Computacenter : Full Year Results 2020

ENABLING SUCCESS

Computacenter plc Annual Report and Accounts 2020

2020 Highlights

Revenue £m	+7.7%
5,441.3
2020
						5,441.3
2019							5,052.8
2018							4,352.6
2017							3,793.4
2016							3,245.4

Profit before tax £m	+46.5%
206.6
2020
					206.6
2019					141.0
2018					108.1
2017					111.7
2016					87.1

Diluted earnings	+50.3%
per share Pence
133.8
2020
						133.8
2019						89.0
2018						70.1
2017						66.5
2016						52.3

Dividend per share Pence	+402.0%
50.7
2020
						50.7
	2019						10.1
2018						30.3
2017						26.1
2016						22.2

Adjusted1 profit before tax £m	+37.0%
200.5
2020
						200.5
	2019						146.3
2018						118.2
2017						106.2
2016						86.4

Adjusted1 diluted earnings	+36.6%
	per share Pence
126.4
2020
					126.4
	2019					92.5
	2018					75.7
2017					65.1
	2016					54.0

1.	Adjusted operating profit or loss,
	adjusted net finance income or
	expense, adjusted profit or loss before
	tax, adjusted tax, adjusted profit or
	loss, adjusted earnings per share and
	adjusted diluted earnings per share
	are, as appropriate, each stated
	before: exceptional and other
	adjusting items including gains or
	losses on business acquisitions and
	disposals, amortisation of acquired
	intangibles, utilisation of deferred tax
	assets (where initial recognition was
	as an exceptional item or a fair value
	adjustment on acquisition), and the
	related tax effect of these exceptional
	and other adjusting items, as
	Management do not consider these
	items when reviewing the underlying
	performance of the Segment or the
	Group as a whole. A reconciliation to
	adjusted measures is provided on page
	61 of the Group Finance Director's
	Review which details the impact of
	exceptional and other adjusted items
	when compared to the non-Generally
	Accepted Accounting Practice financial
	measures in addition to those reported
	in accordance with IFRS. Further detail
	is provided within note 4 to the
	Consolidated Financial Statements.
2.	We evaluate the long-term
	performance and trends within our
	Strategic Priorities on a constant
	currency basis. Further, the
	performance of the Group and its
	overseas Segments are shown,
	where indicated, in constant currency.
	The constant currency presentation,
	which is a non-GAAP measure, excludes
	the impact of fluctuations in foreign
	currency exchange rates. We believe
	providing constant currency
	information gives valuable
	supplemental detail regarding our
	results of operations, consistent with
	how we evaluate our performance.
	We calculate constant currency
	percentages by converting our prior-
	year local currency financial results
	using the current year average
	exchange rates and comparing these
	recalculated amounts to our current
	year results or by presenting the
	results in the equivalent local currency
	amounts. Wherever the performance
	of the Group, or its overseas Segments,
	are presented in constant currency, or

The Group has experienced significant operational and financial impacts from the unprecedented effect of the COVID-19 crisis. All results in this Annual Report and Accounts include these COVID-19 impacts and no adjustments have been made to exclude these impacts, whether they be positive or negative. Further information on the COVID-19 impacts on the Group, and our response, can be found on page 4 of this Strategic Report. The continued adoption of the going concern basis by the Directors in the preparation of the Consolidated Financial Statements is set out on page 138 in note 2 to the Consolidated Financial Statements.

The result has benefited from £261.0 million of revenue (2019: £26.0 million), and £6.5 million

of adjusted1 profit before tax (2019: £0.2 million), resulting from all acquisitions made since 1 January 2019. Of this, for the entities acquired in 2020, the result has benefited from £232.6 million of revenue and £3.2 million of adjusted1 profit before tax. All figures reported throughout this Annual Report and Accounts include the results of these acquired entities. The results of these acquisitions are assumed to be excluded where narrative discussion refers to 'organic' growth in this Annual Report and Accounts.

A reconciliation to adjusted1 measures is provided on page 61 of the Group Finance Director's Review. Further details are provided in note 4 to the Consolidated Financial Statements.

equivalent local currency amounts, the

equivalent prior-year measure is also

presented in the reported pound

sterling equivalent using the exchange

rates prevailing at the time. 2020

highlights, as shown above, are

provided in the reported pound

sterling equivalent.

