2017 consolidated presentation - final - without notes · fy 2017 $6.08bn fy 2016 $6.45bn ebitda...

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Technology Distribution Integration & Managed Services Consulting & Research DATATEC GROUP AUDITED PROVISIONAL RESULTS FOR THE YEAR ENDED 28 FEBRUARY 2017

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Page 1: 2017 Consolidated presentation - Final - without notes · FY 2017 $6.08bn FY 2016 $6.45bn EBITDA ... EMEA caused by final SAP phase ... REVENUE % BY BUSINESS UNIT, CUSTOMER & TECHNOLOGY

Technology Distribution Integration & Managed Services Consulting & Research

DATATEC GROUPAUDITED PROVISIONAL RESULTS FOR THE YEAR ENDED 28 FEBRUARY 2017

Page 2: 2017 Consolidated presentation - Final - without notes · FY 2017 $6.08bn FY 2016 $6.45bn EBITDA ... EMEA caused by final SAP phase ... REVENUE % BY BUSINESS UNIT, CUSTOMER & TECHNOLOGY

© Datatec 2017 2

DATATEC GROUPAGENDA

Results summary & overviewJens Montanana, Datatec Group CEO

Financial resultsIvan Dittrich, Datatec Group CFO

Operational reviewJens Montanana, Datatec Group CEO

Current trading & prospectsJens Montanana, Datatec Group CEO

Page 3: 2017 Consolidated presentation - Final - without notes · FY 2017 $6.08bn FY 2016 $6.45bn EBITDA ... EMEA caused by final SAP phase ... REVENUE % BY BUSINESS UNIT, CUSTOMER & TECHNOLOGY

© Datatec 2017

Technology Distribution Integration & Managed Services Consulting & Research

RESULTS SUMMARY & OVERVIEW

Page 4: 2017 Consolidated presentation - Final - without notes · FY 2017 $6.08bn FY 2016 $6.45bn EBITDA ... EMEA caused by final SAP phase ... REVENUE % BY BUSINESS UNIT, CUSTOMER & TECHNOLOGY

© Datatec 2017 4OVERVIEW

WESTCON GROUP

LOGICALIS GROUP

DATATEC GROUP OUTLOOK

DATATEC GROUPFINANCIAL RESULTS SUMMARY

RevenueFY 2017 $6.08bnFY 2016 $6.45bn

EBITDAFY 2017 $118.9mFY 2016 $162.1m

Gross marginFY 2017 13.7%FY 2016 13.5%

DividendsFY 2017 4.2 US¢FY 2016 17.0 US¢

Underlying EPSFY 2017 11.0 US¢FY 2016 32.0 US¢

Page 5: 2017 Consolidated presentation - Final - without notes · FY 2017 $6.08bn FY 2016 $6.45bn EBITDA ... EMEA caused by final SAP phase ... REVENUE % BY BUSINESS UNIT, CUSTOMER & TECHNOLOGY

© Datatec 2017 5OVERVIEW

WESTCON GROUP

LOGICALIS GROUP

DATATEC GROUP OUTLOOK

DATATEC GROUPOVERVIEW

Challenging end to year

Growth in managed services and network security

Continuing strong dollar

Very disruptive final phase of SAP/BPO transition

Page 6: 2017 Consolidated presentation - Final - without notes · FY 2017 $6.08bn FY 2016 $6.45bn EBITDA ... EMEA caused by final SAP phase ... REVENUE % BY BUSINESS UNIT, CUSTOMER & TECHNOLOGY

© Datatec 2017

Technology Distribution Integration & Managed Services Consulting & Research

FINANCIAL RESULTS

Page 7: 2017 Consolidated presentation - Final - without notes · FY 2017 $6.08bn FY 2016 $6.45bn EBITDA ... EMEA caused by final SAP phase ... REVENUE % BY BUSINESS UNIT, CUSTOMER & TECHNOLOGY

