Computacenter : 2022 Interim Results Presentation

2022 INTERIM RESULTS

Half-year results to 30 June 2022 (9 September 2022)

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 to £2.8 billion (H1 2021: £2.4 billion) and by 16.0 per cent in constant currency2
• Revenue accounting policies have been revised with the majority software and resold services now recognised on an agency basis. This has led to a restatement of prior periods. See slide 35 for further information
• Group adjusted1 profit before tax decreased by
  5.9 per cent to £111.9 million (H1 2021:

£118.9 million) and by 5.9 per cent in constant currency2

• Adjusted1 diluted earnings per share (EPS) of 69.8 pence (H1 2021:
• 1. pence), a decrease of 4.5 per cent
• Interim dividend of 22.1 pence (H1 2021: 16.9 pence), an increase of
• 1. per cent
• Cash and cash equivalents of £193.5 million (H1 2021: £158.6 million)
• Adjusted net funds3 of £159.3 million (H1 2021: £121.9 million) including the loan for the German headquarters building and the Pivot credit facility
• Net funds of £12.1 million (H1 2021: net debt of £29.3 million) including £147.2 million of lease liabilities recognised as debt under IFRS 16 (H1 2021: £151.2 million)

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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 diluted EPS (pence)	32.7		34.5		46.7		73.1		69.8	(4.5%)
Dividend per share (pence)	8.7		10.1		12.3		16.9		22.1	30.8%
Services Contract Base2 (£m)	739.7		737.8		732.4		780.3		799.8	2.5%
Operating cash flow (£m)	8.4		(1.1)		44.7		1.5		8.1	440.0%

Four-Year Compound Annual Growth Rate

	Adjusted1	Adjusted1	Dividend	Services
	profit before tax	diluted EPS	per share	Contract Base2
	21.1%	20.9%	26.2%	2.0%
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Note

Following a recently approved interpretation of the revenue accounting standard by the International Accounting Standards Board, we have changed the way we recognise revenues for standalone software and resold third-party services contracts and revised our accounting policies to reflect this change. Accordingly, we have restated our prior-period revenues down from £3,180.0 million as reported at 30 June 2021 to £2,425.1 million Further information on this change, including the retrospective restatement of the financial statements, and the revised accounting policy, is available on slide 35.

1,2 Refer to the glossary for definitions.

H1 2022 OPERATING HIGHLIGHTS

Group

Our strong trading performance over the six months to 30 June 2022 continues to demonstrate the resilience of our business model. Revenue increased 16.0 per cent on a constant currency2 basis, however, as we indicated in our Trading Update on 29 April 2022, adjusted1 profit before tax for the first half of the year is behind the comparative period to 30 June 2021.

UK

The UK saw a decrease in revenues of 7.1 per cent with the Technology Sourcing business seeing a 10.5 per cent reduction in revenue as the demand for workplace rollouts declined. The UK saw pleasing growth in higher-margin data center business, as the market in this area continues to expand rapidly, although the volumes were not sufficient to replace the workplace business. Significant increases in low-margin software and resold services impacted gross invoiced income4, but are reported net for Technology Sourcing revenues.

The German business saw revenues increase 10.2 per cent on a constant currency2 basis. Technology Sourcing revenue growth was pleasing during Germany the period, with significant increases in workplace hardware and software. Professional Services once again saw double digit growth, with the business

continuing to expand capacity and its offerings. Managed Services generated excellent growth, benefitting from contract wins in 2021.

The French business saw Technology Sourcing revenues return to growth as significant customers increased spend, with a number of enterprise-level private sector customers and large public-sector framework contracts increasing purchasing activity. Margins improved as these customers invested in

France significant server rack installations. The integration of Computacenter NS remains on track. As expected, the acquisition had a negative impact on growth in Professional Services revenue in the period, as older contracts ceased. This was more than offset by pleasing growth in Managed Services. This has resulted in a 2.4 per cent increase in revenues on a constant currency2 basis.

North

America

In North America, the results were driven by continued extraordinary growth in hyperscale data center customers, as well as new customer wins. The growth was achieved in both Technology Sourcing and Services, as deployment project activity increased. North America has seen strong revenue growth of 48.3 per cent on a constant currency2 basis. As this growth was concentrated in a small number of hyperscale technology customers, which have a much lower than average margin, growth in profitability has not matched that seen in revenue.

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1,2 Refer to the glossary for definitions.

FINANCIAL REVIEW

Tony Conophy

9 September 2022

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