Slide 1: Full Year Results 2010 and Agenda
Full Year Results 2010 10 March 2011 © Computacenter 2011 Agenda • Highlights Mike Norris • Financial review Tony Conophy • Operational review Mike Norris • Outlook Mike Norris • Summary and Q&A © Computacenter 2011 2
Slide 2: 2010 Financial highlights
2010 Financial highlights • Group revenues increased 6.9% to £2.68 billion • Ongoing Group revenues up 10.7% • Adjusted profit before tax increased 21.8% to £66.1 million (2009: £54.2 million) • Adjusted diluted EPS growth of 19.1% to 33.0 pence (2009: 27.7 pence) • Adjusted EPS growth >20% CAGR ove
Slide 3: 2010: Group financial results
Financial Review – Tony Conophy © Computacenter 2011 5 2010: Group financial results FY 2010 FY 2009 Change £m £m Ongoing operations Revenue 2,676.5 2,418.6 10.7% Excludes prior year impact Adjusted gross profit 363.7 341.7 6.4% of Trade distribution 13.6% 14.1% (3.8%) business Other operating expen
Slide 4: 2010: Revenue and operating profit by segment
2010: Revenue and operating profit by segment FY 2010 FY 2009 Change £m £m % Revenue • Organic revenue UK excl CCD 1,265.4 1,142.3 10.8% Germany 1,005.8 930.7 8.1% growth in all countries France 359.6 319.4 12.6% and across all sources Benelux 45.6 26.2 74.0% of revenue Total Group excl CCD 2,676.5
Slide 5: Group PBT and UK EBIT bridges
Group PBT – driven by strong organic product and services growth £m -2 -2 -9 10 -7 11 -6 -4 -1 1 3 18 66 Organic Organic Organic Acquisitions Disposals Other 54 Product Services SG&A Industrial- currency Interest Volume Volume Margin Margin Margin Margin isation Other SG&A SG&A 2009 2010 © Computace
Slide 6: Germany and France EBIT bridges
Germany EBIT – Strong services recovery from H1 – Overall year: strong organic product growth €m 1 -2 -7 2 -4 8 5 Organic Organic Organic 24 22 Product Services SG&A Acquisitions Volume Volume Margin Margin Margin Other SG&A 2009 2010 © Computacenter 2011 11 France EBIT – moves into positive territo
Slide 7: Net funds improved in the year
Net funds improved in the year… Dec 10 Dec 09 Change • Cash growth is enhanced despite strong £m £m £m product revenue performance in the year by the following factors: Cash and cash equivalents 155.9 105.0 51.0 Own loans and leases (0.0) (3.7) 3.7 Factor financing (16.5) (14.8) (1.6) • the UK incre
Slide 8: Positive cash flows; improving margin and returns
…which continues the record of positive cash flows Cash flow growth ahead of profit growth Leading to improved cash position 160 140 120 150 100 80 100 60 40 50 20 0 - 2007 2008 2009 2010 (50) Operating cash flow* Free cash flow** (100) 2007 2008 2009 2010 CSF leases and loans Net cash excluding CSF
Slide 9: FY11 modelling considerations
FY11 modelling considerations • No material changes expected Net interest • No material acquisitions or changes to the capital structure during the next 12 months • Dependant on mix in earnings as we utilise losses in European operations Tax • Similar proportion of earnings should result in tax rate
Slide 10: Operating highlights; Contract base – Group
Operating highlights • Revenues improved significantly in all our major geographies • Ongoing group product revenue grew markedly, up 12.5% (14.7% in constant currency) as a result of strong customer demand • Group annual services contract base grew over 7.1% (9.3% in constant currency) © Computacen
Slide 11: Impact from our ERP implementation
Operating highlights • Revenues improved significantly in all our major geographies • Ongoing group product revenue grew markedly, up 12.5% (14.7% in constant currency) as a result of strong customer demand • Group annual services contract base grew over 7.1% (9.3% in constant currency) • Group-wide
Slide 12: Acquisition of Top Info in France
Operating highlights • Revenues improved significantly in all our major geographies • Ongoing group product revenue grew markedly, up 12.5% (14.7% in constant currency) as a result of strong customer demand • Group annual services contract base grew over 7.1% (9.3% in constant currency) • Group-wide