© Datatec 2017 7OVERVIEW

WESTCON GROUP

LOGICALIS GROUP

DATATEC GROUP OUTLOOK

DATATEC GROUPFINANCIAL PERFORMANCE

US$m FY 2017 FY 2016 Growth %

Revenue 6,083.4 6,454.8 (6%)

Gross profit 833.1 868.7 (4%)

Gross margin % 13.7% 13.5%

Operating costs (714.2) (706.6) 1%

Operating cost margin % 11.7% 10.9%

EBITDA 118.9 162.1 (27%)

EBITDA% 2.0% 2.5%

Depreciation & amortisation (58.4) (51.5) 13%

Intangible impairment - (0.1)

Operating profit 60.5 110.5 (45%)

Operating profit % 1.0% 1.7%

Revenues and gross profit impacted by weaker Westcon performance

Gross margins expanded to 13.7%

EBITDA impacted by Westcon restructuring costs

Depreciation & amortisation increased due to high capex

Page 8: 2017 Consolidated presentation - Final - without notes · FY 2017 $6.08bn FY 2016 $6.45bn EBITDA ... EMEA caused by final SAP phase ... REVENUE % BY BUSINESS UNIT, CUSTOMER & TECHNOLOGY

© Datatec 2017 8OVERVIEW

WESTCON GROUP

LOGICALIS GROUP

DATATEC GROUP OUTLOOK

DATATEC GROUPFINANCIAL PERFORMANCE – CONTINUED

US$m FY 2017 FY 2016 Growth %

Operating profit 60.5 110.5 (45%)

Net finance costs (24.2) (23.9) 1%

Profit before tax 41.7 88.4 (53%)

Underlying EPS (US cents) 11.0 32.0 (66%)

HEPS (US cents) 2.0 19.4 (90%)

Abnormally high effective tax rate at 74%

Underlying EPS excludes restructuring costs

Financial year close and reporting delayed by SAP implementation in Europe

Page 9: 2017 Consolidated presentation - Final - without notes · FY 2017 $6.08bn FY 2016 $6.45bn EBITDA ... EMEA caused by final SAP phase ... REVENUE % BY BUSINESS UNIT, CUSTOMER & TECHNOLOGY

© Datatec 2017 9OVERVIEW

WESTCON GROUP

LOGICALIS GROUP

DATATEC GROUP OUTLOOK

DATATEC GROUPADJUSTED EBITDA BRIDGE

119

139

182

17 2 1

Reported EBITDA Restructuring costs Unrealised FX Other Adjusted** EBITDA FY16 adjusted EBITDA

7

** Adjusted for uEPS adjustments

Page 10: 2017 Consolidated presentation - Final - without notes · FY 2017 $6.08bn FY 2016 $6.45bn EBITDA ... EMEA caused by final SAP phase ... REVENUE % BY BUSINESS UNIT, CUSTOMER & TECHNOLOGY

© Datatec 2017 10OVERVIEW

WESTCON GROUP

LOGICALIS GROUP

DATATEC GROUP OUTLOOK

DATATEC GROUPCONTRIBUTION PER DIVISION

* Contribution to EBITDA is calculated before Corporate costs

74%

25%

1%

FY 2017

75%

24%

1%

FY 2016

REVENUE GROSS PROFIT

Westcon Logicalis Consulting & Financial Services

55%

44%

1%

FY 2017

57%41%

2%

FY 2016

EBITDA*

40%

58%

2%

FY 2017

52%

47%

1%

FY 2016

Larger EBITDA contribution from

Logicalis

Page 11: 2017 Consolidated presentation - Final - without notes · FY 2017 $6.08bn FY 2016 $6.45bn EBITDA ... EMEA caused by final SAP phase ... REVENUE % BY BUSINESS UNIT, CUSTOMER & TECHNOLOGY