3. Adjusted net funds or adjusted net debt

includes cash and cash equivalents,

other short or long-term borrowings

and current asset investments.

Following the adoption of IFRS 16 this

measure excludes all lease liabilities.

A table reconciling this measure,

including the impact of lease liabilities,

is provided within note 31 to the

Consolidated Financial Statements,

analysis of changes in net funds.

Some of the images that appear in this report were taken before COVID-19.

Computacenter at a glance

CENTRED AROUND OUR CUSTOMERS

Who we are

Computacenter is a leading independent technology partner, trusted by large corporate and Public Sector organisations.

What we do

We help our customers to Source, Transform and Manage their technology infrastructure, to deliver digital transformation, enabling people

and their business.

Our ambition

• Strongly recommended by customers for the way we help them achieve their goals.
• The preferred route to market for our Technology Partners.
• People want to join and stay with us, be proud of our reputation, as we learn, earn and have fun.
• Trusted as an agile and innovative provider of digital technology around the world.

SOURCE

CIO

PEOPLE

BUSINESS

MANAGE

TRANSFORM

REVENUE CHARACTERISTICS

Computacenter has an integrated offering which provides three complementary entry points for our customers, giving us a balanced business portfolio and helping us to achieve long-term growth.

SOURCE: Technology Sourcing

We help our customers to determine their technology needs and, supported by our Technology Partners, we arrange the commercial structures, integration and supply chain services to meet them reliably.

Revenue characteristics

We earn revenue from large contracts, with thinner margins and lower visibility.

TRANSFORM: Professional Services	MANAGE: Managed Services
We provide structured solutions and	We maintain, support and manage
expert resources to help our customers	IT infrastructure and operations for
to select, deploy and integrate	our customers, to improve quality
digital technology, to achieve their	and flexibility while reducing costs.
business goals.

Revenue characteristics	Revenue characteristics
Our revenue depends on our forward	Our revenue under contract has high
order book, which contains a multitude of	visibility and is long term and stable.
short, medium and long-term projects.

Technology Sourcing revenue	+9.4%	Professional Services revenue	+16.2%	Managed Services revenue	-3.3%
£m			£m			£m
4,180.1							425.4						835.8
2020							2020							2020
					4,180.1						425.4				835.8
2019						3,822.2			2019					366.1			2019				864.5
2018						3,177.6			2018					321.9			2018			853.1
2017						2,636.2			2017					319.2			2017			838.0
2016						2,207.5			2016					274.2			2016			763.7

OUR PURPOSE

Our Purpose is enabling success by building long-term trust with our customers, our partners, our people and our communities. If we do this, we will earn the trust and loyalty of our shareholders.

We're proud of what we've achieved

But we could be even better

We can help our customers deliver faster

Together, we've created a can-do culture where people matter and are encouraged to thrive. Our business has grown in capability, reach and reputation. We've built powerful partnerships with the world's leading Technology Partners. We deliver digital technology to some of the world's greatest organisations.

We have many opportunities to better enable our people and improve our business. As we grow, we need to remain agile and relevant to our customers. We must never forget what makes us different and why customers rely on us.

Our customers can be confident in our skills and solutions. They can trust our independence and experience. Our partners can rely on our reach and scale. This means we can help customers make wise choices in a complex and changing world.

By acting with pace and confidence

And together, becoming the best

We'll be the trusted enablers of success

We are giving our teams the freedom to make responsible decisions that meet customer needs faster; investing to make our services more innovative and competitive; building on the capabilities of our people, supported by better systems and processes; and focusing on delivering digital technology at scale, where we can play to our strengths.

We'll understand what our customers need so we remain fundamental to their success. We'll work hard to keep our promises and always be honest and straightforward. We'll build more collaborative relationships and continue to treat people as we expect to be treated. We'll act for the long term and always strive to improve what we do.

