Slide 1: 2021 Full-Year Results
2021 FULL-YEAR RESULTS Full-year results to 31 December 2021 (16 March 2022)
Slide 2: 2021 Financial Highlights
2021 FINANCIAL HIGHLIGHTS Group Group adjusted1 Adjusted1 Cash and cash Proposed final revenue profit before tax diluted EPS equivalents dividend £6.7bn £255.6m 165.6p £273.2m 49.4p • Group revenue increased 23.6 per cent • Proposed final dividend of 49.4 pence (2020: 38.4 pence) for a to £6.7 billi
Slide 3: 2021 Financial Highlights
2021 FINANCIAL HIGHLIGHTS 2017 2018 2019 2020 2021 2021 vs 2020 Revenue (£m) 3,793.4 4,352.6 5,052.8 5,441.3 6,725.8 23.6% Adjusted1 profit before tax (£m) 106.2 118.2 146.3 200.5 255.6 27.5% Adjusted1 diluted EPS (pence) 65.1 75.7 92.5 126.4 165.6 31.0% Dividend per share (pence) 26.1 30.3 10.1 50.
Slide 4: 2021 Operating Highlights
2021 OPERATING HIGHLIGHTS Short Term The results for 2021 exceeded even our own challenging internal targets, as the Company delivered its 17th year of uninterrupted adjusted1 diluted earnings per share growth. This continues to demonstrate the resilience of our business model and reinforces our pos
Slide 5: 2021 Operating Highlights
2021 OPERATING HIGHLIGHTS The UK saw an increase in revenues of 9.9 per cent balanced between Technology Sourcing and Services. Enterprise orders more than offset the decline in workplace as the short-term demand from Covid-19 dissipated. Professional Services revenues saw very strong growth as cust
Slide 6: Financial Review
FINANCIAL REVIEW Tony Conophy 16 March 2022 6 l © Computacenter 2022
Slide 7: 2021 Group Adjusted Financial Results
2021 GROUP ADJUSTED1 FINANCIAL RESULTS Performance headlines 2021 2020 Constant • Revenue up 23.6 per cent and by 26.9 per cent in constant currency2 Change £m £m currency2 • Adjusted1 operating profit up 27.3 per cent and by 31.3 per cent in constant currency2 Technology Sourcing revenue 5,274.9 4,
Slide 8: 2021 Revenue and Adjusted Operating Profit by Segment
2021 REVENUE AND ADJUSTED1 OPERATING PROFIT BY SEGMENT 2021 2020 2021 2020 Constant Change £m £m £m/€m/$m £m/€m/$m currency2 Revenue UK 1,948.6 1,773.4 9.9% 1,948.6 1,773.4 9.9% Germany 2,021.2 1,876.3 7.7% 2,352.5 2,108.2 11.6% France 653.4 672.8 (2.9%) 760.0 753.9 0.8% North America 1,911.6 944.5
Slide 9: 2021 Group Adjusted Operating Profit Walk (£m)
2021 GROUP ADJUSTED1 OPERATING PROFIT WALK (£M) (CONSTANT CURRENCY2) (102.8) (17.3) 8.2 51.3 (6.2) 123.2 262.8 206.4 200.2 2020 Currency 2020 Technology Technology Services Services SG&A 2021 EBIT* EBIT* Sourcing Sourcing Volume GP % EBIT* (constant Volume GP % currency2) 1,2 Refer to the glossary f
Slide 10: 2021 Closing Adjusted Net Funds/(Debt)
2021 CLOSING ADJUSTED NET FUNDS/ • Cash and cash equivalents have decreased by £36.6 million since (DEBT)3 31 December 2020 to £273.2 million at 31 December 2021. • Adjusted net funds3 have increased £m by £52.8 million since 31 December 2020 to £241.4 million at 31 December 100 2021. • FusionStorm
Slide 11: 2021 Cash Flow Since December 2020 (£m)
2021 CASH FLOW SINCE DECEMBER 2020 (£M) • Free cash inflow of circa £142 million (2020: £132 million inflow) including lease liabilities (see below). • During the year, net operating cash outflows from working capital, including movement in provisions were £80.0 million (2020: £26.4 59 million). 248
Slide 12: 2021 Net Revenue Strong
