Softcat Plc · LSE:SCT
Softcat — FY2019 Earnings Presentation
15 slides from Softcat's earnings presentation, Oct 23, 2019
Slide 1: Results for the year ended 31 July 2019
$Softcat RESULTS FOR THE YEAR ENDED 31 JULY 2019 Graeme Watt, CEO Graham Charlton, CFO 23 October 2019
Slide 2: Who we are
Who we are LEADING IT INFRASTRUCTURE SOLUTIONS PROVIDER 1,330 £992m £84.5m Employees at 31 July 2019 FY19 revenue FY19 operating profit . fe) 12,300 £21im 92% Customers in FY19 FY19 gross profit FY19 cash conversion 7 oi a 20 O ob Ge petemc GQ BE NUTANDC OC nnescni sopHos \Veeam a a = 7 vendors vate
Slide 3: 2019 summary results
2019 summary results Strong growth and profitability e Gross profit up 20.5% to £211.1m e Operating profit up 24.3% to £84.5m e Revenue* up 24.4% to £991.8m ° Gross invoiced income* up 30.7% to £1.4bn ¢ Gross profit per customer up by 17.0% e 400 new customers added in the period, up 3.4% e 14 conse
Slide 4: Business update
Business update (softcat J eas WE AREA LEADING PROVIDER OF TECHNOLOGY SOLUTIONS AND SERVICES Find out why we do what we do IT PRIORITIES. IT intenigence cyber security eo) digital workspace e Market conditions remained strong in 2019, with structural growth driven by evolving cloud-compute models, d
Slide 5: Strategy update and progress
Strategy update and progress SELL MORE TO EXISTING ACQUIRE MORE CUSTOMERS CUSTOMERS e Customer numbers up 400 (+3%) e Strong growth from existing customer base; gross profit from existing customers up 21%, accounting for 95% of total e Gross profit from new customers up 16% on prior period ¢ Growth
Slide 6: 2019 Financial Review
$Softcat 2019 FINANCIAL REVIEW Graham Charlton, CFO Results for the year ended 31 July 2019 6
Slide 7: Summary income statement
Summary income statement £m FY19 FY18 Growth . Strong revenue and gross profit growth reflect successful Revenue 991.8 797.2 24.4% execution of strategy and further market share gains ¢ Growth once again driven by both increased GP per customer and a i growth in customer numbers Gross profit 211.1 1
Slide 8: Impact of IFRS on Revenue
Impact of IFRS 15 on Revenue £m FY19 FY18 Growth Gross Invoiced Income 1,414.1 1,081.7 30.7% IFRS 15 Revenue Adjustments (422.3) (284.5) (48.4%) Revenue 991.8 797.2 24.4% £m FY19 FY18 Growth Software 788.9 563.7 40.0% Hardware 453.0 366.9 23.5% Services 172.2 1511 14.0% Gross Invoiced Income 1,414.1
Slide 9: 1,100 ,300 1,500 1,700 1,900
250 230 210 190 170 150 130 110 90 70 50 500 700 900 1,100 1,300 1,500 1,700 1,900
Slide 10: Customer numbers and gross profit per customer
14,000 £20k £18k 12,000 £16k 10,000 £14k £12k 8,000 £10k 6,000 £8k 4,000 £6k £4k 2,000 £2k - - FY07 FY08 FY09 FY10 FY11 FY12 FY13 FY14 FY15 FY16 FY17 FY18 FY19 Customer Numbers GP per customer
Slide 11: Cash flow
Cash flow £m FY19 FY18 Operating profit 84.5 68.0 ‘Depreciation andamortisation = (ss Net capital expenditure (2.3) (1.1) “Movements in working capital = 74) (40) othe —S Eo cape eae before tax, 779 66.5 “As %of operating profit. == CS 92% 98% ‘Incometaxespaid = sts*~S~*«TSS)SCs«CTOS) Finance income
Slide 12: Dividend
Dividend FY19 FY18 Interim 4.5p 3.3p Final 10.4p 8.8p Special 16.0p 15.19 Total 30.9p 27.2p Basic EPS 34.6p 27.9p Ex Dividend Date 7 November Payment Date 13 December e The Company's dividend policy remains unchanged e The normal dividend constitutes 40-50% of post tax profits e The Company seeks to
Slide 13: Closing remarks
$Softcat CLOSING REMARKS Graeme Watt, CEO ag —_ —_ Results for the year ended 31 July 2019 13
Slide 14: Summary
Summary e Our straight-forward strategy remains unchanged and continues to serve us well e Market conditions were again strong in 2019 and we think structural growth drivers will continue in the medium term e Strong growth also reflects further gains in market share e Growth again broad-based with a
Slide 15: Outlook
Outlook e Softcat is in great health and strategically well-positioned e We think the structural drivers for growth in our industry will continue despite current political and economic uncertainty e The Board also remains confident in the Company’s ability to gain market share and targets further gr