Our customers will strongly recommend us for the way we help them achieve their goals. We'll be the preferred route to market for Technology Partners. People will want to join and stay with us, be proud of our reputation, as we learn, earn and have fun. We'll be a trusted, agile and innovative provider of digital technology around the world.

WORLDWIDE REACH AND CUSTOMER FOCUS

MARKHAM, ON, CANADA

SAN FRANCISCO, CA, USA

LIVERMORE, CA, USA

DALLAS, TX, USA

MEXICO CITY, MEXICO

ATLANTA, GA, USA

ALPHARETTA, GA, USA

BODEGRAVEN, NETHERLANDS	POZNAN, POLAND
BRUSSELS, BELGIUM
HATFIELD, MILTON KEYNES,
NOTTINGHAM, SHEFFIELD, UK
HATFIELD, BRAINTREE, UK
HATFIELD, UK, EMEA
BARCELONA, SPAIN				DALIAN, CHINA
GONESSE, PARIS, FRANCE
LYON, MONTPELLIER,				BANGALORE, INDIA
PARIS, PERPIGNAN, FRANCE
	CLUJ, ROMANIA			KUALA LUMPUR, MALAYSIA
	BUDAPEST, HUNGARY
	BERLIN, DRESDEN, ERFURT,			KUALA LUMPUR, MALAYSIA, APAC
	KERPEN, GERMANY
	KERPEN, GERMANY
	CAPE TOWN, SOUTH AFRICA
	ZURICH, SWITZERLAND
	SERVICE CENTERS	INTEGRATION CENTERS	COMPUTACENTER'S COVERAGE	REGIONAL HEADQUARTERS

We Source, Transform and Manage technology for our customers in 70 countries worldwide.

We sell to customers

in 10 countries

Belgium | Canada | France

Germany | Ireland | Netherlands

Spain | Switzerland | UK | USA

We have near-shore/		We have entities and		We source for
off-shore operations in		VAT registrations in		and support
another seven countries		another eight countries		customers in
Hungary | India | Malaysia | Mexico		Australia | Brazil | China | Hong Kong		another 45
Poland | Romania | South Africa		Japan | Malta | Norway | Singapore		countries

ENABLING

SUCCESS BY

BUILDING

LONG-TERM

TRUST

Our Purpose is enabling success by building long-term trust. This means enabling the success of our:

• customers, by helping them to navigate the complex digital environment and to Source, Transform and Manage their digital technology;
• people, by creating a business framework and culture, underpinned by strong values, which allows them to build rewarding careers;
• Technology Partners, by providing the scale, reach and stable infrastructure to successfully deploy their technologies; and
• communities, by acting responsibly and building a sustainable business.

If we do this, we will earn the trust and loyalty of our shareholders.

STRATEGIC REPORT

ANNUAL REPORT AND ACCOUNTS 2020

Strategic Report

IFC	2020 Highlights
02	Our Customers

1. COVID-19Impact Statement

1. Chairman's Statement

1. Chief Executive's Strategic Review

1. Our Customer Offering

1. Our Strategic Propositions

1. Our Marketplace

1. Our Business Model and Differentiation

1. Technology Sourcing

22 Managed Services and Professional Services

1. Our Strategic Priorities

1. Our Performance in 2020

1. Our People and Culture

1. Our Community

1. Section 172 Statement

1. Non-financialInformation Statement
2. Group Finance Director's Review

1. Principal Risks and Uncertainties

Governance Report

1. Chairman's Governance Overview

1. Board of Directors

1. Corporate Governance Report

1. Nomination Committee Report

1. Audit Committee Report

1. Directors' Remuneration Report

1. Directors' Report

1. Directors' Responsibilities

Financial Statements

125 Independent Auditor's Report to the members of Computacenter plc

1. Consolidated Income Statement
2. Consolidated Statement of Comprehensive Income
3. Consolidated Balance Sheet
4. Consolidated Statement of Changes in Equity
5. Consolidated Cash Flow Statement
6. Notes to the Consolidated Financial Statements

1. Company Balance Sheet
2. Company Statement of Changes in Equity
3. Notes to the Company Financial Statements

1. Group five-year financial review

1. Financial calendar
2. Corporate information
3. Principal offices

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