Softcat plc Annual Report and Accounts 2021

1 Together Softcat plc Annual Report and Accounts 2021. Softcat : we're in this together Our purpose, to help customers use IT to succeed by putting our employees first, has seemed especially prescient during the past twelve months. The special culture we have at Softcat was born from our founder's vision to bring people together in a company they could enjoy being part of. While we haven't been able to physically get together as much as we would have liked this past year, we have been able to stay in touch through some typically ingenious and fun Softcat initiatives take a look at pages 2 and 3 and pages 41. to 43 for more detail on what we've been up to. Financial highlights Contents Strategic Report Gross profit m Gross profit per customer '0002 Strategic Report 1 FY21 operational highlights 21 21 1 Financial highlights 20 20 2 Our response to COVID-19.

2 19 19 4 At a glance 6 Bringing our enablers together 18 18 12 Chair's statement 17 17 15 Investment case 16 Business model Operating profit m Revenue m1 18 Chief Executive Officer's statement 21 Strategic roadmap 21 21 1, 22 Our market and offering 20 20 1, 26 Strategy 28 Chief Financial Officer's review 19 19 30 Risk management 18 18 34 KPIs 17 36 Section 172 Stakeholder engagement 40 Social value Customer base '0002 Cash conversion %3. Corporate governance 21 21 52 Introduction to corporate governance 20 20 54 Board of Directors 58 Governance Report 19 19 67 Audit Committee Report 18 18 76 Nomination Committee Report 17 17 80 Remuneration Committee Report 99 Directors' Report FY21 operational highlights Financial statements 107 Independent auditor's Report Revenue growth: 7% 113 Statement of profit or loss and other comprehensive income Gross profit growth: 17% 114 Statement of financial position Operating profit growth: 27% 115 Statement of changes in equity 116 Statement of cash flows Cash conversion: 90%.

3 117 Notes to the financial statements Employee engagement: 93% IBC Company information and contact details Customer satisfaction: 95%. Customer base up by 200. Gross profit per customer growth: 15%. 1. Revenue was previously restated due to the adoption of IFRS 15 during 2019. As a result revenue is only available on a comparable basis for 2018 to 2021. 2. Customer base is defined as the number of customers who have transacted with Softcat in both of the preceding twelve-month periods. 3. Cash conversion is an alternative performance measures. Please see page 29 for further definition and reconciliation. Pages 1 to 51 form the Strategic Report of Softcat plc for the financial year ended 31 July 2021. The Strategic Report has been approved by the Board of Softcat plc and signed on behalf of the Board by Graeme Watt, CEO, and Graham Charlton, CFO.

4 1. Our response to COVID-19. Supporting our stakeholders through the COVID-19 pandemic At its core, Softcat is a people business which invests in its employees and the things they care about. In this section you will see some of the ways we have responded to the COVID-19. pandemic, supporting one another and our wider stakeholders. Supporting our people taken out for lunch by a member of our Senior Leadership Team The outbreak of the COVID-19 pandemic created insecurity and given the rest of the day off. This tradition was continued in and uncertainty. Keeping our employees safe remained our virtual form, with the Company buying lunch at home for the top priority and we have also made great efforts to keep our winning employees. Our non-sales staff were also recognised for special culture, regardless of the challenges of remote working.

5 Their essential role on Non-Sales Recognition Day', where staff Our Word of the Year' was Together', which was a cornerstone were given lunches and awarded prizes. to our approach to how we work, even when separated. From the outset of the pandemic, all employees were given We are grateful to Report that there have been no cases access to IT kit, desks and other equipment, paid for by Softcat , of COVID-19-related deaths in our workforce. No employee, to help them work from home comfortably and effectively. regardless of their role and responsibilities, was furloughed. It was apparent, however, through our regular engagement with employees, that for a small number of employees the As the pandemic continued, management maintained a keen home environment was not ideal and so, where possible under interest in how our employees were coping, through regular Government guidance, we made our offices available for those employee surveys and virtual all-employee meetings.

6 These have who needed to use them. Our Facilities team did a brilliant job been helpful in allowing management to understand how our of implementing safety measures and protocols, including a employees are feeling, as well as how Softcat can best support them. one-way systems, frequent deep cleans, face covering protocols Vin Murria, our Designated Director for Workforce Engagement, and extra cleaning stations. along with our other Non-Executive Directors, held a virtual We have also taken a practical approach for those who need to engagement session with representatives from our South Coast, juggle home duties, such as child and social care, with work. Leeds and Birmingham offices, giving our employees and our Management has allowed, where possible, a more flexible Directors a direct opportunity to engage on many topics, approach to working hours.

7 Including how employees were coping during the pandemic. As the lockdown continued, it became clear how important Keeping our employees informed about COVID-19-related it is to take care of our own and each other's mental health. developments, both inside and outside the business, was crucial We trained more mental health first aiders, who were available to in supporting a sense of togetherness. Management released chat and provide guidance to employees in need of help. We also comprehensive and regular updates by email, which included created a buddy system', which matched newer employees with updates on the latest Government guidelines, links to helpful more experienced members of staff. To further raise awareness websites, as well as details of the support made available by the and the support available, we ran a Mental Health Awareness Company.

8 To maintain a sense of normality, we have continued Week in May, with a focus on matters such as anxiety about the Softcat tradition of a member of our Senior Leadership Team returning to the office. releasing an email each Friday to all employees. The weekly email is an important opportunity to continue recognising the hard What makes Softcat stand out is our culture, typified by our work and support of other colleagues and it often provided collaborative, vibrant and fun office environment. A key challenge a more personal insight into the lives and thoughts of our was how our culture could be maintained, and continue to flourish, management team as they dealt with the lockdown. Prior to the without coming together physically. Offices adapted by running pandemic, each quarter the highest performing employees were virtual activities, such as coffee mornings and fitness classes.

9 2 Softcat plc Annual Report and Accounts 2021. Strategic Report Supporting our wider stakeholders Marlow office as vaccination centre Together' doesn't only apply to the employees of Softcat , but Finally, one of our proudest moments was opening a COVID-19. also to those around us in the communities in which we operate. vaccination centre, in partnership with Marlow NHS Trust, using Some charities have struggled during the COVID-19 pandemic as part of our Marlow office. Softcat provided and converted the lockdowns have made fundraising harder and charities connected space free of charge. The centre opened in January 2021 and to mental health and wellbeing have experienced an increase in continued to operate up until October. Tens of thousands of people turning to them for help.

10 With the help of our Softcat people have been vaccinated at the centre, mostly from the Communities Network, Softcat has donated over 180,000 to local community and many of our employees were also various charities. To read more about the charities, see our vaccinated onsite. Charities section on page 42. To empower our employees to support the causes they care about, Softcat launched Love2 Volunteer in 2019. Each employee can use two days per year as free charitable days, for which they will be paid by the Company. Last year, we expanded the use of these days to cover activities and initiatives around the environment, community, homelessness and animals, and to provide support to those in need during the pandemic. To help employees utilise these days, Softcat partnered with the onHand'.