1981-2021

ENABLING

SUCCESS

Computacenter plc

Annual Report and

Accounts 2021

COMPUTACENTER’S COVERAGE REGIONAL HEADQUARTERS

INTEGRATION CENTERS

SERVICE CENTERS

LIVERMORE, CA, US

INDIANAPOLIS, IN, US

ALPHARETTA, GA, US

BODEGRAVEN, NETHERLANDS

BRUSSELS, BELGIUM

HATFIELD, BRAINTREE, UK

GONESSE, PARIS, FRANCE

ZURICH, SWITZERLAND

KERPEN, GERMANY

DALLAS, TX, US

MEXICO CITY, MEXICO

MARKHAM, ON, CANADA

BARCELONA, SPAIN

HATFIELD, MILTON KEYNES,

NOTTINGHAM, SHEFFIELD, UK

LYON, MONTPELLIER,

PARIS, PERPIGNAN, FRANCE

BUDAPEST, HUNGARY

CLUJ, ROMANIA

BERLIN, DRESDEN, ERFURT,

KERPEN, GERMANY

POZNAN, POLAND

CAPE TOWN, SOUTH AFRICA

KUALA LUMPUR, MALAYSIA

BANGALORE, INDIA

SAN FRANCISCO, CA, US

ATLANTA, GA, US

HATFIELD, UK, EMEA

KUALA LUMPUR, MALAYSIA, APAC

Our types of revenue

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.

We sell to customers in nine countries

Belgium | Canada | France | Germany | Ireland

Netherlands | Switzerland | United Kingdom

United States

We have near-shore and off-shore operations

in another eight countries

Hungary | India | Malaysia | Mexico

Poland | Romania | South Africa | Spain

We have entities or VAT registrations in another

eight countries/territories

Australia | Brazil | China | Hong Kong (SAR) | Japan

Malta | Norway | Singapore

We SOURCE, TRANSFORM and MANAGE technology for our customers

in 70 countries worldwide

Computacenter at a glance

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.

Worldwide reach and customer focus

TRANSFORM:

Professional Services

We provide structured solutions

and expert resources to help our

customers to select, deploy and

integrate digital technology, to achieve

their business goals.

Revenue characteristics

Our revenue depends on our forward

order book, which contains a multitude

of short, medium and long-term projects.

MANAGE:

Managed Services

We maintain, support and manage IT

infrastructure and operations for our

customers, to improve quality and

flexibility while reducing costs.

Revenue characteristics

Our revenue under contract has high

visibility and is long term and stable.

2021

2020

2019

2018

2017

5,274.9

4,180.1

3,822.2

3,177.6

2,636.2

2021

2020

2019

2018

2017

552.4

425.4

366.1

321.9

319.2

2021

2020

2019

2018

2017

898.5

835.8

864.5

853.1

838.0

Technology Sourcing revenue £m

+26.2%

5,274.9

Professional Services revenue £m

+29.9%

552.4

Managed Services revenue £m

+7.5%

898.5

COMPUTACENTER’S COVERAGE REGIONAL HEADQUARTERS

INTEGRATION CENTERS

SERVICE CENTERS

LIVERMORE, CA, USA

ALPHARETTA, GA, USA

BODEGRAVEN, NETHERLANDS

BRUSSELS, BELGIUM

HATFIELD, BRAINTREE, UK

GONESSE, PARIS, FRANCE

ZURICH, SWITZERLAND

KERPEN, GERMANY

DALLAS, TX, USA

MEXICO CITY, MEXICO

MARKHAM, ON, CANADA

BARCELONA, SPAIN

HATFIELD, MILTON KEYNES,

NOTTINGHAM, SHEFFIELD, UK

LYON, MONTPELLIER,

PARIS, PERPIGNAN, FRANCE

BUDAPEST, HUNGARY

CLUJ, ROMANIA

BERLIN, DRESDEN, ERFURT,

KERPEN, GERMANY

POZNAN, POLAND

CAPE TOWN, SOUTH AFRICA

KUALA LUMPUR, MALAYSIA

BANGALORE, INDIA

SAN FRANCISCO, CA, USA

ATLANTA, GA, USA

HATFIELD, UK, EMEA

KUALA LUMPUR, MALAYSIA, APAC

Our Purpose – Enabling Success

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

WE CAN HELP

OUR CUSTOMERS

DELIVER FASTER

AND TOGETHER,

BECOMING

THE BEST

BUT WE

COULD BE

EVEN BETTER

BY ACTING

WITH PACE AND

CONFIDENCE

WE’LL BE THE

TRUSTED ENABLERS

OF SUCCESS

• 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.

• 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.

• 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.

• 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.

• 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.

• Focusing on delivering digital

technology at scale, where we can play

to our strengths.

• 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,

and 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.

2021

2020

2019

2018

2017

6,725.8

5,441.3

5,052.8

4,352.6

3,793.4

2021

2020

2019

2018

2017

66.3

50.7

10.1

30.3

26.1

2021

2020

2019

2018

2017

248.0

206.6

141.0

108.1

111.7

2021

2020

2019

2018

2017

165.6

126.4

92.5

75.7

65.1

2021

2020

2019

2018

2017

160.9

133.8

89.0

70.1

66.5

2021

2020

2019

2018

2017

255.6

200.5

146.3

118.2

106.2

2021

highlights

Our strong financial and operational performance in 2021 has been facilitated by the consistent implementation of our

strategy. It has also been underpinned by our focus on the long-term consequences of our decision-making across the

organisation, and the actions we have taken to understand the needs, views and interests of our stakeholders.

Following the very strong growth of adjusted

diluted earnings per share that the Company achieved in 2020, we grew

again by over 30 per cent in constant currency

during the year. Our profit results for both the first and second halves

of the year are individually greater than any full-year profit we achieved prior to 2019.

We have achieved improvement across each of the four key metrics that the Board uses to measure performance

against our strategic priorities.

We have seen progress in the delivery of our sustainability strategy, Winning Together for our people and our planet.

Our Scopes 1 and 2 carbon emissions have fallen by 62 per cent in 2021, from 13,856 metric tonnes of CO

e in 2020

to 5,210 metric tonnes, we were certified as a Top Employer across a number of our major operating geographies,

and we were recognised at the CRN Women in Channel Awards 2021 for our community outreach programme.

We continue to work diligently to enable the consistent delivery of value for our stakeholders, and make decisions

to ensure the long-term sustainable success of our organisation and the achievement of Our Purpose.

The result for the year benefited from £1,105.1 million of revenue (2020: £232.6 million), and £13.9 million of adjusted

profit before tax (2020: £3.3 million), resulting from all acquisitions

made since 1 January 2020. All figures reported throughout this Annual Report and Accounts include the results of these acquired entities. The results of these acquisitions are excluded

where narrative discussion refers to ‘organic’ growth in this Annual Report and Accounts.

1. Adjusted administrative expense, adjusted operating profit or loss, 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 does 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 71 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 (GAAP) financial measures, in addition to those reported in accordance with IFRS. Further detail is provided within note 4

to the Consolidated Financial Statements, Segment Information.

2. We evaluate the long-term performance and trends within our strategic priorities on a constant-currency basis. The performance of the Group and its overseas Segments are also

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 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. 2021 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.

4. Gross invoiced income is based on the value of invoices raised to customers, net of the impact of credit notes. This reflects the cash movements from revenue, to assist Management

and the users of the Annual Report and Accounts in understanding revenue growth on a ‘Principal’ basis and to assist in their assessment of working capital movements in the

Consolidated Statement of Financial Position and Consolidated Cash Flow Statement. This measure allows an alternative view of growth in adjusted gross profit, based on the product

mix differences and the accounting treatment thereon. Gross invoiced income includes all items recognised on an ‘Agency’ basis within revenue, on a gross income billed to customers

basis, as adjusted for deferred and accrued revenue. A reconciliation of revenue to gross invoiced income is provided within note 4 to the Consolidated Financial Statements,

Segment Information.

The term Group refers to Computacenter plc and its subsidiaries.

Revenue £m

+23.6%

6,725.8 66.3 248.0

165.6160.9255.6

Adjusted

profit before tax £m

+27.5%

Dividend per share Pence

+30.8%

Diluted earnings per share Pence

+20.3%

Profit before tax £m

+20.0%

Adjusted

diluted earnings per share

Pence +31.0%

CIO

PEOPLE

BUSINESS

SOURCE

TRANSFORM

MANAGE

ENABLING

SUCCESS

BY BUILDING

LONG-TERM TRUST

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.

Strategic report

IFC 2021 highlights

02 Our customers

04 Chair’s statement

06 Chief Executive’s strategic review

08 Our strategic priorities

10 Our approach to market

17 Our business model

18 Technology Sourcing

22 Managed Services and Professional

Services

26 Our Performance in 2021

40 Sustainability strategy

62 Task Force on Climate-related Financial

Disclosures

65 Section 172 statement

65 Non-financial information statement

66 Stakeholder engagement

70 Group Finance Director’s review

80 Principal risks and uncertainties

Governance

87 Chair’s governance overview

88 Board of Directors

90 Corporate governance report

95 Nomination Committee report

97 Risk and internal control

99 Audit Committee report

106 Directors’ remuneration report

126 Directors’ report

131 Directors’ Responsibilities

Financial Statements

133 Independent Auditor’s Report to the

members of Computacenter plc

140 Consolidated Income Statement

141 Consolidated Statement of

Comprehensive Income

142 Consolidated Balance Sheet

143 Consolidated Statement of Changes

in Equity

144 Consolidated Cash Flow Statement

145 Notes to the Consolidated Financial

Statements

194 Company Balance Sheet

195 Company Statement of Changes in Equity

196 Notes to the Company Financial

Statements

202 Group five-year financial review

202 Financial calendar

203 Corporate information

204 Principal offices

Strategic Report

Annual Report and Accounts 2021

This sample of customer stories illustrates

the trust that our customers place in

Computacenter and the skills and experience

of our people.

We already had a strong

partnership with Computacenter,

but it was refreshing to see the

ideas they brought to the table

as part of the bidding process;

they didn’t just propose a

like-for-like service.

Sarah Hollis

Yorkshire Building Society

Computacenter ably demonstrated

why they are recommended by

Microsoft. Ageas UK now intends

to continue to work with

Computacenter to develop and

expand our partnership.

Mark Tyrrell

Ageas Insurance Limited

We have been working successfully

with Computacenter for a long time.

Our contacts are always happy to

think outside the box and establish

relationships with reference

customers. We’ve already reviewed

several other successful case studies.

Uwe R. Dietz

HUK-COBURG

Computacenter supported

us selecting and

implementing technology,

fully meeting our needs.

We have collaborated over

many years to achieve

our goals.

Bernd Huber

NetCom BW

Computacenter met its

commitments on critical

projects throughout the

health crisis.

Olivier Jecker

CHU Bordeaux

OUR CUSTOMERS

Computacenter TeraMach

was instrumental in

helping us build a world-

class network in a very

remote, isolated First

Nation community.

Peter Leaton

Sichuun Inc.

Sichuu

Computacenter can

provide IT experts of all

kinds, and we have taken

advantage of this.

Benjamin Stein

Hansgrohe SE

Computacenter has done

something no other partner or

OEM has been able to do, through

the team’s perseverance and

willingness to ‘do the right thing’.

Staying focused on the mission,

proof of concept and strategic value

speaks highly of Computacenter’s

maturity as a partner.

Allan Lamkin

Paul Hastings

Computacenter are a long-

standing supplier and partner to

the CAA and their knowledge of

our environment and the

systems in use made them the

outstanding candidate to deliver

the project.

Simon Sheeran

Civil Aviation Authority

Computacenter’s Cisco

expertise

and maintenance services provide

great support for our server and

network components. The

cooperation with the on-site

technicians is as smooth as the

support from the partner services:

High-Touch Expert Care at Cisco

Torsten Nöcker

Arvato Systems

We gave Computacenter an

opportunity to show what they

were capable of, and they

approached it in a really, really

professional way, delving into so

many areas we wouldn’t have

been able to do in-house.

Stephanie Roddy

Kellogg’s

ENABLING

SUC CE S S

BY DELIVERING

CONSISTENT

GROWTH

We are unwavering

in our focus on

continuing to

strengthen and grow

Computacenter to

enable the success of

all our stakeholders.

Peter Ryan

Chair

Chair’s

statement

We are extremely concerned and saddened

by the ongoing situation in Ukraine following

the invasion by Russia. We offer our deepest

sympathies and support to Ukraine.

Computacenter will be launching a campaign

page for its employees to donate to Disaster

Emergency Committee (DEC) – Ukraine

Humanitarian Appeal. Computacenter will

make a corporate donation and also match

funds raised by our employees.

Sanctions have been widely imposed by a

number of national governments and the

European Union on the Russian Federation,

related organisations and individuals

(Sanctioned Parties). We have undertaken,

as a consequence, a review of our operations

to ensure that we are not directly or indirectly

conducting business activities with Sanctioned

Parties, supplying sanctioned or restricted

goods or software services, or conducting

business activities with individuals and

organisations who are known to be closely

related to Sanctioned Parties. We have also

implemented review processes to ensure that

we modify our activities to adhere to any future

changes in sanctions requirements.

Whilst the scope of our business in Russia and

Ukraine is extremely limited, we recognise the

likely short- to medium-term impact of the

situation on the global macro-economic

environment, including an exacerbation of

supply chain issues currently being experienced.

Computacenter in 2021

The Computacenter team continued to

execute incredibly well in 2021 and delivered

our 17th consecutive year of adjusted

diluted

earnings per share (EPS) growth, which

was fitting as the Company celebrated its

40th anniversary.

Across the 40 years Computacenter has

navigated many trends in technology, adapted

to be able to deliver what customers valued,

evolved a culture that attracted great talent

and sustained an environment that persuaded

a significant number of our people to build

their careers here.

During this journey, the Company has

significantly expanded its technology partner

base, services portfolio, geographic markets

and customers it serves. This has created the

foundation for the sustained growth we

delivered in 2021. We are also pleased with

the performance of the acquired American

businesses and the addressable market

potential that it highlights.

The continuing Covid-19 pandemic

The global pandemic has continued to weigh

heavily on our people, customers, partners

and communities around the world and we

send our thoughts and best wishes to all those

who have been affected. The leadership team

has resolutely focused on both the human

and business aspects of this crisis, and

the results from our recent employee

survey indicate that this difficult balance

was achieved.

Financial performance and dividend

Revenue for the full-year increased to £6,725.8

million (2020: £5,441.3 million), with the Group

generating adjusted

profit before tax of

£255.6 million (2020: £200.5 million), and

adjusted

diluted EPS of 165.6 pence (2020:

126.4 pence).

We are proposing an increase in the final

dividend to 49.4 pence per share, reflecting

both our performance and confidence in the

outlook for the Group. If approved by

shareholders at Computacenter’s 2022 Annual

General Meeting, this will bring the full-year

dividend for 2021 to 66.3 pence per share. This

represents an increase of 30.8 per cent over

that paid for 2020. This remains in line with

our stated long-term dividend policy of paying

a dividend that is covered between 2.0 and 2.5

times by adjusted

diluted EPS.

The Group’s cash position finished strongly

at the end of the year, with adjusted net

funds

of £241.4 million as at 31 December

2021. The Board continues to review our

approach to capital allocation, so that it

ensures balance sheet efficiency and

appropriate returns for shareholders. Whilst

our use of cash continues to prioritise the

organic growth and development of our

business, and merger and acquisitions

activity which aligns with our strategy, where

available opportunities to invest in this way

are limited, the Board will consider returning

value to shareholders.

The Board in 2021

During 2021, there was one significant change

to the Board. Minnow Powell decided to retire

from his roles as Chair of the Audit Committee

and Non-Executive Director.

We followed a robust process to identify his

successor, led by the Nomination Committee

and assisted by an external search firm. This

produced an impressive and diverse list of

candidates and we were delighted to

announce the appointment of Pauline

Campbell as his successor as Audit Committee

Chair. Pauline had recently retired from a long

and successful career in the audit profession

with PwC.

Pauline’s appointment results in at least half

the Board (excluding the Chair) remaining as

Independent Non-Executive Directors. It also

means we have just over 33 per cent female

representation on the Board, in line with the

recommendations from the Hampton-

Alexander review.

Environmental, social and governance

The Board has continued its focus on

sustainability, diversity and inclusion and

ensuring our governance practices evolve.

These subjects are regarded as very

important by both the Board and the people

across Computacenter. You will find

considerable detail on our approach to

people (pages 44-51), planet (pages 52-61),

Governance (pages 86-131) and the

recommendations of the Task Force on

Climate-related Financial Disclosures (TCFD)

(pages 62-64).

In terms of concrete commitments, we aim

to be Carbon Neutral in 2022 for Scopes 1 and

2 emissions. Scopes 1 and 2 emissions include

all of our direct emissions, such as our

facilities and some of our indirect emissions

such as electricity purchased. This will be

achieved by a combination of increases in our

own renewable energy generation, continued

investment in energy-efficient lighting and

equipment, the purchase of electricity

generated by renewable sources and the

purchase of carbon offsetting credits.

The Board has also agreed a target of being

Net Zero for Scopes 1, 2 and 3 emissions by

2040, ten years ahead of our previous target.

Scope 3 emissions include all other indirect

emissions, including our business travel and

transportation, as well as those from sources

that we do not own or directly control,

including our supply chain.

The year ahead

We are unwavering in our focus on continuing

to strengthen and grow Computacenter to

enable the success of all our stakeholders.

I thank them all for their continued trust

and support.

The demand drivers for our business look

strong as we enter 2022. Many market

commentators have noted a global

acceleration in the efforts of governments

and businesses to take advantage of the

opportunities afforded by digital

transformation. This is true across all areas

of how organisations run their internal

operations effectively and how they engage

with their customers and broader stakeholder

communities. In concrete terms, there is more

demand for technology and services to

support the vast array of transformation

projects and this, combined with our business

momentum, makes us believe that 2022 will

be another year of continued progress.

Peter Ryan

Chair

23 March 2022

Strategic Report

Annual Report and Accounts 2021

0606

ENABLING

SUC CE S S

BY BUILDING

LONG-TERM TRUST

Strategic priority 1

To lead with and grow

our Services business

STRATEGIC PRIORITIES

I would like to take

this opportunity to

thank all of our people

for their hard work

and dedication, which

has been reflected

in the final result for

the year.

Mike Norris

Chief Executive Officer

Chief Executive’s

strategic review

2021 was an excellent year for

Computacenter. Our relentless focus on

understanding and addressing the needs

of our customers, and taking decisions that

prioritise the long-term success of our

Company, has again served us well. Our strong

in-year growth has been underpinned by

recent investments we have made. These

have spread the business geographically,

increased our productivity, broadened the

range of offerings we deliver for our

customers, and positioned us well to take

advantage of buoyant market conditions

during the year.

Our focus remains on consistent financial

performance and the delivery of value for

our stakeholders. Following the very strong

growth of adjusted

diluted EPS that the

Company achieved in 2020, we grew again by

over 30 per cent in constant currency

during

the year. The Group has now doubled its profit

over the past three years, a feat we last

achieved in the middle of the 1990s, prior to

becoming a public company.

Our financial success can only be achieved

through the delivery of superb quality to

our customers. I would like to take this

opportunity to thank all of our people for their

hard work and dedication, which is reflected

in our financial outcome for 2021, as well

as a recent independent survey of client

satisfaction carried out by Whitelane Research.

There has been high demand for Professional

Services skills across the Group, as many of

our customers have continued to roll out new

digital solutions to their users and their own

customers. Our ability to recruit and retain

employees in this area is therefore crucial to

our success. At a Group level, Computacenter

recruited 3,200 new people into our business

in 2021, bringing our total number of

employees to over 18,000.

While Professional Services was the main

driver of Services growth during the year,

we also saw improved performance from

our Managed Services business. We have

strengthened our offerings to the

marketplace, grown our off-shore capability

and increased the use of automation to

deliver solutions to customers. These

measures have both improved service to our

customers and resulted in the highest gross

margins we have ever achieved in this area of

the business.

Technology Sourcing saw significant demand

for software and hardware across all of our

main operating geographies, as customers

invested in new technology to support their

businesses. While supply chain shortages

were an issue, these gave us an opportunity

to outperform our competition through the

performance of our well-developed supply

chain. Many of our larger customers are highly

reliant on deploying new technology and they

have taken to ordering much further in

advance. While this gives us greater visibility,

it has also meant an increase in the inventory

we are carrying. We do expect our inventory to

return to more normal levels as supply chain

constraints ease. We have continued to invest

in our Integration Centers to increase service

quality and throughput volumes, as we expect

demand to continue to grow.

Our German business had an outstanding

year and continues to go from strength to

strength, particularly in Professional Services

and Technology Sourcing. We performed

solidly in the UK, with some major renewals

and an outstanding performance from

Technology Sourcing. In France, although our

performance was slightly disappointing, we

successfully integrated the acquisition we

made in late 2020. The financial performance

of the acquisition was in line with expectations,

and we are confident we will turn this around

in the coming years. We saw a significant

upturn in performance from our Belgian

business, as well as better performances

from our businesses in the Netherlands

and Switzerland.

In North America, we have brought together

the acquisitions made in 2018 and 2020.

Although there remains work to do on

integrating back-office systems, the

Management teams are now highly integrated.

We are extremely excited by the opportunity

for future organic and inorganic growth in

North America and very pleased with the 2021

performance there.

Throughout 2021, we continued to invest in

our operations, particularly in India, Romania,

Poland and South Africa. We now have a total

workforce in near-shore and off-shore

operations of approximately 3,000 people.

The strong cash generation we have achieved

over many years continued last year, despite

the increase in inventory. The strength of

our balance sheet gives us strategic

options as we move forward, either through

further acquisitions or the return of cash to

our shareholders.

Our Management team remained unchanged

throughout 2021. Kevin James, who first

started at Computacenter in 1990 and has

been our Chief Commercial Officer for the last

four years, has decided to retire at the end of

the first quarter in 2022. I would like to thank

Kevin for his loyal and dedicated service to

Computacenter and congratulate John Beard,

who steps up into Kevin‘s role. John joined

Computacenter as a graduate trainee back

in 1995 and is a great example of our strength

in depth. Computacenter’s continued

investment in people over many years has

enabled this smooth transition, along with

many others, and holds us in good stead for

the future.

As always, I would like to thank our customers

for the faith they continue to show in us. We

will always remember that they have a choice.

Our job is to make sure that their decision to

place business with Computacenter above the

competition is the right one.

We look forward to the challenge of 2022 and

continuing our success.

Mike Norris

Chief Executive Officer

23 March 2022

Strategic priority 4

To innovate our

Services offerings

to build future

growth opportunities

Strategic priority 3

To retain and maximise

the relationship with

our customers over the

long term

Strategic priority 2

To improve our

Services productivity

and enhance our

competitiveness

Strategic Report

Annual Report and Accounts 2021

We go into 2022 with a Contract Base of £821 million. Our

Managed Services business has seen more progress in 2021

than it has for a number of years and while customer demand

to reduce cost has continued the deflationary pressure on the

business, our efforts to win market share have more than made

up for this.

Progress in 2021

Our Contract Base was up from £798 million to £821 million in

constant currency at the end of 2021, which was entirely due to

organic growth. We have been pleased with how successfully

we have onboarded new contracts, from both a customer service

and financial viewpoint.

Target for 2022

The momentum that has built up in our business in 2021 and

the weakness of some competition in the marketplace gives us

confidence for further growth in the coming year. We must

continue our drive for automation and offshoring, to enhance our

competitiveness and win market share.

How we define Services Contract Base

This is the annual value of our committed Managed Services

contract spend as at the year end.

The prior-year comparatives are restated on a constant currency

basis to provide a better indicator of underlying growth.

Technology encourages standardisation and commoditisation.

Organisations such as ours must therefore differentiate the

way we deliver value to customers. We do this by rigorously

applying effective processes and utilising the right resources,

including automation and robotics, in suitable locations.

This allows us to best meet the needs of our global customers,

at a competitive price.

Progress in 2021

The progress we have made in Services revenue per head over

the last few years, and particularly in 2021, has arguably been

our greatest success. This has enhanced our margin in both

Managed and Professional Services, due to high utilisation and

the steady growth in automation within our business, and is

highly encouraging.

Target for 2022

While we believe progress in this area will continue in 2022, any

further gains will be more difficult to achieve, given that we have

already removed significant problem contracts.

How we define Services revenue generated per Services head

This is our Group Services revenue divided by the number of

employees directly involved in providing either our Managed

Services or Professional Services offerings.

The prior-year comparatives are restated on a constant currency

basis to provide a better indicator of underlying growth.

To lead with and grow our

Services business

To improve our Services

productivity and enhance

our competitiveness

Services Contract Base £m

+2.9%

821

Services revenue generated per Services head £’000

+10.5%

105.5

2021

2020

2019

2018

2017

105.5

95.5

91.2

87.4

88.5

2021

2020

2019

2018

2017

821

798

780

772

748

Strategic priority 1 Strategic priority 2

Our strategic priorities

Computacenter focuses on the large account market in both

the public and private sectors, and looks to maintain these

customers for the long term. The number of large customers

we have is directly related to our long-term profitability.

Growing the number of customers who contribute more than

£1 million of margin is therefore a key driver for Computacenter.

Progress in 2021

We finished 2021 with 165 customers generating greater than

£1 million of gross margin, up by 10 customers on the previous

year. This growth was entirely organic and particularly strong in

the UK and Germany, our most established businesses.

Target for 2022

We have invested heavily in our sales force across western

Europe over the last two years to enable further gains within our

established businesses, which we hope to see continue in 2022.

This is coupled with the significant upside opportunity in North

America, where the opportunity for market share gain is vast.

How we define customer accounts with contributions of

over £1 million

A customer account is the consolidated spend by a customer

and all of its subsidiaries. Where our customer account exceeds

£1 million of contribution to Group gross profit, it is included within

this measure.

The prior-year comparatives are restated on a constant currency

basis to provide a better indicator of underlying growth.

Annual Services revenue, which comprises our Managed

Services and Professional Services businesses, is the key

measure for this strategic priority. Our portfolio and Services

development activities are focused on improving our

differentiation and building competitive advantage, laying

the foundation for future Services growth.

Progress in 2021

The growth of 17.8 per cent was assisted by our two acquisitions

in November 2020. However, we still saw organic growth of 9.2 per

cent. While our Professional Services business continued its

strong gains of recent years, it was encouraging to see our

Managed Services business producing an enhanced performance.

Target for 2022

Our ability to hire people in our core geographies, particularly

certain skills, will always be key to growth within the Services

business. However, this is a challenge we have stepped up to in

recent years and we intend to continue to meet it. There is a major

opportunity to increase our Services share within our North

American business, which is very underdeveloped compared to

Europe. While this will take longer than a year, we are looking to

make progress in 2022.

How we define Services revenue

Services revenue is the combined revenue of our Professional

Services and Managed Services business.

The prior-year comparatives are restated on a constant currency

basis to provide a better indicator of underlying growth.

To retain and maximise

the relationship with our

customers over the

long term

To innovate our Services

offerings to build future

growth opportunities

Number of customer accounts with contributions

of over £1 million

+6.5%

165

Services revenue £m

+17.8%

1,451

2021

2020

2019

2018

2017

165

155

131

116

107

2021

2020

2019

2018

2017

1,451

1,231

1,215

1,156

1,143

Strategic priority 3 Strategic priority 4

Strategic Report

Annual Report and Accounts 2021

OUR COMPLETE

CUSTOMER OFFER

Our comprehensive capabilities help

customers to Source, Transform and

Manage digital technology across the

domains of workplace, applications &

data, cloud & data center, networking,

and security.

SOURCE

Our powerful partnerships with the leading

technology partners in the market allow us

to help our customers make informed and

wise choices in the selection of digital

technology. With the investments in our

Integration Centers, underpinned by our

people, systems and processes, we can

help our customers to integrate and deploy

digital technology at scale across the world.

Increasingly, our customers are asking us

to take more responsibility in this area and

help them deliver faster, both for their

people and to underpin the digital

strategies for their businesses.

TRANSFORM

By combining leading technology from our

technology partners with the skills of our

own project managers, consultants,

engineers and test facilities, we support

customers from initial planning through

to their digital transformations going live.

We provide end-to-end solutions and

Services, within or across the five

technology domains, which enable genuine

realisation of business goals. Our

engagements range from long-term

complex transformation programmes to

shorter-term or expert-leasing based

consulting and implementations.

MANAGE

We use a broad range of operational skills,

across our network of international Service

Centers and distributed engineering teams,

to operate and manage our customers’ IT.

This increases quality and flexibility, while

reducing costs. Our Services currently

deliver engagement and enablement for

over 3.7 million users.

Across all domains of our portfolio, we sell

defined Managed Services, with related

service-level agreements and either fixed

or consumption-based pricing. Where

customers want more flexibility or control,

we also provide support and skills on a

more transactional basis. Complementing

our Technology Sourcing services,

we offer a range of product lifecycle

and maintenance Services, often on

a per-device basis.

EVOLVING

A DIFFERENTIATED

AND COMPLE TE

CUSTOMER OFFER

Our customers are confident in our skills and

capabilities to help them make the right choices in the

complex and fast-changing world of digital technology.

To maintain this trust, we invest to stay relevant and

competitive and ensure we have a complete offering

of services, which we can deliver at scale.

This section describes Computacenter’s breadth

of capability and our go-to-market messaging.

Members of the Group

Development team

Our approach to market

TRANSFORM

SOURCE

MANAGE

Workplace Cloud &

Data Center

Applications

& Data

Networking Security

OUR BREADTH OF SKILLS

Our portfolio of Sourcing, Transformation

and Managed Services spans all relevant

infrastructure areas, ensuring our

customers have access to a reliable,

secure and flexible technology platform

to accelerate their business.

SERVICE CENTERS

Our Service Centers deliver a range of

shared and dedicated capabilities including:

Service Desk

Our goal is to provide a faster and smarter

response to people. We deliver end-to-end

support, locally and globally, and provide

a ‘follow-the-sun’ service. Our global

Service Desks handle over 1.1 million

contacts per month, using 25 languages,

at a price point and quality tailored to meet

customer priorities. We leverage analytics,

chatbots and intelligent automation to

improve our agent productivity and each

customer’s experience.

Remote Infrastructure Management

The scale of our operation means we can

support users and systems anywhere in

the world, 24 hours a day, seven days a

week. From private and public clouds to

user devices, our infrastructure services

manage and improve availability,

performance and security.

Field & Maintenance Services

Our field engineering operations allow

customers access to both dedicated and

on-demand engineering to support both the

deployment of new technology and ongoing

support of both infrastructure and users.

Our engineering teams are supported by

partners in both our larger operating

countries and worldwide, allowing us to scale

quickly to meet peaks in customer demand

as well as offering customers global reach.

Our field engineering teams are supported by

maintenance logistics operations for

infrastructure support.

Professional Services Hubs

From our remote Professional Services Hubs

in Romania and India, we help customers

assess their current IT environment,

identify improvement potential, implement

and integrate new technologies, and

migrate solutions to the latest version

or a new platform.

Both the near-shore hub in Romania

(centred on Cluj and with a large portion of

German speakers) and the off-shore hub in

India (centred on Bangalore) give us access

to skills, as well as cost arbitrage benefits.

Integration Centers

Our Integration Centers act as a critical

link in supporting customers to manage

the deployment of new technology.

We provide logistical services including

stock-holding to help manage product

availability and schedule deliveries, as well

as technical services to configure and

integrate technology from different

technology partners.

These are complex and scalable operations,

underpinned by our IT infrastructure, and

provide a bridge between our Technology

Sourcing and our Services businesses.

As we continue to build our Integration

Center capabilities internationally, we can

also help customers to address their

sustainability challenges by minimising the

shipment distances for supply of product.

Strategic Report

Annual Report and Accounts 2021

OUR STRATEGIC PROPOSITIONS

We reflect the voice of the customer by

consolidating our broad portfolio of

capabilities into four strategic go-to-market

propositions, designed to address an

emerging market trend with a specific value

proposition and vision.

Digital Me

Workplace

Designed for people and engineered for business, our

workplace solutions accelerate the digital agenda with

agile technology that unleash the power of people and

enable business success. Our solutions are increasingly

underpinned by analytics, artificial intelligence (AI)

and automation, to reduce cost and provide a proactive

digital experience.

• EquipMe: Appropriate technology for effective working

– Technology Sourcing

– Modern device management

– Application lifecycle management

• EmpowerMe: Intuitive collaboration for increased

productivity

– Cloud productivity suites

– Enterprise content management

– Collaboration solutions

• AssistMe: Intelligent support aligned to personal

preference

– Service Desk

– Smart on-site Services

– Analytics and automation

Digital Power

Cloud & data center

We provide sourcing, advisory and support Services that help

our customers to navigate their cloud and data centers,

building platforms that power their business. For some, this

means building out platforms that support the rapid growth

that their success in the global digital economy is delivering.

• Applications and data

• Service management platforms

• Cloud native platforms

• Multi-cloud

• Public cloud

• Server and storage

• Converged and hyperconverged infrastructure

• Software-defined infrastructure and networks

• Next generation data centers

AssistMe

INTELLIGENT SUPPORT ALIGNED

TO PERSONAL PREFERENCE

EquipMe

APPROPRIATE TECHNOLOGY

FOR EFFECTIVE WORKING

EmpowerMe

INTUITIVE COLLABORATION

FOR INCREASED PRODUCTIVITY

ACCELERATE DIGITAL BUSINESS

ADOPT PUBLIC CLOUD ENABLE MULTI-CLOUD

MODERNISE THE DATA CENTER

Our approach to market

continued

Digital Trust

Security

Our customers continue to face an ever-expanding cyber

threat landscape, with more demanding compliance

requirements and a shortage of security talent to address it.

We have the skills and partnerships to deliver end-to-end

security solutions, helping our customers protect their data

and information, secure their workplaces and people, defend

their technology platforms and achieve compliance and

manage IT risk. We enable public sector, industry and service

organisations to undertake digital transformation securely.

• Cyber defence Services

• Identity and access management

• Infrastructure security

• Workplace security

• Internet of Things (IoT) security

• Cloud security

• Industrial security

• IT governance, risk and compliance

Digital Connect

Networking

We provide Technology Sourcing, Professional Services and

Managed Services expertise, with innovation and delivery

across every aspect of enterprise networking for large

corporates and public sector organisations, from business-

critical data centers, to local and wide-area wireless,

to industrial networks.

• Software and automation are at the core of every

future-proof network architecture

• Increasing demand for unrestricted access to Services

and applications; anytime, anywhere

• Hybrid IT and multi-cloud becoming the norm for the

data center

• Increasing regulatory requirements and accelerated

demand for enterprise security

• People, devices and everyday objects connected, to

increase collaboration and efficiency

• New devices and smart sensors necessitate a different

approach to networking

Strategic Report

Annual Report and Accounts 2021

Major trend 1

Speed

Agility becoming a

competitive advantage

While we see customers investing in IT,

they continue to face pressure to deliver

efficiencies and return on investment.

At the same time, what was on top of our

customers’ agendas yesterday may not

be there tomorrow: the global pandemic

has stressed the importance of

adaptability at pace. Organisations are

adopting new change methodologies,

and IT departments have to innovate at

speed, in order for their organisations to

remain serious contenders in the

marketplace. To do so, they are also using

technologies where service is primarily

provided with or through software, and

augmented with analytics and AI.

What this means for Computacenter

Being independent of our technology

partners remains a key strength for us.

We can assess our customers’ business

requirements quickly and help them to

select and integrate the appropriate

solution and service model, in an

increasingly complex environment. At the

same time, we need to keep up with the

pace of innovation and invest in new

skills, so that our offerings remain

relevant to our customers.

“In 2020, the Covid-19 pandemic gave

multiple organizations an impetus for

change, and it may be a catalyst for

changes already taking place in the

nature of work. The crisis has been for

many companies a wake-up call to finally

get moving. Now we see potential to go

beyond traditional transformation and

move toward agility.”

McKinsey & Company, Organizing for

speed: Agile as a means to

transformation in Japan, Nov. 2020

Major trend 2

Resilience

Ensuring secure digital delivery

The accelerated adoption of new and

sometimes immature technologies, as

well as remote working models during the

pandemic, increases the risk of security

and privacy breaches. Additionally, our

customers have to react to changing

regulatory requirements and security

legislation. To protect themselves from

financial and reputational losses and to

meet compliance requirements,

customers often implement rigid and

fragmented security concepts that

inhibit innovation and fast reactions to

market changes.

What this means for Computacenter

Our strong security practice, with over

200 security consultants, represents a

competitive advantage and differentiates

us from many of our competitors. We help

our customers to implement an end-to-

end security concept, allowing them to

stay ahead of criminal threats and remain

compliant with regulatory requirements.

“Technology plays a central role in society

today. It supports initiatives by business

and government, enables worldwide

communications and drives innovation.

As technology has become more prevalent,

so has the reality of cyber attacks

targeting corporations, governments and

individuals. Over the last five years, the

World Economic Forum has consistently

rated cyber attacks as a substantial global

risk and the latest reports from ENISA

further highlight the complexity of the

threat landscape, suggesting that these

attacks are increasingly sophisticated,

targeted and widespread.“

ENISA (European Union Agency for

Cybersecurity), Addressing the EU

Cybersecurity skills shortage and gap

through higher education, Nov. 2021

THE COMPETITIVE MARKET

In addition to the major trends described

above, a number of factors are influencing

the way we compete in our markets.

Market segments – Save to innovate

With IT budgets staying flat or growing very

slowly, IT decision makers need to reduce

costs in order to fund new digital initiatives.

Procurement departments also push to

reduce costs in existing contracts and

legacy platforms, which puts pressure on

renewals, and we therefore continue to

drive efficiencies in our scale operations to

remain competitive. This includes various

initiatives from implementing automation

to significant investments in our off-shore

Service Centers.

At the same time, we help Chief Information

Officers to select, implement and manage

technology platforms such as multi-cloud, big

data and the IoT, to become the foundation for

new digital business models and applications.

Our ability to select the right solutions from a

wide range of options, paired with our security

and networking skills, put us in a good position

to exploit these digital business markets.

Shifting buying centres

The traditional buying centres in our industry

are our customers’ IT and procurement

departments. However, customers are now

STAYING ABREAST OF CHANGES

IN THE GLOBAL MARKET

To stay competitive, our customers need to

respond faster and more effectively to

changing business conditions and

unpredictable external factors. This means

they have to innovate and enrich the digital

experiences of their people and customers,

in a secure and sustainable manner.

In turn, we need to act with pace and

confidence, to help our customers make the

most of their existing technology and select

new investments that support their digital

agenda, in this increasingly complex and

fast-changing environment.

This section looks at the major trends that

are changing our markets and considers our

competitive environment.

Five major trends are shaping our

markets worldwide.

Our approach to market

continued

Major trend 3

Disruption

Technology innovation

delivering impact

Too often we see companies that fail to

move forward, allowing competition to

move in swiftly. There is no time to stand

still, especially with the rise of ‘unicorn’

businesses disrupting industries.

Thanks to the unparalleled speed of

technological advancement and mass

business digitalisation, start-ups are

now able to reach unicorn status in less

time than ever before, posing a real

challenge to traditional businesses.

Hence, organisations must connect their

business directly to the IT function and

the IT function must understand how its

services directly influence market share

and profits. This continues to drive new

ways of working, service delivery and

productivity, for both future unicorn

businesses and traditional organisations.

What this means for Computacenter

We have a competitive advantage

through our proximity to customers, our

long-term relationships with them, our

understanding of their business

requirements and our flexibility to provide

technology and service options specific

to those requirements. To continue

enabling success for our customers,

Computacenter will invest to build

vertical-specific skills and know-how.

“Emerging technologies have become key

enablers of competitive differentiation

and catalysts for transforming many

industries. Understanding shorter-term

technology trends, with proven use

cases and business outcomes, is just

the beginning of the value technology

innovation brings to the enterprise.”

Gartner, Predicts 2022: 4 Technology Bets

for Building the Digital Future, Dec. 2021

Major trend 4

Experience

Transforming customer

and employee experience

Disruption has accelerated the

requirement for new, digital experiences

for both customers and employees.

Both groups are becoming more diverse,

more mobile and more distributed, using

a large variety of devices, technologies

and applications to access their work

environment and to purchase products.

To improve both employee engagement

and customer satisfaction and loyalty,

organisations will have to explore

these new technologies and accelerate

their adoption.

What this means for Computacenter

Customers can benefit from our broad

technology skills, which include

automation solutions such as Blue Prism

and UiPath, as well as the ServiceNow

Centre of Excellence we built with the

acquisition of TeamUltra. Our end-to-end

portfolio covering front-end

collaboration tools and technologies,

as well as modern back-end application

platforms, is a true asset for supporting

customers to implement a seamless,

total experience for their employees

and customers.

“The adoption of digital technology and

migration to distributed enterprise,

where employees work from anywhere,

has been unprecedented during

2020/2021. For the hybrid or remote

digital worker, technology is the primary

means by which they interact with

colleagues, managers and customers.“

Gartner, Innovation Insight for the Digital

Employee Experience, Dec. 2021

Major trend 5

Sustainability

Social purpose influencing

strategic decision-making

Sustainability is becoming an important

factor in strategic decision-making for

our customers. Customers will want to

do business with responsible suppliers

who have the same level of commitment

to sustainability as themselves.

What this means for Computacenter

Computacenter’s sustainability strategy

‘Winning Together for our people and our

planet’ is closely linked to Our Values and

Our Purpose. It is based on three pillars:

People – supporting our people

and communities. We aim to deliver

positive social impact, with a focus on

our employees.

Planet – ensuring sustainable

operations. We take a responsible

approach across our operations,

including our direct and indirect

environmental impact and oversight

of our supply chain.

Solutions – offering sustainable

customer solutions. We help our

customers with their sustainability goals

through our service offerings with a

focus on Circular Services.

Our sustainability strategy is discussed

in more detail on page 40 of this report.

shifting to include other parts of their

business, as digital transformation rises to

the top of all their departments’ agendas.

While this shift is real and we are adapting

with new value propositions, we believe it is

happening slowly and our core Services will

continue to provide ongoing differentiation

and genuine value for our customers.

Substitutes

Organisations that had previously bought

their own networking and data center

infrastructure are now able to substitute

them with cloud-based services. This could

affect demand for our Technology Sourcing

business over the coming years. However, the

process of moving to the cloud offers

considerable Professional Services

opportunity and the knock-on effect for

customers’ network, security and workplace

environments will support growth in all parts

of our portfolio associated with those

technology areas. In addition, many

hyperscale cloud providers themselves are

among our customers.

Partner ecosystems

With shifting buying centres and the trend

to cloud computing and hybrid IT, customers

want solutions covering all aspects from

infrastructure to applications, as well as

business adoption. In response, we continue

to expand our portfolio, and our partnerships

in particular, building on those we already

have with the world’s leading technology

partners and the mature processes to adopt

partner technologies and take them to

market. We will also continue to integrate

services partners, to ensure a

comprehensive Services portfolio.

Strategic Report

Annual Report and Accounts 2021

HOW WE CREATE

SUSTAINABLE VALUE

Computacenter is a leading independent

technology partner, trusted by large

corporate and public sector organisations.

We help our customers to Source, Transform

and Manage their technology infrastructure

to deliver digital transformation, enabling

people and their business.

Our business model is customer-centric,

based on enabling success by building

long-term trust with our customers, our

people and our partners. This underpins

our value to our communities and our

shareholders. In doing so, we leverage the

long-term investment in our infrastructure

and physical assets and place great

confidence in the depth of skills and

knowledge of our teams.

Our customers

We deliver digital technology to some of the

world’s greatest organisations. Our target

market is the largest 1,000 corporate and

government organisations in each of the nine

countries in which we sell. Our operational

model supports this aim through having

account managers, sales specialists,

consultants, and project and service

managers aligned to our customers, to build

strong customer intimacy. We give our

customer teams the freedom to make

responsible decisions that meet customer

needs faster. The majority of our customers

have been trading with us for over 10 years,

showing the value of these trusted

relationships and our financial stability. We

have a balanced spread of business with most

of our customers, supporting them through

Technology Sourcing, as well as Professional

and Managed Services, as each part of our

customer offering supports the others.

More information about how we create value

is on pages 10 to 16.

Our people

Together, we have created a can-do culture

where people matter and are encouraged to

thrive. Computacenter employs over 18,000

people worldwide. This includes more than

5,000 engineers, 5,000 support operatives in

our Service Centers, 1,600 project and service

managers and 1,600 consultants. These

service delivery teams are backed by the skills

and experience of our sales and business

services teams. Our aim is that people want

to join and stay with us, and be proud of our

reputation, as we learn, earn and have fun.

More information about how we attract, retain

and develop our people is on pages 44 to 51.

Our partners

We have built powerful partnerships with the

world’s leading technology partners, who can

rely on our reach and scale. We are among the

largest partners in EMEA for each of the

technology partners, who are increasingly

recognising us for our achievements at a

global level. We use our technology

understanding to build solutions for our

customers across all parts of our portfolio.

We aim for our customers to be confident in

our skills and solutions and trust in our

independence and experience. This means we

can help our customers to make wise choices

in a complex and changing world.

More information about our partners and

Technology Sourcing is on pages 18 to 21.

Our brand

Our brand and reputation are underpinned

by our Winning Together Values. We maintain

a strong brand by putting customers first,

being straightforward, keeping promises

and considering the long term, while

understanding that people matter and

inspiring success.

Our Purpose is Enabling Success by building

long-term trust with our customers, people,

technology partners, and communities.

We aim to be strongly recommended by

customers for the way we help them achieve

their goals, ensuring customer referenceability.

Where we make acquisitions, we usually

transition the acquired business quickly to the

Computacenter brand and embed our values.

More information about our values can be

found on page 45.

Our infrastructure and physical assets

We sell to customers in nine countries and

have supporting near-shore and off-shore

operations in another seven countries. We

have entities or VAT registrations in another

eight countries or territories. We source for,

and support, customers across more than 70

countries worldwide. Our customers demand

that our operations are delivered to high

industry standards and we have a range of

ISO certifications, including ISO 27001, ISO

9001, ISO 20000-1, ISO 14001 and ISO 45001.

Our Service Centers and Integration Centers

are indicated on the map located on the inside

front cover of this document.

Our Service Centers help us to support our

Managed Services contracts. They are

underpinned by a common technology

infrastructure, to allow customers to be

supported by multiple centers.

Our Integration Centers allow us to stage, test

and integrate technology for our customers

around the world.

We have a number of underlying systems that

support our business, including our SAP ERP

solution, systems that connect us to our

customers’ sourcing functions, and systems

that underpin our Managed Services.

Our propositions

We drive engagement with our customers

through our strategic propositions, which are

underpinned by a range of service offerings

designed to deliver solutions to our customers.

More information about these can be found on

pages 12 to 13.

Our approach to market

continued

Our resources

Our leverage

Creating value for all our stakeholders

Customers People Communities Partners Shareholders

The skills and

experience of our people

Digital technology

from our partners

Brand Propositions Infrastructure

and physical assets

BUSINESS MODEL AT A GLANCE

Making all of the elements of our business model work together.

Our customer offer sits at the

heart of our business model

See page 10 for more information

CIO

PEOPLE

BUSINESS

SOURCE

TRANSFORM

MANAGE

Our Purpose

Service

Centers

Our Values

Vendor

independence

Service

offerings

Target

market

Integration

Centers

Powerful

partnerships

Delivery

quality

Scale

Reliable

infrastructure

Worldwide

reach

Financial

stability

Sustainability

strategy

Strategic Report

Annual Report and Accounts 2021

Technology Sourcing

OUR PARTNERS

CAN RELY ON OUR

REACH AND SCALE

Technology Sourcing is our traditional core business

and we continue to see it as both fundamental to our

customers and a significant growth driver. We help

our customers to determine their technology needs

and, supported by our technology partners, we

provide the commercial structures, integration and

supply chain services to meet those needs reliably.

We earn revenue from large contracts, with thinner

margins and lower visibility than for Services, but

with amazing customer loyalty, which we earn

through reliability, agility and scale.

Integration Center – Livermore, United States

Our facility next to Silicon Valley, close to major

hyperscale customers.

Integration Center – Hatfield, United Kingdom

Technical Services: volume configuration.

OUR INTEGRATION CENTERS

Zurich,

Switzerland

Livermore,

United States

Kerpen,

Germany

Hatfield,

United Kingdom

Gonesse,

France

Brussels,

Belgium

Bodegraven,

Netherlands

Alpharetta,

United States

Members of the Group

Technology Sourcing team

Integration Center – Kerpen, Germany

Long-term investment in the German market through our Kerpen facility which opened in 2020.

We provide our customers with huge flexibility,

adapting our processes to fit their often very

specific quotation, order management,

shipment, receipt and documentation

requirements. This flexibility comes from our

significant long-term investment in our

people, systems and Integration Centers.

Our supply chain services range from

pre-configuration of all types of technology

to end-of-use management. Our customers

value our ability to support them across the

entire hardware and software lifecycle and to

act as a partner who can deliver at scale and,

increasingly, globally.

Growth drivers

A number of key drivers in the market are

underpinning our customers’ continuing

investment in new digital technology. In

particular, our customers want to:

• modernise their workplaces, to enable

people through better technology

that attracts and retains talent,

increases collaboration and drives closer

customer proximity;

• transform their legacy applications, data

centers and processes, and adopt cloud

technology, to be more scalable, flexible

and agile;

• ensure that their networks and

communications can support their

digitisation and future operational models

and that everything is secure; and

• connect their people, data and IoT devices,

to better leverage existing know-how and

improve the efficiency and productivity of

their workforce.

Technology Sourcing is a service

We integrate and deploy across workplace,

data center, networking and security. Our

investment in Integration Centers in the

United Kingdom, Germany, France, Belgium,

the Netherlands and the United States gives

us the scale to meet the most demanding

customer requirements.

The importance to our customers of the scale

and resilience of our Integration Center

infrastructure was demonstrated in 2020 by

our ability to support their deployment of new

technology at incredible pace, in response to

the Covid-19 pandemic. The customer demand

for our Integration Center services has

continued through 2021 with high utilisation

and workload driven by both the volume of

customer deployment projects as well as

helping customers by managing inventory

availability, as global supply chains have

remained challenged.

Our customers are

increasingly relying

on our ability to help

them manage product

availability while

deploying technology

internationally and

at scale.

Kevin James

Group Chief Commercial Officer

Strategic Report

Annual Report and Accounts 2021

Technology Sourcing

continued

Computacenter’s long-term investments in

systems and infrastructure have positioned

us as a trusted partner for major organisations

needing to deploy technology at scale. In 2021,

we have continued to invest in our capabilities:

• We have significantly upgraded the IT

network and security at each of our main

European Integration Centers to allow us

to download Autopilot configurations for

customers, reducing the time taken by

users when receiving new devices.

• We have gone live with a new export

compliance system across the Group that

automates the compliance process when

exporting items from an Integration Center

in one country to another.

• We have started the rollout of new

quotation and opportunity management

systems across the Group.

• In March 2021, we acquired ITL logistics,

a German business which employs 80

people, to strengthen our supply chain

capabilities in Germany and the European

Union. ITL logistics operates regional

warehouses where IT products are held,

configured, repaired and disposed of and

also operates its own IT logistics fleet with

technical couriers who deliver and collect IT

products across Europe. These capabilities

are being integrated into our supply chain

solutions and Circular Services solutions in

Germany, providing greater flexibility and

improved service levels for our customers.

Powerful partnerships

The increasing pace of technological change

and the diversity of the technology partner

landscape has made our technology partner

independence more critical to our customers.

We are trusted to provide impartial and

knowledgeable advice and to integrate

solutions comprising products from multiple

technology partners.

Computacenter is one of the largest value-

added resellers (VAR) worldwide for most of

the major technology partners. We invest

heavily in working closely with them, to ensure

we can effectively help our customers to

Source, Transform and Manage their IT

infrastructure. The breadth and depth of our

technology partnerships allows us to help our

customers navigate the complexity and speed

of change in the current market.

Our expertise in our technology partners’

solutions is significant, with our people

holding more than 12,000 technical

certifications. Our strong working

relationships and our desire to collaborate

and seek innovation and new services help us

remain relevant, so we are increasingly seen

as the partner of choice.

Through our close working relationships with

technology partners and major customers we

are helping to minimise the impact of global

industry supply chain issues, which we expect

to continue throughout 2022.

We are not just working with our established

technology partners. There is increasing

demand for new technology partners and

innovative approaches, which are often

integrated with core partner technology to

provide complete solutions. Our ability to

design, source, integrate, deploy and support

means we can add material value in delivering

new digital solutions. This is reflected in

another year of awards and recognition

across the Group.

For example:

Cisco – 14 awards overall including

– Global Enterprise Partner of the Year

– EMEAR Partner of the Year

– EMEA Security Partner of the Year

– DE Partner of the Year, Enterprise Partner

of the Year

– UK Partner of the Year, Enterprise Partner

of the Year, Security Partner of the Year

– FR Capital Partner of the Year

– BE CX Partner of the Year

– Canada Breakout Partner of the Year

Dell Technologies – EMEA Partner of the Year

F5 – DE Partner of the Year

HPE – US Solution Provider of the Year

HPE – Northern Europe Solution Provider

of the Year

HP Inc. – UK 5

Sustainability Award

Microsoft – Global Surface Partner of the Year

NetApp – Awarded Global Star Partner

NetApp – EMEA Partner of the Year

Samsung – UK Elite Partner of the Year

VMware – EMEA Partner of the Year

ITL logistics – Germany

The acquisition of ITL logistics in Germany helps improve our supply chain flexibility and service levels.

Gold Integrator

Our established technology partners

We hold over 200 technology accreditations and our people hold over 12,000 technical certifications.

Group annual sales event – Manchester, United Kingdom

Building Powerful Partnerships with the world’s leading technology partners.

Strategic Report

Annual Report and Accounts 2021

OUR CUSTOMERS

CAN BE CONFIDENT

IN OUR SKILLS AND

EXPERIENCE

We employ over 13,000 people globally to deliver services

to our customers. These range from IT strategy, advisory,

transformation and deployment services (Professional

Services) to support, maintenance and managed

services (Managed Services).

SELECTION OF OUR

SERVICE CENTERS

Members of the Group Delivery and Group

Commercial Management teams

Milton Keynes,

United Kingdom

Barcelona,

Spain

Poznan,

Poland

Montpellier,

France

Kuala Lumpur,

Malaysia

Budapest,

Hungary

Berlin,

Germany

Bangalore,

India

Cape Town,

South Africa

Mexico City,

Mexico

In 2021, we have

continued to

demonstrate the

resilience of our

infrastructure, the

benefits of the scale

of our operations

and the skills and

commitment of

our people.

Julie O’Hara

Group Delivery Director

Managed Services and Professional Services

Group Delivery – London, United Kingdom

Group Delivery extended leadership team meeting.

MANAGED SERVICES

We maintain, support and manage IT

infrastructure and operations for our

customers, to improve quality and flexibility

while reducing costs. Despite competitive

pricing in the market, our revenue under

contract has high visibility, is long term and

stable. We see this recurring income as a

strategic means of balancing our business,

as well as being essential to our Source,

Transform and Manage customer offer.

Customers ask us to reduce their costs by

running some of their support operations,

as well as taking end-to-end responsibility for

sourcing, deploying, transforming and then

providing the ongoing managed support of

digital projects.

We have continued to improve the

predictability of our Services, to the benefit of

our customers and our own business. As our

customers’ businesses continue to evolve and

be challenged, we will continue to adapt our

offerings to remain relevant and competitive.

We see significant opportunities to add value

to our customers.

Our Service Centers are the core of our

Managed Services capability and we have

continued to invest in improving and updating

the technology underpinning them. We have

completed the implementation of a

ScienceLogic-based support platform for

our infrastructure operations and continued

development of our Artificial Intelligence,

Automation and Analytics (AIMY) collection

of tools.

We are also making a significant investment

in a ServiceNow-based global solution to

modernise the way in which we can deliver

workplace services, including Device-as-a-

Service (DaaS), integrating our services from

Service Centers, Integration Centers and field

engineering. We expect this solution to be

supporting key customers from 2022.

While the pandemic demonstrated the

resilience of our Services and infrastructure,

we are also investing to ensure that our core

IT Service Management (ITSM) systems are

modernised and allow us to provide the

capabilities our customers will need in the

future. Our new ITSM systems will start to be

available to some customers from 2022 but

the full replacement and migration

programme will take over three years,

minimising disruption to customers.

Our people have continued to show enormous

resilience and commitment in responding to

customer challenges through 2021, despite

the changing Covid-19 situation and

regulations in different countries. We are very

proud of what they have achieved. We have

continued to demonstrate the resilience of

our infrastructure, the benefits of scale of our

operations and the skills and commitment of

our people.

2021 highlights include:

• Successful go-live of 23 new service

contracts, supporting customers across

more than 50 countries, including three

major new services.

• Significant expansion of our off-shore

Service Center in Bangalore, India, where we

now have 850 people at the end of 2021 and

will grow to over 1,200 in 2022.

• Expansion of our near-shore Service

Center in Poznan, Poland, where we expect

to have approximately 300 people by the

end of 2022.

• Reducing our Managed Services ‘cost to

serve’, to ensure we remain competitive in

the evolving market. This is demonstrated

by the increase in our Services revenue

per Services head of 10.5 per cent to

approximately £105,500 (see page 8),

demonstrating the progress in

services efficiency.

Strategic Report

Annual Report and Accounts 2021

COMPUTACENTER’S COVERAGE REGIONAL HEADQUARTERS

INTEGRATION CENTERS

SERVICE CENTERS

LIVERMORE, CA, USA

ALPHARETTA, GA, USA

BODEGRAVEN, NETHERLANDS

BRUSSELS, BELGIUM

HATFIELD, BRAINTREE, UK

GONESSE, PARIS, FRANCE

ZURICH, SWITZERLAND

KERPEN, GERMANY

DALLAS, TX, USA

MEXICO CITY, MEXICO

MARKHAM, ON, CANADA

BARCELONA, SPAIN

HATFIELD, MILTON KEYNES,

NOTTINGHAM, SHEFFIELD, UK

LYON, MONTPELLIER,

PARIS, PERPIGNAN, FRANCE

BUDAPEST, HUNGARY

CLUJ, ROMANIA

BERLIN, DRESDEN, ERFURT,

KERPEN, GERMANY

POZNAN, POLAND

CAPE TOWN, SOUTH AFRICA

KUALA LUMPUR, MALAYSIA

BANGALORE, INDIA

SAN FRANCISCO, CA, USA

ATLANTA, GA, USA

HATFIELD, UK, EMEA

KUALA LUMPUR, MALAYSIA, APAC

COMPUTACENTER’S COVERAGE REGIONAL HEADQUARTERS

INTEGRATION CENTERS

SERVICE CENTERS

LIVERMORE, CA, USA

ALPHARETTA, GA, USA

BODEGRAVEN, NETHERLANDS

BRUSSELS, BELGIUM

HATFIELD, BRAINTREE, UK

GONESSE, PARIS, FRANCE

ZURICH, SWITZERLAND

KERPEN, GERMANY

DALLAS, TX, USA

MEXICO CITY, MEXICO

MARKHAM, ON, CANADA

BARCELONA, SPAIN

HATFIELD, MILTON KEYNES,

NOTTINGHAM, SHEFFIELD, UK

LYON, MONTPELLIER,

PARIS, PERPIGNAN, FRANCE

BUDAPEST, HUNGARY

CLUJ, ROMANIA

BERLIN, DRESDEN, ERFURT,

KERPEN, GERMANY

POZNAN, POLAND

CAPE TOWN, SOUTH AFRICA

KUALA LUMPUR, MALAYSIA

BANGALORE, INDIA

SAN FRANCISCO, CA, USA

ATLANTA, GA, USA

HATFIELD, UK, EMEA

KUALA LUMPUR, MALAYSIA, APAC

PROFESSIONAL SERVICES

We provide structured solutions and expert

resources to help our customers select,

deploy and integrate digital technology, so

they can achieve their business goals. Our

revenue depends on our forward order book,

which contains a multitude of short, medium

and long-term projects.

As the technology landscape has become

more complex, our 1,600 consultants play an

increasingly important role in advising our

customers. Our Professional Services and

Technology Sourcing businesses have always

been linked and we see this increasing, as our

clients need our help to make wise choices in

the complex technology landscape and to

then deploy and integrate these technologies.

Our Professional Services revenue also includes

some of our 5,000 engineering employees and

750 project managers, who are charged as part

of customer integration and deployment

projects. These engagements range from

workplace rollouts to complex network and

data center solution integrations.

We see significant opportunity to grow our

Professional Services business across all our

portfolio areas, which are; workplace, data &

analytics, cloud & data center, networking,

and security.

Our Professional Services business continues

to be a major source of Services growth, as

customers look to us for help to deploy new

digital technology.

2021 highlights include:

• Our Professional Services revenue

exceeded £550 million for the first time.

• We delivered over 1,000 projects in 2021 for

the first time.

• We opened Professional Services hubs in

Romania and India and plan to scale these

to 400 people by the end of 2022.

COMPUTACENTER’S COVERAGE REGIONAL HEADQUARTERS

SERVICE CENTERS

DALLAS, TX, USA

MEXICO CITY, MEXICO

MARKHAM, ON, CANADA

BARCELONA, SPAIN

HATFIELD, MILTON KEYNES,

NOTTINGHAM, SHEFFIELD, UK

LYON, MONTPELLIER,

PARIS, PERPIGNAN, FRANCE

BUDAPEST, HUNGARY

CLUJ, ROMANIA

BERLIN, DRESDEN, ERFURT,

KERPEN, GERMANY

POZNAN, POLAND

CAPE TOWN, SOUTH AFRICA

KUALA LUMPUR, MALAYSIA

BANGALORE, INDIA

SAN FRANCISCO, CA, USA

ATLANTA, GA, USA

HATFIELD, UK, EMEA

KUALA LUMPUR, MALAYSIA, APAC

OUR SERVICE CENTERS

Managed Services and Professional Services

continued

Group annual sales event – Berlin, Germany

Our customers and technology partners depend on our breadth of services skills and experience to deploy the latest digital technology at scale.

Engineering and Maintenance Services

We help customers support and maintain their technology across the world.

Strategic Report

Annual Report and Accounts 2021

GROUP

Financial performance

Our strong financial and operational

performance in 2021 saw the Company deliver

its 17th consecutive year of adjusted

diluted

earnings per share growth. This continues to

demonstrate the resilience of our business

model, and reinforces our position as having

the largest Services business of any VAR,

as well as the largest VAR capability of any

Services business worldwide.

The Group’s revenues increased by 23.6 per

cent to £6,725.8 million (2020: £5,441.3 million)

and were 26.9 per cent higher in constant

currency

. This is the first time that the Group

has exceeded £6 billion of revenues in a year,

and saw revenues in the second half of the

year higher than any of the annual revenues

recorded by the Group up to and including

2016. Gross invoiced income

increased by

21.1 per cent to £6,923.5 million (2020:

£5,715.0 million).

The Group has more than doubled its

adjusted

profit before tax over the last three

years. This is the first time that we have

achieved such an increase since we have been

a public company. The Group made a profit

before tax of £248.0 million, an increase of

20.0 per cent (2020: £206.6 million). The

Group’s adjusted

profit before tax increased

by 27.5 per cent to £255.6 million (2020:

£200.5 million) and by 31.5 per cent in

constant currency

. The adjusted

profit

before tax results for both the first and

second halves of the year are individually

greater than any full-year adjusted

profit

before tax we achieved prior to 2019 and each

would be the third-largest annual profit in the

Group’s history.

The difference between profit before tax and

adjusted

profit before tax relates to the net

charge of £7.6 million (2020: gain of £6.1

million) from exceptional and other adjusting

items. In the current year, this comprises the

amortisation of the acquired intangible

assets resulting from the Group’s 2018

acquisition of FusionStorm and the 2020

acquisition of Pivot. Further information on

these can be found on page 73.

With the increase in the Group’s profit after

tax, the diluted earnings per share (EPS)

increased by 20.3 per cent to 160.9 pence for

the year (2020: 133.8 pence). Adjusted

diluted

EPS, the Group’s primary EPS measure,

increased by 31.0 per cent to 165.6 pence

(2020: 126.4 pence) in 2021.

The result has benefited from £1,105.1 million

of revenue (2020: £232.6 million), and £13.9

million of adjusted

profit before tax (2020:

£3.3 million), from all acquisitions made since

1 January 2020. All figures reported

throughout this Annual Report and Accounts

include the results of these acquired entities.

Excluding the impact of the acquisitions made

since 1 January 2020, revenues grew

organically by 10.9 per cent on a constant

currency

basis.

Trading across all of our major geographies,

apart from France, was pleasing throughout

the year, with particular strength at the end

of the second quarter, and in our traditionally

strongest month of December.

The Group only received €0.2 million of

government employment-related assistance

during the year, which was entirely related

to the Group’s Belgian operations and ceased

in May 2021. A further $1.3 million was

recognised as a credit to the income

statement in North America during the year,

due to funds received relating to a payroll

protection programme in Pivot that was

applied for prior to acquisition. This has

subsequently been converted to a permanent

grant by the US Federal Government. The year

saw continuing, but reduced, challenges from

Covid-19, with most of our major geographies

experiencing lockdowns or restrictions on

office-based working during the year. The

vast majority of our employees worked from

home for significant periods during the year,

although we were generally able to perform

services on customer sites as required. We

thank all of our people for the flexibility and

dedication they have shown to cope with the

continually changing external environment

and acknowledge their successes, as they

have driven the Company to new heights

of performance.

The Group has seen business with key

industrial customers return to near pre-

pandemic levels, after this spend was largely

suppressed during 2020. Combined with

strong public sector activity, this has

continued to create organic revenue growth

opportunities for the Group. As in 2020, we

benefited from some Covid-19-related cost

savings, but to a much lower extent.

Additionally, there was no further pandemic-

related surge in spend on Technology

Sourcing, compared to the prior year. Whilst

demand has remained high, the driver has

shifted from short-term pandemic responses

to more medium-term re-engineering of IT

structures, as organisations employ digital

transformation to cope with the ever-evolving

technology landscape and increasing

cyber threats.

Revenues from public sector customers, such

as local and central government, increased by

10.1 per cent, against growth with non-public

sector customers of 29.9 per cent. Public

sector accounts have grown less than last

year, whereas demand from other customer

sectors has recovered strongly as the

marketplace normalises towards pre-

Covid-19 patterns. The public sector now

accounts for 28.2 per cent of our revenues

(2020: 32.0 per cent). While significant

volumes of this public sector business were at

lower than normal gross margins, particularly

through the first quarter of the year, we

maintained efficiencies and reduced costs

within business delivery areas, so that

margins remained very close to the record

levels seen in 2020.

Revenue £m

+23.6%

6,725.8

Adjusted

profit before tax £m

+27.5%

255.6

Revenue by business type

1. Source

78.4%

2. Transform

8.2%

3. Manage

13.4%

Our performance in 2021

Our strong financial

and operational

performance in 2021

saw the Company

deliver its 17th

consecutive year

of earnings per

share growth.

Mike Norris

Chief Executive Officer

Throughout the year, product shortages

have materially impacted the supply of key

equipment for our customers, with some

orders being materially delayed or only partly

fulfilled. Whilst product availability increased

during December, the unexpected impact on

working capital through the year was

significant. Inventory levels have increased

across the business, as a result of carrying

stock for orders that we cannot deliver

without a critical part or, increasingly through

the year and particularly in North America,

where customers have ordered early and

subsequently delayed delivery, as data center

facilities are not ready. We do not expect

inventory to return to normal levels until there

is a longer-term supply improvement.

The Group had £341.3 million of inventory as

at 31 December 2021, an increase of 61.5 per

cent on the balance sheet as at 31 December

2020 of £211.3 million. Over three quarters of

this increase was attributable to our North

American Segment, which had closing

inventory of £212.5 million (2020: £103.2 million).

While supply has been restricted, demand

has continued to rise, with our product order

backlogs across all geographies at all-time

highs and considerably larger than at the end

of 2020. This gives us a high degree of

confidence that the Technology Sourcing

business will be well placed to benefit in the

year ahead.

The Group has seen significant currency

translation headwinds as the pound sterling

has strengthened against other currencies,

particularly the US dollar and the euro. This

has reduced profitability in the year. Had

exchange rates in 2021 been equivalent to the

average rates seen in 2020, adjusted

profit

before tax would be £7.6 million higher, with

revenues £234.0 million higher in 2021.

Further information on currency impacts is

available on page 78 of the Group Finance

Director’s review.

We remain alert to ongoing product

shortages, and further strengthening of

the pound would create a stronger FX

translation headwind.

Looking at our performance by geography, the

UK in particular has seen very strong demand

continue from both public and private sector

customers, with increased software sourcing

and enterprise technology orders driving

growth. Professional Services growth has

surged, as customers have restarted delayed

projects and invested in the ongoing

transformation of their IT environments.

The German business has seen similar growth

patterns to the UK. Technology Sourcing

delivered good growth as large industrial

customers, particularly in automotive, have

returned to normal trading patterns with less

disruption from Covid-19. We were pleased to

sign a new supply framework agreement with

our largest customer in Germany, ensuring

that the partnership remains central to the

success of both businesses.

In North America, the mid-market customers

who materially reduced spend during 2020

continued to return and complemented our

ongoing and growing success with hyperscale

(data center-based) customers, driving good

Members of the Group

Executive team

Strategic Report

Annual Report and Accounts 2021

overall organic revenue and profit

performance. The addition of the Pivot

acquisition in the second half of 2020 has

further contributed to the Segment, with a full

year of performance and complementary

capabilities that support our overall North

American growth ambitions.

The French business had a slightly

disappointing 2021, with reductions in

Technology Sourcing performance

compounding the impact of the previously

announced non-renewal of the Group’s largest

Managed Services contract. The integration

of Computacenter NS remains on track, with

the transition to our Group ERP system

successfully completed. Computacenter NS

performed in line with our forecasts and

contributed an adjusted

loss before tax of

£3.8 million, which also worsened the overall

French Segment result. As we have noted

previously, we recognised an exceptional gain

of £14.0 million on consolidation of the

subsidiary in the 2020 Annual Report and

Accounts, following the acquisition of the

business. This gain arose from cash

maintained by the vendor within the acquired

balance sheet that was primarily to

compensate the Group for future losses.

Under IFRS it is not possible to allocate the

exceptional gain against future incurred

operating losses, but it is important to

remember when considering the commercial

context of the Computacenter NS

performance and our short to medium-term

expectations for the business. We consider

that the exceptional gain reflects the losses

that the acquired business will incur over the

medium term, as it is brought onto a

sustainable footing.

The International Segment has improved

significantly on 2020, with a good finish to

the year. All of the primary European trading

entities saw improved performance with

Belgium, Switzerland and the Netherlands

all experiencing encouraging growth in

both revenues and profitability, and the

commencement of a global contract with

a large industrial customer led from

the Netherlands.

With both organic and acquired revenues

increasing during the year, profits increased

as costs across the Group remained lower

than pre-Covid-19 levels and margins

remained high. Overall, Group gross margins

were broadly flat at 12.9 per cent of revenues

(2020: 13.2 per cent).

Administrative expenses increased by 20.5

per cent in constant currency

, significantly

behind the growth in gross profit as pre-

pandemic costs continued to return in a

controlled manner. As offices once again

re-open across our major geographies, we

expect costs to return but at a lower level

than before the Covid-19 crisis, with the

business having learned to be leaner and

more efficient.

Technology Sourcing performance

The Group’s Technology Sourcing revenue

increased by 26.2 per cent to £5,274.9 million

(2020: £4,180.1 million) and by 29.7 per cent

on a constant currency

basis.

The result benefited from £977.5 million of

revenue from the acquisitions made since

1 January 2020 (2020: £212.0 million) with

£967.7 million of this as a result of the Pivot

acquisition (2020: £209.5 million). Excluding

these revenues, Technology Sourcing organic

revenue growth was 11.5 per cent on a

constant currency

basis.

The UK Technology Sourcing business saw

continued excellent growth, with the focus

moving from workplace contracts driven by

the remote working needs of the Covid-19

environment to the higher margin

enterprise product.

In Germany, Technology Sourcing revenue

returned strongly to growth, in particular as

automotive and other industrial customers

increased spend through large framework

agreements, following the sector-related

Covid-19 and supply chain issues. We signed

a key framework agreement with our biggest

customer in Germany, allowing us to approach

2022 with confidence.

The French Technology Sourcing revenue

declined on an organic basis, due to

reduced demand in the year from some

major customers.

The North American Technology Sourcing

business saw revenues improve on an organic

basis. Our hyperscale customers have

significantly increased demand, and the

mid-market core of the business has

remained stable after a slowdown in 2020.

The acquisition of Pivot has added material

volume to the Segment, with the business

lines, geographical footprint and technical

capabilities almost entirely complementary

to the pre-acquisition US business. The

combined operation provides opportunities

to reach a wider addressable market and

to cross-sell across our portfolio.

Overall Group Technology Sourcing margins

reduced by 33 basis points during the year,

partially due to customer and product

mix changes.

Services performance

During the year we experienced the highest

growth in our Services revenue for the last 20

years. The Group’s Services revenue increased

by 15.0 per cent to £1,450.9 million (2020:

£1,261.2 million) and by 17.8 per cent on a

constant currency

basis. Within this, the

Group’s Professional Services revenue

increased by 29.9 per cent to £552.4 million

(2020: £425.4 million), and by 33.1 per cent on

a constant currency

basis, while the Group’s

Managed Services revenue increased by 7.5

per cent to £898.5 million (2020: £835.8

million), and by 10.1 per cent on a constant

currency

basis.

The overall Services result benefited from

£127.6 million of revenue from the acquisitions

made since 1 January 2020 (2020: £20.6

million). Excluding these revenues, Services

organic revenue growth was 9.2 per cent

on a constant currency

basis.

UK Services revenue saw good growth,

primarily due to a significant increase in

Professional Services with some new

Managed Services customers adding

momentum during the second half of the year.

Professional Services continued its strong

start to the year, as customers re-engaged

with our consultancy expertise to assist their

post-pandemic IT requirements. Managed

Services strengthened through the year, as

we converted opportunities within the still

healthy pipeline into contracts and continued

to realise efficiencies across the existing

portfolio.

Our German Managed Services have grown

strongly, as customer volumes have returned

to pre-Covid-19 levels with further contract

wins and expanded scopes within some

existing contracts. The Professional Services

business continues to see very strong growth

year after year, with the limiting factor being

the supply of appropriate resource. This has

been helped by the recent investment in our

near-shoring initiative in Romania.

Our French Services business saw further

sharp falls in Services revenue on an organic

basis. The French Professional Services

business is more reliant on on-site activity

than the equivalent businesses in the UK or

Germany and continues to face significant

disruption from Covid-19 and the resulting

government response. The French Managed

Services business declined, as expected,

following the non-renewal of a large global

outsourcing contract at the end of the

contract term in 2019, which did not impact

revenues until the second half of 2020.

Our performance in 2021

continued

In North America, Professional Services

revenue has recovered as projects delayed by

Covid-19 restarted. Mid-market customers,

which generate much of the Professional

Services revenue in the US, were the weakest

business area during the pandemic and

experienced a recovery during 2021.

Overall Group Services margins increased by

60 basis points during the year. The continued

reduction of travel costs, lower subcontractor

costs and improved Professional Services

utilisation, coupled with improving Managed

Services volume, have all contributed to this

increase.

Outlook

The more than doubling of profits that

Computacenter has achieved over the last

three years has been the result of deliberate

actions that we have previously taken to

enable growth. Our acquisitions in North

America and Western Europe have materially

increased our total addressable market. The

organic investments we have made, including

the expansion of our sales force, recruiting

technical expertise and investing in systems

to enhance our productivity, have been

substantial. Collectively, these have put us in

a position to take advantage of the ongoing

buoyant market conditions, as our customers

invest in digitalising their businesses.

While we live in uncertain times and much work

remains to be done, these investments and

current market conditions make us confident

that 2022 will be a year of further progress.

Given the profile of our profitability in 2021,

we have a more challenging comparison in the

first half of 2022 compared to the second,

due to the fact that an abnormally high

percentage of our profits came in the first

half of the year.

As a business, we feel as confident as we have

ever been about our target market, competitive

position and investment strategy, and we look

forward to the future in 2022 and beyond with

enthusiasm and excitement.

Group annual sales event – Manchester, United Kingdom

Mike Norris presenting to Computacenter teams.

Strategic Report

Annual Report and Accounts 2021

UNITED KINGDOM

Financial performance

Revenues in the UK business increased by

9.9 per cent to £1,948.6 million (2020:

£1,773.4 million) with gross invoiced income

increasing by 5.8 per cent to £2,063.7 million

(2020: £1,949.8 million).

The UK business increased revenues in both

Technology Sourcing and Services. While the

global pandemic continues to create

challenges in some of our core markets,

we have seen acceleration in demand for

consultancy and project services, and in

software sourcing needs. We have also

secured some significant Managed Services

contracts, which will deliver benefit in the long

term. Although some existing contracts were

not renewed, overall, Managed Services

revenue saw good growth during the year.

During 2021, our customers increasingly

benefited from our expanded international

presence, to meet their global Technology

Sourcing and Services requirements.

We have continued to invest in our people,

further expanding our sales force to engage

new customers and drive growth through

existing customers. While we are already

seeing the benefit of new trading

relationships arising from this expansion,

the return will be realised through the

longer-term development of a broader client

base. This investment has helped to increase

the number of customers where we generate

greater than £1 million of gross profit, from

52 to 55 in 2021.

Our hybrid-working approach has proved

successful, which is reflected in our recent

employee engagement survey results. We are

pleased to have retained our unique culture

despite the challenges of remote working,

and proud to have been recognised as a Top

Employer in the UK. We continue to make

changes to our facilities to allow the gradual

return of our people to the office, whilst

our people continue to work flexibly and

collaboratively in line with our customers’ needs.

Overall margins in the UK reduced slightly by

29 basis points, with the gross profit margin

decreasing from 14.1 per cent to 13.8 per cent

of revenues. Gross profit grew by 7.6 per cent

to £268.2 million (2020: £249.2 million).

Adjusted

administrative expenses increased

by only 4.0 per cent to £165.3 million (2020:

£158.9 million), significantly behind the

growth of the business. This is an increase

on the 1.3 per cent growth in adjusted

administrative expenses seen in 2020,

following additional investments in the sales

force during 2021 to better target our

addressable customer opportunity.

This resulted in adjusted

operating profit

growing by 14.0 per cent to £102.9 million

(2020: £90.3 million).

Technology Sourcing performance

Technology Sourcing revenue increased by

10.4 per cent to £1,466.4 million (2020:

£1,328.0 million).

Revenues increased in line with expectations.

While demand for workplace technology has

remained higher than pre-pandemic levels,

the exceptional spend attributed to

customers’ Covid-19 responses has softened,

resulting in a decline in workplace technology

during the year, as expected. The enterprise

Technology Sourcing business has seen the

predicted return to growth, with customers

investing in networking, security and data

center hardware and software solutions,

with a particular focus on international

Technology Sourcing.

While supply chain constraints in some

product categories have led to unpredictable

availability, we have been able to meet the

needs of our customers and, in parallel, we

have built a strong product order book for the

year ahead. The Technology Sourcing order

book as at 31 December 2021 was 26 per cent

higher than at 31 December 2020.

Technology Sourcing margins reduced by

62 basis points compared to the prior year.

However, Technology Sourcing gross profit

increased by 3.5 per cent, reflecting the

higher revenue.

Revenue £m

+9.9%

1,948.6

Adjusted

operating profit £m

+14.0%

102.9

Services Contract Base £m

+3.7%

311.2

2021

2020

2019

2018

2017

1,948.6

1,773.4

1,597.0

1,611.3

1,468.2

Revenue by business type

1. Source

75.3%

2. Transform

7.9 %

3. Manage

16.8%

Our performance in 2021

continued

Members of the UK

leadership team

Our customers have

increasingly benefited

from our expanded

international presence,

to meet their global

Technology Sourcing and

Services requirements.

Neil Hall

Managing Director, UK and Ireland

Services performance

Services revenue increased by 8.3 per cent

to £482.2 million (2020: £445.4 million).

Professional Services grew 19.8 per cent to

£154.6 million (2020: £129.1 million). Managed

Services grew by 3.6 per cent to £327.6 million

(2020: £316.3 million).

