36.0% Lenovo 47.6% Samsung 48.3% 26
Slide 28: France Revenue Split
France Revenue Split 2005 revenue by type 2006 revenue by type 2007 revenue by type 12% 12% 14% 3% 4% 4% 11% 13% 15% 54% 57% 56% 17% 14% 14% Personal Systems Network, Server & Storage Personal Systems Network, Server & Storage Personal Systems Network, Server & Storage Software 3rd Party Services So
Slide 29: French Highlights
French Highlights • Fundamental improvement in performance • Operating losses reduced by 73% • Reduction in low margin product sales • Increase in Services sales of 7.1% • Steady contract base growth with good new contract wins • Operating costs down by 4.2% • Broadening the customer base is now ess
Slide 30: France Contract Base
0 5 10 15 20 25 30 €M35 Dec-04 Computacenter (UK) Ltd Mar-05 Jun-05 Sep-05 Dec-05 Mar-06 Jun-06 Sep-06 Dec-06 France Contract Base Mar-07 Jun-07 Sep-07 Dec-07 29
Slide 31: France Vendor Share
0% 10% 20% 30% 40% 50% (30%) (20%) (10%) Samsung (17.8%) Computacenter (UK) Ltd HP (16.0%) Xerox (4.5%) NEC (1.9%) Acer (1.0%) Dell 3.7% Epson 6.4% France Vendor Share Lenovo 12.1% Microsoft 33.3% IBM 39.9% 30
Slide 32: 2007 Financial Highlights
2007 Financial Highlights • Group revenues up 4.8% to £2.38 billion (2006: £2.27 billion) • Adjusted* profit before tax up 12.3% to £42.7 million (2006: £38.0 million) • Adjusted* diluted earnings per share up 34.1% to 18.5p (2006: 13.8p) • Final dividend of 5.5p per share, total dividend 8.0p (2006
Slide 33: Future Prospects
Future Prospects • Not possible to draw meaningful conclusion until end Q1 • No obvious sign of negative effects on market conditions due to credit crisis • Strong UK contract base growth in H2 will help 2008 • Progress throughout the course of 2007 in Germany and France • The strengthening of our s
Slide 34: Preliminary Results 2007
Preliminary Results 2007 Date: 11 March, 2008 Location: Speaker: