Slide 1: Full Year Results 2011
Full Year Results 2011 Mike Norris 13 March 2012 © Computacenter 2012 1
Slide 2: Track Record
Track Record Mike Norris 13 March 2012 © Computacenter 2012
Slide 3: 2011: continuing our track record
2011: continuing our track record 2007 2008 2009 2010 2011 Turnover (£m) 2,379.1 2,560.1 2,503.2 2,676.5 2,852.3 *Profit before tax (£m) 42.7 43.1 54.2 66.1 74.2 *Diluted EPS (pence) 18.5 21.0 27.7 33.0 37.4 Dividend per share (pence) 8.0 8.2 11.0 13.2 15.0 Contract Base (£m) 403.7 446.4 486.3 531.9
Slide 4: And continuing to generate cash to sustain future growth
And continuing to generate cash .... to sustain future growth Cash Uses of Generation cash Generate profits Dec Dividends £180m £63m 2011 (after tax) Dec Net Exited 2007 Distribution Acquisitions cash* £60m £32m Net debt* £136m S/T improved Capex spend - vendor terms ERP & property -£16m £45m £45m £
Slide 5: Financial Results
Financial Results Tony Conophy 13 March 2012 © Computacenter 2012
Slide 6: 2011: Group financial results
2011: Group financial results FY 2011 FY 2010 Change £m £m Like-for-like 2,736.2 2,676.5 2.2% Acquisitions 116.1 0.0 n/a Total Revenue 2,852.3 2,676.5 6.6% Adjusted gross profit 379.9 345.0 10.1% Adjusted gross profit % 13.3% 12.9% 0.4% Other operating expenses (307.4) (280.6) 9.6% Adjusted operatin
Slide 7: 2011: Results by segment
2011: Results by segment FY 2011 FY 2010 Change Like-for- Like-for- Incl Acquisitions Total Like Like acquisitions £m £m £m £m % % Revenue UK 1,102.2 - 1,102.2 1,265.4 (12.9%) (12.9%) Germany 1,203.1 25.5 1,228.6 1,008.9 19.2% 21.8% France 388.0 90.6 478.6 359.6 7.9% 33.1% Belgium 43.0 - 43.0 42.6 0
Slide 8: Group EBIT Walk
2010 EBIT £m 64 © Computacenter 2012 Supply chain 2 Volume Supply chain 12 GP % Group EBIT Walk Services 8 Volume Services 2011 2 in 2010 that was GP% reported in SG&A in £7m in Service Cogs SG&A 16 Acquisitions 15 Margin Acquisitions 11 SG&A 2011 EBIT 73 8
Slide 9: 2011: reconciliation to statutory results
2011: reconciliation to statutory results FY 2011 FY 2010 Change Exceptional items in operating £m £m % profit net to insignificant level Adjusted profit before tax 74.2 66.1 12.4% £1.0m of acquisition fees offset Amortisation of acq. intangibles (2.0) (0.7) 203.3% by a write back of £0.9m of Ex
Slide 10: Our record of positive cash flows continued...
Our record of positive cash flows continued... Cash balance remained strong in 2011 From strong operating profit conversion (and CSF continued to decrease) into operating cash £M £M 138 108 96 139 137 73 64 73 42 54 86 5 2008 2009 2010 2011 29 23 Operating profit Operating cash flow 49 With strong f
Slide 11: Allowing us to further invest in our business
... Allowing us to further invest in our business Acquisitions of Top Info, HSD and Damax £M 0 1 14 23 Includes £45m (2010: £38m) related to the 33 extended payment terms from a significant vendor 73 25 Includes in excess £15m related to 21 investments in property for RDC and ERP 5 139 137 Dividends
Slide 12: Resulting in a strong record of financial returns
Resulting in a strong record of financial returns Return on capital EBIT margin improvement employed 8.0% 7.0% 6.0% 5.0% 28% 27% Impact of pass through product 4.0% 21% 3.0% 14% 2.0% 1.0% 0.0% 2008 2009 2010 2011 2008 2009 2010 2011 EBIT/Net revenue %** Reported EBIT margin % * * Net revenue is defi
Slide 13: FY12 modelling considerations
FY12 modelling considerations Net interest • No material changes expected • Dependant on mix in earnings as we utilise losses in European operations. As the share of profits generated outside of the UK Tax increased in 2011, adjusted tax rate is lower than normally expected • Tax rate is normally ex
Slide 14: Financial summary
Financial summary Revenue growth outside of the UK Operating profit increased in Europe, operating profit margins maintained in the UK Tax rate lower than usual Continued double digit EPS growth Increased dividend to 15.0p per share Strong cash generation, prior to circa £40 million of i