While the pandemic has continued to affect

where customers are focusing their

investment in some of our core markets, we

are pleased with the increase in demand for

our Professional Services skills and resources,

with a notable increase in cloud advisory and

transformation services, as well as

networking and security project activity.

We have developed a strong Professional

Services pipeline for 2022, which should result

in continued growth in enterprise Professional

Services in particular.

Managed Services revenues grew moderately

during the year, with some significant

long-term contracts secured in the financial

services sector. We have successfully

implemented the contracts awarded during

2020, giving us confidence in the long-term

value of these arrangements.

We have experienced increased competitive

pressure in our public sector Managed

Services business, with some losses during

this period. Our competitive position improves

when the scope includes Technology Sourcing

embedded within a Managed Services

opportunity. We are pleased to have won

a significant Managed Services contract with

a large financial services customer, with a

worldwide support coverage requirement

including Technology Sourcing embedded in

the contract, in a ‘Device-as-a-Service’ model.

While the in-year growth has been pleasing,

the losses during the year combined with

longer buying cycles for significant Managed

Services campaigns currently underway will

make continued growth challenging in 2022.

Services margins increased by 97 basis points

over the year, as we continue to operate an

efficient blend of expert resources and

automated solutions. The use of our off-shore

capabilities has increased materially, with

customers keen to benefit from a right-shore

model. One major contract which commenced

during the year added approximately 150

employees in Bangalore, India. Service quality

and innovation in our Bangalore Service

Center has been high and we anticipate

further leverage of this capability.

Strategic Report

Annual Report and Accounts 2021

GERMANY

The overall economic situation in Germany

has largely stabilised with only a few sectors,

such as the tourism and retail industries, still

struggling with pandemic-related problems.

Industries relevant to our business, such

as automotive, healthcare, consulting,

technology and the public sector, are almost

all back in IT investment mode, as they

accelerate their digitisation efforts to assist

with solving their business IT challenges.

This has led to an increased demand for

infrastructure refreshes and digitisation

projects. In addition, the expansion of existing

network infrastructure, implementation of

ever-increasing security requirements and

the continual modernisation of workplace

environments are all positive factors for

our business.

We recorded some pleasing successes with

developing our customer base and concluding

renewals and new business. We again

increased the number of customers

contributing more than £1 million of gross

profit from 51 to 55. In the public sector, we

were able to renew some very large volume

framework contracts and win new ones. In

addition, we achieved further important

successes and concluded long-term

contracts in the emerging application

development business line.

In the automotive sector, we renewed and

concluded long-term contracts with one of

our most important customers, for both

worldwide network operations and field and

on-site workplace services. We secured and

expanded a workplace services contract for

one of the world’s largest global chemical

groups. In addition, we won an infrastructure

Managed Services contract with a federal

state bank, and a workplace Managed

Services contract with a telecommunications

provider. Towards the end of the year, we

again concluded a long-term contract with a

very large German hyperscaler and software

provider. This contract secures significant

Technology Sourcing and Services volumes

in the area of data center and networking.

We see the potential for top-line growth in

2022, which should also lead to an increase in

earnings. We will invest significantly in our

sales capacity, to support long-term

customer development and, above all, to

expand our customer base. In addition, we

plan to significantly expand our Professional

Services resources (consulting, project and

engineering), although this will certainly be a

challenge in the current labour market. These

investments will have an impact on the

short-term overall result, but from a medium

to long-term perspective, they are the right

actions to ensure growth.

Financial performance

Total revenue increased by 11.6 per cent to

€2,352.5 million (2020: €2,108.2 million) and

by 7.7 per cent in reported pound sterling

equivalents

. Gross invoiced income

increased by 12.1 per cent to €2,386.0 million

(2020: €2,129.2 million).

The 2021 financial year was characterised by

revenue growth in all three business areas.

We recorded significant growth of 11.8 per

cent in Technology Sourcing, which is a

pleasing result considering the availability

problems with almost all hardware products.

The strong relationships with our technology

partners, as well as the skills and experience

in our Computacenter teams, had a very

positive effect on performance. In addition,

we were able to ensure availability for our

customers for important projects and plans

through significantly increased stocking of

products at our Integration Center in Kerpen.

We also showed good growth in both

Professional Services and Managed Services.

We are seeing continued high demand for

technology refreshes and digitisation

projects. This growth was made possible by

the actions we started in the previous year

to expand our near-shore and off-shore

capacity, as well as the expansion of our

German capacity, especially in consulting.

The good growth in Managed Services was

particularly pleasing. In a persistently difficult

and demanding market segment, we gained

new clients and expanded existing contracts.

Overall margins in Germany increased by

52 basis points, with gross profit increasing

from 14.9 per cent to 15.4 per cent of revenues.

Gross profit grew by 15.7 per cent to €363.2

million (2020: €313.8 million) and by 11.5 per

cent in reported pound sterling equivalents

Along with the growth in revenue, we also

recorded good contribution growth. While we

maintained product margins at a level in line

with the previous year, we significantly

increased the Services margin, especially in

Managed Services. This was due in particular

to actions to optimise existing contracts, as

well as the significantly reduced number of

problem contracts. In addition, almost all new

take-on projects were completed within or

below the expected range of costs. In

Professional Services, we maintained healthy

margin levels, benefiting from a continuing

high remote delivery level and from strong

utilisation. However, the measures to retain

existing employees and recruit new

employees have increased costs and will

require further investments in the future.

Adjusted

administrative expenses

increased by 7.7 per cent to €202.5 million

(2020: €188.1 million), and by 4.1 per cent in

reported pound sterling equivalents

Indirect costs were in line with expectations.

We again benefited from lower travel, event

and meeting costs which had a positive

impact on the cost base. However, increased

commissions due to the higher contribution,

as well as proportionate costs for the planned

expansion in sales employees, have increased

the cost base. Stocking costs also increased,

as we maintained product availability within

Technology Sourcing.

Revenue €m

+11.6%

2,352.5

Adjusted

operating profit €m

+27.8%

160.7

Services Contract Base €m

+0.1%

370.3

Revenue by business type

1. Source

69.2%

2. Transform

13.5%

3. Manage

17.2 %

Our performance in 2021

continued

2021

2020

2019

2018

2017

2,352.5

2,108.2

2,161.9

2,115.7

1,954.2

Adjusted

operating profit for the German

business increased by 27.8 per cent to €160.7

million (2020: €125.7 million) and by 22.4 per

cent in reported pound sterling equivalents

The growth in earnings for the year was

primarily due to good overall business growth

and an increase in the Services margin.

For 2022, it is important to continue to develop

in Services, to use market demand to grow the

Technology Sourcing business and to profit

from the new contracts won in Managed

Services. We will also invest in the sales force

and in scaling the capacity of our Professional

Services business.

Technology Sourcing performance

Technology Sourcing revenue grew by 11.8 per

cent to €1,628.9 million (2020: €1,457.4 million)

and by 7.8 per cent in reported pound sterling

equivalents

. Technology Sourcing margins

decreased by 24 basis points over last year

but remained at a high level.

This area delivered a pleasing performance,

despite the worldwide supply problems for

hardware products. We again benefited from

good growth in the public sector and

healthcare sector. Compared to the previous

year, we saw increased demand, especially

from customers in the automotive and related

supplier industries. We recorded very good

growth in workplace, saw good network and

security business and slight growth in data

center business.

The Technology Sourcing order book at

31 December 2021 was 138.6 per cent higher

than at 31 December 2020.

Margins remained at a very high level in all

areas, with slight improvements in the

workplace business offsetting minor reductions

elsewhere, and leading to a slight overall

decrease of 24 basis points.

Services performance

Services revenue grew by 11.2 per cent to

€723.6 million (2020: €650.8 million) and by

7.5 per cent in reported pound sterling

equivalents

. This included Professional

Services growth of 21.2 per cent to

€318.4 million (2020: €262.8 million), an

increase of 17.1 per cent in reported pound

sterling equivalents

, and an increase in

Managed Services of 4.4 per cent to

€405.2 million (2020: €388.0 million), an

increase of 1.0 per cent in reported pound

sterling equivalents

We achieved good growth and a significant

improvement in earnings in both Professional

Services, which is our project and consulting

business, and in Managed Services, our

maintenance and management business.

As in previous years, we benefited from our

strong consulting and project business in

2021. Here, we see increasing demand for the

support of international projects in field,

home office and on-site services, as well as

continuing high demand for the realisation

of digitalisation projects. We were able to

successfully leverage the near-shore services

in Cluj, Romania, which we started in the

second quarter of 2021 and have since

expanded to more than 80 people.

We are continuing with our plan of having

400 extra people in the area of consulting

and engineering in 2022 and have once again

significantly expanded our recruiting

activities for this purpose.

Our Managed Services business also

developed positively over the year. We see a

stagnating market dominated by a few global

participants, but we were able to hold our

ground, win new contracts and expand our

existing business. Profitability also increased

thanks to good contract management and the

stabilisation or expiry of some of our problem

or loss-making contracts. Nevertheless, this

business will continue to be challenging in the

future and growth will only be possible by

winning new contracts.

Overall, the Services margin was 225 basis

points higher than last year.

We will invest significantly

in our sales capacity,

to support long-term

customer development

and, above all, to expand

our customer base.

Reiner Louis

Managing Director, Germany

Members of the German

leadership team

Strategic Report

Annual Report and Accounts 2021

FRANCE

In November 2020, we completed the

acquisition of BT’s domestic services

operations in France. This subsidiary has been

renamed Computacenter NS. Our 2021 results

therefore include the full-year financial

performance of Computacenter NS, whereas

we only had two months in the 2020 results.

Financial performance

Total revenue increased by 0.8 per cent to

€760.0 million (2020: €753.9 million). In

reported pound sterling equivalents

total revenue was down 2.9 per cent.

As noted in our first half results, we were

determined to deliver a positive operational

result for the full year. Thanks to a good

second half performance, we achieved this

goal. However, the year as a whole was

challenging for our French business. We have

seen declining performance in all areas of

the business and as Computacenter NS was

loss-making on acquisition, it further reduced

our profit for 2021, as expected.

The acquired business, Computacenter NS,

recorded revenues of €69.6 million (2020:

€15.0 million) with an adjusted

operating loss

of €4.9 million (2020: €1.6 million), which was

broadly in line with our plan for the year.

Excluding the revenues earned within

Computacenter NS, Computacenter France

total revenue declined by 6.6 per cent to

€690.4 million (2020: €738.9 million).

Throughout the year, we were confronted

by the challenge of worldwide component

shortages, and corresponding delivery issues

in Technology Sourcing, mainly in the

workplace area. This impacted our public

sector business, as we fulfil multiple public

sector framework contracts in this area. Our

private sector performance was not immune

from the worldwide shortages but it showed

encouraging growth in the networking area

and therefore compensated better for the

shortages in other areas.

We continued to integrate Computacenter

NS, strengthening our capabilities in our

networking and security offerings. In

November 2021, we reached an important

milestone by finalising the migration of

Computacenter NS into our Group ERP

systems, giving us the opportunity to further

align processes and resources. As anticipated

at the time of the acquisition, we had to

relocate some office locations for

Computacenter NS. In June 2021, we opened

our new sales and administrative office in the

centre of Paris. Despite difficult circumstances

due to Covid-19, this office has been

welcomed by customers, employees and

technology partners as a perfect location to

meet and collaborate. We continue to review

our strategy for another three locations in the

Paris region and aim to reach a conclusion

towards the end of 2022. From a business

integration point of view, we celebrated

winning some pleasing network maintenance

contracts towards the end of the year.

We remain confident that our strategy to

target large public and private sector

organisations, the further development of our

Group offerings and the continued focus on

cost control offer the best route to reach

growth in 2022.

Overall, margins in France decreased by

64 basis points, with gross profit decreasing

from 11.1 per cent to 10.4 per cent of revenues.

Excluding the impact of Computacenter NS,

margins increased by 15 basis points, with

gross profit increasing from 10.9 per cent to

11.0 per cent of revenues.

Overall gross profit decreased by 4.9 per cent

to €79.2 million (2020: €83.3 million) and

reduced by 8.5 per cent in reported pound

sterling equivalents

. Excluding the

€3.2 million of gross profit earned within

Computacenter NS (2020: €3.1 million), the

Computacenter France gross profit

decreased by 5.2 per cent to €76.0 million

(2020: €80.2 million).

Adjusted

administrative expenses increased

by 8.9 per cent to €75.0 million (2020: €68.9

million), and by 5.2 per cent in reported pound

sterling equivalents

as we have continued to

invest to support growth. Excluding the

€8.2 million of adjusted

administrative

expenses incurred within Computacenter NS

(2020: €4.7 million), Computacenter France

administrative expenses increased by 4.0 per

cent to €66.8 million (2020: €64.2 million).

Adjusted

operating profit for the combined

French business decreased by 70.8 per cent

to €4.2 million (2020: €14.4 million), and by

73.1 per cent in reported pound sterling

equivalents

. As noted in our 2020 Annual

Report and Accounts, the Computacenter NS

business was loss-making on acquisition, and

it therefore reduced our combined profit for

2021 as expected. Excluding the €4.9 million

operating loss from the activities of

Computacenter NS (2020: €1.6 million),

the Computacenter France business made

€9.1 million of operating profit in 2021

(2020: €16.0 million).

Technology Sourcing performance

Technology Sourcing revenue decreased by

5.1 per cent to €560.0 million (2020: €590.0

million) and by 8.5 per cent in reported pound

sterling equivalents

. Excluding the €11.3

million of Technology Sourcing revenues

within Computacenter NS (2020: €2.7 million),

Computacenter France Technology Sourcing

revenues decreased by 6.6 per cent to

€548.7 million (2020: €587.3 million).

Despite a decline in revenues, it was a very

busy year in Technology Sourcing. The volume

of outstanding Technology Sourcing orders

placed with us by our customers increased

significantly across the whole year, due to the

worldwide component shortages. If we had

been able to ship all products within normal

timescales and thereby maintain a back-

order position comparable with 2020, we

would have generated good growth in overall

revenues. The Technology Sourcing order book

Revenue €m

+0.8%

760.0

Adjusted

operating profit €m

-70.8%

4.2

Services Contract Base €m

+1.8%

149.8

2021

2020

2019

2018

2017

760.0

753.9

715.8

557.4

581.3

Revenue by business type

1. Source

73.7%

2. Transform

5.8%

3. Manage

20.5%

Our performance in 2021

continued

at 31 December 2021 was 74.6 per cent higher

than at 31 December 2020.

Despite the challenge of product shortages,

the private sector showed a revenue increase

in Technology Sourcing, mainly thanks to

some networking contracts. Towards the end

of the year in particular we saw increased

activity within our customer base, albeit still

lower than before Covid-19. Our public sector

business had a challenging year in Technology

Sourcing, as we noticed a declining spending

pattern for the majority of these customers.

We expect that the worldwide shortages will

remain a challenge in 2022 but are hopeful

that we will be able to provide better visibility

of delivery dates for our customers and

eventually see an overall reduction in delays.

To ensure this, we are staying in close contact

with technology partners, both at local and

Group levels.

Overall, Technology Sourcing margins

increased by 36 basis points. Excluding the

impact of Computacenter NS, Technology

Sourcing margins increased by 39 basis points.

Services performance

Services revenue increased by 22.0 per cent

to €200.0 million (2020: €163.9 million) and by

17.5 per cent in reported pound sterling

equivalents

. Professional Services revenue

increased by 10.3 per cent to €44.1 million

(2020: €40.0 million), which was an increase

of 6.4 per cent in reported pound sterling

equivalents

. Managed Services revenues

increased by 25.8 per cent to €155.9 million

(2020: €123.9 million), an increase of 21.0 per

cent in reported pound sterling equivalents

Excluding the Services revenues within

Computacenter NS, the Computacenter

France Services revenues decreased by 6.5

per cent to €141.7 million (2020: €151.6 million).

Professional Services revenue decreased by

15.4 per cent to €31.3 million (2020: €37.0

million), with Managed Services revenues

decreasing by 3.7 per cent to €110.4 million

(2020: €114.6 million).

The main impact on Services revenue came

from a global outsourcing contract that

ended in the first half of 2020, which we knew

was going to reduce 2021 revenues compared

to last year. Apart from a loss-making

contract in the network operations area,

we have been able to maintain our Managed

Services margins.

In 2020, the first year of the Covid-19 crisis,

many customers postponed or cancelled

their upcoming Managed Services tenders.

As expected, many of these campaigns

restarted in 2021. We have been very busy

responding to tenders and won a significant

number of new contracts. We are in the

process of onboarding these contracts. Once

fully operational, they will allow us to maintain

our 2022 Contract Base, by compensating for

a Computacenter NS contract that we knew

on acquisition would end in 2021.

In addition to winning new contracts, we

have been able to extend our Services scope

in three of our largest existing Managed

Services contracts.

Our Professional Services business in the

private sector faced a challenging year with

a decline in revenues, mainly due to the

complicated Covid-19 situation and the lack of

additional project opportunities we normally

have within our Managed Services contracts.

Public sector performance was flat in

Professional Services.

With the Computacenter NS business now

integrated further into our organisation, we

believe we have a good opportunity to grow

our Professional and Managed Services

businesses significantly in 2022. With the

integration and our continued effort to

further develop and train our entire Services

teams, we should be able to position skilled

professionals in a market with high demand

for specialised resources.

Services margins decreased by 351 basis

points over last year. Excluding the impact

of Computacenter NS, Services margins

decreased by 74 basis points.

We remain confident that

our continued customer

focus on large public and

private sector organisations,

the further development of

our Group offerings and the

continued focus on cost

control offer the best route

to reach growth in 2022.

Lieven Bergmans

Managing Director, France

Members of the French

leadership team

Strategic Report

Annual Report and Accounts 2021

NORTH AMERICA

Performance in the year was heavily

influenced by the acquisition of Pivot on

2 November 2020. 2021 includes a full year of

Pivot, with revenues of $1,432.4 million and

adjusted

operating profit of $25.2 million

recorded in the year, whereas the prior year

included $292.7 million of revenue and

adjusted

operating profit of $6.8 million,

arising from the two months of trading

between the acquisition date and 31

December 2020.

During 2021, we completed the migration of

the non-Pivot part of our North American

operations onto our Group ERP system, which

was a more challenging implementation than

expected, due to most of the preparation

being managed remotely from Europe as

a result of the Covid-19 travel impacts. We are

entering the next phase of the implementation,

which will bring the Pivot operation onto the

Group ERP platforms, at which point the North

American business can be fully integrated.

This integration is not expected to complete

until 2023.

Financial performance

Total revenue increased by 114.3 per cent to

$2,623.1 million (2020: $1,223.8 million). In

reported pound sterling equivalents

, total

revenue was up 102.4 per cent. Gross invoiced

income

increased by 103.4 per cent to

$2,696.8 million (2020: $1,325.8 million).

Pivot Canada (now Computacenter TeraMach)

is included within our North America Segment.

We are very pleased with the growth achieved

in Canada during the year, where revenue

increased to $144.1 million in 2021 from

$20.7 million in the two months of ownership

in 2020. Growth was approximately 13 per

cent in 2021, compared to the full-year results

in 2020.

Excluding the Pivot acquisition, our organic

North American revenue growth was 27.9 per

cent. This is due to continued growth of

hyperscale customers, while spending by our

mid-market customers was flat, primarily

because of the ongoing Covid-19 pandemic.

Overall, revenue was ahead of forecast for the

year on an organic basis, primarily due to

Technology Sourcing.

Margins in North America increased by

29 basis points, with gross profit increasing

from 9.2 per cent to 9.4 per cent of revenues.

Excluding the impact of Pivot, margins fell

by 103 basis points, with gross profit

decreasing from 8.8 per cent to 7.8 per cent

of revenues, as the increased volumes with

lower-margin hyperscale customers drove

the revenue performance.

The Technology Sourcing margin remained

consistent overall. The acquisition of Pivot

was beneficial to margins, as Pivot’s

Technology Sourcing margins are

approximately 2-3 percentage points higher

than the previously acquired FusionStorm

business. This is because Pivot’s customer

mix is not as focused on hyperscale

customers, who tend to drive lower margins.

Excluding Pivot, Technology Sourcing margins

decreased by 85 basis points, primarily due

to customer mix, as the lower-margin

hyperscale customers comprised a larger

portion of revenue.

Professional Services margins were up

compared to the prior year, as revenue

recovered from a low in 2020, when customer

projects were deferred due to Covid-19, and

were further increased by Pivot, which has

a larger Professional Services business.

The increased revenue resulted in higher

utilisation of Services personnel. The Managed

Services business reported lower margins

year-on-year, due to lower margins on

start-up efforts on new programmes.

Revenue $m

+114.3%

2,623.1

Adjusted

operating profit $m

+131.5%

42.6

Services Contract Base $m

+26.3%

24.0

2021

2020

2019

2018

2017

2,623.1

1,223.8

957.8

351.6

32.5

Overall gross profit grew by 120.7 per cent to

$247.6 million (2020: $112.2 million) and by

108.8 per cent in reported pound sterling

equivalents

. Excluding the $154.5 million of

gross profit earned by Pivot in the year (2020:

$29.8 million), gross profit grew organically

by 13.0 per cent to $93.1 million (2020:

$82.4 million).

Adjusted

administrative expenses increased

by 118.6 per cent to $205.0 million (2020:

$93.8 million), and by 106.4 per cent in

reported pound sterling equivalents

. This was

due to the acquisition of Pivot, which added

$129.3 million of adjusted

administrative

expenses for 2021, compared to $23.0 million

for the two months in the prior year. Excluding

Pivot, adjusted

administrative expenses

increased only 6.9 per cent to $75.7 million

(2020: $70.8 million). Higher variable

remuneration was the primary driver of the

increased costs, due to the increase in

margins. Travel costs rose, although they

remained lower than pre-Covid-19 levels.

Adjusted

operating profit for the North

American business increased by 131.5 per

cent to $42.6 million (2020: $18.4 million),

and by 121.4 per cent in reported pound

sterling equivalents

The increase in operating profit was due in

part to the full-year contribution from Pivot.

Pivot contributed $25.2 million of operating

profit in 2021, compared to $6.8 million of

operating profit for the two months of 2020.

Excluding Pivot, North America’s adjusted

operating profit was up by 50.0 per cent to

$17.4 million (2020: $11.6 million), as hyperscale

customers continued to purchase in volume

and cost synergies from the acquisition

were realised.

Revenue by business type

1. Source

95.0%

2. Transform

4.1%

3. Manage

1.0%

Our performance in 2021

continued

Technology Sourcing performance

Technology Sourcing revenue increased by

109.5 per cent to $2,490.8 million (2020:

$1,189.2 million) and by 97.8 per cent in

reported pound sterling equivalents

The addition of Pivot resulted in significant

growth in our Technology Sourcing business.

Pivot contributed $1,327.9 million of

Technology Sourcing revenue (2020:

$280.0 million for the two months from

acquisition). Excluding Pivot, Technology

Sourcing revenue increased by 27.9 per cent

on an organic basis, as hyperscale customers

increased their volumes, and mid-market

customers remained consistent. We benefited

from significant continuing investments by

our customers, as they digitise their operations

and modernise their infrastructure.

Excluding the impact of Pivot, North American

Technology Sourcing margins decreased by

85 basis points on an organic basis over the

same period last year, as a result of the

growth in revenue being driven by hyperscale

and large customers, which generally have

lower margins. Partially offsetting this

decrease was the addition of Pivot volume,

which generally has higher margins due

primarily to customer mix. We also continue to

evolve our partner management organisation

with the larger scale provided by Pivot and are

seeing an improvement in margins as a result.

Including the results of Pivot, Technology

Sourcing margins increased by 38 basis

points overall.

Services performance

Services revenue increased by 282.4 per cent

to $132.3 million (2020: $34.6 million) and by

258.6 per cent in reported pound sterling

equivalents

. Professional Services increased

by 316.0 per cent to $106.5 million (2020:

$25.6 million), which was an increase of

295.4 per cent in reported pound sterling

equivalents

. Managed Services increased

by 186.7 per cent to $25.8 million (2020:

$9.0 million), an increase of 158.3 per cent in

reported pound sterling equivalents

. Services

revenue growth was driven by having a full

year of Pivot, combined with significant

growth in Pivot’s deployment services,

which are part of our Professional Services.

Pivot recorded Services revenues of

$104.5 million (2020: $12.8 million) comprising

Professional Services revenues of $87.4 million

(2020: $10.2 million) and Managed Services

revenues of $17.1 million (2020: $2.6 million).

Excluding the Services revenues within Pivot,

the North American Services revenues

increased by 27.5 per cent to $27.8 million

(2020: $21.8 million). Professional Services

revenue increased 24.0 per cent to

$19.1 million (2020: $15.4 million) with

Managed Services revenues up 35.9 per cent

at $8.7 million (2020: $6.4 million).

Project activity recovered after a slow 2020,

when customers either delayed expected

spend or cancelled projects while they

responded to Covid-19. The increase was also

driven by a Managed Services win in the

United States market, representing the first

significant Managed Services contract win led

from North America.

Services margins decreased by 592 basis

points and are now 1,082 basis points below

the overall combined Group Services margin.

While contribution from Services increased

with the greater volume and the addition of

a full year of Pivot, margins were down from

the prior year, as the new Managed Services

contract was in the first year, where we often

earn lower margins, and deployment services

average margins are lower than other parts

of the Services portfolio.

Revenue growth in North

America was driven by

the acquisition of Pivot;

however, organically,

excluding the Pivot

business, North American

revenue was up a strong

27.9 per cent.

Kevin Shank

President, North America

Members of the North

American leadership team

Strategic Report

Annual Report and Accounts 2021

INTERNATIONAL

The International Segment comprises a

number of trading entities and near-shore

and off-shore Service Center locations.

The trading entities include Computacenter

Switzerland, Computacenter Belgium and

Computacenter Netherlands. In addition

to their operational delivery capabilities,

these entities have in-country sales

organisations, which enable us to engage

with local customers.

These trading entities are joined in the

Segment by entities where we operate

near-shore and off-shore Service Centers

and fulfil business for our clients in Spain,

Malaysia, India, South Africa, Hungary, Poland,

Romania, China and Mexico. These entities

have limited external revenues.

Early in 2020, we set up offices in Madrid and

Barcelona with the aim of developing our

business in Spain through a local sales team.

After careful consideration, we reviewed our

international sales strategy towards the end

of 2021 and decided to serve our customers in

Spain through our other European operations.

While we remain active in Spain with a support

team of over 500 service agents and

engineers, we will no longer have a dedicated

sales team in the country.

Financial performance

Revenues in the International Segment

increased by 9.6 per cent to £191.0 million

(2020: £174.3 million) and by 13.6 per cent

in constant currency

Our trading entities in the International

Segment produced a good performance in

2021. Whilst 2020 was challenging due to the

Covid-19 crisis, the business bounced back

to healthy volumes and profitability in all

countries in 2021. We have not benefited from

any government support related to Covid-19 in

2021, apart from a very small amount for a

reduced period in our Belgian operations,

which ceased with effect from 1 May 2021.

Gross profit increased by 28.0 per cent to

£39.3 million (2020: £30.7 million), and by

32.8 per cent in constant currency

Adjusted

administrative expenses

increased by 3.3 per cent to £28.0 million

(2020: £27.1 million) and by only 6.5 per cent

in constant currency

Overall adjusted

operating profit

increased by 213.9 per cent to £11.3 million

(2020: £3.6 million) and by 242.4 per cent in

constant currency

Revenue £m

+9.6%

191.0

Adjusted

operating profit £m

+213.9%

11.3

Services Contract Base £m

+15.1%

51.7

2021

2020

2019

2018

2017

191.0

174.3

193.0

102.2

75.3

The Belgian business saw a significant

increase in profitability during 2021, thanks

to a combination of good workplace and

infrastructure projects and an excellent

performance in the Managed Services area.

As expected, the Swiss business had to cope

with a significant scope change in two major

Managed Services contracts, but

compensated for this by identifying other

projects within the contracts, winning new

contracts with large organisations and a

continued focus on cost control.

After a difficult 2020, our business in the

Netherlands saw a remarkable profit

increase. We have a traditionally strong Dutch

public sector business, and we were able to

extend this, with a significant win in the

private sector, delivering promising

contributions in 2021.

Revenue by business type

1. Source

59.1%

2. Transform

4.5%

3. Manage

36.5%

Our performance in 2021

continued

Technology Sourcing performance

Technology Sourcing revenue increased by 2.1

per cent to £112.8 million (2020: £110.5 million)

and by 5.9 per cent in constant currency

The International Segment was affected by

worldwide component shortages, and we

faced challenges to deliver goods on time to

our customers. Despite these difficult

circumstances, our teams worked hard to

keep customers informed about the

availability of goods and possible alternatives.

As part of one of the world’s largest VARs, we

are well supported by the Group to address

local priorities with our technology partners.

We have also been successful in delivering

extended Services to local customers by

leveraging Group capabilities, both on a local

and international scale.

We have invested locally in partnerships and

certifications to strengthen our relationships

with technology partners. For example, we

have strengthened our relationship with Apple

in both the Netherlands and Switzerland.

Our Belgian operation was the first partner in

Belgium to achieve the Cisco IOT Advantage

Specialization and was rewarded with the

Cisco Customer Experience award.

As in all other regions, we expect that the

worldwide component shortages will continue

to challenge us in 2022 but we are committed

to working closely with our customers and

technology partners to keep the impact to

a minimum.

Services performance

Services revenue increased by 22.6 per cent

to £78.2 million (2020: £63.8 million) and by

26.9 per cent in constant currency

Professional Services revenue increased by

18.1 per cent to £8.5 million (2020: £7.2 million),

which was an increase of 23.2 per cent in

constant currency

, whilst Managed Services

increased by 23.1 per cent to £69.7 million

(2020: £56.6 million), which was an increase

of 27.4 per cent in constant currency

In general, we were pleased with the

performance of our Services business.

Our Professional Services business suffered

from the Covid-19 crisis in 2020 and

recovered well in 2021, although we estimate

that activity has still not returned to

pre-pandemic levels.

In Belgium, we secured and extended our

main Managed Services contracts. In

Switzerland, we have fully optimised our

delivery model and identified project

extensions in our largest Managed Services

contracts. Our Dutch operations also grew in

Services, although we see opportunities to do

significantly better in 2022.

2020 was a difficult year for the International

Segment, and we were pleased by the way we

returned to good business levels in 2021.

Furthermore, we see good opportunities to

grow our business. In each of the operations,

we have identified opportunities to grow by

exploring new business sectors (such as the

public sector in Belgium and private sector in

the Netherlands), or customers, for example

by further developing international

customers, based on our success in this area

in 2021. We therefore have confidence that

there is still plenty of scope to grow further

in 2022.

We have invested

locally in partnerships

and certifications

to strengthen our

relationships with

technology partners.

Lieven Bergmans

Managing Director, Rest of Europe

Members of the Rest of

Europe leadership team –

part of International

Strategic Report

Annual Report and Accounts 2021

Sustainability strategy

WINNING TOGETHER

FOR OUR PEOPLE

AND OUR PLANET

Our Purpose is Enabling Success by building long-term

trust with our customers, our partners, our people and

our communities. To achieve this, we have been actively

committed for many years to a leading environmental,

social and governance (ESG) approach, which we

recognise is essential to ensuring the long-term future

of our Company, our people and our planet. We are now

bringing together our various ESG activities into a single

sustainability strategy.

1981-2021

We’re proud of what

we’ve achieved and

we’ll continue to

improve, invest and

innovate. We’ll be the

best that we can be

– a company that our

people, customers,

partners and

communities can

be proud of.

Mo Siddiqi

Group Development Director

600

tonnes of reusable raw

materials generated through

industrial recycling

455,000

assets (main and peripheral)

redeployed to customers

saving them £50 million

128,000

tonnes of carbon avoided

through reuse of assets

(redeployment and

remarketing)

3,200

new people hired

50,000

candidate applications

received

74%

reduction in carbon

emissions per employee

since 2019

1.8m kWh

of electricity generated by

Hatfield solar farm

82%

Sustainable engagement

in employee survey

73%

of Group electricity usage

is now from green energy

sources

TOP EMPLOYER

INSTITUTE

CERTIFICATION

in the United Kingdom

and Germany

Group emissions performance over time (metric tonnes)

2021

2020

2019

2018

2017

5,210

13,856

19,808

19,741

22,662

2021

2020

2019

2018

2017

0.78

2.55

3.91

4.53

6.20

2021

2020

2019

2018

2017

0.30

0.84

1.23

1.30

1.54

Per £1 million of revenueTotal Scopes 1 and 2 emissions Per employee

CARBON NEUTRAL

FOR SCOPES 1 AND 2 EMISSIONS

IN 2022

WE AIM TO BE

2021 HIGHLIGHTS

Strategic Report

Annual Report and Accounts 2021

Sustainability strategy

continued

This strategy, ‘Winning Together for our people

and our planet’, is underpinned by Our Values

and Our Purpose and is a fundamental part

of how we work day-to-day. We focus on the

areas that are most important to us and our

stakeholders, and where we can make the

biggest difference.

The strategy is based on three pillars (people,

planet and solutions) and underpinned by

communications, governance, and standards

and frameworks. Each area is owned by the

appropriate member of the Group Executive,

to ensure alignment and accountability

across the organisation and to engage and

empower our people to achieve our

sustainability objectives.

WINNING TOGETHER

FOR OUR PEOPLE AND OUR PLANET

SUSTAINABILITY STRATEGY FRAMEWORK

Supporting people and communities

Delivering positive social impact, with

a focus on our people.

Ensuring sustainable operations

Taking a responsible approach across

our operations, including our direct and

indirect environmental impact and

oversight of our supply chain.

Communication across all stakeholder groups and channels.

Underpinning accountability, investment plan, compliance and reporting.

Offering sustainable customer solutions

Helping our customers with their

sustainability goals through our

service offerings with a focus on

Circular Services.

Exec owner: Sarah Long Exec owner: Tony Conophy

Exec owner: Mo Siddiqi

Exec owners: Tony Conophy and Mike Norris

Exec owner: Mo Siddiqi

COMMUNICATION

GOVERNANCE

STANDARDS AND FRAMEWORKS

PEOPLE SOLUTIONSPLANET

STANDARDS AND FRAMEWORKS

Our sustainability strategy is aligned to the below global standards and

frameworks that are essential for compliance or most relevant to our

key stakeholders. In addition, we align to other standards and

initiatives as appropriate in specific countries.

UN Sustainable Development Goals

We are focused on where we can take meaningful

action aligned to nine of the UN Sustainable

Development Goals.

Ensure healthy lives and promote

wellbeing for all at all ages

We will support the mental and

physical wellbeing of our employees

by ensuring that our people have

quality working lives and feel safe

and protected.

Ensure sustainable consumption

and production patterns

We will work with our technology

partners and customers to promote

sustainable technology sourcing,

supported by our own Circular

Services solutions.

Ensure inclusive and equitable quality

education and promote lifelong

learning opportunities for all

We will work to remove barriers that

exist in our local societies, creating

employment, training and educational

opportunities.

Take urgent action to combat climate

change and its impacts

We will continue to take action to

reduce our climate impacts both

direct and indirect, aligned to science

based targets.

Achieve gender equality and

empower all women and girls

We will continue to work towards

achieving a balanced gender mix in

a male-dominated industry.

Promote peaceful and inclusive

societies for sustainable

development, provide access to

justice for all, and build effective,

accountable, and inclusive

institutions at all levels

We will continue to be an ethical

business while being mindful of

the impact we can have on people

and communities.

Task Force on

Climate-related

Financial Disclosures

This is now a mandatory

reporting requirement and is

covered in detail on page 62.

Science Based

Targets Initiative

Computacenter has committed to this

standard for carbon reduction plans

aligned to the Paris agreement. We will

make an SBTi submission in 2022 and

the feedback will support our carbon

reduction roadmap for the next few

years. We expect to be Carbon Neutral for

Scopes 1 and 2 in 2022. We have a Net

Zero (Scopes 1, 2 and 3) target by 2040,

but we will aim to achieve this earlier, as

the measurement standards for Scope 3

emissions and our corresponding

roadmap become clearer.

UN Global Compact

Computacenter has been a proud

signatory of the UNGC since 2007 and we

are committed to supporting the 10 core

principles of the UNGC, including

embedding them within our supply chain.

Principles 1-6 cover human rights and

labour. We support these through our

people-related policies within the ‘people’

section of our sustainability strategy on

page 44.

Principles 7-9 cover the environment and

we discuss this in detail in the ‘planet’

section of our sustainability strategy.

Principle 10 covers anti-corruption and

our zero-tolerance approach to bribery

and corruption is discussed on page 48.

EcoVadis

EcoVadis is an overall

sustainability framework

selected by some of our

customers, which we have

also chosen to use as a

key benchmark.

We have achieved Silver and

Gold EcoVadis ratings in

different countries and

expect to progress further

over the next two years.

Promote sustained, inclusive,

and sustainable economic growth,

full and productive employment,

and decent work for all

We will maintain high standards of

employment for our people and will

work with our supply chain to build

resilience and decent work.

Build resilient infrastructure,

promote inclusive and

sustainable industrialisation,

and foster innovation

We will be responsible as a business to

make a positive impact in our industry

and wider communities.

Reduce inequality within and

among countries

We will continue to foster an

environment which enables

employees to speak openly and

ensure they have the knowledge they

need to promote a positive and

inclusive environment for all.

Strategic Report

Annual Report and Accounts 2021

Sustainability strategy

continued

Our Group headquarters – Hatfield, United Kingdom

PEOPLE VISION

Our business is about technology. But first

of all, it’s about people.

The desire to deliver great outcomes for our

customers drives our people and underpins

our people vision and culture. We aspire to

recruit and retain the best talent. We then

help our people to be their best through

development and training, fostering

engagement and inspiring leadership.

Each of these aspects is discussed below.

Our culture is underpinned by our values and

directly supports Our Purpose, which enables

our people to understand how we deliver

successfully for our customers and the

business and the role they play in doing so.

Attracting talent

Our Future Talent programme develops the

next generation of professionals through an

innovative, focused and flexible approach to

apprenticeships and graduates. In 2021, we

increased our intake to this programme with

403 hires, of which 31 per cent were women.

We continued to recruit significantly in 2021,

with more than 3,200 new hires, an increase

of approximately 50 per cent from 2020.

Recruitment has been significant in Germany

and India in particular, with the United

Kingdom, South Africa and North America

also increasing headcount. We also started

business operations in Romania as a

near-shore Professional Services hub and

have built a team of over 80 people, with

a focus on software development.

In an increasingly competitive talent market,

we have invested in our in-house sourcing

capacity, employer branding and marketing,

and run several campaigns, enabling us to

increase applications by around 50 per cent

in the fourth quarter of 2021. In total we

received over 50,000 candidate applications.

Our blended learning training for professional

interviewing helps us to secure talent and

ensure we have robust and fair hiring processes

and decision-making, which in turn promotes

diversity. This is supported by a Group-wide

AI-based language testing solution.

We use premium analytical tools to support

our workforce planning and talent acquisition

strategy, allowing us to significantly

accelerate recruitment and improve the

candidate experience. We also rolled out our

Group applicant tracking system to the United

States, with India, South Africa, Romania and

the Netherlands to follow. Due to the pandemic,

fewer apprentices were able to work on

customer sites during 2021. We therefore

increased e-learning, contributing to an

exceptional exam pass rate of 98 per cent.

PEOPLE

Our people are key to our success and the first pillar of

our approach to sustainability. Our social value strategy

primarily focuses on supporting our people, ensuring

effective leadership, promoting our values and

rewarding and recognising performance. We also

promote initiatives that support our communities,

both inside and outside our business.

Supporting people

and communities

82%

Sustainable engagement

in employee survey

3,200

new people hired

50,000

candidate applications

received

TOP EMPLOYER

INSTITUTE

CERTIFICATION

in the United Kingdom

and Germany

OUR WINNING TOGETHER VALUES

These are the values on which we built this Company and they are the values on which we will continue to grow Computacenter.

WE DO IT TOGETHER BY

Understanding people matter

We’re committed to being diverse and

inclusive. We build strong, rewarding,

supportive relationships. And we treat

people as we expect them to treat us.

Considering the long term

We’re building a sustainable business for

the long term. This leads our decisions and

actions and helps people really trust us.

Inspiring success

We’re proud of the people we work with.

We do our best to support each other

through the downs and we always

celebrate the ups.

WE WIN BY

Putting customers first

We work hard to get to know our

customers and really understand their

needs. This lets us use our experience

to help them in the right way at the

right time.

Being straightforward

We’re practical and pragmatic.

We believe in solutions over talk.

We express ourselves in the clearest

possible way. And we’re open and honest

in all of our dealings.

Keeping promises

We do our very best to keep our promises.

And when that’s difficult, we help our

customers find other ways of solving

their problems.

To attract diverse talent, we continue to

run outreach programmes with schools,

universities and charities. Examples include

promoting awareness of women in tech,

attracting black and minority ethnic

talent and people with disabilities, and

programmes targeting young people from

disadvantaged backgrounds.

We have continued to receive external

recognition as an employer, including Top

Employer Institute certification in the United

Kingdom and Germany. We have also been

ranked among the top five per cent of

companies on Kununu, a German employer

rating platform.

Talent management and learning

Computacenter’s positive and customer-

focused culture contributes to an average

length of service of over nine years, with many

people returning after taking roles elsewhere

or having career breaks.

Future Focus, our continuous performance

management tool, continued its global rollout

in 2021. The process enables continuous

dialogue and feedback, especially when

working remotely, and specifically addresses

personal wellbeing under stress during the

pandemic. We have published education and

communication material for managers and

our people, to help them make the most of

the system.

In 2021, we designed an approach to develop

and retain talent, aligned with Future Focus.

This allows employees to drive their own

development plans, with the support of their

managers. We also conducted a global rollout

of several e-learning platforms and initiated a

project to find a Group-wide learning partner

to act as a strategic adviser for content and

partner management.

Our Winning Together Values

Our Company values are at the core of

what we do and bind us across our global

community. They are the values on which

we built this Company and they are the

values on which we will continue to grow

Computacenter. Our values are integral to

shaping our culture and building a common

sense of purpose, and they are critical to our

ability to scale. We continue to monitor and

reinforce our values, while respecting and

embracing local cultures and ways of working.

Understanding people matter

Considering the long term

Inspiring success

Putting customers first

Being straightforward

Keeping promises

Winning

Together

A highlight from our

recent employee

survey was that

people felt ‘able to

be themselves’ at

Computacenter,

reflecting the work

done on diversity and

inclusion by teams

across the Company.

Sarah Long

Chief People Officer

Strategic Report

Annual Report and Accounts 2021

Sustainability strategy

continued

Fostering engagement

We know that engagement is key to our

success and that a highly engaged workforce

helps us deliver better outcomes for our

customers. We have a number of different

forums for engaging with our people. These

include our People Panel, surveys, unions

and our employee assistance programmes.

We also have Works Councils in several

European countries, as well as an overall

European Works Council. These meet regularly

with the Group Executive team and other

senior managers.

Ros Rivaz is our nominated Non-Executive

Director aligned to our people. She engages

with groups such as our European Works

Councils and our UK National Forum and

attends People Panel and Employee Impact

Group sessions. This allows her to gain direct

insight from our people and share it with the

Board, ensuring that their input is taken into

account. These interactions are highly

appreciated by the employee groups and

feedback regarding Ros’s engagement is

unanimously positive.

The pandemic has required us to remain

connected with our people in different ways,

recognising the pressures they face at home

and at work. We communicate regularly on

any changes to working practices, following

government guidance, while also

implementing our hybrid-working principles.

These balance the need to be together for

collaboration, learning, development and

engagement, while enabling home and

remote working, and recognising our peoples’

preferences. This process is supported by

local ‘spotlight’ surveys, which we run to

collect feedback from groups of our people.

During November 2021, we ran a

comprehensive global employee survey, which

reviewed all aspects of how our people feel

about working at Computacenter. We were

pleased with the results, gaining a score of

82 per cent for sustainable engagement.

Sustainable Engagement includes traditional

engagement (connection to the Company) as

well as enablement (support for productivity)

and energy (overall wellbeing).

The positives we took from the survey are that

our people:

• feel well supported and respected by

their managers;

• trust the decisions made by our leadership

and management teams;

• feel they have good opportunities for

personal growth and development;

• feel ‘able to be themselves’ at

Computacenter, reflecting our work on

diversity and inclusion and the surveys we

run to listen to employee opinion; and

• feel positive about being part of

Computacenter and have high expectations

of an ongoing career, recognising

Computacenter as a good employer.

At a Group level, areas for improvement are:

• creating a clear understanding of strategy

at the team and individual level;

• better communication and management

of change;

• better communication and promotion of

our environmental responsibilities and

actions; and

• ensuring systems and processes

are geared to providing excellent

customer service.

The detailed results of the employee survey

down to team level have been shared with all

team managers across the Group. They are

being supported by the Human Resources

(HR) team to develop action plans for their

specific areas, based on the feedback from

their teams.

At a Group level, we will launch a plan to

address the main areas for improvement

which will include:

• improved cascade messaging on strategy,

ensuring we help all teams understand the

value they add;

• launch of the new sustainability strategy

with regular updates, supported by a

communication programme for individual

areas throughout the year; and

• communication of an IT systems

development and update roadmap for

the next few years, which we have

already started.

Developing leaders

We expect leaders to be role models and to

drive responsible business for the long term.

Our values underpin our leadership principles

of collaboration, being inclusive, having an

open mindset, innovation and leading as

a coach. These attributes are used when

recruiting future leaders and in our

development programmes. In 2021, we

continued to develop our ‘Culture at CC’

workshops, to reflect on our leadership

principles, discuss what it means to be

a leader and communicate the support

available to leaders to help achieve their goals.

Almost 500 leaders completed development

courses during 2021. We also enhanced our

Leadership Suite, launching Leadership Basics

for aspiring leaders and the New Leaders

Roadmap, which includes Mastering Personal

Leadership training. Purposeful Leader, our

flagship senior programme, rolled out globally

and our Experienced Leader roadmap was

finalised for delivery in 2022.

In addition, we piloted a Leadership Excellence

course, to help leaders assess their strengths

and development needs with their teams.

Other pilot programmes for both leaders and

employees have been designed to help manage,

implement and communicate change.

We ran cultural awareness training to ensure

our people have the right knowledge and skills

to work effectively and collaboratively across

cultures. Exploring ‘How We Work’ also equips

leaders to manage employees across

different countries, including legislative

elements and best practice.

During 2021, we ran our enhanced succession

planning process and completed plans for

all executives, leaders and critical roles.

The programme will continue in 2022.

Diversity and inclusion (D&I) and wellbeing

One of the most important factors in

Computacenter’s growth is ensuring that all

our people are valued and supported to reach

their full potential. We are therefore

committed to improving workforce diversity

and preventing discrimination on grounds of

age, race, religion and nationality, and we

have policies to support this. The Group has

a dedicated D&I manager, who works closely

with our HR managers and business partners

to embed D&I into our people plans.

To focus our D&I work we target six pillars,

which were developed by our people. These

pillars are: gender, culture, age, accessibility

and wellbeing, LGBTQ+, and life balance.

Key themes that run alongside the six pillars

are recruitment and retention, and

organisational culture.

Our key objectives this year include improving

our gender balance and promoting ethnic

diversity and inclusion, and we made

significant progress in 2021. We launched new

development programmes, including our

‘Leading Together’ programme for our most

senior women, to focus on their development

and how they can inspire future female

leaders. Our ‘Ethnic Diversity Development’

Programme resulted in a new pilot in the

United Kingdom to develop and advance our

people from ethnic minority backgrounds.

We also completed one of two pilots for a D&I

programme to make our people more aware

of their behaviours and how they can create

an equitable and inclusive environment.

Another priority is to promote wellbeing.

Each country has an ‘Employee Assistance’

programme, enabling everyone to get

specialist wellbeing support. We have also

launched our Group-wide wellbeing app,

Be Well. This offers content ranging from live

exercise classes to mindfulness tips and

healthy recipes, helping our people to stay

physically and mentally healthy. In 2021,

we ran a global step challenge, to drive

engagement, promote wellbeing and

encourage people to get active. This challenge

saw great participation from all countries.

Promote WELLBEING

Proactively promote our people

to look after their own physical

and mental wellbeing.

Speak FREELY

Create an environment which enables

employees to speak openly, and to identify

actions to improve employee experience.

Help EDUCATE

Facilitate the delivery of targeted

education to every Computacenter

employee, to equip them with the

knowledge they need to promote

a positive and inclusive environment

for all.

Be ACCESSIBLE

Support and drive initiatives to improve

the accessibility of Computacenter,

removing any barriers that prevent

people achieving their potential.

DATA

Ensure we have

the data that enables

us to measure the

success of

ongoing work.

We also continued our online training on

mental health for line managers and offered

courses on subjects such as stress. Our

awareness programme for our people runs

quarterly campaigns on wellbeing topics.

Gender diversity

The table below shows our gender diversity at

the year end:

2021 2020

Women Men Women Men

Board 3 6 2 7

Senior

managers 28 94 25 98

Other

employees 4,726 13,135 4,196 12,340

Total 4,757 13,235 4,223 12,445

Although the proportion of women we employ

is in line with industry norms, we are committed

to increasing it. Initiatives specifically aimed

at improving gender diversity include our

‘Growing Together’ programme of activity

designed to create a gender-diverse talent

pool in middle and senior-level roles by

providing development opportunities

specifically focused on our female employees.

In 2021, we were proud to have reached more

than 100 delegates who had attended the

programme since it began. We have seen good

growth in the number of female senior leaders

across the Group, with an increase of 4.4 per

cent in the year.

We were proud to have two winners at the

2021 CRN Women in Channel Awards and to

receive two corporate awards, the Health

and Wellbeing Recognition Award and the

Best Community Outreach Programme, for

our commitment to school and community

outreach with a focus on diversity. In

Germany, we had two winners in the Women’s

IT Network awards. We were also recognised

by Brigitte Magazine as one of the best places

in Germany for women to work.

One of our key successes this year was the

growth of our first Employee Impact Group

(EIG), focusing on ethnic diversity. Its

members come from across the Company

and it helps employees to create sustainable

change. The EIG has hosted a range of

activities including our Breaking Barriers

event, co-hosted with CRN, which saw over

180 professionals from the sector join expert

speakers and industry leaders to share

advice and best practice on making our

industry more inclusive to people from ethnic

minority backgrounds.

We have now launched two new EIGs on

Gender, and Wellbeing and Accessibility.

Their steering groups have begun to design

a Group-wide approach to these topics,

which can be delivered locally.

EMPLOYEE IMPACT GROUPS

Our Employee Impact Groups help give our people the opportunity to influence and create a working culture they are proud to be part of.

EIGs are a great way

to give employees a

voice that is not only

heard but acted on by

the business. They

change the narrative

by enabling employees

to be at the heart of

solutions and drive

beneficial change via

actions over words.

Colin Williams

Ethnic Diversity Steering Group member

Strategic Report

Annual Report and Accounts 2021

Sustainability strategy

continued

In our recent employee survey, we achieved

positive results for the inclusion questions,

showing that our people believe we support

equality of opportunity and that they can be

themselves at work without worrying about

not being accepted.

Our investment in wellbeing has been further

supported with the introduction of a dedicated

wellbeing manager. This has allowed us to

focus our wellbeing strategy on the areas that

our people need and has already led to further

Mental Health First Aiders being trained, the

launch of menopause guidelines and support

network, and signing up to participate in the

Mind Workplace Wellbeing Index.

Reward and recognition

Pay for performance is at the heart of our

reward philosophy. As well as ensuring that

our people are paid in line with any legislative

requirements, including national minimum

wages and equal pay, our goal is to align pay

with each employee’s contribution. As part of

this, we carry out annual pay reviews for all

our employees across the globe.

In March 2020, we launched a global peer-to-

peer recognition tool called ‘Bravo!’ This allows

our people to immediately recognise and

thank one another for their valuable

contributions in the workplace. The tool also

allows managers to award points for

exceptional performance and practice, which

are redeemable with selected retailers or may

be donated to selected charities in-country.

The next step in our journey with Bravo! was

the launch of Bronze, Silver and Gold awards in

2021. These rewards are specifically targeted

at those who demonstrate our values to the

highest possible standard.

Supporting communities

We recognise the importance of delivering

social value for our communities and we

support our people to take part in activities

where they can make the most difference.

Our main aims are to:

• demonstrate our commitment to the

wider community;

• motivate employees by encouraging

team-building activities in a worthwhile

cause; and

• promote Computacenter’s Winning

Together Values to customers, our people

and other stakeholders.

We continue to support initiatives to raise

money for local charities, as well as

supporting activities proposed and run by

our employees. Some examples are below.

The impact of the floods in Western Europe

was particularly relevant to our employees

this year. In response, we donated a total of

€25,000 to ‘Aktion: Deutschland hilft’ and the

German Red Cross. We also supported

affected employees and the wider

community, establishing a platform where

employees could offer practical help and

allowing 220 days of paid time off for those

supporting the recovery effort.

In the UK, we support the charity partners

selected by employees – Make-a-Wish

Foundation, British Heart Foundation and

Dementia UK – through fundraising steered by

the Charity Committee. We also offer a Give as

You Earn scheme, through which employees

can make monthly contributions to any UK

charity. Our Bravo! employee recognition

scheme also allows employees to donate their

voucher rewards to our chosen charities.

Our work with potential future talent is a key

part of our strategy for delivering social value

in our wider communities. Over the last few

years, we have developed strong partnerships

with a number of schools, universities and

charities in the UK, with our community

education outreach programme continuing to

grow in 2021 and winning CRN’s award for

‘Best Community Outreach Programme’ in the

UK tech channel.

In 2021 we reached over 5,000 students and

young adults, and of those:

• 53 per cent identified as female;

• 45 per cent identified as male;

• 2 per cent identified as non-binary;

• 35 per cent were from an ethnic minority

background;

• 55 per cent came from a disadvantaged

background;

• 25 per cent were in the care system; and

• 20 per cent were disabled.

We committed further support for our wider

communities when we first signed the UK

Armed Forces Covenant. As part of our

commitment to this and our investment in

military service leaders, January 2022 saw

the launch of our new Veteran Transition

Programme in the UK. This is an exciting,

frontline sales development programme that

provides carefully selected rotations across

key business functions. After successful

completion, it leads to a role as a Solution

Sales Specialist.

Ethics and conduct

Computacenter has a range of people-related

polices, covering topics such as equality and

respect at work, health and wellbeing,

recognition and reward, and whistleblowing.

Together, they are designed to ensure that our

people are supported, protected and suitably

recognised for the contribution they make,

and that we are an inclusive and ethical

employer, with a diverse, talented and

motivated workforce.

Our people can report any HR policy

compliance issues to their line manager or HR,

or they can call our Safecall whistleblowing

hotline, which allows them to report in

confidence. All calls to the hotline are handled

by an independent third party and the issues

are monitored, resolved and reported to the

Audit Committee. All other issues are dealt

with operationally, through the HR function.

We also monitor other indicators of policy

compliance, such as the number of grievance

or disciplinary proceedings, which we

aggregate at a country level. Our HR managers

review this data to see if there are trends

requiring management action. No material

policy breaches were identified during the

year, either through the whistleblowing

hotline or our other compliance processes.

Anti-bribery and corruption

Computacenter has a well-established

Anti-Bribery and Corruption compliance

framework. This is underpinned by our Ethics

Policy which, together with specific Anti-

Bribery and Corruption and Fraud policies,

provides a clear set of rules and expectations

that are applied across our business. This is

supported by employee training and

guidance documentation.

The Anti-Bribery and Corruption compliance

framework is overseen by the Group Legal and

Compliance Director and our Compliance

Steering Committee. It is regularly audited by

our Internal Audit function. The framework is

supported by our externally managed

confidential whistleblowing hotline provided

by Safecall, an industry recognised provider

of such services. No material breaches of our

policies were identified during the year.

We continued to reinforce our zero-tolerance

approach to bribery and corruption

throughout 2021, providing training as an

integral part of our induction process and

ensuring continued awareness of our

whistleblowing hotline across the Group. This

ensures that all employees, contractors, third

parties and suppliers know that they are able

to report any issues on a confidential basis.

Computacenter Group

Collection of Computacenter images illustrating the range of activities our people are involved with.

INSPIRING FUTURE GENERATIONS

In partnership with schools, universities and charities we have reached

over 5,000 students in 2021 providing:

• Advice on careers in STEM and promoting women and ethnic

diversity in tech

• On-site visits at Computacenter

• Speak to the expert days

• Lessons about technology

• Work experience for students

• Assessment centre preparation workshops

• Mock interviews and CV writing

• Social media safe workshops

• Apprenticeship challenges

• Guidance to ensure work readiness

• Career fairs

• School employability strategy support, including those

with disabilities

In October 2021 we

were proud to be

recognised at the

CRN Women in

Channel Awards 2021

for our Community

Outreach Programme.

Strategic Report

Annual Report and Accounts 2021

I love our company and I feel

privileged to say that. Energy

is part of our DNA and that’s

what makes Computacenter

so special and admired by

our customers, vendors

and partners.

Robbie Degen

Client Director,

United Kingdom

I’ve been with Computacenter

for 17 years and I’ve developed

with this Company into a Group

leadership role. I’m inspired to

see our people come together

to deliver the best possible

services for our colleagues and

customers around the world.

Inga Opel

Delivery Enablement Director,

Germany

Working at Computacenter is

truly exciting. My co-workers

are excellent – they know

what needs to get done and

how to do it. What I like most

about working here is obvious

– the people!

Rob Deluca

Service Manager,

North America

From day one, Computacenter

felt like home to me. Working

here has allowed me to

develop so much and good

work is appreciated. I’m

honoured to be working at a

respected company with an

incredible people culture.

Sylvie Knuth

Transition & Take-on Specialist

Associate, Germany

WINNING

TOGETHER

A selection of our people from across the

Group, sharing their stories about what 2021

has meant for them and their customers.

1981-2021

Sustainability strategy

continued

I’m proud that Computacenter

is regularly recognised as a

great place to work and I’m

lucky to be surrounded by real

and talented people, in a

company that encourages us

to explore our full potential.

Christian Sigrist

Divisional Head, Operations,

Switzerland

I love that my role allows me to

work with people from different

cultures and backgrounds.

Understanding that people

matter is a core Computacenter

value and I’m grateful for

the personal growth and

development I’ve experienced.

Yomi Bello

Global Service Director,

United Kingdom

I joined Computacenter in

2001 and my role has never

stopped evolving. During my

time here, I’ve understood

that embracing change and

sharing knowledge with

others allows you to develop

skills and to grow, personally

and professionally.

Delphine Begue

Executive Assistant, Human

Resources, France

Computacenter shows how

leadership with vision and

people with commitment

can win together. I share my

workplace with wonderful

people and we strive every

day to live up to our values

and deliver for customers.

Pradeep Kumar

Delivery Director, Group Services,

India

Computacenter is the first

company that has empowered

me to do the work that I love.

I feel responsible and motivated,

and it is really great to be part

of a collaborative and

supportive team.

Adam Pfliegel

Delivery Excellence Manager,

Source & Deploy, Hungary

I’ve worked for

Computacenter for a

year on some demanding

projects, full of challenges.

I really enjoy the job,

because I can break my

own limits and improve

my skills every day.

Weronika Maślak

Second Line IT Analyst,

Poland

Sustainability strategy

continued

The Group has an environmental policy,

which we enact through an Environmental

Management System (EMS) certified to

International Management standard BS EN ISO

14001:2015. The environmental policy requires

us to identify our significant environmental

impacts and provides the framework for

setting targets and objectives. We are not

aware of any breaches of the policy in 2021.

Our Climate Committee leads our approach

to reducing our environmental footprint. It is

chaired by the Group Finance Director and

includes Group managers and senior

employees with specific environmental

interests. The Committee debates and

proposes initiatives, with material

investments then approved at Group

Executive level. The Committee met four

times during 2021.

Our environmental commitment

We aim to be Carbon Neutral in 2022 for

Scopes 1 and 2 emissions. Scopes 1 and 2

emissions include all our direct emissions

such as our facilities and some of our indirect

emissions such as electricity purchased. This

will be achieved by a combination of increases

in our own renewable energy generation,

continued investment in energy-efficient

lighting and equipment, the purchase of

electricity generated by renewable sources

and the purchase of carbon offsetting credits

The Board has agreed a target of being Net

Zero for Scopes 1, 2 and 3 emissions by 2040,

ten years ahead of our previous target. Scope

3 emissions include all other indirect

emissions, such as our business travel and

transportation, as well as those from sources

that we do not own or directly control,

including our supply chain.

Our first report on the requirements of the

Task Force on Climate-related Financial

Disclosures (TCFD) can be found on pages

62 to 64.

PLANET

Kerpen, Germany

Solar panels in our car park at the

Kerpen headquarters.

Hatfield, United Kingdom

Volume laptop redeployment with packaging

removed at our Integration Center.

We take a responsible approach to reducing our direct and

indirect environmental impacts and overseeing our supply

chain, as part of our commitment to sustainable operations.

Ensuring sustainable

operations

74%

reduction in carbon

emissions per employee

since 2019

1.8m kWh

of electricity generated by

Hatfield solar farm

73%

of Group electricity usage

is now from green energy

sources

Hatfield, United Kingdom

The solar panels on the roof of our Hatfield Integration Center were one of the largest installations of its type in the UK in 2020.

Energy usage

In 2021, the Group consumed 38.5 million kWh

of electricity, of which the UK accounted for

50 per cent. 73 per cent of the Group’s

electricity usage came from renewable

sources, a significant improvement from

approximately 30 per cent in 2020.

We benefited from a full year of electricity

generation from the 6,308 solar panels

installed at our Hatfield (United Kingdom)

Integration Center in 2020, which generated

approximately 1.8 million kWh in 2021 and

saved around 400 tonnes of annual CO

(based on UK conversion factors). On

1 October 2021, the 1,700 solar panels

installed at our Kerpen (Germany) Integration

Center became operational. In addition, we

have covered approximately 500 parking

spaces at Kerpen with carports that include

solar panels. These went live in the first

quarter of 2022. In total, the solar installation

at Kerpen can generate around 1.5 million kWh

per annum. The car park structures at Kerpen

have the additional benefit of protecting cars

from sun and snow and will have car charging

points attached to them. We have agreed a

proposal for installation of solar panels at our

Integration Center in Livermore, California,

which will have the potential to generate

around 0.75 million kWh per annum.

In addition to generating our own electricity,

we source green energy for our operations in

the UK and Germany. These agreements were

in place throughout the prior year in Germany

and for two months in 2020 in the UK, meaning

we have had a full-year benefit in 2021 from

the UK agreement. In total, we used 27.9

million kWh of renewable energy in 2021,

resulting in a further reduction in our CO

of approximately 4,953 tonnes.

We continue to find ways to reduce our energy

usage. For example, as IT equipment in our

offices needs replacing, we are rolling out

display screens that also power users’ laptops

and other devices, saving 50 to 60 per cent of

the power of having separate chargers. This

also results in cost savings from not buying

docking stations. All new offices will have

enhanced energy efficiency, and, for example,

we have included energy efficient lighting in

our new Paris office and our existing Roissy

and Gonesse locations, after refurbishment.

In 2020, we refreshed the air conditioning

system at our Manchester data center, so it

uses free cooling from the environment when

the outside temperature is low. This reduced

energy consumption there by 14 per cent

in 2021.

Being Carbon Neutral

(Scopes 1 and 2) in

2022 will be a major

milestone, based

on a number of

years of carbon

reduction efforts

across the business.

We will be one of the

first companies in

our industry to

achieve this.

Tony Conophy

Group Finance Director

Strategic Report

Annual Report and Accounts 2021

Sustainability strategy

continued

Greenhouse gas (GHG) emissions

The Company is required to state the annual

quantity of emissions from Group activities,

in tonnes of carbon dioxide equivalent, which

can be found below. Further details of our

environmental policies and programmes can

be found on our corporate website:

computacenter.com.

Global GHG emissions

(metric tonnes of CO

Year 2021 2020

Scope 1 1,908 5,640

Scope 2 3,302 8,216

Total 5,210 13,856

Scope 1: combustion of fuel and

refrigerants usage

Scope 2: electricity, heat, steam and

cooling purchased for own use

Scopes 1 and 2 emissions fell from 13,856

metric tonnes of CO

e in 2020 to 5,210 metric

tonnes in 2021, a reduction of 62 per cent. This

reflects the benefits of the UK green energy

contract, the Kerpen solar installation and the

other initiatives we have undertaken, partially

offset by a full year of the acquisitions the

Group completed in 2020. Our UK business

accounts for 22.1 per cent of total emissions.

The Group’s chosen intensity measurements

for emissions as reported above are:

• 0.78 metric tonnes per £m of Group revenue

(2020: 2.55 metric tonnes), a reduction of

69 per cent.

• 0.30 metric tonnes per Group employee

(2020: 0.84 metric tonnes), a reduction of

63 per cent.

We have a target to achieve Net Zero for

Scopes 1, 2 and 3 emissions by 2040. Our

roadmap to achieve this is underpinned by

Science Based Targets and includes the

following initiatives:

• Continued investment in green energy,

self-generating power solutions and

reducing consumption through both

implementing better technology products

in our own environment and enhancing the

efficiency of our facilities.

• Managing post-Covid-19 Group travel

through a mixture of incentives, travel

levies and technology-supported hybrid

working and collaboration.

• Working with our technology partners on

their own journey to Net Zero, to ensure that

the products we purchase for resale do not

increase our carbon footprint. Most of our

technology partners are among the leaders

in the global industry and share our

commitment to Net Zero.

• Working with our wider supply chains to

ensure they are aligned to our 2040 target

and hence reducing emissions in areas

such as transportation.

• Utilisation of our Circular Services

operations to avoid carbon consumption

with the reuse of technology assets and

extraction of raw materials through

redeployment, remarketing and recycling.

• Widening the adoption of our Circular

Services portfolio with our customers,

to enhance their carbon avoidance.

• Offset remaining emissions that cannot be

removed using accredited Gold Standard

(GS) carbon removal schemes. The GS is

a voluntary carbon offset programme

focused on progressing the United Nation’s

Sustainable Development Goals and

ensuring that projects benefit their

neighbouring communities.

We will regularly review and refine our

roadmap based on Science Based Targets,

to ensure that the evolution of standards in

this area is reflected.

Methodology

This activity has been conducted as part of

our UK EMS ISO 14001:2015 standard (EMS

71255). We have used the main requirements

of the GHG Protocol Corporate Accounting and

Reporting Standard (revised edition). Emission

factors used are from the UK Government’s

Conversion Factors supplied by DEFRA. We

have different factors for each country, as

electricity generation and CO

e efficiency vary

by country. External consultants assisted

with the implementation of our methodology

which we continue to further refine and

develop internally, to include the full

requirements to collate the additional

emissions, such as refrigerants.

Emissions performance over time (metric tonnes)

Group 2015 2016 2017 2018 2019 2020 2021

Total Scopes 1 and 2 emissions 24,795 25,518 22,662 19,741 19,808 13,856 5,210

Per £1 million of revenue 8.11 7.86 6.20 4.53 3.91 2.55 0.78

Per employee 1.92 1.80 1.54 1.30 1.23 0.84 0.30

Kerpen, Germany

Solar panels covering our car park area.

Kerpen, Germany

Solar panels on the roof of our Integration Center.

We have reported on all the emission sources

required under the Companies Act 2006

(Strategic Report and Directors’ Reports)

Regulations 2013. Group properties included

in this report are all current locations in the

United Kingdom, Germany, France, Belgium,

Spain, South Africa, United States, Canada,

Switzerland, Malaysia, Hungary, Mexico, India,

Poland, and the Netherlands.

Limitations to data collection

Less than 5.0 per cent of emissions were

estimated or based on an average energy

usage per square foot of space occupied.

Commitment to Science Based Target

initiative (SBTi)

In 2021, the Group joined the global movement

of leading companies aligning their businesses

with the most ambitious aim of the Paris

Agreement, to limit the global temperature

rise to 1.5°C above pre-industrial levels.

We will submit our targets to SBTi in 2022

for validation.

Carbon Disclosure Project (CDP)

We participated in the CDP and improved our

score from D to C in the most recent

submission. We continue to target further

improvements in our rating.

Procurement Policy Notice submission

As a supplier to the UK Government, we are

required to have a robust and documented

carbon reduction plan. We therefore made

the necessary Procurement Policy Notice

submission during 2021. This is part of a

broader pattern of government and public

sector customers adding criteria for

companies to meet, in order to remain eligible

to supply goods or services to them.

Energy Savings Opportunity Scheme (ESOS)

Computacenter complied with this legislation

by submitting its energy report, which

covered the period 1 April 2018 to 31 March

2019. The next submission is required in 2023.

Travel

Although travel is a necessary part of

conducting business, we want to ensure that

all trips are truly needed. We have a target to

reduce emissions from business travel by up

to 35 per cent by 2025, compared to 2019.

Covid-19 restrictions meant that we easily

met this target in 2021, using 0.63 million kg

of CO

during business travel compared to

5.2 million kg in 2019. However, this is a

challenging target to achieve in a normal year,

given the Group’s growth. We are continuing to

encourage the use of technology such as

video conferencing as an alternative to travel

and conducting a communications campaign

to urge people to travel less.

From 1 October 2021, we have introduced a

travel levy for all trips and hotel bookings

across the Group. The levy is £10, €12 or $14,

depending on the booker’s local currency. The

levy raised around €50,000 during the fourth

quarter of 2021. The money raised will be used

to offset the travel element of our Scope 3

emissions. In addition, when people book

flights, they can see the associated carbon

emissions on the flight booking system,

so they understand the impact and are

encouraged to use alternatives. In Germany,

where internal business flights are common,

we have implemented a pilot programme to

substitute flights for first class train travel, as

the national railway company Deutsche Bahn

achieves Net Zero emissions through offsets.

This is expected to further reduce our CO

impact in 2022.

Our employees have responded well to

our introduction of a 110g/km CO

e limit for

new company cars, with compliance at

approximately 53 per cent in the United

Kingdom and approximately 60 per cent in

France. Our German and Dutch fleets will

follow as the transition from legacy fleets

evolves to more electric vehicles and plug-in

hybrid cars and vans. We are installing electric

vehicle charging points at our sites, as the

need arises.

Service Center – Cape Town, South Africa

We used the opportunity of a new building in Cape Town to move to a more energy-efficient facility, built to high environmental standards.

Strategic Report

Annual Report and Accounts 2021

Materials usage

Materials include the packaging we use in our

Integration Centers and the packaging our

technology partners use when transporting

goods to us. This category also includes items

we mail and our use of single-use plastics.

Packaging materials

A number of customers are taking an

increased interest in reducing the packaging

that is supplied with their purchases,

particularly single-use plastics. Some

manufacturers are already supplying more

cardboard-based internal packaging and

have significantly reduced their plastic

content and are looking to remove it

completely in the next few years. Others have

made progress in this area during 2021 but

are still supplying plastic packaging. We have

further improved our recycling channels and

nearly all plastic bags are now either retained

to be re-used or separated and collected for

dedicated plastics recycling.

We regularly hold discussions with our

technology partners about their use of

packaging materials, to encourage them

to reduce the volume of packaging and to

substitute materials for those which can

be reused or more easily recycled.

e-invoicing

We send around 100,000 sales invoices each

month. Our investment in IT tools and

programmes in recent years mean that, for

example, in excess of 90 per cent of our UK

invoices are now sent electronically, which

reduces costs and our environmental impact.

The implementation of an e-invoicing system

in Germany is now in full effect, with the result

that approximately 88 per cent of invoices in

Germany are sent electronically.

Removal of pre-printed stationery

We have largely removed pre-printed

stationery across our offices and continue

to work to minimise the need for printed

documents, supported by our investments

in systems and collaboration tools.

Single-use plastics

Having already eliminated single-use items

such as plastic cups and bottles at Hatfield

and Kerpen in 2020, we have continued to

prevent similar usage at our other major sites

in 2021. As a result, we are substantially

eliminating the use of these items across

the Group.

Sustainability strategy

continued

Waste diverted from landfill

We look to send as little waste as possible

to landfill and closely monitor recycling

performance for materials such as plastics,

paper and cardboard. In 2021, 34 per cent

of waste in the United Kingdom was sent

to landfill.

Packaging waste regulation

Computacenter UK is registered as a

distributor of product via the compliance

company Paperpak, ensuring we have fully

complied with this regulation since 2000.

Logistics

We use logistics services to deliver products

to our customers. Minimising the environmental

footprint and the cost of these services

requires us to employ the Integration Center

nearest to the customer’s premises.

As previously noted, we have negotiated with

many UK customers to fulfil deliveries to their

EU operations from Kerpen rather than

Hatfield. This has the additional benefit of

avoiding post-Brexit challenges at the border.

We are working with our various logistics

suppliers to ensure that they are maximising

the impact of their own sustainability

strategies through, for example, the use

of low emissions vehicles.

Hatfield, United Kingdom

Laptop configuration as part of lifecycle asset management services from our Integration Center.

Health and safety

We are committed to providing safe and

healthy workplaces. Our policy is that, so far

as is reasonably practicable, we will create

and maintain an environment that is

committed to eliminating or reducing health

and safety risks to employees, customers,

suppliers, contractors, visitors and members

of the public.

Our approach to health and safety is based

on identifying and controlling hazards and

preventing incidents, particularly those

involving personal ill-health, injury and

damage to equipment or property. We also

investigate near misses, as an essential part

of preventing future incidents.

It is vital that everyone concerned is made

aware of their responsibilities for implementing

our health and safety policy. All line managers

are required to ensure that the policy is

implemented within their areas of

responsibility and employees must take

reasonable care of their own health and

safety and that of others who may be

affected by what they do. Failing to observe

the policy can result in disciplinary action.

We have continued to support our people in

workplaces by providing appropriate face

masks, cleaning materials and hand

sanitisers throughout these facilities.

Performance

The table below shows the health and safety

performance of our UK, Germany, and France

businesses. The Accident Incident Rate (AIR)

is the number of accidents per 1,000

employees and the Accident Frequency Rate

(AFR) is the number of accidents per 100,000

working hours.

AIR AFR

2021 2020 2021 2020

UK 0.87 0.58 0.07 0.11

Germany 1.99 1.62 0.42 0.34

France 0.69 0.64 0.14 0.14

We have continued to offer health and safety

training, for example covering display screen

equipment, manual handling, environmental

awareness, and safe driving.

In Germany, we have implemented a new

Environment, Health and Safety (EHS)

organisation, expanding the team and

providing necessary training. The function

covers Computacenter facilities and

approximately 300 on-site locations and

ensures there are dedicated contacts and

responsibilities in place for all operations.

Creating a central team has helped to deliver

synergies and simplify processes. Among a

wide range of initiatives, the function has

implemented a new software solution, and

carried out internal audits on EHS issues and

occupational health and safety inspections at

customer sites and in our offices. It has also

trained fire safety officers, who will create

fire safety regulations and evacuation

training during 2022 and take over

responsibility for fire safety from 2023.

The Group has continued to comply with all

relevant health and safety legislation in all

the countries in which we operate. This is

monitored using appropriate tools, controls

and measures, which form part of our overall

compliance management system. This in turn

is governed by the Group Compliance Manager

and Compliance Steering Committee.

Responsible business

Supply chain

We work with a diverse set of suppliers, who

play a key part in the success of our business.

When selecting suppliers, we ensure that our

terms of engagement are clear and that they

support both our Group values and our wider

sustainability objectives.

Onboarding of suppliers for most countries

is managed by the Supplier Contract

Management team. The team uses a

standardised on-boarding process. Among

other things, this validates that the request to

add the supplier complies with our Business

Ethics Policy, obtains a supplier self-

assessment on several topics, including

sustainability issues, and highlights to

prospective suppliers key Computacenter

policies, such as IT security, anti-bribery and

corruption and our Supplier Code of Conduct.

The Code of Conduct sets out the 10 principles

in the UNGC, which include human rights,

modern slavery, anti-bribery and corruption,

and environmental matters.

Regulatory changes, particularly in Germany,

will require us to be able to monitor supplier

status on certain issues on a regular basis,

in addition to the on-boarding process. We are

therefore evaluating tools that will support

our ability to do this. As part of this process,

we will replace the existing questionnaire with

a more concise set of questions covering only

what we need to operate effectively and

measure compliance. This will be combined

with a refreshed Supplier Code of Conduct,

which suppliers will either be asked to sign or,

for major suppliers, confirm that their own

ways of working align with the Code.

Human rights and modern slavery

For Computacenter, human rights falls into

two areas: protecting the rights of our

employees and those within our supply chain.

The human rights of our employees are

covered by our Health & Safety policies and

our Ethics & Conduct policies.

Human rights in the supply chain primarily

relate to the risk of modern slavery.

We published our most recent Modern

Slavery Statement, covering our 2020

financial year, in the first half of 2021, with

our report covering the 2021 year due to be

published imminently.

The Group publicises its whistleblowing

hotline to suppliers, to enable reporting of any

suspected human rights issues. There were

no such issues reported during the year.

Strategic Report

Annual Report and Accounts 2021

Sustainability strategy

continued

Our customers not only expect Computacenter to be a

sustainable supplier and partner but also to help them

to achieve their own sustainability goals. Our activities

here are in three areas: Circular Services, Technology

Advisory and Asset Lifecycle services.

Offering sustainable

customer solutions

Circular Services

In a traditional linear economy, goods are

made, used and then disposed of. The circular

economy means that we keep resources in

use for as long as possible, extract the

maximum value from them whilst in use,

then recover and regenerate products and

materials at the end of each service life.

Our subsidiary R.D. Trading Limited (RDC) is

responsible for our Circular Services offering.

The bedrock of the service is the audit,

data-wiping and safety testing of every

customer asset. Once in our system, the

circular journey can then begin, bringing to

customers the benefits, both financial and

environmental, of redeploying, remarketing

or recycling their old equipment. Putting

customer assets to good use elsewhere

within their business through redeployment

saves money and carbon against purchasing

new. Likewise, remarketing all functional

assets that are no longer required generates

cash, as well as reducing the carbon footprint

of third parties buying new. In addition,

recycling all the equipment that is too old or

damaged removes potentially harmful

materials from landfill, whilst extracting

metal and plastic products that can be reused

in manufacturing.

SOLUTIONS

RDC has put huge effort into ensuring the

accuracy of our recycling management,

with whole recycling facilities dedicated to

testing, measuring and filming of controlled

batches of our customers’ scrap, including

systems, screens, servers, networking

devices and printers. This has enabled us to

provide detailed records of metal, circuit

board and plastic material extracted from

the waste stream.

Combining redeployment, remarketing and

recycling with secure logistics and data

management into an integrated package

is at the core of Circular Services.

RDC’s capabilities are backed up by Circular

Services delivered in Germany from our

Kerpen Integration Center and recent

acquisition, ITL. We extend these capabilities

with partners worldwide to align with

Computacenter’s global coverage.

128,000

tonnes of carbon avoided

through reuse of assets

(redeployment and

remarketing)

455,000

assets (main and

peripheral) redeployed

to customers saving

them £50 million

600

tonnes of reusable raw

materials generated

through industrial recycling

Asset volume up 13% to

2.2 million

(main and peripheral) with

7% increase in weight to

4,450 tonnes

870,000

assets remarketed (main

and peripheral) to third

parties, returning over

£22 million in cash to

our customers

Braintree, United Kingdom

Our Circular Services Integration Center in Braintree is supplemented by facilities

in Germany and partners worldwide.

REDEPLOYMENT

On-site data sanitisation

REMARKETING

Technical processing

RECYCLING

Secure transport Secure environment

By using our Circular

Services, including

redeployment,

remarketing and

recycling, our

customers can avoid

carbon emissions,

helping them on

their own journey

to Net Zero.

Gerry Hackett

Managing Director, RDC

(Computacenter subsidiary)

Strategic Report

Annual Report and Accounts 2021

Sustainability strategy

continued

Technology advisory

Our role as both a trusted independent

technology advisor and provider of

Technology Sourcing for our customers puts

us in a unique position to help customers

drive their sustainability strategies through

a number of services.

Selection of the most sustainable

technology products

As one of the world’s largest VAR, we work

with all the leading technology suppliers and

make available EPEAT and EnergyStar energy

usage ratings for the products we supply to

our customers.

