Our people Our communities Our customers Our Technology Providers Computacenter plc Annual Report and Accounts 2019 ENABLING SUCCESS 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. SOURCE What we do We help our customers to Source, Transform and Manage their technology infrastructure to deliver digital transformation, enabling users and their business. CIO Our ambition USERS • Strongly recommended by customers for the way we help them achieve their BUSINESS goals. • The preferred route to market for our MANAGE Technology Providers. • People want to join and stay with us, be proud of our reputation, as we learn, TRANSFORM earn and have fun. • Trusted as an agile and innovative provider of digital technology around the world. 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 TRANSFORM: Professional Services MANAGE: Managed Services We help our customers to determine We provide structured solutions and We maintain, support and manage their technology needs and, supported expert resources to help our customers IT infrastructure and operations for by our Technology Providers, we arrange to select, deploy and integrate our customers to improve quality the commercial structures, integration digital technology to achieve their and flexibility while reducing costs. and supply chain services to meet business goals. them reliably. Revenue characteristics Revenue characteristics Revenue characteristics We earn revenue from large contracts, Our revenue depends on our forward Our revenue under contract has high with thinner margins and lower visibility. order book, which contains a multitude of visibility and is long term and stable. short, medium and long-term projects. Technology Sourcing revenue +20.3% Professional Services revenue +13.7% Managed Services revenue +1.3% £m £m £m 3,822.2 366.1 864.5 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 2015 2,067.1 2015 262.8 2015 727.7 OUR PURPOSE Our Purpose is to enable 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 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 We have many opportunities to better enable our Our customers can be confident in our skills and matter and are encouraged to thrive. Our business people and improve our business. As we grow, we solutions. They can trust our independence and has grown in capability, reach and reputation. We’ve need to remain agile and relevant to our customers. experience. Our partners can rely on our reach built powerful partnerships with the world’s leading We must never forget what makes us different and and scale. This means we can help customers make technology providers. We deliver digital technology why customers rely on us. wise choices in a complex and changing world. to some of the world’s greatest organisations. 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 We’ll understand what our customers need so we Our customers will strongly recommend us for the responsible decisions that meet customer needs remain fundamental to their success. We’ll work hard way we help them achieve their goals. We’ll be the faster; investing to make our services more innovative to keep our promises and always be honest and preferred route to market for Technology Providers. and competitive; building on the capabilities of our straightforward. We’ll build more collaborative People will want to join us and stay with us, proud of people, supported by better systems and processes; relationships and continue to treat people as we our reputation, as we learn, earn and have fun. We’ll focusing on delivering digital technology at scale, expect to be treated. We’ll act for the long term and be a trusted, agile and innovative provider of digital where we can play to our strengths. always strive to improve what we do. technology around the world. WORLDWIDE REACH AND CUSTOMER FOCUS BODEGRAVEN, NETHERLANDS POZNAN, POLAND BRUSSELS, BODEGRAVEN, NETHERLANDS POZNAN, POLAND BELGIUM BRUSSELS, BELGIUM HATFIELD, MILTON KEYNES, NOTTINGHAM, SHEFFIELD, UK HATFIELD, MILTON KEYNES, HATFIELD, BRAINTREE, UK NOTTINGHAM, SHEFFIELD, UK HATFIELD, UK, EMEA HATFIELD, BRAINTREE, UK SAN FRANCISCO, WEST COAST, CA, USA DALIAN, CHINA HATFIELD, UK, EMEA BARCELONA, SPAIN LIVERMORE, CA, USA SAN FRANCISCO, WEST COAST, CA, USA DALIAN,GONESSE, CHINA BARCELONA, SPAIN FRANCE DALLAS, TX, USA LIVERMORE, CA, USA MONTPELLIER, GONESSE, FRANCE BANGALORE, MEXICO CITY, MEXICO PERPIGNAN, FRANCE INDIA DALLAS, TX, USA MONTPELLIER, MEXICO CITY, BANGALORE, INDIA MEXICO PERPIGNAN, FRANCE NEW YORK, EAST COAST, NY, USA KUALA LUMPUR, MALAYSIA BUDAPEST, HUNGARY NEW YORK, EAST COAST, NY, USA