Slide 15: Appendix
Appendix © Computacenter 2012 15
Slide 16: 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 17: Sources of revenue (1/2)
Sources of revenue (1/2): % change by revenue type % change in revenue % change in revenue, excluding acquisitions Group UK As reported As reported 3.3% Supply Chain Professional Support and -1.7% Total Services Total Turnover Services Managed Services 12.7% -12.9% 8.5% -14.9% 6.7% 6.6% -17.7% 6.2%
Slide 18: Sources of revenue (2/2)
Sources of revenue (2/2): % change by revenue type % change in revenue % change in revenue, excluding acquisitions Germany France As reported As reported 37.1% 48.6% 33.8% 33.1% 42.9% 25.9%23.0% 21.8%19.2% 12.4% 12.5% 13.7%12.0% 8.4% 7.9% 5.1% 4.3% 1.5% 1.5% 5.2% Supply Chain Professional Support an
Slide 19: UK – income statement
UK – income statement FY 2011 FY 2010 Change £m £m % Revenue 1,102.2 1,265.4 (12.9% ) Adjusted gross profit 167.3 177.5 (5.8% ) 15.2% 14.0% 1.1% SG&A (130.0) (134.2) (3.1% ) (11.8%) (10.6%) (1.2%) Adjusted operating profit 37.3 43.3 (14.0% ) 3.4% 3.4% (0.0%) Headcount: * Direct 3,688 3,588 2.8% Indi
Slide 20: UK EBIT Walk
© Computacenter 2012 £m 2010 EBIT 43 Supply chain 16 Volume UK EBIT Walk Supply chain GP % 10 Services 1 Volume Services 3 GP% 4 SG&A 2011 EBIT 37 20
Slide 21: Germany – income statement
Germany – income statement any FY 2011 FY 2010 Change FY 2011 FY 2010 Change £m £m % €m €m % Like-for-like revenue 1,203.1 1,008.9 19.2% 1,386.0 1,176.7 17.8% Acquisitions 25.5 0.0 n/a 29.3 0.0 n/a Revenue 1,228.6 1,008.9 21.8% 1,415.3 1,176.7 20.3% Adjusted gross profit 157.4 128.9 22.0% 181.3 150.
Slide 22: Germany EBIT Walk
£m © Computacenter 2012 2010 EBIT 20 Supply chain 12 Volume Supply chain 8 GP % Services 8 Volume Germany EBIT Walk 2011 Services 1 GP% in 2010 that was reported in SG&A in £7m in Service Cogs 16 SG&A Acquisitions 5 Margin 2 Acquisitions SG&A 2011 EBIT 28 22
Slide 23: France – income statement
France – income statement nce FY 2011 FY 2010 Change FY 2011 FY 2010 Change £m £m % €m €m % Like-for-like revenue 387.9 359.6 7.9% 446.9 419.4 6.5% Acquisitions 90.7 0.0 n/a 104.4 0.0 n/a Revenue 478.6 359.6 33.1% 551.3 419.4 31.4% Adjusted gross profit 50.6 35.2 43.7% 58.3 41.1 41.9% 10.6% 9.8% 0.8
Slide 24: France EBIT Walk
£m 1 2010 EBIT © Computacenter 2012 Supply chain 2 Volume Supply chain 3 GP % Services France EBIT Walk 1 Volume Services 1 GP% 2 SG&A Acquisitions 10 Margin Acquisitions 8 SG&A 6 2011 EBIT 24
Slide 25: Net funds improved in the year
Net funds improved in the year The Group’s primary measure when managing the cash position of the business Dec 11 Dec 10 Change is net funds pre CSF. £m £m £m Cash is broadly flat in the year due to: Cash and cash equivalents 126.8 155.9 (29.1) Profit growth and a low tax rate Own loans and le
Slide 26: Adjusted cash flow
Adjusted cash flow FY 2011 FY 2010 £m £m Adjusted operating profit 72.5 64.4 Adjustments to reconcile Group adjusted operating profit to net cash inflows from operating activities Depreciation and amortisation 20.6 19.5 Share-based payment 2.5 2.6 Working capital movements 0.3 21.4 Other adjustments
Slide 27: Group – balance sheet
Group – balance sheet FY 2011 FY 2010 FY 2009 £m £m £m Non-current assets Property, plant and equipment 98.3 88.9 105.3 Goodwill & Intangibles 104.2 78.5 73.0 PP&E UP : purchase of property for Investments in associates 0.5 0.0 0.0 Deferred income tax asset 15.6 15.6 16.4 the RDC business 218.6 18
Slide 28: Impact from our ERP implementation
Impact from our ERP implementation Amortisation & depreciation increases as our But the long term benefits to the Group countries go live on our new ERP system are significant ....... Germany UK France Introduce a clear control structure for the Computacenter 6 operating model. 5 Lower cost throug