Slide 1: 2022 Interim Results
2022 INTERIM RESULTS Half-year results to 30 June 2022 (9 September 2022)
Slide 2: H1 2022 Financial Highlights
H1 2022 FINANCIAL HIGHLIGHTS Group Group adjusted1 Adjusted1 Cash and cash Interim revenue profit before tax diluted EPS equivalents dividend £2.8bn £111.9m 69.8p £193.5m 22.1p • Group revenue increased 16.6 per cent • Adjusted1 diluted earnings per share (EPS) of 69.8 pence (H1 2021: to £2.8 billio
Slide 3: H1 2022 Financial Highlights
H1 2022 FINANCIAL HIGHLIGHTS H1 2018 H1 2019 H1 2020 H1 2021 H1 2022 H1 2022 vs H1 2021 Gross Invoiced Income4 (£m) 2,008.9 2,427.0 2,462.2 3,287.6 3,971.9 20.8% Revenue (restated) (£m) n/a n/a n/a 2,425.1 2,826.7 16.6% Adjusted1 profit before tax (£m) 52.1 53.5 74.6 118.9 111.9 (5.9%) Adjusted1 dil
Slide 4: H1 2022 Operating Highlights
H1 2022 OPERATING HIGHLIGHTS Our strong trading performance over the six months to 30 June 2022 continues to demonstrate the resilience of our business model. Revenue Group increased 16.0 per cent on a constant currency2 basis, however, as we indicated in our Trading Update on 29 April 2022, adjuste
Slide 5: Financial Review
FINANCIAL REVIEW Tony Conophy 9 September 2022 5 l © Computacenter 2022
Slide 6: H1 2022 Group Adjusted Financial Results
H1 2022 GROUP ADJUSTED1 FINANCIAL RESULTS H1 2022 H1 2021 Constant Performance headlines Change £m £m currency2 • Revenue up 16.6 per cent and by 16.0 per cent in constant currency2 • Adjusted1 operating profit down by 6.8 per cent on both a reported and Technology Sourcing 3,219.4 2,581.5 24.7% 23.
Slide 7: H1 2022 Revenue and Adjusted Operating Profit by Segment
H1 2022 REVENUE AND ADJUSTED1 OPERATING PROFIT BY SEGMENT H1 2022 H1 2021 H1 2022 H1 2021 Constant Change £m £m £m/€m/$m £m/€m/$m currency2 Revenue (restated) UK 653.8 703.4 (7.1%) 653.8 703.4 (7.1%) Germany 792.1 741.4 6.8% 941.0 854.2 10.2% France 268.6 270.4 (0.7%) 318.8 311.2 2.4% North America
Slide 8: H1 2022 Group Adjusted Operating Profit Walk
H1 2022 GROUP ADJUSTED1 OPERATING PROFIT WALK (£M) (CONSTANT CURRENCY2) (39.4) (25.6) 13.3 (6.6) (0.0) 50.0 122.5 122.5 114.2 H1 2021 Currency H1 2021 Technology Technology Services Services SG&A H1 2022 EBIT* EBIT* Sourcing Sourcing Volume GP % EBIT* (constant Volume GP % currency2) 1,2 Refer to th
Slide 9: COVID-19 Has Accelerated 2020 From March 2021
COVID-19 HAS ACCELERATED 2020 FROM MARCH 2021 BUT EXCLUDING IT WE ARE STILL GROWING COMFORTABLY (RESULTS PRESENTATION) Estimated Net COVID impact ~£25m £7m £45m Non-COVID ~£30m growth Saved cost Services COVID COVID Net cost Estimated revenue impacted net COVID (externals, specific of Effect travel)
Slide 10: Services Contribution Trend by Half Year
SERVICES CONTRIBUTION TREND BY HALF YEAR 52% 54% 56% 51% Half 2 Half 1 48% ~45% 49% 46% 44% 2018 2019 2020 2021 2022 10 l © Computacenter 2021
Slide 11: H1 2022 Group Adjusted Operating Profit Walk
