ENABLING SUCCESS Computacenter plc Annual Report and Accounts 2020 2020 Highlights 1. Adjusted operating profit or loss, Revenue £m +7.7% Dividend per share Pence +402.0% adjusted net finance income or expense, adjusted profit or loss before tax, adjusted tax, adjusted profit or 5,441.3 50.7 loss, adjusted earnings per share and adjusted diluted earnings per share are, as appropriate, each stated 2020 5,441.3 2020 50.7 before: exceptional and other 2019 5,052.8 2019 10.1 adjusting items including gains or losses on business acquisitions and 2018 4,352.6 2018 30.3 disposals, amortisation of acquired intangibles, utilisation of deferred tax 2017 3,793.4 2017 26.1 assets (where initial recognition was 2016 3,245.4 2016 22.2 as an exceptional item or a fair value adjustment on acquisition), and the related tax effect of these exceptional Profit before tax £m +46.5% Adjusted1 profit before tax £m +37.0% and other adjusting items, as Management do not consider these items when reviewing the underlying performance of the Segment or the 206.6 200.5 Group as a whole. A reconciliation to adjusted measures is provided on page 2020 206.6 2020 200.5 61 of the Group Finance Director’s Review which details the impact of 2019 141.0 2019 146.3 exceptional and other adjusted items when compared to the non-Generally 2018 108.1 2018 118.2 Accepted Accounting Practice financial 2017 111.7 2017 106.2 measures in addition to those reported in accordance with IFRS. Further detail 2016 87.1 2016 86.4 is provided within note 4 to the Consolidated Financial Statements. 1 Diluted earnings +50.3% Adjusted diluted earnings +36.6% 2. We evaluate the long-term per share Pence per share Pence performance and trends within our Strategic Priorities on a constant currency basis. Further, the performance of the Group and its 133.8 126.4 overseas Segments are shown, where indicated, in constant currency. 2020 133.8 2020 126.4 The constant currency presentation, which is a non-GAAP measure, excludes 2019 89.0 2019 92.5 the impact of fluctuations in foreign currency exchange rates. We believe 2018 70.1 2018 75.7 providing constant currency 2017 66.5 2017 65.1 information gives valuable supplemental detail regarding our 2016 52.3 2016 54.0 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 equivalent local currency amounts, the unprecedented effect of the COVID-19 crisis. All results in this Annual Report and Accounts equivalent prior-year measure is also include these COVID-19 impacts and no adjustments have been made to exclude these impacts, presented in the reported pound sterling equivalent using the exchange whether they be positive or negative. Further information on the COVID-19 impacts on the rates prevailing at the time. 2020 Group, and our response, can be found on page 4 of this Strategic Report. The continued highlights, as shown above, are adoption of the going concern basis by the Directors in the preparation of the Consolidated provided in the reported pound sterling equivalent. Financial Statements is set out on page 138 in note 2 to the Consolidated Financial Statements. 3. Adjusted net funds or adjusted net debt The result has benefited from £261.0 million of revenue (2019: £26.0 million), and £6.5 million includes cash and cash equivalents, 1 other short or long-term borrowings of adjusted profit before tax (2019: £0.2 million), resulting from all acquisitions made since and current asset investments. 1 January 2019. Of this, for the entities acquired in 2020, the result has benefited from Following the adoption of IFRS 16 this £232.6 million of revenue and £3.2 million of adjusted1 profit before tax. All figures reported measure excludes all lease liabilities. A table reconciling this measure, throughout this Annual Report and Accounts include the results of these acquired entities. including the impact of lease liabilities, The results of these acquisitions are assumed to be excluded where narrative discussion is provided within note 31 to the refers to ‘organic’ growth in this Annual Report and Accounts. Consolidated Financial Statements, analysis of changes in net funds. 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. 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. SOURCE What we do We help our customers to Source, Transform and Manage their technology infrastructure, to deliver digital transformation, enabling people and their business. CIO Our ambition PEOPLE • Strongly recommended by customers BUSINESS for the way we help them achieve their goals. • The preferred route to market for our MANAGE Technology Partners. • 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 Partners, 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 +9.4% Professional Services revenue +16.2% Managed Services revenue -3.3% £m £m £m 4,180.1 425.4 835.8 2020 4,180.1 2020 425.4 2020 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 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 Partners. We deliver digital technology to why customers rely on us. wise choices in a complex and changing world. 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 Partners. and competitive; building on the capabilities of our straightforward. We’ll build more collaborative People will want to join and stay with us, be proud people, supported by better systems and processes; relationships and continue to treat people as we of our reputation, as we learn, earn and have fun. and focusing on delivering digital technology at expect to be treated. We’ll act for the long term and We’ll be a trusted, agile and innovative provider of scale, where we can play to our strengths. always strive to improve what we do. digital technology around the world. WORLDWIDE REACH AND CUSTOMER FOCUS BODEGRAVEN, NETHERLANDS POZNAN, POLAND BODEGRAVEN, NETHERLANDS POZNAN, POLAND BRUSSELS, BELGIUM BRUSSELS, BELGIUM HATFIELD, MILTON KEYNES, NOTTINGHAM, SHEFFIELD, UK HATFIELD, MILTON KEYNES, NOTTINGHAM, SHEFFIELD, UK HATFIELD, BRAINTREE, UK HATFIELD, BRAINTREE, UK HATFIELD, UK,