Supporting technology partners

We work closely with our technology partners

to understand their sustainability strategies,

help them to achieve their sustainability

goals and help our customers to make

informed decisions. We are proud to have

been recognised by HP as a 5 Star

Sustainability Partner.

Sustainable supply chain options

We are the VAR with the best international

capability in the world and this allows us to

help both our customers and technology

partners to leverage our Integration Centers

in different regions for local supply rather

than export, where possible. We still have

much to do to minimise the need for export

solutions but will continue to build the local

capabilities and work with our technology

partners to do so over the coming years.

Ways of working for users

Technology is a huge enabler for our

customers to allow different ways of working

for their users. We can provide workstyle

analysis to support the design of optimum

options, as well as helping to deploy and run

solutions such as Tech Centers and secure

locker collection, which can all contribute to

a sustainable hybrid working strategy.

Data privacy and security

As new ways of working are deployed, these

need to be underpinned by a strong security

and compliance environment, which we can

help to design, deploy and support.

Asset lifecycle

Our role in helping customers to deploy and

manage their technology assets also allows

us to introduce sustainable processes and

services into our core offerings.

Sustainable deployment

We offer a range of services to allow

customers to deploy technology with the

minimum environmental impact. These

include our trolley services, which allow us

to deploy at scale in offices but remove

packaging from technology (laptops, network

devices and servers) at our Integration

Centers, allowing environmentally friendly

disposal at scale.

Asset management

Using our new SmartHub, we will provide

customers with better data on the assets

including length of life, configuration and

update status, to allow them to make more

informed choices on redeployment and

replacement, usually extending the life of

most assets covered.

RECOVER

SIMPLE, SECURE REPLACEMENT

OF END-OF-LIFE DEVICES

PROCURE

EASY REQUEST AND

PURCHASE PROCESS

DEPLOY

OUT-OF-THE-BOX

READY DEVICES

SUPPORT

SEAMLESS REPLACEMENTS

TO KEEP YOU PRODUCTIVE

INFORM

RIGHT TECHNOLOGY

AND RIGHT SOLUTION

DELIVERING

PREDICTABLE IT

Computacenter’s Device as a Service (DaaS) Lifecycle

Device as a Service

Our asset lifecycle services are being brought

together into our DaaS offering, which will

allow us to manage the lifecycle of assets for

our customers, underpinned by the highest

sustainability standards.

Data center and network deployment

Total solution configuration e.g. ‘store in a box’ Mobile device configuration

Volume configuration

Data center and network deployment

Hatfield, United Kingdom

By using our asset lifecycle services, customers can consolidate shipments, reduce packaging on-site and take advantage of our increasingly green energy facilities.

Strategic Report

Annual Report and Accounts 2021

Climate-related risks and opportunities

We support the aims of the Task Force on

Climate-related Financial Disclosures (TCFD)

in communicating the risks and opportunities

arising from climate change. In accordance

with the Financial Conduct Authority’s Policy

Statement PS20/17, we are making disclosures

consistent with the TCFD’s recommendations

and recommended disclosures having

considered all sector guidance, with the aim

of providing all of our stakeholders with useful

information relating to climate-related risks

and opportunities relevant to our business.

An exception relates to Scope 3 emissions, for

which we aim to submit Science Based Targets

during H1 2022; we have yet to define the

basis of these emissions for which we will

seek external support.

We supply technology products and services

to our customers, which help them to reduce

their own environmental impact by reducing

business travel and increasing the flexibility

of their workforce. This is supported by our

Technology Sourcing infrastructure and

through investments in our Integration

Centers across Europe and North America to

enable us to fulfil product more locally.

Following our Brexit preparations, we have the

ability to despatch products from our Kerpen

Integration Center to customers in the

European Union, which had previously been

shipped from our Hatfield Integration Center.

While we have been a net beneficiary of this

change in terms of export administration and

shipping cost, it has also helped to reduce

global emissions.

Governance

As outlined on page 81, the Board has overall

responsibility for managing risks and

opportunities, including climate change risk.

The Board has considered the risk to the

business relevant to climate change but does

not yet believe it is sufficiently material to be

classed as a principal risk in its own right. The

Board continues to monitor climate-related

risk. It does so through its review of the

Group’s principal risks related to any failure

to meet our commitments or comply with

applicable laws and regulations in relation

to ESG matters.

The Board has delegated day-to-day oversight

of climate change risk to the Climate Committee.

This committee meets quarterly and leads on

all climate-related initiatives. It consists of

senior Managers and is chaired by the Group

Finance Director, who also chairs the Group

Risk Committee. The Group Risk Committee

considers emerging risks, such as climate

change, as necessary.

The Audit Committee is updated quarterly on

discussions and outcomes from the Group

Risk Committee meetings and the Board is

updated at least annually on all risk matters,

including climate-related issues where

relevant. The Board has also endorsed the

Group’s sustainability strategy, of which risk

management and reporting form a part.

Strategy

Computacenter’s exposure to climate-related

risks and opportunities can be seen through

the lens of our position as one of the world’s

leading VAR. Our ability to procure technology

products through leading technology

partners, add value for our customers through

our Professional Services expertise, and then

ship or hold that product depends on:

• the resilience of our technology partners;

• their ability to efficiently manufacture the

product on a timely basis; and

• their ability to send it to our customers or to

us, in a timely and cost-efficient manner.

Our Services business depends on our people

being able to access our service delivery

locations and our customers’ locations, as

well as the uninterrupted functioning of our

operational infrastructure, such as our

principal offices, Integration Centers and

Service Centers.

Any physical or transitional climate-related

risk which disturbs the equilibrium of our

value chain could impact the execution of our

strategy, our levels of customer service and

satisfaction, and ultimately our financial

performance. We have set out below those

climate-related risks which we think could

reasonably result in that happening, although

for many of these their frequency and severity

is difficult to predict. We have therefore based

our analysis on certain assumptions, which

we have also explained. Whilst none of these

risks has yet impacted our business, we have

also set out how we have responded to them

in our strategy and financial planning.

Physical Risk: Extreme weather events and

long-term changes in climate patterns

Significant changes in weather patterns in the

medium to long term, both acute and chronic,

could result in interruptions in our technology

partners’ ability to manufacture and distribute

on a timely basis, and could cause damage to

our service delivery locations, including our

Service Centers, Integration Centers and Data

Centers, affecting our ability to run an

uninterrupted service for our customers.

Most of our technology partners are

substantial international businesses,

who have the size, resilience, technological

capability and investment capacity to

mitigate the future risk of climate-related

damage to their manufacturing and

distribution process. We work with multiple

technology partners, which mitigates against

one organisation, area or region being

impacted by extreme weather. We carry out a

physical assessment of our service delivery

locations across the globe, as part of our

insurance risk assessment process, and

ensure we have business contingency

planning, so we can move our service delivery

to alternative locations with minimal impact

to service levels. None of our service delivery

locations are at material risk of flooding

from rivers or from sea level rises and, like

many organisations during the Covid-19

pandemic, we have reduced our reliance on

physical offices.

Transition Risk: Compliance and

reputational risk

As we move towards a low-carbon economy,

there are increasing compliance requirements

emanating from the UK Government,

regulatory authorities and standard-setters,

as well as pressure from business stakeholders

and market initiatives related to sustainability

reporting, such as the TCFD. If we fail to meet

these requirements and expectations, or if we

fail to set and achieve our climate impact

reduction targets, this is likely to harm our

reputation and could cause customers to

reduce their business with us.

We take our climate-related responsibilities

seriously, which helps mitigate against this

risk. We have had a Climate Committee in

place since 2020. Recent initiatives have

included the installation of a large number

of solar panels at our Hatfield and Kerpen

Integration Centers and we have contracts

in place to use only green energy in our

businesses in Germany and the UK. These and

other initiatives (detailed on pages 52 to 61)

have contributed to a reduction of our Scopes

1 and 2 emissions of 73 per cent since 2019

(see page 54). We have a target to be Carbon

Neutral for our Scopes 1 and 2 emissions in

2022 and to reducing our Scopes 1, 2 and 3

emissions to Net Zero by 2040, backed by

Science Based Targets. Our progress towards

these targets will be monitored and reported

on in future Annual Reports.

Task Force on Climate-related Financial Disclosures

Our initial assessment indicates that transition risks associated with the shift to a low-carbon economy are more likely to have an impact on our

business in the short term, while physical risks (both acute and chronic) may become a greater issue in the longer term, if global temperature

increases are not held within the 2°c limit envisaged by the Paris Agreement or we see the impacts of global warming of 1.5°c above pre-industrial

levels, envisaged in the Intergovernmental Panel on Climate Change ‘Special Report’. More detail on the risks and opportunities arising from

climate change, and the mitigating actions we are taking to address them, are shown below.

Short term (to 2030) Medium term (2030 to 2040) Long term (beyond 2040)

Higher transition risks associated with

moving to a low-carbon economy

• Reputational risk with investors,

customers and employees, if we do not

adequately address climate change.

• Compliance risk if we fail to meet

regulatory requirements, including

emissions reporting obligations.

• Increased cost of climate-related levies/

increased pricing of

greenhouse gas

(GHG) emissions.

• Changing customer behaviour.

• Travel curbs.

Opportunities

• Customers will continue to invest in their

IT infrastructure, to enable hybrid working

practices which are carbon-reducing,

and also to reduce the carbon footprint

of their IT infrastructure. We will

therefore continue to see high demand

for modern, lower-carbon footprint

technology products.

• Our Circular Services (redeployment,

remarketing and recycling of technology

products) will become increasingly

important to our customers.

Continued transition risks

• Increasing reputational risk with

investors, customers and employees,

if we do not adequately address

climate change.

• Continuing compliance risk if we fail

to meet regulatory requirements,

including emissions reporting

obligations.

• Increased cost of climate-related

levies/increased pricing of GHG

emissions.

• Changing customer behaviour.

• Travel curbs.

Opportunities

• Continuing customer investment in

their IT infrastructure with continued

high demand for modern, lower-

carbon footprint, technology products.

• Our Circular Services will remain

important to our customers.

Less significant increase in physical risks

• Continued isolated extreme weather events

causing manageable business disruptions.

• Higher summer temperatures and rapid

changes in temperature and humidity causing

challenges for data center cooling.

Opportunities

• Our ability to provide Circular Services by

ourselves will help us to differentiate, as

customers will expect these services to be

integrated into more of the technology

products and services they procure, e.g.,

through ‘Device as a Service’ (DaaS).

• Customers will require our advice on the

selection and deployment of technology

products, to help them achieve their carbon

reduction strategies.

Slight increase in transition and physical

risks in the short term

• Isolated and manageable business

disruptions caused by extreme weather

events, such as flooding or drought.

• Ad-hoc supply chain interruptions.

• Increased insurance costs due to

natural disasters.

Opportunities/Resilience

• Our ability to supply technology products

locally in multiple regions (UK, EU, North

America and APAC) will help large

international customers to reduce

shipment costs and the associated

carbon footprint. This international

coverage will also increase our resilience

and help us provide greater supply chain

resilience to our customers.

Increasing physical risks due to

a failure to adequately transition to

a low-carbon economy

• Power outages due to restrictions on

use of fossil fuels.

• Increasing cost of power.

• Flooding due to increased sea level

(no strategic locations are at

material risk).

• Increasing transport costs.

• Telecoms and internet disruptions.

Opportunities/Resilience

• We will continue to maintain

operational resilience through the

geographical dispersion of our

Service Centers.

• Our existing strengths as one of the

world’s most international and

Services-led VAR give us the

opportunity to establish a leadership

position in helping both customers

and technology partners to achieve

their sustainability goals.

Increased physical risks due to a failure to

adequately transition to a low-carbon economy

• Power outages due to restrictions on use of

fossil fuels.

• Increased cost of power.

• Flooding due to increased sea level (no

strategic locations are at material risk).

• Pandemics due to new diseases caused by

climate and population changes.

• Population changes – controls on population

growth, increasing migration, the need for

automation etc.

• Increased transport costs.

• Telecoms and internet disruptions.

Opportunities/Resilience

• We will continue to maintain operational

resilience through the geographical dispersion

of our Service Centers.

• Our existing strengths as one of the world’s

most international and services-led VAR give

us the opportunity to establish a leadership

position in helping both customers and

technology partners to achieve their

sustainability goals.

The less than 2°c scenario assumes that we act responsibly, in line with business and society globally, to reduce GHG emissions. This may include

the introduction of carbon pricing by national governments. In this scenario, we expect that transition risks pose the biggest threat to our

business, with only a limited and manageable impact on our operations from physical risks. The greater than 2°c scenario assumes climate policy

is less effective and emissions cause climate change above that envisaged in the Paris Agreement. Under this scenario, we would expect physical

risks to become much more apparent in the longer term.

< 2°c scenario> 2°c scenario

Strategic Report

Annual Report and Accounts 2021

Our strategy to address climate-related issues includes our commitment to be Carbon Neutral for our Scopes 1 and 2 emissions in 2022 and

Net Zero for our Scopes 1, 2 and 3 emissions by 2040, with both commitments to be backed by Science Based Targets.

Risk management

Our risk management and control framework enables us to effectively identify, assess and manage climate-related risks. As summarised on

page 81, the Board reviews climate change risk as part of its review of our principal risk relating to complying with our commitments and

applicable laws and regulations in relation to environmental, social and governance matters. The process for identifying and assessing climate-

related risk is the same as for all principal risks, as described on page 81. Each of our principal risks has an assigned risk owner, who is responsible

for its management. This includes ensuring the effectiveness of internal controls and for overseeing risk mitigation plans. Each risk owner

presents the controls and mitigations for peer review at least annually to the Group Risk Committee meetings. The Board also reviews the

principal risks annually. We do not currently recognise climate change as a principal risk to the business.

The Group Finance Director chairs the Climate Committee that was established in 2020. The Climate Committee consists of Group managers and

senior employees with specific environmental interests. The Committee’s aim is to debate and propose initiatives to continue to reduce our

environmental impact, with some material investments to be approved at Group Executive level.

Metrics and targets

In line with our current risk assessment and mitigation plan, we continue to largely concentrate on transition risks and our commitment to

becoming a Net Zero business, as outlined above.

We have taken into account the cross-industry metric categories defined in the TCFD’s guidance on metrics, targets and transition plans

(October 2021) in monitoring our transition to a low-carbon economy and the risks involved with it.

Metric category Target

GHG emissions We aim to reduce our Scopes 1 and 2 emissions to Carbon Neutral in 2022 and our Scopes 1, 2 and 3

emissions to Net Zero by 2040, backed by Science Based Targets.

Transition risk We have considered transition risks to achieving our strategic objectives across the Group as

a whole. However, they are not considered material at this stage.

Physical risk We have assessed the Company’s locations close to water sources at risk of flooding or at risk

of sea level change. None of the locations are strategic to our operations.

Climate-related opportunities Customers will need us to:

• supply and deploy modern, lower-carbon footprint technology products;

• provide Circular Services for their technology estate and increasingly integrate these into

our Services;

• provide local supply solutions, to minimise shipment-related carbon footprint; and

• advise on selecting and deploying lower-carbon IT infrastructure, to help them meet their

sustainability goals.

Capital deployment In recent years we have made significant investments to reduce our carbon footprint. These include

the following initiatives:

• Installing 6,308 solar panels at our Hatfield Integration Center at a cost of approximately £1.2

million; installing 1,764 solar panels at our Kerpen Integration Center and installing 2,016 solar

panels over our Kerpen car park spaces at a cost of approximately €1 million. Combined, these will

result in annual power generation of approx. 3.3 million kWh and the reduction in Scope 2 emissions

of approximately 1,100 tonnes, based on a combination of UK and German conversion factors.

• Installing a further 1,200 solar panels on the roof of our Livermore Integration Center, which will

complete in 2022, and is expected to generate 750,000 kWh and reduce Scope 2 emissions by

140 tonnes, based on local conversion factors.

• Purchasing ‘green’ electricity across our UK and Germany businesses at an incremental cost

of £100,000, resulting in emissions reductions of 4,953 tonnes.

• Introducing electric vans in some of our logistics business areas and electric cars.

• Acquisition of our RDC Circular Services subsidiary.

Overall, our GHG emissions are now 21 per cent of the 2015 number.

Internal carbon prices While we have not introduced internal carbon pricing across our business as a whole, from

1 October 2021, we have introduced an internal levy of £10/€12/$14 per flight or hotel booking for the

United Kingdom, France, Germany, Spain, Belgium and the United States, to purchase carbon credits

each year to offset the CO

e emissions generated from these activities.

Remuneration For the year ended 31 December 2021, no executive discretionary bonus was linked to climate

considerations, other than the Group Finance Director, who has one objective related to climate

change management. However, this is being kept under review by the Remuneration Committee.

Task Force on Climate-related Financial Disclosures

continued

Sections incorporated into Section 172 statement

Relevant information Page

• Our approach to market 10 to 16

• Business model at a glance 17

• Technology Sourcing, Managed Services and Professional Services 18 to 25

• Our sustainability strategy 40 to 61

• TCFD disclosures 62 to 64

• Non-financial information statement and stakeholder engagement 65 to 69

• Viability statement and going concern 78 to 79

• Principal risks and uncertainties 80 to 85

• Board activity in 2021 91 to 92

When conducting any activity in his or her role

as a Computacenter plc Director, our Board

members must act in a way that they consider

is most likely to promote the success of the

Company for the benefit of its members as

a whole, having regard to a number of factors

set out in Section 172 of the Companies Act

2006. These include the interests of our

employees, importance of fostering business

relationships with our suppliers and

customers, impact of our operations on

the community and environment, likely

consequences of any decision in the long

term, desirability of the Company maintaining

a reputation for high standards of business

conduct and the need to act fairly as between

the members of the Company. Each Director

considers that they have acted in a manner

consistent with his or her Section 172 duty

throughout the year.

The Board understands that without our key

stakeholders, the Company would not be able

to successfully implement its strategy, and its

purpose would be unachievable. Understanding

their interests, views and concerns, and

considering these when reviewing and

discussing matters put before it for review or

approval as part of its annual programme, is

critical to enabling the Board to make

informed decisions, and for each Director to

discharge their duty under Section 172.

In the sections set out in the table below,

we explain how the Company’s programme

of engagement with our key stakeholders

enables our Board members to do so.

In some cases, this engagement directly

involves the Board or its members, and this is

almost exclusively how engagement with our

investors takes place. Given the size and

geographic diversity of our business, the

majority of engagement with our customers,

technology partners, people and communities

takes place at an operational level across the

organisation. Where this is the case, the Board

ensured that it had been updated on the

Computacenter aims to comply with the Non-Financial Reporting Directive requirements contained in Sections 414CA and 414CB of the Companies

Act 2006. The table below sets out where more information on non-financial matters can be found within this Annual Report and Accounts (as well

as on our website: computacenter.com). The due diligence carried out for each policy is contained within each respective policy’s documentation.

Reporting requirement Relevant information Page

1. Business model • Strategic priorities

• Business model

2. Principal risks and impact of business activity • Viability Statement

• Principal risks and uncertainties

3. Employees • Employees

• Diversity policy

• Health and safety

• Stakeholder engagement

4. Social matters • Supporting charity and community 48

5. Human rights • Human rights

• Suppliers

• Details of our Supplier Code of Conduct, as well as our approach

to protecting human rights, can be found on our website

6. Anti-bribery and corruption • Whistleblowing

• Our Code of Business Conduct and other related policies, can be

found on our website

7. Environmental matters • Environmental matters

• Energy use and emissions

• Greenhouse gas emissions

nature and outcomes of this engagement

during the year.

We have also set out the factors listed under

Section 172 which the Board considered when

reviewing Board-level matters or making

decisions during the year. These can be found

on pages 91 to 92. The results of the Board’s

decision making, and the outcomes produced

by each Director discharging their Section 172

duty can be found throughout this Annual

Report and Accounts. Therefore, the following

sections have been incorporated by reference

into this Section 172 statement and, where

necessary, the Strategic Report.

Strategic Report

Annual Report and Accounts 2021

Section 172 statement

Non-financial information statement

OUR KEY STAKEHOLDERS ENABLE COMPUTACENTER TO CREATE VALUE FOR THEM.

Our people and technology partners provide us with leading digital

technology and expertise that underpins the competitiveness of our

customer offering. Our customers place their trust in us to Source,

Transform and Manage their digital technology to support their

organisations. Our investors support us by taking the decisions and

providing us with the capital support that allows us to build a

sustainable business for the long term, whilst the communities in

which we operate support the social, economic and personal interests

of our other key stakeholders. Collectively, they are an indispensable

part of how we do business. Having their support, and ensuring that we

address their views, interests and concerns where we can do so, is of

paramount importance to us.

Why we engage and what matters to them:

Our Winning Together Values are unambiguous: we put our customers

first, we keep our promises to them, and we always prioritise the long

term in our dealings with them.

Our Purpose includes enabling the success of our customers by

helping them to navigate the complex digital environment and to

Source, Transform and Manage their digital technology. One of our

principal risks is that we fail to invest appropriately to maintain

our competitiveness. We can only support our customers and

mitigate against this risk through a deep understanding of their

current and likely future needs and views, ensuring that our

offerings and investment decisions are aligned with these, and that

we deliver a positive customer experience which drives long-term

customer relationships.

Our collaboration with customers requires continuous two-way

engagement, so we can adapt with them as their digital environments

and related technology needs evolve. They expect us to be responsive

and flexible to their requirements, delivering services to them in

a way which reflects agreed terms and is safe and sustainable.

Through clear communication with our customers, we are able to

ensure that we have the capability to deliver what they are asking

from us.

Our principal forms of engagement with them during the year were:

• Day-to-day engagement through a wide variety of channels,

generally covering our performance and future opportunities, and

including face-to-face and virtual meetings, customer training and

workshops, as well as dialogue through dedicated client directors

and account managers, our service support functions and, where

necessary, our country-unit and Group Management teams.

• Regular meetings between our Chief Executive Officer and key

customers, to discuss their view of Computacenter.

• Customer surveys and other structured mechanisms for obtaining

feedback on our performance.

• Through the publication of supporting materials, including those

on our website (computacenter.com) which summarise and

provide further information on our customer offerings.

How the Board was kept informed of engagement outcomes, and

considered the interests of our customers during discussions and

decision making:

In 2021, the Board received frequent updates on customer

engagement from the Chief Executive Officer, which included details

of significant contract bids and wins, and material customer issues

where they arose.

These were supplemented by presentations from our in-country

business leadership teams on key customers and their issues,

including the management teams of our German and UK businesses.

Subjects covered included maintaining and expanding long-term

customer relationships, the impact of Covid-19 on significant

customers, their demand and investment capacity for IT

infrastructure and systems, and a review of independently-produced

customer satisfaction data. The Board also completed a ‘deep-dive’

on a topic related to the Group’s strategic priorities at each of its

scheduled meetings, which are based on likely future trends in

customer behaviour and demand, and ensuring that the Group can

adapt to these with its customer offerings.

Feedback and discussion from these engagement activities

informed the Board’s decision to approve the Group’s three-year

strategic plan for 2022-2024, the associated investment

requirements required by that plan, the Group’s financial

performance targets for 2022, as well as its review of potential

acquisition and material contract bid opportunities.

The Board also approved an investment into our core IT Service

Management (ITSM) systems, which will allow us to address the

capabilities that our customers will need in the future, and reviewed

and approved the Group’s ESG strategy having considered the

expectations of our key customers in that area, and received

regular ESG updates from the Group Finance Director and Group

Development Director.

Further details of how the Board considered the interests of our

customers in its decision-making can be found on pages 91 to 92.

Our customers

Stakeholder engagement

Why we engage and what matters to them:

Our people are at the centre of what we do and are essential for

our future growth. They implement and promote our culture, as set

by the Board, on a day-to-day basis. Externally, they represent

Computacenter when interacting with our other key stakeholders,

building relationships, generating long-term trust, and developing

knowledge of their requirements and preferred ways of operating.

We want to attract, retain and develop people who understand and

promote our strategy, performance, culture, values and purpose.

Failure to recruit and retain the right calibre of people to our talent

pool is one of our principal risks (as set out on page 85). Clear,

consistent and frequent engagement with our people, and the groups

that represent them, helps us to mitigate this risk.

Our people expect us to provide fair and safe working conditions for

them, and to help create an environment where they can get the best

out of themselves. Engagement allows us to understand how we can

continually strive to do this better.

Our principal forms of engagement with them during the year were:

• The programme of engagement completed by Ros Rivaz, the

nominated Non-Executive Director for Workforce Engagement.

• Weekly communications to all of our people from the Chief

Executive Officer, covering topics such as recent business

performance and trends, as well as Board and senior Management

views on those areas.

• Engagement with our Works Councils across Europe, including

Germany, France, Spain, Belgium, Switzerland and the Netherlands,

and additionally our European Works Council.

• The Group-wide Management structure and Whistleblowing hotline,

and the activities of our Human Resources function, all of which

ensure that issues and feedback raised by our people are

considered and escalated, including to members of the Board and

the Group Executive Committee if appropriate.

• Through our policies and training, which provide guidance on

how we expect our people to represent Computacenter and

conduct themselves.

• Through our biennial Group-wide employee survey.

How the Board was kept informed of engagement outcomes,

and considered the interests of our people during discussions

and decision-making:

The Board received frequent updates during the year from Ros Rivaz

on the outcomes of the Workforce Engagement Programme, which

included feedback from our people on the Company’s response to the

Covid-19 pandemic, indicating that it had been clear and timely with

related communications, and had provided our people with

appropriate support, both in respect of their needs relating to their

role undertaken for Computacenter, and the provision of resources

to support their mental wellbeing, particularly during Covid-19-

related lockdowns.

Ros summarised the views provided to her on the effectiveness of

working relationships between Management and our Works Councils,

and noted that over time there would be appetite for the Company

to provide clarity on its post-Covid-19 future working arrangements.

She reported on her meeting with the Computacenter Employee

Impact Group (EIG) for Ethnicity, including feedback that the EIG had

received from our people on their views and experiences of how

Computacenter ensures diversity and equality across the Group.

Feedback provided informed the Board’s deep-dive review on the

Group’s culture, including discussion of how this had developed over

recent years, had been impacted by the Covid-19 pandemic and how

it supported the implementation of the Group’s strategy.

The Board also received presentations from our in-country senior

Management teams, which included detail on employee engagement

activities and outcomes, as well as specific updates from the Chief

People Officer on negotiations between the Group and its Works

Councils related to matters of interest to both parties.

The Chief Executive Officer provided an update of progress made

against internal gender diversity targets for senior Management

positions throughout the organisation, which was considered by

the Board when reviewing our Gender Pay Gap (GPG) reporting,

the causes for the remaining GPG that exists, how this is linked to

diversity and inclusion and actions required to reduce our GPG.

As part of his regular updates to the Board on financial and

operational performance, the Chief Executive Officer also reported

on common themes and trends from employee feedback, especially

concerning the impact of Covid-19 on our people. During the year,

and on the recommendation of the Chief Executive Officer, the Board

approved the expansion of the Group’s Performance Share Plan to

allow the issue of awards within additional jurisdictions following

recent acquisitions made. Prior to the publication of the 2021 Annual

Report and Accounts, the Board also reviewed and discussed the

results of our biennial Group-wide employee survey, which was

completed in the fourth quarter of the year. Detail of the outcomes

of that survey can be found in the people section on page 46.

Feedback from each of these engagement activities above also

informed the Board in its discussions and decision-making around

Computacenter’s Modern Slavery Act Statement and ESG strategy.

Further details of how the Board considered the interests of our

people in its decision-making can be found on pages 91 to 92.

Our people

Strategic Report

Annual Report and Accounts 2021

Why we engage and what matters to them:

Our technology partners are critical for us and we invest time and

effort in ensuring that our relationships with them remain robust

and healthy, for mutual benefit. We aspire to be their preferred

route to market for our chosen customer segments, and they

benefit from our customer intimacy, which comes from our focus

on long-term, multi-level strategic relationships.

Through engagement with our customer teams and by working in

partnership, we add value and drive end-user satisfaction with our

technology partners’ products. To facilitate that and enable us to

grow together, we need to maintain strong and sustainable working

relationships, on both a day-to-day and strategic level, covering

operational, engagement and commercial support.

Our principal forms of engagement with them during the year were:

• Our technology partners’ customer-aligned sales and technical

personnel, and our sales, technical and services teams engage

regularly to ensure strong working partnerships, on a customer-

by-customer basis.

• The Group technology services team formally engages with our

technology partners on a day-to-day basis, as well as at

management and executive level, to maintain strong partnerships

and to continue to deliver operationally and strategically.

• Technology partners share product and strategy information at

multiple formal and informal events during the year, to enable us

to fully support our customers’ initiatives and business planning.

This requires both technical and commercial engagement across

Computacenter and includes inviting representatives of our

technology partners to speak at our Group-wide annual sales

meeting, where they communicate their latest technical

innovations and their view of how our organisations can most

effectively work together.

How the Board was kept informed of engagement outcomes,

and considered the interests of our technology partners during

discussions and decision-making:

The majority of our engagement with technology partners takes

place at an operational level. The Board received updates from the

Chief Executive Officer, Chief Commercial Officer and other

members of the senior Management team on the views of our

technology partners, and reviewed the Group’s Technology Sourcing

strategy and tooling capabilities with the Chief Commercial Officer.

The Board reviewed specific project workstreams aimed at

ensuring that the Group’s Technology Sourcing tooling systems and

capabilities adequately supported the wider business, provided

differentiation against the Group’s competitors and were able to

support likely future customer demand and purchasing behaviours.

The updates it received informed the Board’s discussions and

decision-making when approving the Group’s strategy and associated

investments, and setting financial targets for the Group in 2022.

Further explanation on how we build powerful partnerships with our

technology partners can be found on pages 18 to 21.

For further detail on how the Board considered the interests of our

technology partners in its decision making during the year, please

see pages 91 to 92.

Our technology partners

Our communities

Why we engage and what matters to them:

Our Purpose is Enabling Success by building long-term trust with

our stakeholders. These include the communities in which we, and

our other key stakeholders, live and work. Our local communities

support our ability to do business and supporting them in return is

a responsibility. Through doing so, we aim to inspire our people, to

illustrate more widely our commitment to act like ‘people matter’

(one of our core values as an organisation), and to maintain and

enhance our corporate reputation. Our local communities are

interested in ensuring that our operations are sustainable and safe,

so that the positive economic and social impact that Computacenter

has on them is protected over the long term and increases over

time. They expect us to engage with the social and environmental

issues that matter to them, including in areas like equality, diversity

and inclusion and the sustainable use of resources within our

business operations. They also expect us to act ethically, to treat

our stakeholders fairly and, where possible, to support them

financially or with our time.

Our principal forms of engagement with them during the year were:

• Our engagement is focused on school, community and university

outreach programmes with a focus on encouraging young people

to take up Science, Technology, Engineering and Mathematics

(STEM) careers, thereby addressing skills shortages, increasing

diversity across STEM, improving social mobility and raising

aspirations. Our school, community and university outreach

programme won best Community Outreach Programme at the

2021 CRN Women in Channel Awards.

• Our employee volunteers have completed over 1,700 hours

of community outreach volunteering.

• Most of our community engagement is through direct

engagement between our people and our local communities,

across all of our main operating geographies.

• For further information on our engagement with our local

communities, please see our sustainability section on

pages 44 to 61.

How the Board was kept informed of engagement outcomes,

and considered community interests during discussions and

decision-making:

The Board received frequent updates from the Group Finance

Director and the Group Development Director on our sustainability

strategy, and the progress being made in implementing it. As part

of these updates, it reviewed activities being undertaken by the

Group to engage with and support our local communities, and our

commitments and reporting relating to the environment and

climate change. The Board considered the interests of our local

communities, and the impact of our operations on them, when

approving our revised targets for carbon emissions as set out on

page 52, discussing the Group’s approach and objectives related to

diversity and inclusion, and reviewing our Gender Pay Gap Reporting

metrics and Modern Slavery Act Statement.

For further examples of where the Board has considered the

interests of our local communities in its decision-making during the

year, please see pages 91 and 92.

For further detail on actions we are taking to contribute towards

the long-term future of our people and our planet, and to provide

sustainable solutions for our customers, please see pages 44 to 61.

Stakeholder engagement

continued

Why we engage and what matters to them:

Our investors want an appropriate return on their investment

in Computacenter.

To help them achieve this, they want to understand our strategy,

our current or projected operational and financial performance, and

our approach to environmental, social and governance (ESG) matters.

Investors have different risk appetites, and different preferences for

capital or income-based returns and the time horizon for delivering

those returns.

Two-way engagement helps Management and the Board to

understand shareholders’ range of views on specific issues and

allows current and potential investors to make informed decisions

concerning investment in Computacenter.

Our principal forms of engagement with them are:

• The Chair and Company Secretary’s governance roadshow with

significant shareholders, following the release of the Annual Report

and Accounts, and the Executive Director investor meetings and

roadshows held throughout the year.

• The annual and interim results presentations to sell-side research

analysts and institutional shareholders.

• The Company’s Annual General Meeting, although this was

impacted by Covid-19-related restrictions in 2021.

• The Remuneration Committee Chair’s engagement with significant

shareholders, proxy firms and other interested parties regarding

Executive remuneration proposals, with further engagement

alongside the Company Secretary after receiving responses.

• Through our investor website at investors.computacenter.com, our

regulatory news service announcements, which include our annual

and interim results, and our Annual Report and Accounts.

How the Board was kept informed of engagement outcomes,

and considered the interests of investors during discussions and

decision-making:

The Board received updates from the Executive Directors on key

issues raised at their investor roadshow meetings, and from the

Chair on the governance roadshow.

Feedback from institutional shareholders was also reviewed through

formal reports provided to the Board from the Company’s brokers,

Credit Suisse and Investec. These summarised movements in

institutional investor holdings in the Company and provided investors’

thoughts on their meetings with the Executive Directors following the

release of the Company’s annual and interim results. The reports

included existing and potential investors’ articulation of the

investment case relating to the Company’s shares, and any perceived

attractions or barriers to investing.

Feedback received from our investors focused on several areas,

including the performance of the business and opportunities for

future growth in the United States, the priorities for the Group’s use

of cash including a range of views around the attractiveness of share

buybacks and further acquisitions, and on the Group’s current

valuation against peers across relevant sectors.

There was investor interest in understanding the extent to which

increased demand for our Source, Transform and Manage

propositions had been due to changed customer working behaviours

related to Covid-19 (such as remote working capabilities), the likely

sustainability of these changed behaviours, and understanding wider

trends in customer preferences and behaviour which were likely to

drive future demand, including the location and method by which the

Group delivers its Managed Services offerings, amongst others.

The views of our investors informed Board discussions and decision-

making concerning the quantum of dividend declarations (which the

Board considered and balanced against other stakeholder interests

concerning our balance sheet strength, investment capacity and

long-term viability of the Group), resulting in a 2020 final dividend of

38.4 per share and a 2021 interim dividend of 16.9 per share being

paid; the Board’s review of potential uses for the Group’s existing

treasury shares, including their potential cancellation or use relating

to the vesting of employee share option schemes, following which the

Board decided to retain these as treasury shares and review options

moving forward; approval of the Group’s dividend policy, which the

Board decided to leave unchanged; three-year strategy plan; cash

deposit and reserve strategy; and a review of the Group’s capital

allocation, ESG strategy and Executive Director succession plans.

Through updates from the Remuneration Committee Chair, the Board

was also made aware of the views of significant shareholders

concerning the Company’s proposals for Executive remuneration in

2022. As set out in the Remuneration Committee report on page 106,

shareholders who responded to the consultation process were

broadly supportive of the change related to the increase in the Chief

Executive Officer’s base salary for 2022.

For further examples of how the Board considered the interests of

our investors during the year, please see pages 91 to 92.

Our investors

Strategic Report

Annual Report and Accounts 2021

ENABLING

SUC CE S S

BY CONTINUED

INVESTMENT

We remain very

encouraged by

the resumption of

longer-term IT

transformations, on a

scale and timeline that

appear strengthened

by the experiences of

the last two years.

Tony Conophy

Group Finance Director

During 2021, the Group benefited from

continued strong organic revenue growth,

balanced evenly between Technology

Sourcing and Services. Growth across the

Segments was excellent, apart from France

where market conditions are weaker and

some of our customers spent less. On top of

the organic growth, the revenue increases

from the acquisitions made in 2020

significantly boosted the top-line

performance during the year.

The Technology Sourcing growth was driven

by robust public sector activity in the UK and

Germany, where the Group has a strong track

record, and by the industrial enterprise sector

in the UK and Germany, as these large sectors

returned to more normal spending patterns

and expanded their requirements. In addition,

the rebound of the mid-market sectors in

North America complemented the sustained

growth seen in the hyperscale markets.

As customers have less need to address

immediate requirements caused by Covid-19,

we remain very encouraged by the resumption

of longer-term IT transformations, on a scale

and timeline that appear strengthened by the

experiences of the last two years. The

strength of the overall Technology Sourcing

result is driven by the spread of the customer

base across multiple Segments and

geographies, which create durability and

sustainability within the business model.

Professional Services in Germany has continued

its excellent recent track record, with another

period of rapid growth, and the UK also saw

robust Professional Services growth.

Our recently established presence in Cluj,

Romania, has had a successful start as it

builds towards a specialist offering of up to

500 professionals within Computacenter

Romania. This will expand our Professional

Services capacity and allow us to continue to

capture the opportunities in this business line.

Group Finance Director’s review

Over 80 consultants within the

Computacenter Romania Professional

Services ‘Centre of Excellence’ are providing

agile application services to customers in

Germany, including software development,

application migration and application

support. In time, we will expand this

capability to all other countries across

the Computacenter Group.

Managed Services saw robust revenue

increases in all geographies, apart from

France. A number of contracts which are

based on price times quantity, rather than a

fixed periodic fee, resumed growth as call

volumes began to return to pre-pandemic

levels and the field engineer workforce saw

significant increases in activity, as customer

sites began to reopen. In addition, we won

a number of new deals during the year, with

contracts signed and initial transitions

progressing well. These contracts will support

future growth in this area.

Services margins remained healthy and

increased overall. We continued to enjoy

increased utilisation of our now remote-

working engineers, who no longer have to

spend otherwise billable time travelling to

customer sites, and a substantial reduction

in the use of external contractors. We expect

both of these trends to continue in the short

to medium term, as more efficient ways of

working have proven effective for the Group,

our customers and our people. More

importantly, the quality of the contract

portfolio continues to increase, as older

underperforming contracts improve, and

enhanced bid governance processes result in

better margins on new contracts. Our French

business suffered on an organic basis, as the

full effect of the non-renewal of the Group’s

largest Managed Services contract affected its

year-on-year performance for the first time.

The business remains agile and innovative,

enabling us to continue to adapt and support

our customers, as they move beyond remote

working towards the complexity of hybrid

working and the required structural

adaptations of their IT environments.

Reconciliation to adjusted

measures for the year ended 2021

Reported

results

£m

Adjustments

Adjusted

full-year

results

£m

Amortisation

of acquired

intangibles

£m

Exceptionals

and others

£m

Revenue 6,725.8 – – 6,725.8

Cost of sales (5,858.0) – – (5,858.0)

Gross profit 867.8 – – 867.8

Administrative expenses (612.6) 7.6 – (605.0)

Operating profit 255.2 7.6 – 262.8

Finance income 0.3 – – 0.3

Finance costs (7.5) – – (7.5)

Profit before tax 248.0 7.6 – 255.6

Income tax expense (61.5) (2.1) – (63.6)

Profit for the year 186.5 5.5 – 192.0

Reconciliation to adjusted

measures for the year ended 2020

Reported

results

£m

Adjustments

Adjusted

full-year

results

£m

Amortisation

of acquired

intangibles

£m

Exceptionals

and others

£m

Revenue 5,441.3 – – 5,441.3

Cost of sales (4,720.8) – – (4,720.8)

Gross profit 720.5 – – 720.5

Administrative expenses (522.0) 7.4 0.5 (514.1)

Operating profit 198.5 7.4 0.5 206.4

Gain on acquisition of subsidiary 14.0 – (14.0) –

Finance income 0.5 – – 0.5

Finance costs (6.4) – – (6.4)

Profit before tax 206.6 7.4 (13.5) 200.5

Income tax expense (52.4) (1.7) (0.7) (54.8)

Profit for the year 154.2 5.7 (14.2) 145.7

Strategic Report

Annual Report and Accounts 2021

The revenue performance was driven through

our biggest markets, the UK, Germany and

North America, and was supported by strong

gross margins across all business lines.

Technology Sourcing margins were slightly

reduced from 2020, as increasing volumes of

lower-margin software sourcing deals diluted

an otherwise excellent return from the

higher-margin complex product lines. Both

Technology Sourcing and Services continued

to benefit from the ongoing reduction of

expenses within costs of goods sold. Whilst

some of these costs, such as travel, fleet and

contractors, have partially come back as the

Group increasingly returns to its pre-Covid-19

operational footing, we continue to carefully

manage certain cost categories to ensure a

permanent reduction in the overall cost base.

We have implemented an internal carbon levy

on travel, as part of our commitment to

reduce business travel emissions by 35 per

cent when compared to pre-Covid-19 levels

in 2019. This emphasis on post-Covid-19 cost

control is also reflected by the increase in

gross profit (20.4 per cent) materially

outstripping the growth in administrative

expenses (17.7 per cent).

The Group result saw significant organic

increases in adjusted

operating profit across

the UK, Germany, North America and the

International Segments, with the decline in

France the only disappointing result.

On 30 April 2021, we acquired ITL logistics

GmbH (ITL), which employees 80 people in

three locations in Germany. ITL provides IT

logistics services, as well as IT services, for

large companies and public sector clients

in Europe. Through the acquisition,

Computacenter is expanding its IT logistics

services and now operates its own IT logistics

fleet, with technical couriers who deliver and

collect IT products across Europe. ITL also

operates small regional warehouses, where

IT products are held locally to meet customer

service-level agreements. We intend to invest

further in ITL, to strengthen its business in Europe.

The acquisition of Pivot and Computacenter

NS on 2 November 2020 continues to add

capability to the Group. Pivot increases the scale

and breadth of our North American business,

allowing us to serve a wider range of customers

and products in more locations in the United

States and Canada. Computacenter NS will,

over time, enhance the network Services

offering of our existing French business,

improving our go-to-market propositions and

aligning the business with our capabilities in

Germany, albeit on a smaller scale. Much

remains to be done to transform the business

and bring it back to break-even and beyond.

The integration of Pivot and Computacenter

NS continues, with significant projects

underway to migrate to our Group ERP

systems. In North America, FusionStorm and

the legacy US business transitioned to the

Group ERP in early September 2021 and this

was largely completed by 31 December 2021.

Computacenter NS successfully completed its

migration in the fourth quarter of 2021. Pivot

will follow in 2023. Having these entities on

our leading ERP platform technologies and

toolsets will further unlock their potential for

growth and efficiencies.

Combined, these acquisitions added

£1,105.1 million of revenue (2020: £232.6

million) and £13.9 million of adjusted

profit

before tax (2020: £3.3 million) to the Group’s

reported results.

A reconciliation to adjusted¹ measures is

provided on page 71 of this Group Finance

Director’s review. Further details are provided

in note 2.5 to the Consolidated Financial

Statements, adjusted measures. For the

avoidance of duplication, further information on

the Group’s financial performance can be found

on pages 26 to 39 of this Strategic Report.

Profit before tax

The Group’s profit before tax for the year

increased by 20.0 per cent to £248.0 million

(2020: £206.6 million). Adjusted

profit before

tax increased by 27.5 per cent to £255.6 million

(2020: £200.5 million) and by 31.5 per cent in

constant currency

The difference between profit before tax

and adjusted

profit before tax relates to the

Group’s net costs of £7.6 million (2020: net

gain of £6.1 million) from exceptional and

other adjusting items, which is the

amortisation of acquired intangibles as a

result of the acquisition of FusionStorm on

30 September 2018 and Pivot on 2 November

2020. Further information on these items can

be found on page 73.

The Group adopted IFRS 16 ‘Leases’ from

1 January 2019, which has resulted in changes

in accounting policies and adjustments to the

amounts recognised in the Consolidated

Financial Statements, as disclosed in the 2019

Annual Report and Accounts. The current

period results include an overall decrease in

profit before tax of £2.3 million, including on

an adjusted

basis, due to the impact of IFRS

16 (2020: £2.0 million).

Net finance charge

Net finance charge in the year amounted to

£7.2 million (2020: £5.9 million). The main

items included within the net charge for the

year are £5.2 million of interest charged on

lease liabilities recognised under IFRS 16

(2020: £4.5 million) and £1.5 million for the

Pivot facility (2020: £0.4 million). Pivot was

only part of the Group for two months of the

prior year, so whilst overall the debt position

is reduced at year end compared to the

prior-year position, there is a full year of

interest expense from the Pivot debt facility

incurred in the current year.

There were no interest items excluded on an

adjusted

basis.

Taxation

The tax charge was £61.5 million

(2020: £52.4 million) on profit before tax

of £248.0 million (2020: £206.6 million).

This represents a tax rate of 24.8 per cent

(2020: 25.4 per cent).

In 2020, the tax rate reduced primarily due to

the inclusion of the gain on acquisition of BT

Services France of £14.0 million, recognised on

consolidation of the acquired entity. This was

not taxable, as no chargeable gain had been

realised in any legal entity. During 2020, a tax

credit of £0.7 million was recorded due to

post-acquisition activity in FusionStorm. This

benefit derived from payments which were

settled by the vendor, out of the consideration

paid, via post-acquisition capital contributions

to FusionStorm. As this credit was related to

the acquisition and not operational activity

within FusionStorm, this is a one-off and

material to the overall tax result, we classified

this as an exceptional tax item, consistent

with the treatment in 2018 and 2019.

The tax credit related to the amortisation

of acquired intangibles was £2.1 million

(2020: £1.7 million). The £7.6 million of

amortisation of intangible assets is almost

entirely a result of the recent North American

acquisitions (2020: £7.4 million). As the

amortisation is recognised outside of our

adjusted

profitability, the tax benefit on the

amortisation is also reported outside of our

adjusted

tax charge.

The adjusted

tax charge for the year was

£63.6 million (2020: £54.8 million), on an

adjusted

profit before tax for the year

of £255.6 million (2020: £200.5 million).

The effective tax rate (ETR) was therefore

24.9 per cent (2020: 27.3 per cent) on an

adjusted

basis.

During the second half of the year a number

of one-off tax items were processed that

substantially reduced the tax charge, and

therefore the adjusted

ETR, for the year as a

whole. Rebasing certain deferred tax assets

for the adjustment in the UK Corporate Tax

rate from 19 per cent to the 25 per cent rate

that was substantively enacted on 11 March

2021, with effect from 1 April 2023, has

resulted in a one-time credit to the tax

expense of £3.1 million. Several other one-off

items incurred in the year have reduced the

tax expense by a further £2.4 million in

aggregate. These include a programme of

recharging the costs of our share-based

payment schemes, our Sharesave and LTIP

awards, to those jurisdictions outside of the

UK that also benefit from these schemes

which resulted in a positive tax impact for

the Group in 2021 from catching up the 2020

recharging, and the closure of a number of

historical tax positions in North America.

Group Finance Director’s review

continued

The table below reconciles the tax charge to the adjusted

tax charge for the years ended 31 December 2021 and 31 December 2020.

2021

£m

2020

£m

Statutory tax charge 61.5 52.4

Adjustments to exclude:

Exceptional tax items – 0.7

Tax on amortisation of acquired intangibles 2.1 1.7

Adjusted

tax charge 63.6 54.8

Effective Tax Rate 24.8% 25.4%

Adjusted

Effective Tax Rate 24.9% 27.3%

Profit for the year

The profit for the year increased by 20.9 per cent to £186.5 million (2020: £154.2 million). The adjusted

profit for the year increased by 31.8 per

cent to £192.0 million (2020: £145.7 million) and by 35.7 per cent in constant currency

Exceptional and other adjusting items

The net loss from exceptional and other adjusting items in the year was £5.5 million (2020: gain of £8.5 million). Excluding the tax items noted

above, which resulted in a gain of £2.1 million (2020: gain of £2.4 million), the profit before tax impact was a net loss from exceptional and other

adjusting items of £7.6 million (2020: gain of £6.1 million).

There were no exceptional items in the year to 31 December 2021 (2020: gain of £13.5 million).

We have continued to exclude, as an ‘other adjusting item’, the amortisation of acquired intangible assets in calculating our adjusted

results.

Amortisation of intangible assets is non-cash, does not relate to the operational performance of the business, and is significantly affected by

the timing and size of our acquisitions, which distorts the understanding of our Group and Segmental operating results.

The amortisation of acquired intangible assets was £7.6 million (2020: £7.4 million), primarily relating to the amortisation of the intangibles

acquired as part of the recent North American acquisitions. The prior-year value includes the amortisation of a number of short-term acquired

intangibles relating to the valuation of Pivot order backlogs, due to the expiration of the valued assets.

The acquisition of BT Services France on 2 November 2020 resulted in an exceptional gain of £14.0 million, which was recognised on consolidation

of the subsidiary in the 2020 Annual Report and Accounts. The gain arose because the net assets acquired for consideration of €1 totalled

£14.0 million after fair value adjustments, including £27.6 million of cash. The business acquired comprised BT’s domestic French services

operation which, on acquisition, was loss making on a standalone basis. The Company considers that the exceptional gain reflects the future

losses that the acquired business will incur over the medium term, as it is brought onto a sustainable footing through a combination of upskilling

employees, cross-selling into the Group’s customers, alignment with Group processes and systems, and the general improvement of its

operating activities.

Together, these combined items have resulted

in a one-time credit benefit to the tax expense

of £5.5 million. Excluding these items, the

underlying adjusted

tax expense would be

£69.1 million, resulting in an adjusted

ETR of

27.0 per cent. Had the one-off items not

impacted during the year, and the Group result

reflected an adjusted

ETR of 27.0 per cent, the

adjusted

diluted EPS would have been 160.9

pence per share. Assuming an unchanged

dividend payment policy from that described

on page 74, the proposed final dividend, and

the total dividend for the year, would have been

47.5 pence per share and 64.4 pence per share

respectively. The ETR during the year was also

lower than the previous year due to the large

increase in profitability in the UK, which has

lower tax rates than the Group average,

particularly Germany and the US. The adjusted

ETR is therefore outside the full-year range

that we indicated in our 2021 Interim Results,

which showed an ETR of 28.6 per cent (H1 2020:

28.1 per cent), due to the unforecasted positive

impacts described above.

We expect that the ETR in 2022 will be subject

to upwards pressure, due to an increasing

reweighting of the geographic split of

adjusted

profit before tax away from the UK

to Germany and the US, where tax rates are

substantially higher, and also as governments

across our primary jurisdictions come under

fiscal and political pressure to increase

corporation tax rates. Looking further ahead,

substantially enacted tax increases will take

effect in the UK from 1 April 2023, with a rise

from 19 per cent to 25 per cent.

The Group Tax Policy was reviewed during the

year and approved by the Audit Committee

and the Board, with no material changes from

the prior year. We make every effort to pay all

the tax attributable to profits earned in each

jurisdiction that we operate in. We do not

artificially inflate or reduce profits in one

jurisdiction to provide a beneficial tax result in

another and maintain approved transfer

pricing policies and programmes, to meet

local compliance requirements. Virtually all of

the tax charge in 2021 was incurred in either

the UK, German or US tax jurisdictions, as it

was in 2020. Computacenter France, which

now includes the BT Services France

acquisition within a tax group, has returned to

a lossmaking position, reducing the amount

of tax paid locally.

There are no material tax risks across the

Group. Computacenter will recognise

provisions and accruals in respect of tax

where there is a degree of estimation and

uncertainty, including where it relates to

transfer pricing, such that a balance cannot

fully be determined until accepted by the

relevant tax authorities. For 2021, the Group

Transfer Pricing policy implemented in 2013

resulted in a licence fee of £30.3 million (2020:

£27.9 million), charged by Computacenter UK

to Computacenter Germany, Computacenter

France and Computacenter Belgium. The

licence fee is equivalent to 1.0 per cent of

revenue and reflects the value of the best

practice and know-how that is owned by

Computacenter UK and used by the Group.

It is consistent with the requirements of the

Organisation for Economic Co-operation and

Development (OECD) base erosion and profit

shifting. The licence fee is recorded outside

the Segmental results found in note 4 to the

Consolidated Financial Statements, which

analyses Segmental results down to adjusted

operating profit.

Strategic Report

Annual Report and Accounts 2021

Dividend

The Board recognises the importance of

dividends to shareholders and the Group

prides itself on a long track record of

paying dividends and other special one-off

cash returns.

Computacenter’s approach to capital

management is to ensure that the Group has

a robust capital base and maintains a strong

credit rating, whilst aiming to maximise

shareholder value. The Group remains highly

cash generative and adjusted net funds

continues to increase on the Consolidated

Balance Sheet, which allows acquisitions such

as FusionStorm in 2018 and Pivot in 2020,

alongside a number of other small acquisitions.

If further funds are not required for

investment within the business, either for

fixed assets, working capital support or

acquisitions, and the distributable reserves

are available in the Parent Company, we will

aim to return the additional cash to investors

through one-off returns of value, as we did in

February 2018.

Dividends are paid from the standalone

balance sheet of the Parent Company and,

as at 31 December 2021, the distributable

reserves were £199.3 million (31 December

2020: £268.1 million).

The Board is pleased to propose a final

dividend for 2021 of 49.4 pence per share

(2020: 38.4 pence per share). Together with

the interim dividend, this brings the total

ordinary dividend for 2021 to 66.3 pence per

share, representing a 30.8 per cent increase

on the 2020 total dividend per share of

50.7 pence.

The Board has consistently applied the

Company’s dividend policy, which states that

the total dividend paid will result in a dividend

cover of 2 to 2.5 times based on adjusted

diluted EPS. In 2021, the cover was 2.5 times

(2020: 2.5 times).

Subject to the approval of shareholders at our

Annual General Meeting on 19 May 2022, the

proposed dividend will be paid on Friday 8 July

2022. The dividend record date is set as Friday

10 June 2022 and the shares will be marked

ex-dividend on Thursday 9 June 2022.

Central Corporate Costs

Certain expenses are not specifically allocated

to individual Segments because they are not

directly attributable to any single Segment.

These include the costs of the Board itself,

related public company costs, Group Executive

members not aligned to a specific geographic

trading entity and the cost of centrally

funded strategic initiatives that benefit the

whole Group.

Accordingly, these expenses are disclosed as

a separate column, Central Corporate Costs,

within the Segmental note. These costs are

borne within the Computacenter (UK) Limited

legal entity and have been removed for

Segmental reporting and performance

analysis but form part of the overall Group

adjusted

administrative expenses.

During the year, total Central Corporate Costs

were reduced at £23.7 million (2020: £27.1 million).

Within this:

• Board expenses, related public company

costs, costs associated with Group

Executive members not aligned to a

specific geographic trading entity, and

certain one-off costs in relation to the

cancellation of Group-wide central

meetings, increased to £9.1 million (2020:

£6.8 million) partially due to the Executive

Directors waiving their salaries in the

second quarter of 2020 and both Founder

Non-Executive Directors waiving their fees

from 1 April to 31 December 2020;

• share-based payment charges associated

with the Group Executive members

identified above, including the Group

Executive Directors, increased from

£3.2 million in 2020 to £3.8 million in 2021,

due primarily to the increased value of

Computacenter plc ordinary shares and

the overall increased performance of the

Group; and

Where possible, future charges relating to this reconfiguration of the business will be disclosed separately to the Group’s adjusted

results.

This will mean that, over time, the future costs incurred can be attributed against the exceptional gain on acquisition recognised in the prior year.

There have been no such costs incurred during the year to 31 December 2021.

An exceptional loss during 2020 of £0.7 million resulted from the acquisition of Pivot and primarily related to fees paid to the Company’s advisors.

This cost was non-operational, unlikely to recur and is consistent with our prior-year treatment of acquisition costs on material transactions as

exceptional items. It was therefore classified as outside our adjusted

results.

In 2020, an exceptional gain of £0.2 million related to the release of accrued costs for the French Social Plan. Whilst not material, this was

classified outside our adjusted

results to be consistent with where the cost was recognised in 2016, as an additional provision for the effect

of winding down the Social Plan.

Earnings per share

Diluted EPS increased by 20.3 per cent to 160.9 pence per share (2020: 133.8 pence per share). Adjusted

diluted EPS increased by 31.0 per cent

to 165.6 pence per share (2020: 126.4 pence per share).

2021 2020

Basic weighted average number of shares (excluding own shares held) (m) 113.0 112.9

Effect of dilution:

Share options 2.2 2.0

Diluted weighted average number of shares 115.2 114.9

Profit for the year attributable to equity holders of the Parent (£m) 185.3 153.8

Basic earnings per share (pence) 164.0 136.2

Diluted earnings per share (pence) 160.9 133.8

Adjusted

profit for the year attributable to equity holders of the Parent (£m) 190.8 145.3

Adjusted

basic earnings per share (pence) 168.6 128.7

Adjusted

diluted earnings per share (pence) 165.6 126.4

Group Finance Director’s review

continued

• strategic corporate initiatives are designed

to increase capability and therefore

competitive position, enhance productivity

or strengthen systems which underpin the

Group. During the year this spend was

£10.8 million (2020: £17.1 million), primarily

due to reduced spend on projects that

completed in the second half of 2020 and

lower than planned spend on certain other

projects, which is expected to be incurred

in the first half of 2022. In addition, during

2021 there was a significant review of

certain large software implementations,

which will increase spend during 2022.

Cash flow

The Group delivered an operating cash inflow

of £224.3 million for the year to 31 December

2021 (2020: £236.9 million inflow).

As noted in the 2020 Annual Report and

Accounts, there were certain Covid-19-related

one-off benefits included in the 2020 cash

flow and net cash positions, including

extended free-of-charge supplier credit with

a major technology partner as well as

improvements arising from customer mix.

Most of these benefits had expired by

31 December 2020 and were material factors

in the reduction in operating cash flow in the

first half of 2021, when compared to the first

half of 2020.

Net cash positions no longer include extended

free-of-charge supplier credit with a major

technology partner, as this temporary

Covid-19-related arrangement was fully

repaid during the year (31 December 2020:

£15.0 million).

Other components of the working capital

increase are explained below.

During the year, net operating cash outflows

from working capital, including inventories,

trade and other receivables and trade and

other payables, were £77.1 million (2020:

£28.3 million outflow).

As noted in our 2020 Annual Report and

Accounts the year-end cash position was

abnormally high, as a number of our

customers paid ahead of normal payment

cycles, partly, we believe, where overseas

customers looked to avoid sometimes

negative interest rates. This was exacerbated

by a shift towards government customers

during the year, resulting in improvements in

cash collection as governments, particularly

in Europe, have been settling debts as quickly

as possible and well ahead of industry

standard payment terms. Whilst the Group,

in turn, paid a number of its suppliers early,

to reduce the temporary excess cash on the

balance sheet at the year end, the volume

of early payments from customers received

in the final days of the prior year was

unprecedented. The Company estimated,

broadly, that unforeseen receipts from

customer payments in advance of the due

date exceeded the Company’s ability to pay

its own suppliers early by roughly £50 million.

These positions have largely unwound

through the year, and this is reflected in the

working capital movements seen.

In 2021, working capital cash flows were

further impacted by both the revenue

growth and the increased inventory levels,

in particular within our North American

business. Due to the significant product

shortages seen during the year, a number of

hyperscale customers have made advance

orders of product with delayed delivery, to

ensure continuity of supply. Additionally,

inventory has increased as we have

deliberately invested in working capital by

pre-ordering inventory, thereby using the

strength of our balance sheet to support our

customers during product shortages.

Further, a number of rack build orders were

incomplete at the year end, sometimes due to

shortages of smaller components required to

complete the rack build. Finally, the transition

of the FusionStorm business to the Group ERP,

whilst now complete, did result in short-term

operational issues that impacted working

capital, as the picking and shipping of

complex inventory items, invoicing and cash

collection in particular experienced

significant delays late in the third quarter and

early in the fourth quarter. By the end of the

year there was an improving position, as the

FusionStorm entity has gained experience in

using the system and tools and learned how

to leverage their advantages. Considerable

improvement is still required, although at the

date of this report, the working capital

impacts of the system migration have

reduced materially.

The Group had £341.3 million of inventory as

at 31 December 2021, an increase of 61.5 per

cent on the balance as at 31 December 2020

of £211.3 million. Over three quarters of this

increase was attributable to our North

American Segment, which had closing inventory

of £212.5 million (2020: £103.2 million).

At the end of 2021, the Group again saw record

levels of early payments from suppliers.

However, we elected to retain the cash on the

Group’s balance sheet rather than make early

payments to suppliers, to offset the

extraordinary investments in working capital

throughout 2021, as reflected in the closing

inventory levels.

Capital expenditure in the year was

£30.3 million (2020: £27.5 million)

representing, primarily, investments in IT

equipment and software tools, to enable us to

deliver improved service to our customers.

The Group’s Employee Benefit Trust (EBT)

made market purchases of the Company’s

ordinary shares of £25.5 million (2020:

£19.0 million) to satisfy maturing PSP awards

and Sharesave schemes and to re-provision

the EBT in advance of future maturities.

During the year the Company received savings

from employees of £6.2 million to purchase

options within the Sharesave schemes (2020:

£5.7 million).

During the year the Group made two

acquisitions. The first was ITL, as described

above, for £1.1 million. The second was to

acquire a further 5.0 per cent of the total

voting rights within R.D. Trading Ltd, taking

the Group’s ownership to 95 per cent.

The Group reduced loans and credit facilities

during the year by £89.0 million (2020:

£19.7 million). We retired the facility

associated with the FusionStorm acquisition,

made regular repayments towards the loan

related to the construction of the German

headquarters in Kerpen and significantly

reduced the amount drawn under the Pivot

credit facility, as detailed below.

The Group continued to manage its cash and

working capital positions appropriately, using

standard mechanisms, to ensure that cash

levels remained within expectations

throughout the year. From time to time, some

customers request credit terms longer than

our standard of 30-60 days. In certain

instances, we will arrange for the sale of the

receivables on a true sale basis to a finance

institution on the customers’ behalf. We would

typically receive funds on 45-day terms from

the finance institution, who will then recover

payment from the customer on terms agreed

with them. The cost of such an arrangement

is borne by the customer, either directly or

indirectly, enabling us to receive the full

amount of payment in line with our standard

terms. The benefit to the cash and cash

equivalents position of such arrangements

as at 31 December 2021 was £53.7 million

(31 December 2020: £38.9 million). The Group

had no other debt factoring at the end of the

year, outside this normal course of business.

Strategic Report

Annual Report and Accounts 2021

Cash and cash equivalents and net funds

Cash and cash equivalents as at 31 December 2021 were £285.2 million, compared to £309.8 million at 31 December 2020. Net funds as at

31 December 2021 were £95.3 million (31 December 2020: £51.1 million). Adjusted net funds

as at 31 December 2021 were £241.4 million,

compared to adjusted net funds

of £188.6 million as at 31 December 2020.

Net funds as at 31 December 2021 and 31 December 2020 were as follows:

31 December

2021

£m

31 December

2020

£m

Cash and short-term deposits 285.2 309.8

Bank overdraft (12.0) –

Cash and cash equivalents 273.2 309.8

Bank loans (31.8) (121.2)

Adjusted net funds

(excluding lease liabilities) 241.4 188.6

Lease liabilities (146.1) (137.5)

Net funds 95.3 51.1

For a full reconciliation of net funds and

adjusted net funds

, see note 31 to the

Consolidated Financial Statements.

The Group had four specific credit facilities

in place during the year and no other

material borrowings.

The Group drew down a £100 million term loan

on 1 October 2018 to complete the acquisition

of FusionStorm. This loan was on a seven-year

repayment cycle, with a renewal of the loan

facility due on 30 September 2021. The Group

has made further unplanned repayments of

this loan during the year, in addition to the

unplanned repayment of £30 million in the

second half of 2019, which reduced the

interest cost differential between loan rates

and cash deposit rates. As at 31 December

2020, £41.6 million remained of the loan and

the Group has now retired the credit facility by

paying the remaining balance in full during

the first half of the year.

At the start of the year, Pivot had a

substantially unutilised $225.0 million senior

secured asset-based revolving credit facility,

from a lending group represented by

JPMorgan Chase Bank, N.A. To reduce bank

fees, this was reduced to $100 million during

the year. The residual facility can be used for

revolving loans, letters of credit, protective

advances, over advances, and swing line

loans. During the year, the Group has

continued to reduce the amount drawn on the

facility and only £7.0 million remained drawn

as at 31 December 2021 (31 December 2020:

£58.4 million). In addition, Pivot has £9.4

million financed with a major technology

partner for hardware, software and resold

technology partner maintenance contracts

that the Company has purchased as part of

a contract to lease these items to a key North

American customer.

The Group also has a specific term loan for

the build and purchase of our German office

headquarters and fit out of the Integration

Center in Kerpen, which stood at £14.7 million

at 31 December 2021 (31 December 2020:

£20.9 million).

For further information on these facilities,

see note 23 to the Consolidated

Financial Statements.

The Group excludes lease liabilities from its

non-GAAP adjusted net funds

measure,

due to the distorting effect of the capitalised

lease liabilities on the Group’s overall

liquidity position under the IFRS 16

accounting standard.

There were no interest-bearing trade

payables as at 31 December 2021

(31 December 2020: nil).

The Group’s adjusted net funds

position

contains no current asset investments

(31 December 2020: nil).

Trade creditor arrangements

Computacenter has a strong covenant and

enjoys a favourable credit rating from

technology partners and other suppliers.

Some suppliers provide standard credit

directly on their own credit risk, whereas

other suppliers decide to sell the debt to

banks, who offer to purchase the receivables

and manage collection. The standard credit

terms offered by suppliers are typically

between 30 and 60 days, whether provided

directly or when sold to a third-party finance

provider. In the latter case, the cost of the free

trade credit period is paid by the relevant

supplier, as part of the overall package of

terms provided by suppliers to Computacenter

and our competitors. The finance providers

offer extended credit terms at relatively low

interest rates. However, these rates are

always higher than the rate at which we

deposit and therefore we do not currently

use these facilities.

Capital management

Details of the Group’s capital management

policies are included in note 28 to the

Consolidated Financial Statements.

Financial instruments

The Group’s financial instruments comprise

borrowings, cash and liquid resources, and

various items that arise directly from its

operations. The Group’s policy is not to undertake

speculative trading in financial instruments.

The Group enters into hedging transactions,

principally forward exchange contracts or

currency swaps, to manage currency risks

arising from the Group’s operations and its

sources of finance. As the Group continues

to expand its global reach and benefit from

lower-cost operations in geographies such

as South Africa, Poland, Mexico and India, it

has entered into forward exchange contracts

to help manage cost increases due to

currency movements.

The main risks arising from the Group’s

financial instruments are interest rate,

liquidity and foreign currency risks. The

overall financial instruments strategy is to

manage these risks in order to minimise their

impact on the Group’s financial results. The

policies for managing each of these risks are

set out below. Further disclosures in line with

the requirements of IFRS 7 are included in the

Consolidated Financial Statements.

Group Finance Director’s review

continued

Revenue

Half 1

£m

Half 2

£m

Total

£m

2019 2,427.0 2,625.8 5,052.8

2020 2,462.2 2,979.1 5,441.3

2021 3,180.0 3,545.8 6,725.8

2021/20 29.2% 19.0% 23.6%

Adjusted

profit before tax

Half 1 Half 2 Total

£m % Revenue £m % Revenue £m % Revenue

2019 53.5 2.2% 92.8 3.5% 146.3 2.9%

2020 74.6 3.0% 125.9 4.2% 200.5 3.7%

2021 118.9 3.7% 136.7 3.9% 255.6 3.8%

2021/20 59.4% 8.6% 27.5%

Revenue by Segment

2021 2020

Half 1

£m

Half 2

£m

Total

£m

Half 1

£m

Half 2

£m

Total

£m

UK 939.5 1,009.1 1,948.6 858.8 914.6 1,773.4

Germany 926.5 1,094.7 2,021.2 843.7 1,032.6 1,876.3

France 313.1 340.3 653.4 304.3 368.5 672.8

North America 910.1 1,001.5 1,911.6 378.2 566.3 944.5

International 90.8 100.2 191.0 77.2 97.1 174.3

Total 3,180.0 3,545.8 6,725.8 2,462.2 2,979.1 5,441.3

Adjusted

operating profit by Segment

2021

Half 1 Half 2 Total

£m % Revenue £m % Revenue £m % Revenue

UK 51.7 5.5% 51.2 5.1% 102.9 5.3%

Germany 61.1 6.6% 76.7 7.0% 137.8 6.8%

France (2.0) (0.6%) 5.5 1.6% 3.5 0.5%

North America 18.7 2.1% 12.3 1.2% 31.0 1.6%

International 4.1 4.5% 7.2 7.2% 11.3 5.9%

Central Corporate Costs (11.1) (12.6) (23.7)

Total 122.5 3.9% 140.3 4.0% 262.8 3.9%

2020

Half 1 Half 2 Total

£m % Revenue £m % Revenue £m % Revenue

UK 45.9 5.3% 44.4 4.9% 90.3 5.1%

Germany 35.6 4.2% 77.0 7.5% 112.6 6.0%

France 3.8 1.2% 9.2 2.5% 13.0 1.9%

North America 4.7 1.2% 9.3 1.6% 14.0 1.5%

International 0.2 0.3% 3.4 3.5% 3.6 2.1%

Central Corporate Costs (12.9) (14.2) (27.1)

Total 77.3 3.1% 129.1 4.3% 206.4 3.8%

Strategic Report

Annual Report and Accounts 2021

Interest rate risk

The Group finances its operations through a

mixture of retained profits, bank borrowings,

leases and loans for certain customer

contracts. The Group’s general bank

borrowings, other facilities and deposits are

at floating rates. No interest rate derivative

contracts have been entered into. The Group’s

$100 million North American facility and the

undrawn committed facility of £60 million are

at floating rates. However, the borrowing

facility for the operational headquarters in

Germany is at a fixed rate.

Liquidity risk

The Group’s policy is to ensure that it has

sufficient funding and facilities to meet any

foreseeable peak in borrowing requirements.

The Group’s positive net cash was maintained

throughout 2021 and at the year end was

£273.2 million, with net funds of £95.3 million

after including the Group’s three specific

borrowing facilities and lease liabilities

recognised under IFRS 16. Excluding lease

liabilities, adjusted net funds

was

£241.4 million at the year end.

Due to strong cash generation over many

years, the Group can currently finance its

operational requirements from its cash

balance, and it operates an informal cash

pooling arrangement for the majority of Group

entities. The Group has a committed facility

of £60.0 million, which was extended in

September 2020 and now has an expiry date

of 7 September 2023. The Group has never

drawn on this committed facility.

The Group has a Board-monitored policy to

manage its counterparty risk. This ensures

that cash is placed on deposit across a range

of reputable banking institutions.

Foreign currency risk

The Group operates primarily in the United

Kingdom, Germany, France and the United

States of America, with smaller operations in

Belgium, Canada, China, Hungary, India,

Ireland, Malaysia, Mexico, the Netherlands,

Poland, Romania, South Africa, Spain and

Switzerland. The Company also maintains

entities in Singapore and Hong Kong, in order

to transact in those local markets with

Services and Technology Sourcing operations

delivered from elsewhere in the Group.

The Group uses an informal cash pooling

facility to ensure that its operations outside

the UK are adequately funded, where principal

receipts and payments are denominated in

euros and US dollars (USD). For those countries

within the Eurozone, the level of non-euro

denominated sales is small and, if material,

the Group’s policy is to eliminate currency

exposure through forward currency

contracts. For our North American operations,

most transactions are denominated in USD.

For the UK, the majority of sales and purchases

are denominated in pounds sterling and any

material trading exposures are eliminated

through forward currency contracts.

The Group has been successful in winning

international Services contracts, where

Services are provided in multiple countries.

We aim to minimise currency exposure by

invoicing the customer in the same currency

in which the costs are incurred. For certain

contracts, the Group’s committed contract

costs are not denominated in the same

currency as its sales. In such circumstances,

for example where contract costs are

denominated in South African rand, we

eliminate currency exposure for a foreseeable

period on these future cash flows, through

forward currency contracts.

In 2021, the Group recognised a loss of

£0.9 million (2020: loss of £1.9 million) through

other comprehensive income in relation to

the changes in fair value of related forward

currency contracts, where the cash flow

hedges relating to firm commitments were

assessed to be highly effective.

The Group reports its results in pounds

sterling. The strength of sterling against most

currencies during 2021, in particular the euro,

has begun to impact our revenues and

profitability as a result of the conversion of

our foreign earnings. The USD exchange rates

during the year, in particularly the second

half, were not materially dissimilar to those

seen in 2020.

The impact of restating 2020 results at 2021

exchange rates would be a reduction of

£142.9 million in 2020 revenue and a decrease

of £6.1 million in 2020 adjusted

profit before tax.

Credit risk

The Group principally manages credit risk

through customer credit limits. The credit

limit is set for each customer based on its

creditworthiness, using credit rating agencies

as a guide, and the anticipated levels of

business activity. These limits are determined

when the customer account is first set up and

are regularly monitored thereafter. There are

no significant concentrations of credit risk

within the Group. The Group’s major customer,

disclosed in note 4 to the Consolidated

Financial Statements, consists of entities

under the control of the UK Government.

The maximum credit risk exposure relating

to financial assets is represented by their

carrying value as at the balance sheet date.

Going Concern

Computacenter’s business activities,

business model, strategic priorities and

performance are set out within this Strategic

Report from the inside front cover to page 85.

The financial position of the Group, its cash

flows, liquidity position and borrowing

facilities are set out within this Group Finance

Director’s review on pages 75 to 78.

In addition, notes 27 and 28 to the

Consolidated Financial Statements include

Computacenter’s objectives, policies and

processes for managing its capital, its

financial risk management objectives, details

of its financial instruments and its exposures

to credit and liquidity risk.

The Directors have, after due consideration,

and as set out in note 2 to the Consolidated

Financial Statements on page 145 of this

Annual Report and Accounts, a reasonable

expectation that the Group has adequate

resources to continue in operational

existence for a period of 12 months from the

date of approval of the Consolidated Financial

Statements, as set out on pages 140 to 193 of

this Annual Report and Accounts.

Thus, they continue to adopt the Going

Concern basis of accounting in preparing the

Consolidated Financial Statements.

Viability Statement

In accordance with provision 31 of the UK

Corporate Governance Code, the Directors

have assessed the Group’s prospects over a

longer period than the 12 months required by

the Going Concern Statement.

Viability timeframe

The Directors have assessed the Group’s

viability over a period of three years from

31 December 2021. This period was selected

as an appropriate timeframe for the following

reasons, based on the Group’s business model:

• the Group’s rolling strategic review, as

considered by the Board, covers a three-

year period;

• the period is aligned to the length of the

Group’s Managed Services contracts, which

are typically three to five years long;

• the short lifecycle and constantly evolving

nature of the technology industry lends

itself to a period not materially longer than

three years; and

• Technology Sourcing has seen greater

recent growth than the Group’s Services

business, increasing the revenue mix

towards the part of the business that has

less medium-term visibility and is therefore

more difficult to forecast.

Group Finance Director’s review

continued

Further, the Directors’ monitor conditions in

the environment external to the Group and

have concluded that the current factors

continue to support the timeframe selected:

• the continuing macro-economic, diplomatic

and trade environment, following the

departure of the UK from the European

Union, introduces greater uncertainty into a

forecasting period longer than three years;

• the prolonged impact of Covid-19, and in

particular the effect on certain of our

customers from the worsening global

economic outlook, and the current

increasing pace of change of technology

adoption as a result;

• continuing short-term product shortages,

resulting primarily from the Covid-19

impact on supply chains; and

• the likely short to medium-term impact of

the Russian invasion of Ukraine on the

global macro-economic environment,

including an exacerbation of supply chain

issues currently being experienced.

Whilst the Directors have no reason to believe

the Group will not be viable over a longer

period than three years, we believe that a

three-year period presents shareholders with

a reasonable degree of confidence, while

providing a longer-term perspective.

With regard to the principal risks set out on

pages 80 to 85, the Directors remain assured

that the business model will be valid beyond

the period of this Viability Statement. There

will continue to be demand for both our

Professional Services and Managed Services

businesses, and Management is responsible

for ensuring that the Group remains able to

meet that demand at an appropriate cost to

our customers. The Group’s value-added

product reselling Technology Sourcing

business only appears vulnerable to

disintermediation at the low end of the

product range, as the Group continues to

provide a valuable service to customers and

technology partners alike, as described on

pages 18 to 21. The Group has seen significant

business growth in the UK throughout the

Covid-19 pandemic, due to the end-to-end

Technology Sourcing capability that it can

deliver from its UK Integration Center,

which is a significant differentiating factor

in this market.

Prospects of the Group assessment process

and key assumptions

The assessment of the Group’s prospects

derives from the annual strategic planning

and review process. This begins with an

annual away day for the Board, where

Management presents the strategic review

for discussion against the Group’s current

and future operating environments.

High-level expectations for the following year

are set with the Board’s full involvement and

are delivered to Management, who prepare

the detailed bottom-up financial target for

the following year. This financial target is

reviewed and agreed by Management before

presentation to the Board for approval at the

December Board meeting.

On a rolling annual basis, the Board considers

a three-year business plan (the Plan)

consisting of the detailed bottom-up financial

target for the following year (2022) and

forecast information for two further years

(2023 and 2024), which is driven by top-down

assumptions overlaid on the detailed target

year. Key assumptions used in formulating the

forecast information include organic revenue

growth, margin improvement and cost

control, continued strategic investments

through the Consolidated Income Statement,

and forecast Group effective tax rates, with

no changes to dividend policy or capital

structure beyond what is known at the time

of the forecast. The financial target for 2022

was considered and approved by the Board on

9 December 2021, with amendments and

enhancements to the target as part of the full

Plan considered and approved by the Board on

8 March 2022.

Impact of risks and assessment of viability

The Plan is subject to rigorous downside

sensitivity analysis, which involves flexing a

number of the main assumptions underlying

the forecasts within the Plan. The forecast

cash flows from the Plan are aggregated with

the current position, to provide a total

three-year cash position against which the

impact of potential risks and uncertainties

can be assessed. In the absence of significant

external debt, the analysis considers access

to available committed and uncommitted

finance facilities, the ability to raise new

finance in most foreseeable market conditions

and the ability to restrict dividend payments.

The potential impact of the principal risks and

uncertainties, as set out on pages 80 to 85,

is then applied to the Plan. This assessment

includes only those risks and uncertainties

that, individually or in plausible combination,

would threaten the Group’s business model,

future performance, solvency or liquidity

over the assessment period and which are

considered to be severe but reasonable

scenarios. It also takes into account an

assessment of how the risks are managed and

the effectiveness of any mitigating actions.

The combined effect of the potential

occurrence of several of the most impactful

risks and uncertainties is then compared to

the cash position generated throughout the

sensitised Plan, to assess whether the

business will be able to continue in operation.

For the current period, the primary downside

sensitivity relates to a modelled, but not

predicted, severe downturn in Group

revenues, beginning in 2022, simulating a

continued impact for some of our customers

from the Covid-19 crisis together with the

Group’s revenues being impacted by supply

shortages. This sensitivity analysis models

a continued market downturn scenario for

some of our customers, whose businesses

have been affected by Covid-19, and a similar

downturn occurring for the remainder of our

customer base alongside a further impact on

the Group’s Technology Sourcing revenues

throughout the first half of 2022 from

possible ongoing technology partner-related

supply shortage issues.

Additionally, the risks related to continued

disruption from the departure of the UK from

the European Union, and the potential for a

suspension or termination of the EU-UK Trade

and Cooperation Agreement have been reflected

within our underlying business plans.

Conclusion

Based on the period and assessment above,

the Directors have a reasonable expectation

that the Group will be able to continue in

operation and meet its liabilities, as they

fall due, over the three-year period to

31 December 2024.

Fair, balanced and understandable

The Board confirms that the Annual Report

and Accounts, taken as a whole, is fair,

balanced and understandable and provides

the information necessary for shareholders

to assess the Group’s position and

performance, business model and strategy.

Management undertakes a formal process

through which it can provide comfort to the

Board in making this statement.