H1 2022 GROUP ADJUSTED1 OPERATING PROFIT WALK (£M) (CONSTANT CURRENCY2) (39.4) (25.6) 13.3 (6.6) (0.0) 50.0 Margin mix (new business) Covid unwind (travel / sickness) Growth initiative costs in Germany 122.5 122.5 Professional Services pipeline 114.2 delay in UK Excess capacity in our French acquisi
Slide 12: H1 2022 Closing Adjusted Net Funds/(Debt)
H1 2022 CLOSING ADJUSTED NET FUNDS/ • Cash and cash equivalents have increased by £35.0 million since (DEBT)3 30 June 2021 and decreased by £79.7 million since 31 December 2021 to £193.5 million at 30 June 2022. • Adjusted net funds3 have increased £m by £37.5 million since 30 June 2021 and decrease
Slide 13: H1 2022 Cash Flow Since December 2021
H1 2022 CASH FLOW SINCE DECEMBER 2021 (£M) • Free cash outflow of circa £37 million (H1 2021: £45 million outflow) including lease liabilities (see below). • During the period, net operating cash outflows 26 from working capital, including movement in 108 provisions were £122.4 million (H1 2021: £14
Slide 14: H1 2022 Net Revenue Strong
H1 2022 NET REVENUE STRONG (AS ADJUSTED) • Adjusted1 operating profit decreased from 3.9 per cent of gross invoiced Adjusted1 operating profit margin - Gross v Net income in H1 2021 to 2.9 per cent in 14.0% H1 2022, similar to levels seen in H1 2020. Adjusted1 operating profit 12.0% margin percentag
Slide 15: H1 2022 Financial Returns Strong
H1 2022 FINANCIAL RETURNS STRONG Return on capital employed* Return on capital 52.2% employed has 46.7% decreased as adjusted1 42.6% operating profit decreased from £122.5 31.1% million in H1 2021 to £114.2 million in H1 21.5% 2022 with capital 18.3% 16.8% employed increasing 14.6% 12.0% from £569.1
Slide 16: 2022 Modelling Considerations
2022 MODELLING CONSIDERATIONS Dividends Capital expenditure Typically, capex is circa £25 - £35 million per annum with approximately 50 per cent run-rate The Board recognises the importance of dividends to shareholders and the Group prides itself on a capex, and 50 per cent discretionary (e.g. inves
Slide 17: 2022 Tax Modelling Considerations
2022 TAX MODELLING CONSIDERATIONS Calculated ETR The adjusted1 tax charge for the period was £31.2 million (H1 2021: £34.0 million), on an adjusted1 profit before tax for the period of £111.9 million (H1 2021: £118.9 million). The effective tax rate (ETR) was therefore 27.9 per cent (H1 2021: 28.6 p
Slide 18: Operating Review
OPERATING REVIEW Mike Norris 9 September 2022 18 l © Computacenter 2022
Slide 19: We Will Continue to Invest
WE WILL CONTINUE TO INVEST NEW 2022 INITIATIVES Alpharetta, Professional Kerpen, Germany Services request 1.5m kWh solar United States, Integration automation installation system Center upgrade IT Service management New CRM New product systems system order quotation replacement (CPQ) system 400 new
Slide 20: Why BITS & Computacenter?
