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Computacenter plc Annual Report and Accounts 2015 ENABLING USERS IN A DIGITAL WORLD Annual Report and Accounts 2015 ANNUAL REPORT CONTENT OVERVIEW STRATEGIC REPORT GOVERNANCE 01 Highlights 2015 54 Board of Directors 02 What we do 56 Corporate Governance report 03 Letter from the Chairman 62 Directors’ report 04 Chief Executive’s review 66 Audit Committee report 06 Our markets 70 Nomination Committee report 07 Our strategy 71 Directors’ Remuneration report 12 Our business model 85 Directors’ responsibilities 14 Resources and relationships 16 Risk management FINANCIAL STATEMENTS 20 Our key performance indicators 86 Independent Auditor’s report to the 22 Case study Cloud members of Computacenter plc ‘only’ 24 Case study NGSD 90 Consolidated income statement 26 Case study Mobile 91 Consolidated statement of comprehensive income 28 Information Security 92 Consolidated balance sheet 30 Performance review 93 Consolidated statement of 39 Group Finance Director’s review changes in equity 48 Corporate Sustainable Responsibility 94 Consolidated cash flow statement 95 Notes to the consolidated Financial Statements 132 Company balance sheet 133 Company statement of changes in equity 134 Notes to the Company Financial Statements 139 Group five-year financial review 139 Group summary balance sheet 139 Financial calendar 140 Corporate information 141 Principal offices 1 Adjusted revenue, adjusted Services revenue, adjusted Professional Services revenue, adjusted Supply Chain revenue, and adjusted administrative expenses excludes the revenue and administrative expenses from a disposed subsidiary, R.D. Trading Ltd (RDC), for both the current year and the comparative reporting year. RDC was sold on 2 February 2015. Adjusted operating profit or loss, adjusted profit or loss before tax, adjusted profit or loss for the year, adjusted earnings per share and adjusted diluted earnings per share are, as appropriate, each stated before: exceptional and other adjusting items including gain or loss on business 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. Each of these measures also excludes the results of RDC for both the current and comparative periods. Additionally, adjusted operating profit or loss includes the interest paid on customer-specific financing (CSF) which Management considers to be a cost of sale. A reconciliation between key adjusted and statutory measures is provided on page 40 of the Group Finance Director’s review. Further detail is provided within note 3 to the Financial Statements. 2 We evaluate the long-term performance and trends within our strategic key performance indicators (KPIs) 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 provides valuable supplemental information 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. Excluding our KPIs, where the performance of the Group, or its overseas segments, are presented in constant currency, the equivalent prior-year measure is also presented in actual currency using the exchange rates prevailing at the time. 3 The comparative dividend (pence per share) figure provided for 2014 has not been adjusted for the share capital consolidation that took place on 20 February 2015. The figures, as adjusted for the share capital consolidation, are provided within the section entitled ‘dividend’ on page 31 of this Annual Report and Accounts. 4 Net funds includes cash and cash equivalents, CSF, other short or other long-term borrowings and current asset investments. A breakdown is provided within note 29 to the Financial Statements. HIGHLIGHTS 2015 STRATEGIC REPORT ANNUAL REPORT AND ACCOUNTS 2015 OUR AMBITION IS TO BE EUROPE’S PREFERRED IT PROVIDER TO ENABLE USERS AND THEIR BUSINESS IN A DIGITAL WORLD. Adjusted revenue1 (£m) Statutory revenue (£m) Dividend per share3 (pence) 3,054.2 3,057.6 21.4 -0.3% -1.6% +12.6% Adjusted profit before tax1 (£m) Statutory profit before tax (£m) 86.9 126.8 +7.2% +66.0% Adjusted diluted earnings per share1 Statutory diluted earnings per share (pence) (pence) 53.4 82.1 +21.1% +105.3% 01 WHAT WE DO OUR BUSINESS Three complementary entry points for our customers and a balanced portfolio for Computacenter to achieve long-term growth. CONSULT & CHANGE SOURCE & DEPLOY MANAGE & TRANSFORM Delivering a set of predictable, proven Determining and providing appropriate Providing maintenance, support, solutions that optimise customers’ products and commercials to address transformation and management technology, enabling effective change customers’ technology requirements, of customers’ IT infrastructures and and achievement