2021 NET REVENUE STRONG (AS ADJUSTED) • Adjusted1 operating profit increased from 3.8 per cent of revenue in 2020 Adjusted1 operating profit margin - Gross v Net to 3.9 per cent in 2021. Adjusted1 operating profit margin percentage 14.0% is always diluted by Technology 12.0% Sourcing revenues, which
Slide 13: 2021 Financial Returns Strong
2021 FINANCIAL RETURNS STRONG Return on capital employed* 52.2% Return on capital employed has 46.7% increased as adjusted1 42.6% operating profit 36.0% increased from £206.4 31.1% million in 2020 to £262.8 million in 2021 21.5% with capital employed 18.3% increasing from £442.2 13.4% 14.6% million
Slide 14: 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 15: 2022 Tax Modelling Considerations
2022 TAX MODELLING CONSIDERATIONS Calculated ETR 2021 one-off items benefiting tax charge The adjusted1 tax charge for the year was £63.6 million (2020: £54.8 million), on an adjusted1 profit During the second half of the year a number of one-off tax items were processed that before tax for the year
Slide 16: Sustainability
SUSTAINABILITY Climate change initiatives 16 March 2022 16 l © Computacenter 2022
Slide 17: Our Impact on the Environment
OUR IMPACT ON THE ENVIRONMENT 2015 – 2021 25,000 • We have reduced Scope 1 and 2 GHG 20,000 emissions by 79 per cent from 2015 to 2021, despite multiple acquisitions. 15,000 tCO2e 21,230 22,214 19,310 10,000 16,669 16,502 • Scope 1 and 2 GHG emissions fell from 13,856 8,216 tCO2e in 2020 to 5,210 tC
Slide 18: Ongoing Efforts to Reduce Our Carbon Footprint
ONGOING EFFORTS TO REDUCE OUR CARBON FOOTPRINT We generate our own renewable electricity on-site in Hatfield, UK and Kerpen, Germany, and have agreed a further project in Livermore, California: • Hatfield - 6,308 panels installed on our Integration Center generated ~1.8 million kWh in 2021. • Kerpen
Slide 19: Future Plans and Targets
FUTURE PLANS AND TARGETS CARBON NEUTRALITY Computacenter will be We aim to reduce We will continue to increase ambition for 2022 across NET ZERO across emissions from business our sourcing and generation Scopes 1 and 2 Scopes 1, 2 and 3 travel by 35% by 2025 of renewable energy by 2040 from 2019 lev
Slide 20: 2021 The Environment – General Background
2021 THE ENVIRONMENT – GENERAL BACKGROUND • Our Climate Committee, chaired by the Group Finance • Having already eliminated single-use plastic cups and Director, leads our approach to reducing our environmental bottles at Hatfield and Kerpen in 2020, we have continued impact. The Committee debates a
Slide 21: Operating Review
OPERATING REVIEW Mike Norris 16 March 2022 21 l © Computacenter 2022
Slide 22: We Have Invested Heavily in Our Business
WE HAVE INVESTED HEAVILY IN OUR BUSINESS 2021 INITIATIVES Livermore, Tech upgrades to Hatfield, United United States, European ICs to Kingdom, capacity support Microsoft 1.8m kWh solar expansion (IC2) Autopilot installation Cluj, Romania Bangalore, India Future Talent Professional - 850 people, – 40
Slide 23: 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 Securing
Slide 24: 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 2
Slide 25: Driving Efficiency
DRIVING EFFICIENCY Group Overall Group Services margins TO IMPROVE OUR SERVICES PRODUCTIVITY increased by 60 basis points during the year. The continued reduction of travel AND ENHANCE OUR COMPETITIVENESS costs, lower subcontractor costs and improved Professional Services UK Germany France utilisati