Slide 13: Revenue by type – Group
Operating highlights • Revenues improved significantly in all our major geographies • Ongoing group product revenue grew markedly, up 12.5% (14.7% in constant currency) as a result of strong customer demand • Group annual services contract base grew over 7.1% (9.3% in constant currency) • Group-wide
Slide 14: UK highlights; Contract base – UK
UK highlights • Ongoing revenues increased by 10.8% • Operating profit grew by 14.5% • Service revenue growth of 13.9%, which increased steadily throughout the year and beat the UK market • Growth in contract base driven by new customer wins • Increase in service margin due to better BTO and industr
Slide 15: Revenue by type – UK; Germany highlights
Revenue by type – UK Increase in workplace driven by Windows 7 2008 2009 2010 19% 24% 21% 18% 22% 21% 8% 8% 8% 8% 6% 4% 29% 26% 29% 16% 17% 15% Workplace Third party services Datacenter and networking Professional services Software Support and managed services © Computacenter 2011 29 Germany highlig
Slide 16: Contract base and revenue by type – Germany
Contract base – Germany Growth ahead of market €M 350 300 250 200 150 3yr CAGR = 8.6% 100 50 - Dec-07 Sep-08 Dec-08 Sep-09 Dec-09 Sep-10 Dec-10 Jun-08 Jun-09 Jun-10 Mar-08 Mar-09 Mar-10 © Computacenter 2011 31 Revenue by type – Germany Becom impact and strong recovery in datacenter and networking pr
Slide 17: France highlights; Contract base – France
France highlights • France delivered an operating profit • Strong revenue growth of 16.9% led by product growth of 19.7% • We made a breakthrough in high end enterprise products • Service growth of 4.6% slower than we would like • Erosion of revenue from old maintenance contracts © Computacenter 201
Slide 18: Revenue by type – France; 2010 Financial highlights
Revenue by type – France Strong product recovery and growth in datacenter and networking 2008 2009 2010 9% 14% 11% 6% 47% 47% 6% 6% 43% 6% 4% 4% 16% 19% 19% 16% 12% 17% Workplace Third party services Datacenter and networking Professional services Software Support and managed services © Computacente
Slide 19: Outlook for 2011; Drivers of profit growth
Outlook for 2011 • A year of continuing improvement • ERP depreciation will hold us back until cost savings in 2012 • UK Q1 revenue in 2010 was buoyant with a large one off product contract • Germany has easier comparatives for H1 • France will be aided by acquisition © Computacenter 2011 37 Drivers
Slide 20: Appendix
Full Year Results 2010 10 March 2011 © Computacenter 2011 Appendix © Computacenter 2011
Slide 21: Glossary; reconciliation of adjusted to statutory profit
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 (“CS
Slide 22: Group sources of revenue; UK income statement
Group – sources of revenue Reported In constant currency FY 2010 FY 2009 Change FY 2010 FY 2009 Change £m £m % £m £m % Product revenue Ongoing 1,888.4 1,678.6 12.5% 1,888.4 1,646.3 14.7% Trade Distribution 0.0 84.6 (100.0%) 0.0 84.6 -100.0% Total product revenue 1,888.4 1,763.2 7.1% 1,888.4 1,730.9
Slide 23: Germany and France income statements
Germany – income statement Reported In local currency FY 2010 FY 2009 Change FY 2010 FY 2009 Growth £m £m % €m €m 10 % v 09 Revenue 1,005.8 930.7 8.1% 1,173.1 1,045.1 12.2% Adjusted gross profit 131.5 124.4 5.7% 153.4 139.7 9.8% 13.1% 13.4% (0.3%) 13.1% 13.4% -0.3% Other operating expenses (111.0) (
Slide 24: Adjusted cash flow; Group balance sheet
Adjusted cash flow FY 2010 FY 2009 £m £m Adjusted operating profit 64.4 53.9 Adjustments to reconcile Group adjusted operating profit to net cash inflow s from operating activities Depreciation and amortisation 19.5 17.7 Share-based payment 2.6 2.6 Working capital movements 21.4 65.3 Other adjustmen
Slide 25: 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 - 2007 2008 2009 2010 © Computacenter 2011 49
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