WHY BITS & COMPUTACENTER? THIS ISN’T ABOUT CONSOLIDATION / COST SAVINGS What BITS brings to CC: What CC brings to BITS: Large customers Vendor scale & credibility Great team Balance sheet Scales key Midwest region Best International VAR Straightforward model Largest Services VAR Buffalo Grove Integr
Slide 21: Computacenter North America – 2023
COMPUTACENTER NORTH AMERICA – 2023 WITH $3bn+ $200m+ 1,700 40+ SALES OPERATIONS IN UNITED STATES & CANADA SERVICE CENTER IN MEXICO CITY TOTAL GROSS PEOPLE PODIUM CUSTOMERS SERVICES REVENUE INVOICED INCOME • $250m+ revenue Canada Sales & Operations • 100 people • US$120m revenue • One of leading • 10
Slide 22: Leading the Growth: Services Contract Base
LEADING THE GROWTH The French and German results show new wins offsetting losses or volume TO LEAD WITH AND GROW OUR SERVICES BUSINESS reductions on existing contracts. The UK and International results have 800 benefited from a significant new contract win in each jurisdiction 700 during 2021. 600 H
Slide 23: Driving Efficiency
DRIVING EFFICIENCY Group Overall Group Services margins TO IMPROVE OUR SERVICES PRODUCTIVITY decreased by 335 basis points during the period. We have seen increasing AND ENHANCE OUR COMPETITIVENESS costs and lower utilisation as we exit the Covid-19 pandemic. In addition, we UK Germany France have c
Slide 24: At the Heart of Our Business
AT THE HEART OF OUR BUSINESS GROUP Our customers with over £1 million of contribution TO RETAIN AND MAXIMISE THE RELATIONSHIP are a strategic priority for Group performance. WITH OUR CUSTOMERS OVER THE LONG TERM France North America 155 165 165 116 131 34 32 30 17 19 15 15 12 12 10 2018 2019 2020 20
Slide 25: H1 2022 United Kingdom
Share of H1 2022 Revenue Profile H1 2022 UNITED KINGDOM OPERATIONAL HIGHLIGHTS • The UK Technology Sourcing business saw a significant reduction in revenue, as the demand 17% for workplace rollouts declined. The UK saw pleasing growth in higher-margin data center business, although the volumes were
Slide 26: H1 2022 Germany
Share of H1 2022 Revenue Profile H1 2022 GERMANY OPERATIONAL HIGHLIGHTS • Technology Sourcing revenue saw strong growth as the business successfully increased its focus on the workplace market. The rapidly increased volumes helped to offset business lines such as data center and networking, which ar
Slide 27: H1 2022 France
Share of H1 2022 Revenue Profile H1 2022 FRANCE OPERATIONAL HIGHLIGHTS • The French Technology Sourcing revenue increased, as demand returned in the period from 25% some major customers. Our French public sector business remains an important contributor overall, and a key part of our Technology Sour
Slide 28: H1 2022 North America
Share of H1 2022 Revenue Profile H1 2022 NORTH AMERICA 5% OPERATIONAL HIGHLIGHTS 1% • The North American Technology Sourcing business saw revenues surge. The growth was driven by increased spending by hyperscale customers, growth in sales to international customers with operations in the United Stat
Slide 29: H1 2022 International
Share of H1 2022 Revenue Profile H1 2022 INTERNATIONAL OPERATIONAL HIGHLIGHTS • Significant revenue increases were seen in Switzerland and Belgium, with revenue in 34% Netherlands nearly doubling. These entities, with a different customer mix to our larger during the Covid-19 crisis and the results
Slide 30: Outlook
OUTLOOK ‘As we have predicted and announced on multiple occasions, profitability for Computacenter was down in the first half of 2022 compared to the same period last year, however, we remain on track to deliver our stated expectations of profit growth for the year as a whole. With the exception of
Slide 31: Appendix
APPENDIX 31 l © Computacenter 2022
Slide 32: Product Supply Shortages
PRODUCT SUPPLY SHORTAGES Supply chain constraints remain forefront of our customers’ minds and their planning. Whilst product availability varies by vendor and product line, product shortages have materially affected the supply of key networking equipment for our customers throughout the year, with
Slide 33: Russian Invasion of Ukraine
RUSSIAN INVASION OF UKRAINE We remain extremely saddened and concerned by the war in Ukraine and offer our deepest sympathies and support to the Ukrainian people. Whilst our business in Russia was extremely limited, we have completely ceased our activities there as the international customers we sup
Slide 34: COVID-19 Update
COVID-19 UPDATE As the public health challenges of Covid-19 continue to reduce, we have retained the flexible working practices we introduced during the pandemic. The vast majority of our employees now split their time between home and office, with those employees required on customer sites now able
Slide 35: IASB Interpretation Committee – Agent vs Principal
IASB INTERPRETATION COMMITTEE – AGENT VS PRINCIPAL Following a recently approved interpretation of the revenue accounting Further information on this change, including the retrospective standard by the International Accounting Standards Board, we, and a restatement of the financial statements, and t
Slide 36: H1 2022 Gross Invoiced Income
H1 2022 GROSS INVOICED INCOME4 H1 2022 H1 2021 H1 2022 H1 2021 Constant TECHNOLOGY SOURCING £m £m Change £m/€m/$m £m/€m/$m currency2 Gross invoiced income UK 937.8 799.3 17.3% 937.8 799.3 17.3% Germany 668.1 618.7 8.0% 793.7 712.8 11.3% France 255.6 226.7 12.7% 303.0 260.9 16.1% North America 1,277.