Slide 26: 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 17 116 131 34 15 15 107 32 8 10 12 12 2017 2018 2019 2020 2
Slide 27: 2021 United Kingdom
Share of 2021 Revenue Profile 2021 UNITED KINGDOM OPERATIONAL HIGHLIGHTS • Technology Sourcing saw strong revenue growth supporting a number of significant private and 17% public sector customers with their transition to homeworking requirements. Margins slipped slightly as the product mix moved tow
Slide 28: 2021 Germany
Share of 2021 Revenue Profile 2021 GERMANY OPERATIONAL HIGHLIGHTS • Technology Sourcing delivered a pleasing performance, despite the worldwide supply problems for hardware products. We again benefited from good growth in the public sector and healthcare. Compared to the previous year, we saw increa
Slide 29: 2021 France
Share of 2021 Revenue Profile 2021 FRANCE OPERATIONAL HIGHLIGHTS • The acquired business, Computacenter NS, recorded revenues of €69.6 million with an 20% adjusted1 operating loss of €4.9 million, which was broadly in line with our plan for the first full year of ownership. • Despite a decline in re
Slide 30: 2021 North America
Share of 2021 Revenue Profile 2021 NORTH AMERICA 4% OPERATIONAL HIGHLIGHTS 1% • The acquisition of Pivot contributed $1,432.4 million of revenue and an adjusted1 operating profit of $25.2 million during 2021. • Large technology-based customers, also known as hyperscalers, have significantly increase
Slide 31: 2021 International
Share of 2021 Revenue Profile 2021 INTERNATIONAL OPERATIONAL HIGHLIGHTS • The Belgian business saw a significant increase in profitability during 2021, thanks to a 37% combination of good workplace and infrastructure projects and an excellent performance in the Managed Services area. • As expected,
Slide 32: Outlook
OUTLOOK ‘The more than doubling of profits that Computacenter has achieved over the last three years has been the result of deliberate actions that we have previously taken to enable growth. Our acquisitions in North America and Western Europe have materially increased our total addressable market.
Slide 33: Appendix
APPENDIX 33 l © Computacenter 2022
Slide 34: Russian Invasion of Ukraine
RUSSIAN INVASION OF UKRAINE We are extremely concerned and saddened by the ongoing situation in Ukraine following the invasion by Russia. We offer our deepest sympathies and support to Ukraine. Computacenter will be launching a campaign page for its employees to donate to Disaster Emergency Committe
Slide 35: Product Supply Shortages
PRODUCT SUPPLY SHORTAGES Throughout the year, demand-driven product shortages have materially impacted the supply of key equipment for our customers, with some orders being materially delayed or only partly fulfilled. Whilst product supply availability increased during December, the unexpected impac
Slide 36: Covid-19 Update
COVID-19 UPDATE The global pandemic has continued to weigh heavily on our people, customers, partners and communities around the world and we send our thoughts and best wishes to all those who have been affected. The leadership team has resolutely focused on both the human and business aspects of th
Slide 37: IASB Interpretation Committee – Agent vs Principal