of business goals. providing a complete service and operations improving quality and flexibility support throughout the lifecycle. of service, while significantly reducing costs. Revenue characteristics Revenue characteristics Revenue characteristics Dependent on forward order book. Large contracts, low margins and High visibility, long term and stable. low visibility. Professional Services revenue (£m) Supply Chain revenue (£m) Managed Services revenue (£m) 262.8 2,067.1 727.7 +1.2% -2.6% +0.3% 2015 262.8 2015 2,067.1 2015 727.7 2014 259.7 2014 2,122.3 2014 725.8 2013 242.1 2013 2,106.2 2013 723.8 2012 220.3 2012 2,005.6 2012 688.4 2011 216.9 2011 2,015.6 2011 619.8 Adjusted Professional Services Adjusted Supply Chain revenue1 revenue1 (£m) (£m) 262.6 2,063.9 +2.5% -0.8% 2015 262.6 2015 2,063.9 2014 256.3 2014 2,081.2 2013 239.8 2013 2,066.6 2012 217.9 2012 1,971.7 2011 213.8 2011 1,977.6 02 LETTER FROM THE CHAIRMAN STRATEGIC REPORT ANNUAL REPORT AND ACCOUNTS 2015 A YEAR OF PROGRESS As you, our shareholders, partners and employees know, we manage our business and its relationships for the long term. In 2015, we made good progress in managing our cash, and with the sale early in the year of our recycling subsidiary RDC, and substantial cash generation in 2014, we were able to return £121.4 million by way of special and ordinary dividends. We will continue our focus on working capital usage and cash generation for the long haul. Operationally, we have completed the implementation of the Group Operating Model, which enables us to deliver consistent service to our customers across the countries in which we operate, whilst retaining an in-country go to market approach in our geographies. This has taken more than four years of sustained effort, from the installation of our single ERP system to the required change in management reporting lines, and it has required constant focus on long-term goals while striving to deliver annual revenue and profit growth. Our results in 2015 were pleasing as, despite a substantial decline in the Euro, we made our profit objective for the year, and on a constant currency2 basis grew our adjusted revenue1 by 5.5 per cent. In the UK, we implemented substantial new Managed Services contracts for a number of customers, in Germany we won a significant number of new contracts, and in France we made good progress in getting the operation properly focused and resourced. We continued diversification of our customer support capability with Barcelona, Cape Town, Budapest, Bangalore and Kuala Lumpur remaining key components of our long-term plans. In the future, we are planning to begin direct, rather than partner-based, operations in the USA, and the setting up of a support centre in Mexico. We serve customers in more than 100 countries, but we sell to enterprises As you, our shareholders, partners and whose home is in one of five countries being the UK, Germany, France, Belgium and Switzerland. In accordance with the Group’s strategy, we employees know, we manage our business continue to invest in our Services capabilities with which we support and its relationships for the long term. and enable the end users of our customers. I have chosen to underscore in this short letter our commitment to the long term, but we are pleased with the results for 2015, achieved despite challenges in the market and of our own making, and we are confident of continued progress in 2016. I thank our shareholders for their faith in us, our partners for their support, and our employees for their efforts and, of course, results. Greg Lock Chairman 11 March 2016 03 CHIEF EXECUTIVE’S REVIEW A LONG-TERM VIEW Computacenter has delivered a further year of As a public company listed on the main market of the London Stock progress in 2015, increasing its adjusted diluted Exchange, we strive at all times to deliver value for our stakeholders across a range of time-horizons. However, as a Senior Management earnings per share1 by 21.1 per cent to 53.4 pence. This team, we continue to consider the long term in all aspects of our level of performance has been achieved despite an decision-making and, as part of this approach, spend significant time reviewing the progress made by the business, both financially increased level of in-year strategic investment by the and otherwise, over a rolling three-year period. Group to maintain and grow its competitive advantage, substantial currency headwinds due to the strength of We have been pleased by the financial progress made by the Group over the past three years.

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