Slide 37: H1 2022 Revenue by Segment
H1 2022 REVENUE BY SEGMENT H1 2021 H1 2021 H1 2022 H1 2022 Constant REVENUE restated Change restated currency2 £m £m £m/€m/$m £m/€m/$m Technology Sourcing revenue UK 421.9 471.2 (10.5%) 421.9 471.2 (10.5%) Germany 464.1 430.4 7.8% 551.5 496.0 11.2% France 183.1 184.0 (0.5%) 217.1 211.7 2.6% North Am
Slide 38: H1 2022 Inventory by Segment
H1 2022 INVENTORY BY SEGMENT 30 Jun 2022 30 Jun 2021 30 Jun 2022 30 Jun 2021 Constant 31 Dec 2021 31 Dec 2021 Constant Change Change £m £m £m/€m/$m £m/€m/$m currency2 £m £m/€m/$m currency2 Inventory UK 35.5 19.8 79.4% 35.5 19.8 79.4% 26.2 35.8% 26.2 35.8% Germany 126.8 59.6 112.8% 147.1 69.4 111.9%
Slide 39: H1 2022 Reconciliation to Adjusted Results
H1 2022 RECONCILIATION TO ADJUSTED1 RESULTS H1 2021 Amortisation H1 2022 H1 2022 Adjusted1 of acquired Adjusted1 Change results restated intangibles results results £m £m £m £m % Revenue 2,826.7 - 3,971.9 3,287.6 20.8% Cost of sales (2,401.8) - (3,547.0) (2,862.3) (23.9%) Gross profit 424.9 - 424.9
Slide 40: H1 2022 Exceptional and Other Adjusting Items
H1 2022 EXCEPTIONAL AND OTHER ADJUSTING ITEMS The net loss from exceptional and other adjusting items in the period was £2.9 million (H1 2021: loss of £2.8 million). Excluding the tax items noted below, which resulted in a gain of £1.2 million (H1 2021: gain of £0.9 million), the profit before tax i
Slide 41: Central Corporate Costs
CENTRAL CORPORATE COSTS H1 2022 H1 2021 Change Analysis of Central Corporate Costs £m £m £m Cost of the plc Board, related public company costs and Group Exec cost base (Segment unaligned) 4.2 4.1 0.1 Shared-based payments (Group Exec Segment unaligned) 1.9 1.4 0.5 Strategic corporate initiatives 5.
Slide 42: Sources of Revenue: Percentage Change by Revenue Type
SOURCES OF REVENUE: PERCENTAGE CHANGE BY REVENUE TYPE Group UK 1.4% (0.1%) (3.3%) (7.1%) (10.5%) 20.7% 19.1% 16.6% 16.0% 12.3% 13.3% 6.6% 8.1% 4.8% 3.1% Technology Professional Managed Services Total Services Total Technology Professional Managed Services Total Services Total Sourcing Services Sourc
Slide 43: Sources of Revenue: Percentage Change by Revenue Type
SOURCES OF REVENUE: PERCENTAGE CHANGE BY REVENUE TYPE International North America 64.7% 68.4% 74.1% 69.1% 58.3% 62.3% 57.9% 58.9% 47.7% 51.7% 48.3% 38.2% 40.2% 42.5% 17.5% 17.5% 8.4% 9.1% 9.4% 10.0% Technology Professional Managed Services Total Services Total Technology Professional Managed Total S
Slide 44: UK Adjusted Operating Profit Walk
UK ADJUSTED1 OPERATING PROFIT WALK (£M) (0.1) (8.1) (7.4) (3.9) 12.8 51.7 45.0 H1 2021 Technology Technology Services Services SG&A H1 2022 EBIT* Sourcing Sourcing Volume GP % EBIT* Volume GP % * EBIT refers to adjusted1 operating profit 44 l © Computacenter 2022
Slide 45: Germany Adjusted Operating Profit Walk