Strategic Report

Annual Report and Accounts 2021

The Board

Executive

Committee

Audit

Committee

Remuneration

Committee

Nomination

Committee

Country-specific Management

Group Delivery

Group Commercial Management

Group Finance

Group Information Security

Group Human Resources

Group Legal and Compliance

Group Information Assurance

Country-specific Take-On

Group Quality Management

& Assurance

Anti-bribery & Corruption

Competition Law

Export Control

Whistleblowing

Data Protection

Environmental

Health & Safety

Group Risk Committee

Group Compliance

Steering Committee

Second line of defenceFirst line of defence Third line of defence

Risk ownership and application

of internal controls

Independent assurance

Group Internal Audit

Compliance, oversight

and assurance functions

OUR RISK GOVERNANCE MODEL

Principal risks and uncertainties

1. Risk overview

Our long-term success is built on a clear

strategic direction, contractual and

operational excellence and effective business

services functions, such as Finance, Human

Resources and Legal and Compliance, which

support customer-facing employees to fulfil

their obligations effectively. All of this is

underpinned by an advanced IT

infrastructure, hosting both internal and

customer platforms. Our strategic,

contractual and infrastructure risks are

largely determined by the industry in which

we operate and our long-term approach to

adding value. Our financial and people risks

are defined by the wider economic

environment, the way we run our business

day-to-day and our long-term employee

needs. While outside factors are beyond our

control, our risk management approach is

committed to managing the impact of these

influences, while controlling the internal

elements vital to our success.

2. Risk trends

The overall risk landscape has changed due

to specific threats and our response to them

as discussed below. In addition, we have

continued to monitor the effects of the

Covid-19 pandemic for its potential impact

on our business, specifically in relation to the

health and wellbeing of our employees, our

global supply chain and in changing customer

requirements, both in relation to the pandemic

and the longer-term evolution of the delivery

of IT services.

We use the three lines of defence model with

regards to the assurance over key risks. This

includes a mapping exercise which considers

the level of assurance afforded by each of

the compliance and oversight functions,

when considering the overall level of assurance

provided over each risk. To aid the appreciation

of the risks facing the Group, we have

categorised them into five main areas.

Strategic: The strategic-level risk profile is

one of long-term risk due to technological

change, including Computacenter’s ability or

otherwise to innovate effectively, and in the

globalisation of customer demand. Our

response continues to mature in line with

market and customer changes, ensuring that

the risk remains at the same level.

Contractual/Operational: Our main focus

remains on the effective governance of

contracts, both in the pre-deal phase and in

delivery. This includes our emphasis on data

privacy. We continue to extend the use of our

Service Quality Management Framework to

improve the underlying quality of sales, bid

governance and operations. We have

recognised compliance/reputational risk

as a principal risk for the first time this year.

Overall, while we believe the main contractual

and operational risks have remained at the

same level, underlined by the robust

governance structures we have in place, the

risk of personal data loss has increased in line

with the heightened cyber threat.

Infrastructure: Cyber security remains at the

forefront of discussions at the Board and both

the Risk and Audit Committees. Cyber security

risks are increasing due to the greater

activity of a range of cyber threat actors,

including nation states, worldwide. This

greater activity has resulted in more

sophisticated and more frequent cyber

attacks against IT infrastructure.

Computacenter, along with other companies

of a similar size and profile that operate

within our sector, has been the target of cyber

attacks in recent years. Our defensive

systems and processes have, to date, ensured

that these attacks have been identified and

mitigated without any material impact on our

financial or operational performance.

Financial: We continue to concentrate on the

fundamentals important to our business,

including the effective management of

working capital. This risk has increased over

the year, particularly in relation to the level of

inventory held.

People: Our people remain integral to the

continued success of our business. The risks

reflect the importance we place on experience,

inclusivity, openness and collaboration. We

believe there has been an increased risk in

relation to recruitment and retention during

2021 due to the post-Covid-19 economic

recovery and the effects of inflation.

3. Risk appetite

Our risk appetite is strongly influenced by

our experience in the industry sector. At an

operational level, we have a higher risk

appetite for business development where we

have experience of the risks and a lower risk

appetite where we have less experience.

This is supported day-to-day by our operating

policies and governance processes, which

include decision-making support and authority

over new contracts and contract changes.

4. Risk culture

Risk management and governance processes

are well-established and understood within the

business and operate at all levels. Strategic-

level risks are monitored by the Risk and Audit

Committees, as well as by the Board. Lower-

level operational risks are identified, analysed

and mitigated at a functional level on an

ongoing basis, using well-embedded processes.

5. Risk identification and impact

Risk assessment and reporting are designed to

provide the Board with a Group-wide perspective

of the key risks faced by the business.

The Group Risk Committee, which reports to

the Audit Committee, meets four times per

year and reviews our principal risks, which are

the main barriers to meeting our strategic

goals, on an ongoing basis. This top-down

approach includes assessing whether

emerging risks are sufficiently significant to

warrant inclusion in the Group Principal Risk

Log. If so, the likelihood of occurrence and

potential impact are considered, and the risk

is subject to regular review. Regular reporting

to the Group Risk Committee by the respective

risk owners includes an assessment of the

likelihood and cost impact of each risk, a

consideration of non-financial impacts, risk

appetite, key risk indicators, potential risk

triggers and an assessment of mitigating

controls. The Group Principal Risk Log is

reviewed by both the Audit Committee and the

Board. The key risks are considered further in

relation to the long-term Viability Statement

(see pages 78 to 79).

Other lower-level risks outside the principal

risks are identified and analysed in two ways.

These are:

1) Through the bottom-up Group Operating

Business Risk Assessment process, which is

completed by over 100 managers across the

business. The results of this process are

reviewed by the Group Risk Committee. This

includes validating these risks against the

principal risks, to ensure that all potential

threats are considered. Lower-level risks are

often triggers for crystallising principal risks,

so their careful management remains an

important consideration.

2) Via the Group Compliance Steering

Committee (see risk governance model)

which assesses reports from the Compliance

Management System for the areas under

its remit.

The risks presented below are the principal

risks that existed during 2021, as reported in

the Annual Report and Accounts 2020 and

modified during the year through the risk

identification and impact process.

Strategic Report

Annual Report and Accounts 2021

Our four Strategic Priorities Strategic

priority 1:

To lead with and grow

our Services business

Strategic

priority 2:

To improve our

Services productivity

and enhance our

competitiveness

Strategic

priority 3:

To retain and

maximise the

relationship with our

customers over the

long term

Strategic

priority 4:

To innovate our

Services offerings to

build future growth

opportunities

RISK CATEGORIES:

Strategic Risks

Market shift in technology usage

Geo-political risk

Increasing globalisation of customer demand

Contractual and Operational Risks

Lack of effective pre-contract processes

Lack of effective post-contract delivery

Loss of personal data

Acquisition integration

Compliance/reputational risk

Infrastructure Risks

Cyber threat

Integrity failure of critical systems

Financial Risk

Ineffective working capital management

People Risks

Poor employee recruitment and retention

Inadequate succession planning

Group risk log 2021 heat map

1. Strategic Risks

Unchanged risk

2. Contractual and Operational Risks

Increased risk

3. Infrastructure Risks

Increased risk

4. Financial Risk

Increased risk

5. People Risks

Increased risk

Likelihood

Impact

Unchanged risk

Decreased risk

Increased risk

Principal risks and uncertainties

continued

2. Contractual and Operational Risks

Alert status

Increased risk of loss, corruption or unauthorised disclosure of personal data commensurate with the increased cyber threat.

Risks

• Lack of effective pre-contract processes, resulting in poor

design, costing and pricing

• Lack of effective post-contract delivery

• Loss, corruption or unauthorised disclosure of personal data

• Lack of effective acquisition integration and failure to deliver on

acquisition objectives

• Failure to meet our commitments or comply with applicable laws

and regulations in relation to environmental, social and

governance matters

Principal impacts

• Customer dissatisfaction

• Financial penalties

• Contract cancellations

• Reputational damage

• Reduced margins

• Loss-making contracts

• Reduced service and technical innovation

Mitigation

• Mandatory governance processes relating to bids and new

business take-ons, including risk-based decision-making

assessments and new tooling

• Board oversight of significant bids

• Early Warning System and assurance provided by the Group

Quality Management & Assurance function over key bids and

delivery programmes

• Regular commercial ‘deep dives’ into troubled contracts and

challenging transformation projects

• Data privacy audit programme

• Appropriate due diligence and acquisition integration plans in

place, with ongoing monitoring of key risks to ensure success

• Board-endorsed sustainability strategy

• Climate Committee oversees initiatives to reduce environmental

impact (see pages 52 to 61)

• TCFD disclosure (see pages 62 to 64)

• Strong Company culture and values (see pages 44 to 51)

• Oversight by the Compliance Steering Committee

• Strong corporate governance, risk management and ethics,

including policies and/or training for anti-bribery and

corruption, export compliance, competition law, HSE and HR in

addition to a whistleblowing hotline

Risk owners

• Group Delivery Director

• Group Commercial Management Director

• Group Legal and Compliance Director

• Group Development Director

• Group Finance Director

• Group Chief People Officer

1. Strategic Risks

Alert status

No change.

Risks

• Market shift in technology usage, making what we do less

relevant or superfluous and we fail to invest appropriately to

defend our competitiveness

• Geo-political risk arising from our increasingly global operations

• Increasing globalisation of customer demand, resulting in a

changing global competitive landscape

Principal impacts

• Reduced margin

• Excess operational employees

• Contracts not renewed

• Missed business opportunities

Mitigation

• Well-defined Group strategy, backed by an annual strategy

process that considers our offerings against market changes

• Group Investments and Strategy Board, which considers

strategic initiatives

• Additional measures including CEO-led country, sector and

win/loss reviews

Risk owners

• Chief Executive Officer

• Group Development Director

• Group Delivery Director

Strategic Report

Annual Report and Accounts 2021

3. Infrastructure Risks

Alert status

Increasing due to the worldwide activity of cyber threat actors including nation states, and the need to replace a number of core systems

in the coming years.

Risks

• Cyber threat to Computacenter’s networks and systems, arising

from either internal or external security breaches, leading to

system failure, denial of access or data loss. In addition, cyber

threats introduced by Computacenter to its customers’

networks and systems, for whatever reason

• Major failure(s) leading to unacceptably long outages or regular

short outages of our customer-facing systems leading to

customer dissatisfaction, financial penalties or contract

cancellations, leading to damage to our reputation and ability

to win business. Failure to plan and execute effectively the

replacement of our core internal systems, leading to loss of

business control

Principal impacts

• Inability to deliver business services

• Reputational damage

• Customer dissatisfaction

• Financial penalties

• Contract cancellations

Mitigation

• Well-communicated Group-wide information security and virus

protection policies

• Specific inductions and training for employees working on

customer sites and systems

• Specific policies and procedures for employees working behind

a customer’s firewall

• Ongoing and regular programme of external penetration testing

• Policies ensuring Computacenter does not run customer

applications or have access to customer data

• Regular review of cyber security controls and threat analysis by

Computacenter’s Group Information Assurance team

• All Group standard systems built and operated on high-

availability infrastructure, designed to accommodate failure

of any single technical component

• All centrally-hosted systems built and operated on high-

availability infrastructure, with multiple levels of redundancy

• All centrally-hosted systems benefit from dual network

connectivity into core data centers designed to accommodate

loss of network service

• Standing agenda item for each meeting of the Group

Risk Committee

Risk owner

• Chief Information Officer

4. Financial Risk

Alert status

Increased in line with the higher level of inventory held due to chip and other shortages as well as some ERP implementation issues

in North America.

Risk

• Failure to manage working capital effectively

Principal impacts

• Financial impact through bad debts, obsolete inventory and/or

other working capital movements

Mitigation

• Implementation of debt management best practice, after

centralising Europe-wide collection functions at the Budapest

finance Shared Service Center (excluding recent North

American acquisitions)

• Inventory management controls and monitoring

• Increasing use of direct delivery

Risk owner

• Group Finance Director

Principal risks and uncertainties

continued

5. People Risks

Alert status

Increased risk in recruitment and retention due to the post-pandemic recovery, resulting in labour shortages.

Risks

• Failure to recruit and retain the right calibre of employees to our

talent pool, which includes acting as an inclusive employer, with

a focus on senior positions in sales, services and projects

• Inadequate succession planning or insufficient depth within key

Senior Executive positions

Principal impacts

• Lack of adequate leadership

• Customer dissatisfaction

• Financial penalties

• Contract cancellations

• Reputational damage

Mitigation

• Succession planning in place for the top 50 managers across

the Group

• Regular remuneration benchmarking

• Incentive plans to aid retention

• Investment in management development programmes

• Regular employee surveys to understand and respond to

employee issues

• Specific diversity projects in place relating to accessibility and

wellbeing, life balance, LGBT+ and allies, future talent, focus on

women and culture

Risk owners

• Group Chief People Officer

• Chief Executive Officer

This Strategic Report was approved by the Board on 23 March 2022 and was signed on its behalf by:

MJ Norris

Chief Executive Officer

FA Conophy

Group Finance Director

Strategic Report

Annual Report and Accounts 2021

GOVERNANCE

87 Chair’s governance overview

88 Board of Directors

90 Corporate governance report

95 Nomination Committee report

97 Risk and internal control

99 Audit committee report

106 Directors’ remuneration report

126 Directors’ report

131 Directors’ responsibilities

Chair’s governance overview

Our governance framework

is intended to provide an

appropriate balance between

ensuring that the Board and

its Committees provide

effective leadership for the

Group, whilst enabling

colleagues throughout the

organisation to operate with

the speed and agility required

to support our customers

and other stakeholders.

Peter Ryan

Non-Executive Chair

Peter Ryan

Non-Executive Chair

Effective decision-making also requires the

Board to have the right balance of skills,

experience, knowledge and diversity. Our

Nomination Committee has focused on Board

and Executive succession planning during the

year, considering both the Company’s current

and likely future requirements. We are pleased

to have increased our female director

representation on the Board to just over 33

per cent, meaning that we are now compliant

with the recommendations of the Hampton-

Alexander review. Diversity at Board and Group

Executive Committee level will remain very

much on the Board’s agenda in 2022, to

ensure that Computacenter has the best

possible talent available to it in seeking to

deliver value for its stakeholders.

There have been two changes to the Board

since our last Annual Report. Minnow Powell

retired from the Board after six years of

service, having worked to lift the performance

of the Company across compliance, financial

reporting and governance, and offering wise

counsel and guidance in his role as a

Non-Executive Director. Pauline Campbell

joined the Board in August and is already

adding a fresh perspective and significant

value to Board discussions, as well as recent

and relevant financial experience from her

role at PwC. Pauline’s profile can be found on

page 89, which sets out in more detail her

current and previous roles, and the skills and

experience that she will bring to the Board as

a Non-Executive Director.

Given the time constraints of its annual

programme, and corporate governance and

regulatory requirements for UK listed

companies, the Board delegates a number of

its responsibilities to its principal Committees,

so that it can focus on those areas deemed to

be of particular operational, financial or

reputational importance to the Group. The

Board reviewed and approved the Terms of

Reference for each of these Committees

during the year, as well as the authorities that

it delegates to Management to run the

organisation on a day-to-day basis.

An internal evaluation of the Board and its

Committees took place during the year. Further

details of the process and outcomes can be

found on page 98. Following consideration of

its findings, I am satisfied that the Board

continues to function effectively, and that its

current constitution and range of skills are

appropriate for promoting the long-term

interests of the Company.

Peter Ryan

Non-Executive Chair

23 March 2022

Dear Shareholder,

On behalf of the Board, I am pleased to

introduce Computacenter’s Corporate

Governance Report for the year ended

31 December 2021.

Computacenter’s purpose is to enable the

success of our customers, people, technology

partners and the communities in which we

operate, by building long-term trust. I am

in no doubt that the clarity of this message,

supported by the values and culture set

by the Board, has helped the organisation to

navigate the unfamiliar, and sometimes

difficult, conditions in which it has had to

operate since the onset of the Covid-19

pandemic, in March 2020. Our Purpose, Values

and culture all prioritise and support the

consideration of long-term consequences in

our decision-making, and relationships with

our key stakeholders. They have helped

Computacenter to prioritise its actions and

decision-making throughout the Covid-19

pandemic, including at Board level.

Our governance framework is intended to

provide an appropriate balance between

ensuring that the Board and its Committees

provide effective leadership for the Group,

and have sufficient oversight and decision-

making involvement in areas such as strategy,

performance, governance and risk, whilst

enabling our colleagues throughout the

organisation to act with sufficient

independence and agility to respond to and

work effectively with our stakeholders.

As a Board, we are mindful of our

responsibility to ensure that our activities

and decision-making are consistent with,

and enable Computacenter to achieve, its

purpose. We employ over 18,000 people,

our customers depend on us to help them

navigate complex digital environments and

deliver high levels of service that effectively

support their business needs, and we

provide our technology partners with an

important route to market for their products.

A significant number of people and

organisations, many of whom sit outside of

Computacenter, are impacted by and depend

on our continued success and growth.

It is therefore critical that the Board is able to

understand the views and interests of our key

stakeholders – our customers, employees,

technology partners, investors and

communities in which we operate – and that

these are factored into and considered in the

decisions that it makes. Further detail on how

the Company and Board have engaged with

our key stakeholders, why that engagement is

important, and how the Board has considered

them and other Section 172 factors in its

decision-making, is set out on pages 66 to 69

and on pages 91 to 92.

Governance Report

Annual Report and Accounts 2021

Board of Directors

The Board has an appropriate

balance of independence,

knowledge and experience

which allows it to perform its

role effectively, providing

effective and entrepreneurial

leadership to the Group, and

promoting its long-term

sustainable success.

Peter Ryan

Non-Executive Chair

Committee membership: N, R

Board meeting attendance: 8/8

Peter has, since 1980, had a successful

international career in technology

encompassing all dimensions of the industry,

including software, services, systems

integration, outsourcing and infrastructure.

Over the last 10 years, Peter has held roles

such as Chief Sales Officer with Hewlett

Packard Enterprise, Chief Client Officer at

Logica plc and Executive Vice President, Global

Sales and Services with Sun Microsystems Inc.

Peter is also Chairman of privately held Ocean

Technology Group.

Board meeting attendance: 7/8

Philip founded Computacenter with Peter

Ogden in 1981 and worked for the Company

on a full-time basis until stepping down as

Executive Chairman in 2001. He was previously

a Vice President and Director of the Boston

Consulting Group.

Board meeting attendance: 8/8

Mike graduated with a degree in Computer

Science and Mathematics from East Anglia

University in 1983. He joined Computacenter

in 1984 as a salesman in the City office.

Following appointments in senior roles, he

became Chief Executive in December 1994,

with responsibility for all day-to-day

activities and reporting channels across

Computacenter. Mike also led the Company

through flotation on the London Stock

Exchange in 1998. Mike was awarded an

honorary Doctorate of Science from the

University of Hertfordshire in 2010.

Board meeting attendance: 8/8

Tony has been a member of the Chartered

Institute of Management Accountants since

1982. He qualified with Semperit (Ireland) Ltd

and then worked for five years at Cape

Industries plc. He joined Computacenter in

1987 as Financial Controller, rising in 1991 to

General Manager of Finance. In 1996, he was

appointed Finance and Commercial Director

of Computacenter (UK) Limited with

responsibility for all financial, purchasing and

vendor relations activities. In March 1998 he

was appointed Group Finance Director.

Committee membership key

A – Audit Committee

N – Nomination Committee

R – Remuneration Committee

Peter Ryan

Non-Executive

Chair and Chair

of the

Nomination

Committee

Mike Norris

Chief

Executive

Officer

Philip Hulme

Founder

Non-Executive

Director

Tony Conophy

Group Finance

Director

Board meeting attendance: 8/8

Peter founded Computacenter with Philip

Hulme in 1981 and was Chairman of the

Company until 1998, when he became a

Non-Executive Director. Prior to founding

Computacenter, he was a Managing Director

of Morgan Stanley and Co.

Committee membership: A, N, R

Board meeting attendance: 8/8

Ljiljana has more than 25 years’ experience

in the IT industry. She was Global Head of

financial services and a member of the

executive committee at Atos SE, following its

takeover of Siemens IT Solutions and Services

GmbH, where she headed the worldwide

banking and insurance sales business. Ljiljana

has also held senior roles at Hewlett-Packard

and WestLB AG. Since 2016, she has focused on

technology start-ups as a Senior Partner of

Impact51 AG. Ljiljana is a non-executive director

of Grenke AG, a global financing partner for

small and medium-sized companies.

Committee membership: A, N, R

Board meeting attendance: 4/4

Pauline is a recently retired

PricewaterhouseCoopers (PwC) Audit Partner

who brings over 30 years of experience in the

profession. She has worked internationally

across a broad range of sectors including IT

services and support services. Pauline also

served on the Governance Board of the UK

firm including the Public Interest Body and the

equivalent body at PwC’s Global Network, so

brings a wealth of governance experience.

Pauline is a Non-Executive Director of Micro

Focus International plc.

Committee membership: A, N, R

Board meeting attendance: 7/8

Rene is a US national. He has over 30 years’

experience in executive and general

management, marketing and sales. He is

currently the Chief Executive Officer of Arm

Limited, the world leader in semiconductor IP

and provider of IoT device and data management

platforms. Prior to his current role, Rene led

Arm’s Intellectual Property Group and was,

amongst other appointments, Chief

Commercial Officer and Executive Vice

President Sales and Marketing at Arm. He

spent seven years as Vice President and

General Manager Computing Products at

NVIDIA Corporation.

Committee membership: A, N, R

Board meeting attendance: 8/8

Ros was appointed as the Group’s Designated

Non-Executive Director for Workforce

Engagement in 2017. She is a Senior

Independent Non-Executive Director at Victrex

plc. Ros is Chair of the Nuclear Decommissioning

Authority and a Non-Executive Director of the

Ministry of Defence – Defence Equipment and

Support Board, where she is a member of the

Remuneration and Nomination Committees

and is the Lead Non-Executive Director at

Luxembourg-based Aperam SA. She was a

Non-Executive Director of ConvaTec plc, RPC

Group plc, CEVA Logistics AG, Rexam plc and

Deputy Chair of the Council of the University of

Southampton for 10 years. Ros was previously

Chief Operating Officer for Smith & Nephew plc

and held senior management positions in

global companies including Exxon, Diageo,

ICI and Tate & Lyle Group.

Peter Ogden

Founder

Non-Executive

Director

Pauline

Campbell

Independent

Non-Executive

Director and

Chair of the Audit

Committee

Ros Rivaz

Senior Independent

Non-Executive

Director and Chair

of the Remuneration

Committee

Rene Haas

Independent

Non-Executive

Director

Ljiljana Mitic

Independent

Non-Executive

Director

Governance Report

Annual Report and Accounts 2021

Corporate governance

report

The Group’s Viability Statement is set out

on pages 78 and 79, within the Finance

Directors’ review.

BOARD LEADERSHIP AND COMPANY PURPOSE

The role of the Board

The Group is led by the Board, which is

responsible for promoting its long-term

sustainable success, with a focus on

generating value for our shareholders and the

wider interests of our key stakeholders. It

discharged this responsibility in 2021 through

the completion of its annual programme, with

eight scheduled meetings covering areas

relating to strategy, operational and financial

performance, risk management and corporate

governance. Further details of the Board’s

principal activities that it undertook during

the year can be found on pages 91 and 92.

Under the Framework, the Board retains

oversight and sole decision-making authority

over a number of key matters which are

likely to be operationally, financially or

reputationally material to the Group. These

are set out in a clearly defined schedule of

matters reserved, which was reviewed during

the year, and includes decisions concerning

acquisitions, major capital expenditure and

the Group’s strategy, budgets, consolidated

financial statements and dividend policy. The

schedule can be found on our investor website

at investors.computacenter.com.

APPLICATION OF CODE PRINCIPLES

• Board Leadership and Company Purpose

– page 90

• Division of Responsibilities – page 93

• Composition, Succession and Evaluation

– pages 95, 96 and 98

• Audit, Risk and Internal Control – pages 97

to 105

• Remuneration – page 106 to 125

RELATED STATEMENTS AND

CONFIRMATIONS

The Directors are required to include the

following in the Annual Report and Accounts,

in accordance with the Code. Please see:

• page 79 for the Board’s statement on the

Annual Report and Accounts being fair,

balanced and understandable and

providing the information necessary for

shareholders to assess the Group’s position

and performance, business model

and strategy;

• page 78 for the statement on the status

of the Company and the Group as

a going concern;

• the Strategic Report from the inside front

cover to page 85, for an explanation of the

Group’s business model and the strategy

for delivering the Group’s objectives; and

• the statement on risk and internal control

for confirmation that the Directors have

carried out a robust assessment of the

principal and emerging risks facing the

Group, including those that would threaten

its business model, future performance,

solvency or liquidity.

As a company with a premium listing

on the London Stock Exchange,

Computacenter plc (the Company)

is required to report on how it has

applied the principles of the UK

Corporate Governance Code (the

Code), published by the UK Financial

Reporting Council (FRC) in 2018.

A description of how it has done so

is set out on pages 90 to 131, which

includes the reports of the Board

Committees and the Directors’ Report.

The Board confirms that the Company

complied with the provisions of the

Code throughout 2021. A copy of the

Code is available at www.frc.org.uk.

The pages that follow aim to provide

our stakeholders with an understanding

of how our Corporate Governance

Framework (the Framework) operated

during the year, and the outcomes

that it produced during that time.

The Framework ensures that our

organisation is appropriately led,

directed and controlled. It gives our

people clarity on their responsibilities

and accountabilities, and our

decision-making authorities,

restrictions and processes, helping

to ensure that decisions are properly

made and then implemented

throughout the Group. In doing so,

it helps us to set and deliver our

strategy, manage our risks, safeguard

long-term shareholder value and

protect our reputation with our

key stakeholders.

Our Corporate Governance Framework

The Board

Board Committees

Nomination

Committee

Audit

Committee

Remuneration

Committee

Shareholders

Chief Executive Officer

Group Executive Team

* The Board delegates authority for managing the Group on a day-to-day basis to the Chief Executive Officer.

Board activity in 2021

The Board held eight scheduled meetings during 2021 to cover its annual agenda of activities, through which it provides the Group with

leadership and promotes its long-term sustainable success. Whilst the list of the Board’s activities set out below is not exhaustive, it provides

an understanding of its main areas of focus, and of the Section 172 factors that it considered in its discussions and decision-making,

including the views and interests of our stakeholders. This section is incorporated by reference into the Board’s Section 172 statement for

2021, as set out on page 65.

During the year, the Board:

Stakeholders and Section

Strategy 172 factors considered

• Held a dedicated strategy day to review and approve the Group’s three-year plan. Areas reviewed include the

Group’s Technology Sourcing, Managed Services and Professional Services propositions; competitive positioning

and differentiation; growth potential and opportunities; and future strategic investment requirements.

Further information on the Group’s current strategy is available on pages 8 to 17.

A B C D E

LT SP

• Conducted seven strategy-related deep dives across the year on topics of material importance to

achieving progress against the Group’s strategic objectives. Approved investment in the Group’s IT Service

Management tooling.

A B C D LT

• Reviewed and approved acquisition opportunities, the integration of recent acquisitions and considered

shareholder feedback on our strategy.

A C D LT

• Received regular updates on the status of our environmental, social and governance (ESG) strategy and progress

made against our ‘Winning Together for our People and our Planet’ objectives. Further information on the Group’s

ESG areas of focus and strategy is available within the sustainability section on pages 40 to 41.

A B C D E

ENV

HS SP

• Reviewed the Group’s financing, cash deposit and cash reserve strategy. For further detail on the outcomes

of these discussions, please see the Group Finance Director’s review on pages 70 to 79.

A C D LT AF

Our People and Culture

• Conducted a ‘deep dive’ into Computacenter’s culture, including discussing its development over recent years,

its alignment with our ‘Winning Together’ values, strategy and purpose, and the impact of Covid-19.

A B D E LT

• Reviewed succession planning for members of the Group Executive Committee, and the process for talent

management throughout Computacenter.

B LT

• Reviewed and approved Non-Executive Directors’ Remuneration, considering the limits set in the Company’s

Articles of Association, and relevant benchmarking data.

C LT

• Received regular updates from the Group’s Designated Non-Executive Director for Workforce Engagement,

highlighting matters of concern and importance to employees, and reviewed the results of the 2021 Group-wide

employee survey providing the Board with insight into employee views of our culture, strategy, response to

Covid-19 and ESG activities. Commentary on the outcomes of our workforce engagement programme and

employee survey can be found on page 46.

B LT

• Received updates from the Chief People Officer on Management’s interactions with the Group’s Employee

Works Councils.

B LT HS

• Reviewed and discussed targets for Group Executive Committee members concerning diversity and inclusion.

Our wider approach to diversity and inclusion, and ensuring we have the best talent available to generate value

for our stakeholders, can be found on page 46.

B C E LT

Financial and Operational Performance

• Received regular reports from the Chief Executive Officer, and considered business performance against Board

and market expectations, material issues impacting our key stakeholders, and progress against the Group’s

strategic objectives and key performance indicators. For further detail on the Group’s performance during 2021,

please see pages 26 to 39.

A B C D E

LT SP

• Reviewed senior Management presentations from each of the in-country and Group Function leadership teams,

providing the Board with insight into financial performance and the outcomes of stakeholder engagement.

A B D LT SP

• Considered and approved the budget and performance-related targets for 2022 and approved the 2021 interim

and final dividends. For our 2021 final dividend and details of our dividend policy, please see page 74.

A C D LT AF

• As a standing item on its agenda, reviewed data relating to the performance and competitiveness of the Group’s

Managed Services business. Commentary on our Managed Services business can be found on page 22.

A C

Governance Report

Annual Report and Accounts 2021

Our strategy is the means by which we can

achieve Our Purpose. The Framework provides

the Board with a central role in discussing,

reviewing and approving the Group’s strategic

priorities, and then measuring the progress

made against them. Our strategy is set out on

pages 10 to 17, and our strategic priority

measures, which the Board reviews, are set

out on pages 8 and 9.

The Strategic Report, from the inside front

cover to page 85, explains how the Group

generates and preserves value over the long

term, describes how opportunities and risks

to the future success of the business have

been considered and addressed, and sets out

our sustainable business model. In addition to

reviewing a strategy-related topic at every

scheduled Board meeting during the year, the

Board also holds a dedicated strategy day,

during which it comprehensively assesses

Computacenter’s competitive positioning

within its markets, its strategic options and

related three-year plan. Through its review of

the business plans and budgets submitted by

the Executive Directors and senior

Management, including challenging the

assumptions underpinning them, the Board

ensures that adequate resources are

available to meet related objectives, whilst

maintaining capital discipline. The Board

reviews the performance of the Executive

Directors and senior Management team

against targets relating to these agreed

objectives, including a monthly review of

the financial performance of each of the

Group’s Segments.

The Framework also allows the Board’s

principal Committees to help support the

successful execution of Computacenter’s

strategy. The responsibilities of the

Nomination Committee include ensuring that

the Board, its Committees, and together with

the Chief Executive Officer, the senior

Management team, have the right skills and

strength in depth to set and approve an

effective strategy and successfully deliver it.

The Remuneration Committee’s work ensures

that key individuals are appropriately

incentivised to achieve the Board’s strategic

objectives, whilst ensuring that decisions

taken are aligned with the Board’s risk

appetite. The Audit Committee independently

assures the processes and information which

underpin and measure strategic delivery.

Delegated authorities

So the Board can give key matters sufficient

attention and consideration within the time

constraints of its programme, the Framework

allows it to delegate those powers and

responsibilities which it deems necessary,

subject to UK corporate governance

requirements. Other Board-level matters are

delegated to the Nomination, Audit and

Remuneration Committees. The membership,

responsibilities and activities of these

Committees can be found on pages 95 to 125

and their Terms of Reference can be found

on our investor website. The Board also

delegates day-to-day management and

operational activities to the Chief Executive

Officer, who is assisted by the Group Executive

Committee, which reports directly into him.

Purpose, strategy and business model

The Board is responsible for establishing Our

Purpose, which is to enable the success of our

customers, people, technology partners and

communities through building long-term

trust. It reviewed Our Purpose during the

year, as part of its deep dive review of

Computacenter’s culture.

• Received a presentation on Computacenter’s principal growth drivers between 2018-2021.

A C D LT

• Approved the Group’s full-year and interim results announcements and ad hoc trading updates. Our results

announcements and trading updates can be found on our website at investors.computacenter.com.

C HS

Governance, compliance and risk management

• Approved the Group’s principal and emerging risks, and considered the effectiveness of the risk management

and internal control system. Reviewed the Company’s reporting against the recommendations of the Task Force

on Climate-related Financial Disclosures. Our principal risks and uncertainties can be found on page 80.

A B C LT HS

• Received updates on stakeholder engagement, a regulatory update from the Company Secretary, and approved

the Group’s Modern Slavery Statement and Gender Pay Gap Reporting. Reviewed various corporate governance

matters, including Director conflicts of interest, the Board Matters Reserved document and the Terms of

Reference for the Board’s Committees.

A B C D E

LT HS SP

• Conducted an internally facilitated evaluation of the Board, its principal Committees and each Director.

The results of our Board Evaluation, and an explanation of the process undertaken, can be found on page 98.

C LT HS

• Reviewed recommendations from the Nomination Committee regarding Board succession planning and

approved the appointment of Pauline Campbell as a Non-Executive Director. The activities of our Nomination

Committee in 2021 are set out on pages 95 and 96.

C LT HS

• Received and considered reports from the Chairs of the Board’s Committees, and matters recommended

to it for approval by those Committees, particularly in respect of financial reporting, risk management and

Board appointments.

C LT HS

Customers

People

Investors

Technology partners

Community

Long-term consequences of decision-making

ENV

Considering the environment

Maintaining a reputation for high standards of business conduct

Acting fairly between members of the Company

Suppliers (excluding our technology partners)

Our key stakeholders Other Section 172 factors

Board activity in 2021

continued

Committee Chair. Pauline Campbell joined the

Board as a Non-Executive Director on 16

August 2021. She is a member of each of the

Board’s Committees, and became Audit

Committee Chair with immediate effect upon

Minnow’s departure.

The Board has considered the independence

of each Director, taking into account the

guidance provided by the Code. The Board

considered that the Chair, Peter Ryan, met the

Code’s independence criteria on appointment,

and considers that Pauline Campbell, Ros Rivaz,

Ljiljana Mitic and Rene Haas are independent in

their character and judgement. Philip Hulme

and Peter Ogden, the Founder Non-Executive

Directors, are not considered to be independent,

having started the Company in 1981 and

remained on the Board in either an Executive

or Non-Executive capacity since that time.

The Framework ensures that there is no

dominant individual or group of individuals on

the Board influencing its decision-making.

The Board is comfortable that each Director

makes a valuable contribution in their role.

Board appointments and development

The Nomination Committee leads the process

for Board appointments. Further detail on the

Committee’s role, membership and work

during the year is set out on pages 95 to 96.

Non-Executive Directors are appointed to

the Board for an initial three-year term, the

renewal of which is timed to be at the close of

an Annual General Meeting. The Executive

Directors are appointed for a rolling 12-month

term. The terms and conditions of appointment

of all Directors are available for inspection at the

Company’s registered office and at each AGM.

The Company’s Articles of Association require a

Director to be subject to election at the first AGM

following his or her appointment and every

third year thereafter. However, in accordance

with the Code, the Board has decided that all

Directors should be subject to election or

re-election at the Company’s 2022 AGM, and

each AGM thereafter. If the shareholders do

not elect or re-elect a Director, or a Director

is retired from office under the Articles, the

appointment terminates immediately and

without compensation.

Upon joining the Board, all Directors receive

a comprehensive induction programme

organised by the Company Secretary,

tailored to their specific background and

requirements. New Directors receive an

induction pack which contains information

on the Group’s business, its structure and

operations, Board procedures, corporate

governance matters and details of Directors’

duties and responsibilities. All new Directors

are introduced to the Group’s Executive

Management team. New Directors are

also given the opportunity to meet with

major shareholders.

impact of the Covid-19 pandemic on our

culture, and the general importance of

leadership messaging in reflecting and

reinforcing our culture.

The Board confirms it is satisfied that the

Group’s purpose, values, strategy and culture

are aligned.

Investing in and rewarding our workforce

Further detail on how we invest in and reward

our workforce is set out in the Directors’

Remuneration Report on pages 106 to 125,

and on page 48 of the Strategic Report.

Engagement with our investors

The Board recognises the importance of

meeting and engaging with our shareholders,

and places significant value on understanding

their views and interests. In 2021, the Board

completed a programme of engagement with

the Company’s institutional investors, to

ensure they understand our strategy,

performance and governance arrangements,

and can make informed investment decisions

relating to Computacenter.

Further detail on engagement with our investors

during the year, and how the outcomes of that

engagement were fed back to the Board and

considered in its discussions and decision-

making, are set out on pages 69, 91 and 92.

The Company’s Annual General Meeting (AGM)

will be held on Thursday 19 May 2022 at

Computacenter House, 100 Blackfriars Road,

SE1 8HL. The AGM Notice of Meeting sets out

each of the resolutions being proposed.

The notice will shortly be available at

investors.computacenter.com, and will be

mailed to shareholders who have elected to

receive hard copies.

Stakeholder engagement

Details of the Group’s engagement with its

other key stakeholders, including our

customers, employees, technology partners

and communities, and how its outcomes were

considered by the Board in its discussions

and decision-making, are set out on pages

66 to 69.

DIVISION OF RESPONSIBILITIES

Board composition and independence

The membership of the Board as at 31

December 2021 is set out on pages 88 and 89.

On that date, the Board included seven

Non-Executive Directors and two Executive

Directors. The Directors’ attendance at Board

and Committee meetings is set out on pages

88 to 89, 95, 99 and 114. The diversity and

experience of the Board enables it to

discharge its functions effectively.

There were two changes to the Board during

the year. On 30 September 2021, Minnow

Powell stepped down as a member of the

Board and its Committees, and as Audit

Culture and Values

The Board views culture as a competitive

differentiator in our key markets, as it can

impact the appetite of our key stakeholders to

work with us as an organisation. It affects the

way that they view us, the way our people

behave when representing us, and our wider

corporate reputation. The Board assessed

and monitored the Group’s culture in several

ways during the year. It is underpinned by our

Code of Ethics Policy (Ethics Code), which

defines the rules, principles and behaviours

that the Group expects those who conduct

business on its behalf to adhere to, and on

which our supplementary workforce policies

and practices are based. The Board approves

the Ethics Code, ensuring that it is aligned with

our stated culture, values and strategy.

It also receives updates from the Audit

Committee on potential breaches of the Ethics

Code, which indicate behaviours inconsistent

with our culture and values. By monitoring

these reports, the Board can assess whether

there are common themes around behaviour

and therefore how embedded Computacenter’s

culture and values are across the organisation.

Some of these reports are initially made

through our independent and confidential

whistleblowing hotline, Safecall. The Board is

satisfied that arrangements are in place for

the proportionate and independent

investigation of these reports, and for

follow-up action, where required.

The work of the Workforce Engagement

Director, Ros Rivaz, is described on page 67.

She updated the Board regularly on her

engagement and discussions with our

workforce and their representative groups

in 2021, and the key outcomes and findings.

This helps the Board to understand the

approach, views, interests and activities of

our workforce, what it understands the

Group’s culture to be, and how well it thinks

that culture is embedded into different areas

of the organisation.

The Board also learned about our employees’

views on our culture, values and behaviours

when it reviewed the results of the Group-

wide employee survey completed in 2021.

Further details of the survey findings are set

out on page 46.

The Board received presentations from the

leadership teams of the Group’s operating

country units and central functions. Through

related discussions with senior Management

the Board is able to identify cultural variances

across the Group, including those driven by

geography, remoteness from the Group’s

headquarters or local customs and norms.

The Chief People Officer also presented to the

Board on the development of the Group’s

culture, with the aim of ensuring we can

attract, retain and promote the best talent

available. The Board also discussed the

Governance Report

Annual Report and Accounts 2021

Insurance and indemnities

The Company arranges insurance cover in

respect of legal action against the Directors

and, to the extent allowed by legislation, has

issued an indemnity to each Director against

claims brought by third parties.

Conflict of interest procedure

The Company’s Articles of Association allow

the Board to review and authorise situations

where a Director has an interest that

conflicts, or may conflict, with those of

Computacenter, and to impose conditions

on that authorisation.

The Board has formal procedures to

appropriately manage any actual or potential

conflicts of interest identified. These include

considering each conflict from a competitive

and commercial perspective, which includes

identifying supplier or customer relationships

between Computacenter and the third party,

and also identifying if there are any areas

where it competes with Computacenter.

The Board also considers the conflict in

accordance with the requirements of the

Companies Act 2006.

External appointments and time commitment

The Non-Executive Directors’ letters of

appointment set out the expected time

commitment required to execute their duties.

Although the nature of the roles makes it

difficult to be specific about the maximum

time commitment, a commitment of up to

two days per month is expected, including

attendance at and preparations for regular

Board meetings. In certain circumstances,

for instance when the Company is engaged in

acquisitions, restructuring or other corporate

transactions, there may be additional Board

meetings, and Non-Executive Directors are

expected to attend these where possible.

Each Director’s external commitments are

monitored on an ongoing basis to ensure that

they have sufficient time to devote to their

role at Computacenter. Following the internal

Board evaluation completed for 2021, the

Board is satisfied that each Director is able to

allocate sufficient time to the Company to

discharge his or her responsibilities

effectively, and that no external appointments

of our Board Directors have any impact on

their independence or responsibilities to

the Company.

Provided the time commitment does not

conflict with the Directors’ duties to the

Company, the Board may authorise the

Executive Directors to take Non-Executive

positions in other companies and

organisations, as this helps to broaden their

experience. The Board would not agree to a

full-time Executive Director taking on more

than one Non-Executive Directorship of a FTSE

100 company or the Chair of such a company.

No such positions have been taken by the

Executive Directors.

Information and support

To enable the Directors to discharge their

duties, they receive appropriate documentation

in advance of each Board and Committee

meeting, including detailed briefings on

all matters.

Directors can obtain independent

professional advice, at the Company’s

expense, where they believe it is necessary to

discharge their responsibilities. The Company

Secretary ensures that the Board Committees

are provided with sufficient resources to

undertake their duties. Where Directors have

concerns which cannot be resolved, whether

about the running of the Company or a

proposed action, their concerns will be

recorded in the Board minutes. On resignation,

a Non-Executive Director would be required

to provide a written statement to the Chair,

for circulation to the Board, if they had any

such concerns.

The Company Secretary advises the Board on

all corporate governance matters and

advises the Chair to ensure that all Board

procedures are correctly followed. All

Directors have access to the advice and

services of the Company Secretary. The

appointment or removal of the Company

Secretary requires Board approval.

The Corporate Governance Report, from

pages 87 to 125 was approved, by order of

the Board, and signed on its behalf by:

Simon Pereira

Company Secretary

23 March 2022

The Chair regularly liaises with each Director

to discuss and agree their training and

development needs. The Board is confident

that all of its members have the knowledge,

ability and experience to perform the functions

required of a Director of a listed company.

Role of the Chair and Chief Executive Officer

The roles of the Chair and Chief Executive

Officer (CEO) are separate, and their

responsibilities are clearly set out in writing,

reviewed annually and agreed by the Board.

They are available from the Company’s

website at investors.computacenter.com.

In summary, the Chair’s role is to lead and

manage the Board, set its agenda, be

responsible for its effectiveness in all aspects

of its role and ensure the Board has sufficient

time to address all areas of responsibility,

particularly strategic issues. The Chair

actively encourages contributions from all

Directors and is responsible for ensuring

constructive interaction between the

members of the Board. The CEO is responsible

for the day-to-day management of the

Group’s operations and for the proper

execution of strategy, as set by the Board.

Senior Independent Director

Ros Rivaz is the Senior Independent Director.

She acts as a sounding board for the Chair

and, where necessary, as an intermediary

between the Chair and other Directors.

She is available to take representations from

shareholders who do not want to raise the

issue with the Chair. Ros also leads the annual

appraisal of the Chair’s performance, in

consultation with the other Non-Executive

Directors and without the Chair being present.

Non-Executive Directors

The Non-Executive Directors provide an

external perspective, constructively

challenge the Executive Directors and senior

Management, and monitor and scrutinise the

Group’s performance against agreed goals

and objectives. Their biographies, skills and

experience, which allow them to offer

strategic guidance and specialist advice

in areas such as remuneration, audit and

accounting and corporate governance, are

set out on pages 88 and 89.

Corporate governance

report continued

Nomination committee

report

During the year, the

Committee continued to

focus on ensuring that there

are plans in place for Board

and senior Management

succession.

Peter Ryan

Non-Executive Chair

Peter Ryan

Chair of the

Nomination

Committee

Membership and attendance

The members of the Nomination Committee

are the independent Non-Executive Directors

and the Chair of the Board.

Minnow Powell stepped down from the

Committee and the Board on 30 September

2021, having attended the Committee’s two

meetings held during the year prior to his

departure. Pauline Campbell joined the

Committee on 16 August 2021, immediately

upon her appointment as a Non-Executive

Director. Further detail on the Committee’s

membership and attendance at its meetings

can be found directly above.

The Company Secretary is the secretary to the

Committee, and upon invitation, the meetings

are also attended by the Chief Executive

Officer and the Chief People Officer.

The Chair of the Committee reports to the

Board on its activities.

Responsibilities of the Nomination Committee

The key responsibilities of the Nomination

Committee are to:

• lead the process for Board appointments;

• ensure the Board and its Committees have

a combinations of skills, experience,

diversity and knowledge appropriate for

leading the Group, given its size and the

markets in which it operates;

• review the structure, size and membership

of the Board and its Committees to ensure

that they are able to function effectively;

• review succession planning for the Board

and Senior Executives of the Group; and

• review whether each Director has sufficient

time to discharge his or her duties to

the Company.

The Committee’s full terms of reference are

available on the Company’s website at

investors.computacenter.com.

COMPOSITION AND SUCCESSION

Main activities of the Committee in 2021

The Nomination Committee met three times

during 2021 and its work included:

Succession planning

The Committee continued to focus on its

responsibility under the 2018 UK Corporate

Governance Code (the Code) to ensure that

plans are in place for Board and senior

Management succession, and to oversee the

development of a diverse pipeline for that

succession. To inform its work in this area, the

Committee received an update from the Chief

People Officer, during which it reviewed the

processes in place for succession planning

and talent management throughout the

organisation, including defined managerial

responsibilities for implementation.

The Committee reviewed succession options

for the Executive Directors and other

members of the Group Executive Committee,

which included understanding the criticality

of each role to the long-term sustainable

success of the Group, and the relative

availability of internal and external candidates

for the roles over various time horizons.

Succession planning for Group Executive

positions, including the Executive Directors,

was presented to the Board by the Chief

Executive Officer and the Chief People Officer

later in the year.

To help it understand succession planning

requirements, and to ensure that the Board

and its Committees are able to function

effectively on an ongoing basis, the

Committee reviewed and discussed the

composition of the Board and its Committees,

and the skills, diversity and knowledge that

each individual Director brings. It considered

how the leadership needs of the Group may

change over time, influenced by factors

including its strategy, plans for growth and

geographic footprint, and likely future

corporate governance requirements.

The Committee also recognises the

importance of effective Non-Executive

Director succession planning, given that the

Board currently includes our two founder

Non-Executive Directors, who continue to

contribute significantly and appropriately

to Board discussions, particularly around

strategy and performance. The Board does

not consider Sir Philip Hulme and Sir Peter

Ogden to be independent for the purposes

of the Code.

It is therefore important that the Committee

is prepared for unexpected or emergency

independent Non-Executive Director

succession so that the Company is able

Current members Role

Attendance

record

1. Peter Ryan (Chair) Non-Executive Chair

of the Board

3/3

2. Pauline Campbell Non-Executive Director 1/1

3. Rene Haas Non-Executive Director 3/3

4. Ljiljana Mitic Non-Executive Director 3/3

5. Ros Rivaz Non-Executive Director 3/3

Former member

5. Minnow Powell (until 30 September 2021) Non-Executive Director 2/2

Governance Report

Annual Report and Accounts 2021

Executive Director roles, given that the

Committee will also consider internal

candidates, with whom it is already familiar,

given its role in succession planning. Only

external candidates will be considered for

Non-Executive roles.

Board changes

There were two changes to the Board during

the year, with Minnow Powell retiring from the

Board after just over six years of service, and

Pauline Campbell joining the Board as a

Non-Executive Director, and taking over as

Audit Committee Chair effective from the date

of Minnow’s departure. The full process by

which Pauline was appointed was set out in

this Committee’s 2020 report. We are grateful

to Minnow for his period of excellent service,

and are delighted to have appointed

somebody of Pauline’s calibre. As set out in our

2020 Annual Report and Accounts, the

Company used Russell Reynolds to assist with

the search for this position. Russell Reynolds

has no other connection with the Company,

other than the provision of this type of service.

Performance of the Committee

During the year, the Company Secretary

facilitated an internal review of the Committee,

in accordance with its Terms of Reference.

The review concluded that the Committee

continued to function effectively during the

year, but will continue to further increase its

focus in 2022 on Management’s plans to ensure

that the Group has a diverse pipeline for

succession to senior Management positions.

The Committee has responded to

observations made on its performance in

recent years, and has increased its oversight

of succession planning during the year,

including over the pipeline of internal

candidates for Executive Director succession.

Further detail on how the Committee

evaluation was conducted is disclosed on

page 98.

Election and re-election of Directors

In accordance with the provisions of the Code,

and as recommended by the Committee, all

Directors in office as at 31 December 2021 will

be put forward for election or re-election at

the AGM to be held in May 2022. Pauline

Campbell is being put forward for election by

shareholders for the first time. The Committee

made its recommendation following its review

of Board and Committee composition and the

2021 evaluations.

Diversity

The Board recognises the benefits that

diverse skills, experience and thought can

bring to an organisation, and how it can assist

the Board’s decision-making and

effectiveness. The Committee always

considers these benefits when reviewing

Board succession planning, and during the

appointment process. This includes requiring

diverse lists of potential candidates to be

presented to it for selection.

The Board is also of the view that

appointments to it must be made primarily on

merit, with regard to the benefits of diversity.

As such, the Committee does not view it as

appropriate to have in place a formal diversity

policy which specifically applies to the Board

and Group Executive Committee.

The Committee is aware of related corporate

governance requirements and suggested

best practice in this area, including the Sir

John Parker review on ethnic diversity and the

Hampton-Alexander review on gender

diversity. As at 31 December 2021, the Board

was compliant with the Hampton-Alexander

recommendations with one-third female

representation, and it is currently anticipated

that it will be compliant with the Sir John

Parker recommendations by 2024.

The Board and the Committee endorse

Computacenter’s wider approach to diversity,

including its six pillars of diversity, as set out

in more detail on page 46, and its Equality and

Respect at Work Policy, which applies

throughout the organisation, including to the

Board, its Committees and the Group Executive

Committee. This is in place to ensure that

everybody who represents Computacenter

promotes equality, diversity and inclusion in

the way they behave, their communication

and in their day-to-day actions.

The Group will further enhance its

commitment and approach to diversity and

inclusion in 2022, with the creation of a Group

Inclusion Statement, which will be reviewed by

the Committee. This inclusion statement will

be published on our website and will underpin

our country-specific inclusion policies.

Further detail on the Group’s approach to

diversity and inclusion can be found on

page 46.

Female representation at Board level has

increased from 22.2 per cent in 2020 to

33.3 per cent in 2021. Female representation

in our Group leadership has improved from

20.5 per cent in 2020 to 22.8 per cent in 2021.

Leadership teams are comprised of members

of the Executive Committee and those senior

leaders who are direct reports to Executive

Committee members (excluding

administration and support roles).

Peter Ryan

Chair of the Nomination Committee

23 March 2022

to remain in compliance with Provision 11 of

the Code, which requires at least half of the

Directors, excluding the Chair, to be considered

independent by the Board, with reference to

the factors set out in the 2018 Code.

The Committee also recognises that

Non-Executive Director succession planning

needs to continually be re-assessed against

updated corporate governance requirements

and best practice, and also the guidelines of

proxy advisors, and our largest institutional

shareholders, many of whom now have

individual requirements as part of their own

investment stewardship programmes. As a

result, a significant part of the Committee’s

agenda involved independent Non-Executive

Director succession planning, including the

impact of the Board changes that took place

during the year.

To facilitate the Committee’s planning, the

Chair had regular conversations with Board

members as to their future intentions

regarding tenure, closely reviewed the results

of the Board and Committee evaluations, and

consulted with the Company Secretary to

ensure that relevant governance considerations

were taken into account.

Following the completion of its review

processes during the year, the Committee

confirms it is satisfied that plans are in place

for the orderly succession to both Board and

senior Management positions, and that these

are based on merit and objective criteria.

Following the departure of Minnow Powell

from the Board during the year, and the

appointment of Pauline Campbell, the average

tenure of our Chair and independent

Non-Executive Directors is now less than

three years.

Process for Board appointments

There is a formal, rigorous and transparent

procedure for the appointment of new

Directors to the Board. It is led by the

Committee, and is triggered by the

identification of a skills gap on the Board and

its Committees. This is usually, but not always,

the result of a Board resignation, changes in

the Company’s activities or strategic focus, or

updated corporate governance requirements

concerning Board or Committee composition.

The appointment process for a Board role

starts with the appointment of an

independent search firm by the Committee,

and the creation of a role specification which

it then approves. This highlights necessary

skills and areas of competence required.

Following further Committee discussion, a

shortlist of candidates is produced, all of

whom are interviewed by Board members.

Following consideration of feedback provided

from those interviews, the Committee then

identifies its preferred candidate for Board

approval. The process varies slightly for

Nomination Committee

report continued

and assurance, which offer guidance,

direction, oversight and challenge at the

appropriate level.

• The third line of defence, provided by Group

Internal Audit, gives an independent view of

the effectiveness of the risk management

and internal control processes. It reports to

the Audit Committee to ensure

independence from Management.

The Board reviews the operational

effectiveness of the risk management model

by directing the reinforcement of the

processes that underpin it and by making

sure it is embedded across all levels of the

organisation. For example:

• The Schedule of Matters Reserved for the

Board ensures that the Directors properly

address all significant factors affecting

Group strategy, structure, financing

and contracts.

• The Board and Executive Committee

consider the principal risks, which are

the barriers to achieving the Board’s

Strategic Priorities.

• The Group Risk Committee challenges the

effectiveness of the principal risk mitigations.

• The Group Risk Committee considers each

principal risk in-depth at least once a year,

by receiving reports from the risk owner.

• The Group Risk Committee’s deliberations,

along with the current status of each

principal risk, are reported to the Audit

Committee and the Board.

• The principal risk list is reviewed once a

year and leverages a bottom-up annual

operational risk review, where operational

management identify their everyday risks.

• The Group Compliance Steering Committee

assesses observance of laws and regulations,

and reports to the Group Risk Committee.

• The bid governance process reviews bids or

major changes to existing contracts, and

aligns with the Group’s risk appetite and

risk management process.

The model and process comply fully with the

UK Corporate Governance Code and the

Financial Reporting Council’s Guidance on risk

management, internal control and related

financial and business reporting.

Recent enhancements to the risk framework

and processes, have now been embedded

and include:

• Risk owners report to the quarterly meetings

of the Group Risk Committee, ensuring that

they consider risk appetite, non-financial

risks and potential risk triggers.

• While all principal risks are reviewed at

least annually by the Group Risk Committee,

higher-level risks are considered more

frequently. Contract risks, cyber risk and

data privacy are reviewed bi-annually while

acquisition integration risk is considered at

each meeting.

• The Compliance Steering Committee, which

reports to the Group Risk Committee, has

completed the rollout of a Compliance

Management System to assess risk and

compliance more thoroughly.

• Monitoring the effects of the Covid-19

pandemic for its potential impact on our

business, specifically in relation to the

health and wellbeing of our employees, our

global supply chain and in changing

customer requirements.

The Group has detailed business interruption

contingency plans for all key sites. These are

regularly tested, in accordance with an

agreed schedule.

Internal control

The Board has overall responsibility for

maintaining and reviewing the Group’s

systems of internal control, and ensuring that

the controls are robust and enable risks to be

appropriately assessed and managed. The

Group’s systems and controls are designed to

manage risks, safeguard the Group’s assets

and ensure information used in the business

and for publication is reliable. This system of

control is designed to reduce the risk of failure

to achieve business objectives to a level

consistent with the Board’s risk appetite,

rather than eliminate that risk, and can

provide reasonable, but not absolute, assurance

against material misstatement or loss.

The Board conducts an annual review of the

effectiveness of the systems of internal

control, including financial, operational and

compliance controls and risk management

systems. In the Board’s opinion, the Group

complied with the Code’s internal control

requirements throughout the year. Where

material weaknesses or opportunities for

improvement are identified, changes are

implemented and monitored.

All systems of internal control are designed to

identify continuously, evaluate and manage

significant risks faced by the Group. The key

elements of the Group’s controls are

detailed below.

Responsibilities and authority structure

As discussed above, the Board has overall

responsibility for making strategic decisions.

There is a written schedule of Matters

Reserved for the Board.

The Group Executive Committee meets

formally on a quarterly basis and, more

informally, on a fortnightly basis, to discuss

day-to-day operational matters. With the

Group Operating Model in place across all of

the Group’s main operating entities, ultimate

authority and responsibility for operational

governance sits at Group level.

Risk management

The Board is responsible for establishing a

framework of prudent and effective controls,

which enable the Company’s risks to be

assessed and managed.

The Board has carried out a robust

assessment of the principal and emerging

risks facing the Group, including those that

threaten its business model, future

performance, solvency or liquidity. Please

refer to pages 80 to 85 for further information

on the Group’s principal risks and

uncertainties, including how they are being

managed and mitigated.

Executive and senior Management have

primary responsibility for identifying and

managing the risks the Group faces. A

comprehensive risk management programme

has been developed and is monitored by the

Group Risk Committee, which is chaired by the

Group Finance Director and whose members

include the Group Head of Internal Audit and

Risk and senior operational managers from

across the Group. Throughout the year each

meeting has been attended by at least one

independent Non-Executive Director as a

guest of the Chair of the Committee.

The Board sets the Group’s risk appetite and,

through the Audit Committee, reviews the

operation and effectiveness of the Group’s

risk management activities. The Board

periodically reviews the Group’s strategic

risks and its key mitigation plans and, through

the Audit Committee, receives regular reports

from the Group Risk Committee.

As a sales-led and customer-focused

organisation, effective risk management

processes are vital to the Group’s continued

success. Therefore, the Board continues to

apply a robust risk management and

governance model to provide assurance over

the principal risks that might affect the

achievement of the Group’s strategic

priorities. These strategic priorities are

focused on improving the Services business

and maintaining the longevity of the Group’s

customer relationships, which in turn rely

heavily on the contribution made by the

Group’s customer-facing staff and those

involved in Services innovation and design.

The Group’s risk management approach

recognises this, ensuring that risks are

identified and mitigated at the appropriate

level, leaving individuals empowered to make

their vital contributions.

The Group’s model uses the well-defined three

lines of defence methodology:

• The first line of defence consists of

operational management, who own the

risks and apply the internal controls

necessary for managing risks day-to-day.

• The second line of defence comprises

functions such as internal compliance

Risk and internal control

Governance Report

Annual Report and Accounts 2021

appropriate, data for past periods. The results

and explanations for variances are regularly

reported to the Board and appropriate action

is taken where variances arise.

Management and specialists within the

Finance Department are responsible for

ensuring that the Group maintains

appropriate financial records and processes.

This ensures that financial information is

relevant and reliable, meets applicable laws

and regulations, and is distributed internally

and externally in a timely manner.

Management reviews the Consolidated

Financial Statements, to ensure that the

Group’s financial position and results are

appropriately reflected. The Audit Committee

reviews all financial information that the

Group publishes.

Centralised treasury function

The Board has established and regularly

reviews key treasury policies, which cover

matters such as counterparty exposure,

borrowing arrangements and foreign

exchange exposure management. The Group

Treasury Function manages liquidity and

borrowing facilities for customer-specific

requirements, ongoing capital expenditure

and working capital. The Group Treasury

Function reports to the Group Finance

Director, with regular reporting to the

Audit Committee.

The Group Treasury Committee enhances

Management oversight. It is chaired by the

Group Finance Director and also comprises

the Group Financial Controller, the Group Head

of External Reporting and the Group Head of

Tax and Treasury. It is responsible for the

ongoing review of treasury policy and

strategy, and for recommending any policy

changes for Board approval. The Committee

approves, on an ad hoc basis, any treasury

activities which are not covered by existing

policies or which are Matters Reserved for the

Board, and also monitors hedging activities

for effectiveness.

Compliance policies

The Group has a number of compliance

policies, including those relating to the

General Data Protection Regulation, Business

Ethics and Anti-bribery and Corruption. Any

breach of these policies by an employee is

a disciplinary matter and is dealt with

accordingly. The internal control regime is

supported by a whistleblowing function, which

is operated by an independent third party.

Audit Committee and the auditor

For further information on the Company’s

compliance with the Code provisions relating

to the Audit Committee, Group auditor and

Internal Audit, please refer to the Audit

Committee report on pages 99 to 105.

The Group operates defined authorisation and

approval processes throughout its operations.

Access controls continue to improve, where

processes have been automated to secure

data. The Group has developed management

information systems to identify risks and

enable the effectiveness of the systems of

internal control to be assessed. Linking

employee incentives to customer satisfaction

and profitability reinforces accountability

and encourages further scrutiny of costs

and revenues.

Proposals for capital expenditure are

reviewed and authorised, based on the

Group’s procedures and documented

authority levels. The cases for all investment

projects are reviewed and approved at

divisional level. Major investment projects are

subject to Board approval, and Board input

and approval is required for all merger and

acquisition proposals.

Planning and reporting processes

Each year, senior Management prepares or

updates the three-year strategic plan, which

the Board then reviews. The comprehensive

annual budgeting process is subject to Board

approval. Performance is monitored through

a rigorous and detailed financial and

management reporting system, through

which monthly results are reviewed against

budgets, agreed targets and, where

Board and Committee evaluation

The Board recognises the importance of

continually monitoring its performance,

and that of its Committees. It therefore

undertakes an annual review of its own and

its Committees’ performance and

effectiveness, with an external evaluation

being completed on at least a triennial basis,

in accordance with the Code. Between

December 2021 and January 2022, the

Company Secretary facilitated an internal

evaluation looking at areas of Board

responsibility such as strategy, risk

management and governance. The evaluation

also reviewed wider Board processes,

including the quality of information provided

to it in advance of meetings, how well its

annual agenda covers key issues, the way in

which the Board makes decisions through

effective and constructive discussion and

debate, and how the Non-Executive Directors

constructively challenge and scrutinise the

performance of the Executive Directors,

amongst others.

The review took the form of a series of tailored

online questionnaires, covering the Board and

each Committee. The Chairs of the Board and

the Committees were able to review and

shape both the questionnaire and the list of

non-Board respondents, to make best use of

the process. The questionnaire responses

were collated and analysed, before inclusion

in a report to the Board. In February 2022, the

Chair presented the results of the evaluations

and led a discussion of the key findings and

the implications for the Board’s development.

In addition, the Chair’s performance was

considered by the Senior Independent

Director, following one-to-one discussions

with each of the remaining Directors.

Her report was shared with the Company

Secretary, and the feedback provided to the

Chair for consideration. The Chair considered

the performance of each Director, and the

contribution that they made to Board-related

activities, including its discussions and

decision-making, during the year.

The review concluded that the Board, its

Committees and individual Directors were

performing effectively, found there to be open

and constructive dialogue between Board

members, and confirmed that a sound

relationship between Executive and Non-

Executive Directors existed, which allowed

constructive challenge to take place between

members. The Board believes that it has

a good mix of skills and experience and

that members work well together to achieve

objectives. The Board is also satisfied that

it sufficiently considers long-term

consequences when making decisions,

and that the Group has a clearly articulated

strategy. Following the review, it was agreed

that increased time will be allocated within

the Board’s annual agenda to rolling ‘deep

dive’ reviews of the Company’s principal risks.

It was further agreed that the Board’s views

on the principal risks, and associated

likelihood and impact of risk, would be

communicated in greater detail to the Group’s

Risk Committee, in order to frame discussions

at its quarterly meetings. The Board also

requested that there be a continued focus

on the quality and form of information

provided to it, underpinned by concise and

focused pre-reading for members, and a

focus within presentations given by senior

Management to direct the Board towards

key points for discussion.

The review of the Chair’s performance by the

Senior Independent Director found that he

continued to lead the Board effectively,

encouraging a culture of openness and

debate amongst members.

Risk and internal control

continued

Audit Committee report

On behalf of the Board, the

Committee is responsible for

overseeing the effectiveness

of the Group’s systems of

internal control and the risk

management framework.

Pauline Campbell

Chair of the Audit Committee

Pauline Campbell

Chair of the

Audit Committee

Composition of the Committee

On 30 September 2021, Minnow Powell retired

from the Board and as Chair of the Audit

Committee. Pauline Campbell, who joined the

Board on 16 August 2021, was afforded a full

induction to the Board and the Company and

received a handover from Mr Powell during the

overlap of their tenure. All activities below,

noted as carried out the Chair, refer to either

Mr Powell or Ms Campbell depending on the

timing of the event through the annual Audit

Committee cycle.

As at 31 December 2021, the Audit Committee

(the ‘Committee’) comprised the four

independent Non-Executive Directors. All

members are considered to be appropriately

qualified and experienced to fulfil their role

and allow the Committee to perform its duties

effectively. For the purposes of Code Provision

24, one member of the Committee, Pauline

Campbell, is considered to have recent and

relevant financial experience. The Committee

notes the requirements of the Code and

confirms that, having considered the

requirements against feedback provided

through the Board and Committee

effectiveness review, the Committee, as a

whole, has competence relevant to the sector

in which the Company operates. Further details

of specific relevant experience can be found in

the Directors’ biographies on pages 88 to 89.

Meetings of the Committee

The Committee met four times during 2021.

Meetings are attended routinely by the Chair

of the Board, Group Finance Director, Group

Head of Financial Reporting, Group Head of

Internal Audit & Risk Management and the

external auditor. The Company Secretary acts

as secretary to the Committee. The meetings

cover a standing list of agenda items, which is

based on the Committee’s Terms of Reference,

and consider additional matters when the

Committee deems it necessary.

In addition to the Committee meetings, the

Chair also meets privately on occasion with

members of Management during the year, to

discuss the risks and challenges faced by the

business as well as accounting and reporting

matters and, importantly, how these are

being addressed. On two occasions during the

year, the Committee met separately with the

external auditor and the Group Head of

Internal Audit & Risk Management, without

Management present. From time to time, on

an ad hoc basis, members of the Committee,

including the Chair, also attend meetings of

the Group Risk Committee.

The Chair remains satisfied that the flow of

information to the Committee is appropriate

and provided in good time, to allow members

to review matters due for consideration at

each Committee meeting. The Committee is

also satisfied that meetings were scheduled

to allow adequate time to enable full and

informed debate.

Principal responsibilities of the Committee

The Committee’s main responsibilities during

the year, as set out in the Code, were to:

• monitor the integrity of the Company’s

Financial Statements and any formal

announcements relating to the Company’s

financial performance, and to review

significant financial reporting estimates

and judgements contained therein;

• provide advice on whether the Annual Report

and Accounts, taken as a whole, is fair,

balanced and understandable, and provides

the information necessary for shareholders

to assess the Company’s position and

performance, business model and strategy;

• review the Company’s internal financial

controls and internal control and risk

management systems;

• monitor and review the effectiveness of the

Company’s Internal Audit function, including

approving the internal audit plan;

• make recommendations to the Board about

the appointment, reappointment and

removal of the external auditor, and, where

necessary, conduct the tender process;

• approve the external auditor’s

remuneration and terms of engagement;

• review and monitor the external auditor’s

independence and objectivity;

• review the effectiveness of the external

audit process, taking into consideration

relevant UK professional and regulatory

requirements;

Current members Role

Attendance

record

1. Pauline Campbell (Chair from 30 September 2021) Non-Executive Director 2/2

2. Rene Haas Non-Executive Director 3/4

3. Ljiljana Mitic Non-Executive Director 4/4

4. Ros Rivaz Non-Executive Director 4/4

Former member

5. Minnow Powell (Chair until 30 September 2021) Non-Executive Director 3/3

* Rene Hass was unable to travel from the United States to attend the meeting of the Audit Committee on the morning of

9 December 2021 due to Covid-19 travel implications and could not join by video conference due to incompatible time

zones with a suitable alternative date unable to be found. Rene had a briefing call with the Chair prior to the meeting to

discuss the agenda and papers ensuring that his views were able to be considered.

Governance Report

Annual Report and Accounts 2021

indicators. As a result, we have classified

several of these deals as being on an agency

basis, concluding that the fee received should

be booked as net revenue.

In addition to these existing treatments,

Management has performed an initial review

of the tentative agenda decision of the

International Accounting Standards Board’s

(IASB) IFRS Interpretations Committee that

was released on 1 December 2021. The

tentative agenda decision considered the

specific recognition criteria for standalone

software licences resold by value-added

resellers. Management has produced an initial

analysis of the impacts of the agenda decision

on the Group, outlining the potential eventual

change to agent revenue recognition for the

majority of our software and resold services

Technology Sourcing business lines that are

currently recognised as principal.

The Committee reviewed the initial

accounting memorandum produced by

Management, supported its proposed

programme of further investigatory analysis

in this area and concluded that, if the

tentative agenda decision is finalised in a

manner reflective of the current position,

the change to future revenue recognition

policies was appropriate.

Technology Sourcing revenue recognition

and ‘bill and hold’ cut-off procedures

The nature of the business leads to a

significant amount of sales orders around

year end with high volumes of ‘bill and hold’

transactions. Judgement is required to

determine if the appropriate criteria have

been met to recognise a ‘bill and hold’ sale.

There remains some risk that revenue is

recognised in the incorrect accounting period

if the judgements are not made correctly.

Management has an established set of criteria

to allow recognition of revenue, which are

applied throughout the business and designed

to ensure compliance with International

Financial Reporting Standards.

The Audit Committee supported the auditor’s

continued focus on testing Technology

Sourcing revenue cut-off, particularly in

regard to ‘bill and hold’ arrangements

where customers purchase inventory that

remains in our Integration Centers following

revenue recognition.

In addition, there are a number of Professional

Services contracts where revenue is

recognised based on fulfilling the customers’

requirements in accordance with contract

terms. Management highlights to the

Committee any contracts that may be of

interest, including the process by which such

contracts are identified.

The Committee noted that no errors with a

material impact on reported profitability were

found as a result of the auditor’s work in the

area of Technology Sourcing. Management will

consider process improvements as part of the

change expected in the area of agent versus

principal revenue recognition described above.

Risk of impairment of FusionStorm and Pivot

goodwill and acquired intangible assets

The valuation of the goodwill and acquired

intangible assets is assessed annually. The

size and nature of the balances, coupled with

the inherent complexity of the underpinning

valuation methodology, results in a high degree

of estimation uncertainty with significant

judgement required in determining and

applying assumptions to assess the fair value.

Management reviewed the value of goodwill

and acquired intangibles in the FusionStorm

and Pivot cash-generating units (CGU). This

review assessed factors which could affect

the recoverability of these assets and

whether they could give rise to an impairment.

This included:

• assessing the discount rates used in the

cash flow forecasts;

• referencing the discount rates used by

comparable companies;

• comparing the projected long-term growth

rates to externally derived data;

• considered management’s track record in

forecasting versus actual outcomes; and

• reviewing sensitivity analysis on the

assumptions noted above.

Management’s review highlighted the inherent

uncertainty involved in forecasting and

discounting future cash flows, which are the

basis of the assessment of the value-in-use.

Management’s assumptions, which are based

on the Board’s approved budget for 2022 and

the Plan for 2023 and 2024, included that

FusionStorm would be integrated with Pivot to

form a new CGU being Computacenter USA

during this timeframe.

The Committee considered the outcome of

Management’s assessments including the

sensitivity of the outcome to changes in key

assumptions. The Committee, further,

reviewed the adequacy of the Group’s

disclosures, including the key estimates and

judgements related to the carrying amount.

The Committee considers that the carrying

value of the goodwill and acquired intangible

assets remains supported.

FusionStorm and Computacenter NS ERP

Migration and Transition

During the year, the FusionStorm business

within Computacenter North America and the

Computacenter NS business within

Computacenter France transitioned to the

Group’s primary Enterprise Resource Planning

(ERP) system, continuing the programme of

integration following acquisition.

• develop and implement policy on engaging

the external auditor to supply non-audit

services, ensure there is prior approval of

non-audit services, consider the impact

this may have on independence, take into

account the relevant regulations and

ethical guidance in this regard, and report

to the Board on any improvement or action

required; and

• report to the Board on how it has

discharged its responsibilities.

Immediately following each Committee

meeting, the Chair reports to the Board on

the Committee’s activities and how it is

discharging its responsibilities as set out in

its Terms of Reference, which can be found

on the Company’s website at investors.

computacenter.com.

Activities of the Committee

The Committee’s activities during the year,

which are based on its Terms of Reference,

are set out below:

Key estimates, judgements and current

financial reporting standards

The Committee reviewed the integrity of the

Group’s Consolidated Financial Statements

and, in doing so, considered the following key

estimates and judgements. In reviewing these

matters, the Committee also took account of

the views of the external auditor, KPMG LLP.

Technology Sourcing agent versus principal

revenue recognition

Since the finalisation of the revised Group

revenue recognition accounting policies and

adoption of IFRS 15 on 1 January 2018,

Management has continued to keep under

review the nature of the finely balanced

judgement on whether certain lines of

Technology Sourcing revenue are to be

recognised on an agent versus principal basis.

On occasion, on a deal-by-deal basis,

Management may conclude that a particular

deal is to be recognised as agent rather than

as principal. Typically, technology partners

and customers approach us with an

opportunity where the technology partner is

taking the contract and performance risks,

sets the selling price and uses Computacenter

as a pass-through agent in the channel, to

transact the deal for a set fee. Since adoption

of IFRS 15, these have been primarily large

software deals where there is no ongoing

obligation of service on us following the

transaction. We have no say in the pricing or

selection of the product and are merely

standing in the sales channel between the

technology partner and customer, for the

pre-determined fee. Based on the facts and

circumstances of each deal, we assess how

the terms and conditions of the deal are

applied in practice against our revenue

recognition policies, by reviewing the

weighting applied to the agent/principal

Audit Committee report

continued

100

Group’s revenues being impacted by supply

shortages. This sensitivity analysis models

a continued market downturn scenario,

with slower than predicted recovery

estimates, for some of our customers

whose businesses have been affected by

Covid-19 and a similar downturn occurring

for the remainder of our customer base.

A further impact on the Group’s Technology

Sourcing revenues through 2022 from

possible ongoing technology partner-related

supply shortage issues has also been

included in the sensitivity analysis.

• Forecast high and low points of cash

generation.

• Availability of Management to implement

leveraging or factoring to offset the impacts

of the severe downsides modelled above.

The Committee considered the assessment

described above, together with the extended

Going Concern disclosures included within the

‘basis of preparation’ note to the Financial

Statements in the Annual Report and Accounts

and advised the Board on its view. The

Committee considered whether the going

concern basis of preparation continued to be

appropriate and provided recommendations

around its adoption to the Board, with which

the Board concurred. The statement and

explanation from the Directors can be found

within the Strategic Report on page 78 and the

Basis of Preparation with the Notes to the

Consolidated Financial Statements on page 145.

Viability Statement

The Code requires the Directors to explain in

the Annual Report and Accounts how they

have assessed the prospects of the Group,

taking into account the Group’s current

position and principal risks, over what period

they have done so and why they consider that

period to be appropriate. The Directors are

further required to state whether they have a

reasonable expectation that the Group will be

able to continue in operation and meet its

liabilities as they fall due over the assessment

period they have chosen, drawing attention

to any qualifications or assumptions as

necessary. This requirement is known as

a Viability Statement.

Following review by the Group Risk Committee,

Management presented its conclusions to

the Audit Committee. These included a

recommendation of the appropriate period

for the assessment of viability that is based

on the nature of the Group’s business model

and its strategic time horizon, coupled with

short-term macro-economic environmental

impacts. Management produces financial

forecasts for the three-year period including

an assessment, reviewed by the Group Risk

Committee, of how these forecasts would be

affected by a realistic concurrence of the

Group’s principal risks and the estimated

impact of such a concurrence.

Management’s view is that amortisation

of intangible assets is non-cash and is

significantly affected by the timing and size of

acquisitions, which affects understanding of

the Group and Segmental operating results.

The Committee considered the nature and

quantum of items disclosed as exceptional or

as other adjusting items that are excluded

from the Group’s adjusted

profit before tax,

and other alternative performance measures,

in the Group’s 2021 Annual Report and

Accounts. The Committee concluded that

the presentation of adjusted

profit was

adequately explained, was intended to provide

clarity on performance and has sufficient

equal prominence with statutory profit.

Going concern basis for the Consolidated

Financial Statements

Management prepared a paper that provided

input to the Board’s assessment of whether it

is appropriate for the Group to adopt the going

concern basis in preparing Consolidated

Financial Statements, at both the half year

and full year. To do so, Management reviewed

the Group’s financial plans and its liquidity,

including its cash position and committed

bank facilities. It also considered the Group’s

financing requirements in the context of

available committed facilities and reviewed

forecasts concerning trading performance,

which had been discussed and approved at

the 9 December 2021 Board meeting

In making its assessment Management

assessed factors which could affect the

modelling of the Group’s financial plans and

its impact on the Going Concern assessment.

This included:

• Key financial performance forecasts for the

next 12 months and the predicted impact

on cash generation.

• Supporting models with rigorous downside

sensitivity analysis, which involves flexing a

number of the main assumptions

underlying the forecasts.

• Further downside scenario testing where the

potential impact of the principal risks and

uncertainties are applied to the forecasts.

• Management’s assessment included only

those risks and uncertainties that, individually

or in plausible combination, would threaten

the Group’s business model, future

performance, solvency or liquidity over the

assessment period and which are considered

to be severe but reasonable scenarios. It also

takes into account an assessment of how

the risks are managed and the effectiveness

of any mitigating actions.

• For the current year, the primary downside

sensitivity relates to a modelled, but not

predicted, severe downturn in the Group’s

revenues, beginning in 2022, simulating a

continued impact for some of our customers

from the Covid-19 crisis together with the

Implementation of the ERP system has

allowed Management better visibility of the

operations and results of the business and

will yield ongoing synergistic benefits from

the commonality of approach across the

primary geographies.

In order to provide insight into the integrity

of information that may become part of the

Annual Report and Accounts, Management

outlined the implementation programme to

the Committee prior to commencement and

provided reports on the progress of the

implementation of the transition. Following

the cutover to the ERP, the Committee was

updated on the reconciliation of the legacy

system to the ERP, including issues detected,

resolution programmes and ongoing

operational impacts. The Committee is

satisfied that there are no unreconciled

differences, or other financial items that

will/would impact the Group’s reporting.

Acquisition accounting

During 2020, the Group acquired Pivot, a large

Technology Sourcing reseller in the United

States and Canada, and a portion of the BT

Services French business. The initial accounting

for the acquisitions was determined, by

Management, provisionally at the end of the

2020 reporting period and the Committee

reviewed the final position close to the

anniversary of the acquisition. Management

considers the accounting for the acquisitions

as now complete, which was presented to the

Committee. There were no changes to the fair

values or the book values at acquisition for

either entity.

Exceptional and other adjusting items

There were no exceptional items raised by

Management for disclosure outside its

alternative performance measures during

the year.

Management considered the presentation of

adjusted

profit in the first half of the Annual

Report and Accounts, after taking account of

the European Securities and Markets Authority

Guidelines on Alternative Performance

Measures, which promote the usefulness and

transparency of such measures. Management

remains satisfied with the reconciliation

between statutory and adjusted

measures

that the Group has presented since the 2015

Interim Report, and the level of disclosure which

explains both the differences between these

measures and the reasons for the differences.

Management continued to exclude the

amortisation of acquired intangible assets,

and the tax effect thereon, as an ‘other

adjusting item’ outside of adjusted

profit

after tax in the Group’s 2021 Annual Report

and Accounts. Management highlighted that

this charge had materially increased with the

acquisition of FusionStorm and Pivot.

101

Governance Report

Annual Report and Accounts 2021

Management considered additional

contingencies within the forecast, due to a

market downside sensitivity scenario that

continues throughout the assessment period

and relates to a modelled, but not predicted,

severe downturn in Group revenues, beginning

in 2022 as described within the Going Concern

analysis above. These downside scenarios

continue the assessment of the risks for

Going Concern throughout the assessment

period with compounding impacts to cash

flow as a result.

The financial forecasts build on the assumptions

used for the Going Concern assessment and

extend this over the three-year period.

Management includes longer-term sensitivity

analyses that ranges the modelled downturn

in the market across a number of factors,

including working capital usage, profitability,

dividend payments and share repurchases.

The analyses also include an assessment of

actions that Management could take to

support the balance sheet of the Company

in the event of the worst-case scenarios.

Following consideration of Management’s

assessments and conclusions, the Committee

advised the Board that it could continue to set

the period of assessment for the Viability

Statement at three years and that it could

make the statement required for the

assessment period without qualification.

The statement and explanation from the

Board can be found within the Strategic

Report on pages 78 to 79.

Parent Company investment in subsidiaries

carrying value and distributable reserves

Investments in subsidiaries are the primary

asset on the Parent Company Balance Sheet.

The Committee considers the carrying value

of these investments annually or when an

indicator of impairment is identified, as any

impairment of these investments would

reduce the Company’s distributable reserves.

Management prepared an analysis to support

the carrying value of the investments in

subsidiaries held by the Parent Company,

including assessing the cash flow forecasts

and future trading assumptions of each

subsidiary. No impairment of carrying value in

the investment in subsidiaries was identified

during the year. The Committee considered

Management’s assessments and remains

satisfied that the carrying value of each

subsidiary remains appropriate.

Management assessed the Company’s

distributable reserves, prior to the declaration

of both the interim and final dividends in

respect of the reporting period, to ensure that

sufficient reserves were legally available for

distribution. Further, Management modelled

the medium-term forecasts for distributable

reserves, ensuring that the Board’s dividend

policy could remain supported by the

generation of distributable reserves within

the Parent Company. The Committee received

a presentation of Management’s conclusions

and reported to the Board on the

appropriateness of the dividend payment with

regards to the available distributable reserves.

Taxation

Management prepared papers documenting

the Tax Strategy and the Tax Policy of the

Company. These papers document the

policies, processes and controls relating to

the Group’s tax functions and the Company’s

Tax Strategy, which can be found on the

Company’s website: computacenter.com.

The purpose of the Tax Strategy is to

communicate the policy for the management

of tax within Computacenter. It is important

to ensure that consistent and effective tax

standards are maintained across the Group

as tax, if poorly managed, can have a

significant cash and profitability impact on

the Group’s business activities, as well as

cause reputational damage.

Management presented to the Committee on

all aspects of business taxation in all territories

in which the Group is currently operating,

excluding environmental taxes. The Group Tax

Strategy and Policy is subject to approval by

the Board annually following its consideration

by, and advice from, the Committee.

Management prepared the calculation of the

tax liability of the Group, including uncertain

tax positions, and assessed the recognition

criteria, for potential deferred tax assets

relating to jurisdictions with significant

carried forward tax losses. Future forecasts,

changes to local taxation rates, and potential

changes to local tax structures were taken

into account in determining the Group’s tax

rate assessment. Management made

recommendations for the consideration of

the Committee for the identification of tax

liabilities, assets and the tax rate being

disclosed in the accounts. The Committee was

satisfied that tax accounting is supported.

Improvements to general financial reporting

Management continues to review its

accounting policies and reporting in light of

changes, general trends to improve financial

reporting and observations from the auditors.

During the period the Committee received

recommendations for consideration from

Management on a range of topics focused on

improving the quality of the Group’s financial

reporting. These included:

• Litigation-related contingent liability

disclosures.

• Ongoing implementation of a Group-wide

Accounting Policy Handbook, to ensure

consistency in the application of the

Group’s primary accounting policies.

• The improvement of IFRS 9 Expected Credit

Loss provisioning methodologies and

disclosures.

• Accounting treatment for certain one-off

commercial contracts with particularly

unusual or non-recurring terms.

• The implementation of recommendations

contained within advisory publications

from the FRC relating to, amongst others,

best practice disclosures for revenue.

• Consideration of the latest minutes of the

IFRS Interpretations Committee with

regards to revenue recognition for

software sales and the impact on future

reported revenues for the Group.

The Committee approves of Management’s

effort to continually improve and is satisfied

with changes made or proposed relating to

the items listed.

Regulatory and legal compliance

Having been requested to do so by the Board

in accordance with Code Provision 27, the

Committee also advises the Board on whether

the Annual Report and Accounts, taken as a

whole, is fair, balanced and understandable

and provides the information necessary for

shareholders to assess the Group’s position

and performance, business model and

strategy. The Committee sought assurance

as to the review procedures performed by

Management, to support the Board in making

this statement. These include clear guidance

issued to all contributors to provide a

consistent approach and a formal review

process, to ensure that the Annual Report and

Accounts are factually correct and reflective

of material matters that have been discussed

by the Board throughout the year and includes

all relevant information. Following a review,

the Committee advised the Board that

appropriate procedures had been applied.

Management prepared an analysis of the

Company’s compliance with the provisions of

the Corporate Governance Code and did not

identify any deficiencies or breaches. The

Committee considered the analysis presented

within the Annual Report and Accounts.

Audit Committee Report

continued

102

Internal control oversight

Periodically the Committee received reports

on the operation of internal controls from

various Group functions. These included:

• The implementation of agreed

improvements on the compliance and

control environment within recently

acquired entities including FusionStorm,

Pivot and Computacenter NS. Internal Audit

reviewed the control environment of

material acquired entities and the ongoing

integration plans of the recent acquisitions,

including the provision of the Group’s

Enterprise Resource Planning systems and

the wider internal control, risk

management and compliance frameworks,

including items such as whistleblowing

and GDPR.

• A report from the Group Information

Assurance (GIA) function on its role, which

continues to be a key part of the control

framework for data security and cyber

defence, and how it fits into the overall

control structures of the Company within

the wider risk management framework.

GIA reported on the programme of

enhancements for the Cyber Defence

Center and cyber security. Where cyber

incidents, attacks and breaches are

inevitably detected by the GIA, it reports to

the Committee on the mitigations and

outcomes of any investigation, including

plans for remediation and improvements.

• Treasury Reporting, Policy and Controls

including the Group Treasury Strategy &

Policy, Transactional FX Strategy and Policy

and activities of the Treasury Committee

which retains operational oversight.

• Trade receivables control environment, to

assess the heightened risk of customer

defaults due to the Covid-19 pandemic and

the associated collection risk.

• Trade payables and other creditors control

environment, to review procedures and

payment timeliness analysis.

• Annual survey results, where all members

of the Group Executive and other key senior

Management conduct a controls self-

certification exercise and the control

environment is reviewed and graded.

• Export controls compliance.

• The effectiveness of controls over bid

management and contract reporting

• Updates on litigation matters.

Whistleblowing

The Committee confirms that it is satisfied

that, as at the date of this report,

arrangements are in place to ensure that

employees are able, in confidence, to raise any

matters of concern, and for the proportionate

and independent investigation of such

concerns, including assessment of the

financial impact and any appropriate follow-up

action. During the year, the Committee was

satisfied that investigations and follow-up

actions were appropriate. As at the date of this

report, all of the Group’s operating entities,

including the recent acquisitions of Pivot and

BT Services France, had access to the same

whistleblowing platform.

The effectiveness of the Internal

Audit function

The Group has an Internal Audit function

which reports to the Chair of the Committee,

and also has direct access to the CEO. Its key

objectives are to provide the Board, the

Committee and senior Management with

independent and objective assurance on risks

and the related mitigating controls, and to

assist the Board in meeting its corporate

governance and regulatory responsibilities.

A formal audit charter guides the function’s

work and procedures and was updated during

the year.

The Board, through the Committee, has directed

the Internal Audit department’s work towards

areas of the business that are considered to

be the highest risk. The Committee approves

a rolling audit programme, ensuring that all

significant areas of the business are

independently reviewed over, approximately,

a four-year period. The programme and the

audit findings are assessed continually,

to ensure they take account of the latest

information and, in particular, the results of

the annual review of the effectiveness of

internal control and any shifts in the focus

areas of the various businesses.

Each year, the Committee reviews the

effectiveness of the Internal Audit

department and the Group’s risk management

programme. The formal review typically

consists of an evaluation of Internal Audit’s

activities by members of the Committee

and managers across the business who

have been subject to audit during the year.

The assessment normally covers areas such

as departmental organisation, business

understanding, skills and experience,

communication and performance.

The Committee received an update from

the Group Head of Internal Audit & Risk

Management at each meeting during the year.

The updates covered current audit activities

and the results of completed audits. The Chair

met the Group Head of Internal Audit & Risk

Management on a number of occasions during

the year, to be updated on the function’s

activities. The Committee kept Internal Audit’s

staffing levels under review throughout 2021.

Management prepared a presentation on the

BEIS Report on Governance and Audit Reform

and provided a response on behalf of the

Company for the consideration of the

Committee. Management continued to

monitor regulatory developments in this area

and updated the Committee as required.

The effectiveness of internal controls and

of the risk management framework

On behalf of the Board, the Committee is

responsible for overseeing the effectiveness

of the Group’s systems of internal control and

the risk management framework. The Group

Risk Committee (GRC) meets each quarter to

review the key risks facing the business.

These are identified, and their likelihood and

impact are assessed, within the Group’s ‘Risk

Heat Map’. They are then reviewed in

conjunction with accompanying risk

mitigation plans. The GRC minutes, or a

summary thereof, are circulated to the

Committee for review, with any matters of

note highlighted and explained to the

Committee by the GRC Chair. This includes an

analysis of how the Group’s exposure to these

risks may have moved during the previous

three months and how mitigations to the risks

have been introduced or developed, and also

provides the GRC’s assessment of the

effectiveness of the process. To assist the

Board, the Committee monitors the risk

management processes and reports from

Internal Audit.

Compliance Steering Committee

The Compliance Steering Committee (CSC)

reports to the GRC. It meets quarterly, two

weeks before the GRC, and is chaired by the

Group Compliance Manager. The Group Head of

Legal & Contracting, the Chief People Officer,

the Group Data Protection Officer, the Group

Head of Internal Audit & Risk Management and

the Company Secretary make up the rest of

the CSC. The CSC determines which areas of

law or regulation apply to the Group, assigns

these to members of Management and

identifies levels of compliance and associated

risk, with the aim of ensuring that these are

appropriate to the Group. Critical areas within

the CSC’s remit include anti-bribery and

corruption, whistleblowing, data protection

and export control. The CSC reviews and

promotes major Group internal governance

enhancement initiatives. The Committee

receives regular reports from the CSC on

its activities.

During the year, the Committee reviewed the

CSC’s progress with bringing the entities

acquired by the end of 2020 into the Group’s

compliance framework, noting with

satisfaction that the work was now complete,

with follow-up remote reviews conducted by

Internal Audit to Pivot and CC NS confirming

the efficacy of the implementation.

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Governance Report

Annual Report and Accounts 2021

Rotation of lead audit engagement partner

The lead audit engagement partner for the

year ended 31 December 2021 was Mr David

Neale, who completed his second year in

this role.

During the reporting period, the Company

complied with The Statutory Audit Services

for Large Companies Market Investigation

(Mandatory Use of Competitive Tender

Processes and Committee Responsibilities)

Order 2014.

Effectiveness of the external audit process

The Committee places great importance on

ensuring a high-quality and effective external

audit process. When conducting the annual

review, the Committee considers the

performance of the auditor as well as its

independence, compliance with relevant

statutory, regulatory and ethical standards,

and objectivity. The Committee reviewed the

effectiveness and quality of the external audit

process by:

• reviewing the audit plan, including

identified significant risks and monitoring

changes in response to new issues or

changing circumstances;

• reviewing the planned audit hours of each

component, including hours by audit area

and on IT controls;

• reviewing the audit scope with the lead

audit engagement partner, to ensure

adequate coverage of full-scope audit

components over the Group’s operations;

• understanding the materiality thresholds

adopted by KPMG LLP at each reporting

period, for both the audit of the Group and

its key audit components;

• attending KPMG LLP’s annual ‘Academy Day’

audit planning workshop, which was

attended by senior members of the

worldwide audit team and senior finance

managers from across the Group;

• receiving reports on the results of the audit

work performed; and

• considering the report of the FRC’s Audit

Quality Review team (AQRT) on KPMG LLP.

The Committee reviewed the audit plan for the

acquired entities for the part-year ended 31

December 2021 with KPMG LLP, to ensure audit

coverage was appropriate.

The Committee reviewed the year-end report

to the Committee and discussed it with the

lead audit engagement partner. The Committee

further reviewed the effectiveness of the

external audit process by means of a

questionnaire, which was completed by key

stakeholders and relevant Group Management.

The matters covered by the questionnaire

included the understanding of the business

and its audit risks, the degree of scepticism,

challenges and competency of the KPMG LLP

employees that comprise the audit team.

The results were discussed as a specific

agenda item at the Committee meeting

immediately following the completion of the

questionnaire process, and actions requested

by the Committee to enhance effectiveness

were followed up and continue to be

monitored as appropriate.

The Committee also discussed the report

published by the AQRT into the findings of its

inspections of audits carried out by KPMG LLP.

The Committee is satisfied that the audit team

was aware of the findings and was provided

assurance that the ability of the team to

provide a quality audit was not impaired.

Auditor independence

The Committee places considerable

importance on ensuring the continuing

independence of the Group’s auditor.

This topic is reviewed at least annually with

the auditor, which confirms its independence

to the Committee twice a year. In addition

to the above, the Company paid £0.5 million

(2020: £0.1 million) to Ernst & Young LLP to

perform audit procedures to meet the

requirements as a component auditor on

the Group audit, reporting to KPMG LLP.

The Committee has challenged and approved

the Internal Audit plan and the mapping of

that plan to the Group’s principal risks and

related mitigating controls, as set out on

pages 80 to 85. The plan is kept under review

to reflect the changing needs of the business

and to ensure that new and emerging

business risks are appropriately considered

within it.

Performance of the Committee

The review indicated that the Committee

continues to perform effectively. No

significant issues in the way the Committee

functions were highlighted as being in need of

remediation. The Committee agreed that it

would review the way in which it assesses the

development and performance of the Internal

Audit function. Refer to page 98 for further

details on the evaluation carried out.

The integrity of the Group’s relationship with

the auditor and the effectiveness of the

external audit process

External audit

The Committee oversees the Group’s

relationship with its auditor and makes

recommendations to the Board concerning

the appointment, reappointment and

remuneration of the auditor.

Reappointment of the auditor

Following a review of the external auditor’s

effectiveness and further Committee

discussions, the Committee has

recommended to the Board that it propose

the reappointment of KPMG LLP as the Group’s

auditor, for approval by the Company’s

shareholders at its 2022 AGM. KPMG LLP was

first appointed as the Group’s auditor with

effect from May 2015, following a competitive

tender process. The Committee will continue

to review the performance of KPMG LLP, as set

out below, on an annual basis.

2021

£m

2020

£m

Auditor’s remuneration:

– Audit of the Financial Statements 0.1 0.2

– Audit of subsidiaries 1.7 1.1

Total audit fees 1.8 1.3

Audit-related assurance services including the review of the Interim Report and Accounts 0.1 0.1

Taxation compliance services 0.1 0.1

Total non-audit services 0.2 0.2

Total fees 2.0 1.5

Audit Committee Report

continued

104

Non-audit services

To help maintain the auditor’s independence,

the Committee has a policy regarding the

scope and extent of non-audit services

provided by the Group’s auditor, which is

summarised below.

The auditor is appointed primarily to report on

the annual and interim Consolidated Financial

Statements. The Committee places a high

priority on ensuring that the auditor’s

independence and objectivity is not

compromised either in appearance or in fact.

Equally, the Group should not be deprived of

expertise where it is needed and there may

be occasions where the external auditor is

best placed to undertake other accounting,

advisory and consultancy work, in view of

its knowledge of the business, as well as

confidentiality and cost considerations.

Under the Committee’s non-audit services

policy, the Group auditor should not be

engaged to undertake work which constitutes

a prohibited non-audit service, as defined

under provision 5.167 of the FRC’s Ethical

Standard. Any other non-audit service (a

‘Permitted Service’) must, to the extent that

it is not viewed as ‘trivial’, be approved in

advance by the Committee.

In each case where the Group auditor is

authorised to perform a Permitted Service,

the Committee will assess threats to the

auditor’s independence and the proposed

safeguards to be applied when such services

are carried out. It will also document what

action was taken by the Group auditor,

including appropriate safeguards where

necessary, to ensure that its independence

was not compromised as a result of

performing the Permitted Service. The

Committee will consider alternative suppliers

and competitive tenders and then discuss and

document why it viewed the Group auditor as

the most appropriate party to perform the

Permitted Service.

The Committee monitors compliance with this

policy by monitoring the level of non-audit

work provided by the external auditor,

resulting in non-audit fees being 11.1 per cent

of KPMG LLP’s overall audit fee during 2021

(2020: 15.4 per cent), as set out above.

The Group auditor will, in no circumstances,

undertake non-audit services for the Group to

the extent that the total fee payable by the

Group to its auditor exceeds 70 per cent of the

average annual statutory fee payable by the

Group over the last three consecutive years.

The Group ceased using the Group’s auditor for

all taxation services within the EU during 2017.

During the year, KPMG LLP provided only trivial

non-audit services to the Group. Any trivial

non-audit services provided were subject to

KPMG LLP’s review of the impact on its own

independence against the Group’s non-audit

services policy. None of the trivial engagements

constituted a prohibited non-audit service

and the Committee was satisfied that the

independence of KPMG LLP, as Group auditor,

was not affected.

Pauline Campbell

Chair of the Audit Committee

23 March 2022

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Governance Report

Annual Report and Accounts 2021

Directors’ remuneration

report

The Committee believes

that the amount paid to the

Executive Directors should

be clearly linked to their

performance and the value

delivered to shareholders.

Ros Rivaz

Chair of the Remuneration Committee

Ros Rivaz

Chair of the

Remuneration

Committee

Annual statement from the Chair

of the Remuneration Committee

Dear Shareholder,

On behalf of the Board, I am pleased to present

the Directors’ Remuneration Report for the

financial year ended 31 December 2021.

The report is split into three sections:

• this Annual Statement;

• the Annual Report on Remuneration on pages

114 to 125, which includes information

concerning the amount paid to the Executive

and Non-Executive Directors in respect of

2021 and details of how the Policy will be

implemented in 2022, which will be subject

to an advisory vote by shareholders at the

Company’s 2022 AGM; and

• a summary of the Directors’ Remuneration

Policy, which was subject to a binding vote

by shareholders at the Company’s Annual

General Meeting held on 14 May 2020, has

been included on pages 109 to 113 so that

shareholders can refer to this easily when

reviewing the Annual Report on Remuneration.

The Committee believes that the amount paid

to the Executive Directors should be clearly

linked to their performance and the value

delivered to shareholders. Remuneration for

the Chief Executive Officer (CEO) and Group

Finance Director (FD) is heavily weighted

towards variable pay, which is based on the

achievement of stretching targets set by the

Committee. Broader strategic factors,

including diversity metrics, are included as

part of the overall assessment of performance.

The Committee monitors closely the link

between the amount paid to the Executive

Directors, their performance and the value

delivered to shareholders and how this relates

to the broader workforce. The Committee

considers that the remuneration

arrangements promote the Company’s

long-term success within a suitable risk

framework, are suitably aligned to

shareholder interests and that the actual

remuneration earned by the Executive

Directors continues to be a fair reflection

of their individual and the Group’s overall

performance. The Committee is therefore

comfortable that the Policy has operated as

intended. The Board remains committed to

retaining a remuneration framework which

is simple, transparent and can be understood

by all of the Group’s stakeholders.

Share ownership by Executive Directors is

considered to be a key principle to support

shareholder alignment. The CEO and FD both

have a significant interest in Computacenter

shares, with holdings equivalent to

approximately 58- and 147-times salary

respectively, which is significantly above our

minimum shareholding policy. This ensures

that there is a material alignment of interests

between the Executive Directors and

shareholders. In the Policy approved at the

14 May 2020 AGM, we also introduced a post-

cessation of employment shareholding policy.

Business context – the year under review

2021 saw another year of record growth for

the Company against an operating

environment that remains challenging.

Computacenter’s Executive team has ensured

that the business remained well-managed

and continued to deliver on the Group’s

strategy, generating growth, supporting our

employees, and delivering to our customers

during a period of increased demand over

the year.

During the reporting period, the Group has

performed well in all its core geographical

markets and has seen excellent progress

from the recent acquisitions in North America,

highlighting the ongoing growth opportunity

created by Management. We have again seen

strong growth and improving margins in

Germany, driven by the public sector in

Technology Sourcing and a Professional

Services business operating at full capacity.

UK margins remain strong and have

contributed to an increase in adjusted¹ profit

before tax when coupled with good revenue

growth balanced across our business lines.

As a whole, Technology Sourcing margins have

remained strong whilst Services margins have

continued to improve, driving an increase in

profit as Group revenue reached record highs,

exceeding £6 billion for the first time.

Overall, Group adjusted¹ profit before tax

increased by 27.5 per cent during 2021. Our

adjusted net funds³ significantly increased as

we continued to strengthen our balance sheet

by removing debt, whilst making significant

investments in working capital to continue to

grow the business and support our customers

through the short-term supply disruptions. We

continue to keep costs on a permanently

reduced footing from that seen prior to the

impact of the Covid-19 pandemic. Adjusted¹

diluted EPS, our primary EPS measure,

increased by 31.0 per cent to 165.6 pence per

share (2020: 126.4 pence per share) and our

proposed 2021 full year dividend has

increased by 30.8 per cent to 66.3 pence per

share (2020: 50.7 pence per share).

Our shareholders have enjoyed significant

returns when compared to the wider market,

with shareholder value tripling over the

three-year period from 2019 to 2021. Further

details can be found on page 122.

Remuneration outcomes

The Committee reviewed performance

against the conditions set for the potential

bonus opportunity in 2021. The targets set for

the financial performance measures of profit,

Services contribution growth, cash and costs

were all met in full, resulting in a full payout

for these elements. The bonus also takes into

106

The Committee concluded that, whilst the

overall remuneration framework used

continues to be appropriate, the positioning of

our CEO’s salary no longer reflects the scale

and complexity of the role, the individual

performance delivered and the sustained

performance of the Group. The Committee was

also mindful of the historically conservative

approach to pay for the CEO, including no

salary increase in five of the last 10 years.

The Board believes that Mike Norris, as CEO of

the business since 1994, has played a

fundamental role in Computacenter’s

success, demonstrating exceptional

leadership in delivering significant

shareholder value through targeted

acquisitions and organic growth. The Board

also noted the CEO’s significantly increased

role in mentoring the North American

leadership and driving the cultural and

operational integration of the recently

acquired businesses.

During 2021, the Company invited shareholders

and other stakeholders to provide feedback on

a proposal to increase the salary of the CEO for

2022. I am pleased to report that those who

provided feedback on the proposal have been

largely supportive and that we did not receive

any negative responses.

Following this consultation process, the

Committee determined that the salary of the

CEO would be set at £650,000 with effect from

1 January 2022 (an increase of 13.4 per cent).

This positions the salary of the CEO in line with

practice for the top 50 companies in the FTSE

250, reflecting the scale and complexity of the

business today. Following this adjustment, we

anticipate returning to our regular approach

to salary increases for the CEO being in line

with the broader workforce.

Aside from the proposed approach on salary,

the Committee is not proposing any other

significant changes to the approach on

remuneration for 2022.

The basic salary of the FD will be increased by

2.7 per cent for 2022, consistent with the

average increase for the wider UK workforce.

The Committee intends to keep the salary

positioning of the Group Finance Director

under review.

Award levels under the annual bonus plan for

2022 will be set at 150 per cent and 125 per

cent of salary for the Chief Executive Officer

and Group Finance Director respectively.

Award levels under our Performance Share

Plan will once again be set at 200 per cent of

salary for the Chief Executive Officer and 175

per cent of salary for the Group Finance

Director. PSP awards will continue to be based

on stretching targets set out against our

Earnings per Share and Services Revenue

Growth metrics.

Further details on how our Directors’

Remuneration Policy will be applied for the

2022 financial year are set out on page 125.

Wider workforce

In line with the Committee’s broader

responsibilities, during the year the

Committee reviewed information on broader

workforce pay and practices, as well as the

Company’s gender pay gap reporting. This

information provided important context for

the decisions taken during the year.

We continue to ensure that employees have

an opportunity to share in our success

through our Sharesave plan which we have

operated in the UK and Germany for a number

of years. Following the launch of the most

recent scheme in 2021, the employee

participation rate in these schemes, where

an employee is in at least one active savings

scheme, is 55.0 per cent of all employees in

the UK (2020: 53.0 per cent) and 21.8 per cent

in Germany (2020: 17.3 per cent). This is the

third year of operation within the US business,

with the opportunity to participate extended

to colleagues in our Pivot USA business for the

first time, with an overall participation rate of

16.7 per cent of the combined US workforce.

Committee evaluation

During the year, a review of the Committee

was internally facilitated. The results of this

evaluation have been analysed and reflect

that the Committee continues to be effective

in its role. The latest review has highlighted

the Committee’s intention to continue to

consider the way in which environmental,

social and governance factors are taken into

account for the purposes of remuneration.

Looking ahead

During 2022, the Committee will undertake a

comprehensive review of the Policy for our

Executive Directors, taking into account the

Company’s strategy and values, evolving

shareholder expectations and any

developments in best practice since the Policy

was last approved at our AGM in May 2020. We

look forward to engaging in further dialogue with

shareholders as appropriate and presenting

the results for approval at our 2023 AGM.

The Committee’s role is to ensure that the

remuneration paid out to Executive Directors

reflects and underpins the Group’s performance.

I hope that, having read this report, shareholders

will be satisfied that the Committee has

discharged its duties appropriately and in line

with your interests. The Committee and I would

welcome any comments you may have on the

contents of this report.

Ros Rivaz

Chair of the Remuneration Committee

23 March 2022

account performance against personal

objectives set to reflect the key priorities for

the year. For 2021 these included objectives

linked to integration of the US business and

progress on diversity in the senior team.

Taking into account performance across both

elements, the CEO received 96.0 per cent and

the FD 95.2 per cent respectively of their total

potential bonus for the year. Fifty per cent of

the bonus will be deferred into Computacenter

shares. Further detail of the metrics and

performance delivered is set out on page 116.

The Performance Share Plan (PSP) awards

granted in March 2019 were based on growth

in the Company’s adjusted

diluted EPS and

growth in Group Services revenue for the

three financial years ended 31 December

2021. In reviewing the outcome, the

Committee was mindful of the positive impact

on adjusted1 profits of the one-off tax items

noted on page 72 of the Group Finance

Director’s Review within this Annual Report

and Accounts and agreed that this benefit

should be excluded from the assessment of

performance. The EPS and Group Services

revenue targets were met in full, and

therefore 100 per cent of the awards will vest

in March 2022 subject to a two-year holding

period. The value delivered from these awards

reflects the performance delivered over the

period including the significant share price

growth since grant. Further detail is set out

on page 118.

The Committee considered the bonus and PSP

formulaic outturns in the context of the current

external environment, the strong financial

performance delivered by the business, wider

Company and individual performance, the

shareholder experience, the customer

experience, and the treatment of employees

throughout the rest of the Group. Taking all of

the above into account, the Committee

considered the bonus and PSP outcomes to be

a fair reflection of performance, and no

discretion was exercised to vary the amount.

The year ahead

The Committee undertook an interim review

of the Remuneration Policy during the year to

ensure that it continued to be fit for purpose,

taking into account the sustained

performance and significant growth in the

business since the last policy vote, further

detail of which is set out earlier on in this

letter. This included consideration of the

expanded geographic footprint of the

business as a result of strategic acquisitions,

including Pivot Technology Solutions Inc. and

BT Services France in 2020, which have

created the platform to grow a sustainable,

scalable business in North America and

expanded the capabilities of our existing

French business.

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Governance Report

Annual Report and Accounts 2021

Alignment of our policy with the UK Corporate Governance Code

The Committee considers that the current Remuneration Policy and its implementation appropriately addresses the following principles, as set

out in the UK Corporate Governance Code.

Principle How the Committee has addressed this

Clarity • The Committee is committed to providing open and transparent disclosures with regards to Executive

remuneration arrangements.

• As part of the review of the Remuneration Policy undertaken in 2019, we consulted with shareholders in order to allow

their feedback to be considered by the Committee. The Committee consulted with shareholders in late 2021 and early

2022 with respect to the CEO’s salary increase.

• In terms of workforce engagement, the Remuneration Committee Chair took questions from employees on Executive

pay matters as part of Works Council and other employee events during the year.

Simplicity • In determining the remuneration framework, the Committee was mindful of avoiding complexity and ensuring that

arrangements are easy to understand.

• Our remuneration arrangements are simple in nature, comprising three main elements – fixed pay (comprising base

salary, pension and benefits), variable short-term incentives (annual bonus), and variable long-term incentives (PSP

awards). This framework is well understood by both participants and shareholders.

Risk • The Committee believes that the structure of remuneration arrangements does not encourage excessive risk taking.

• The remuneration framework has a number of features which align remuneration outcomes with risk, including

a two-year post-vesting holding period applied to any PSP awards, and personal shareholding guidelines applying

both during employment and post-employment.

• In addition, malus and clawback provisions apply to both the annual bonus and PSP awards.

Predictability • The Remuneration Policy outlines the threshold, target and maximum levels of pay that Executive Directors can earn

in any given year over the three-year life of the approved Remuneration Policy. Actual incentive outcomes vary

depending upon the level of performance against various measures, with performance against targets normally

disclosed in the Annual Report on Remuneration each year.

Proportionality • The Committee is satisfied that the Remuneration Policy does not reward poor performance. Payment of the annual

bonus and PSP is subject to the achievement of stretching performance targets, which are clearly linked to the

Group’s strategy.

• Both the Committee and Executive Directors are cognisant of the pay and conditions for the wider workforce, and this

is taken into account when considering Executive remuneration.

• Additionally, the Committee retains the discretion to adjust formulaic outcomes under the annual bonus and/or PSP

should it consider that the outcome is not aligned to the underlying performance of the Company or individual.

Alignment to culture • The performance measures that are used for the annual bonus and PSP are clearly linked to delivery of the Group’s

strategic priorities. In addition, 20 per cent of the annual bonus is based on achievement against non-financial

strategic targets, which ensures both financial and non-financial strategic goals are considered.

Directors’ Remuneration

Report continued

108

Computacenter’s Remuneration Policy table

The table below sets out the main components of Computacenter’s Directors’ Remuneration Policy which was approved by way of a binding vote

at the Company’s General Meeting on 14 May 2020. The full Policy can be found on the Company’s website at investors.computacenter.com.

Details of the way in which the Policy will be implemented in 2022 are set out in blue in the table below.

Policy table

Base salary

Purpose and link to strategy Supports the recruitment and retention of Executives of the calibre required to deliver the Group’s strategy.

Operation Base salaries are paid in cash and reflect an individual’s responsibilities, performance, skills and experience.

Normally reviewed annually with any changes effective on 1 January, taking into account the level of pay settlements

across Computacenter Group, the performance of the business and general market conditions. Salary levels at other

organisations of a similar size, complexity and business orientation will be reviewed for guidance.

A review may not necessarily result in an increase in base salary.

An exceptional review may take place to reflect a change in the scale or scope of a Director’s role, for example

a major acquisition.

Salary levels for the current Executive Directors for the 2022 financial year are:

Chief Executive Officer: £650,000

Group Finance Director: £381,000

Maximum opportunity There is no prescribed maximum base salary or maximum annual increase. Ordinarily any salary increase will reflect

our standard approach to increases for other employees in the Group. Higher increases may be considered in certain

circumstances as required, for example, to reflect:

• an increase in scope of role or responsibility;

• performance in role; or

• an Executive Director being moved to appropriate market positioning over time.

Performance measures Individual and business performance are taken into consideration when deciding salary levels.

Annual bonus

Purpose and link to strategy To incentivise the delivery of annual, short-term, stretching financial and non-financial objectives. To align pay costs to

affordability and the value delivered to shareholders.

Operation Performance measures and targets are set at the beginning of each financial year. Performance is normally assessed

over one financial year.

50 per cent will be paid in cash and 50 per cent will be deferred into Computacenter shares, with half the shares

payable after one year and the remaining half after two years.

Deferred awards will include the right to receive dividend equivalents in respect of dividends paid over the period from

grant of the award to the date on which the Executive Director is first able to acquire shares pursuant to the award,

calculated on such basis as the Committee determines.

Malus and clawback provisions will apply, as set out in the notes to this table.

The Committee has discretion to vary bonus payments downwards or upwards in appropriate circumstances, including

if it considers the outcome would not be a fair and complete reflection of the performance achieved by the Group and/

or the Executive Director(s). To the extent that this discretion is exercised, this will be disclosed in the relevant

Directors’ Remuneration Report and may be the subject of shareholder consultation if deemed appropriate.

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Governance Report

Annual Report and Accounts 2021

Maximum opportunity The maximum annual bonus opportunity in respect of any financial year is 150 per cent of base salary.

In respect of 2022, the maximum bonus opportunity will be 150 per cent of salary for the CEO, Mike Norris and 125 per

cent of salary for the FD, Tony Conophy.

Increases above the current opportunities, up to the maximum limit, may be made to take account of individual

circumstances, which may include an increase in the size or scope of role or responsibility.

Performance measures Financial measures will normally be used to calculate at least a majority of bonus achievement and the remainder

of the annual bonus will normally be attributed to non-financial measures.

Financial measures may include profitability, cost management, cash management and other appropriate measures.

Non-financial targets will be stretching targets set by the Committee, linked to the delivery of our strategy and the

Executive Directors’ personal objectives for the year.

Targets are reviewed and approved annually by the Committee, to ensure that they are stretching and adequately

reflect the strategic aims of the Group.

The Committee determines the threshold and target payout levels each year, taking into account the level of stretch in

the targets set. The level of overall bonus award which is payable for threshold performance will not normally exceed

30 per cent of the maximum opportunity.

Performance Share Plan (PSP)

Purpose and link to strategy To align the interests of Executive Directors and shareholders. To incentivise the achievement of longer-term

profitability and returns to shareholders, and growth of earnings in a stable and sustainable manner.

Operation Awards of nil-cost options (or equivalent) which are granted on a discretionary basis and will normally vest subject to

performance and continued employment at the end of a performance period of at least three years.

PSP shares will normally be subject to a two-year holding period following vesting. The shares held during the holding

period will include the right to receive dividend equivalents in respect of dividends paid over the period from the end

of the performance period to the date on which the Executive Director is first able to acquire shares pursuant to the

award, calculated on such basis as the Committee determines.

The Committee reviews the performance criteria, targets and weightings prior to each grant in line with business

priorities, to ensure they are challenging and fair.

The Committee has discretion to vary the percentage of awards vesting downwards or upwards in appropriate

circumstances, including if it considers that the outcome would otherwise not be a fair and complete reflection

of performance over the plan cycle.

Awards are subject to malus and clawback provisions, as set out in the notes to this table.

Maximum opportunity The maximum opportunity under the plan in respect of any financial year is 200 per cent of annual base salary

or 400 per cent of annual base salary in exceptional circumstances.

The maximum face value of annual awards granted in respect of 2022 will be 200 per cent of salary for the CEO and

175 per cent of salary for the FD.

For achievement of a threshold performance level (which is the minimum level of performance that results in any part

of an award vesting), no more than 25 per cent of the award will vest.

Performance measures Earnings per share is currently the primary measure for our Performance Share Plan, but the Committee may exercise

its discretion to introduce additional or alternative measures which are aligned to the delivery of the business strategy.

Details of the performance conditions applied to awards granted in the year under review and to be granted in the

forthcoming year are set out in the Annual

Report on Remuneration for the relevant year.

Directors’ Remuneration

Report continued

110

Retirement benefits

Purpose and link to strategy To provide an income for retirement.

Operation No special arrangements are made for Executive Directors, who are entitled to become members of the Group’s

defined contribution pension scheme, which is open to all UK employees, or the pension plan relevant to the country

where they are employed if different.

If the Executive Director so chooses, he/she may take some or all of the pension contribution as a cash alternative,

which will be the same percentage of salary as the pension contribution foregone.

Maximum opportunity The maximum pension contribution or allowance for Executive Directors will be in line with that available to UK

employees or to participants in the pension plan relevant to the country where they are employed, if different. For UK

employees this is currently 5.0 per cent of salary.

Performance measures N/A

Other benefits

Purpose and link to strategy To provide a competitive level of employment benefits.

Operation No special arrangements are generally made for Executive Directors.

Benefits currently include:

• a car benefit appropriate for the role performed;

• participation in the Company’s private health and long-term sickness schemes;

• life insurance and income continuance schemes; and

• participation in all-employee share plans, on the same basis as other eligible employees.

If new benefits are introduced for a wider employee group, the Executive Directors shall be entitled to participate on

the same basis as other eligible employees.

If, in the opinion of the Committee, a Director must relocate to undertake and properly fulfil his/her executive duties,

relocation benefits may be provided, which may include a cash payment to cover reasonable expenses.

Maximum opportunity There is no maximum level of benefits provided to an individual Executive Director, as the cost of benefits is dependent

upon costs in the relevant market. Benefits will be set at levels which are competitive, but not excessive.

Participation by Executive Directors in any all-employee share plan operated by the Company is limited to the

maximum award levels permitted by the plan rules from time to time and, in the case of any UK tax qualifying plan,

the limits prescribed by the relevant tax legislation.

Performance measures N/A

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Governance Report

Annual Report and Accounts 2021

Chair and Non-Executive Director fees

Purpose and link to strategy To ensure that the Group is able to attract and retain experienced and skilled Non-Executive Directors.

Operation Fee levels are determined with reference to those paid by other companies of similar size and complexity and taking

into account the scope of responsibilities and the amount of time that is expected to be devoted during the year.

No individual is involved in the process of setting his/her own remuneration.

Fee levels may be reviewed annually. They may also be increased on an ongoing or temporary basis, to take into

account changes in the working of the Board.

The Chair of the Board receives a fixed fee. Other Non-Executive Directors receive a basic fee and additional fees are

payable for Chairing Board Committees and for the additional responsibility of being the Senior Independent Director

and may also be paid to reflect additional time commitments and responsibilities. Fees are normally paid in cash.

Travel expenses, hotel costs and other benefits related to the performance of the role, including any tax due, are also

paid where necessary.

2022 fee levels for the incumbents are as follows:

Non-Executive Chair: £220,000

Non-Executive Director base fee: £57,600

Founder Non-Executive Director base fee: £52,370

Supplementary fees:

Senior Independent Director: £8,370

Audit Committee Chair: £18,850

Remuneration Committee Chair: £10,480

Maximum opportunity Non-Executive Directors do not participate in any of the Group’s incentive arrangements or share schemes and are not

eligible for pension or other benefits.

Maximum in line with the Company’s Articles of Association.

Performance measures N/A

Share ownership guidelines

Purpose and link to strategy To strengthen alignment between Executives and shareholders.

Operation Levels are set in relation to annual base salary, and are normally required to be built over a five-year period.

The Committee retains discretion to extend this period on an individual basis, if it believes that it is fair and reasonable

to do so.

Options which have vested unconditionally, but are as yet unexercised, and shares subject to deferred bonus awards

and PSP awards which are in the holding period but which are no longer subject to performance conditions, will be

included on a net of tax basis, for the purposes of calculating shareholdings, as will shares held by an Executive’s

spouse or dependents.

Post-cessation of employment, Executive Directors are also expected to remain aligned with the interests of

shareholders for an extended period after leaving the Company, other than in exceptional circumstances. Details of the

application of this policy are set out in the Annual Report on Remuneration.

The Committee will regularly review the minimum shareholding guidelines.

Maximum opportunity There is no maximum, but minimum levels have been set at 200 per cent of base salary for both the current CEO and FD.

Non-Executive Directors are not required to hold shares in the Company.

Executive Directors who have not yet met their shareholding requirement will be expected to retain at least 50 per cent of

any deferred bonus awards and PSP awards which vest (net of tax) until such time as this level of holding is met.

Performance measures N/A

Directors’ Remuneration

Report continued

112

Malus and clawback

Malus and clawback provisions apply to the

annual bonus and Performance Share Plan.

For awards paid or granted in respect of 2020

onwards, the provisions are set out below.

Malus and/or clawback may apply to annual

bonus awards, including deferred awards for

a period of two years and to Performance

Share Plan awards in the period up to the fifth

anniversary of grant, in the event of:

• a material misstatement of results;

• gross or serious misconduct;

• an error or misstatement which has

resulted in a material overpayment to

the participants;

• a significant failure of risk management

within the Company or any Group Member;

• significant reputational damage to the

Company or any Group Member;

• the participant leaving in circumstances

which, had all the facts been known, would

have resulted in the award lapsing; or

• any other circumstances that the

Committee, in its discretion, considers to be

similar in nature or effect to those above.

The malus and clawback provisions that apply

to awards prior to the dates set out above are

in line with the relevant policy in force at the

time the awards were made.

Explanation of performance measures

The performance measures in respect of

variable remuneration outlined within the

Policy are based on a combination of financial

and strategic measures, with an emphasis on

the financial performance of the Group, and

therefore to the value that the business

delivers to its shareholders. The Company is

committed to long-term earnings per share

growth through increased profitability and

prudent use of cash generation, with a

Services-led strategy. This commitment is

reflected in the measures used to motivate

and incentivise our Management team

through the annual bonus and PSP.

The Committee reviews potential

performance criteria and targets for the

annual bonus and PSP annually, resulting in

the performance criteria structure outlined in

the Policy. The measures for 2022 are outlined

on page 125.

Performance conditions applying to any

award may be amended or substituted by the

Committee if an event occurs which causes

the Committee to determine an amended or

substituted performance condition would be

more appropriate and not materially less

difficult to satisfy.

Remuneration arrangements across

the Group

When setting Executive remuneration,

consideration is given to pay policies and

employment conditions of employees of the

Company and elsewhere in the Group.

The remuneration of employees across

the Group is based on three fundamental

principles. First, that it allows the Group to

retain the level of talent necessary to

implement the strategy as set by the CEO and

Board. Second, that levels of remuneration

should be sufficient to achieve this aim, but

should never be higher than is necessary to do

so. Finally, with limited exceptions, the more

significant the ability of an employee to

influence the Company’s financial results

through their individual performance, the

higher the proportion of their remuneration

should be performance based.

The level and design of variable pay takes into

account the need to avoid incentivising the

Group’s employees to act in a manner that is

inconsistent with the Group’s risk appetite,

as set by the Board.

Consistent with the policy for Executive

Directors, where annual bonuses are in place

across the Group, they are linked to business

performance with a focus on underlying Group

or divisional profit and other relevant metrics.

Whilst only Executive Directors and senior

executives participate in the PSP, other

employees can participate in the Company’s

all-employee share schemes, which are

designed to incentivise participants to build

a shareholding in the Company, thus aligning

their interests with those of the Company’s

shareholders. This plan is not subject to

performance conditions, but requires the

employee to remain employed at the end

of the term of the scheme which they

have joined.

In line with local country practices, all

employees are encouraged to contribute

appropriate savings toward their retirement.

In the UK, the Company operates pension

arrangements within the Occupational and

Personal Pension Schemes (Automatic

Enrolment) Regulations 2010.

Whilst the Company does not feel it

appropriate to consult directly with

employees when drawing up the Directors’

Remuneration Policy, the Committee has

considered any feedback received via

employee engagement surveys and from

the regular meetings the CEO and Chief People

Officer conduct with staff representative

bodies in each of our major geographies.

The Remuneration Committee Chair, Ros

Rivaz, was appointed as the Designated

Non-Executive Director on 9 November 2017 to

facilitate engagement with the wider workforce,

to assist the Board in understanding the views

of Computacenter’s employees. During 2021,

this involved attending Works Council

meetings and other employee events,

virtually, and feeding back the views raised

by employees to the Board. Whilst Executive

pay has not been a specific topic in these

discussions, these events have provided a

valuable opportunity for employees to share

their views freely on a range of topics and Ros

welcomed questions on a broad range of

topics including Executive remuneration

and how the Company measures success.

Further information on the role and the

activities of the Designated Non-Executive

Director is on page 67.

113

Governance Report

Annual Report and Accounts 2021

Annual Report on Remuneration

Responsibilities of the Remuneration Committee

The key responsibilities of the Remuneration Committee are to determine on behalf of the Board:

• the Company’s general policy on Executive remuneration; and

• the specific remuneration packages of the Executive Directors, the Chair of the Board and senior Executives of the Group including,

but not limited to, base salary, pension, annual performance-related bonuses and PSP awards.

The fees of the Non-Executive Directors are determined by the Chair and the Executive Directors. All Directors are subject to the overriding

principle that no person shall be involved in the process of determining his or her own remuneration.

The full responsibilities of the Committee are contained within its Terms of Reference, which are available on our website at

investors.computacenter.com.

Membership and attendance

The Remuneration Committee is made up of the independent Non-Executive Directors and the Chair of the Board, who was considered to be

independent on appointment. Details of the membership of the Committee and attendance of the members at Committee meetings during the

year, are provided below.

Current members Role Attendance record

1. Ros Rivaz Senior Independent Director 7/7

2. Peter Ryan Non-Executive Chair of the Board 7/7

3. Pauline Campbell

Non-Executive Director 3/3

4. Rene Haas Non-Executive Director 7/7

5. Ljiljana Mitic Non-Executive Director 7/7

Former member

6. Minnow Powell

Non-Executive Director 6/6

* Pauline Campbell was appointed to the Board and the Committee on 16 August 2021.

** Minnow Powell stepped down as a Non-Executive Director of the Company on 30 September 2021.

The CEO attends meetings by invitation, as does the Chief People Officer. The Company Secretary is the secretary to the Committee.

The principal advisor to the Committee is Deloitte LLP (Deloitte), which was selected by the Committee in September 2016 by way of a tender process.

Minnow Powell receives a pension from Deloitte and, as such, recused himself from all discussions relating to the appointment of Deloitte.

The total fees paid to Deloitte in relation to advice to the Committee in 2021 were £71,100 (2020: £50,250). The Committee considers the advice

that it receives from Deloitte LLP to be independent. During the year, Deloitte also provided consulting, tax and share plan advice to the Company.

Deloitte is a founding member of the Remuneration Consultants Group and, as such, voluntarily adheres to its Code of Conduct.

Audited information

The audited tables and related notes are identified within this report, using an

A key.

Directors’ Remuneration

Report continued

114

Single Figure of Total Remuneration

The total amount paid by the Company to each of the Directors, in respect of the financial years ended 31 December 2021 and 2020, is set out in

the table below.

Year ended 31 December 2021

Salary or fees

£’000

Benefits

£’000

Pension

£’000

Total

Fixed Pay

£’000

Annual bonus

£’000

PSP awards

£’000

Total

Variable Pay

£’000

Total

£’000

Executive

Mike Norris 573.0 8.1

25.2 606.3 825.1 2,496.0

3,321.1 3,927.4

Tony Conophy 371.2 16.2

16.3 403.7 441.7 1,415.5

1,857.2 2,260.9

Non-Executive

Peter Ryan 214.2 – – 214.2 – – – 214.2

Pauline Campbell

25.8 – – 25.8 – – – 25.8

Rene Haas 56.1 – – 56.1 – – – 56.1

Philip Hulme

51.0 – – 51.0 – – – 51.0

Ljiljana Mitic 56.1 – – 56.1 – – – 56.1

Peter Ogden

51.0 – – 51.0 – – – 51.0

Minnow Powell

55.8 – – 55.8 – – – 55.8

Ros Rivaz 74.5 – – 74.5 – – – 74.5

Total (£’000) 1,528.7 24.3 41.5 1,594.5 1,266.8 3,911.5 5,178.3 6,772.8

Year ended 31 December 2020

Salary or fees

£’000

Benefits

£’000

Pension

£’000

Total

Fixed Pay

£’000

Annual bonus

£’000

PSP awards

£’000

Total

Variable Pay

£’000

Total

£’000

Executive

Mike Norris 421.5

19.3

24.7 465.5 674.4 1,398.9

2,073.3 2,538.8

Tony Conophy 273.0

15.7

16.0 304.7 342.2 792.7

1,134.9 1,439.6

Non-Executive

Peter Ryan 210.0 – – 210.0 – – – 210.0

Pauline Campbell

– – – – – – – –

Rene Haas 55.0 – – 55.0 – – – 55.0

Philip Hulme

12.5 – – 12.5 – – – 12.5

Ljiljana Mitic 55.0 – – 55.0 – – – 55.0

Peter Ogden

12.5 – – 12.5 – – – 12.5

Minnow Powell

73.0 – – 73.0 – – – 73.0

Ros Rivaz 73.0 – – 73.0 – – – 73.0

Total (£’000) 1,185.5 35.0 40.7 1,261.2 1,016.6 2,191.6 3,208.2 4,469.4

1. The benefits figure represents the taxable benefit arising from cash allowances paid in lieu of the provision of company car and other travel-related benefits for Mike Norris.

This benefit, from 1 July 2021, replaced the previously provided driver service which ceased during 2020.

2. The benefits figure represents the taxable benefit arising from cash allowances paid in lieu of the provision of company car and other travel-related benefits for Tony Conophy.

3. This relates to the 2019 PSP awards which will be paid out in March 2022 and had a performance period of 1 January 2019 to 31 December 2021. The relevant performance criteria were

fully achieved and therefore 100 per cent of the award vested for each of the Executive Directors. This calculation is based upon the average value of Computacenter plc shares over

the last quarter of 2021 being £27.55. The PSP value attributable to share price growth since the awards were granted is £1,416,000 and £803,000 for the CEO and FD respectively.

The Committee did not exercise its discretion to change the value of awards vesting based on the share price appreciation or depreciation during the period.

4. Pauline Campbell was appointed to the Board on 16 August 2021, and assumed the Chair of the Audit Committee on 30 September 2021.

5. The Company announced on 6 April 2020 that Philip Hulme and Peter Ogden waived their basic fees due to them as Founder Non-Executive Directors from 1 April 2020 until 31 December

2020, showing solidarity with staff that had been furloughed across the business.

6. Minnow Powell stepped down from the Board on 30 September 2021.

7. The salary figure for Mike Norris and Tony Conophy reflects the voluntary reduction to zero for the period 1 April 2020 until 30 June 2020 as described further below. Note that other

elements of remuneration, namely benefits, pension, annual bonus and PSP awards, continued to be calculated by reference to the salaries the Directors were eligible for in 2020,

being £562,000 and £364,000 for Mike Norris and Tony Conophy respectively.

8. The value of the 2018 PSP awards has been updated to reflect the actual share price at vesting on 23 March 2020 of £22.51.

115

Governance Report

Annual Report and Accounts 2021

Remuneration paid in 2021: Executive Directors

2021 base salary

The annual salaries of the Executive Directors were increased by 2.0 per cent in 2021 to £573,000 for the CEO and £371,200 for the FD.

2021 annual bonus

The maximum bonus opportunity in 2021 was 150 per cent of base salary for the CEO and 125 per cent of base salary for the FD. Half of the bonus

will be deferred into Computacenter shares, with half payable after one year and half payable after two years.

The 2021 annual bonus opportunity was driven by the financial performance of the business and individual targets for each Director. For the year

ended 31 December 2021, 80 per cent of this award was conditional on the achievement of criteria linked to the financial performance of the

Group. These targets were set by the Committee with reference to the Group’s strategic and financial plans, as approved by the Board. The

non-financial personal objectives set for the Executive Directors were based principally on delivery against the Group’s strategic priorities,

integration of acquisitions and certain people-related objectives, including progress on diversity and inclusion.

The Committee considered the formulaic outturns in the context of the current external environment, wider Company and individual

performance, the shareholder experience, the customer experience and the treatment of employees throughout the rest of the Group. Taking all

of the above into account, the Committee considers that the annual bonus outcomes are a fair reflection of individual and Group performance in

the year. As such, the Committee has not exercised its discretion to adjust the awards.

The table below sets out details of the annual bonus criteria which applied for the Executive Directors for 2021 and performance delivered:

Measure

As a percentage of

Maximum Bonus

Opportunity

Performance required

Actual %

achieved Payout £’000Threshold Target Stretch Maximum

CEO FD CEO FD

Financial criteria

Profit before tax (£m)

50%

195.0 202.6 210.2 220.7 262.8

429.8 232.0

Percentage payout 10% 20% 35% 50% 50%

Services contribution

growth (£m)

10%

288.7 304.8 320.8 320.8 350.7

85.9 46.4

Percentage payout 5% 7.5% 10% 10% 10%

Cash balance (£m)

10%

192.7 224.9 25 7.0 257.0 259.1

85.9 46.4

Percentage payout 5% 7.5% 10% 10% 10%

Costs 2021 (%) 5% 33.3% 33.6% 33.9% 33.9% 39.0%

43.0 23.2

Percentage payout 3% 4% 5% 5% 5%

Costs 2022 (%)

34.3% 34.7% 35.0% 35.0% 36.4%

43.0 23.2

Percentage payout 3% 4% 5% 5% 5%

Non-financial criteria

Personal objectives 20% 0% 7. 5% 15% 20% 16% 15.2% 137.5 70.5

Total 100% 26.0% 50.5% 80.0% 100% 96.0% 95.2% 825.1 441.7

1. Profit before tax represents Group adjusted

profit before tax on a currency adjusted basis excluding the results of the entities acquired during the year.

2. The measure represents the actual percentage of gross profit retained as adjusted

operating profit, after costs, within the core UK, German and French geographies for 2021.

3. The measure represents the targeted percentage of gross profit to be retained as adjusted

operating profit, after costs, within the core UK, German and French geographies for 2022,

in accordance with longer-term cost reduction, and margin improvement, objectives.

Directors’ Remuneration

Report continued

116

The personal objectives for the Executive Directors are subject to a profit performance underpin and are related to the following:

Objectives Progress in the year

CEO

Drive the agenda for a diverse and inclusive workforce, with particular

emphasis on gender and ethnicity

Gender diversity improved at all levels in Computacenter during 2021, with

female representation in Group leadership increasing from 20.5 per cent in

2020 to 22.8 per cent in 2021 when tracking our progress through FTSE

Women Leaders (Hampton-Alexander) reporting. Establishment of an

Employee Impact Group for ethnicity has been highly successful in building

awareness, understanding and contributing to sustainable change across

the business. A number of events were hosted during the year including

open-mic sessions and development programmes. 91 per cent of UK staff

have shared their ethnicity data to date which provides the Company with

a robust platform from which to analyse representation across the UK

business and identify areas for improvement.

Develop the North America Business Re-branding of the acquired businesses was completed in early 2021.

The Group ERP systems for the legacy and FusionStorm elements of the

business was implemented during the year. Effective integration of the

two acquired businesses was achieved with operating models settling

down to deliver a strong EBIT performance in 2021 that was significantly

higher than the internal targets set at the start of the year.

Focus on Managed Services growth Managed Services business grew strongly during 2021. On an organic

basis, revenue increased by 4.8 per cent in constant currency2 and by 7.5

per cent on a reported basis. The Services Contract Base, representing the

annual value of the committed Managed Services contract spend grew by

2.9 per cent in constant currency2.

Increase competitiveness in Services Improved our end-user workplace services created with our modern

workplace offerings which bring together product and services capability.

Improved the win rate for Managed Services business across core

countries and increased the percentage of business delivered through

near-shore and off-shore locations to help drive competitive solutions

enabling customers to select from a mix of service delivery options.

Continuing to reduce the cost to serve through location mix and the use

of technology.

Implementation of new systems Good progress made on enhancements to systems and tools utilised by

the Technology Sourcing business to enable continued leverage of this

capability as a competitive advantage. A robust programme of further

upgrades has been planned for 2022 to ensure we remain competitive for

our customers.

Objectives Progress in the year

Continued progress towards corporate gender diversity objective Gender diversity has improved at all levels in Computacenter during 2021,

with female representation in Group leadership increasing from 20.5 per

cent in 2020 to 22.8 per cent in 2021 when tracking our progress through

FTSE Women Leaders (Hampton-Alexander) reporting.

Implement the Group ERP systems within Computacenter NS in France to

enable reporting consistent with Group standards and to allow transition

away from legacy systems from the vendor of the business

Group ERP Systems have been effectively implemented. Teams integrating

to operate as one business and scaling opportunities to sell a combined

solution offering.

Implement Group ERP systems in North America to align with Group

operating procedures, simplify reporting

Combine legal entities to create a single North America business

Progress has been made in implementing Group ERP systems across the

North American business despite delays caused by Covid-19 travel

restrictions. Legacy legal entities have been reduced in number to aid the

integration of the operating models.

Drive cost reductions through ongoing travel and operational efficiencies Cost targets have been over-achieved in the year, in part helped by ongoing

restrictions on travel. Internal carbon travel charge implemented to

increase visibility of CO

at time of travel request, to ensure continued

focus on reducing costs and CO

emissions in future years.

Continue to develop and implement the formal climate change impact

initiatives and reporting

2021 TCFD and sustainability reporting with large reductions in CO

emissions from the multilevel investments made in 2020 and 2021.

62 per cent year on year reduction in Scope 1 and Scope 2 emissions

providing a strong platform for the 2022 aim of carbon neutral for Scope 1

and Scope 2 using some carbon offsets.

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Governance Report

Annual Report and Accounts 2021

PSP

The PSP awards granted to Executive Directors with a performance period ending on 31 December 2021 vested at 100 per cent, pursuant to the

2019 PSP Scheme, as the relevant performance criteria were fully achieved. The vested awards are subject to a two-year holding period before

release to the Executive Directors.

Vesting of these awards to each Executive Director was dependent upon the achievement of the following performance measures over

a three-year period:

The compound annual growth rate of the Group’s adjusted

diluted earnings per share (EPS) – 70 per cent weighting

Performance level

Adjusted

diluted

EPS growth CAGR

Maximum (100 per cent vesting) 12.50%

In line with expectations (50 per cent vesting) 8.33%

Threshold (10 per cent vesting) 5.00%

* Vesting occurs on a straight-line basis in between these thresholds.

During its review of performance, the Committee considered the impact of the one-off tax items noted on page 72 of the Group Finance Director’s

review within this Annual Report and Accounts and agreed that the disclosed unrepeatable nature of the tax benefit within the adjusted1 profit for

the year had materially increased the adjusted diluted EPS in 2021 and should therefore be excluded from the assessment of performance. The

2021 adjusted1 diluted EPS figure used to determine vesting was therefore 160.9p per share. The EPS number used for the base year of this award

(i.e. EPS in 2018) is consistent with the EPS number that was used to calculate the vesting of the 2016–2018 PSP. On this basis, the growth in

adjusted diluted EPS during the period 1 January 2019 to 31 December 2021 was 28.57 per cent per annum. This resulted in 100 per cent of this

element vesting.

Services revenue growth – 30 per cent weighting (measured on a constant currency

basis)

Performance level

Services revenue

growth CAGR

Maximum (100 per cent vesting) 7.5%

In line with expectations (50 per cent vesting) 5.5%

Threshold (25 per cent vesting) 3.5%

* Vesting occurs on a straight-line basis in between these thresholds.

The Services revenue growth during the period 1 January 2019 to 31 December 2021 was 7.96 per cent per annum. This resulted in 100 per cent of

this element vesting. As set out in the Annual Statement from the Chair of the Remuneration Committee on page 106, the Committee considered

the PSP formulaic outturn in the context of wider Company performance and the wider stakeholder experience, and considers that the outcome

is a fair reflection of performance over the performance period.

Remuneration awards granted in 2021: Executive Directors

Share scheme interests awarded during the year

The table below details awards made during 2021 under the PSP scheme. The performance conditions for these awards are set out in more detail

below. Any awards that vest will be subject to a two-year holding period.

Scheme/type

of award

Number of

Face value at

time of grant

Performance

conditions

applied

Amount vesting related to threshold of

performance

Performance

period set

Threshold

performance

(% of face value)

Maximum

performance

(% of face value)

CEO

PSP – nil

cost option

51,678 £1,123,997

Compound growth of

Company EPS (70%)

10% 100%

Three financial years

from 1 January 2021

Compound growth of

Services revenue (30%)

25% 100%

PSP – nil

cost option

29,287 £636,992

Compound growth of

Company EPS (70%)

10% 100%

Three financial years

from 1 January 2021

Compound growth of

Services revenue (30%)

25% 100%

1. This is based on the average mid-market share price of Computacenter plc on the three immediately preceding business days from grant, being £21.75.

Directors’ Remuneration

Report continued

118

Vesting of these awards to each Executive Director will be dependent upon achieving the performance measures over a three-year period,

as follows:

The compound annual growth rate of the Group’s adjusted

diluted earnings per share (EPS) (70 per cent weighting)

Performance level

Adjusted

diluted

EPS growth CAGR

Maximum (100 per cent vesting) 12.5%

In line with expectations (50 per cent vesting) 8.33%

Threshold (10 per cent vesting) 5.0%

* Vesting occurs on a straight-line basis in between these thresholds.

The compound annual growth rate of the Group’s Services Revenue (GSR) (30 per cent weighting) measured on a constant currency

basis

Performance level

Services revenue

growth CAGR

Maximum (100 per cent vesting) 7.5%

In line with expectations (50 per cent vesting) 5.5%

Threshold (25 per cent vesting) 3.5%

* Vesting occurs on a straight-line basis in between these thresholds.

The table below details awards made during 2021 under the Deferred Bonus Plan (DBP) scheme.

Scheme/type of award

Number of

shares Face value Vesting date

CEO DBP

– Conditional Share 15,503 £337,190

50% – 21 March 2022

50% – 21 March 2023

FD DBP

– Conditional Share 7,866 £171,086

50% – 21 March 2022

50% – 21 March 2023

1. This is based on the average mid-market share price of Computacenter plc on the three immediately preceding business days from grant, being £21.75.

2. These are not subject to any other performance conditions.

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Governance Report

Annual Report and Accounts 2021

Executive Director outstanding Share Awards as at 31 December 2021

Directors’ interests in share schemes

Schemes Note

Exercise/

share price Exercise period

1 January

2021

Granted

during the

year

Exercised

during the

year

Lapsed

during the

year

31 December

2021

Mike Norris Sharesave

1 1011.0p 01/12/24 – 31/05/25 2,967 – – – 2,967

PSP 2,3 Nil 21/03/23 – 20/03/28 88,782 – – 26,635 62,147

PSP 3 Nil 21/03/24 – 20/03/29 90,604 – – – 90,604

PSP 3 Nil 23/03/25 – 22/03/30 110,977 – – – 110,977

PSP 3 Nil 22/03/26 – 21/03/31 – 51,678 – – 51,678

DBP 4 Nil 21/03/20 – 21/03/21 11,698 – 11,698 – –

DBP 4 Nil 21/03/21 – 21/03/22 32,068 – 16,034 – 16,034

DBP 4 Nil 21/03/22 – 21/03/23 – 15,503 – – 15,503

Tony Conophy Sharesave

1 1054.0p 01/12/23 – 31/05/24 2,846 – – – 2,846

PSP 3 Nil 22/03/20 – 21/03/27 65,260 – – – 65,260

PSP 2,3 Nil 21/03/23 – 20/03/28 50,310 – – 15,093 35,217

PSP 3 Nil 21/03/24 – 20/03/29 51,384 – – – 51,384

PSP 3 Nil 23/03/25 – 22/03/30 62,915 – – – 62,915

PSP 3 Nil 22/03/26 – 21/03/31 – 29,287 – – 29,287

DBP 4 Nil 21/03/20 – 21/03/21 6,433 – 6,433 – –

DBP 4 Nil 21/03/21 – 21/03/22 16,538 – 8,269 – 8,269

DBP 4 Nil 21/03/22 – 21/03/23 – 7,866 – – 7,866

1. Issued under the Rules of the Computacenter 2018 Sharesave Plan, which is available to employees and full-time Executive Directors of the Computacenter Group. Eligible employees can

save between £5 and £500 a month to purchase options in shares in Computacenter plc at a price fixed at the beginning of the scheme term. There are no conditions relating to the

performance of the Company for this scheme.

2. These awards vested during the year at 70 per cent, and accordingly 30 per cent of the shares under award lapsed.

3. Issued under the terms of the Computacenter Performance Share Plan 2005, as amended at the AGM held on 19 May 2015, or as amended at the AGM held on 18 May 2018.

(a) In respect of 70 per cent of the total award: 10 per cent of this portion of the award will vest if the compound annual EPS growth over the Performance Period equals 5 per cent per

annum. If the compound annual EPS growth rate over the Performance Period is between 5 per cent and 8.33 per cent, this portion of the award will vest on a straight-line basis up to

one-half. This portion of the award will vest in full if the compound annual EPS growth equals or exceeds 12.5 per cent per annum, with straight-line vesting between 50 per cent and

100 per cent.

(b) In respect of 30 per cent of the total award: the award will start to vest if the compound annual Services revenue growth rate over the Performance Period equals 3.5 per cent. If the

compound annual Services revenue growth rate over the Performance Period is 7.5 per cent, this portion of the award will vest in full. If the compound annual Services revenue

growth rate over the period is between 3.5 per cent and 7.5 per cent, then this portion of the award will vest on a straight-line basis between 25 per cent and 100 per cent.

PSP awards from 2018 onwards are subject to the two-year holding period.

4. Conditional shares issued under the terms of the Computacenter 2017 Deferred Bonus Plan. Awards vest in equal tranches on the first and second anniversary of the grant date.

* The Sharesave scheme only requires that an employee remains employed by the Group at the end of the term of the scheme. There are no performance conditions attached.

Director gains

PSP

Director Date of vesting Scheme

Number of

shares Exercise price

Market price at

exercise

Notional gain

made

Mike Norris 22/03/2021 PSP 62,147 Nil £22.51 £1,398,898

Tony Conophy 22/03/2021 PSP 35,217 Nil £22.51 £792,717

The closing market price of ordinary shares at 31 December 2021 (being the last trading day of 2021) was £29.10 (31 December 2020: £24.48).

The highest price during the year was £30.30 and the lowest was £20.86.

Minimum shareholding requirements

In accordance with the Group’s minimum shareholding guidelines, the CEO is required to build up a shareholding that is equal to 200 per cent of

his/her gross salary. In respect of the FD, the threshold that is expected to be achieved is 200 per cent of his/her gross salary. It is also expected

that the Executive Director will achieve these levels within five years of appointment. For the purposes of these requirements, deferred bonuses,

shares subjected to the holding period and options which have vested unconditionally, but are as yet unexercised, will be included on a net basis,

for the purposes of calculating shareholdings, as will shares held by an Executive’s spouse or dependants. There is no requirement for the

Non-Executive Directors of the Company to hold shares.

In addition, when an Executive Director steps down from the Board they will be expected to retain an interest in Computacenter shares based on

their in-employment share ownership guideline (or actual shareholding at the date of stepping down from the Board if lower) for a period of two

years. This policy will be supported by the use of nominee accounts.

Directors’ Remuneration

Report continued

120

The Committee has the discretion to disapply or reduce this requirement in extenuating circumstances, for example in compassionate

circumstances.

Both the CEO and the FD substantially exceed their shareholding requirement.

Directors’ shareholdings

The beneficial interest of each of the Directors in the shares of the Company, as at 31 December 2021, is as follows:

Current Directors

Number of shares in

the Company as at

31 December 2021

Percentage of

requirement

achieved

Interests in shares

SAYE PSP DBP Total

Mike Norris 1,134,214 2,880%

2,967

315,406

31,537

1,484,124

Tony Conophy 1,873,556 7,344%

2,846

244,063

2,4

16,135

2,136,600

Peter Ryan 900 n/a – – – 900

Pauline Campbell – n/a – – – –

Rene Haas – n/a – – – –

Philip Hulme 9,196,695 n/a – – – 9,196,695

Ljiljana Mitic – n/a – – – –

Peter Ogden 18,699,389 n/a – – – 18,699,389

Minnow Powell 1,340 n/a – – – 1,340

Ros Rivaz 2,181 n/a – – – 2,181

Note: There has been no grant of, or trading in, shares of the Company between 1 January 2022 and 15 March 2022.

1. There are no conditions relating to the performance of the Company or individual for the vesting of this scheme.

2. There are performance conditions for this scheme as set out within the table on page 120.

3. Based on the Company’s closing share price as at 31 December 2021, being £29.10, and the approved 2021 base salaries.

4. Includes 65,260 options that have vested but remain unexercised at 31 December 2021.

Dilution limits

Computacenter uses a mixture of both new issue and market purchase shares to satisfy the vesting of awards made under its PSP, DBP and

Sharesave schemes. In line with best practice, the use of new or treasury shares to satisfy awards made under all share schemes is restricted to

10 per cent in any 10-year rolling period, with a further restriction for discretionary schemes of 5.0 per cent in the same period. The Company’s

current position against its dilution limit is under each of these thresholds. The Company regularly reviews its position against the dilution

guidelines and, should there be insufficient headroom within which to grant new awards which could be satisfied by issuing new shares, the

Company intends to continue its current practice of satisfying new awards with shares purchased on the market.

Payments to past Directors and payments for loss of office

There were no payments made to past Directors and no payments made for loss of office during the period.

Executive service contracts

A summary of the Executive Directors’ contracts of employment is given in the table below:

Director Start date Expiry date Unexpired term

Notice period

(months)

Mike Norris 23/04/1998 n/a None specified 12

Tony Conophy 23/04/1998 n/a None specified 12

All Executive Directors have a rolling 12-month service contract with the Company, which is subject to 12 months’ written notice by either the

Company or the Director.

External appointments for Executive Directors

Executive Directors are permitted to hold outside directorships, subject to approval by the Chair of the Board, and any such Executive Director is

permitted to retain any fees paid for such services. During 2021, neither Executive Director held any outside fee-paying directorships.

Non-Executive Directors’ letters of appointment

The Non-Executive Directors have not entered into service contracts with the Company. They each operate under a letter of appointment which

sets out their terms, duties and responsibilities. Non-Executive Directors are appointed for an initial term, which runs to the conclusion of the third

AGM following their appointment, and which may be renewed at that point. The letters of appointment provide that should a Non-Executive

Director not be re-elected at an AGM before he or she is due to retire, then his or her appointment will terminate. The Board has agreed that all

Directors will be subject to re-election at the AGM on 19 May 2022.

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Governance Report

Annual Report and Accounts 2021

The terms and conditions of appointment of the Non-Executive Directors are available for inspection by shareholders at the Company’s registered

office. The appointments continue until the expiry dates set out below, unless terminated for cause or on the period of notice stated below:

Director

Date of latest letter of

appointment Expiry date Notice period

Peter Ryan 16 May 2019 Close of the Company’s Annual General Meeting in 2022 3 months

Pauline Campbell 9 March 2021 Close of the Company’s Annual General Meeting in 2025 3 months

Rene Haas 20 August 2019 Close of the Company’s Annual General Meeting in 2022 3 months

Philip Hulme 4 May 2019 Close of the Company’s Annual General Meeting in 2022 3 months

Ljiljana Mitic 16 May 2019 Close of the Company’s Annual General Meeting in 2022 3 months

Peter Ogden 4 May 2019 Close of the Company’s Annual General Meeting in 2022 3 months

Ros Rivaz 11 November 2019 Close of the Company’s Annual General Meeting in 2022 3 months

In 2022, the Chair will be paid a single consolidated fee of £220,000, an increase of 2.7 per cent on 2021, a rise consistent with average increases

made within the wider UK workforce. The Non-Executive Directors are paid a basic fee, plus additional fees for chairing Board Committees or

Senior Independent Director duties.

In 2022, Non-Executive Directors’ annual fees will increase by 2.7 per cent on 2021, a rise consistent with average increases made within the wider

UK workforce, and are set out in the table below:

Position

2021 Annual

fees (£)

2022 Annual

fees (£)

Independent Non-Executive Directors 56,100 57,600

Founder Non-Executive Directors 51,000 52,370

Additional fee for the Chairing the Audit Committee 18,350 18,850

Additional fee for the Chairing the Remuneration Committee 10,200 10,480

Additional fee for the position of Senior Independent Director 8,150 8,370

Performance of the Company

Total shareholder return performance

(Computacenter versus FTSE Software and Computer Services sector)

200

400

600

800

1,000

1,200

Dec

2011

Dec

2012

Dec

2013

Dec

2014

Dec

2015

Dec

2016

Dec

2017

Dec

2018

Dec

2019

Dec

2021

Dec

2020

Computacenter FTSE All Share – Software and Computer Services

In this graph, TSR performance shows the value, in December 2021, of £100 invested in the Company’s shares in December 2011, assuming that all

dividends received between December 2011 and December 2021 were reinvested in the Company’s shares (source: Datastream).

Directors’ Remuneration

Report continued

122

CEO pay history

The table below shows the total remuneration figure for the CEO over the previous 10 financial years. The total remuneration figure includes the

annual bonus and PSP awards which vested based on performance in those years. The annual bonus and PSP percentages show the payout for

each year as a percentage of the maximum.

2012 2013 2014 2015 2016 2017 2018 2019 2020 2021

CEO single figure

of remuneration

1,085,300 937,300 1,506,300 2,763,900 1,807,600 2,291,500 2,081,700 2,391,409 2,538,817 3,927,371

Annual bonus payout (as a %

of maximum opportunity)

26.8% 61.2% 69.39% 84.54% 49.12% 92.35% 82.63% 92.5% 96.0% 96.0%

Annual bonus 161,000 367,000 451,035 803,200 319,280 606,047 557,753 636,863 674,400 825,120

PSP vesting (as a % of

maximum opportunity)

58.5% 0% 35.34% 71.5% 85.13% 68.01% 65.68% 80.78% 70.00% 100%

PSP vesting 385,355 – 478,679 1,384,500 891,800 1,101,400 923,699 1,150,120 1,398,898 2,495,959

Percentage change in remuneration of Board Directors and employees

The table below sets out the percentage change in the salary, benefits and annual bonus of all Executive and Non-Executive Directors compared

to the average amount paid to Computacenter employees in the UK, between the year ended 31 December 2020 and 31 December 2021.

% change in remuneration between 2019 and 2020 % change in remuneration between 2020 and 2021

Salary/Fee Benefits9 Annual bonus Salary/Fee Benefits Annual bonus

Executive

Mike Norris (23.47%)

(34.35)% 5.89% 35.94%

(24.32)% 22.35%

Tony Conophy (23.53)%

(5.99)% 4.20% 35.97%

2.52% 27.73%

Non-Executive

Peter Ryan 39.72%

– – 2.00% – –

Pauline Campbell n/a

– – n/a

– –

Rene Haas 172.28%

– – 2.00% – –

Philip Hulme (75.00)%

– – 308.00%

– –

Ljiljana Mitic 59.42%

– – 2.00% – –

Peter Ogden (75.00)%

– – 308.00%

– –

Minnow Powell 3.69%

– – (23.56)%

– –

Ros Rivaz 3.69% – – 2.05% – –

Employees

Computacenter UK-based employees 3.26%

(10.39)% (3.48)%

4.19%

(4.71)% (0.70)%

1. As disclosed last year, the base salary that the Directors were eligible for was increased by 2 per cent from 1 January 2021. The significant percentage increase for the CEO and Group FD

reflects the voluntary temporary reduction in base salary to nil for the period 1 April 2020 until 30 June 2020.

2. Pauline Campbell was appointed to the Board on 16 August 2021 and assumed the role of Chair of the Audit Committee on 30 September 2021.

3. The significant percentage increase for Philip Hulme and Peter Ogden reflects their decision to waive the basic fees due to them as Founder Non-Executive Directors from 1 April 2020

until 31 December 2020, as announced by the Company on 6 April 2020.

4. Minnow Powell stepped down from the Board on 30 September 2021.

5. Peter Ryan was appointed to the role of Chair on 16 May 2019. The increase reflects that he was only paid the Chair’s fee for part of the prior year.

6. Rene Haas was appointed to the Board on 20 August 2019.

7. Ljiljana Mitic was appointed to the Board on 16 May 2019.

8. The average change in salary for UK-based employees takes account of promotions, pay reviews, changed in terms and conditions, and benchmark increases across the year, excluding

Executive and Non-Executive Directors who have been reported separately above.

9. The reduction in benefits reflects reduced travel costs in the year, a lower number of employees with cars and those shifting to greener vehicles with lower benefit in kind values has

had the effect of reducing the average taxable benefit spend year on year.

10. Although total bonus spend was 4 per cent higher than 2019, increasing employee numbers overall has reduced the average spend per employee by 3.48 per cent. This figure includes

the one-off ‘EPS bonus’ as described in the Finance Directors’ Statement on page 63 of the 2020 Annual Report and Accounts.

On the basis that Computacenter plc (the Parent Company) does not employ any staff, the comparator group of Computacenter UK-based

employees was chosen on a voluntary basis as the Committee believes it provides a sufficiently large comparator group based on a similar

incentive structure to the CEO and reduces any distortion arising from currency and cost of living differences in other geographies in which the

Group operates.

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Governance Report

Annual Report and Accounts 2021

CEO pay ratio

The CEO pay ratio table shows the ratio of pay between the CEO of Computacenter and Computacenter’s UK employees. The ratio compares the

total remuneration of the CEO against the total remuneration of the median UK employee and those who sit at the 25th and 75th percentiles

(lower and upper quartiles).

Computacenter’s CEO pay ratios have been calculated using Option B, a continuation of approach from the previous two years and based on the

availability of data at the time the Annual Report and Accounts is published. This uses the most recent gender pay data to identify the three

employees that represent our 25th, 50th and 75th percentile employees. As an additional sense check the salary and total pay and benefits of a

number of employees either side of these 25th, 50th and 75th employees were also reviewed with an adjustment made to ensure that the figures

used were representative of an employee at these positions. Following this review the total pay and benefits figure for the 75th employee was

adjusted to include a car allowance as being more representative of an employee at that level.

The total remuneration for these individuals has been calculated based on all components of pay for 2021, including base salary, performance-

based pay, pension and benefits. The Committee considers that this provides an outcome that is representative of the employees at these

pay levels.

Where an identified employee received a pro-rated component of pay, their figures have been converted to a full-year equivalent. No other

adjustments were necessary other than the adjustments already set out above, and no elements of employee remuneration have been excluded

from the pay ratio calculation.

The day by reference to which the Company determined the 25th, 50th and 75th percentile employees was 31 December 2021.

The Committee believes that the median pay ratio is consistent with the pay, reward and progression policies for the Company’s UK employees

taken as a whole. Computacenter’s employer pension contributions, Company-paid benefits and voluntary benefit scheme options are consistent

for all UK employees, including the CEO. In addition, the CEO is eligible to participate in the Company’s annual bonus and Performance Share Plan, in

line with other members of the senior Management team. The value of these variable pay awards is affected by performance delivered and, in the

case of the Performance Share Plan, share price movement over three years.

From 2020 to 2021 the ratio between the total remuneration of the CEO and the total remuneration of UK employees has increased. This reflects

Company and share price performance, as the CEO’s remuneration is heavily performance linked. The increase in the pay ratio from 2020 to 2021

is primarily driven by the 189.3 per cent increase in share price over the three-year PSP performance period together with the higher level of

vesting under the PSP, both of which reflect performance delivered over the period. The pay ratio movement from 2020 has also been impacted by

Mike Norris and Tony Conophy’s election to reduce their salaries to zero from 1 April 2020 until 30 June 2020.

Year Method 25th percentile pay ratio Median pay ratio 75th percentile pay ratio

2021 Option B 110:1 80:1 53:1

2020

Option B 69:1 57:1 34:1

2019 Option B 76:1 51:1 36:1

1. The 2020 ratios have been updated to reflect the actual CEO’s 2020 single figure total using the share price on the date of vesting, further detail of which is set out in the notes to the

single figure table on page 115.