IASB INTERPRETATION COMMITTEE – AGENT VS PRINCIPAL Following its meeting that concluded on 1 December 2021, the IFRS Interpretation Committee on an agent basis due to the similar fact pattern of the transaction to that of software sales. (the ‘Committee’) published a tentative agenda decision in res
Slide 38: Gross Invoiced Income
GROSS INVOICED INCOME4 TECHNOLOGY 2021 2020 2021 2020 Constant Change SOURCING REVENUE £m £m £m/€m/$m £m/€m/$m currency2 Gross Invoiced Income UK 1,581.5 1,504.4 5.1% 1,581.5 1,504.4 5.1% Germany 1,427.7 1,316.2 8.5% 1,662.4 1,478.4 12.4% France 481.4 526.4 (8.5%) 560.0 590.0 (5.1%) North America 1,
Slide 39: Inventory by Segment
INVENTORY BY SEGMENT 2021 2020 2021 2020 Constant Change £m £m £m/€m/$m £m/€m/$m currency2 Inventory UK 26.2 49.1 (46.7%) 26.2 49.1 (46.7%) Germany 75.8 36.4 108.6% 90.4 40.4 123.8% France 21.1 19.4 8.6% 25.1 21.6 16.5% North America 212.5 103.2 105.9% 286.4 140.9 103.3% International 5.8 3.2 80.6%
Slide 40: 2021 Reconciliation to Adjusted Results
2021 RECONCILIATION TO ADJUSTED1 RESULTS Amortisation 2021 Adjusted1 2020 Adjusted1 2021 results of acquired Change results results intangibles £m £m £m £m % Revenue 6,725.8 - 6,725.8 5,441.3 23.6% Cost of sales (5,858.0) - (5,858.0) (4,720.8) (24.1%) Gross profit 867.8 - 867.8 720.5 20.4% Administr
Slide 41: 2021 Exceptional and Other Adjusting Items
2021 EXCEPTIONAL AND OTHER ADJUSTING ITEMS The net loss from other adjusting items in the year was £5.5 million (2020: gain of £8.5 million). Excluding the tax items noted below, which resulted in a gain of £2.1 million (2020: gain of £2.4 million), the profit before tax impact was a net loss from e
Slide 42: 2021 Revenue by Segment
2021 REVENUE BY SEGMENT 2021 2020 2021 2020 Constant Change 2 £m £m £m/€m/$m £m/€m/$m currency Technology Sourcing revenue UK 1,466.4 1,328.0 10.4% 1,466.4 1,328.0 10.4% Germany 1,398.8 1,297.5 7.8% 1,628.9 1,457.4 11.8% France 481.4 526.4 (8.5%) 560.0 590.0 (5.1%) North America 1,815.5 917.7 97.8%
Slide 43: Central Corporate Costs
CENTRAL CORPORATE COSTS 2021 2020 Change Analysis of Central Corporate Costs £m £m £m Cost of the plc Board, related public company costs and Group Exec cost base (Segment unaligned) 9.1 6.8 2.3 Shared-based payments (Group Exec Segment unaligned) 3.8 3.2 0.6 Strategic corporate initiatives 10.8 17.
Slide 44: 2021 Revenue by Segment – Organic Basis
2021 REVENUE BY SEGMENT – ORGANIC BASIS 2021 2020 2021 2020 Constant ORGANIC BASIS £m £m Change £m/€m/$m £m/€m/$m 2 currency Technology Sourcing revenue UK 1,466.4 1,328.0 10.4% 1,466.4 1,328.0 10.4% Germany 1,398.8 1,297.5 7.8% 1,628.9 1,457.4 11.8% France 471.6 523.9 (10.0%) 548.7 587.3 (6.6%) Nor
Slide 45: 2021 Adjusted Operating Profit – Organic Basis
2021 ADJUSTED1 OPERATING PROFIT - ORGANIC BASIS 2021 2020 2021 2020 Constant ORGANIC BASIS £m £m Change £m/€m/$m £m/€m/$m currency2 Adjusted1 operating profit UK 102.9 90.3 14.0% 102.9 90.3 14.0% Germany 137.4 112.6 22.0% 160.2 125.7 27.4% France 7.3 14.5 (49.7%) 9.1 16.0 (43.1%) North America 12.7
Slide 46: Sources of Revenue: Percentage Change by Revenue Type
SOURCES OF REVENUE: PERCENTAGE CHANGE BY REVENUE TYPE Group UK 33.1% 29.7% 29.9% 19.8% 26.2% 26.9% 23.6% 17.8% 15.0% 10.4% 9.9% 10.1% 8.3% 7.5% 3.6% Technology Professional Managed Services Total Services Total Technology Professional Managed Services Total Services Total Sourcing Services Sourcing