GERMANY ADJUSTED1 OPERATING PROFIT WALK (£M) CONSTANT CURRENCY2 (11.1) (6.3) (1.5) (0.9) 6.6 7.5 61.1 59.6 55.4 H1 2021 Currency H1 2021 Technology Technology Services Services SG&A H1 2022 EBIT* EBIT* Sourcing Sourcing Volume GP % EBIT* (constant Volume GP % currency2) 1,2 Refer to the glossary for
Slide 46: France Adjusted Operating Profit Walk
FRANCE ADJUSTED1 OPERATING PROFIT WALK (£M) CONSTANT CURRENCY2 Services Technology GP % Sourcing GP % (4.0) 0.2 H1 2021 Technology H1 2021 Currency SG&A EBIT* Sourcing EBIT* (constant Volume currency2) 0.5 Services H1 2022 (2.0) (1.9) Volume EBIT* 3.5 2.1 0.1 0.6 46 l © Computacenter 2022 * EBIT ref
Slide 47: North America Adjusted Operating Profit Walk
NORTH AMERICA ADJUSTED1 OPERATING PROFIT WALK (£M) CONSTANT CURRENCY2 (47.3) (1.2) (0.3) 45.4 1.4 3.6 18.7 20.1 20.3 H1 2021 Currency H1 2021 Technology Technology Services Services SG&A H1 2022 EBIT* EBIT* Sourcing Sourcing Volume GP % EBIT* (constant Volume GP % currency2) 47 l © Computacenter 202
Slide 48: International Adjusted Operating Profit Walk
INTERNATIONAL ADJUSTED1 OPERATING PROFIT WALK (£M) CONSTANT CURRENCY2 (3.1) 0.6 (2.2) 1.2 (0.0) 4.0 4.6 4.1 4.1 H1 2021 Currency H1 2021 Technology Technology Services Services SG&A H1 2022 EBIT* EBIT* Sourcing Sourcing Volume GP % EBIT* (constant Volume GP % currency2) 48 l © Computacenter 2022 * E
Slide 49: Net Funds
NET FUNDS • One of the Group’s primary measures when managing the business is adjusted net funds3. Jun 22 Jun 21 Change • Adjusted net funds3 have increased Adjusted net funds 3 by £37.5 million since 30 June £m £m £m 2021. Cash and Cash Equivalents 193.5 158.5 35.0 • Operating cashflow inflow for H
Slide 50: Group Cash Flow
GROUP CASH FLOW H1 2022 H1 2021 £m £m Profit before tax 107.8 115.2 Net finance cost/(income) 2.3 3.6 • Operating net cash inflow of £8.1 million Depreciation and amortisation 18.3 19.7 Depreciation of right-of-use assets 26.2 26.3 during the period (H1 2021: inflow of £1.5 Share-based payments 5.2
Slide 51: Group Balance Sheet
GROUP BALANCE SHEET H1 2022 £m H1 2021 £m Change £m Non-current assets Property, plant and equipment 88.3 101.2 (12.9) Right-of-use assets 138.5 141.9 (3.4) Intangible assets 296.5 272.8 23.7 Investment in associates 0.1 0.1 - Deferred income tax assets 22.2 18.9 3.3 Prepayments 16.5 16.6 (0.1) 562.
Slide 52: Glossary
GLOSSARY 1. Adjusted measures 2. Constant currency The Group uses a number of non-Generally Accepted Accounting Practice (non- We evaluate the long-term performance and trends within our strategic priorities GAAP) financial measures in addition to those reported in accordance with IFRS. on a constan
Slide 53: Glossary (continued)
GLOSSARY (CONTINUED) 3. Net funds Adjusted net funds or adjusted net debt includes cash and cash equivalents, other short or other long-term borrowings and current asset investments. Following the adoption of IFRS 16 this measure excludes all lease liabilities. A table reconciling this measure, incl
Slide 54: 2022 Interim Results
2022 INTERIM RESULTS Full-year results to 30 June 2022 (9 September 2022)