2021 salary and total pay and benefits – all employee figures

Employees 25th percentile Median 75th percentile

Total pay and benefits

£35,857 £49,353 £73,618

Salary £31,153 £42,079 £66,000

Relative importance of spend on pay

The charts below show the relative expenditure of the Group on the pay of its employees, against certain other key financial indicators of the Group:

Expenditure on Group employees’ pay

2021

2020

£906.3m

£809.6m

Shareholder distributions

2021

2020

£62.4m

£13.9m

Group adjusted

profit before tax

2021

2020

£255.6m

£200.5m

* As well as information prescribed by current remuneration reporting regulations, Group adjusted

profit before tax has also been included as this is deemed to be a key performance

indicator of the Group which is linked to the delivery of value to our shareholders.

Directors’ Remuneration

Report continued

124

Statement of implementation of remuneration policy in the following financial year

Executive Director Remuneration for 2022 will be in accordance with the terms of our Directors’ Remuneration Policy table, as set out on pages

109 to 113 of this report.

2022 base salaries

The base salary of the CEO will increase by 13.4 per cent to £650,000. The rationale for the increase in the CEO’s base salary is described on page 107.

The base salary of the FD will increase by 2.6 per cent to £381,000 from 1 January 2022.

2022 annual bonus

The performance measures and weightings for the 2022 annual bonus will be as follows:

Mike Norris – CEO

(2022)

Tony Conophy – FD

(2022)

1 2 3 4 5 1 2 3 4 5

1. Group adjusted

profit before tax (up to 50%)

2. Services contribution growth (up to 10%)

3. Cash balance (up to 10%)

4. Cost savings (up to 10%)

5. Personal objectives (up to 20%)

1. Group adjusted

profit before tax (up to 50%)

2. Services contribution growth (up to 10%)

3. Cash balance (up to 10%)

4. Cost savings (up to 10%)

5. Personal objectives (up to 20%)

The measures for 2022 have been set to be challenging relative to our 2022 business plan. The targets themselves, as they relate to the 2022 financial

year, are deemed by the Committee to be commercially sensitive and therefore have not been disclosed. They will be disclosed at such time as the

Committee no longer deems them to be so, and it currently anticipates including these in the Company’s 2022 Annual Report and Accounts.

The maximum bonus opportunity for the Executive Directors in 2022 will be 150 per cent of base salary for the CEO and 125 per cent of base salary for

the FD. These awards will be subject to deferral in line with our Policy on page 109.

2022 PSP

The award levels for the Executive Directors in the 2022 financial year are 200 per cent of salary for the CEO and 175 per cent of salary for the FD.

The 2022 financial year PSP awards will be subject to the same performance measures and targets as for the 2021 PSP awards as set out above.

The base year used to assess EPS performance will be consistent with that used to determine vesting of the 2019 PSP awards, and exclude the

impact of the one-off tax items noted elsewhere in the report. The 2022 financial year PSP awards will be subject to a two-year holding period.

Statement of voting

The results of voting on the Directors’ Remuneration Report at the Company’s 2021 AGM are outlined in the table below:

Votes cast in favour/discretionary Votes cast against Total votes cast Votes withheld/abstentions

98,562,392 99.95% 47,018 0.05% 98,609,410 6,553

The results of voting on the Remuneration Policy at the Company’s 2020 Annual General Meeting are outlined in the table below:

Votes cast in favour/discretionary Votes cast against Total votes cast Votes withheld/abstentions

97,606,813 98.65% 1,339,845 1.35% 98,946,658 2,153

The Committee is grateful for the continuing support of shareholders. To ensure that this continues, the Committee will consult with shareholders

on major issues where it is appropriate to do so. It will also continue to adhere to its underlying principle of decision-making that Executive

Directors’ pay must be linked to performance and the sustainable delivery of value to our shareholders.

This Annual Report on Remuneration has been approved by the Board of Directors and signed on its behalf by:

Ros Rivaz

Chair of the Remuneration Committee

23 March 2022

125

Governance Report

Annual Report and Accounts 2021

Results and dividends

The Group’s Consolidated Income Statement is

on page 140. The Group’s activities resulted in

a profit before tax of £248.0 million (2020:

£206.6 million). The Group profit for the year,

attributable to equity shareholders, amounted

to £185.3 million (2020: £153.8 million).

The Directors recommend a final dividend

of 49.4 pence per share (2020: 38.4 pence

per share) totalling £56.4 million (2020:

£43.8 million). Subject to shareholder

approval, this will be paid on Friday 8 July

2022, to shareholders on the register at the

close of business on Friday 10 June 2022.

The shares will be marked ex-dividend on

Thursday 9 June 2022. This is in line with the

normal dividend procedure timetable, as set

by the London Stock Exchange.

Following the payment of an interim dividend

for 2021 of 16.9 pence per share on

22 October 2021, the total dividend for 2021

will be 66.3 pence per share. The Board has

consistently applied the Company’s dividend

policy, which states that the total dividend will

be 2 to 2.5 times covered by adjusted1 diluted

earnings per share. Further detail on the

Company’s dividend policy can be found

within the Group Finance Director’s review

on page 74.

Dividends are recognised in the accounts in

the year in which they are paid, or in the case

of a final dividend, when approved by the

shareholders. As such, the amount recognised

in the 2021 Annual Report and Accounts, as

described in note 14, is made up of the 2021

interim dividend (16.9 pence per share) and

the 2020 final dividend (38.4 pence per share).

Articles of Association

The Company’s Articles of Association set out

the procedures for governing the Company.

The Articles of Association may only be

amended by a special resolution at a general

meeting of the shareholders.

Voting rights

Shareholders are entitled to attend and vote

at any general meeting of the Company. It is

the Company’s practice to hold a poll on every

resolution at general meetings. Every member

present in person or by proxy has, upon a poll,

one vote for every share held. In the case of

joint holders of a share the vote of the senior

who tenders a vote, whether in person or

by proxy, shall be accepted to the exclusion

of the votes of the other joint holders and,

for this purpose, seniority shall be determined

by the order in which the names stand in

the Register of Members in respect of the

joint holdings.

The Directors present their report, together

with the audited accounts of Computacenter

plc and its subsidiary companies (the Group)

for the year ended 31 December 2021.

Computacenter plc is incorporated as a public

limited company and is registered in England

and Wales with the registered number

3110569. Computacenter plc’s registered

office address is Hatfield Avenue, Hatfield,

Hertfordshire, AL10 9TW. The Company’s

registrar is Equiniti Limited, which is situated

at Aspect House, Spencer Road, Lancing, West

Sussex, BN99 6DA.

The pages from the inside front cover to

131 of this Annual Report and Accounts are

incorporated by reference into the Directors’

Report, which has been drawn up and

presented in accordance with English

company law, and the liabilities of the

Directors in connection with that report shall

be subject to the limitations and restrictions

provided by such law.

Strategic Report

The Companies Act 2006 requires the Group

to prepare a Strategic Report, which

commences at the start of this Annual Report

and Accounts up to page 85. The Strategic

Report includes information about the Group’s

operations and business model, particulars

of all important events affecting the Company

or its subsidiaries, the Group’s financial

performance in the year and likely future

developments, strategic priorities, principal

risks and information regarding the Group’s

sustainability strategy.

Corporate governance

Under Disclosure and Transparency Rule 7.2,

the Company is required to include a

Corporate Governance Report within the

Directors’ Report.

Information on our corporate governance

practices can be found in the Corporate

Governance Report on pages 90 to 94, and the

reports of the Audit, Remuneration and

Nomination Committees on pages 99, 106 and

95 respectively, all of which are incorporated

into the Directors’ Report by reference.

Management Report

This Directors’ Report, together with the other

reports, forms the Management Report for

the purposes of Disclosure and Transparency

Rule 4.1.8.

Dividend rights

Shareholders may by ordinary resolution

declare dividends, but the amount of the

dividend may not exceed the amount

recommended by the Board.

Transfer of shares

There are no specific restrictions on the size

of a holding, nor on the transfer of shares

which are both governed by the general

provisions of the Company’s Articles and

prevailing legislation. The Directors are not

aware of any agreements between holders

of the Company’s shares that may result in

restrictions on the transfer of securities or on

voting rights at any meeting of the Company.

A copy of the Articles of Association is

available on the Company’s website at

investors.computacenter.com.

Stakeholder engagement

The Board is aware that its actions and

decisions impact our stakeholders. Effective

engagement with stakeholders is important

for the Group. In order to comply with section

172 of the Companies Act 2006, each Director

is required to act in a way that he or she

considers will promote the success of the

Company whilst taking into account the

interests of stakeholders. The Directors must

also include a statement in the Annual Report

and Accounts explaining how they have

discharged this duty during the year. The

Group’s key stakeholders are identified on

pages 66 and 69 of the Strategic Report and

the statement of compliance with Section 172

is set out on page 65.

Directors and Directors’ authority

The Directors who served during the year

ended 31 December 2021 were Tony Conophy,

Pauline Campbell, Rene Haas, Philip Hulme,

Ljiljana Mitic, Mike Norris, Peter Ogden, Minnow

Powell, Ros Rivaz and Peter Ryan. Biographical

details of each Director, as at 31 December

2021, are given on pages 88 and 89.

The Company’s Articles of Association require

that at each AGM, those Directors who were

appointed since the last AGM retire, as well as

one-third of the Directors who have been the

longest serving. The Board has decided, in

accordance with the Code, that all Directors

will retire at each forthcoming AGM and offer

themselves for re-election. The Nomination

Committee has considered each Director who

is standing for re-election and recommends

their re-election. Further details on the

Committee’s recommendations for the

re-election of the Directors are set out in the

Notice of AGM, which summarises the skills

and experience that the Directors bring to

the Board.

Directors’ report

126

Subject to applicable law and the Company’s

Articles of Association, the Directors may

exercise all of the powers of the Company.

The Company’s Articles of Association provide

for a Board of Directors consisting of between

three and 20 Directors, who manage the

business and affairs of the Company. The

Directors may appoint additional or

replacement Directors, who shall serve until

the following AGM of the Company, at which

point they will be required to stand for election

by the members. A Director may be removed

from office by the Company as provided for by

applicable law, in certain circumstances set

out in the Company’s Articles of Association,

and at a general meeting of the Company,

by the passing of an Ordinary Resolution

(provided special notice has been given in

accordance with the Companies Act 2006).

Members have previously approved a

resolution to give the Directors authority to

allot shares, and a renewal of this authority

is proposed at the 2022 AGM. This authority

allows the Directors to allot shares up to the

maximum amount stated in the Notice of AGM

(approximately one-third of the issued share

capital). In addition, the Company may not

allot shares for cash (unless pursuant to an

employee share scheme) without first making

an offer to existing shareholders in proportion

to their existing holdings. This is known as

rights of pre-emption. Two resolutions

allowing a limited waiver of these rights were

passed by the members at last year’s AGM.

Members also approved a resolution giving

delegated authority allowing the Company to

make market purchases of its own shares, up

to a maximum of 10 per cent of the Company’s

issued share capital, subject to certain

conditions including price of purchase,

amongst others. Each of these standard

authorities will expire on the earlier of

30 June 2022 or the conclusion of the

Company’s 2022 AGM. The Directors will seek to

renew each of the authorities at the 2022 AGM,

and full details are provided in the Notice of

AGM. As at 28 February 2022, none of these

authorities approved by shareholders at the

2021 AGM had been exercised.

Directors’ indemnities

The Company has executed deeds of

indemnity with each of the Directors.

These deeds contain qualifying third-party

indemnity provisions, indemnifying the

Directors to the extent permitted by law,

and remain in force at the date of this report.

The indemnities are uncapped and cover all

costs, charges, losses and liabilities the

Directors may incur to third parties, in the

course of acting as Directors of the Company

or its subsidiaries. In addition, the Group

maintains liability insurance for its Directors

and officers.

Directors’ conflicts of interest

The Directors are required to notify the

Company Secretary of any situations

(appointments, holdings or otherwise), or any

changes to such, which may give rise to an

actual or potential conflict of interest with the

Company. These notifications are then

reviewed by the Board and recorded in a

If appropriate, they are then considered further

by the Directors who are not conflicted, who

may authorise the position. The register of

notifications and authorisations is reviewed by

the Board twice a year. Where the Board

approves an actual or potential conflict, the

conflicted Director cannot participate in any

discussion or decision affected by the conflict.

Directors’ interests in shares

The Directors’ interests in the Company’s share capital, at the start and end of the reporting period, were as follows:

As at 31 December 2021

As at 1 January 2021

or date of appointment

Number of

ordinary shares

Beneficial

Number of

ordinary shares

Non-beneficial

Number of

ordinary shares

Beneficial

Number of

ordinary shares

Non-beneficial

Executive Directors

Mike Norris 1,134,214 – 1,119,504 –

Tony Conophy 1,873,556 – 1,858,812 –

Non-Executive Directors

Peter Ryan 900 – 900 –

Pauline Campbell

– – N/A N/A

Rene Haas – – – –

Philip Hulme 9,196,695 9,198,293 9,361,695 9,033,293

Ljiljana Mitic – – – –

Peter Ogden 18,699,389 8,103,356 18,699,389 8,103,356

Minnow Powell

1,340 – 1,340 –

Ros Rivaz 2,181 – 1,382 –

* Pauline Campbell joined the Board on 16 August 2021 and Minnow Powell retired from the Board on 30 September 2021.

Major interests in shares and voting rights

As at 31 December 2021, the Company had been notified under the FCA’s Disclosure and Transparency Rules of the following interests in its total

voting rights, which are equal to or greater than three per cent:

Name of major shareholder Percentage of total voting rights held Date of notification

JPMorgan Asset Management (UK) Limited 5.44 13 December 2021

JPMorgan Asset Management (UK) Limited 5.36 14 December 2021

Between 31 December 2021 and the date of this report, JP Morgan Asset Management (UK) Limited notified the Company on 11 January 2022 that

its holding had decreased to an interest over 5.19 per cent of the Company’s total voting rights, as at the date of notification.

An updated list of the Company’s major shareholders, based on information available to the Company, is available at investors.computacenter.com.

127

Governance Report

Annual Report and Accounts 2021

Directors’ Report continued

Capital structure and rights attaching

to shares

As at 28 February 2022, there were

122,687,970 fully paid ordinary shares in issue,

of which the Company held 8,546,861 ordinary

shares in treasury, representing 6.97 per cent

of voting rights. The total number of voting

rights in the Company, which shareholders

may use as the denominator when calculating

if they are required to notify their interest in

the Company or a change to that interest,

under the Disclosure and Transparency Rules,

is therefore 114,141,109.

The rights attaching to each of the Company’s

ordinary shares and deferred shares are set

out in its Articles of Association. As at 28

February 2022, there were no deferred shares

in issue.

The holders of ordinary shares are entitled,

subject to applicable law and the Company’s

Articles of Association, to:

• have shareholder documents made

available to them, including notice of any

general meetings of the Company; and

• to attend, speak and exercise voting rights

at general meetings of the Company, either

in person or by proxy.

There are no specific restrictions on the transfer

of securities in the Company, which is governed

by its Articles of Association and prevailing

legislation. The Company is not aware of any

arrangements between shareholders which

may result in restrictions on the transfer of

securities or other voting rights.

Pursuant to the Company’s share plans, there

is an employee benefit trust which, as at the

year end, held a total of 920,218 ordinary

shares of 7

pence each, representing

approximately 0.75 per cent of the issued

share capital. During the year, the trust

purchased a total of 988,355 shares, so it

could satisfy the maturities occurring

pursuant to these share option plans. When

the trust holds shares before transferring

them to participants then, in line with good

practice, the Trustees do not exercise the

associated voting rights. The Trustees also

have a dividend waiver in place in respect of

shares which are the beneficial property of

the trust. During 2021, no ordinary shares in

the Company were issued for cash to satisfy

the exercise of options.

The employee share plans have change of

control provisions that would be triggered if

another entity or individual takes control of

the Company. Participants may, in certain

circumstances, be allowed to exchange their

existing options for options of an equivalent

value over shares in the acquiring company.

Alternatively, the options may vest early. Early

vesting under the executive schemes will

generally be on a time-apportioned basis.

Under the Sharesave scheme, employees will

only be able to exercise their options to the

extent that their accumulated savings allow

at that time.

During the period, no ordinary shares were

purchased for cancellation.

Significant agreements and relationships

Details regarding the status of the Group’s

various borrowing facilities are provided in

the Group Finance Director’s review on pages

75 to 78. These agreements each include a

change of control provision, which may result

in the facility being withdrawn or amended

upon a change of control of the Company. The

Group’s longer-term Services contracts may

also contain change of control clauses that

allow a counterparty to terminate the relevant

contract in the event of a change of control of

the Company.

The Company does not have any agreements

with any Director or employee that would

provide compensation for loss of office or

employment resulting from a change of

control on takeover, except in relation to the

Company’s share schemes and plans, as

described above.

Financial instruments

The Group’s financial risk management

objectives and policies are discussed in the

Group Finance Director’s review on page 76.

Related party transactions

Internal controls are in place to ensure that any

related party transactions involving Directors

or their connected persons are carried out on

an arm’s length basis and are properly

recorded and disclosed where appropriate.

Employee share schemes

The Company operates a Performance Share

Plan (PSP) to incentivise employees. During

the year, 361,350 ordinary shares of 7

pence

each were conditionally awarded (2020:

647,430 shares). At the year end, 1,947,782

shares remained outstanding under this

scheme (2020: 1,883,164 shares). During the

year, 226,689 shares were transferred to

participants and 70,043 shares lapsed. In

addition, the Company operates a Sharesave

scheme for the benefit of employees. As at the

year end, 3,496,799 options granted under the

Sharesave scheme remained outstanding

(2020: 3,726,208).

On 21 March 2021, in accordance with the

rules of the Computacenter 2017 Deferred

Bonus Plan, the Company granted 23,369

conditional awards of ordinary shares of

pence each (2020: 48,606).

Corporate sustainable development and

political donations

The Board recognises that acting in a socially

responsible way benefits the community, our

customers, shareholders, the environment

and employees alike. Further information can

be found in the report on pages 44 to 51, which

covers matters regarding health and safety,

equal opportunities, employee involvement

and employee development.

During the year, the Group did not make any

political donations or incur any political

expenditure within the meaning of Sections

362 to 379 of the Companies Act 2006.

128

Equal opportunities

The Group acknowledges the importance of

equality and diversity and is committed to

equal opportunities throughout the

workplace. The Group’s policies for

recruitment, training, career development

and promotion of employees, are based purely

on the suitability of the employee and give

those who may be disabled equal treatment

to their able-bodied colleagues. Where an

employee becomes disabled after joining the

Group, all efforts are made to enable that

employee to continue in their current job.

However, if, due to the specific circumstances,

it is not possible for an employee to continue

in their current job, they will be given suitable

training for alternative employment within the

Group or elsewhere.

The Group monitors and regularly reviews its

policies and practices to ensure that it meets

current legislative requirements, as well as its

own internal standards. The Group is

committed to making full use of the talents

and resources of all its employees and to

providing a healthy environment that

encourages productive and mutually

respectful working relationships. Policies

dealing with equal opportunities are in place

in all parts of the Group, which take account

of the Group’s overall commitment and also

address local regulatory requirements.

Employee involvement and development

The Group is committed to involving all

employees in significant business issues,

especially matters which affect their work and

working environment. A variety of methods are

used to engage with employees, including team

briefings, intranet, email and in-house

publications. The Group uses one or more of

these channels to brief employees on the

Group’s performance and the financial and

economic factors affecting it. Team briefings

are a primary method for engaging and

consulting with employees, with managers

tasked with ensuring regular information

sharing, discussion and feedback.

Employee consultative forums exist in each

Group country, to consult staff on major

issues affecting employment and matters of

policy, and to enable Management to seek

employees’ views on a wide range of business

matters. Where there are cross-jurisdictional

issues to discuss, a European forum is

engaged, made up of representatives from

each country forum. The Senior Independent

Director attends at least one meeting per year

of this European forum, to engage directly

with employee representatives and report a

summary of this engagement to the Board.

The Group regularly reviews employees’

performance through a formal review

process, to identify areas for development.

Managers are responsible for setting and

reviewing personal objectives, aligned to

corporate and functional goals. The Board

closely oversees and monitors Management

skills and the development of talent, to meet

the Group’s current and future needs. The

Board directly monitors and closely reviews

succession and plans for developing identified

key senior managers.

The development of employee skills and

careers, as well as the communication of the

Group’s goals, are driven by our Winning

Together processes and tools. Annual

assessments via our Winning Together

processes and tools are a formal requirement

of all managers.

The Group operates a Save As You Earn (SAYE)

share scheme for eligible employees, who are

encouraged to save a fixed monthly sum for

a period of either three and/or five years.

When the scheme matures, participants can

purchase shares in the Company at a price set

at the start of the savings period.

Further information can be found in the report

on pages 44 to 51 covering employee

involvement and employee development, and in

the Stakeholder Engagement section on page

67, which explains how the Company and Board

have engaged with and considered employees.

Engagement with suppliers, customers

and others

The required disclosure on engagement with

suppliers, customers and other stakeholders

can be found in the Stakeholder Engagement

section on pages 66 to 69.

Business ethics

The Group Ethics policy commits employees to

the highest standards of ethical behaviour in

respect of customers, suppliers, colleagues

and other stakeholders in the business. The

policy includes a requirement for all employees

to report abuses or non-conformance with

the policy and sets out the procedures to

be followed.

Going concern

The Directors’ statement regarding adoption

of the going concern basis of accounting in

preparation of the annual Consolidated

Financial Statements is set out within the

Strategic Report on page 78.

Viability Statement

The Directors’ statement regarding the

long-term viability of the Company is set out

within the Strategic Report on pages 78 to 79.

Greenhouse gas emissions

The Company is required to state the annual

quantity of emissions in tonnes of carbon

dioxide equivalent from Group activities, and

to provide details of its energy usage. Details

can be found in the Strategic Report on pages

52 to 61. Further details of our environmental

policies and programmes can be found on our

corporate website computacenter.com. The

Group’s disclosure in response to the Task

Force on Climate-related Financial Disclosures

can be found on pages 62 to 64.

Auditor

A resolution to reappoint KPMG LLP as auditor

of the Group was approved by the Company’s

shareholders at the Company’s 2021 AGM.

Resolutions to reappoint KPMG LLP as the

auditor of the Group, as well as to authorise

the Directors to determine its remuneration

for fulfilling that role, will be put to shareholders

at the forthcoming 2022 AGM.

Disclosure of information to auditor

The Directors who held office as at the date of

approval of this Directors’ Report confirm that,

so far as they are aware, there is no relevant

audit information of which the Company’s

auditor is aware; and each Director has taken

all of the steps that he/she ought to have

taken as a Director to make himself/herself

aware of any relevant audit information and

to establish that the Company’s auditor is

aware of that information.

Annual General Meeting

The Board currently intends to hold the AGM

on 19 May 2022 at 11.30am. The arrangements

for the Company’s 2022 AGM, and details of

the resolutions to be proposed, together

with explanatory notes, will be set out in the

Notice of AGM to be published on the

Company’s website.

129

Governance Report

Annual Report and Accounts 2021

Directors’ Report continued

Listing rule (LR) disclosures

The information required to be disclosed by LR 9.8.4R is set out below, along with cross references indicating where the relevant information

is otherwise set out in the Annual Report and Accounts:

Interest capitalised N/A

Publication of unaudited financial information N/A

Details of performance share plans N/A

Waiver of emoluments by a Director N/A

Waiver of future emoluments by a Director N/A

Non pre-emptive issues of equity for cash N/A

Non pre-emptive issues of equity for cash in relation to major

subsidiary undertakings

N/A

Contracts of significance Details of significant contracts are set out in the Group Finance Director’s

review on pages 70 to 78. Details of transactions with related parties are

set out on page 193 in note 34 to the Consolidated Financial Statements.

Provision of services by a controlling shareholder N/A

Shareholder waiver of dividends The Trustees of the Company’s employee share schemes have a dividend

waiver in place in respect of shares which are the beneficial property of

each of the trusts.

Shareholder waiver of future dividends The Trustees of the Company’s employee share schemes have a dividend

waiver in place in respect of shares which are the beneficial property of

each of the trusts.

Agreements with controlling shareholder Any person who exercises or controls on their own or together with any

person with whom they are acting in concert, 30 per cent or more of the

votes able to be cast on all or substantially all matters at general

meetings are known as ‘controlling shareholders’. The Financial Conduct

Authority’s Listing Rules now require companies with controlling

shareholders to enter into a written and legally binding agreement

(a Relationship Agreement) which is intended to ensure that the

controlling shareholder complies with certain ‘independence-related’

provisions. The Company confirms that it has undertaken a process

following the reporting period to review whether it has any ‘controlling

shareholders’. Following this process, it was determined that there was

no requirement on the Company to enter into a Relationship Agreement

with any of its shareholders. The Company confirms that this remained

the case as at 31 December 2021, but will keep the matter under review.

MJ Norris FA Conophy

Chief Executive Officer Group Finance Director

23 March 2022 23 March 2022

130

Directors’ Responsibilities

Statement of Directors’ Responsibilities

in respect of the Annual Report and the

Financial Statements

The Directors are responsible for preparing

the Annual Report and the Group and Parent

Company financial statements in accordance

with applicable law and regulations.

Company law requires the Directors to

prepare Group and Parent Company financial

statements for each financial year. Under that

law they are required to prepare the Group

financial statements in accordance with

UK-adopted international accounting

standards and applicable law and have elected

to prepare the Parent Company financial

statements in accordance with UK accounting

standards and applicable law, including FRS 101

Reduced Disclosure Framework.

Under company law the directors must not

approve the financial statements unless they

are satisfied that they give a true and fair view

of the state of affairs of the Group and Parent

Company and of the Group’s profit or loss for

that period. In preparing each of the Group

and parent Company financial statements,

the Directors are required to:

• select suitable accounting policies and then

apply them consistently;

• make judgements and estimates that are

reasonable, relevant and reliable;

• for the Group financial statements, state

whether they have been prepared in

accordance with UK-adopted international

accounting standards;

• for the parent Company financial

statements, state whether applicable UK

accounting standards have been followed,

subject to any material departures

disclosed and explained in the parent

Company financial statements;

• assess the Group and Parent Company’s

ability to continue as a going concern,

disclosing, as applicable, matters related to

going concern; and

• use the going concern basis of accounting

unless they either intend to liquidate the

Group or the parent Company or to cease

operations, or have no realistic alternative

but to do so.

The Directors are responsible for keeping

adequate accounting records that are

sufficient to show and explain the Parent

Company’s transactions and disclose with

reasonable accuracy at any time the financial

position of the Parent Company and enable

them to ensure that its financial statements

comply with the Companies Act 2006. They are

responsible for such internal control as they

determine is necessary to enable the

preparation of financial statements that are

free from material misstatement, whether

due to fraud or error, and have general

responsibility for taking such steps as are

reasonably open to them to safeguard the

assets of the Group and to prevent and detect

fraud and other irregularities.

Under applicable law and regulations, the

directors are also responsible for preparing a

Strategic Report, Directors’ Report, Directors’

Remuneration Report and Corporate

Governance Statement that complies with

that law and those regulations.

The Directors are responsible for the

maintenance and integrity of the corporate

and financial information included on the

company’s website. Legislation in the UK

governing the preparation and dissemination

of financial statements may differ from

legislation in other jurisdictions.

Responsibility statement of the Directors in

respect of the Annual Report and Accounts

We confirm that to the best of our knowledge:

• the financial statements, prepared in

accordance with the applicable set of

accounting standards, give a true and fair

view of the assets, liabilities, financial

position and profit or loss of the Company

and the undertakings included in the

consolidation taken as a whole; and

• the Strategic Report and Directors’ Report

include a fair review of the development

and performance of the business and the

position of the issuer and the undertakings

included in the consolidation taken as

a whole, together with a description of

the principal risks and uncertainties that

they face.

We consider the annual report and accounts,

taken as a whole, is fair, balanced and

understandable and provides the information

necessary for shareholders to assess the

Group’s position and performance, business

model and strategy.

The Annual Report from inside front cover

to page 131 was approved by the Board of

Directors and authorised for issue on

23 March 2022 and signed for and on behalf

of the Board by:

Mike Norris Tony Conophy

Chief Executive Group Finance

Officer Director

131

Governance Report

Annual Report and Accounts 2021

FINANCIAL

STATEMENTS

133 Independent Auditor’s Report to the

members of Computacenter plc

140 Consolidated Income Statement

141 Consolidated Statement of

Comprehensive Income

142 Consolidated Balance Sheet

143 Consolidated Statement of Changes

in Equity

144 Consolidated Cash Flow Statement

145 Notes to the Consolidated Financial

Statements

194 Company Balance Sheet

195 Company Statement of Changes in Equity

196 Notes to the Company Financial

Statements

202 Group five-year financial review

202 Financial calendar

203 Corporate information

204 Principal offices

132

Independent Auditor’s Report

to the members of Computacenter plc

1. Our opinion is unmodified

We have audited the financial statements of Computacenter plc (“the Company”) for the year ended 31 December 2021 which comprise the

Consolidated income statement, Consolidated statement of comprehensive income, Consolidated balance sheet, Consolidated statement of

changes in equity, Consolidated cash flow statement, Company balance sheet and Company statement of changes in equity, and the related

notes, including the accounting policies in note 2.

In our opinion:

• the financial statements give a true and fair view of the state of the Group’s and of the Parent Company’s affairs as at 31 December 2021 and

of the Group’s profit for the year then ended;

• the Group financial statements have been properly prepared in accordance with UK-adopted international accounting standards;

• the Parent Company financial statements have been properly prepared in accordance with UK accounting standards, including FRS 101

Reduced Disclosure Framework; and

• the financial statements have been prepared in accordance with the requirements of the Companies Act 2006.

Basis for opinion

We conducted our audit in accordance with International Standards on Auditing (UK) (“ISAs (UK)”) and applicable law. Our responsibilities are

described below. We believe that the audit evidence we have obtained is a sufficient and appropriate basis for our opinion. Our audit opinion is

consistent with our report to the Audit Committee.

We were first appointed as auditor by the shareholders on 19 May 2015. The period of total uninterrupted engagement is for the seven financial

years ended 31 December 2021. We have fulfilled our ethical responsibilities under, and we remain independent of the Group in accordance with,

UK ethical requirements including the FRC Ethical Standard as applied to listed public interest entities. No non-audit services prohibited by that

standard were provided.

Overview

Materiality: Group financial statements as a whole £12.0 million (2020: £9.0 million)

4.8 per cent of profit before tax (2020: 4.7 per cent of normalised profit before tax)

Coverage 96 per cent of Group profit before tax (2020: 95 per cent of Group normalised profit before tax)

Key audit matters vs 2020

Recurring risks Technology Sourcing bill and hold revenue cut-off < >

Recoverability of Parent Company’s investment in subsidiaries (Parent) < >

2. Key audit matters: our assessment of risks of material misstatement

When planning our audit we made an assessment of the relative significance of the key risks of material misstatement to the Group financial

statements initially without taking account of the effectiveness of controls implemented by the Group. As part of our audit planning procedures,

we presented and discussed our initial assessment of key risks to the Audit Committee and subsequently discussed changes to our assessment.

Our final risk map is shown below. We identified four key audit matters that were expected to have the greatest effect on our audit. Throughout

our audit we continually reassess the significance of each of these key audit matters. Key audit matters are those matters that, in our

professional judgement, were of most significance in the audit of the financial statements and include the most significant assessed risks of

material misstatement (whether or not due to fraud) identified by us, including those which had the greatest effect on: the overall audit strategy;

the allocation of resources in the audit; and directing the efforts of the engagement team. We summarise below, the key audit matters, in

decreasing order of audit significance, in arriving at our audit opinion above together with our key audit procedures to address those matters and

our findings from those procedures in order that the Company’s members as a body may better understand the process by which we arrived at

our audit opinion. These matters were addressed, and our findings are based on procedures undertaken, in the context of, and solely for the

purpose of, our audit of the financial statements as a whole, and in forming our opinion thereon, and consequently are incidental to that opinion,

and we do not provide a separate opinion on these matters.

133

Financial Statements

Annual Report and Accounts 2021

The risk Our response

Revenue – Technology

Sourcing Bill and Hold

revenue cut-off

(£281.9 million; 2020:

£231.3 million)

Refer to page 100 (Audit

Committee Report), page

155 (accounting policy) and

page 155 (financial

disclosures).

Technology Sourcing

revenue includes revenues

from bill and hold

transactions. This is an

arrangement in which the

Group invoices a customer

and recognises the

associated revenue, but the

entity retains physical

possession of the product

until it is transferred to the

customer at a point in time

in the future.

A customer may have

obtained control of a

product before it has been

delivered and there is

judgement required to

determine if all of the

criteria have been met to

recognise a bill and hold

sale. This gives rise to a risk

that bill and hold revenue is

recognised too early.

Our procedures included:

• Tests of detail: A sample of sales was selected on the basis of a risk-based

sampling methodology combined with a statistical sample. For each invoice

sampled, component auditors inspected bill and hold agreements, evaluated

the segregation and readiness of inventory, and considered if the reason for

the arrangement was substantive, in order to assess whether revenue had

been recognised in the appropriate period.

We performed the detailed tests above rather than seeking to rely on any of the

Group’s controls because our knowledge of the design of these controls

indicated that we would be unlikely to obtain the required evidence to support

reliance on controls.

Our findings

• In determining the treatment of Technology Sourcing bill and hold revenue

cut-off there is room for judgement and we found that within that, the Group’s

judgement was balanced (2020: balanced).

Magnitude of potential impact

Likelihood of occurrence

Lower

Higher

Key audit matter

Intangible assets useful

economic lives

Technology Sourcing

bill and hold revenue

cut-off

Technology Sourcing

revenue recognition

Principal versus Agent -

software license reselling

Other financial statement risk

Presumed fraud risk per auditing standards

Bad debt exposure

Tax positions and

transfer pricing

Fraud risk from Management

override of controls

FusionStorm

ERP migration

Professional Services and

Managed Services - loss

making contracts

CC NS ERP migration

and accounting flows

Presentation

of alternative

performance measures

Recoverability of Parent

Company’s investment in

subsidiaries (Parent)

Going Concern

Key audit matter & Presumed fraud risk per auditing standards

Independent Auditor’s Report continued

to the members of Computacenter plc

134

The risk Our response

Recoverability of Parent

Company’s investment

in subsidiaries

(£443.0 million; 2020:

£397.1 million)

Refer to page 102 (Audit

Committee Report), page

197 (accounting policy) and

page 199 (financial

disclosures).

Low risk, high value:

The carrying amount of

the Parent Company’s

investments in subsidiaries

represents 93.8 per cent

(2020: 75 per cent) of the

Company’s total assets.

Their recoverability is not at

a high risk of significant

misstatement or subject

to significant judgement.

However, due to their

materiality in the context

of the Parent Company

financial statements, this is

considered to be the area

that had the greatest effect

on our overall Parent

Company audit.

Our procedures included:

• Tests of detail: We compared the carrying amount of a sample of the highest

value investments, representing 99.6 per cent (2020: 99.5 per cent) of the total

investment balance, to the relevant subsidiaries’ draft balance sheets to

identify whether their net assets, being an approximation of their minimum

recoverable amount, were in excess of their carrying amount and assessing

whether those subsidiaries have historically been profit-making.

• Assessing subsidiary audits: We assessed the work performed by

component audit teams of those subsidiaries sampled where audits are

performed and considered the results of that work on those subsidiaries’

profits and net assets.

• Our sector experience: For the investments where the carrying amount

exceeded the net asset value, we compared the carrying amount of the

investment with the expected value of the business based upon a discounted

cash flow model.

We performed the tests above rather than seeking to rely on any of the Group’s

controls because the nature of the balance meant that detailed testing is

inherently the most effective means of obtaining audit evidence.

Our findings

• We found the Group’s assessment of the recoverability of the investment in

subsidiaries to be balanced (2020: balanced).

We continue to perform procedures over

Professional Services and Managed Services

– loss-making contracts. However, as the

existing onerous contract base matures and

no new material loss-making contracts have

arisen in the period, we have not assessed

this as one of the most significant risks in our

current year audit and, therefore, it is not

separately identified in our report this year.

Last year, in response to a material

acquisition in the period, we reported the

valuation of Pivot Technology Solutions

intangible assets as a key audit matter. As

there are no material business acquisitions in

the period, we have not identified this as

a recurring risk of significant importance.

3. Our application of materiality and an

overview of the scope of our audit

Materiality for the Group financial statements

as a whole was set at £12.0 million (2020:

£9.0 million), determined with reference to

a benchmark of Group profit before tax of

£248.0 million (2020: £192.5 million

normalised for the gain on acquisition of a

subsidiary), of which it represents 4.8 per cent

(2020: 4.7 per cent).

In addition, we applied materiality of

£0.1 million (2020: £0.1 million) to related

party transactions for which we believe

misstatements of lesser amounts than

materiality for the financial statements as

a whole could be reasonably expected to

influence the company’s assessment of the

financial performance of the Group.

Materiality for the Parent Company financial

statements as a whole was set at £2.5 million

(2020: £2.5 million), determined with

reference to a benchmark of Company total

assets, of which it represents 0.5 per cent

(2020: 0.5 per cent).

In line with our audit methodology, our

procedures on individual account balances

and disclosures were performed to a lower

threshold, performance materiality, so as

to reduce to an acceptable level the risk

that individually immaterial misstatements

in individual account balances add up to

a material amount across the financial

statements as a whole.

Performance materiality was set at 75 per

cent (2020: 75 per cent) of materiality for the

Group and Parent Company financial

statements as a whole, which equates to

£9 million (2020: £6.7 million) for the Group

and £1.8 million (2020: £1.8 million) for the

Parent company. We applied this percentage

in our determination of performance

materiality because we did not identify any

factors indicating an elevated level of risk.

We agreed to report to the Audit Committee

any corrected or uncorrected identified

misstatements exceeding £0.6 million (2019:

£0.45 million), in addition to other identified

misstatements that warranted reporting on

qualitative grounds.

Group profit before tax

Group profit before tax of £248.0 million

(2020: Group profit before tax of £192.5 million,

normalised to exclude an exceptional item)

Group materiality

£12.0 million (2020: £9.0 million)

Whole financial statements materiality

£0.6 million (2020: £0.45 million)

Misstatements reported to the Audit Committee

£9.0 million (2020: £2.5 million to £6.5 million)

Range of materiality at six (2020: six)

components (£2.5 million to £8.0 million)

Group profit before tax, normalised

to exclude an exceptional item

Group materiality

135

Financial Statements

Annual Report and Accounts 2021

Independent Auditor’s Report continued

to the members of Computacenter plc

The Group operates a Shared Service Centre

(SSC) in Budapest, Hungary, the outputs of

which are included in the financial information

of three of the five reporting components it

services therefore it is not a separate

reporting component. The service centre is

subject to audit procedures, predominantly

the testing of trade receivables and trade

payables transaction processing. Additional

procedures are performed at certain

reporting components to address the audit

risks not covered by the work performed over

the shared service centres.

Of the Group’s 25 (2020: 21) reporting

components, we subjected six (2020: six) to

full scope audits for Group purposes. The

components within the scope of our work

accounted for the percentages illustrated

opposite. For the residual components, we

performed analysis at an aggregated Group

level to re-examine our assessment that

there were no significant risks of material

misstatement within these.

The Group team instructed component

auditors as to the significant areas to be

covered, including the relevant risks detailed

above and the information to be reported

back. The Group team approved the

component’s materialities, which ranged

from £2.5 million to £8.0 million (2020:

£2.5 million to £6.5 million), having regard to

the mix of size and risk profile of the Group

across the components. The work on four of

the six components (2020: four of the six

components) was performed by component

auditors and the rest, including the audit of

the Parent Company, was performed by the

Group team.

We were able to rely upon the Group’s internal

control over financial reporting in some areas

of our audit, where our controls testing

supported this approach, which enabled us

to reduce the scope of our substantive audit

work; in the other areas the scope of the audit

work performed was fully substantive.

The Group team held video calls with the

four (2020: four) overseas components

located in France, Germany, the US and

Canada, in addition to the Shared Service

Centre in Hungary (2020: France, Germany,

US, Canada and Shared Service Centre in

Hungary). At these meetings, the findings

reported to the Group team were discussed

in more detail, the audit documentation

reviewed, and any further work required by

the Group team was then performed by the

component auditor.

97%

(2020: 96%)

Group revenue

96%

(2020: 95%)

Group profit before tax

95%

(2020: 95%)

Group total assets

96%

(2020: 95%)

Group profit before exceptional items and tax

Full scope for Group audit purposes 2021 Residual componentsFull scope for Group audit purposes 2020

136

4. The impact of climate change on our audit

In planning our audit we have considered the

potential impacts of climate change on the

Group’s business and its financial statements.

The Group’s business model does not include

extractive or high pollutive activities that are

a significant contributor to climate change.

The Group’s main exposure to climate risk is

the shifting expectations from business

stakeholders to transition to low-carbon

supply chains and greater emphasis on

climate related disclosures and in the annual

report, and severe weather events disrupting

key service delivery locations.

As part of our audit we made enquires of

management and inspected minutes from

the Climate Risk Committee meetings held

throughout the year, to understand the

Group’s assessment and preparedness for

climate change. We have performed a risk

assessment on how the impact of climate

change may affect the financial statements

and our audit, and taking into account

headroom on goodwill and nature of the

Group’s assets and liabilities, there was no

significant impact on our key audit matters,

including impairment forecasts, or key areas

of our audit.

We have also read the Group’s and Parent

Company’s disclosure of climate related

information in the front half of the annual

report as set out on pages 62 to 64 and

considered consistency with the financial

statements and our audit knowledge.

5. Going concern

The Directors have prepared the financial

statements on the going concern basis as

they do not intend to liquidate the Company or

the Group or to cease their operations, and as

they have concluded that the Company’s and

the Group’s financial position means that this

is realistic. They have also concluded that

there are no material uncertainties that could

have cast significant doubt over their ability to

continue as a going concern for at least a year

from the date of approval of the financial

statements (“the going concern period”).

We used our knowledge of the Group, its

industry, and the general economic

environment to identify the inherent risks to

its business model and analysed how those

risks might affect the Group’s and Company’s

financial resources or ability to continue

operations over the going concern period.

The risk that we considered most likely to

adversely affect the Group’s and Company’s

available financial resources over this period

was lower than expected trading volumes.

We considered whether these risks could

plausibly affect the liquidity in the going concern

period by comparing severe, but plausible

downside scenarios that could arise from

these risks individually and collectively against

the level of available financial resources

indicated by the Group’s financial forecasts.

We considered whether the going concern

disclosure in note 2.1 to the financial

statements gives a full and accurate

description of the Directors’ assessment of

going concern, including the identified risks

and related sensitivities.

Our conclusions based on this work:

• we consider that the directors’ use of the

going concern basis of accounting in the

preparation of the financial statements

is appropriate;

• we have not identified, and concur with the

directors’ assessment that there is not,

a material uncertainty related to events or

conditions that, individually or collectively,

may cast significant doubt on the Group’s or

Company’s ability to continue as a going

concern for the going concern period;

• we have nothing material to add or draw

attention to in relation to the directors’

statement on page 129 of the financial

statements on the use of the going concern

basis of accounting with no material

uncertainties that may cast significant

doubt over the Group and Company’s use of

that basis for the going concern period, and

we found the going concern disclosure in

note 2.1 to be acceptable; and

• the related statement under the Listing

Rules set out on page 130 is materially

consistent with the financial statements

and our audit knowledge.

However, as we cannot predict all future

events or conditions and as subsequent

events may result in outcomes that are

inconsistent with judgements that were

reasonable at the time they were made,

the above conclusions are not a guarantee

that the Group or the Company will continue

in operation.

6. Fraud and breaches of laws and

regulations – ability to detect

Identifying and responding to risks of

material misstatement due to fraud

To identify risks of material misstatement due

to fraud (“fraud risks”) we assessed events or

conditions that could indicate an incentive or

pressure to commit fraud or provide an

opportunity to commit fraud. Our risk

assessment procedures included:

• Enquiring of directors, the audit committee,

internal audit and other key management

personnel, and inspection of policy

documentation as to the Group’s high-level

policies and procedures to prevent and

detect fraud, including the internal audit

function as well as whether they have

knowledge of any actual, suspected or

alleged fraud.

• Reading Board meeting minutes and

attending audit committee meetings.

• Reading and considering the content of

remuneration incentive schemes and

performance targets for management,

directors, and sales staff, including the EPS

target for management remuneration.

• Using analytical procedures to identify any

unusual or unexpected relationships.

We communicated identified fraud risks

throughout the audit team and remained alert

to any indications of fraud throughout the

audit. This included communication from the

Group to full scope component audit teams of

relevant fraud risks identified at the Group

level and request to full scope component

audit teams to report to the Group audit team

any instances of fraud that could give rise to

a material misstatement at Group level.

As required by auditing standards, we

performed procedures to address the risk of

management override of controls and the risk

of fraudulent revenue recognition, in particular

the risk that Technology sourcing bill and hold

sales are recorded in the wrong period and

the risk that Group and component

management may be in a position to make

inappropriate accounting entries. On this audit

we do not believe there is a fraud risk related to

revenue recognition of Managed Services,

Professional Services and non-bill and hold

Technology Sourcing because the revenue

recognition policy is simple and involves a low

degree of estimation and judgement.

We did not identify any additional fraud risks.

Further detail in respect of Technology

Sourcing Bill and Hold sales is set out in the

key audit matter disclosures in section 2 of

this report.

137

Financial Statements

Annual Report and Accounts 2021

We also performed procedures including:

• Identifying journal entries to test for all full

scope components based on risk criteria

and comparing the identified entries to

supporting documentation. These included

those posted to unusual accounts, those

with unusual descriptions, and round

number adjustments to provisions.

• Assessing whether the judgements made in

making recognising revenue are indicative

of a potential bias.

Identifying and responding to risks of

material misstatement due to non-

compliance with laws and regulations

We identified areas of laws and regulations

that could reasonably be expected to have

a material effect on the financial statements

from our general commercial and sector

experience, and through discussion with the

directors and other management (as required

by auditing standards). We also discussed

with the directors and other management the

policies and procedures regarding compliance

with laws and regulations.

As the Group is regulated, our assessment of

risks involved gaining an understanding of

the control environment including the entity’s

procedures for complying with regulatory

requirements.

We communicated identified laws and

regulations throughout our team and

remained alert to any indications of non-

compliance throughout the audit. This

included communication from the Group to

full-scope component audit teams of relevant

laws and regulations identified at the Group

level, and a request for full scope component

auditors to report to the Group team any

instances of non-compliance with laws and

regulations that could give rise to a material

misstatement at the Group level.

The potential effect of these laws and

regulations on the financial statements

varies considerably.

Firstly, the Group is subject to laws and

regulations that directly affect the financial

statements including financial reporting

legislation (including related companies

legislation), distributable profits legislation,

pension legislation, company legislation,

climate regulation, and taxation legislation,

and we assessed the extent of compliance

with these laws and regulations as part

of our procedures on the related financial

statement items.

Secondly, the Group is subject to many other

laws and regulations where the consequences

of non-compliance could have a material

effect on amounts or disclosures in the

financial statements, for instance through the

imposition of fines or litigation. We identified

the following areas as those most likely to

have such an effect: export legislation, GDPR

compliance, health and safety, contract

legislation, anti-bribery, employment law, and

certain aspects of company and environmental

legislation, recognising the nature of the

Group’s activities to export IT hardware and

provide global IT services. Auditing standards

limit the required audit procedures to identify

non-compliance with these laws and

regulations to enquiry of the directors and

other management, and inspection of

regulatory and legal correspondence, if any.

Therefore if a breach of operational

regulations is not disclosed to us or evident

from relevant correspondence, an audit will

not detect that breach.

Context of the ability of the audit to detect

fraud or breaches of law or regulation

Owing to the inherent limitations of an audit,

there is an unavoidable risk that we may not

have detected some material misstatements

in the financial statements, even though we

have properly planned and performed our

audit in accordance with auditing standards.

For example, the further removed non-

compliance with laws and regulations is from

the events and transactions reflected in the

financial statements, the less likely the

inherently limited procedures required by

auditing standards would identify it.

In addition, as with any audit, there remained

a higher risk of non-detection of fraud,

as these may involve collusion, forgery,

intentional omissions, misrepresentations,

or the override of internal controls. Our audit

procedures are designed to detect material

misstatement. We are not responsible for

preventing non-compliance or fraud and

cannot be expected to detect non-compliance

with all laws and regulations.

7. We have nothing to report on the other

information in the Annual Report

The directors are responsible for the other

information presented in the Annual Report

together with the financial statements. Our

opinion on the financial statements does not

cover the other information and, accordingly,

we do not express an audit opinion or, except

as explicitly stated below, any form of

assurance conclusion thereon.

Our responsibility is to read the other

information and, in doing so, consider

whether, based on our financial statements

audit work, the information therein is

materially misstated or inconsistent with the

financial statements or our audit knowledge.

Based solely on that work we have not

identified material misstatements in the

other information.

Strategic report and directors’ report

Based solely on our work on the other

information:

• we have not identified material

misstatements in the strategic report and

the directors’ report;

• in our opinion the information given in those

reports for the financial year is consistent

with the financial statements; and

• in our opinion those reports have been

prepared in accordance with the

Companies Act 2006.

Directors’ remuneration report

In our opinion the part of the Directors’

Remuneration Report to be audited has been

properly prepared in accordance with the

Companies Act 2006.

Disclosures of emerging principal risks and

longer-term viability

We are required to perform procedures to

identify whether there is a material

inconsistency between the directors’

disclosures in respect of principal risks and

the viability statement, and the financial

statements and our audit knowledge.

Based on those procedures, we have nothing

material to add or draw attention to in

relation to:

• the directors’ confirmation within the

viability statement on page 78 that they

have carried out a robust assessment of

the principal risks facing the Group,

including those that would threaten its

business model, future performance,

solvency and liquidity;

• the Principal Risks and Uncertainties

disclosures describing these risks and

explaining how they are being managed and

mitigated; and

• the directors’ explanation in the viability

statement of how they have assessed the

prospects of the Group, over what period

they have done so and why they considered

that period to be appropriate, and their

statement as to whether they have a

reasonable expectation that the Group will

be able to continue in operation and meet

its liabilities as they fall due over the period

of their assessment, including any related

disclosures drawing attention to any

necessary qualifications or assumptions.

Independent Auditor’s Report continued

to the members of Computacenter plc

138

We are also required to review the viability

statement, set out on pages 78 to 79 under the

Listing Rules. Based on the above procedures,

we have concluded that the above disclosures

are materially consistent with the financial

statements and our audit knowledge.

Our work is limited to assessing these

matters in the context of only the knowledge

acquired during our financial statements

audit. As we cannot predict all future events

or conditions and as subsequent events

may result in outcomes that are inconsistent

with judgements that were reasonable at the

time they were made, the absence of anything

to report on these statements is not a

guarantee as to the Group’s and Company’s

longer-term viability.

Corporate governance disclosures

We are required to perform procedures to

identify whether there is a material

inconsistency between the directors’ corporate

governance disclosures and the financial

statements and our audit knowledge.

Based on those procedures, we have

concluded that each of the following is

materially consistent with the financial

statements and our audit knowledge:

• the directors’ statement that they consider

that the annual report and financial

statements taken as a whole is fair,

balanced and understandable, and provides

the information necessary for shareholders

to assess the Group’s position and

performance, business model and strategy;

• the section of the annual report describing

the work of the Audit Committee, including

the significant issues that the audit

committee considered in relation to the

financial statements, and how these issues

were addressed; and

• the section of the annual report that

describes the review of the effectiveness of

the Group’s risk management and internal

control systems.

We are required to review the part of the

Corporate Governance Statement relating to

the Group’s compliance with the provisions of

the UK Corporate Governance Code specified

by the Listing Rules for our review. We have

nothing to report in these respects.

8. We have nothing to report on the other

matters on which we are required to report

by exception

Under the Companies Act 2006, we are

required to report to you if, in our opinion:

• adequate accounting records have not

been kept by the Parent Company, or

returns adequate for our audit have not

been received from branches not visited by

us; or

• the Parent Company financial statements

and the part of the Directors’ Remuneration

Report to be audited are not in agreement

with the accounting records and returns; or

• certain disclosures of directors’

remuneration specified by law are not

made; or

• we have not received all the information

and explanations we require for our audit.

We have nothing to report in these respects.

9. Respective responsibilities

Directors’ responsibilities

As explained more fully in their statement set

out on page 131, the directors are responsible

for: the preparation of the financial

statements including being satisfied that they

give a true and fair view; such internal control

as they determine is statements that are free

from material misstatement, whether due to

fraud or error; assessing the Group and

Parent Company’s ability to continue as

a going concern, disclosing, as applicable,

matters related to going concern; and using

the going concern basis of accounting unless

they either intend to liquidate the Group or the

Parent Company or to cease operations, or

have no realistic alternative but to do so.

Auditor’s responsibilities

Our objectives are to obtain reasonable

assurance about whether the financial

statements as a whole are free from material

misstatement, whether due to fraud or error,

and to issue our opinion in an auditor’s report.

Reasonable assurance is a high level of

assurance, but does not guarantee that an

audit conducted in accordance with ISAs (UK)

will always detect a material misstatement

when it exists. Misstatements can arise from

fraud or error and are considered material if,

individually or in aggregate, they could

reasonably be expected to influence the

economic decisions of users taken on the

basis of the financial statements.

A fuller description of our responsibilities

is provided on the FRC’s website at

www.frc.org.uk/auditorsresponsibilities.

10. The purpose of our audit work and to

whom we owe our responsibilities

This report is made solely to the Company’s

members, as a body, in accordance with

Chapter 3 of Part 16 of the Companies Act

2006 and the terms of our engagement by

the Company. Our audit work has been

undertaken so that we might state to the

Company’s members those matters we are

required to state to them in an auditor’s

report, and the further matters we are

required to state to them in accordance with

the terms agreed with the Company, and for

no other purpose. To the fullest extent

permitted by law, we do not accept or assume

responsibility to anyone other than the

Company and the Company’s members,

as a body, for our audit work, for this report,

or for the opinions we have formed.

David Neale (Senior Statutory Auditor)

for and on behalf of KPMG LLP, Statutory

Auditor

Chartered Accountants

15 Canada Square

London

E14 5GL

23 March 2022

139

Financial Statements

Annual Report and Accounts 2021

Note

2021

£m

2020

£m

Revenue 4,5 6,725.8 5,441.3

Cost of sales (5,858.0) (4,720.8)

Gross profit 867.8 720.5

Administrative expenses (612.0) (521.6)

Impairment loss on trade receivables and contract assets 20 (0.6) (0.4)

Operating profit 255.2 198.5

Gain on acquisition of a subsidiary 18d – 14.0

Finance income 10 0.3 0.5

Finance costs 11 (7.5) (6.4)

Profit before tax 248.0 206.6

Income tax expense 12 (61.5) (52.4)

Profit for the year 186.5 154.2

Attributable to:

Equity holders of the Parent 185.3 153.8

Non-controlling interests 1.2 0.4

Profit for the year 186.5 154.2

Earnings per share:

– basic 13 164.0p 136.2p

– diluted 13 160.9p 133.8p

Impairment loss on trade receivables and contract assets of £0. 4 million was included as part of ‘Administrative expenses’ in the prior year. The prior-year comparative has been

re-presented for this amount. There is no impact on reported ‘Operating profit’ of this change.

All of the activities of the Group relate to continuing operations.

The accompanying notes on pages 145 to 193 form an integral part of these consolidated financial statements.

Consolidated Income Statement

For the year ended 31 December 2021

140

Note

2021

£m

2020

£m

Profit for the year 186.5 154.2

Items that may be reclassified to the Consolidated Income Statement:

Loss arising on cash flow hedge (0.9) (1.9)

Income tax effect 0.2 0.3

(0.7) (1.6)

Exchange differences on translation of foreign operations (9.6) 3.2

(10.3) 1.6

Items not to be reclassified to the Consolidated Income Statement:

Remeasurement of defined benefit plan 33 1.2 (4.3)

Other comprehensive expense for the year, net of tax (9.1) (2.7)

Total comprehensive income for the year 177.4 151.5

Attributable to:

Equity holders of the Parent 176.2 151.1

Non-controlling interests 1.2 0.4

Total comprehensive income for the year 177.4 151.5

The accompanying notes on pages 145 to 193 form an integral part of these consolidated financial statements.

Consolidated Statement of Comprehensive Income

For the year ended 31 December 2021

141

Financial Statements

Annual Report and Accounts 2021

Note

2021

£m

2020

£m

Non-current assets

Property, plant and equipment 15 90.0 107.0

Right-of-use assets 15 138.1 129.6

Intangible assets 16 273.7 274.7

Investment in associate 18a 0.1 0.1

Deferred income tax assets 12d 30.2 10.1

Prepayments 5 16.6 23.6

548.7 545.1

Current assets

Inventories 19 341.3 211.3

Trade and other receivables 20 1,275.2 1,095.9

Income tax receivable 8.8 10.0

Prepayments 5 103.0 102.8

Accrued income 5 148.1 125.4

Derivative financial instruments 24 3.6 1.6

Cash and short-term deposits 21 285.2 309.8

2,165.2 1,856.8

Total assets 2,713.9 2,401.9

Current liabilities

Bank overdraft 21 12.0 –

Trade and other payables 22 1,410.4 1,116.7

Deferred income 5 249.3 273.9

Financial liabilities 23a 15.1 105.5

Lease liabilities 23b 43.0 41.7

Derivative financial instruments 24 2.5 5.1

Income tax payable 47.9 39.2

Provisions 26 3.5 4.1

1,783.7 1,586.2

Non-current liabilities

Financial liabilities 23a 16.7 15.7

Lease liabilities 23b 103.1 95.8

Deferred income 5 8.3 18.6

Retirement benefit obligation

33 21.8 23.3

Provisions

26 9.7 12.5

Deferred income tax liabilities 12d 25.8 18.9

185.4 184.8

Total liabilities 1,969.1 1,771.0

Net assets 744.8 630.9

Capital and reserves

Issued share capital 29 9.3 9.3

Share premium 29 4.0 4.0

Capital redemption reserve 29 75.0 75.0

Own shares held 29 (115.5) (111.7)

Translation and hedging reserve 29 5.4 15.7

Retained earnings 762.3 635.5

Shareholders’ equity 740.5 627.8

Non-controlling interests 29 4.3 3.1

Total equity 744.8 630.9

* Retirement benefit obligation of £23.3 million was included as part of ‘Provisions’ in the prior year. The prior-year comparative has been re-presented for this amount. There is no impact

on reported ‘Non-current liabilities’ and ‘Net assets’ from this change.

The accompanying notes on pages 145 to 193 form an integral part of these consolidated financial statements.

Approved by the Board on 23 March 2022.

MJ Norris FA Conophy

Chief Executive Officer Group Finance Director

Consolidated Balance Sheet

As at 31 December 2021

142

Attributable to equity holders of the Parent

Share-

holders’

equity

£m

Non-

controlling

interests

£m

Total

equity

£m

Issued

capital

£m

premium

£m

Capital

redemption

reserve

£m

Own

held

£m

Translation

and hedging

reserves

£m

Retained

earnings

£m

At 1 January 2021 9.3 4.0 75.0 (111.7) 15.7 635.5 627.8 3.1 630.9

Profit for the year – – – – – 185.3 185.3 1.2 186.5

Other comprehensive income/(expense) – – – – (10.3) 1.2 (9.1) – (9.1)

Total comprehensive income/(expense) – – – – (10.3) 186.5 176.2 1.2 177.4

Cost of share-based payments – – – – – 10.6 10.6 – 10.6

Tax on share-based payments – – – – – 7.6 7.6 – 7.6

Exercise of options – – – 21.7 – (15.5) 6.2 – 6.2

Purchase of own shares – – – (25.5) – – (25.5) – (25.5)

Equity dividends – – – – – (62.4) (62.4) – (62.4)

At 31 December 2021 9.3 4.0 75.0 (115.5) 5.4 762.3 740.5 4.3 744.8

At 1 January 2020 9.3 4.0 75.0 (113.6) 14.0 503.9 492.6 (0.1) 492.5

Relating to acquisition of subsidiary – – – – – – – 2.8 2.8

Profit for the year – – – – – 153.8 153.8 0.4 154.2

Other comprehensive income/(expense) – – – – 1.7 (4.4) (2.7) – (2.7)

Total comprehensive income – – – – 1.7 149.4 151.1 0.4 151.5

Cost of share-based payments – – – – – 7.9 7.9 – 7.9

Tax on share-based payments – – – – – 3.4 3.4 – 3.4

Exercise of options – – – 20.9 – (15.2) 5.7 – 5.7

Purchase of own shares – – – (19.0) – – (19.0) – (19.0)

Equity dividends – – – – – (13.9) (13.9) – (13.9)

At 31 December 2020 9.3 4.0 75.0 (111.7) 15.7 635.5 627.8 3.1 630.9

The accompanying notes on pages 145 to 193 form an integral part of these consolidated financial statements.

Consolidated Statement of Changes in Equity

For the year ended 31 December 2021

143

Financial Statements

Annual Report and Accounts 2021

Note

2021

£m

2020

£m

Operating activities

Profit before taxation 248.0 206.6

Net finance cost 7.2 5.9

Depreciation of property, plant and equipment 15 24.8 24.0

Depreciation of right-of-use assets 15 50.6 45.2

Amortisation of intangible assets 16 15.3 14.6

Share-based payments 10.6 8.0

Loss on disposal of intangibles 0.5 0.3

(Gain)/loss on disposal of property, plant and equipment (1.3) 0.2

Net cash flow from inventories (131.5) (50.4)

Net cash flow from trade and other receivables (including contract assets) (238.5) 48.3

Net cash flow from trade and other payables (including contract liabilities) 292.9 (26.2)

Gain on acquisition of a subsidiary 18d – (14.0)

Net cash flow from provisions (2.9) 1.9

Other adjustments 1.8 0.1

Cash generated from operations 277.5 264.5

Income taxes paid (53.2) (27.6)

Net cash flow from operating activities 224.3 236.9

Investing activities

Interest received 10 0.3 0.5

Acquisition of subsidiaries, net of cash acquired 18 (2.5) (30.1)

Purchases of property, plant and equipment 15 (18.8) (23.1)

Purchases of intangible assets 16 (11.5) (4.4)

Proceeds from disposal of property, plant and equipment 7.5 1.6

Net cash flow from investing activities (25.0) (55.5)

Financing activities

Interest paid 11 (2.3) (1.9)

Interest paid on lease liabilities 11 (5.2) (4.5)

Dividends paid to equity shareholders of the Parent 14 (62.4) (13.9)

Proceeds from share issues 6.2 5.7

Purchase of own shares (25.5) (19.0)

Repayment of loans and credit facility (99.7) (20.0)

Payment of capital element of lease liabilities 23b (50.2) (43.2)

New borrowings – bank loan 10.7 0.3

Net cash flow from financing activities (228.4) (96.5)

(Decrease)/increase in cash and cash equivalents (29.1) 84.9

Effect of exchange rates on cash and cash equivalents (7.5) 7.1

Cash and cash equivalents at the beginning of the year 21 309.8 217.8

Cash and cash equivalents at the year end 21 273.2 309.8

The accompanying notes on pages 145 to 193 form an integral part of these consolidated financial statements.

Consolidated Cash Flow Statement

For the year ended 31 December 2021

144

1 Authorisation of Consolidated Financial Statements and statement of compliance with IFRS

The Consolidated Financial Statements of Computacenter plc (Parent Company or the Company) and its subsidiaries (the Group) for the year

ended 31 December 2021 were authorised for issue in accordance with a resolution of the Directors on 23 March 2022. The Consolidated Balance

Sheet was signed on behalf of the Board by MJ Norris and FA Conophy. Computacenter plc is a limited company incorporated and domiciled in

England whose shares are publicly traded.

2 Summary of significant accounting policies

The accounting policies adopted are consistent with those of the previous financial year, as disclosed in the 2020 Annual Report and Accounts.

Effective for the year ending 31 December 2022

Apart from the potential changes discussed within note 3.2.1, no new standards, interpretations or amendments not yet effective are expected

to have a material effect on the Group’s future financial statements.

2.1 Basis of preparation

The Consolidated Financial Statements of the Company have been prepared in accordance with International Financial Reporting Standards (IFRS)

as adopted by the United Kingdom and in conformity with the requirements of the Companies Act 2006.

The Consolidated Financial Statements are prepared on the historical cost basis, other than derivative financial instruments, which are stated

atfair value.

The Consolidated Financial Statements are presented in pound sterling (£) and all values are rounded to the nearest hundred thousand, except

when otherwise indicated.

In determining whether it is appropriate to prepare the Financial Statements on a ‘going concern’ basis, the Group prepares a three-year Plan

(the‘Plan’) annually by aggregating top down expectations of business performance across the Group in the second and third year of the Plan

with a detailed 12-month ‘bottom-up’ budget for the first year, which was approved by the Board. The Plan is subject to rigorous downside sensitivity

analysis which involves flexing a number of the main assumptions underlying the forecasts within the Plan. The forecast cash flows from the Plan are

aggregated with the current position, to provide a total three-year cash position against which the impact of potential risks and uncertainties

can be assessed. In the absence of significant external debt, the analysis also considers access to available committed and uncommitted

finance facilities, the ability to raise new finance in most foreseeable market conditions and the ability to restrict dividend payments.

The Directors have identified a period of not less than 12 months as the appropriate period for the going concern assessment and have based

their assessment on the relevant forecasts from the Plan for that period.

The potential impact of the principal risks and uncertainties, as set out on pages 80 to 85 of the 2021 Annual Report and Accounts, is then applied

to the Plan. This assessment includes only those risks and uncertainties that, individually or in plausible combination, would threaten the Group’s

business model, future performance, solvency or liquidity over the assessment period and which are considered to be severe but reasonable

scenarios. It also takes into account an assessment of how the risks are managed and the effectiveness of any mitigating actions.

For the current year, the primary downside sensitivity relates to a modelled, but not predicted, severe downturn in the Group’s revenues,

beginning in 2022, simulating a continued impact for some of our customers from the Covid-19 crisis, together with the Group’s revenues being

impacted by supply shortages. This sensitivity analysis models a continued market downturn scenario, with slower than predicted recovery

estimates, for some of our customers whose businesses have been affected by Covid-19 and a similar downturn occurring for the remainder of

our customer base. A further impact on the Group’s Technology Sourcing revenues through 2022 from possible ongoing vendor-related supply

shortage issues has also been included in the sensitivity analysis.

Our cash and borrowing capacity provides sufficient funds to meet the foreseeable needs of the Parent and Group. At 31 December 2021,

the Group had cash and short-term deposits of £285.2 million and bank debt, primarily related to the recently built headquarters in Germany

and operations in North America, of £43.8 million. The Group’s Pivot subsidiary has a revolving credit facility via JPMorgan Chase Bank, N.A. of

US$100.0 million which can be used for revolving loans, letters of credit, and swing line loans. In addition, the Group has a committed facility

of £60.0 million, which was extended in September 2020 and has an expiry date of 7 September 2023. The Group has never drawn on this

committed facility.

The Group has a resilient balance sheet position, with net assets of £744.8 million as at 31 December 2021. The Group made a profit after tax

of £186.5 million, and delivered net cash flows from operating activities of £224.3 million, for the year ended 31 December 2021.

As the analysis continues to show a strong forecast cash position, even under the severe economic conditions modelled in the sensitivity

scenarios, the Directors continue to consider that the Parent and Group are well placed to manage business and financial risks in the current

economic environment. Based on this assessment, the Directors confirm that they have a reasonable expectation that the Parent and Group will

be able to continue in operation and meet their liabilities as they fall due over the period of not less than 12 months from the date of signing this

Annual Report and Accounts and therefore have prepared the Financial Statements on a going concern basis.

Notes to the Consolidated Financial Statements

For the year ended 31 December 2021

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2 Summary of significant accounting policies continued

Consolidated Balance Sheet and Notes – As at 31 December 2020

As at 31 December 2020, certain items relating to an operating lessor arrangement within the acquired Pivot business were incorrectly presented

on the balance sheet as follows:

• An amount of £12.6 million was incorrectly presented as accrued income of £2.6 million and non-current deferred costs, within prepayments,

of £10.0 million rather than as property, plant and equipment of £2.8 million, intangible assets – software of £4.6 million, accrued income of

£1.1million and non-current deferred costs, within prepayments, of £4.1 million.

• An amount of £11.9 million was incorrectly presented as current deferred income of £2.9 million and non-current deferred income of

£9.0million, rather than reflected as current financial liabilities of £2.2 million and non-current financial liabilities of £9.7 million.

• An amount of £15.3 million was incorrectly omitted from the disclosure of future amounts receivable under note 25 leases as a lessor.

Consolidated Cash Flow Statement for the year ended 31 December 2020

In relation to the above, the contract relating to the operating lessor arrangement was entered into prior to the acquisition of Pivot, therefore the

impact to the Consolidated Cash Flow Statement is limited to £0.4 million of financing repayments being incorrectly presented. This outflow was

recognised within net cash flow from trade and other payables within the operating cashflow caption, instead of as a repayment of loans and

credit facility within the financing cash flow caption.

Management has decided not to correct the prior year-end presentation of the differences relating to the above items, as they have no impact

on the Consolidated Income Statement for the year ended 31 December 2020 and individual reclassifications are either not significant compared

to the overall amount in the Consolidated Balance Sheet and/or Consolidated Cash Flow Statement captions affected by the mis-presentation or

to the Consolidated Balance Sheet or Consolidated Cash Flow Statement itself. The revision has no impact on the operating profit, profit for the

period, assets and liabilities or cash flows for the year ended 31 December 2021, where the correct accounting treatment has been adopted

intheyear.

2.2 Basis of consolidation

The Consolidated Financial Statements comprise the Financial Statements of the Parent Company and its subsidiaries as at 31 December each

year. The Financial Statements of subsidiaries are prepared for the same reporting year as the Parent Company, using existing GAAP in each

country of operation. Adjustments are made on consolidation for differences that may exist between the respective local GAAPs and IFRS.

All intra-Group balances, transactions, income and expenses and profit and losses resulting from intra-Group transactions have been

eliminatedin full.

Subsidiaries are consolidated from the date on which the Group obtains control and cease to be consolidated from the date on which the Group no

longer retains control. Non-controlling interests represent the portion of profit or loss and net assets in subsidiaries that is not held by the Group

and is presented separately from Parent shareholders’ equity in the Consolidated Balance Sheet.

2.2.1 Foreign currency translation

Each entity in the Group determines its own functional currency and items included in the Financial Statements of each entity are measured using

that functional currency. Transactions in foreign currencies are initially recorded in the functional currency at the exchange rate ruling at the

date of the transaction or where relevant the rate of a specific forward exchange contract. Monetary assets and liabilities denominated in foreign

currencies are retranslated at the functional currency rate of exchange ruling at the Consolidated Balance Sheet date. All differences are taken to

the Consolidated Income Statement except foreign currency differences arising from the translation of qualifying cash flow hedges, which are

recognised in the Consolidated Statement of Comprehensive Income, to the extent that the hedges are effective.

Non-monetary items that are measured in terms of historical cost in a foreign currency are translated using the exchange rate as at the date

ofinitial transaction.

The functional currencies of the main overseas subsidiaries are euro (€), US dollar ($) and Swiss franc (CHF). The Group’s presentation currency

is pound sterling. As at the reporting date, the assets and liabilities of these overseas subsidiaries are translated into the presentation currency

of the Group at the rate of exchange ruling at the balance sheet date and their Consolidated Income Statements are translated at the average

exchange rates for the year. Exchange differences arising on the retranslation are recognised in the Consolidated Statement of Comprehensive

Income. On disposal of a foreign entity, the deferred cumulative amount recognised in the Consolidated Statement of Comprehensive Income

relating to that particular foreign operation is recognised in the Consolidated Income Statement.

2.3 Revenue

Revenue is recognised to the extent of the amount which is expected to be received from customers as consideration for the transfer of goods

and services to the customer.

In multi-element contracts with customers where more than one good (Technology Sourcing) or service (Professional Services and Managed

Services) is provided to the customer, analysis is performed to determine whether the separate promises are distinct performance obligations

within the context of the contract. To the extent that this is the case, the transaction price is allocated between the distinct performance

obligations based upon relative standalone selling prices. The revenue is then assessed for recognition purposes based upon the nature of

the activity and the terms and conditions of the associated customer contract relating to that specific distinct performance obligation.

The following specific recognition criteria must also be met before revenue is recognised:

Notes to the Consolidated Financial Statements continued

For the year ended 31 December 2021

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2.3.1 Technology Sourcing

The Group supplies hardware and software (together as ‘goods’) to customers that are sourced from and delivered by a number of suppliers.

Technology Sourcing revenue is recognised when the Group’s performance obligations are fulfilled at a point in time when control of the goods

has been transferred to the customer. Typically, customers obtain control of the goods when they are delivered to and have been accepted at

their premises, depending on individual customer arrangements. Invoices are routinely generated at that point in time and payment for the goods

is generally received on, or before, industry-standard payment terms, ordinarily within 30 days. Refer to note 3.2.2 for ‘bill and hold’ transactions.

Revenue is recorded based on the price specified in sales invoices, net of any agreed discounts and rebates, and exclusive of value added tax on

goods supplied to customers during the year.

There are a variety of discounts and rebates provided to customers, which are assessed on a case-by-case basis as to whether the resulting

payment to customers is for a distinct good or service (such as marketing) or for a promotional discount.

Technology Sourcing principal versus agent recognition

Management assesses the classification of certain revenue contracts for Technology Sourcing revenue recognition on either an agent or principal

basis. Because the identification of the principal in a contract is not always clear and, for certain elements including standalone software licence

sales and standalone resold third party service, the level of judgement required can be high with the outcomes of assessments finely balanced,

Management makes a determination by evaluating the nature of our promise to our customer as to whether it is a performance obligation to

provide the specified goods or services ourselves, in that we are the principal, or to arrange for those goods or services to be provided by the

other party, where we arethe agent. See note 3.2.1 Technology Sourcing principal versus agent recognition for further information on the critical

judgement. We determine whether we are a principal or an agent for each specified good or service promised to the customer by evaluating

thenature of our promise to the customer against a non-exhaustive list of indicators that a performance obligation could involve an

agencyrelationship:

• evaluating who controls each specified good or service before that good or service is transferred to the customer;

• the vendor retains primary responsibility for fulfilling the sale;

• we take no inventory risk before or after the goods have been ordered, during shipping or on return;

• we do not have discretion to establish pricing for the vendor’s goods, limiting the benefit we can receive from the sale of those goods; and

• our consideration is in the form of a, usually predetermined, commission.

2.3.2 Professional Services

The Group provides skilled professionals to customers either operating within a project framework or on a ‘resource on demand’ basis.

For contracts operating within a project framework, revenue is recognised based on the transaction price with reference to the costs incurred as

a proportion of the total estimated costs (percentage of completion basis) of the contract.

For those contracts which are ‘resource on demand’, revenue is billed on a timesheet basis. The Group elects to use the practical expedient in IFRS

15.B16, as we have a right to consideration from our ‘resource on demand’ Professional Services customers in an amount that corresponds directly

with the value to our customer of the Group’s performance completed to date. The practical expedient applied permits the Group to recognise these

‘resource on demand’ Professional Services revenues in the amount to which the entity has a right to invoice. Professional Services revenue is

therefore recognised throughout the term of the contract, as services are delivered, with amounts recognised based on monthly invoiced amounts,

as this corresponds to the service delivered to the customer and the satisfaction of the Group’s performance obligations.

Under either basis, Professional Services revenue is recognised over time. The vast majority of the Group’s Professional Services revenue is

constituted by ‘expert-leasing’ arrangements and recognised in this manner and represents the primary area of growth in this business line.

As the majority of Professional Services revenue is recognised as ‘resource on demand’, the overall balance of risks to recognition for this

business is decreased as compared to the scenario where the majority of Professional Services revenue would be recognised on a percentage of

completion basis. This is due to the monthly timesheet nature of the billing which is agreed regularly with the customer as the service is delivered.

If the total estimated costs and revenues of a contract cannot be reliably estimated, revenue is recognised only to the extent that costs have

been incurred and where the Group has an enforceable right to payment as work is being performed.

A provision for forecast excess costs over forecasted revenue is made as soon as a loss is foreseen (see note 2.12.1 for further detail).

Unbilled Professional Services revenue is classified as a contract asset and is included within accrued income in the Consolidated Balance Sheet.

Unearned Professional Services revenue is classified as a contract liability and is included within deferred income in the Consolidated Balance

Sheet. Payment for the Services, which are invoiced monthly, is generally on industry standard payment terms.

2.3.3 Managed Services

The Group sells maintenance, support and management of customers’ IT infrastructures and operations.

The specific performance obligations and invoicing conditions in our Managed Services contracts are typically related to the number of calls,

interventions or users that we manage and therefore the customer simultaneously receives and consumes the benefits of the services as

they are performed. The Group elects to use the practical expedient in IFRS 15.B16, as we have a right to consideration from our Managed

Services customers in an amount that corresponds directly with the value to our customer of the Group’s performance completed to date.

The practical expedient applied permits the Group to recognise Managed Services revenue in the amount to which the entity has a right to invoice.

Managed Services revenue is therefore recognised throughout the term of the contract, as services are delivered, with amounts recognised

based on monthly invoiced amounts, as this corresponds to the service delivered to the customer and the satisfaction of the Group’s

performance obligations.

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2 Summary of significant accounting policies continued

Unbilled Managed Services revenue is classified as a contract asset and is included within accrued income in the Consolidated Balance Sheet.

Unearned Managed Services revenue is classified as a contract liability and is included within deferred income in the Consolidated Balance Sheet.

Amounts invoiced relating to more than one year are deferred and recognised over the relevant period. Payment for the services is generally on

industry standard payment terms.

If the total estimated costs and revenues of a contract cannot be reliably estimated, revenue is recognised only to the extent that costs have

been incurred and where the Group has an enforceable right to payment as work is being performed. A provision for forecast excess costs over

forecasted revenue is made as soon as a loss is foreseen (see note 2.12.1 for further detail). On occasion, the Group may have a limited number

of Managed Services contracts where revenue is recognised on a percentage of completion basis, which is determined by reference to the costs

incurred as a proportion of the total estimated costs of the contract.

Costs of obtaining and fulfilling revenue contracts

The Group operates in a highly competitive environment and is frequently involved in contract bids with multiple competitors, with the outcome

usually unknown until the contract is awarded and signed.

When accounting for costs associated with obtaining and fulfilling customer contracts, the Group first considers whether these costs fit within

a specific IFRS standard or policy. Any costs associated with obtaining or fulfilling revenue contracts which do not fall into the scope of other IFRS

standards or policies are considered under IFRS 15. All such costs are expensed as incurred other than the two types of costs noted below:

1. Win fees – The Group pays ‘win fees’ to certain employees as bonuses for successfully obtaining customer contracts. As these are incremental

costs of obtaining a customer contract, they are deferred along with any associated payroll tax expense to the extent they are expected to be

recovered. These balances are presented within prepayments in the Consolidated Balance Sheet. The win fee balance that will be realised after

more than 12 months is disclosed as non-current.

2. Fulfilment costs – The Group often incurs costs upfront relating to the initial set-up phase of an outsourcing contract, which the Group refers to

as Entry Into Service. These costs do not relate to a distinct performance obligation in the contract, but rather are accounted for as fulfilment

costs under IFRS 15 as they are directly related to the future performance on the contract. They are therefore capitalised to the extent that

they are expected to be recovered. These balances are presented within prepayments in the Consolidated Balance Sheet.

Both win fees and Entry Into Service costs are amortised on a straight-line basis over the contract term, as this is equivalent to the pattern of

transfer of services to the customer over the contract term. The amortisation charges on win fees and Entry Into Service costs are recognised in

the Consolidated Income Statement within administration expenses and cost of sales, respectively.

Any bid costs incurred by the Group’s Central Bid Management Engines are not capitalised or charged to the contract, but instead directly charged

to selling, general and administrative expenses as they are incurred. These costs associated with bids are not separately identifiable nor can they

be measured reliably as the Group’s internal bid teams work across multiple bids at any one time.

2.3.4 Finance income

Income is recognised as interest accrues.

2.4 Exceptional items

The Group presents those material items of income and expense as exceptional items which, because of the nature and expected infrequency

of the events giving rise to them, merit separate presentation to allow shareholders to understand the elements of financial performance in the

year, so as to facilitate comparison with prior years and to assess trends in financial performance.