KUALA LUMPUR, MALAYSIA KUALA LUMPUR, MALAYSIA, APAC BERLIN, DRESDEN, ERFURT, BUDAPEST, HUNGARY KUALA LUMPUR, MALAYSIA, APAC LEIPZIG, KERPEN, GERMANY BERLIN, DRESDEN, ERFURT, KERPEN, GERMANY LEIPZIG, KERPEN, GERMANY CAPE TOWN, SOUTH AFRICA KERPEN, GERMANY ZURICH, SWITZERLAND CAPE TOWN, SOUTH AFRICA ZURICH, SWITZERLAND SERVICE CENTERS INTEGRATION CENTERS COMPUTACENTER’S COVERAGE REGIONAL HEADQUARTERS SERVICE CENTERS INTEGRATION CENTERS COMPUTACENTER’S COVERAGE REGIONAL HEADQUARTERS We Source, We sell to customers We also have operations/entities We source for Transform and in nine countries in another 12 countries and support Manage technology for our customers UK | Ireland | Germany Hungary | Poland | India | Mexico | China customers in in 70 countries France | Belgium | Switzerland Malaysia | Japan | Australia | Hong Kong another 49 worldwide. Netherlands | USA | Spain Singapore | Canada | South Africa countries 2019 Highlights Revenue £m 16.1% Dividend per share Pence 22.1% The result has benefited from £857.6 million of revenue (2018: £270.9 million), and £6.5 million of adjusted1 profit before tax 5,052.8 37.0 (2018: £2.2 million), resulting from the acquisitions made since 30 June 2018. 2019 5,052.8 2019 37.0 All figures reported throughout this Annual 2018 4,352.6 2018 30.3 Report and Accounts include the results 2017 3,793.4 2017 26.1 of the acquired entities. 2016 3,245.4 2016 22.2 2015 3,057.6 2015 21.4 The Group has adopted IFRS 16 from 1 January 2019 which has resulted in changes in accounting policies and Statutory profit before tax £m 30.4% Adjusted1 profit before tax £m 23.8% adjustments to the amounts recognised in the Financial Statements. Importantly, and in accordance with the modified 141.0 146.3 retrospective approach, the comparative 2019 141.0 2019 146.3 results for the year ended 31 December 2019 have not been restated under the 2018 108.1 2018 118.2 accounting policies adopted as a result 2017 111.7 2017 106.2 of transition to IFRS 16. The current year’s Our communities 2016 87.1 2016 86.4 results include an overall decrease in 2015 126.8 2015 87.2 profitability before tax of £1.7 million on both a statutory and an adjusted1 basis, due to the impact of IFRS 16 which has seen Statutory diluted earnings 27.0% Adjusted1 diluted earnings 22.2% increased interest costs exceed the net of per share per share Pence Pence increased depreciation and reduced rental costs, due to the timing difference effect of the new accounting standard. An analysis 89.0 92.5 of the impact of transition is presented in 2019 89.0 2019 92.5 note 2 summary of significant accounting 2018 70.1 2018 75.7 policies on page 128 of this Annual Report and Accounts. Further information on the 2017 66.5 2017 65.1 implementation of, and transition to, IFRS 2016 52.3 2016 54.0 16 is included within the Group Finance 2015 82.1 2015 53.6 Director’s Review on page 58 of this Annual Report and Accounts. A reconciliation between key adjusted1 and statutory measures is provided on page 53 of the Group Finance Director’s Review. Further details are provided in note 4 to the Consolidated Financial Statements, segment information. 1. Adjusted operating profit or loss, adjusted net finance income currency presentation, which is a non-GAAP measure, excludes or expense, adjusted profit or loss before tax, adjusted tax, the impact of fluctuations in foreign currency exchange rates. adjusted profit or loss, adjusted earnings per share and We believe providing constant currency information gives adjusted diluted earnings per share are, as appropriate, each valuable supplemental detail regarding our results of stated before: exceptional and other adjusting items including operations, consistent with how we evaluate our performance. gain or losses on business acquisitions and disposals, We calculate constant currency percentages by converting our amortisation of acquired intangibles, utilisation of deferred prior-year local currency financial results using the current tax assets (where initial recognition was as an exceptional year average exchange rates and comparing these recalculated item or a fair value adjustment on acquisition), and the related amounts to our current year results or by presenting the tax effect of these exceptional and other adjusting items, as results in the equivalent local currency amounts. Wherever Management do not consider these items when reviewing the the performance of the Group, or its overseas Segments, are underlying performance of the Segment or the Group as a presented in constant currency, or equivalent local currency whole.