Slide 47: Sources of Revenue: Percentage Change by Revenue Type
SOURCES OF REVENUE: PERCENTAGE CHANGE BY REVENUE TYPE International North America 27.4% 26.9% 23.2% 295.4% 316.0% 282.4% 23.1% 22.6% 258.6% 18.1% 186.7% 13.6% 158.3% 2.1% 9.6% 97.8% 109.5% 102.4% 114.3% 5.9% Technology Professional Managed Total Total Technology Professional Managed Total Total Sour
Slide 48: UK Adjusted Operating Profit Walk (£m)
UK ADJUSTED1 OPERATING PROFIT WALK (£M) (6.4) (9.1) 4.7 9.6 13.8 102.9 90.3 2020 Technology Technology Services Services SG&A 2021 EBIT* Sourcing Sourcing Volume GP % EBIT* Volume GP % * EBIT refers to adjusted1 operating profit 48 l © Computacenter 2022
Slide 49: Germany Adjusted Operating Profit Walk (£m)
GERMANY ADJUSTED1 OPERATING PROFIT WALK (£M) CONSTANT CURRENCY2 (12.3) (3.2) 15.0 (4.9) 14.7 15.9 137.8 112.6 107.7 2020 Currency 2020 Technology Technology Services Services SG&A 2021 EBIT* EBIT* Sourcing Sourcing Volume GP % EBIT* (constant Volume GP % currency2) * EBIT refers to adjusted1 operati
Slide 50: France Adjusted Operating Profit Walk (£m)
FRANCE ADJUSTED1 OPERATING PROFIT WALK (£M) CONSTANT CURRENCY2 (6.1) (0.6) (2.8) 3.6 1.8 (5.4) 13.0 12.4 3.5 2020 Currency 2020 Technology Technology Services Services SG&A 2021 EBIT* EBIT* Sourcing Sourcing Volume GP % EBIT* (constant Volume GP % currency2) 50 l © Computacenter 2022 * EBIT refers t
Slide 51: North America Adjusted Operating Profit Walk (£m)
NORTH AMERICA ADJUSTED1 OPERATING PROFIT WALK (£M) CONSTANT CURRENCY2 (8.1) (80.4) 15.7 6.5 (0.4) 31.0 14.0 13.6 83.7 2020 Currency 2020 Technology Technology Services Services SG&A 2021 EBIT* EBIT* Sourcing Sourcing Volume GP % EBIT* (constant Volume GP % currency2) 51 l © Computacenter 2022 * EBIT
Slide 52: International Adjusted Operating Profit Walk (£m)
INTERNATIONAL ADJUSTED1 OPERATING PROFIT WALK (£M) CONSTANT CURRENCY2 (1.7) 5.7 11.3 (1.4) (0.3) 0.7 3.6 3.3 4.7 2020 Currency 2020 Technology Technology Services Services SG&A 2021 EBIT* EBIT* Sourcing Sourcing Volume GP % EBIT* (constant Volume GP % currency2) 52 l © Computacenter 2022 * EBIT refe
Slide 53: Net Funds
NET FUNDS • One of the Group’s primary measures when managing the business is adjusted net funds3. • Adjusted net funds3 have increased by £44.2 million since 31 December 2020. Dec 21 Dec 20 Change Adjusted net funds3 • Operating cashflow inflow for 2021 of £224.3 £m £m £m million (2020: inflow of £
Slide 54: Group Cash Flow
2021 2020 GROUP CASH FLOW Profit before tax £m 248.0 £m 206.6 Net finance cost/(income) 7.2 5.9 Depreciation and amortisation 40.1 38.6 • Operating net cash inflow of £224.3 million Depreciation of right-of-use assets Share-based payments 50.6 10.6 45.2 8.0 during the year (2020: inflow of £236.9 Ga
Slide 55: Group Balance Sheet
GROUP BALANCE SHEET 2021 2020 Change £m £m £m Non-current assets Property, plant and equipment 90.0 107.0 (17.0) Right-of-use assets 138.1 129.6 8.5 Goodwill and intangibles 273.7 274.7 (1.0) Investment in associates 0.1 0.1 - Deferred income tax assets 30.2 10.1 20.1 Prepayments 16.6 23.6 (7.0) 548
Slide 56: 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 57: 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 58: 2021 Full-Year Results
2021 FULL-YEAR RESULTS Full-year results to 31 December 2021 (16 March 2022)