2.5 Adjusted

measures

The Group uses a number of non-Generally Accepted Accounting Practice (non-GAAP) financial measures in addition to those reported in

accordance with IFRS. The Directors believe that these non-GAAP measures, set out below, assist in providing additional useful information on the

underlying trends, performance and position of the Group. The non-GAAP measures are also used to enhance the comparability of information

between reporting periods by adjusting for non-recurring or uncontrollable factors which affect IFRS measures, to aid the user in understanding

the Group’s performance.

Consequently, non-GAAP measures are used by the Directors and Management for performance analysis, planning, reporting and incentive

setting purposes and have remained consistent with the prior year.

These non-GAAP measures comprise: adjusted administrative expenses, adjusted operating profit or loss, adjusted profit or loss before tax,

adjusted tax, adjusted profit or loss for the year, adjusted earnings per share and adjusted diluted earnings per share. They are, as appropriate,

each stated before: exceptional and other adjusting items including gain or loss on business disposals, gain or loss on disposal of investment

properties, expenses related to material acquisitions, 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 does 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 71 of the Group Finance Director’s review which details the impact of exceptional and

other adjusting items when comparing to the non-GAAP financial measures, in addition to those reported in accordance with IFRS. Further detail

is also provided within note 4, Segment information.

Notes to the Consolidated Financial Statements continued

For the year ended 31 December 2021

148

2.6 Impairment of assets

The Group assesses at each reporting date whether there is an indication that an asset may be impaired. If any such indication exists, or when

annual impairment testing for an asset is required, the Group makes an estimate of the asset’s recoverable amount. Where an asset does not

have independent cash flows, the recoverable amount is assessed for the cash-generating unit (CGU) to which it belongs. These assets are tested

across an aggregation of CGUs that utilise the asset. The recoverable amount is the higher of the fair value less costs to sell and the value-in-use

of the asset or CGU. Where the carrying amount of an asset exceeds its recoverable amount, the asset is considered impaired and is written down

to its recoverable amount. In assessing value-in-use, the estimated future cash flows are discounted to their present value using a post-tax

discount rate that reflects current market assessments of the time value of money and the risks specific to the asset. Impairment losses of

continuing operations are recognised in the Consolidated Income Statement in those expense categories consistent with the function of the

impaired asset.

For assets excluding goodwill, an assessment is made at each reporting date whether there is any indication that previously recognised

impairment losses may no longer exist or may have decreased. If such indication exists, the Group estimates the asset’s or CGU’s recoverable

amount. A previously recognised impairment loss is reversed only if there has been a change in the assumptions used to determine the asset’s

recoverable amount since the last impairment was recognised. The reversal is limited so that the carrying amount of the asset does not exceed

its recoverable amount, nor exceed the carrying amount that would have been determined, net of depreciation, had no impairment loss been

recognised for the asset in prior years. As the Group has no assets carried at revalued amounts, such reversal is recognised in the

ConsolidatedIncome Statement.

2.7 Property, plant and equipment

Property, plant and equipment is stated at cost less accumulated depreciation and any accumulated impairment losses.

Depreciation, down to residual value, is calculated on a straight-line basis over the estimated useful life of the asset as follows:

• freehold buildings: 25-50 years

• short leasehold improvements: shorter of seven years and period to expiry of lease

• fixtures and fittings:

– head office: 5-15 years

– other: shorter of seven years and period to expiry of lease

• office machinery and computer hardware: 2-15 years

• motor vehicles: three years

Freehold land is not depreciated. An item of property, plant and equipment is derecognised upon disposal or when no future economic benefits

are expected to arise from the continued use of the asset. Any gain or loss arising on derecognition of the asset (calculated as the difference

between the net disposal proceeds and the carrying amount of the item) is included in the Consolidated Income Statement in the year the

itemisderecognised.

2.8 Leases

2.8.1 Group as lessee

Recognition of a lease

The contracts are assessed by the Group, to determine whether a contract is, or contains a lease. In general, arrangements are a lease when all

of the following apply:

• it conveys the right to control the use of an identified asset for a certain period, in exchange for consideration;

• the Group obtains substantially all economic benefits from the use of the asset; and

• the Group can direct the use of the identified asset.

The Group elects to separate the non-lease components.

Measurement of a right-of-use asset and lease liability

Right-of-use asset

The Group measures the right-of-use asset at cost, which includes the following:

• the initial amount of the lease liability, adjusted for any lease payments made at or before the lease commencement date;

• any lease incentives received; and

• any initial direct costs incurred by the Group as well as an estimate of costs to be incurred by the Group in dismantling and removing the

underlying asset, restoring the site on which it is located or restoring the underlying asset to the condition required by the lease contract.

Cost for dismantling, removing or restoring the site on which it is located and/or the underlying asset is only recognised when the Group incurs

an obligation to do so.

The right-of-use asset is depreciated over the lease term, using the straight-line method.

Lease liability

The lease liability is initially measured at the present value of the unpaid lease payments, discounted using the interest rate implicit in the lease,

or if the rate cannot be readily determined, the Group’s incremental borrowing rate. Lease payments included in the measurement comprise fixed

payments, variable lease payments that depend on an index or a rate, amounts to be paid under a residual value guarantee and lease payments

in an optional renewal period, if the Group is reasonably certain to exercise an extension option, as well as penalties for early termination of a

lease, if the Group is reasonably certain to terminate early. If there is a purchase option present, this will be included if the Group is reasonably

certain to exercise the option.

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Notes to the Consolidated Financial Statements continued

For the year ended 31 December 2021

2 Summary of significant accounting policies continued

Leases of low-value assets and short term

Leases of low-value assets (<£5,000) and short term with a term of 12 months or less are not required to be recognised on the Consolidated

Balance Sheet and payments made in relation to these leases are recognised on a straight-line basis in the Consolidated Income Statement.

2.8.2 Group as a lessor

The Group entered in to lease agreements as a lessor on certain items of machinery and software. Leases for which the Group is a lessor are

classified as operating leases. Rental income arising from operating leases is accounted for on a straight-line basis over the lease term.

In cases where the Group acts as an intermediate lessor, it accounts for its interests in the head-lease and the sub-lease separately.

2.9 Intangible assets

2.9.1 Software and software licences

Software and software licences include computer software that is not integral to a related item of hardware. These assets are stated at cost less

accumulated amortisation and any impairment in value. Amortisation is calculated on a straight-line basis over the estimated useful life of the

asset. Currently software is amortised over four years.

The carrying values of software and software licences are reviewed for impairment when events or changes in circumstances indicate that the

carrying value may not be recoverable. If any such indication exists and where the carrying values exceed the estimated recoverable amount,

the assets are written down to their recoverable amount.

2.9.2 Software under development

Costs that are incurred and that can be specifically attributed to the development phase of management information systems for internal use

are capitalised and amortised over their useful life, once the asset becomes available for use.

2.9.3 Other intangible assets

Intangible assets acquired as part of a business combination are carried initially at fair value. Following initial recognition intangible assets are

carried at cost less accumulated amortisation and any impairment in value. Intangible assets with a finite life have no residual value and are

amortised on a straight-line basis over their expected useful lives, with charges included in administrative expenses as follows:

• order back log: within three months

• existing customer relationships: 10-15 years

• tools and technology: seven years.

The carrying value of intangible assets is reviewed for impairment whenever events or changes in circumstances indicate the carrying value may

not be recoverable and expected useful lives are reviewed on a yearly basis.

2.9.4 Goodwill

Business combinations are accounted for under IFRS 3 Business Combinations using the acquisition method. Any excess of the cost of the

business combination over the Group’s interest in the net fair value of the identifiable assets, liabilities and contingent liabilities is recognised in

the Consolidated Balance Sheet as goodwill and is not amortised. Any goodwill arising on the acquisition of equity accounted entities is included

within the cost of those entities.

After initial recognition, goodwill is stated at cost less any accumulated impairment losses, with the carrying value being reviewed for impairment

at least annually and whenever events or changes in circumstances indicate that the carrying value may be impaired.

For the purpose of impairment testing, goodwill is allocated to the related CGU monitored by Management, usually at business Segment level

or statutory Company level as the case may be. Where the recoverable amount of the CGU is less than its carrying amount, including goodwill,

an impairment loss is recognised in the Consolidated Income Statement.

2.10 Inventories

Inventories are carried at the lower of weighted average cost and net realisable value after making allowance for any obsolete or slow-moving

items. Costs include those incurred in bringing each product to its present location and condition, on a first-in, first-out basis.

Net realisable value is the estimated selling price in the ordinary course of business, less the estimated costs necessary to make the sale.

2.11 Financial assets

Financial assets are recognised at their fair value, which initially equates to the sum of the consideration given and the directly attributable

transaction costs associated with the investment. Subsequently, the financial assets are measured at either amortised cost or fair value,

depending on their classification under IFRS 9. The Group currently holds only debt instruments. The classification of these debt instruments

depends on the Group’s business model for managing the financial assets and the contractual terms of the cash flows.

2.11.1 Trade and other receivables

Trade receivables, which generally have 30 to 90-day credit terms, are initially recognised and carried at their original invoice amount less an

allowance for any uncollectable amounts. The business model for trade receivables is that they are held for the collection of contractual cash

flows, therefore they are subsequently measured at amortised cost. The trade receivables are derecognised on receipt of cash from the

customer. The Group sometimes uses debt factoring, without recourse, to manage liquidity and, as a result, the business model for factored trade

receivables is that they are not held for the collection of contractual cash flows. As a result, subsequent to initial recognition, they are measured

at fair value through other comprehensive income (except for the recognition of impairment gains and losses and foreign exchange gains

and losses, which are recognised in profit or loss). Factored trade receivables are derecognised on receipt of cash from the factoring party.

150

Given the short lives of the trade receivables, there are generally no material fair value movements between initial recognition and the

derecognition of the receivable.

The Group assesses for doubtful debts (impairment) using the expected credit losses model as required by IFRS 9. For trade receivables, the

Group applies the simplified approach, which requires expected lifetime losses to be recognised from the initial recognition of the receivables.

Material or high-risk balances are reviewed and provided for individually based on a number of factors including:

• the financial strength of the customer;

• the level of default that the Group has suffered in the past;

• the age of the receivable outstanding; and

• the Group’s trading experience with that customer.

For impairment assessment of other receivables, refer to note 2.6, Impairment of assets, which details the impairment approach adopted where

an asset considered to be impaired would be written down to its recoverable amount which, given the nature of the assets, would most likely be

its fair value less costs to sell.

2.11.2 Cash and cash equivalents

Cash and short-term deposits in the Consolidated Balance Sheet comprise cash at bank and in hand, and short-term deposits with an original

maturity of three months or less. Cash is held for the collection of contractual cash flows which are solely payments of principal and interest and

therefore is measured at amortised cost subsequent to initial recognition.

For the purpose of the Consolidated Cash Flow Statement, cash and cash equivalents consist of cash and short-term deposits as defined above,

net of outstanding bank overdrafts, where the overdrafts are repayable on demand and are part of the Group’s cash management.

2.12 Financial liabilities

Financial liabilities are initially recognised at their fair value and, in the case of loans and borrowings (including credit facility), net of directly

attributable transaction costs.

The subsequent measurement of financial liabilities is at amortised cost, unless otherwise described below:

2.12.1 Provisions (excluding restructuring provision)

Provisions are recognised when the Group has a present obligation (legal or constructive) as a result of a past event, it is probable that an outflow

of resources embodying economic benefits will be required to settle the obligation and a reliable estimate can be made of the amount of the

obligation.

If the effect of the time value of money is material, provisions are determined by discounting the expected future cash flows at a pre-tax rate that

reflects current market assessments of the time value of money and, where appropriate, the risks specific to the liability. Where discounting is

used, the increase in the provision due to the passage of time is recognised as a borrowing cost.

Customer contract provisions

A provision for forecast excess costs over forecasted revenue is made as soon as a loss is foreseen.

Management monitors continually the financial performance of contracts, and where there are indicators that a contract could result in a

negative margin, the future financial performance of that contract will be reviewed in detail. If, after further financial analysis, the full financial

consequence of the contract can be reliably estimated, and it is determined that the contract is potentially loss-making, then the best estimate

of the losses expected to be incurred until the end of the contract will be provided for.

The Group applies IAS 37 – ‘Provisions, Contingent Liabilities and Contingent Assets‘ (IAS 37) in its assessment of whether contracts are considered

onerous and in subsequently estimating the provision. In line with recent amendments to IAS 37, the Group’s approach has been and continues to

be to apply the ‘Full cost approach’ which considers total estimated costs (i.e. directly attributable variable costs and fixed allocated costs) as

included in the assessment of whether the contract is onerous or not and in the measurement of the provision.

2.12.2 Restructuring provisions

The Group recognises a ‘restructuring’ provision when there is a programme planned and controlled by Management that changes materially the

scope of the business or the manner in which it is conducted.

Further to the Group’s general provision recognition policy, a restructuring provision is only considered when the Group has a detailed formal plan

for the restructuring identifying, as a minimum: the business or part of the business concerned; the principal locations affected; the location,

function and approximate number of employees who will be compensated for terminating their services; the expenditures that will be undertaken;

and when the plan will be implemented. The Group will only recognise a specific restructuring provision once those affected have a valid expectation

that the Group will carry out the restructuring created by either the commencement of the restructuring implementation plan or the

announcement of its main features to those affected by it.

The Group only includes incremental costs associated directly with the restructuring within the restructuring provisions, such as employee

termination benefits and consulting fees. The Group specifically excludes from recognition in a restructuring provision any costs associated with

ongoing activities such as the costs of training or relocating staff that are redeployed within the business and costs for employees who continue

to be employed in ongoing operations, regardless of the status of these operations post-restructure.

2.12.3 Pensions and other post-employment benefits

The Group operates a defined contribution pension scheme available to all UK employees and similar schemes are operating, as appropriate for

the jurisdiction, for North America and Germany. Contributions are recognised as an expense in the Consolidated Income Statement as they

become payable in accordance with the rules of the scheme. There are no material pension schemes within the Group’s overseas operations.

151

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Notes to the Consolidated Financial Statements continued

For the year ended 31 December 2021

2 Summary of significant accounting policies continued

The Group has an obligation to make a one-off payment to French employees upon retirement, the Indemnités de Fin de Carrière (IFC).

French employment law requires that a company pays employees a one-time contribution when, and only when, the employee leaves the

company on retirement at the mandatory age. This is a legal requirement for all businesses who incur the obligation upon departure, due to

retirement, of an employee.

Typically, the retirement benefit is based on length of service of the employee and his or her salary at retirement. The amount is set via a legal

minimum, but the retirement premiums can be improved by the collective agreement or employment contract in some cases. In Computacenter

France, the payment is based on accrued service and ranges from one month of salary after five years of service to 9.4 months of salary after

47years of service.

If the employee leaves voluntarily at any point before retirement, all liability is extinguished, and any accrued service is not transferred to any

newemployment.

Management continues to account for this obligation according to IAS 19 (revised). Refer to note 33 for further disclosure.

2.13 Derecognition of financial assets and liabilities

2.13.1 Financial assets

A financial asset (or, where applicable, a part of a financial asset or part of a group of similar financial assets) is derecognised where:

• the rights to receive cash flows from the asset have expired; or

• the Group retains the right to receive cash flows from the asset, but has assumed an obligation to pay them in full without material delay to

a third party under a ‘pass-through’ arrangement; or

• the Group has transferred its rights to receive cash flows from the asset and either (a) has transferred substantially all the risks and rewards

of the asset, or (b) has neither transferred nor retained substantially all the risks and rewards of the asset but has transferred control of

theasset.

2.13.2 Financial liabilities

A financial liability is derecognised when the obligation under the liability is discharged, cancelled or expired.

2.14 Derivative financial instruments and hedge accounting

The Group uses foreign currency forward contracts to hedge its foreign currency risks associated with foreign currency fluctuations affecting

cash flows from forecast transactions and unrecognised firm commitments.

At the inception of a hedge relationship, the Group formally designates and documents the hedge relationship to which the Group wishes to apply

hedge accounting and the risk management objective and strategy for undertaking the hedge. The documentation includes identification of both

the hedging instrument and the hedged item or transaction and then the economic relationship between the two, including whether the hedging

instrument is expected to offset changes in cash flow of the hedged item. Such hedges are expected to be highly effective in achieving offsetting

changes in cash flows. The Group designates the full change in the fair value of the forward contract (including forward points) as the hedging

instrument. Forward contracts are initially recognised at fair value on the date that the contract is entered into and are subsequently remeasured at

fair value at each reporting date. The fair value of forward currency contracts is calculated by reference to current forward exchange rates for

contracts with similar maturity profiles. Forward contracts are recorded as assets when the fair value is positive and as liabilities when the fair

value is negative.

For the purposes of hedge accounting, hedges are classified as cash flow hedges when hedging the exposure to variability in cash flows that is

either attributable to a particular risk associated with a recognised asset or liability, a highly probable forecast transaction, or the foreign

currency risk in an unrecognised firm commitment.

Cash flow hedges that meet the criteria for hedge accounting are accounted for as follows: the effective portion of the gain or loss on the hedging

instrument is recognised directly in other comprehensive income in the cash flow hedge reserve, while any ineffective portion is recognised

immediately in the Consolidated Income Statement in administrative expenses.

Amounts recognised within the Consolidated Statement of Comprehensive Income are transferred to the Consolidated Income Statement, within

administrative expenses, when the hedged transaction affects the Consolidated Income Statement, such as when the hedged financial expense

is recognised.

If the forecast transaction or firm commitment is no longer expected to occur, the cumulative gain or loss previously recognised in equity is

transferred to the Consolidated Income Statement within administrative expenses. If the hedging instrument matures or is sold, terminated or

exercised without replacement or rollover, any cumulative gain or loss previously recognised within the Consolidated Statement of Comprehensive

Income remains within the Consolidated Statement of Comprehensive Income until after the forecast transaction or firm commitment affects

the Consolidated Income Statement.

Any other gains or losses arising from changes in fair value on forward contracts are taken directly to administrative expenses in the

Consolidated Income Statement.

2.15 Taxation

2.15.1 Current tax

Current tax assets and liabilities for the current and prior years are measured at the amount expected to be recovered from or paid to the

taxauthorities. The tax rates and tax laws used to compute the amount are those that are enacted or substantively enacted by the

balancesheetdate.

152

2.15.2 Deferred income tax

Deferred income tax is recognised on all temporary differences arising between the tax bases of assets and liabilities and their carrying amounts

in the Consolidated Financial Statements, with the following exceptions:

• where the temporary difference arises from the initial recognition of goodwill or from an asset or liability in a transaction that is not a business

combination that at the time of the transaction affects neither accounting nor taxable profit or loss;

• in respect of taxable temporary differences associated with investments in subsidiaries, associates and joint ventures, where the timing of the

reversal of the temporary differences can be controlled and it is probable that the temporary differences will not reverse in the foreseeable

future; and

• deferred income tax assets are recognised only to the extent that it is probable that taxable profit will be available in the future against which

the deductible temporary differences, carried forward tax credits or tax losses can be utilised.

Deferred income tax assets and liabilities are measured on an undiscounted basis at the tax rates that are expected to apply when the related

asset is realised or liability is settled, based on tax rates and laws enacted, or substantively enacted, at the balance sheet date.

Income tax is charged or credited directly to the Consolidated Statement of Comprehensive Income if it relates to items that are credited or

charged to the Consolidated Statement of Comprehensive Income. Otherwise, income tax is recognised in the Consolidated Income Statement.

2.16 Share-based payment transactions

Employees (including Executive Directors) of the Group can receive remuneration in the form of share-based payment transactions, whereby

employees render services in exchange for shares or rights over shares (equity-settled transactions).

The cost of equity-settled transactions with employees is measured by reference to the fair value of the award at the date at which they are

granted. The fair value is determined by utilising an appropriate valuation model, further details of which are given in note 30. In valuing equity-

settled transactions, no account is taken of any performance conditions, as none of the conditions set are market-related.

The cost of equity-settled transactions is recognised, together with a corresponding increase in equity, over the period in which the performance

and/or service conditions are fulfilled, ending on the date on which the relevant employees become fully entitled to the award (vesting date).

The cumulative expense recognised for equity-settled transactions at each reporting date, until the vesting date, reflects the extent to which

the vesting period has expired and the Directors’ best estimate of the number of equity instruments that will ultimately vest. The Consolidated

Income Statement charge or credit for a period represents the movement in cumulative expense recognised as at the beginning and end of

thatperiod. As the schemes do not include any market-related performance conditions, no expense is recognised for awards that do not

ultimately vest.

The dilutive effect of outstanding options is reflected as additional share dilution in the computation of earnings per share (see note 13).

The Group has an employee share trust for the granting of non-transferable options to Executive Directors and senior Management. Shares in

theGroup held by the employee share trust are treated as investment in own shares and are recorded at cost as a deduction from equity

(seenote 29).

2.17 Own shares held

Computacenter plc shares held by the Group are classified in shareholders’ equity as ‘own shares held’ and are recognised at cost. Consideration

received for the sale of such shares is also recognised in equity, with any difference between the proceeds from sale and the original cost being

taken to reserves. No gain or loss is recognised in the performance statements on the purchase, sale, issue or cancellation of equity shares.

2.18 Fair value measurement

The Group measures certain financial instruments at fair value at each balance sheet date.

Fair value is the price that would be received to sell an asset or paid to transfer a liability in an orderly transaction between market participants

at the measurement date.

The fair value of an asset or a liability is measured using the assumptions that market participants would use when pricing the asset or liability,

assuming that market participants act in their economic best interest.

The Group uses valuation techniques that are appropriate in the circumstances and for which sufficient data is available to measure fair value,

maximising the use of relevant observable inputs and minimising the use of unobservable inputs.

Fair value-related disclosures for financial instruments that are measured at fair value or where fair values are disclosed, are summarised

innote27.

2.19 IAS 20 – Accounting for government grants and disclosure of government assistance

IAS 20 defines government grants as assistance by government in the form of transfers of resources to an entity, in return for past or future

compliance with certain conditions relating to the operating activities of the entity. If the conditions are met, then a company recognises

government grants in profit or loss within administration expenses, in line with its recognition of the expenses that the grants are intended

to compensate.

The Group has recognised unconditional government grants relating to short-term schemes introduced by governments within Europe and the

United States as a result of Covid-19 crisis for the purpose of protecting employment. These grants compensate the Group for expenses incurred

and are recognised in the Consolidated Income Statement on a systematic basis in the periods in which the expenses are recognised.

153

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Annual Report and Accounts 2021

3 Critical accounting estimates and judgements

The preparation of the Consolidated Financial Statements requires Management to exercise judgement in applying the Group’s accounting

policies. It also requires the use of estimates and assumptions that affect the reported amounts of assets, liabilities, income and expenses.

Due to the inherent uncertainty in making these critical judgements and estimates, actual outcomes could be different.

During the year, Management reconsidered the critical accounting estimates and judgements for the Group. This process included reviewing the

last reporting period’s disclosures, the key judgements required on the implementation of forthcoming standards and the current period’s

challenging accounting issues. Where Management deemed an area of accounting to be no longer a critical estimate or judgement, an explanation

for this decision is found in note 3.3 to the Consolidated Financial Statements.

3.1 Critical estimates

Estimates and underlying assumptions are reviewed on an ongoing basis, with revisions recognised in the year in which the estimates are revised

and in any future years affected. There are no areas involving significant risk resulting in a material adjustment to the carrying amounts of

assets and liabilities within the next financial year.

3.2 Critical judgements

Judgements made by Management in the process of applying the Group’s accounting policies, which have the most significant effect on the

amounts recognised in the Consolidated Financial Statements, are as follows:

3.2.1 Technology Sourcing principal versus agent recognition

Management is required to exercise its judgement in the classification of certain revenue contracts for Technology Sourcing revenue recognition

on either an agent or principal basis.

Because the identification of the principal in a contract is not always clear, Management will make a determination by evaluating the nature of our

promise to our customer as to whether it is a performance obligation to pass control of the specified goods or services ourselves, in that we are

the principal, or to arrange for those goods or services to be provided by the other party, where we are the agent. We determine whether we are

a principal or an agent for each specified good or service promised to the customer by evaluating the nature of our promise to the customer

against a non-exhaustive list of indicators that a performance obligation could involve an agency relationship:

• evaluating who controls each specified good or service before that good or service is transferred to the customer;

• the vendor retains primary responsibility for fulfilling the sale;

• we take no inventory risk before or after the goods have been ordered, during shipping or on return;

• we do not have discretion to establish pricing for the vendor’s goods, limiting the benefit we can receive from the sale of those goods; and

• our consideration is in the form of a, usually predetermined, commission.

Management continues to monitor the primary indicators used to assess the ‘agent/principal’ presentation of our Software and certain Resold

Services revenue against our general contractual terms and conditions including, detailed analysis of how terms and conditions are applied in

practice, the weighting applied to the agent/principal indicators and evaluation of emerging practice. Management has concluded that whilst this

remains a finely balanced judgement, no change to the presentation of our Software and certain Resold Services revenues is currently required

and revenue for these items will continue to be presented gross where the underlying facts and circumstances remain the same. Management

continues to monitor the development of new methods of transacting business within the traditional vendor to reseller channel and the

emergence of best practice in the revenue recognition treatment and disclosure of all Technology Sourcing revenues.

Since the adoption of IFRS 15 on 1 January 2018, a line of business emerged within our Technology Sourcing business where vendors and

customers typically approach us with an opportunity where the vendor is taking the contract and performance risks and sets the selling price,

using Computacenter as a pass-through agent in the channel to transact the deal for a set fee. To date, these have been primarily large software

deals where there is no ongoing obligation of service on us following the transaction. We have no say in the pricing or selection of the product and

are merely standing in the sales channel between the vendor and customer for the predetermined fee. Management reviews the facts and

circumstances of these types of deals, case by case, with regards to its specific terms and conditions against the Group’s accounting policy to

determine whether our performance obligation is to provide the good or service itself, where we are acting as the principal in the deal, or to

arrange for another party to provide the good or service, where we are acting as an agent. Based on the facts and circumstances of each deal we

have classified several of these deals as agency, concluding that the fee received should be booked as net revenue. Such agency deals would have

increased revenue by £197.7 million during 2021 if recognised on a principal basis (2020: £273.7 million).

Following its meeting that concluded on 1 December 2021, the IFRS Interpretation Committee (the ‘Committee’) published a tentative agenda

decision in response to a submission from a valued added reseller to determine whether an entity should treat revenue from the resale of

standard software licences on a principal or agent recognition basis under IFRS 15 Revenue from Contracts with Customers (IFRS 15).

The Committee did not reach a definitive conclusion on the submission received, as it maintained that an entity should apply judgement in making

its assessment under the principles contained within IFRS 15, using the specific facts and circumstances relevant to the entity and the

transactions or contracts entered into. However, the Committee did provide a number of discrete guidance points on the application of various

control criteria or indicators that entities should consider under their IFRS 15 agent and principal recognition criteria processes that specifically

relate to the resale of standard software and have an impact on those resellers within the industry. A finalised agenda decision is not expected

until the second quarter of 2022, following the consideration of public comments which closed on 8 February 2022.

Notes to the Consolidated Financial Statements continued

For the year ended 31 December 2021

154

The Group typically recognises standalone software licence revenue on a principal or gross invoiced income basis, with a small number of

material transactions, where the fact pattern remains different to the standard terms and conditions, recognised as an agent. Whilst the

Committee is finalising its decision, the Group is working towards assessing changes to its accounting policies that will result if the final agenda

decision remains broadly characteristic of the tentative decision. The resultant change in policies would reflect that standalone revenue from

standard software sales (software) would be recognised on an agency or ‘net’ basis where the margin earned on the contract would be

recognised as revenue with zero cost of goods sold. Other software revenues, particularly where the Group has performed configuration or

customisation services, as part of the software sales agreement, would most likely continue to be recognised on a principal basis. Similarly,

the Group has determined that third-party services agreements resold on a standalone basis (resold services), such as vendor-provided

maintenance support agreements, would also be changed to be recognised on an agent basis due to the similar fact pattern of the transaction

to that of software sales.

Such a change in policy would be accompanied by a programme of system enhancements required to be able to accurately report on the new

basis. These changes, as required, will be allowed sufficient time to be appropriately implemented in order that the reporting under the new basis

is as accurate as possible.

The Group’s current best estimate, without doing a detailed retrospective contract by contract review, is that the proposed potential changes in

policy would have the following impact on the Group’s Financial Statements:

• Revenue and cost of sales would decrease by the value of revenue assessed as being recognised on an agency basis. Whilst the work is not yet

complete to determine the value for 2021, the total value of the revenue categories under consideration for the change in policy is estimated to

be up to £1,800 million in 2021. We estimate that the majority of that revenue in those categories will be derecognised, leaving only the margins

earned on the transactions to be recognised as revenue.

• Gross profit, operating profit, and profit before and after taxes will be unchanged.

These estimates are preliminary and subject to further Management review. However, they provide an order of magnitude to assess the future

impact on reported revenues. These estimates are for the total amount in these software and resold services revenue categories as measured

on a principal basis and include elements that may, following Management review, continue to be recognised on a principal or gross basis.

The Group will continue to report, as an alternative performance measure, all revenue recognised on a principal basis as Gross Invoiced Income,

to allow the reader of the accounts to more accurately determine the linkage between revenue and cash flows.

3.2.2 Bill and hold

The Group generates some of its revenue through its ‘bill and hold’ arrangement with its customers. This arises when the customer is invoiced but

the product is not shipped to the customer until a later date, in accordance with the customer’s request in a written agreement. In order to

determine the appropriate timing of revenue recognition, it is assessed whether control has transferred to the customer.

A bill and hold arrangement is only put in place when a customer lacks the physical space to store the product or the product previously ordered is

not yet needed in accordance with the customer’s schedule and the customer wants to guarantee supply of the product. In order to determine the

bill and hold arrangements, the following criteria must be met:

a) the reason for the bill and hold arrangement must be substantive (for example: the customer has requested the arrangement);

b) the product must be identified separately as belonging to the customer;

c) the product currently must be ready for physical transfer to the customer; and

d) the entity cannot have the ability to use the product or to direct it to another customer.

Judgement is required to determine if all of the criteria (a) to (d) have been met, to recognise a bill and hold sale. This is determined by

segregation and readiness of inventory and the review and approval of all customer requests, in order to assess whether the accounting policy

had been correctly applied to recognise a bill and hold sale.

£281.9 million of product sold is ‘held’ by the Group for ‘bill and hold’ transactions as at 31 December 2021 (2020: £231.3 million).

3.3 Change in critical estimates and critical judgements

During the year, Management reassessed the critical estimates and critical judgements.

Accounting for business combinations and valuation of intangibles is no longer considered a critical estimate by Management and has therefore

been removed from the above disclosure, as there were no material acquisitions during the current year.

Percentage of completion Services revenue recognition is no longer considered a critical estimate by Management and has therefore been

removed from the above disclosure. The number of contracts accounted for on this basis is reducing and forms a small part of our overall

contract base and Services revenues. Therefore, it is no longer a major source of estimation uncertainty that has a significant risk of resulting

in a material adjustment within the next financial year.

Exceptional items is no longer considered a critical judgement by Management and has therefore been removed from the above disclosure,

as no exceptional items occurred during the current year.

Technology Sourcing principal versus agent recognition has been added as a critical judgement during the year, as noted above at 3.2.1.

155

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4 Segment information

The Segment information is reported to the Board and the Chief Executive Officer. The Chief Executive Officer is the Group’s Chief Operating

Decision Maker (CODM). The operating Segments remain unchanged from those reported at 31 December 2020.

The Segmental reporting structure is the basis on which internal reports are provided to the Chief Executive Officer, as the CODM, for assessing

performance and determining the allocation of resources within the Group, in accordance with IFRS 8.25. Segmental performance is measured

based on external revenues, gross profit, adjusted

operating profit and adjusted

profit before tax. As noted on page 74, Central Corporate Costs

continue to be disclosed as a separate column within the Segmental note.

Segmental performance for the years ended 31 December 2021 and 31 December 2020 were as follows:

Year ended 31 December 2021

£m

Germany

£m

France

£m

North

America

£m

International

£m

Central

Corporate

Costs

£m

Total

£m

Revenue

Technology Sourcing revenue

Gross invoiced income 1,581.5 1,427.7 481.4 1,869.2 112.8 – 5,472.6

Principal element on agency contracts (115.1) (28.9) – (53.7) – – (197.7)

Total Technology Sourcing revenue 1,466.4 1,398.8 481.4 1,815.5 112.8 – 5,274.9

Services revenue

Professional Services 154.6 273.8 38.0 77.5 8.5 – 552.4

Managed Services 327.6 348.6 134.0 18.6 69.7 – 898.5

Total Services revenue 482.2 622.4 172.0 96.1 78.2 – 1,450.9

Total revenue 1,948.6 2,021.2 653.4 1,911.6 191.0 – 6,725.8

Results

Gross profit 268.2 312.0 68.1 180.2 39.3 – 867.8

Adjusted

administrative expenses (165.3) (174.2) (64.6) (149.2) (28.0) (23.7) (605.0)

Adjusted

operating profit/(loss) 102.9 137.8 3.5 31.0 11.3 (23.7) 262.8

Net interest – (2.7) (0.8) (2.7) (1.0) – (7.2)

Adjusted

profit/(loss) before tax 102.9 135.1 2.7 28.3 10.3 (23.7) 255.6

Amortisation of acquired intangibles (7.6)

Profit before tax 248.0

The reconciliation of adjusted

operating profit to operating profit as disclosed in the Consolidated Income Statement is as follows:

Year ended 31 December 2021

Total

£m

Adjusted

operating profit 262.8

Amortisation of acquired intangibles (7.6)

Operating profit 255.2

Notes to the Consolidated Financial Statements continued

For the year ended 31 December 2021

156

Year ended 31 December 2021

£m

Germany

£m

France

£m

North

America

£m

International

£m

Central

Corporate

Costs

£m

Total

£m

Other Segment information

Property, plant and equipment 30.4 37.7 5.3 9.2 7.4 – 90.0

Right-of-use assets 12.5 77.2 17.4 15.0 16.0 – 138.1

Intangible assets 44.6 16.5 10.2 191.4 11.0 – 273.7

Capital expenditure:

Property, plant and equipment 5.2 4.4 2.1 3.6 3.5 – 18.8

Right-of-use assets 3.0 52.3 8.0 4.1 2.8 – 70.2

Software 6.1 0.2 0.1 4.6 0.5 – 11.5

Depreciation of property, plant and

equipment 10.3 6.2 3.1 2.9 2.3 – 24.8

Depreciation of right-of-use assets 3.2 31.7 4.4 4.8 6.5 – 50.6

Amortisation of software 5.6 0.6 0.1 1.2 0.2 – 7.7

Share-based payments 7.4 2.1 0.3 0.7 0.1 – 10.6

Year ended 31 December 2020

£m

Germany

£m

France

£m

North

America

£m

International

£m

Central

Corporate

Costs

£m

Total

£m

Revenue

Technology Sourcing revenue

Gross invoiced income 1,504.4 1,316.2 526.4 996.3 110.5 – 4,453.8

Principal element on agency contracts (176.4) (18.7) – (78.6) – – (273.7)

Total Technology Sourcing revenue 1,328.0 1,297.5 526.4 917.7 110.5 – 4,180.1

Services revenue

Professional Services 129.1 233.8 35.7 19.6 7.2 – 425.4

Managed Services 316.3 345.0 110.7 7.2 56.6 – 835.8

Total Services revenue 445.4 578.8 146.4 26.8 63.8 – 1,261.2

Total revenue 1,773.4 1,876.3 672.8 944.5 174.3 – 5,441.3

Results

Gross profit 249.2 279.9 74.4 86.3 30.7 – 720.5

Adjusted

administrative expenses (158.9) (167.3) (61.4) (72.3) (27.1) (27.1) (514.1)

Adjusted

operating profit/(loss) 90.3 112.6 13.0 14.0 3.6 (27.1) 206.4

Net interest (1.1) (2.2) (0.6) (0.9) (1.1) – (5.9)

Adjusted

profit/(loss) before tax 89.2 110.4 12.4 13.1 2.5 (27.1) 200.5

Exceptional items:

– costs relating to acquisition of a subsidiary (0.7)

– redundancy and other restructuring credit 0.2

– gain on acquisition of a subsidiary 14.0

Total exceptional items 13.5

Amortisation of acquired intangibles (7.4)

Profit before tax 206.6

157

Financial Statements

Annual Report and Accounts 2021

4 Segment information continued

The reconciliation of adjusted

operating profit to operating profit as disclosed in the Consolidated Income Statement is as follows:

Year ended 31 December 2020

Total

£m

Adjusted

operating profit 206.4

Amortisation of acquired intangibles (7.4)

Exceptional items (0.5)

Operating profit 198.5

£m

Germany

£m

France

£m

North

America

£m

International

£m

Central

Corporate

Costs

£m

Total

£m

Other Segment information

Property, plant and equipment 40.9 42.6 8.0 9.0 6.5 – 107.0

Right-of-use assets 12.8 61.5 18.8 15.5 21.0 – 129.6

Intangible assets 51.6 17.1 1.9 192.5 11.6 – 274.7

Capital expenditure:

Property, plant and equipment 8.4 5.9 2.9 4.5 1.4 – 23.1

Right-of-use assets 3.8 16.7 10.5 – 17.6 – 48.6

Software 3.7 0.4 – – 0.3 – 4.4

Depreciation of property, plant and

equipment 11.1 6.6 2.2 1.5 2.6 – 24.0

Depreciation of right-of-use assets 4.6 29.5 4.2 2.2 4.7 – 45.2

Amortisation of software 5.8 0.9 – 0.1 0.4 – 7.2

Share-based payments 5.5 1.7 0.2 0.5 – – 7.9

Charges for the amortisation of acquired intangibles (where initial recognition was an exceptional item or a fair value adjustment on acquisition)

are excluded from the calculation of adjusted

operating profit. This is because these charges are based on judgements about their value and

economic life, are the result of the application of acquisition accounting rather than core operations, and whilst revenue recognised in the

Consolidated Income Statement does benefit from the underlying asset that has been acquired, the amortisation costs bear no relation to the

Group’s underlying ongoing operational performance. In addition, amortisation of acquired intangibles is not included in the analysis of Segment

performance used by the CODM.

Information about major customers

Included in revenues arising from the UK Segment are revenues of approximately £651.7 million (2020: £556.3 million) which arose from sales to

the Group’s largest customer. For the purpose of this disclosure, a single customer is considered to be a group of entities known to be under

common control. This customer consists of entities under control of the UK Government.

Notes to the Consolidated Financial Statements continued

For the year ended 31 December 2021

158

5 Revenue

Revenue recognised in the Consolidated Income Statement is analysed as follows:

2021

£m

2020

£m

Revenue by type

Gross invoiced income 5,472.6 4,453.8

Principal element on agency contracts (197.7) (273.7)

Technology Sourcing revenue 5,274.9 4,180.1

Services revenue

Professional Services 552.4 425.4

Managed Services 898.5 835.8

Total Services revenue 1,450.9 1,261.2

Total revenue 6,725.8 5,441.3

Contract balances

The following table provides the information about contract assets and contract liabilities from contracts with customers.

Note

31 December

2021

£m

31 December

2020

£m

Trade receivables 20 1,239.8 1,065.1

Contract assets, which are included in prepayments 20.2 27.7

Contract assets, which are included in accrued income 148.1 125.4

Contract liabilities, which are included in deferred income 257.6 292.5

The prepayments balance within the Consolidated Balance Sheet of £119.6 million consists of £20.2 million contract assets and £99.4 million

other prepayments.

The Group has implemented an expected credit loss impairment model with respect to contract assets using the simplified approach. Contract

assets have been grouped on the basis of their shared risk characteristics and a provision matrix has been developed and applied to these

balances to generate the loss allowance. The majority of these contract asset balances are with blue chip customers and the incidence of credit

loss is low. There has therefore been no material adjustment to the loss allowance under IFRS 9. Specific provisions are made against material

or high-risk balances based on trading experience or where doubt exists about the counterparty’s ability to pay. The expected credit losses on

contract assets which are within prepayments and accrued income are considered to be immaterial.

Significant changes in contract assets and liabilities

Contract assets are balances due from customers under long-term contracts as work is performed and therefore a contract asset is recognised

over the period in which the performance obligation is fulfilled. This represents the Group’s right to consideration for the services transferred to

date. Amounts are generally reclassified to trade and other receivables when these have been certified or invoiced to a customer. Refer to

note2.11.1 for credit terms of trade receivables.

Increase in trade receivables mainly in the UK, Germany and North America segments is driven by growth in revenue, as the Group experienced

a particularly strong fourth quarter of the year.

Win fees, deferred contract costs and fulfilment costs are included in the prepayments balance above. The Consolidated Income Statement

impact of the win fees was a recognition of a net income in 2021 of £0.6 million, with a corresponding cost to tax of £0.1 million for the year. As at

31December 2021, the win fee balance was £8.9 million. The Consolidated Income Statement impact of fulfilment costs was a recognition of a net

income in 2021 of £2.8 million, with a corresponding tax of charge of £1.0 million for the year.

As at 31 December 2021, the fulfilment costs balance was £9.3 million. No impairment loss was recorded for win fees or fulfilment costs during

the year.

Revenue was accrued in the reporting period amounting to £28.7 million, with a credit to foreign exchange of £6.0 million. No impairment loss was

recorded for accrued income during the year.

Revenue recognised in the reporting period that was included in the contract liability balance at the beginning of the period was £161.4 million.

Revenue recognised in the reporting period from performance obligations satisfied or partially satisfied in previous periods was nil. Partially

satisfied performance obligations continue to incur revenue and costs in the period.

Remaining performance obligations (Work in hand)

Contracts which have remaining performance obligations as at 31 December 2021 and 31 December 2020 are set out in the table below. The table

below discloses the aggregate transaction price relating to those unsatisfied or partially unsatisfied performance obligations, excluding both

(a)amounts relating to contracts for which revenue is recognised as invoiced and (b) amounts relating to contracts where the expected duration

of the ongoing performance obligation is one year or less.

159

Financial Statements

Annual Report and Accounts 2021

5 Revenue continued

Managed Services

Less than

one year

£m

One to

two years

£m

Two to

three years

£m

Three to

four years

£m

Four years

and beyond

£m

Total

£m

As at 31 December 2021 720.4 466.4 315.8 209.0 226.7 1,938.3

As at 31 December 2020 540.0 343.0 211.0 170.0 93.0 1,357.0

The average duration of contracts is between one and five years. However some contracts will vary from these typical lengths. Revenue is

typically earned over these varying timeframes. However more of the revenue noted above is expected to be earned in the short term.

6 Group operating profit

This is stated after charging/(crediting):

2021

£m

2020

£m

Depreciation of property, plant and equipment 24.8 24.0

Depreciation of right-of-use assets 50.6 45.2

(Gain)/loss on disposal of property, plant and equipment (1.3) 0.2

Amortisation of software 7.7 7.2

Loss on disposal of intangibles 0.5 0.3

Amortisation of acquired intangible assets 7.6 7.4

Severance costs 9.6 13.1

One-off employee EPS target bonus

– 5.2

Government grants (1.1) (6.4)

Gain on net foreign currency differences 0.3 0.4

Costs of inventories recognised as an expense 4,514.7 3,742.6

* The Company decided to mark the achievement of its long-held ambition to exceed £1 of adjusted

diluted earnings per share with a one-off employee bonus. The bonus was given

to circa 80 per cent of employees globally. Senior managers and those with commission-based rewards were excluded, with the focus on those longest serving. For those eligible,

the award was £200 or equivalent for an employee who had completed their first year of service, rising to £500 for those with more than seven years of service.

The rental income is included in Administrative expenses.

7 Auditor’s remuneration

2021

£m

2020

£m

Auditor’s remuneration:

– Audit of the Financial Statements 0.1 0.2

– Audit of subsidiaries 1.7 1.1

Total audit fees 1.8 1.3

Audit-related assurance services including the review of the Interim Report and Accounts 0.1 0.1

Taxation compliance services 0.1 0.1

Total non-audit services 0.2 0.2

Total fees 2.0 1.5

Audit-related assurance services represent the half year review and assurance over tax, both performed by the Group’s auditor KPMG LLP.

The Pivot audit for the year ended 31 December 2021 was performed by EY Canada for a fee of £0.5 million (2020: £0.1 million).

Certain taxation compliance services and other non-audit services in 2021 were provided by EY, auditor of a North American subsidiary.

Notes to the Consolidated Financial Statements continued

For the year ended 31 December 2021

160

8 Exceptional items

2021

£m

2020

£m

Operating profit

Costs relating to acquisition of a subsidiary – (0.7)

Gain on release of French Social Plan provision – 0.2

Gain on acquisition of subsidiary – 14.0

Exceptional operating profit – 13.5

Income tax

Tax credit relating to acquisition of a subsidiary – 0.7

Profit on exceptional items after taxation – 14.2

2020: Included within the prior year are the following exceptional items:

• An exceptional cost of £0.7 million resulted from the acquisition of Pivot and primarily related to fees paid to the Company’s advisors.

This cost is non-operational, unlikely to recur and consistent with our prior-year treatment of acquisition costs on material transactions as

exceptional items.

• A credit of £0.2 million arising on an expense previously put in exceptional costs within the financial statements of 2016, in relation to the 2014

French Social plan.

• The acquisition of BT Services France resulted in an exceptional gain of £14.0 million, which was recognised on consolidation of the subsidiary.

The gain arose because the net assets acquired for consideration of €1 totalled £14.0 million after fair value adjustments, including

£27.6million of cash. The business acquired comprised BT’s domestic French services operations which, on acquisition, were making

considerable losses on a stand-alone basis. The Company considers that the exceptional gain reflects the future losses that the acquired

business will incur over the medium term, as it is brought onto a sustainable footing through a combination of upskilling employees, cross-

selling into the Group’s customers, alignment with Group processes and systems, and the general improvement of its operating activities.

This gain was non-operational in nature, material in size and unlikely to recur and was therefore classified as exceptional.

• A further tax credit of £0.7 million was recorded due to post-acquisition activity in Computacenter United States Inc. This benefit derived from

payments which were settled by the vendor, out of the consideration paid, via post-acquisition capital contributions to Computacenter United

States Inc. As this credit was related to the acquisition and not operational activity within Computacenter United States Inc, is a one-off and

material to the overall tax result, we have classified this as an exceptional tax item, consistent with the treatment in 2018 and 2019.

9 Staff costs

The average monthly number of employees (including Executive Directors) during the year was made up as follows:

2021

No.

2020

No.

UK 4,294 4,117

Germany 6,338 6,418

France 2,385 2,160

North America 1,359 1,326

International 3,120 2,743

17,496 16,764

Their aggregate remuneration comprised:

2021

£m

2020

£m

Wages and salaries 906.3 809.6

Social security costs 135.1 121.8

Share-based payments 10.6 8.0

Pension costs 20.9 17.4

1,072.9 956.8

Share-based payments arise from transactions accounted for as equity-settled share-based payment transactions.

161

Financial Statements

Annual Report and Accounts 2021

Notes to the Consolidated Financial Statements continued

For the year ended 31 December 2021

10 Finance income

2021

£m

2020

£m

Bank interest received 0.2 0.4

Other interest received 0.1 0.1

0.3 0.5

11 Finance costs

2021

£m

2020

£m

Interest paid on bank loans and overdraft 0.9 1.8

Interest paid on credit facility 1.2 –

Interest paid on lease liabilities 5.2 4.5

Other interest paid 0.2 0.1

7.5 6.4

162

12 Income tax

a) Tax on profit from ordinary activities

2021

£m

2020

£m

Tax charged in the Consolidated Income Statement

Current income tax

UK corporation tax 23.8 18.1

Foreign tax:

– operating results before exceptional items 45.1 36.4

– exceptional items – (0.7)

Total foreign tax 45.1 35.7

Adjustments in respect of prior years 0.2 0.4

Total current income tax 69.1 54.2

Deferred tax

Operating results before exceptional items:

– origination and reversal of temporary differences (4.2) (0.7)

– change in tax rates (3.3) (0.5)

– adjustments in respect of prior years (0.1) (0.6)

Total deferred tax (7.6) (1.8)

Tax charge in the Consolidated Income Statement 61.5 52.4

b) Reconciliation of the total tax charge

2021

£m

2020

£m

Profit before income tax 248.0 206.6

At the UK standard rate of corporation tax of 19 per cent (2020: 19 per cent) 47.1 39.2

Expenses not deductible for tax purposes 0.3 –

Non-deductible element of share-based payment charge 0.1 0.1

Adjustments in respect of prior years 0.1 (0.2)

Effect of different tax rates of subsidiaries operating in other jurisdictions 16.2 14.3

Change in tax rate (3.3) (0.5)

Other differences 0.3 1.2

Overseas tax not based on earnings 1.6 1.4

Tax effect of income not taxable in determining taxable profit (0.9) (3.1)

At effective income tax rate of 24.8 per cent (2020: 25.4 per cent) 61.5 52.4

c) Tax losses

Deferred tax assets of £0.6 million (2020: £0.3 million) have been recognised in respect of losses carried forward.

In addition, as at 31 December 2021, there were unused tax losses across the Group of £287.0 million (2020: £307.6 million) for which no deferred

tax asset has been recognised. Of these losses, £25.7 million (2020: £24.7 million) arise in Germany and £261.3 million (2020: £282.9 million) arise

in France. A significant proportion of the losses arising in Germany have been generated in statutory entities that no longer have significant levels

of trade. The remaining unused tax losses relate to other loss-making overseas subsidiaries.

163

Financial Statements

Annual Report and Accounts 2021

12 Income tax continued

d) Deferred tax

Deferred income tax as at 31 December 2021 and 31 December 2020 relates to the following:

Consolidated Balance Sheet

Consolidated Income Statement

andConsolidated Statement

of Comprehensive Income

2021

£m

2020

£m

2021

£m

2020

£m

Deferred income tax assets

Relief on share option gains 14.6 7.0 2.6 1.7

Other temporary differences 13.6 10.3 2.6 0.5

Revaluations of foreign exchange contracts to fair value 0.7 1.0 (0.3) 0.6

Losses available for offset against future taxable income 0.6 0.3 0.3 (1.0)

Gross deferred income tax assets 29.5 18.6

Deferred income tax liabilities

Revaluations of foreign exchange contracts to fair value 0.5 1.0 0.5 (0.3)

Amortisation of intangibles 24.6 26.4 2.1 1.7

Gross deferred income tax liabilities 25.1 27.4

Deferred income tax charge 7.8 3.2

Net deferred income tax asset/(liabilities) 4.4 (8.8)

Disclosed on the Consolidated Balance Sheet

Deferred income tax assets 30.2 10.1

Deferred income tax liabilities (25.8) (18.9)

Net deferred income tax asset/(liabilities) 4.4 (8.8)

As at 31 December 2021, there was no recognised or unrecognised deferred income tax liability (2020: £nil) for taxes that could be payable on the

unremitted earnings of the Group’s subsidiaries, as the Group expects that future remittances of earnings from its overseas subsidiaries will

continue to be covered by relevant dividend exemptions. Following the departure of the UK from the European Union, the Group’s German

subsidiaries’ unremitted earnings are no longer covered by a dividend exemption. As a result of this situation, no dividend is currently planned

until there is more clarity regarding proposed changes in the bilateral treaties between Germany and the UK.

e) Factors affecting current and future tax charge

The main rate of UK Corporation tax for financial year 2021 is 19 per cent, as enacted in the Finance Act 2020. The March 2021 Budget announced

that a rate of 25 per cent will apply with effect from 1 April 2023, and this change was substantively enacted on 11 March 2021. The deferred tax in

these Consolidated Financial Statements reflects this.

We are closely monitoring the Organisation for Economic Co-operation and Development’s Two Pillar Solution to Address the Tax Challenges arising

from the Digitalisation of the Economy, which are expected to be enacted in 2022 with application from 1 January 2023. The accounting

implications under IAS 12 will be determined when the relevant legislation is available.

Notes to the Consolidated Financial Statements continued

For the year ended 31 December 2021

164

13 Earnings per share

Earnings per share amounts are calculated by dividing profit attributable to ordinary equity holders by the weighted average number of ordinary

shares outstanding during the year (excluding own shares held).

To calculate diluted earnings per share, the weighted average number of ordinary shares in issue is adjusted to assume conversion of all dilutive

potential shares. Share options granted to employees where the exercise price is less than the average market price of the Company’s ordinary

shares during the year are considered to be dilutive potential shares.

2021

£m

2020

£m

Profit attributable to equity holders of the Parent 185.3 153.8

2021

£m

2020

£m

Basic weighted average number of shares (excluding own shares held) 113.0 112.9

Effect of dilution:

Share options 2.2 2.0

Diluted weighted average number of shares 115.2 114.9

2021

pence

2020

pence

Basic earnings per share 164.0 136.2

Diluted earnings per share 160.9 133.8

14 Dividends paid and proposed

2021

£m

2020

£m

Declared and paid during the year

Equity dividends on ordinary shares:

Final dividend for 2020: 38.4 pence (2019: nil) 43.4 –

Interim dividend for 2021: 16.9 pence (2020: 12.3 pence) 19.0 13.9

62.4 13.9

Proposed (not recognised as a liability as at 31 December)

Equity dividends on ordinary shares:

Final dividend for 2021: 49.4 pence (2020: 38.4 pence) 56.4 43.8

165

Financial Statements

Annual Report and Accounts 2021

15 Property, plant and equipment

Freehold

land and

buildings

£m

Short leasehold

improvements

£m

Fixtures,

fittings,

equipment

and vehicles

£m

Property, plant

and equipment

excluding

right-of-use

assets £m

Right-of-

use assets

£m

Total

£m

Cost

At 1 January 2020 85.8 28.9 137.7 252.4 154.6 407.0

Relating to acquisition of subsidiaries (note 18) 0.1 1.4 4.0 5.5 12.8 18.3

Additions – 4.9 18.2 23.1 48.6 71.7

Disposals – (2.5) (6.7) (9.2) (14.2) (23.4)

Transfers – 0.6 (0.6) – – –

Foreign currency adjustment 1.1 0.1 2.3 3.5 5.5 9.0

At 31 December 2020 87.0 33.4 154.9 275.3 207.3 482.6

Relating to acquisition of subsidiaries (note 18) – – 0.3 0.3 1.4 1.7

Additions – 3.5 15.3 18.8 70.2 89.0

Disposals – (1.6) (24.9) (26.5) (25.3) (51.8)

Transfers (0.5) – (3.1) (3.6) – (3.6)

Foreign currency adjustment (1.5) (1.1) (5.8) (8.4) (11.5) (19.9)

At 31 December 2021 85.0 34.2 136.7 255.9 242.1 498.0

Accumulated depreciation and impairment

At 1 January 2020 42.9 11.9 96.2 151.0 43.7 194.7

Provided during the year 1.9 3.8 18.3 24.0 45.2 69.2

Disposals – (2.5) (6.2) (8.7) (12.9) (21.6)

Foreign currency adjustment 0.1 0.1 1.8 2.0 1.7 3.7

At 31 December 2020 44.9 13.3 110.1 168.3 77.7 246.0

Provided during the year 2.0 4.5 18.3 24.8 50.6 75.4

Disposals – (1.3) (19.0) (20.3) (19.9) (40.2)

Transfers (0.4) – (1.7) (2.1) – (2.1)

Foreign currency adjustment 0.1 (0.6) (4.3) (4.8) (4.4) (9.2)

At 31 December 2021 46.6 15.9 103.4 165.9 104.0 269.9

Net book value

At 31 December 2021 38.4 18.3 33.3 90.0 138.1 228.1

At 31 December 2020 42.1 20.1 44.8 107.0 129.6 236.6

At 1 January 2020 42.9 17.0 41.5 101.4 110.9 212.3

The Group leases various properties, equipment and cars. Rental contracts are typically made for fixed periods of two to 10 years, but might have

extension options. Lease terms are negotiated on an individual basis and contain a wide range of different terms and conditions. The lease

agreements do not impose any covenants, but leased assets cannot be used as security for borrowing purposes.

Transfers relate to computer equipment, incorrectly classed, in Computacenter NS, acquired in 2020, which have been reclassed to inventories.

The net book value transferred was £1.0 million (cost of £2.9 million and accumulated depreciation of £1.9 million).

Transfers relate to assets, incorrectly classed to fixtures, fittings, equipment and vehicles, in FusionStorm, which have been reclassed to

software. The net book value transferred was £0.3 million (cost of £0.6 million and accumulated depreciation of £0.3 million).

As at 31 December 2021, the net book value of recognised right-of-use assets relating to land and buildings was £82.7 million (2020: £90.3 million)

and plant and equipment £55.4 million (2020: £39.3 million). The depreciation charge for the year relating to those assets was £21.0 million

(2020: £18.8 million) and £29.6 million (2020: £26.4 million), respectively.

Notes to the Consolidated Financial Statements continued

For the year ended 31 December 2021

166

16 Intangible assets

Goodwill

£m

Software

£m

Acquired intangible assets

Total

£m

Customer

relationships

£m

Others

£m

Cost

At 1 January 2020 109.5 108.3 60.7 20.5 299.0

Relating to acquisition of subsidiaries (note 18) 57.9 0.3 57.2 1.7 117.1

Additions – 4.4 – – 4.4

Disposals – (3.4) – – (3.4)

Foreign currency adjustment (2.4) 0.3 (5.2) 0.4 (6.9)

At 31 December 2020 165.0 109.9 112.7 22.6 410.2

Additions 2.3 11.5 – – 13.8

Disposals – (9.2) – – (9.2)

Transfers – 0.6 – – 0.6

Foreign currency adjustment (1.4) (0.8) 1.3 (0.5) (1.4)

At 31 December 2021 165.9 112.0 114.0 22.1 414.0

Accumulated amortisation and impairment

At 1 January 2020 10.3 87.7 5.0 20.3 123.3

Provided during the year – 7.2 5.7 1.7 14.6

Disposals – (3.1) – – (3.1)

Foreign currency adjustment 0.7 0.2 (0.5) 0.3 0.7

At 31 December 2020 11.0 92.0 10.2 22.3 135.5

Provided during the year – 7.7 7.5 0.1 15.3

Disposals – (8.7) – – (8.7)

Transfers – 0.3 – – 0.3

Foreign currency adjustment (0.9) (0.9) 0.1 (0.4) (2.1)

At 31 December 2021 10.1 90.4 17.8 22.0 140.3

Net book value

At 31 December 2021 155.8 21.6 96.2 0.1 273.7

At 31 December 2020 154.0 17.9 102.5 0.3 274.7

At 1 January 2020 99.2 20.6 55.7 0.2 175.7

Transfers relate to assets, incorrectly classed to fixtures, fittings, equipment and vehicles, in FusionStorm, which have been reclassed to

software. The net book value transferred was £0.3 million (cost of £0.6 million and accumulated depreciation of £0.3 million).

17 Impairment testing of goodwill, other intangible assets and other non-current assets

Goodwill acquired through business combinations has been allocated to the following CGUs:

• Computacenter (UK) Limited

• Computacenter Germany

• Computacenter AG

• cITius AG

• Computacenter Belgium

• Computacenter United States Inc.

• Computacenter Netherlands (formerly Misco Solutions B.V.)

• PathWorks GmbH

• Pivot Technology Solutions, Inc. (Pivot) USA CGU

• Pivot Technology Solutions, Inc. (Pivot) Canada CGU

• ITL logistics GmbH

These represent the lowest level within the Group at which goodwill is monitored for internal Management purposes. Certain other corporate

assets are unable to be allocated against specific CGUs. These assets are tested across an aggregation of CGUs that utilise the asset.

167

Financial Statements

Annual Report and Accounts 2021

17 Impairment testing of goodwill, other intangible assets and other non-current assets continued

Movements in goodwill

(UK)

Limited

£m

Germany

£m

cITius AG

£m

Belgium

£m

Fusion

-Storm

£m

Netherlands

£m

PathWorks

GmbH

£m

Pivot

Technology

Solutions,

Inc

(USA

CGU)

£m

Pivot

Technology

Solutions,

Inc

(Canada

CGU)

£m

ITL

logistics

GmbH

Total

£m

1 January 2020 35.0 15.3 1.0 2.1 1.4 38.2 3.1 3.1 – – – 99.2

Relating to

acquisition of

subsidiaries – – – – – – – – 52.8 5.0 – 57.8

Foreign currency

adjustment – 0.8 0.1 0.1 0.1 (1.6) 0.2 0.1 (2.7) (0.1) – (3.0)

31 December

2020 35.0 16.1 1.1 2.2 1.5 36.6 3.3 3.2 50.1 4.9 – 154.0

Relating to

acquisition of

subsidiaries

1.4 – – – – – – – – – 0.9 2.3

Foreign currency

adjustment – (1.1) – (0.1) (0.1) 0.4 (0.2) (0.1) 0.6 0.1 – (0.5)

31 December

2021 36.4 15.0 1.1 2.1 1.4 37.0 3.1 3.1 50.7 5.0 0.9 155.8

Market growth

rate 2.3% 1.7% 1.9% 1.9% 1.7% 2.3% 1.9% 1.9% 2.3% 2.3% 1.7%

Discount rate

(pre tax) 12.4% 11.0% 7.7% 7.7% 11.0% 13.1% 11.3% 7.7% 13.9% 17.0% 11.0%

Discount rate

(post tax) 9.9% 8.2% 7.1% 7.1% 8.7% 10.2% 8.6% 7.1% 10.7% 13.0% 8.2%

CC – Computacenter.

CC UK Limited increased its interest in RDC.

Key assumptions used in value-in-use calculations

The recoverable amounts of all CGUs have been determined based on a value-in-use calculation. To calculate this, cash flow projections are based

on financial budgets approved by senior Management covering a three-year period and on long-term market growth rates of between 1.7 per cent

and 2.3 per cent (2020: between 1.0 and 1.8 per cent) thereafter.

Key assumptions used in the value-in-use calculation for all CGUs for 31 December 2021 and 31 December 2020 are:

• budgeted revenue, which is based on long-run market growth forecasts;

• budgeted gross margins, which are based on average gross margins achieved in the year immediately before the budgeted year, adjusted for

expected long-run market pricing trends; and

• the discount rate applied to cash flow projections ranges from 7.1 per cent to 13.0 per cent (2020: 6.5 per cent to 12.4 per cent) which represents

the Group’s post-tax measure estimating the weighted-average cost of capital based on the rate of government bonds in the relevant market

and in the same currency as the cash flows, adjusted for a risk premium to reflect the increased risk of investing in equities generally.

Each CGU generates value substantially in excess of the carrying value of goodwill attributed to each of them. Management therefore believes

that no reasonably possible change in any of the above key assumptions would cause the carrying value of the unit to materially exceed its

recoverable amount.

Other acquired intangible assets

Other acquired intangible assets consist of customer relationships, order backlog and tools and technology. The expected useful lives are shown

in note 2.

Other non-current assets

When there is an indication of impairment within a CGU, the carrying values of the non-current assets are compared to their recoverable amount,

which is the higher of the assets’ fair value less costs of disposal or the value-in-use of the CGU calculated as described above.

Notes to the Consolidated Financial Statements continued

For the year ended 31 December 2021

168

18 Investments

a) Investment in associate

The following table illustrates summarised information of the investment in associates:

2021

£m

2020

£m

Cost

At 1 January and 31 December 0.1 0.1

Impairment

At 1 January and 31 December – –

Carrying value 0.1 0.1

Gonicus GmbH

The Group has a 20 per cent (2020: 20 per cent) interest in Gonicus GmbH, whose principal activity is the provision of open-source software.

Gonicus is a private entity, incorporated in Germany, that is not listed on any public exchange and therefore there is no published quotation price

for the fair value of this investment. The reporting date of Gonicus is 31 December.

b) Investment in subsidiaries

The Group’s subsidiary undertakings are as follows:

Name Country of incorporation Nature of business

Proportion of voting rights

and shares held

2021 2020

Computacenter Pty Ltd. Australia

IT infrastructure services 100%

100%

Computacenter NV/SA Belgium

IT infrastructure services 100%

100%

Computacenter TeraMach Inc. Canada

IT infrastructure services 100%

100%

Computacenter Hong Kong Limited China

IT infrastructure services 100%

100%

Computacenter Pivot Hong Kong Limited China

IT infrastructure services 100%

100%

Computacenter (UK) Limited England

IT infrastructure services 100% 100%

TeamUltra Limited England

IT infrastructure services 100%

100%

R.D. Trading Limited

England

IT infrastructure services 95%

vii

90%

vii

Pivot Solutions International (UK) Ltd. England

IT infrastructure services 100%

100%

Computacenter France SAS France

IT infrastructure services 100% 100%

Computacenter NS France

IT infrastructure services 100%

100%

Computacenter AG & Co oHG Germany

IT infrastructure services 100% 100%

Computacenter Aktiengesellschaft Germany

IT infrastructure services 100% 100%

Computacenter Management GmbH Germany

IT infrastructure services 100% 100%

Computacenter Managed Services GmbH Germany

IT infrastructure services 100% 100%

Computacenter Germany AG & Co oHG Germany

IT infrastructure services 100%

100%

Computacenter Holding GmbH Germany

IT infrastructure services 100% 100%

Alfatron GmbH Elektronik – Vertrieb Germany

IT infrastructure services 100%

100%

C’NARIO Informationsprodukte Vertriebs-GmbH Germany

IT infrastructure services 100%

100%

E’ZWO Computer vertriebs Germany

IT infrastructure services 99.09%

99.09%

ITL logistics GmbH

Germany

IT infrastructure services 100%

100%

Computacenter Ireland Limited Ireland

IT infrastructure services 100%

100%

Computacenter Services Ireland Limited Ireland

IT infrastructure services 100%

100%

Computacenter B.V. Netherlands

IT infrastructure services 100% 100%

Computacenter NV Netherlands

IT infrastructure services 100% 100%

Pivot Services International Singapore Pte. Ltd. Singapore

IT infrastructure services 100%

100%

Computacenter (Pty) Limited South Africa

IT infrastructure services 100%

100%

Computacenter AG Switzerland

IT infrastructure services 100% 100%

Computacenter PS AG Switzerland

IT infrastructure services 100%

iii

100%

iii

Computacenter TS GmbH Switzerland

IT infrastructure services 100%

iii

100%

iii

Computacenter United States Inc. USA

IT infrastructure services 100%

100%

FusionStorm Acquisition Corp. USA

IT infrastructure services 100%

100%

169

Financial Statements

Annual Report and Accounts 2021

Name Country of incorporation Nature of business

Proportion of voting rights

and shares held

2021 2020

FusionStorm International Inc. USA

IT infrastructure services 100%

100%

Computacenter (U.S.), Inc. USA

IT infrastructure services 100% 100%

Pivot Technology Solutions, Ltd. USA

IT infrastructure services 100%

100%

Pivot Technology Services Corp. USA

IT infrastructure services 100%

100%

ARC Acquisition (US), Inc. USA

IT infrastructure services 100%

100%

Prosys Information System Inc. (WBE) USA

IT infrastructure services 46.4%

viii

44.9%

Applied Computer Solutions (WBE) USA

IT infrastructure services 40%

viii

40%

viii

Digica Group Finance Limited England

Investment property 100%

100%

Computacenter Immobilien GmbH Germany

Investment property 100%

100%

Computacenter Information Technology

(Shanghai) Company Limited China

International call centre services 100%

100%

Computacenter Services Kft Hungary

International call centre services 100%

100%

Computacenter India Private Limited India

International call centre services 100%

100%

Computacenter Services (Malaysia) Sdn. Bhd Malaysia

International call centre services 100%

100%

Computacenter México S. A. de C.V. Mexico

International call centre services 100%

100%

Pivot of the Americas, S. A. de C.V. Mexico

International call centre services 100%

100%

Computacenter Poland sp. Z.o.o. Poland

International call centre services 100%

100%

Computacenter Services S.R.L. Romania

International call centre services 90%

–

Computacenter Services (Iberia) SLU Spain

International call centre services 100%

100%

FusionStorm Netherlands Cooperatief Netherlands

Financial holdings 100%

100%

Computacenter Quest Trustees Limited England

Employee share scheme trustees 100%

100%

Computacenter Trustees Limited England

Employee share scheme trustees 100%

100%

Allnet Limited England

Dormant company 100%

100%

Amazon Computers Limited England

Dormant company 100%

100%

Amazon Energy Limited England

Dormant company 100%

100%

Amazon Systems Limited England

Dormant company 100%

100%

CAD Systems Limited England

Dormant company 100%

100%

Compufix Limited England

Dormant company 100%

100%

Computacenter (FMS) Limited England

Dormant company 100%

100%

Computacenter (Management Services) Limited England

Dormant company 100%

100%

Computacenter (Mid-Market) Limited England

Dormant company 100%

100%

Computacenter Distribution Limited England

Dormant company 100%

100%

Computacenter Leasing Limited England

Dormant company 100%

100%

Computacenter Maintenance Limited England

Dormant company 100%

100%

Computacenter Overseas Holdings Limited England

Dormant company 100%

100%

Computacenter Services Limited England

Dormant company 100%

100%

Computacenter Software Limited England

Dormant company 100%

100%

Computacenter Solutions Limited England

Dormant company 100%

100%

Computacenter Training Limited England

Dormant company 100%

100%

Computadata Limited England

Dormant company 100%

100%

Computer Services Group Limited England

Dormant company 100%

100%

Digica Group Limited England

Dormant company 100%

100%

Digica Group Holdings Limited England

Dormant company 100%

100%

Digica SMP Limited England

Dormant company 100%

100%

Digica (FMS) Limited England

Dormant company 100%

100%

ICG Services Limited England

Dormant company 100%

100%

Kit Online Limited England

Dormant company 100%

100%

M Services Limited England

Dormant company 100%

100%

Merchant Business Systems Limited England

Dormant company 100%

100%

Merchant Systems Limited England

Dormant company 100%

100%

Logival (SARL) France

Dormant company 100%

100%

Notes to the Consolidated Financial Statements continued

For the year ended 31 December 2021

18 Investments continued

170

Name Country of incorporation Nature of business

Proportion of voting rights

and shares held

2021 2020

Damax GmbH Switzerland

Dormant company 100%

iii

100%

iii

Computacenter (US) Defense Inc. USA

Dormant company 100%

100%

i Includes indirect holdings of 100 per cent via Computacenter (UK) Limited

ii Includes indirect holdings of 100 per cent via Computacenter Holding GmbH, excludes

E’ZWO Computervertriebs which is 99.09 per cent

iii Includes indirect holdings of 100 per cent via Computacenter AG

iv Includes indirect holdings of 100 per cent via Computacenter France SAS

v Includes indirect holdings of 100 per cent via Computacenter (U.S.) Inc.

vi Includes indirect holdings of 1 per cent via Computacenter (UK) Limited

vii Includes indirect holdings of 90 per cent via Computacenter (UK) Limited

viii Includes indirect holdings of 44.9 per cent via Pivot Technology Services Corp.

ix Includes indirect holdings of 40 per cent via Pivot Technology Services Corp.

Tower 2, Darling Park, 201 Sussex Street, Sydney 2000, New South Wales, Australia

Ikaroslaan 31, B-1930 Zaventem, Belgium

³ 1130 Morrison Drive, Suite 105, Ottawa, ON K2H 9N6 Canada

3806 Central Plaza, 18 Harbour Road, Wanchai, Hong Kong

Unit 2, 10/F, NEO, 123 Hoi Bun Road, Kwun Tong, Kowloon, Hong Kong

Hatfield Avenue, Hatfield, Hertfordshire, AL10 9TW, United Kingdom

Tekhnicon, Springwood, Braintree, Essex, CM7 2YN, United Kingdom

25 Canada Square, Level 37, London, E14 5LQ, United Kingdom

229 rue de la Belle Etoile, ZI Parid Nord II, BP 52387, 95943 Roissy CDG Cedex, France

Computacenter Park 1, 50170 Kerpen, Germany

Kattenbug 2, 50667 Koln, Germany

Werner-Eckert-Str. 16 – 18, 81829 Munchen, Germany

Trias Gewerbepark, Lohstrasse 25 b, Schwaig D-85445, Germany

Skybridge House, Corballis Road North, Dublin Airport, Swords, Co. Dublin, K67P6K2,

Ireland

Computacenter plc is the ultimate Parent entity of the Group

ITL logistics GmbH (ITL)

On 30 April 2021, the Group acquired 100 per cent of the voting shares of ITL logistics GmbH (ITL) for a consideration of €1.7 million cash. ITL is an IT

logistics provider based in Germany. The acquisition has been accounted for using the purchase method of accounting.

R.D. Trading Limited (RDC)

On 10 August 2019, the Group acquired 90 per cent of the voting shares of RDC for a consideration of 90 pence. On 26 October 2021, the Group

acquired a further 4.99 per cent of the voting shares for a consideration of £1.4 million cash from the seller of RDC. RDC is based in the UK and is an

IT assets disposal business. The acquisition has been accounted for using the purchase method of accounting.

c) Pivot Technology Solutions Inc. (Pivot)

Applied Computer Solutions (ACS)

ACS is a 40 per cent owned affiliate of a Pivot subsidiary, whose principal office is located in Huntington Beach, California, United States of

America. Despite not owning a majority of the voting rights, Computacenter controls this entity through a Pivot subsidiary for accounting

purposes, based on the following facts and circumstances:

• Pivot has the right in its sole discretion to either acquire, at any time, shares of ACS that it does not already own, or to designate a different

owner to purchase the shares provided such transfer(s) are in compliance with applicable Women Business Enterprise (WBE) requirements;

• Pivot has multiple representatives on the ACS board of directors;

• any significant decisions made at ACS require the approval of the ACS board of directors and/or shareholders, including board changes,

payment of dividends, mergers or acquisitions, material changes to compensation, incurring debt in excess of $100, causing any material

change in the business, and/or assignment or termination of any material agreement; and

• Pivot receives the majority of the benefits from the activities of ACS.

2021

2020

Current assets 60.0 15.0

Non-current assets 16.4 16.6

Current liabilities 6.8 30.2

Non-current liabilities 0.2 –

Revenue 206.5 119.5

Total comprehensive income (loss) 2.8 0.3

% interest held 40% 40%

6th Floor, 2 Grand Canal Square, Dublin 2, Dublin D02A342, Ireland

Gondel 1, 1186 MJ Amstelveen, Netherlands

Beech Avenue 54 – 80 1119 PW Schipol-Rjik, Netherlands

Prins Bernhardplein 200, 1097JB Amsterdam, Netherlands

4 Battery Road, #25-01 Bank of China Building, 049908, Singapore

Klein D’Aria Estate, 97 Jip de Jager Drive, Belville, 7535, Cape Town, South Africa

Riedstrasse 14, CH-8953 Dietikon, Switzerland

Giessereistrasse 4, CH-8620 Wetzikon, Switzerland

Luzernerstrasse 52c, CH 6025 Neudorf, Switzerland

1 University Ave, Suite 102, Westwood, MA 02090, United States

6025 The Corners Parkway, Suite 100, Norcorss, GA 30092, United States

607 E Sonterra Blvd, Suite 250, San Antonio TX 78258, United States

Unit 229, Block 2, Building 1, Huanhu West 2nd Road no. 888 Nanhui New Town, Putong

District Shanghai, China

Haller Gardens, Building D. 1st Floor, Soroksari ut 30 – 34, Budapest 1095, Hungary

4th Floor, Purva Premiere, Residency Road, Bangalore 560025, India

Level 9, Tower 1, Puchong Financial Corporate Centre, Jalan Puteri 1/2, Bandar Puteri

47100 Puchong, Selangor Darul Ehsan, Malaysia

Av. Paseo de la Reforma, No.412 floor 5, Col.Juarez, Delegacion Cuauhtemoc, CP06600,

Mexico City, Mexcio

Presa de la Angostura 23 PB, Colonia Irrigacion 11500, Distrito Federal, Mexico City,

Mexico

Ul. Glogowska 31/33, 60 – 702, Poznan, Poland

“Stables Office”, 20A Onisifor Ghibu, Record Park, Cluj-Napoca, CJ 400185, Romania

Carrer de Sancho De Avila 52 – 58, 08018, Barcelona, Spain

171

Financial Statements

Annual Report and Accounts 2021

18 Investments continued

ProSys Information Systems, Inc (ProSys)

ProSys is a 46.4 per cent owned affiliate of a Pivot subsidiary, whose principal office is located in Norcross, Georgia, United States of America.

Despite not owning a majority of the voting rights, Computacenter controls this entity through a Pivot subsidiary for accounting purposes based

on the following facts and circumstances:

• Pivot has the right to either acquire, at any time, the remaining shares of ProSys it does not already own or to designate a different owner

to purchase the shares provided such transfer(s) are in compliance with applicable WBE requirements;

• Pivot is represented on the ProSys board of directors and any significant decisions made at ProSys requires the approval of the board of

directors and/or shareholders, including changes to its board of directors, payment of dividends, mergers or acquisitions, material changes

to compensation, incurring debt in excess of $0.1 million, causing any material change in the business, and/or assigning or termination of any

material agreement; and

• Pivot receives the majority of the benefits from the activities of ProSys.

2021

2020

Current assets 197.9 181.8

Non-current assets 13.2 6.5

Current liabilities 185.8 177.0

Non-current liabilities 12.0 5.1

Revenue 677.1 543.2

Total comprehensive income/(loss) 1.7 0.3

% interest held 46.4% 44.9%

d) Acquisitions in previous periods

Pivot Technology Solutions Inc. (Pivot)

The following table summarises the recognised amounts of assets acquired, and liabilities assumed, at the date of acquisition:

Fair value to the

Group 2020

Property, plant and equipment (including right-of-use assets) 13.4

Software 0.3

Customer relationship and order book 57.0

Contract asset 39.2

Inventories 40.7

Trade and other receivables 142.9

Deferred tax asset 3.4

Cash and short-term deposits 2.6

Trade and other payables (165.4)

Contract liability (42.3)

Deferred tax liabilities (13.9)

Credit facility (62.2)

Lease liabilities (10.4)

Net assets acquired 5.3

Less Minority Interest Share (2.9)

Goodwill arising on acquisition 57.9

60.3

Discharged by:

Cash paid on acquisition 60.3

Cash and cash equivalents acquired

Cash and short-term deposits 2.6

Cash outflow on acquisition 57.7

Notes to the Consolidated Financial Statements continued

For the year ended 31 December 2021

172

BT France SAS (Computacenter NS)

The following table summarises the recognised amounts of assets acquired, and liabilities assumed, at the date of acquisition:

Fair value to the

Group 2020

Property, plant and equipment (including right-of-use assets) 4.9

Customer relationship 1.9

Inventories 0.3

Trade and other receivables 12.7

Cash and short-term deposits 27.6

Prepayments 16.8

Trade and other payables (32.3)

Lease liabilities (2.4)

Pension liabilities (9.9)

Provisions (5.6)

Net assets acquired 14.0

Gain on acquisition of subsidiary 14.0

Discharged by:

Cash paid on acquisition –

Cash and cash equivalents acquired

Cash and short-term deposits 27.6

Cash inflow on acquisition 27.6

In 2021, no change was recorded to the fair values of Pivot Technology Solutions Inc. (Pivot) and BT France SAS (Computacenter NS), both of which

were acquired in 2020.

173

Financial Statements

Annual Report and Accounts 2021

19 Inventories

2021

£m

2020

£m

Inventories for re-sale 341.3 211.3

20 Trade and other receivables

2021

£m

2020

£m

Trade receivables before provisions 1,265.2 1,093.2

Provision for doubtful debts (7.8) (7.8)

Provision for credit notes (17.6) (20.3)

Trade receivables 1,239.8 1,065.1

Other receivables 35.4 30.8

1,275.2 1,095.9

Trade receivables are non-interest bearing and are generally on 30 to 90-day credit terms. Note 27 sets out the Group’s strategy towards

credit risk.

Other receivables generally arise from transactions outside the usual operating activities of the Group and comprise tax receivables (VAT, GST,

franchise taxes, and sales and use taxes) of £24.4 million (2020: £20.8 million) and other receivables of £11.0 million (2020: £10.0 million). Other

receivables are financial assets and are measured at amortised cost.

The movements in the provision for doubtful debts were as follows:

2021

£m

2020

£m

At 1 January 7.8 6.7

Relating to acquisition – 1.2

Charge for the year 7.5 2.2

Utilised (0.4) (0.7)

Unused amounts reversed (6.9) (1.8)

Foreign currency adjustment (0.2) 0.2

At 31 December 7.8 7.8

There was no change made to the level of provision for doubtful debts upon adoption of the simplified Expected Credit Loss model under IFRS 9.

The doubtful debt provision is determined as follows:

Past due but not impaired

Total

£m

Neither past due

nor impaired

£m

<30 days

£m

30–60 days

£m

60–90 days

£m

90–120 days

£m

>120 days

£m

2021

Expected loss rate 0.6% 0.2% 0.4% 0.6% 3.4% 15.4% 20.4%

Gross carrying amount 1,265.2 1,046.4 133.5 32.6 31.9 11.0 9.8

Provision 7.8 2.2 0.6 0.2 1.1 1.7 2.0

2020

Expected loss rate 0.7% 0.1% 1.3% 4.3% 0.6% 11.1% 29.5%

Gross carrying amount 1,093.2 944.5 54.8 23.0 52.4 5.4 13.2

Provision 7.8 1.2 0.7 1.0 0.3 0.6 3.9

Notes to the Consolidated Financial Statements continued

For the year ended 31 December 2021

174

21 Cash and cash equivalents

2021

£m

2020

£m

Cash and short-term deposits 285.2 309.8

Bank overdraft (12.0) –

Cash and cash equivalents in the consolidated cash flow statement 273.2 309.8

Cash at bank and in hand earns interest at floating rates based on daily bank deposit rates. Short-term deposits are made for varying periods of

between one day and three months depending on the immediate cash requirements of the Group, and earn interest at the respective short-term

deposit rates. The fair value of cash and cash equivalents is £273.2 million (2020: £309.8 million).

During the year ended 31 December 2021, the Group continued to maintain strong cash generation and finance its operational requirements from

its cash balance. The overdraft facilities are retained by the Group and can be used upon requirement. The uncommitted overdraft facilities

available to the Group are £13.3 million as at 31 December 2021 (2020: £13.5 million). In 2020, the Group specific committed facility of £60.0 million

was extended until 8 September 2023. The Company acquired Pivot in 2020 with a credit facility. The utilised facility was £7.0 million as at

31 December 2021 (2020: £58.5 million).

Expected credit loss on cash and cash equivalents is negligible and therefore no provision is held.

22 Trade and other payables

2021

£m

2020

£m

Trade payables 989.3 719.7

Other payables 421.1 397.0

1,410.4 1,116.7

Trade payables are non-interest bearing and are normally settled on net monthly terms.

The Group had no short-term supplier extended-term interest-bearing credit facilities (2020: nil).

Other payables, which principally relate to other taxes, social security costs and accruals, are non-interest bearing and have an average term

of three months.

The Group regularly participates in Industry standard vendor rebate plans, primarily relating to volume discounts on purchases, often paid

retrospectively. Rebates are factored into the calculation of purchase cost of inventory valuations. Owing to the nature of these rebate plans,

the calculation of rebates is not subject to significant estimation uncertainty, nor is their recognition a matter of significant judgement.

23 a) Financial liabilities

2021

£m

2020

£m

Current

Bank loans

5.4 47.1

Credit facility 7.0 58.4

Other loans 2.7 –

15.1 105.5

Non-current

Bank loans 9.8 15.7

Other loans 6.9 –

16.7 15.7

31.8 121.2

There are no material differences between the fair value of financial liabilities and their book value.

175

Financial Statements

Annual Report and Accounts 2021

23 a) Financial liabilities continued

Bank loans

The Group has two principal bank loans:

• A total loan of €38.5 million was drawn at various stages between December 2017 and July 2018 to finance the fit out of the new German

headquarters building and Integration Center in Kerpen. Further details are shown below:

– €8.0 million drawn in December 2017, carries fixed interest rate at 1.65 per cent per annum. The balance on this loan as at 31 December 2021

was €1.6 million. Repayments commenced in H1 2018 and will continue for one year;

– €8.9 million drawn in December 2017 carries fixed interest rate at 1.95 per cent per annum. The balance on this loan as at 31 December 2021

was €5.3 million. Repayments commenced in H1 2018 and will continue for six years;

– €8.5 million drawn in July 2018, carries fixed interest rate at 0.95 per cent per annum. The balance on this loan as at 31 December 2021 was

€2.3 million. Repayments commenced in H2 2018 and will continue for two years; and

– €13.1 million was taken out in 2018, carries fixed interest rate at 0.75 per cent per annum. The balance on this loan as at 31 December 2021

was €8.2 million. Repayments commenced in H2 2018 and will continue for six years.

• A loan balance of £0.6 million via Computacenter China.

For movement in bank loans refer to note 31 analysis of changes in net funds:

Credit facility

• The Pivot subsidiary has a revolving credit facility via JPMorgan Chase Bank, N.A. (JPMC) of $100.0 million senior secured asset based, which was

decreased from $225.0 million pursuant to the amendment in August 2021. This JPMC Credit Facility can be used for revolving loans, letters of

credit, and swing line loans. Advances under the JPMC Credit Facility accrue interest at rates that are equal to, based on certain conditions and

at the Company’s election either, (a) JPMC’s ‘prime rate’ as announced from time to time plus 0.00 per cent to 0.25 per cent, or (b) LIBOR for an

interest period of one month plus 1.25 per cent to 1.50 per cent. When JPMC stops making LIBOR-based loans available, the credit facility

provides for a transition from an interest rate based on LIBOR to an interest rate based on Term SOFR.

• Upon the agreement with the existing lenders, the Pivot subsidiary can increase the commitments under the credit facility by an additional

$75.0 million. The lenders under the JPMC Credit Facility are not under any obligation to provide any such additional commitments, and any

increase in commitments is subject to several conditions precedent and limitations. The JPMC Credit Facility is scheduled to expire on 14 May 2024.

• Under the terms of the JPMC Credit Facility, the covenants require that Pivot maintains a fixed charge coverage ratio of at least 1.0 to 1.0 on a

trailing 12-month basis, if availability falls below a certain level. Pivot is in compliance with all applicable covenants not subject to this financial

covenant as at 31 December 2021 because availability exceeds the required level, but Pivot’s fixed charge coverage ratio does exceed the

required minimum as at 31 December 2021.

• Amounts owing under the JPMC Credit Facility were $9.4 million and $79.8 million as at 31 December 2021 and 31 December 2020, respectively;

and average undrawn availability was $78.4 million and $48.3 million for the years ended 31 December 2021 and 31 December 2020 respectively.

Other loans

• Prior to acquisition, Pivot entered into a five-year contract with a customer to provide an ‘infrastructure-as-a-service’ arrangement starting

in October 2020. At the same time, Pivot entered into a separate payment agreement for $17.3 million to fund the majority of the components

required by the customer. This payment agreement is with the vendor supplying the hardware components of the arrangement, with

repayment terms aligned with those in the contract with the customer. The payment agreement with the vendor is an unsecured payable

incurring nil interest charges.

23 b) Lease liabilities

2021

£m

2020

£m

At 1 January 137.5 116.8

Additions during the year 70.2 49.4

Relating to acquisition of a subsidiary 1.4 12.8

Gross payment of lease liabilities (55.4) (47.7)

Interest relating to lease liabilities 5.2 4.5

Early terminations during the year (5.3) (1.3)

Exchange adjustment (7.5) 3.0

At 31 December 146.1 137.5

Current 43.0 41.7

Non-current 103.1 95.8

146.1 137.5

Facilities

At 31 December 2021, the Group had available £13.3 million of uncommitted overdraft facilities (2020: £13.5 million) and a £60.0 million committed

facility (2020: £60.0 million).

Notes to the Consolidated Financial Statements continued

For the year ended 31 December 2021

176

24 Derivative financial instruments

2021

£m

2020

£m

Financial instruments at fair value through profit and loss

Foreign exchange forward contracts 1.6 (3.6)

Interest rate swaps – (0.3)

1.6 (3.9)

Financial instruments at fair value through other comprehensive income

Cash flow hedges

Foreign exchange forward contracts (0.5) 0.4

1.1 (3.5)

Current assets 3.6 1.6

Current liabilities (2.5) (5.1)

1.1 (3.5)

Cash flow hedges

Financial assets and liabilities at fair value through other comprehensive income

Forward Contracts

These amounts reflect the change in the fair value of foreign exchange forward contracts designated as cash flow hedges which are used to

hedge intra-Group services or customer/supplier contracts where the underlying cost is denominated in a foreign currency. These are based on

highly probable forecast transactions in South African rand, Hungarian forint, euro, US dollar and Japanese yen.

Financial assets and liabilities at fair value through profit or loss

Forward Contracts

The Group also enters into other foreign exchange forward contracts with the intention to reduce the foreign exchange risk of expected sales and

purchases. When these other contracts are not designated in hedge relationships they are measured at fair value through profit and loss within

administrative expenses.

The foreign exchange forward contract balances vary with the level of expected foreign currency costs and changes in the foreign exchange

forward rates.

Interest rate swaps

In June 2020, the Group’s subsidiary Pivot Technology Solutions Inc. entered into an interest rate swap contract, with a notional amount of

$50.0million, to lock in the LIBOR between 0.3 per cent and 0.7 per cent (range of interest rates: 1.6 per cent – 2.2percent), covering the full term

of the JPMC Credit Facility, scheduled to expire on 14 May 2024. As these interest rate swaps are not designated in hedge relationships they are

measured at fair value through profit and loss within administrative expenses.

The interest rate swap was terminated early on 16 September 2021 due to the Group’s subsidiary Pivot Technology Solutions Inc. significantly

reducing the amount drawn on the JPMC Credit Facility (note 23). As at 31 December 2020, the interest rate swap was valued at a liability of

£0.3 million.

Effectiveness of hedging

The terms of the foreign currency forward contracts have been negotiated for the expected highly probable forecast transactions to which hedge

accounting has been applied. No significant element of hedge ineffectiveness required recognition in the Consolidated Income Statement.

The cash flow hedges of the forecasted costs were assessed to be highly effective and a net unrealised loss of £0.5 million (2020: gain of

£0.4 million) with a deferred tax asset of £0.1 million (2020: liability of £0.1 million) relating to the hedging instruments is included in the

Consolidated Statement of Comprehensive Income. The amounts retained in the Consolidated Statement of Comprehensive Income of £0.5 million

(2020: £0.4 million) are expected to mature and affect the Consolidated Income Statement between 2022 and 2026.

177

Financial Statements

Annual Report and Accounts 2021

24 Derivative financial instruments continued

Forward currency contracts

At 31 December 2021 the Group held foreign exchange contracts as hedges of an intra-Group loan and future expected payments to suppliers.

The exchange contracts are being used to reduce the exposure to foreign exchange risk. The terms of these contracts are detailed below:

31 December 2021

Buy currency Sell currency

Nominal value of

contracts (millions) Maturity dates Contract rates

UK Sterling Euros £1.5 Jan 22 – Oct 23 1.086 – 1.169

Sterling US dollars £19.1 Jan 22 – Mar 22 1.321 – 1.380

Sterling Hungarian forint £1.3 Jan 22 – Dec 22 389.996 – 456.392

Sterling Swiss francs £0.4 Dec 22 1.212

Sterling Swedish krona £0.3 Jan 22 12.223

Sterling SA rand £18.5 Jan 22 – Aug 25 20.536 – 27.262

Sterling Japanese yen £2.0 Feb 22 155.616

Sterling Mexican peso £0.0 Jan 22 27.742

Euros Sterling €11.0 Jan 22 – Mar 22 0.839 – 0.856

US dollars Sterling $81.2 Jan 22 – Dec 24 0.705 – 0.802

Hungarian forint Sterling HUF 2,536.0 Jan 22 – Dec 23 0.002

Germany Euros Sterling €0.4 Jan 22 0.850 – 0.856

Euros US dollars €110.3 Jan 22 – Jun 22 1.127 – 1.168

Euros Hungarian forint €1.5 Jan 22 – Dec 22 358.850 – 367.957

Euros Polish zloty €1.6 Jan 22 – Jun 22 4.595 – 4.688

Euros SA rand €1.5 Jan 22 – Oct 25 19.194

US dollars Euros $55.2 Jan 22 – Jun 22 0.856 – 0.889

Mexican peso Euros MXN 3.5 Jan 22 0.043

Hungarian forint Euros HUF 160.0 Jan 22 – Feb 22 0.003

Romanian leu Euros RON 3.8 Jan 22 – Mar 22 0.200 – 0.202

France Sterling Euros £0.4 Jan 22 – Feb 22 1.184 – 1.185

Euros Hungarian forint €6.4 Jan 22 – Dec 23 354.184 – 386.614

Euros Polish zloty €0.1 Jan 22 4.594

Euros SA rand €2.5 Jan 22 – Jun 24 18.041 – 22.701

US dollars Euros $9.0 Jan 22 – Mar 22 0.883 – 0.884

Belgium Sterling Euros £0.3 Jan 22 1.195

Euros SA rand €0.2 Jan 22 – May 22 18.324 – 22.714

US dollars Euros $0.6 Mar 22 – Apr 22 0.883 – 0.887

US US dollars SA rand $5.7 Jan 22 – May 26 15.271 – 19.321

US dollars Japanese yen $30.7 May 22 – Jun 22 113.000 – 113.050

Notes to the Consolidated Financial Statements continued

For the year ended 31 December 2021

178

31 December 2020

Buy currency Sell currency

Nominal value of

contracts (millions) Maturity dates Contract rates

UK Sterling Euros £14.2 Jan 21 – Oct 23 1.095 – 1.117

Sterling Swiss francs £0.9 Jun 21 – Dec 21 1.199

Sterling Hungarian forint £1.6 Jan 21 – Jun 22 389.396 – 404.447

Sterling Norwegian krone £0.0 Jan 21 11.729

Sterling Polish zloty £0.1 Jan 21 5.075

Sterling Singapore dollars £0.2 Jan 21 1.805

Sterling Australian dollars £0.0 Jan 21 1.773

Sterling Japanese yen £0.3 Jan 21 140.790

Sterling SA rand £5.8 Jan 21 – Nov 24 19.464 – 27.262

Sterling US dollars £28.6 Jan 21 – Mar 21 1.291 – 1.361

US dollars Sterling $46.4 Jan 21 – Jul 23 0.732 – 1.422

Euros Sterling €19.7 Jan 21 – Mar 21 0.891 – 1.114

Hungarian forint Sterling HUF 415.0 Feb 21 – Dec 22 0.002 – 0.003

SA rand Sterling ZAR 209.6 Jan 21 – Aug 25 0.040 – 0.050

Japanese yen Sterling JPY 213.5 Feb 21 0.007

Swedish krona Sterling SEK 3.8 Feb 21 0.090

Germany Euros Sterling €0.8 Jan 21 0.901 – 0.914

Euros Hungarian forint €0.1 Jan 21 331.33

Euros Mexican peso €0.1 Jan 21 21.795

Euros Polish zloty €1.0 Jan 21 – Jun 21 4.289 – 4.575

Euros US dollars €68.9 Jan 21 – Apr 21 1.171 – 1.230

US dollars Euros $7.5 Jan 21 0.855 – 0.856

25 Leases as a Lessor

Operating lease receivables where the Group is lessor

The Group entered into commercial leases with customers on certain items of machinery and software. These leases have remaining terms

of between one and five years.

Future amounts receivable by the Group under the non-cancellable operating leases as at 31 December are as follows:

2021

£m

2020

£m

Within one year 3.5 0.4

After one year 9.0 0.2

179

Financial Statements

Annual Report and Accounts 2021

26 Provisions

Customer

contract

provisions

£m

Property

provisions

£m

Other

provisions

£m

Total

provisions

£m

At 1 January 2020 7.8 5.1 0.5 13.4

Amount unused reversed – (0.5) (0.2) (0.7)

Arising during the year 2.9 0.1 – 3.0

Utilisation (5.2) 0.2 (0.4) (5.4)

Relating to acquisition of a subsidiary 3.6 – 2.0 5.6

Exchange adjustment 0.5 – 0.2 0.7

At 31 December 2020 9.6 4.9 2.1 16.6

Amount unused reversed (3.7) – (0.5) (4.2)

Arising during the year 3.5 0.8 0.3 4.6

Utilisation (2.9) (0.1) (0.1) (3.1)

Exchange adjustment (0.6) – (0.1) (0.7)

At 31 December 2021 5.9 5.6 1.7 13.2

Current 2021 2.0 1.1 0.4 3.5

Non-current 2021 3.9 4.5 1.3 9.7

5.9 5.6 1.7 13.2

Current 2020 3.0 1.0 0.1 4.1

Non-current 2020 6.6 3.9 2.0 12.5

9.6 4.9 2.1 16.6

Customer contract provision

These provisions result from customer contracts where total cost exceeds total revenue. Refer to note 2.12.1 for further details.

Property provisions

Assumptions used to calculate the property provisions are based on 100 per cent of the market value of any contractual dilapidation expenses

on empty properties and the Directors’ best estimates of the likely time before the relevant leases can be reassigned or sublet, which ranges

between one and nine years. The provisions in relation to the UK and European operations are discounted at 3 per cent. These costs mainly include

dilapidation expenses which have not been included as part of the lease liability under IFRS 16.

Other provisions

Included within other provisions are legal claims and other costs associated with the completion of the acquisition of Computacenter NS.

Notes to the Consolidated Financial Statements continued

For the year ended 31 December 2021

180

27 Financial instruments

An explanation of the Group’s financial instrument risk management objectives, policies and strategies is set out in the Group Finance Director’s

review on pages 76 and 78.

Credit risk

The Group principally manages credit risk through management of customer credit limits. The credit limits are set for each customer based on

the creditworthiness of the customer and the anticipated levels of business activity. These limits are initially determined when the customer

account is first set up and are regularly monitored thereafter.

In determining the recoverability of the trade receivables, the Group considers any change in the credit quality of the trade receivables from the

date the credit was initially granted up to the reporting date and considers forward-looking information to determine the appropriate expected

credit loss for the whole remaining life of the trade receivable. The maximum exposure on trade receivables, as at the reporting date, is their

carrying value.

With respect to credit risk arising from the other financial assets of the Group, which comprise cash and cash equivalents, current asset

investment and forward currency contracts, the Group’s exposure to credit risk arises from default of the counterparty, with a maximum

exposure equal to the carrying amount of cash and cash equivalents. The Group manages its counterparty credit risk by placing cash on deposit

with a reputable banking institution, with no more than £85.0 million deposited at any one time.

Aside from the counterparty risk above, there are no significant concentrations of credit risk within the Group.

Interest rate risk

The Group finances its operations through a mixture of retained profits, bank borrowings, cash and short-term deposits and finance leases and

loans for certain customer contracts. The Group’s bank borrowings, existing committed and uncommitted facilities and deposits are at floating

rates. No interest rate derivative contracts have been entered into. If long-term borrowings were to be utilised in the future, the Group’s policy

would be to maintain these borrowings at fixed rates to limit the Group’s exposure to interest rate fluctuations.

Interest rate sensitivity

The following table demonstrates the sensitivity to a reasonably possible change in interest rates, with all other variables held constant, of the

Group’s profit before tax (through the impact on floating rate borrowings). There is no impact on the Group’s equity.

Change in

basis points

Effect on profit

before tax

£m

2021

Sterling +25 0.4

Euro +25 0.1

US dollars +25 0.2

2020

Sterling +25 0.4

Euro +25 (0.1)

US dollars +25 0.2

The impact of a reasonable possible decrease to the same range shown in the table would result in an opposite impact on the profit before tax of

the same magnitude.

Fair values

The carrying value of the Group’s short-term receivables and payables is a reasonable approximation of their fair values. The fair value of all other

financial instruments carried within the Consolidated Financial Statements is not materially different from their carrying amount.

181

Financial Statements

Annual Report and Accounts 2021

27 Financial instruments continued

Exchange rate sensitivity

The Group is exposed to transactional foreign currency risk to the extent that there is a mismatch between the currencies in which sales,

purchases and receivables are denominated and the respective functional currencies of Group companies. The functional currencies of main

overseas subsidiaries are primarily the euro (€), US dollar (USD) and Swiss franc (CHF).

The Group’s risk management policy is to hedge all of its expected foreign currency exposure in respect of sales and purchases as soon as these

are committed. The Group uses forward exchange contracts to manage its currency risk. The main currencies managed by forward foreign

exchange contracts are South African rand (ZAR), Hungarian forint (HUF), euro (€), US dollar ($), Japanese yen (JPY), Polish zloty (PLN), Swiss franc

(CHF), Swedish krona (SEK) and Mexican peso (MXN).

However, hedge accounting is mainly applied to the expected trading cash flows denominated in South African rand (ZAR), Hungarian forint (HUF),

euro (€), US dollar ($) and Japanese yen (JPY) where the exposure extends beyond one year and there is a strong expectation that the expected

future foreign currency cash flow will occur. The Group uses forward foreign exchange contracts, designated as cash flow hedges, to hedge these

cash flows. When a commitment is entered into, forward foreign exchange contracts are normally used to increase the hedge to 100 per cent of

the expected exposure, although between 80 per cent and 110percent of the expected exposure should be hedged to meet the risk management

policy. The Group designates its forward foreign exchange contracts to hedge its cashflow risk and applies a hedge ratio of 1:1. The Group’s policy

is for the critical terms of the forward exchange contracts to align with the hedged item.

The Group determines the existence of an economic relationship between the hedging instrument and hedged item based on the currency,

amount and timing of their respective cash flows. The Group assesses whether the derivative designated in each hedging relationship is expected

to be and has been effective in offsetting changes in cash flows of the hedged item using the hypothetical derivative method.

In these hedge relationships, the main sources of ineffectiveness are:

• the effect of the counterparties’ and the Group’s own credit risk on the fair value of the forward foreign exchange contracts, which is not

reflected in the change in the fair value of the hedged cash flows attributable to the change in exchange rates;

• actual cash flows in foreign currencies varying from forecast cash flows; and

• changes in the timing of the hedged transactions.

Other than differences arising from the translation of results of operations outside of the Group’s functional currency, reasonably foreseeable

movements in the exchange rates of +10 per cent or -10 per cent would not have a material impact on the Group’s profit before tax or equity.

The summary quantitative data about the Group’s exposure to currency risk as reported to the Management of the Group is as follows:

31 December 2021

millions

31 December 2020

millions

$ € $ €

Trade and other receivables 543.4 659.0 409.3 569.8

Trade and other payables (570.9) (682.2) (422.4) (551.0)

Forecast future cash flow (net) (173.9) (228.2) 58.5 (15.2)

(201.4) (251.4) 45.4 3.6

Forward exchange contracts 201.4 251.4 (45.4) (3.6)

Net exposure – – – –

Notes to the Consolidated Financial Statements continued

For the year ended 31 December 2021

182

Liquidity risk

The table below summarises the maturity profile of the Group’s financial liabilities as at 31 December based on contractual discounted payments:

On demand

£m

<3 months

£m

3–12 months

£m

1–2 years

£m

2–5 years

£m

>5 years

£m

Total

£m

Year ended 31 December 2021

Bank loans and credit facility

7.0 2.5 5.6 5.0 10.3 1.4 31.8

Lease liabilities – 10.7 32.3 32.1 49.1 21.9 146.1

Derivative financial instruments – 0.6 0.9 0.6 0.4 – 2.5

Trade and other payables – 1,410.4 – – – – 1,410.4

7.0 1,424.2 38.8 37.7 59.8 23.3 1,590.8

On demand

£m

<3 months

£m

3–12 months

£m

1–2 years

£m

2–5 years

£m

>5 years

£m

Total

£m

Year ended 31 December 2020

Bank loans and credit facility

58.4 1.6 45.5 5.2 6.9 3.6 121.2

Lease liabilities – 10.4 31.3 29.4 42.4 24.0 137.5

Derivative financial instruments – 4.2 0.3 0.3 0.3 – 5.1

Trade and other payables – 1,116.7 – – – – 1,116.7

58.4 1,132.9 77.1 34.9 49.6 27.6 1,380.5

The table below summarises the maturity profile of the Group’s financial liabilities as at 31 December based on contractual undiscounted payments:

On demand

£m

<3 months

£m

3–12 months

£m

1–2 years

£m

2–5 years

£m

>5 years

£m

Total

£m

Year ended 31 December 2021

Bank loans and credit facility

7.0 2.5 5.8 5.2 10.8 1.4 32.7

Lease liabilities – 13.5 33.7 35.2 53.9 23.9 160.2

Derivative financial instruments – 0.6 0.9 0.6 0.4 – 2.5

Trade and other payables – 1,410.4 – – – – 1,410.4

7.0 1,427.0 40.4 41.0 65.1 25.3 1,605.8

On demand

£m

<3 months

£m

3–12 months

£m

1–2 years

£m

2–5 years

£m

>5 years

£m

Total

£m

Year ended 31 December 2020

Bank loans and credit facility

58.4 1.6 45.8 5.3 7.2 3.7 122.0

Lease liabilities – 12.5 33.3 32.4 46.6 27.7 152.5

Derivative financial instruments – 4.2 0.3 0.3 0.3 – 5.1

Trade and other payables – 1,116.7 – – – – 1,116.7

58.4 1,135.0 79.4 38.0 54.1 31.4 1,396.3

Fair value measurements recognised in the Consolidated Balance Sheet

Financial instruments which are recognised at fair value subsequent to initial recognition are grouped into Levels 1 to 3 based on the degree

to which the fair value is observable. The three levels are defined as follows:

• Level 1 fair value measurements are those derived from quoted prices (unadjusted) in active markets for identical assets or liabilities;

• Level 2 fair value measurements are those derived from inputs other than quoted prices included within Level 1 that are observable for the

asset or liability, either directly (i.e. as prices) or indirectly (i.e. derived from prices); and

• Level 3 fair value measurements are those derived from valuation techniques that include inputs for the asset or liability that are not based

on observable market data (unobservable inputs).

Derivative financial instruments

At 31 December 2021 the Group had forward currency contracts, which were measured at Level 2 fair value subsequent to initial recognition,

to the value of a net asset of £1.1 million (2020: net liability of £3.2 million).

At 31 December 2020 the Group had an interest rate swap, which was measured at Level 2 fair value subsequent to initial recognition, to the value

of a net liability of £0.3 million. The interest rate swap was terminated early on 16 September 2021 (note 24).

The realised gains from forward currency contracts in the year to 31 December 2021 of £0.4 million (2020: £2.4 million) with a deferred tax liability

of £0.1 million (2020: £0.4 million), are offset by broadly equivalent realised losses on the related underlying transactions.

183

Financial Statements

Annual Report and Accounts 2021

28 Capital management

Computacenter’s approach to capital management is to ensure that the Group has a strong capital base to support the development of the

business and to maintain a strong credit rating, whilst aiming to maximise shareholder value. Consistent with the Group’s aim to maximise return

to shareholders, the Company’s dividend policy is to maintain a dividend cover of between 2 to 2.5 times. In 2021, the cover was 2.5 times on an

adjusted

profit basis (2020: 2.5 times).

Capital, defined as net funds

, that the Group monitors is disclosed in note 31.

Each operating country manages its working capital in line with Group policies. The key components of working capital, i.e. trade receivables,

inventory and trade payables, are managed in accordance with an agreed number of days targeted in the budget process, in order to ensure

efficient capital usage. An important element of the process of managing capital efficiently is to ensure that each operating country rewards

behaviour at an account manager and account director level, to minimise working capital at a transactional level. This is achieved by increasing

commission payments for early payment by customers and reduced commission payments for late payment by customers, which encourages

appropriate behaviour. Management intends to implement Group policies into acquired businesses over time with the introduction of systems,

reward mechanisms and other operational practices that support these policies.

The Group regularly reviews the adequacy of its facilities against any foreseeable peak borrowing requirement. See note 21 for details on

uncommitted overdraft facilities available to the Group.

In certain circumstances, the Group deposits its funds in short-term investments that do not fulfil the criteria to be classified as cash and cash

equivalents. The Group considers these deposits when managing the net funds

of the business, and accordingly includes these deposits within

adjusted net funds

Capital is allocated across the Group, in order to minimise its exposure to exchange rates. Each country finances its own working capital

requirements, typically resulting in borrowings in France with cash on deposit in the UK and Germany. An internal cash pooling arrangement has

been implemented which utilises internal Group financing arrangements (excluding acquisitions).

Within the Group’s European region, the capital base is primarily utilised to finance its fixed assets and working capital requirements. It seeks to

optimise the use of working capital and improve its cash flow. As a consequence, the UK has sourced an increasing proportion of its Technology

Sourcing business via distributors in order to reduce the working capital requirements of the business.

The Group is subject to certain key financial covenants under its syndicated facility with Barclays and HSBC. These covenants, as defined in the

agreement, are monitored regularly to ensure compliance. As at 31 December 2021, the Group was in compliance with all covenants.

The Group’s Pivot subsidiary is also subject to certain key financial covenants under its JPMC Credit facility. These covenants, which include fixed

charge ratios as defined in the agreement, are monitored regularly to ensure compliance. As at 31 December 2021, the Pivot subsidiary was in

compliance with all covenants. The Company is not subject to any externally imposed capital requirements.

29 Issued capital and reserves

Issued share capital – ordinary shares

Issued and fully paid

pence

ordinary

No. ’000

Total

£m

At 1 January 2021 and 31 December 2021 122,688 9.3

During the year, the issued share capital remained unchanged.

The holders of ordinary shares are entitled to receive dividends as declared from time to time and are entitled to one vote per share at the general

meetings of the Company. On a winding up of the Company, holders of ordinary shares may be entitled to the residual assets of the Company.

The Company has a number of share option schemes under which options to subscribe for the Company’s shares have been granted to Executive

Directors and certain senior Management (note 30).

Share premium

The share premium account is used to record the aggregate amount or value of premiums paid when the Company’s shares are issued/redeemed

at a premium.

Capital redemption reserve

The capital redemption reserve is used to maintain the Company’s capital following the purchase and cancellation of its own shares. During the

year, the Company repurchased nil of its own shares for cancellation (2020: nil).

Notes to the Consolidated Financial Statements continued

For the year ended 31 December 2021

184

Own shares held

Own shares held comprise the following:

i) Computacenter Employee Share Ownership Plan (ESOP)

Shares in the Parent undertaking comprise 920,218 ordinary shares of 7

⁄

pence each in Computacenter plc (2020: 988,505) purchased by the

Computacenter Employee Share Ownership Plan (the Plan). The principal purpose of the Plan is to be funded with shares that will satisfy discretionary

executive share plans. The number of shares held represents 0.75 per cent of the Company’s issued share capital (2020: 0.81 per cent).

Since 31 December 2002, the definition of beneficiaries under the ESOP Trust has been expanded to include employees who have been awarded

options to acquire ordinary shares of 7

⁄

pence each in Computacenter plc under other employee share plans of the Group, namely the

Computacenter Service Group plc Approved Executive Share Option Plan, the Computacenter plc Employee Share Option Scheme 1998, the

Computacenter Service Group plc Unapproved Executive Share Option Scheme, the Computacenter Performance Related Share Option Scheme

1998, the Computacenter plc Sharesave Plus Scheme and any future similar share ownership schemes.

All costs incurred by the Plan are settled directly by Computacenter (UK) Limited and charged in the accounts as incurred.

The Plan Trustees have waived the dividends receivable in respect of 920,218 ordinary shares of 7

⁄

pence each (2020: 988,505) that it owns which

are all unallocated shares.

ii) Treasury shares

The Company holds, in treasury, the ordinary shares, purchased by way of tender offer, on 14 February 2018. Following the purchase, the Company’s

issued share capital consisted of 122,687,970 ordinary shares of 7

⁄

pence each (2020: 122,687,970), each carrying one voting right, of which the

Company held 8,546,861 ordinary shares in treasury (2020: 8,546,861).

As at 31 December 2021, the total number of voting rights in the Company which may be used by shareholders as the denominator for the

calculations by which they can determine if they are required to notify their interest in, or a change to their interest in, the Company under the

Disclosure and Transparency Rules is 114,141,109 (2020: 114,141,109). The percentage of voting rights attributable to those shares it holds in

treasury following the share buy-back in 2018 is 6.97 per cent (2020: 6.97 per cent).

Translation and hedging reserve

The foreign currency translation reserve is used to record exchange differences arising from the translation of the Financial Statements of foreign

subsidiaries. The hedging reserve represents the cumulative amount of gains and losses on hedging instruments deemed effective in cash flow

hedges. Included within Translation and hedging reserves is a hedging reserve debit balance of £0.2 million (2020: £0.6 million credit balance).

Non-controlling interests

The non-controlling amounts are as follows:

2021

£m

2020

£m

Applied Computer Solutions (ACS) 1.7 0.6

ProSys Information Systems, Inc (ProSys) 2.8 2.5

R.D. Trading Limited (RDC) (0.2) –

4.3 3.1

185

Financial Statements

Annual Report and Accounts 2021

30 Share-based payments

Computacenter Performance Share Plan (PSP)

Under the Computacenter PSP, shares granted will be subject to certain performance conditions as described in the Annual Report on

Remuneration. As at 31 December 2021 the number of shares outstanding was as follows:

Date of grant Maturity date

Share price at

date of grant

2021

Number

outstanding

2020

Number

outstanding

23/03/2012 23/03/2015 433.0p 1,685 1,685

20/03/2014 20/03/2017 682.5p 18,513 21,150

26/03/2015 26/03/2018 720.0p 33,267 46,170

22/03/2016 22/03/2019 845.0p 64,761 69,884

22/03/2017 22/03/2020 736.5p 182,625 196,189

21/03/2018 21/03/2021 1182.67p 83,642 254,836

21/03/2018 21/03/2021 1182.67p 97,364 139,092

18/05/2018 21/03/2021 1314.00p – 18,256

01/10/2018 21/03/2021 1314.00p – 14,985

21/03/2019 21/03/2021 1192.00p – 18,131

21/03/2019 21/03/2022 1192.00p 484,082 488,166

23/03/2020 21/03/2021 993.00p – 24,303

23/03/2020 21/03/2022 993.00p 24,303 24,303

23/03/2020 21/03/2023 993.00p 429,244 441,502

23/03/2020 21/03/2025 993.00p 173,892 173,892

11/05/2020 21/03/2023 1472.00p 2,853 2,853

02/11/2020 21/03/2023 2265.00p 14,504 14,504

22/03/2021 21/03/2024 2175.00p 353,966 –

21/03/2021 21/03/2022 2175.00p 11,684 –

21/03/2021 21/03/2023 2175.00p 11,685 –

10/06/2021 21/03/2024 2671.00p 7,384 –

1,995,454 1,949,901

The following table illustrates the number (No.) of share options for the PSP Scheme:

2021

No.

2020

No.

PSP Scheme

Outstanding at the beginning of the year 1,949,901 1,854,135

Granted during the year 384,719 696,036

Forfeited during the year (70,043) (83,033)

Exercised during the year

***

(269,123) (517,237)

Outstanding at the end of the year 1,995,454 1,949,901

Exercisable at the end of the year 481,857 335,078

*** The weighted average share price at the date of exercise for the options exercised is £20.46 (2020: £13.89).

The weighted average remaining contractual life for the options outstanding as at 31 December 2021 is 1.0 years (2020: 1.4 years).

Notes to the Consolidated Financial Statements continued

For the year ended 31 December 2021

186

Computacenter Sharesave Scheme (SAYE)

The Group operates a Sharesave Scheme which is available to all employees and full time Executive Directors of the Group and its subsidiaries

who have worked for a qualifying period. All options granted under this scheme are satisfied at exercise by way of a transfer of shares from the

Computacenter Qualifying Employee Share Trust. During the year, 672,082 options were granted (2020: 762,623) with a fair value of £4,461,737

(2020: £5,108,756).

Under the scheme the following options have been granted and are outstanding at the year-end:

Date of grant Exercisable between

price

2021

Number

outstanding

2020

Number

outstanding

October 2015 01/12/2020 – 31/05/2021 600.00p – 117,202

October 2016 01/12/2021 – 31/05/2022 577.00p 110,580 477,236

October 2017 01/12/2020 – 31/05/2021 888.00p – 68,174

October 2017 01/12/2022 – 31/05/2023 789.00p 583,494 608,309

October 2018 01/12/2021 – 31/05/2022 1,186.00p 67,830 245,416

October 2018 01/12/2023 – 31/05/2024 1,054.00p 466,853 489,356

October 2019 01/12/2022 – 31/05/2023 1,138.00p 274,150 285,361

October 2019 01/12/2024 – 31/05/2025 1,011.00p 585,518 613,215

October 2019 23/10/2019 – 23/10/2021 1,138.00p 12,856 64,062

October 2020 01/12/2023 – 31/05/2024 2,092.00p 204,399 219,558

October 2020 01/12/2025 – 31/05/2026 1,860.00p 507,477 523,949

October 2020 26/10/2020 – 26/10/2022 2,092.00p 13,719 14,370

October 2021 01/12/2024 – 31/05/2025 2,571.00p 170,353 –

October 2021 01/12/2026 – 31/05/2027 2,286.00p 463,513 –

October 2021 25/10/2021 – 25/10/2023 2,468.00p 36,057 –

3,496,799 3,726,208

The following table illustrates the number (No.) and weighted average exercise price (WAEP) of share options for the Sharesave Scheme:

2021

No.

2021

WAEP

2020

No.

2020

WAEP

Sharesave Scheme

Outstanding at the beginning of the year 3,726,208 £11.20 3,964,537 £8.65

Granted during the year 672,082 £23.68 762,623 £19.30

Forfeited during the year (114,095) £13.16 (165,646) £9.87

Exercised during the year

***

(787,396) £7.80 (835,306) £ 6.76

Outstanding at the end of the year 3,496,799 £14.30 3,726,208 £11.20

Exercisable at the end of the year 190,682 £8.55 200,917 £7.20

Note

*** The weighted average share price at the date of exercise for the options exercised is £27.21 (2020: £21.11).

The weighted average remaining contractual life for the options outstanding as at 31 December 2021 is 3.0 years (2020: 3.0 years).

187

Financial Statements

Annual Report and Accounts 2021

Notes to the Consolidated Financial Statements continued

For the year ended 31 December 2021

30 Share-based payments continued

The fair value of the PSP, DBP and SAYE plans are estimated as at the date of grant using the Black-Scholes valuation model. The following tables

give the assumptions made during the year ended 31 December 2021 and 31 December 2020:

2021

Nature of the

arrangement

PSP

scheme

PSP

scheme

PSP

scheme

PSP

scheme

PSP

scheme

DBP

scheme

DBP

scheme

SAYE

scheme

SAYE

scheme

SAYE

scheme

Date of grant 22/03/21 22/03/21 22/03/21 10/06/21 10/06/21 21/03/21 21/03/21 25/10/21 25/10/21 25/10/21

Number of

instruments

granted 142,078 198,076 13,812 1,425 5,959 11,684 11,685 36,057 171,506 464,519

Exercise price nil nil nil nil nil nil nil £24.68 £25.71 £22.86

Share price at

date of grant £21.75 £21.75 £21.75 £26.71 £26.71 £21.75 £21.75 £27.40 £27.40 £27.40

Contractual life

(years) 3 3 3 3 3 1 2 2 3 5

Vesting

conditions

See note 1

below

See page 120

of the Annual

Report on

Remuneration

Three-year

service period

Three-year

service period

See note 1

below

See page 120

of the Annual

Report on

Remuneration

See page 120

of the Annual

Report on

Remuneration

Two-year

service period

and savings

requirement

Three-year

service period

and savings

requirement

Five-year

service period

and savings

requirement

Expected

volatility n/a n/a n/a n/a n/a n/a n/a 40.30% 39.00% 36.10%

Expected option

life at grant date

(years) 3 3 3 3 3 1 2 2 3 5

Risk-free

interest rate n/a n/a n/a n/a n/a n/a n/a 3.89% 3.89% 3.89%

Dividend yield 0.60% 0.60% 0.60% 0.50% 0.50% 0.60% 0.60% 1.21% 1.21% 1.21%

Fair value per

granted

instrument

determined at

grant date £21.34 £21.34 £21.34 26.30 £26.30 £21.61 £21.47 £5.87 £5.93 £6.96

188

2020

Nature of the

arrangement

PSP

scheme

PSP

scheme

PSP

scheme

PSP

scheme

PSP

scheme

DBP

scheme

DBP

scheme

SAYE

scheme

SAYE

scheme

SAYE

scheme

Date of grant 23/03/20 23/03/20 23/03/20 02/11/20 11/05/20 23/03/20 23/03/20 01/12/20 01/12/20 01/12/20

Number of

instruments

granted 440,170 173,892 16,011 14,504 2,853 24,303 24,303 14,370 221,217 527,036

Exercise price nil nil nil nil nil nil nil £20.92 £20.92 £18.60

Share price at

date of grant £9.93 £9.93 £9.93 £22.65 £14.72 £9.93 £9.93 £23.58 £23.58 £23.58

Contractual life

(years) 3 5 3 3 3 1 2 2 3 5

Vesting

conditions

See note 1

below

See page 111

of the Annual

Report on

Remuneration

in the 2020

Annual Report

and Accounts

Three-year

service period

See note 1

below

See note 1

below

See page 111

of the Annual

Report on

Remuneration

in the 2020

Annual Report

and Accounts

See page 111

of the Annual

Report on

Remuneration

in the 2020

Annual Report

and Accounts

Two-year

service period

and savings

requirement

Three-year

service period

and savings

requirement

Five-year

service period

and savings

requirement

Expected

volatility n/a n/a n/a n/a n/a n/a n/a 44.73% 42.00% 36.30%

Expected option

life at grant date

(years) 3 5 3 3 3 1 2 2 3 5

Risk-free

interest rate n/a n/a n/a n/a n/a n/a n/a 3.08% 3.08% 3.08%

Dividend yield 2.30% 2.30% 2.30% 0.60% 1.70% 2.30% 2.30% 0.57% 0.57% 0.57%

Fair value per

granted

instrument

determined at

grant date £9.82 £9.82 £9.82 £22.25 £14.01 £10.28 £10.05 £5.87 £6.24 £6.93

Note

1. Issued under the terms of the Computacenter Performance Share Plan 2005, as amended at the AGMs held on 19 May 2015 and 18 May 2018. One-quarter of the shares will vest if the

compound annual EPS growth over the performance period equals 5 per cent per annum. One-half of the shares will vest if the compound annual EPS growth over the performance

period equals 7.5 per cent and the shares will vest in full if the compound annual EPS growth over the performance period equals 10 per cent. If the compound annual EPS growth over the

performance period is between 5and 10 per cent, shares awarded will vest on a straight-line basis. The performance period usually covers a period of three years from 1 January of the

year the award is granted.

The expected life of the options is based on historical data and is not necessarily indicative of exercise patterns that may occur.

The expected volatility reflects the assumption that the recent historical volatility is indicative of future trends, which may also not necessarily be

the actual outcome. No other features of the options granted were incorporated into the measurement of fair value.

189

Financial Statements

Annual Report and Accounts 2021

31 Analysis of changes in net funds

1 January

2021

£m

Cash flows

in year

£m

Non-cash

flow

£m

Exchange

differences

£m

31 December

2021

£m

Cash and short-term deposits 309.8 (17.1) – (7.5) 285.2

Bank overdrafts – (12.0) – – (12.0)

Cash and cash equivalents 309.8 (29.1) – (7.5) 273.2

Bank loans and credit facility (121.2) 89.0 – 0.4 (31.8)

Adjusted net funds

(excluding lease liabilities) 188.6 59.9 – (7.1) 241.4

Lease liabilities (137.5) 55.4 (71.5) 7.5 (146.1)

Net funds 51.1 115.3 (71.5) 0.4 95.3

The financing cash flows included in the table above are detailed as follows:

Bank loans Credit facility Bank overdraft Others

Lease

liabilities

Liabilities from

financing

activities

Balance at 1 January 2021 (62.8) (58.4) – – (137.5) (258.7)

Changes from financing cash flows

Interest paid 0.9 1.2 – 0.2 – 2.3

Interest paid on lease liabilities – – – – 5.2 5.2

Repayment of loans 48.6 – – – – 48.6

Repayment of credit facility – 51.1 – – – 51.1

Payment of capital element of lease liabilities – – – – 50.2 50.2

Bank overdraft – – (12.0) – – (12.0)

New borrowings – bank loan (10.7) – – – – (10.7)

Total changes from financing cash flows 38.8 52.3 (12.0) 0.2 55.4 134.7

The effect of changes in foreign exchange rates 0.1 0.3 – – 7.5 7.9

Other changes

New leases – – – – (70.2) (70.2)

New leases relating to acquisition of a subsidiary – – – – (1.4) (1.4)

Early termination of leases – – – – 5.3 5.3

Interest expense (0.9) (1.2) – (0.2) (5.2) (7.5)

Total other changes (0.9) (1.2) – (0.2) (71.5) (73.8)

Balance at 31 December 2021 (24.8) (7.0) (12.0) – (146.1) (189.9)

1 January

2020

£m

Cash flows

in year

£m

Non-cash

flow

£m

Exchange

differences

£m

31 December

2020

£m

Cash and short-term deposits 217.8 84.9 – 7.1 309.8

Bank loans and credit facility (80.8) (42.5) – 2.1 (121.2)

Adjusted net funds

(excluding lease liabilities) 137.0 42.4 – 9.2 188.6

Lease liabilities (116.8) 47.7 (65.3) (3.1) (137.5)

Net funds 20.2 90.1 (65.3) 6.1 51.1

Notes to the Consolidated Financial Statements continued

For the year ended 31 December 2021

190

The financing cash flows included in the table above are detailed as follows:

Bank

loans

Credit

facility Others

Lease

liabilities

Liabilities from

financing

activities

Balance at 1 January 2020 (80.8) – – (116.8) (197.6)

Changes from financing cash flows

Interest paid 1.7 – 0.2 – 1.9

Interest paid on lease liabilities – – – 4.5 4.5

Repayment of loans 19.4 – – – 19.4

Repayment of credit facility – 0.6 – – 0.6

Payment of capital element of lease liabilities – – – 43.2 43.2

New borrowings – credit facility relating to acquisition of a subsidiary – (62.2) – – (62.2)

New borrowings – bank loan (0.3) – – – (0.3)

Total changes from financing cash flows 20.8 (61.6) 0.2 47.7 7.1

The effect of changes in foreign exchange rates (1.1) 3.2 – (3.1) (1.0)

Other changes

New leases – – – (49.4) (49.4)

New leases relating to acquisition of a subsidiary – – – (12.8) (12.8)

Early termination of leases – – – 1.4 1.4

Interest expense (1.7) – (0.2) (4.5) (6.4)

Total other changes (1.7) – (0.2) (65.3) (67.2)

Balance at 31 December 2020 (62.8) (58.4) – (137.5) (258.7)

32 Capital commitments

As at 31 December 2021, the Group had a £1.2 million commitment for capital expenditure (2020: £0.8 million).

33 Pensions and other post-employment benefit plans

The Group operates a defined contribution pension scheme available to all UK employees and similar schemes are operating, as appropriate for

the jurisdiction, for North America and Germany. The amount recognised as an expense for this plan is detailed in note 9.

The Group has a provision against the retirement benefit obligations in France under the Indemnités de Fin de Carrière (IFC) as described in

note2.12.3 Economic outflows under the obligation only occur if eligible employees reach the statutory retirement age whilst still in employment

or made redundant. The Group made £0.3 million of payments during 2021 under this obligation (2020: £0.3 million).

In estimating the provision required, Management is required to make a number of assumptions. The key areas of estimation uncertainty are the

discount rate applied to future cash flows, the turnover rate of employed personnel and rate of salary increases over the length of their projected

employment. The level of unrealised actuarial gains or losses is sensitive to changes in the discount rate, which is affected by market conditions

and therefore subject to variation. Management makes use of an independent actuarial valuation in reaching its conclusions.

The net liability recognised in the Consolidated Balance Sheet as at 31 December 2021 in respect of the Group’s French retirement benefit

obligations under the IFC was £21.8 million (2020: £23.3 million). Key movements during the year include a charge to the Consolidated Income

Statement of £1.6 million (2020: £0.8 million) for the service cost and an actuarial gain taken through reserves of £1.2 million (2020: loss of

£4.3 million). The key driver of actuarial gain this year was the change in experience and financial assumptions, mainly due to a change in the

discount rate assumption used in the actuarial valuation.

191

Financial Statements

Annual Report and Accounts 2021

33 Pensions and other post-employment benefit plans continued

2021

£m

2020

£m

Total defined benefit liability 21.8 23.3

Movements in total defined benefit liability:

2021

£m

2020

£m

Balance at 1 January 23.3 8.3

Pension liability acquired – 9.9

Included in Consolidated Income Statement

Current service cost 1.5 0.7

Interest cost 0.1 0.1

1.6 0.8

Included in Consolidated Statement of Comprehensive Income

Remeasurements loss

Actuarial (gain)/loss arising from: (1.2) 4.1

– Changes in demographic assumptions 1.0 3.3

– Change in financial assumptions (1.6) 0.6

– Experience adjustment (0.6) 0.2

Effect of movements in exchange rates (1.6) 0.5

(2.8) 4.6

Other

Benefits paid (0.3) (0.3)

(0.3) (0.3)

Balance at 31 December 21.8 23.3

Actuarial assumptions

The following are the principal actuarial assumptions at 31 December (expressed as weighted averages):

2021

2020

Discount rate 1.0 0.5

Future salary growth 2.0 1.5

Turnover rates:

– Non-managers 5.7 5.7

– Supervisors 2.7 2.7

– Executives 2.7 2.7

At 31 December 2021, the discount rate used was 1.0 per cent (2020: 0.5 per cent) with reference to the iBoxx € Corporate AA 10y + index.

Sensitivity analysis

Reasonably possible changes at the reporting date to one of the relevant actuarial assumptions, holding other assumptions constant, would have

affected the defined benefit obligation by the amounts shown below.

2021

£m

2020

£m

Increase Decrease Increase Decrease

Discount rate (1 per cent movement) 2.5 (3.0) 2.8 (3.3)

Future salary growth (1 per cent movement) (3.0) 2.5 (3.3) 2.8

Turnover rates (1 per cent movement) 1.9 (2.3) 0.8 (1.0)

Although the analysis does not take account of the full distribution of cash flows expected under the plan, it does provide an approximation of the

sensitivity of the assumptions shown.

Notes to the Consolidated Financial Statements continued

For the year ended 31 December 2021

192

34 Related party transactions

During the year, the Group entered into transactions, in the ordinary course of business, with related parties. Transactions entered into are as

described below:

Biomni provides the Computacenter e-procurement system used by many of Computacenter’s major customers. An annual fee has been agreed

on a commercial basis for use of the software for each installation. Both PJ Ogden and PW Hulme are Directors of and have a material interest in

Biomni Limited.

The table below provides the total amount of transactions that have been entered into with related parties for the relevant financial year:

2021

£m

2020

£m

Biomni Limited

Sales to related parties – 0.1

Purchase from related parties 0.6 0.7

Terms and conditions of transactions with related parties

Outstanding balances at the year end are unsecured and settlement occurs in cash. There have been no guarantees provided or received for any

related party receivables. The Group has not recognised any provision for doubtful debts relating to amounts owed by related parties. This

assessment is undertaken each financial year through examining the financial position of the related party and the market in which the related

party operates.

Compensation of key management personnel (including Directors)

The Board of Directors is identified as the Group’s key management personnel. Please refer to the information given in the remuneration table in

the Annual Report on Remuneration on page 115 for details of compensation given. A summary of the compensation of key management

personnel is provided below:

2021

£m

2020

£m

Short-term employee benefits 2.8 2.2

Social security costs 0.4 0.4

Share-based payment transactions 3.9 2.2

Pension costs 0.1 0.1

Total compensation paid to key management personnel 7.2 4.9

The interests of the key management personnel in the Group’s share incentive schemes are disclosed in the Annual Report on Remuneration on

pages 118 to 121.

35 Contingent liabilities

The Company has given a guarantee in the normal course of business to suppliers of subsidiary undertakings for an amount not exceeding

£126.8 million (2020: £134.0 million).

During the ordinary course of business, the Group can be subject to complaints and threatened or actual legal proceedings brought primarily by

customers or vendors, but also on behalf of current or former employees, investors or other third parties, as well as legal and regulatory reviews,

challenges, investigations and enforcement actions, both in the UK and overseas.

Where material, such matters are periodically reassessed, with the assistance of external professional advisers where appropriate, to determine

the likelihood of the Group incurring a liability. In those instances where it is concluded that it is more likely than not that a payment will be made,

a provision is established to Management’s best estimate of the amount required at the relevant balance sheet date. In some cases it will not be

possible to form a view, for example because the facts are unclear or because further time is needed to properly assess the merits of the case,

and no provisions are held in relation to such matters.

In these circumstances, specific disclosure in relation to a contingent liability will be made where material. However, the Group does not currently

expect the final outcome of any such case to have a material adverse effect on its financial position, operations or cash flows either separately or

in aggregate.

193

Financial Statements

Annual Report and Accounts 2021

Note

2021

£m

2020

(Restated

)

£m

Non-current assets

Intangible assets 3 16.7 25.2

Investment property 4 11.9 13.0

Investments 5 443.0 397.1

471.6 435.3

Current assets

Debtors 6 0.1 71.3

Prepayments 0.3 0.2

0.4 71.5

Total assets 472.0 506.8

Current liabilities

Trade and other payables 7 73.8 –

Financial liabilities 8 – 41.5

Income tax payable 1.7 –

75.5 41.5

Total liabilities 75.5 41.5

Net assets 396.5 465.3

Capital and reserves

Issued share capital 12 9.3 9.3

Share premium 4.0 4.0

Capital redemption reserve 75.0 75.0

Merger reserve 55.9 55.9

Own shares held (115.5) (111.7)

Retained earnings 367.8 432.8

Shareholders’ equity 396.5 465.3

* See note 12 for adjustment for the year ended 31 December 2020.

The accompanying notes on pages 196 to 200 form an integral part of these financial statements.

Approved by the Board on 23 March 2022.

MJ Norris FA Conophy

Chief Executive Officer Group Finance Director

Company Balance Sheet

As at 31 December 2021

194

Company Statement of Changes in Equity

For the year ended 31 December 2021

Issued

capital

£m

premium

£m

Capital

redemption

reserve

£m

Merger

reserve

£m

Own shares

held

£m

Retained

earnings

£m

Shareholders’

equity

£m

At 1 January 2021 9.3 4.0 75.0 55.9 (111.7) 432.8 465.3

Profit for the year – – – – – 2.3 2.3

Total comprehensive income for the year – – – – – 2.3 2.3

Exercise of options – – – – 21.7 (15.5) 6.2

Share options granted to employees of

subsidiary companies – – – – – 10.6 10.6

Purchase of own shares – – – – (25.5) – (25.5)

Equity dividends – – – – – (62.4) (62.4)

At 31 December 2021 9.3 4.0 75.0 55.9 (115.5) 367.8 396.5

At 1 January 2020 9.3 4.0 75.0 55.9 (113.6) 278.8 309.4

Profit for the year – – – – – 121.9 121.9

Other comprehensive income (restated

) – – – – – 53.0 53.0

Total comprehensive income (restated

) – – – – – 174.9 174.9

Exercise of options – – – – 20.9 (15.2) 5.7

Share options granted to employees of

subsidiary companies – – – – – 8.2 8.2

Purchase of own shares – – – – (19.0) – (19.0)

Equity dividends – – – – – (13.9) (13.9)

At 31 December 2020 (restated

) 9.3 4.0 75.0 55.9 (111.7) 432.8 465.3

* See note 12 for adjustment for the year ended 31 December 2020.

The accompanying notes on pages 196 to 200 form an integral part of these financial statements.

195

Financial Statements

Annual Report and Accounts 2021

Notes to the Company Financial Statements

For the year ended 31 December 2021

1 Authorisation of Financial Statements

The Parent Company Financial Statements of Computacenter plc (the Company) for the year ended 31 December 2021 were authorised for issue

by the Board of Directors on 23 March 2022 and the Balance Sheet was signed on the Board’s behalf by MJ Norris and FA Conophy. Computacenter

plc is a public limited company incorporated and domiciled in England and Wales. The Company’s ordinary shares are traded on the London

StockExchange.

2 Summary of significant accounting policies

Basis of preparation and statement of compliance with FRS 101

These Financial Statements were prepared in accordance with Financial Reporting Standard 101 Reduced Disclosure Framework (FRS 101).

TheFinancial Statements are prepared under the historical cost convention.

No profit and loss account is presented by the Company as permitted by Section 408 of the Companies Act 2006. The results of Computacenter plc

are included in the Consolidated Financial Statements of Computacenter plc which are available from Computacenter plc, Hatfield Business Park,

Hatfield Avenue, Hatfield, AL10 9TW. The accounting policies which follow set out those policies which apply in preparing the Financial Statements

for the year ended 31 December 2021. The Financial Statements are prepared in pound sterling and all values are rounded to the nearest hundred

thousand except when otherwise indicated.

In preparing these financial statements, the Company applies the recognition, measurement and disclosure requirements of UK-adopted

international accounting standards (Adopted IFRSs), but makes amendments where necessary in order to comply with the Companies Act 2006

and has set out below where advantage of the FRS 101 disclosure exemptions has been taken.

(a) the requirements of paragraphs 45(b) and 46-52 of IFRS 2 Share-based Payment;

(b) the requirements of paragraphs 62, B64(d), B64(e), B64(g), B64(h), B64(j) to B64(m), B64(n)(ii), B64 (o)(ii), B64(p), B64(q)(ii), B66 and B67 of

IFRS3 Business Combinations;

(e) the requirements of paragraphs 91-99 of IFRS 13 Fair Value Measurement;

(f) the requirement in paragraph 38 of IAS 1 Presentation of Financial Statements to present comparative information in respect of:

(i) paragraph 79(a)(iv) of IAS 1;

(ii) paragraph 73(e) of IAS 16 Property, Plant and Equipment;

(iii) paragraph 118(e) of IAS 38 Intangible Assets;

(iv) paragraphs 76 and 79(d) of IAS 40 Investment Property; and

(v) paragraph 50 of IAS 41 Agriculture.

(g) the requirements of paragraphs 10(d), 10(f), 39(c) and 134-136 of IAS 1 Presentation of Financial Statements;

(h) the requirements of IAS 7 Statement of Cash Flows;

(i) the requirements of paragraphs 30 and 31 of IAS 8 Accounting Policies, Changes in Accounting Estimates and Errors;

(j) the requirements of paragraph 17 of IAS 24 Related Party Disclosures;

(k) the requirements in IAS 24 Related Party Disclosures to disclose related party transactions entered into between two or more members of

a group, provided that any subsidiary which is a party to the transaction is wholly owned by such a member; and

(l) the requirements of paragraphs 134(d)-134(f) and 135(c)-135(e) of IAS 36 Impairment of Assets.

The basis for all of the above exemptions is because equivalent disclosures are included in the Consolidated Financial Statements of the Group

in which the entity is consolidated.

Intellectual property

Licences purchased in respect of intellectual property are capitalised, classified as an intangible asset on the Balance Sheet and amortised on

a straight-line basis over the period of the licence, normally 20 years.

Depreciation of fixed assets

Freehold land is not depreciated. Depreciation is provided on all other tangible fixed assets at rates calculated to write off the cost, less estimated

residual value, of each asset evenly over its expected useful life, as follows:

Freehold buildings 25 years

Investment property

Investment property is defined as land and/or buildings held by the Company to earn rental income or for capital appreciation or both, rather than

for sale in the ordinary course of business or for use in supply of goods or services or for administrative purposes. The Company recognises any

part of an owned (or leased under a finance lease) property that is leased to third-parties as investment property, unless it represents an

insignificant portion of the property.

Investment property is measured initially at cost including transaction costs. Subsequent to initial recognition, the Company elected to measure

investment property at cost less accumulated depreciation and accumulated impairment losses, if any (i.e. applying the same accounting

policies (including useful lives) as for property, plant and equipment). The fair values, which reflect the market conditions at the balance sheet

date, are disclosed in note 4.

196

Investments

Fixed asset investments are shown at cost less provision for impairment.

Impairment of assets

The carrying values of assets are reviewed for impairment when events or changes in circumstances indicate that the carrying value may

not be recoverable.

Foreign currencies

Transactions in foreign currencies are recorded at the rate ruling at the date of the transaction. Monetary assets and liabilities denominated in

foreign currencies are retranslated at the rate of exchange ruling at the balance sheet date. All differences are taken to the profit and loss account.

Amounts owed by/to subsidiary undertakings

Intra-Group receivables are recognised initially at fair value, and subsequently at amortised cost using the effective interest rate method, less an

allowance for any uncollectable amounts. The Company assesses for doubtful debts (impairment) using the expected credit losses model as

required by IFRS 9. For intra-group receivables, the Company applies the simplified approach which requires expected lifetime losses to be

recognised from the initial recognition of the receivables.

Intra-Group payables are recognised initially at fair value, and subsequently at amortised cost using the effective interest rate method.

Share-based payment transactions

The accounting policy in relation to share-based payment transactions is disclosed in full in the Consolidated Financial Statements. In addition,

the financial effect of awards by the Company of options over its equity shares to employees of subsidiary undertakings is recognised by the

Company in its individual Financial Statements as an increase in its investment in subsidiaries, with a credit to equity equivalent to the IFRS 2 cost

in subsidiary undertakings.

On transition to IFRS, the Group did not apply the measurement rules of IFRS 2 to equity-settled awards granted before 7 November 2002 or

granted after that date and vested before 1 January 2005. However, later modifications of such equity instruments are measured under IFRS 2.

Taxation

Corporation tax payable is provided on taxable profits at the current tax rate. Where Group relief is surrendered from other subsidiaries in the

Group, the Company is required to pay to the surrendering company an amount equal to the loss surrendered multiplied by the current tax rate.

Deferred tax is recognised in respect of all timing differences that have originated but not reversed at the balance sheet date where transactions

or events that result in an obligation to pay more, or a right to pay less, tax in the future have occurred at the balance sheet date.

Deferred tax is measured on a non-discounted basis at the tax rates that are expected to apply in periods in which timing differences reverse,

based on tax rates and laws enacted or substantively enacted at the balance sheet date.

Own shares held

Shares in the Company, held by the Company, are classified in shareholders’ equity as ‘own shares held’ and are recognised at cost. Consideration

received for the sale of such shares is also recognised in equity, with any difference between the proceeds from sale and the original cost being

taken to revenue reserves. No gain or loss is recognised in the performance statements on the purchase, sale, issue or cancellation of equity shares.

Merger accounting and the merger reserve

Prior to 1 January 2013, certain significant business combinations were accounted for using the ‘pooling of interests method’ (or merger

accounting), which treats the merged groups as if they had been combined throughout the current and comparative accounting periods. Merger

accounting principles for these combinations gave rise to a merger reserve in the Balance Sheet, being the difference between the nominal value

of new shares issued by the Parent Company for the acquisition of the shares of the subsidiary and the subsidiary’s own share capital and share

premium account. These transactions have not been restated, as permitted by the IFRS 1 transitional arrangements.

The merger reserve is also used where more than 90 per cent of the shares in a subsidiary are acquired and the consideration includes the issue

of new shares by the Company, thereby attracting merger relief under the Companies Act 1985 and, from 1 October 2009, the Companies Act 2006.

The merger reserve of £55.9 million was created on acquisition of Computacenter (UK) Limited on 14 October 1995 by Computacenter plc.

Immediately following the acquisition, this merger reserve was reduced to nil in the Group’s Consolidated Financial Statements due to the write

off of goodwill arising on the consolidation of Computacenter (UK) Limited.

197

Financial Statements

Annual Report and Accounts 2021

3 Intangible assets

Intellectual

property

£m

Cost

At 1 January 2021 and 31 December 2021 169.7

Accumulated amortisation

At 1 January 2021 144.5

Charge in the year 8.5

At 31 December 2021 153.0

Net book value

At 31 December 2021 16.7

At 31 December 2020 25.2

4 Investment properties

Freehold land

and buildings

£m

Cost

At 1 January 2021 and 31 December 2021 42.4

Accumulated depreciation

At 1 January 2021 29.4

Charge in the year 1.1

At 31 December 2021 30.5

Net book value

At 31 December 2021 11.9

At 31 December 2020 13.0

Investment property represents a building owned by the Company that is leased to Computacenter (UK) Ltd, a fully owned subsidiary of the Company.

The fair value of investment property amounted to £38.7 million at 31 December 2021 (2020: £38.5 million). The fair values for disclosure purposes

have been determined using either the support of qualified independent external valuers or by internal valuers with the necessary recognised

and relevant professional qualification, applying a combination of the present value of future cash flows and observable market values of

comparable properties. Management’s most recent external valuation of this property took place in February 2016. As this property is leased

to a subsidiary and is carried at depreciated cost value, an updated external valuation was not sought at 31 December 2021.

Notes to the Company Financial Statements continued

For the year ended 31 December 2021

198

5 Investments

Investments in

subsidiary

undertakings

£m

Loans to

subsidiary

undertakings

£m

Total

£m

Cost

At 31 December 2020 (as reported) 466.1 2.8 468.9

Dividends received in-specie (note 12) 53.0 – 53.0

At 31 December 2020 (restated) 519.1 2.8 521.9

Additions 35.3 – 35.3

Impairment – – –

Share-based payments 10.6 – 10.6

At 31 December 2021 565.0 2.8 567.8

Amounts provided

At 31 December 2020 122.0 2.8 124.8

Provided during the year – – –

At 31 December 2021 122.0 2.8 124.8

Net book value

At 31 December 2021 443.0 – 443.0

At 31 December 2020 (restated) 397.1 – 397.1

During the year, the Company made an investment of $50 million into Computacenter (U.S.), Inc., a fully-owned US subsidiary, by way of

a capital contribution.

During the prior year, the Company received a return of capital of £7.4 million, from its subsidiary Computacenter Managed Services GmbH which

undertook a capital reduction.

The carrying values of investments are reviewed annually or when events or changes in circumstances indicate that the carrying value may not

be recoverable. The Company assesses if such indicators exist at the end of each reporting period by considering external and internal factors

including whether the carrying amount of an investment exceeds the investee’s net assets or if a dividend exceeds the total comprehensive

income of the investee.

Details of the principal investments at 31 December in which the Company holds more than 20 per cent of the nominal value of ordinary share

capital are given in note 18 to the Consolidated Financial Statements.

6 Debtors

2021

£m

2020

£m

Amount owed by subsidiary undertaking – 71.2

Other debtors 0.1 0.1

0.1 71.3

Amounts owned by subsidiaries are unsecured, have no fixed date of repayment and are repayable on demand. Expected credit losses are

considered to be immaterial.

7 Trade and other payables

2021

£m

2020

£m

Amount owed to subsidiary undertaking 73.8 –

The movement in amount owed by subsidiary undertaking (per note 6) and amount owed to subsidiary undertaking (per note 7) is mainly due to

equity dividends paid and repayment of loans.

199

Financial Statements

Annual Report and Accounts 2021

8 Financial liabilities

2021

£m

2020

£m

Current

Bank loan – 41.5

There are no material differences between the fair value of financial liabilities and their book value.

Bank loans

A loan of £100.0 million was drawn at 2.05 per cent interest rate to finance the acquisition of Computacenter United States Inc. The outstanding

balance as at 31December 2021 was nil (2020: £41.5 million). Repayment of this loan commenced in H1 2019 and was fully paid in 2021.

9 Contingent liabilities

The Company has given a guarantee in the normal course of business to suppliers of subsidiary undertakings for an amount not exceeding

£126.8million (2020: £134.0 million).

The Company has provided cross guarantees in respect of certain bank loans and overdrafts of its subsidiary undertakings. The amount

outstanding at 31 December 2021 is £nil (2020: £nil).

10 Auditor’s remuneration

All auditor’s remuneration is borne by Computacenter (UK) Ltd, a fully-owned UK subsidiary of the Company. The amount payable to the auditor in

respect of the audit of the Company is £0.1 million (2020: £0.1 million), all of which is payable to KPMG LLP. The Company is exempt from providing

details of non-audit fees as it prepares Consolidated Financial Statements in which the details are required to be disclosed on a consolidated

basis (see note 7 to the Consolidated Financial Statements).

11 Distributable reserves

Dividends are paid from the standalone Balance Sheet of Computacenter plc, and as at 31 December 2021, the distributable reserves are

approximately £199.3 million (2020: £268.1 million).

12 Adjustment for the year ended 31 December 2020

On 2 November 2020, Computacenter Group acquired 100 per cent of the voting shares of Pivot Technology Solutions, Inc. (Pivot). After the

acquisition, but before 31 December 2020, a restructuring exercise was undertaken on the Pivot entities which had a number of steps including a

dividend in-specie from Computacenter (UK) Limited to Computacenter plc to transfer the entire share capital of Pivot Technology Solutions, Ltd.

(PTSL) held by Computacenter (UK) Limited.

The amount of distribution was equal to the book value of the PTSL shares in the accounts of Computacenter (UK) Limited. This book value

amounting to £53.0 million ($72.4 million) represents the fair value attributable to acquired assets and liabilities of PTSL as part of the Group’s

acquisition of Pivot.

The above dividend in-specie was not reflected in the balances previously reported for the year ended 31 December 2020 and this has been

corrected by restating each of the affected financial statement line items for the year ended 31 December 2020. The following summarises the

impact on the Company’s financial statements.

(i) Company Balance Sheet as at 31 December 2020

As previously

reported

£m

Adjustment

£m

Restated

£m

Investments 344.1 53.0 397.1

Others 109.7 – 109.7

Total assets 453.8 53.0 506.8

Retained earnings 379.8 53.0 432.8

Others 32.5 – 32.5

Shareholders’ equity and net assets 412.3 53.0 465.3

(ii) Company Statement of Changes in Equity for the year ended 31 December 2020

The above adjustment has been reported as other comprehensive income of £53.0 million in the Company Statement of Changes in Equity for

the year ended 31 December 2020. There is no tax impact as the dividend in-specie was exempt from UK corporation tax, being received from

a company that Computacenter plc controls. The resulting reserve of £53.0 million created within retained earnings has been excluded from the

Company’s distributable reserves.

There is no impact on the Computacenter Group’s retained earnings for the year ended 31 December 2020 and no impact on the total assets,

net assets and shareholders’ equity position as at 31 December 2020.

Notes to the Company Financial Statements continued

For the year ended 31 December 2021

200

Disclaimer: forward-looking statements

This Annual Report and Accounts includes statements that are, or may be deemed to be, ‘forward-looking statements’. These forward-looking

statements can be identified by the use of forward-looking terminology, including the terms ‘anticipates’, ‘believes’, ‘estimates’, ‘expects’, ‘intends’,

‘may’, ‘plans’, ‘projects’, ‘should’ or ‘will’, or, in each case, their negative or other variations or comparable terminology, or by discussions of

strategy, plans, objectives, goals, future events or intentions. These forward-looking statements include all matters that are not historical facts.

They appear in a number of places throughout this Annual Report and Accounts and include, but are not limited to, statements regarding the

Group’s intentions, beliefs or current expectations concerning, amongst other things, results of operations, prospects, growth, strategies and

expectations of its respective businesses.

By their nature, forward-looking statements involve risk and uncertainty because they relate to future events and circumstances. Forward-

looking statements are not guarantees of future performance and the actual results of the Group’s operations and the development of the

markets and the industry in which they operate or are likely to operate and their respective operations may differ materially from those

described in, or suggested by, the forward-looking statements contained in this Annual Report and Accounts. In addition, even if the results

of operations and the development of the markets and the industry in which the Group operates are consistent with the forward-looking

statements contained in this Annual Report and Accounts, those results or developments may not be indicative of results or developments in

subsequent periods. A number of factors could cause results and developments to differ materially from those expressed or implied by the

forward-looking statements, including, without limitation, those risks in the risk factor section of this Annual Report and Accounts, as well as

general economic and business conditions, industry trends, competition, changes in regulation, currency fluctuations or advancements in

research and development.

Forward-looking statements speak only as of the date of this Annual Report and Accounts and may, and often do, differ materially from actual

results. Any forward-looking statements in this Annual Report and Accounts reflect the Group’s current view with respect to future events and are

subject to risks relating to future events and other risks, uncertainties and assumptions relating to the Group’s operations, results of operations

and growth strategy.

Neither Computacenter plc nor any of its subsidiaries undertakes any obligation to update the forward-looking statements to reflect actual

results or any change in events, conditions or assumptions or other factors unless otherwise required by applicable law or regulation.

201

Financial Statements

Annual Report and Accounts 2021

Group five-year financial review and dates

Group five-year summary results

As of 31 December

2017

£m

2018

£m

2019

£m

2020

£m

2021

£m

Revenue 3,793.4 4,352.6 5,052.8 5,441.3 6,725.8

Adjusted

operating profit 105.5 118.8 151.5 206.4 262.8

Adjusted

profit before tax 106.2 118.2 146.3 200.5 255.6

Profit for the year 81.3 80.9 101.6 154.2 186.5

Adjusted

diluted earnings per share 65.1p 75.7p 92.5p 126.4p 165.6p

Adjusted net funds

195.2 66.2 137.1 188.6 241.4

Headcount (monthly average) 14,026 15,117 15,816 16,764 17,496

Group five-year summary balance sheet

As at 31 December

2017

£m

2018

£m

2019

£m

2020

£m

2021

£m

Tangible assets 77.9 106.3 101.4 107.0 90.0

Right-of-use assets – – 110.9 129.6 138.1

Intangible assets 80.3 184.6 175.6 274.7 273.7

Investment in associate 0.1 0.1 0.1 0.1 0.1

Deferred tax asset 9.1 9.6 9.2 10.1 30.2

Non-current prepayments – 3.5 3.5 23.6 16.6

Inventories 69.3 99.5 122.2 211.3 341.3

Trade and other receivables (including income tax receivables) 835.4 1,180.4 996.5 1,105.9 1,284.0

Prepayments and accrued income 162.6 171.2 176.3 228.2 251.1

Derivative financial instruments 8.2 3.9 3.3 1.6 3.6

Cash and short-term deposits 206.6 200.4 217.9 309.8 285.2

Current liabilities (940.9) (1,351.1) (1,257.8) (1,586.2) (1,783.7)

Non-current liabilities (19.7) (160.6) (166.6) (184.8) (185.4)

Net assets 488.9 447.8 492.5 630.9 744.8

Financial calendar

Title Date

AGM 19 May 2022

Ex-dividend date 09 June 2022

Dividend record date 10 June 2022

Dividend payment date 08 July 2022

Interim results announcement 09 September 2022

202

Corporate information

Principal banker

Barclays Bank plc

1 Churchill Place

Canary Wharf

London

E14 5HP

United Kingdom

Tel: +44 (0) 345 7345 345

HSBC Bank plc

8 Canada Square

London

E14 5HQ

United Kingdom

Tel: +44 (0) 345 740 4404

Auditor

KPMG LLP

15 Canada Square

London

E14 5GL

United Kingdom

Tel: +44 (0) 20 7311 1000

Company Secretary

Simon Pereira (appointed on 9 December 2021)

Raymond Gray (resigned on 9 December 2021)

Registered office

Hatfield Avenue

Hatfield

Hertfordshire

AL10 9TW

United Kingdom

Tel: +44 (0) 1707 631000

Stockbrokers and investment bankers

Credit Suisse

One Cabot Square

London

E14 4QJ

United Kingdom

Tel: +44 (0) 20 7888 8888

Investec Investment Banking

30 Gresham Street

London

EC2V 7QP

United Kingdom

Tel: +44 (0) 20 7597 4000

Registrar and transfer office

Equiniti

Aspect House

Spencer Road

Lancing

West Sussex

BN99 6DA

United Kingdom

Tel: +44 (0) 371 384 2027

Solicitor

Linklaters

One Silk Street

London

EC2Y 8HQ

United Kingdom

Tel: +44 (0) 20 7456 2000

Company registration number

3110569

Internet address

Computacenter Group

www.computacenter.com

Board of Directors

Peter Ryan (Non-Executive Chair)

Mike Norris (Chief Executive Officer)

Tony Conophy (Group Finance Director)

Rene Haas (Non-Executive Director)

Philip Hulme (Non-Executive Director)

Ljiljana Mitic (Non-Executive Director)

Peter Ogden (Non-Executive Director)

Minnow Powell (Non-Executive Director)

(Retired on 30 September 2021)

Ros Rivaz (Senior Independent Director)

Pauline Campbell (Non-Executive Director)

(Appointed on 16 August 2021)

203

Financial Statements

Annual Report and Accounts 2021

Principal offices

UK and Group headquarters

Computacenter plc

Hatfield Avenue

Hatfield

Hertfordshire

AL10 9TW

United Kingdom

Tel: +44 (0) 1707 631000

Belgium

Computacenter NV/SA

Ikaroslaan 31

B-1930 Zaventem

Belgium

Tel: +32 (0) 2 704 9411

France

Computacenter France SAS

229 rue de la Belle Étoile

ZI Paris Nord II

BP 52387

95943 Roissy CDG Cedex

France

Tel: +33 (0) 1 48 17 41 00

Germany

Computacenter AG & Co. oHG

Computacenter Park 1

50170 Kerpen

Germany

Tel: +49 (0) 2273 5970

Computacenter AG

Kattenbug 2

50667 Köln

Germany

Tel: +49 (0) 22142 07430

Computacenter Germany AG & Co. oHG

Werner-Eckert-Str. 16-18

81829 München

Germany

Tel: +49 (0) 8945 7120

Hungary

Computacenter Services Kft

Haller Gardens, Building D. 1st Floor

Soroksári út 30-34

Budapest 1095

Hungary

Tel: +36 1 777 7488

India

Computacenter India Private Limited,

4th Floor, Purva Premiere,

Residency Road,

Bangalore 560025

India

Tel: +91 95386 11122

Malaysia

Computacenter Services (Malaysia) Sdn Bhd

Level 9, Tower 1

Puchong Financial Corporate Centre

Jalan Puteri 1/2, Bandar Puteri

47100 Puchong

Selangor Darul Ehsan

Malaysia

Tel: +603 7724 9626

Mexico

Computacenter México S.A. de C.V.

Av. Paseo de la Reforma, No. 412-5

Col. Juárez

Delegación Cuauhtémoc

CP 06600

México City

México

Tel: +52 (55) 6844 0700

Netherlands

Computacenter B.V.

Gondel 1

1186 MJ Amstelveen

Netherlands

Tel: +31 (0) 88 435 8000

Romania

Computacenter Services S.R.L.

Stables Office

20A Onisifor Ghibu

Record Park

Cluj-Napoca, CJ 400185

Romania

South Africa

Computacenter (Pty) Ltd

Building 1

Klein D’Aria Estate

97 Jip de Jager Drive

Bellville, 7530

Cape Town

South Africa

Tel: +27 (0) 21 957 4900

Spain

Computacenter Services (Iberia) S.L.U.

Carrer de Sancho De Avila 52-58

08018 Barcelona

Spain

Tel: +34 936 207 000

Switzerland

Computacenter AG

Riedstrasse 14

CH-8953 Dietikon

Switzerland

Tel: +41 (0) 43 322 40 80

USA

Computacenter (U.S.), Inc.

17th Floor, 462 7th Avenue

New York, NY 10018

United States of America

Tel: +1 800-228-8324

Computacenter United States Inc.

1 University Avenue

Suite 102, Westwood

MA 02090

United States of America

Tel:+ 1 800-228-8324

Pivot Technology Solutions, Inc.

6026 The Corner Parkway, Suite 100

Norcross, GA 30092

United States of America

Tel: +1 800-228-8324

204

Design and production:

Gather

+44 (0) 20 7610 6140

www.gather.london

Printed on FSC

certified paper by an EMAS certified

printing company, its Environmental Management System

is certified to ISO 14001. 100% of the inks used are

vegetable oil based, 95% of press chemicals are recycled

for further use and, on average, 99% of any waste

associated with this production will be recycled. This

document is printed on Edixion Offset, a paper containing

100% virgin fibre sourced from well-managed forests and

other controlled sources. The pulp used in this product is

bleached using an elemental chlorine free (ECF) process.

Computacenter is a leading independent technology

partner, trusted by large corporate and public sector

organisations. We help our customers to Source,

Transform and Manage their IT infrastructure to

deliver digital transformation, enabling people and

their business. Computacenter is a public company

quoted on the London FTSE 250 (CCC.L) and employs

over 18,000 people worldwide.

Computacenter plc

Hatfield Avenue, Hatfield, Hertfordshire AL10 9TW, United Kingdom

Tel: +44 (0) 1707 631000

www.computacenter.com

E&OE. All trademarks acknowledged.