© Datatec 2017 11OVERVIEW

WESTCON GROUP

LOGICALIS GROUP

DATATEC GROUP OUTLOOK

DATATEC GROUPREVENUE & GROSS PROFIT % CONTRIBUTION BY GEOGRAPHY

35%

15%

33%

11%

6%

FY 2017

35%

14%

34%

9%8%

FY 2016

REVENUE GROSS PROFIT

29%

22%

33%

12%4%

FY 2017

28%

21%33%

11%7%

FY 2016

North America Latin America Europe Asia-Pacific MEA

Geographic mix affected margins

Increased contribution from Latin America and

Asia-Pacific

Page 12: 2017 Consolidated presentation - Final - without notes · FY 2017 $6.08bn FY 2016 $6.45bn EBITDA ... EMEA caused by final SAP phase ... REVENUE % BY BUSINESS UNIT, CUSTOMER & TECHNOLOGY

© Datatec 2017 12OVERVIEW

WESTCON GROUP

LOGICALIS GROUP

DATATEC GROUP OUTLOOK

DATATEC GROUPBALANCE SHEET SUMMARY

US$m FY 2017 FY 2016

Assets 3,484.9 3,382.9Non-current assets

Goodwill 461.7 462.6Acquired intangible assets & software 48.6 59.8Other non-current assets 276.1 243.7

Current assets 2,698.5 2,616.8

Equity & Liabilities 3,484.9 3,382.9Shareholders’ funds 855.0 830.3Non-controlling interests 51.9 39.1Long-term liabilities 126.5 100.7Amounts due to vendors 1.1 10.5Current liabilities 2,450.4 2,402.3

Net debt (396.5) (205.4)

Increase in receivables

$4.04 NAV per share

1.1 current ratio

Increased net debt, as a result of Westcon-Comstor

Page 13: 2017 Consolidated presentation - Final - without notes · FY 2017 $6.08bn FY 2016 $6.45bn EBITDA ... EMEA caused by final SAP phase ... REVENUE % BY BUSINESS UNIT, CUSTOMER & TECHNOLOGY

© Datatec 2017 13OVERVIEW

WESTCON GROUP

LOGICALIS GROUP

DATATEC GROUP OUTLOOK

DATATEC GROUPCASH FLOW

US$m FY 2017 FY 2016

EBITDA 118.9 162.1Working capital changes (184.6) (59.4)Other working capital changes 12.7 (2.8)Other movements 15.7 29.2

Cash (utilised in)/generated from operations (37.3) 129.1Net finance costs paid (25.3) (21.2)Taxation paid (43.3) (39.9)

Net cash (outflow)/inflow from operating activities (105.9) 68.0Net cash outflow for acquisitions (1.9) (46.2)Net cash outflow from other investing activities (67.8) (73.1)Dividends to shareholders (20.9) (22.2)Net cash inflow/(outflow) from financing activities 17.4 (11.2)

Decrease in cash & cash equivalents (179.1) (84.7)Cash & cash equivalents at beginning of year (132.7) (22.1)Translation difference on cash & cash equivalents 11.9 (25.9)

Cash & cash equivalents at end of period (299.9) (132.7)

Deteriorating operating cash flows from working capital changes

Large cash outflows from receivables due to increased prepaid expenses in Logicalis

Page 14: 2017 Consolidated presentation - Final - without notes · FY 2017 $6.08bn FY 2016 $6.45bn EBITDA ... EMEA caused by final SAP phase ... REVENUE % BY BUSINESS UNIT, CUSTOMER & TECHNOLOGY

© Datatec 2017 14OVERVIEW

WESTCON GROUP

LOGICALIS GROUP

DATATEC GROUP OUTLOOK

DATATEC GROUPCASH FLOW FROM OPERATING ACTIVITIES

US$m

(32.9)

12.3

119

(84)(12) (89) 13 16

(25) (44) (106)

EBITDA Increase inreceivables

Increase ininventories

Decrease inpayables

Other workingcapital

changes

Othermovements

Net financecosts

Taxation paid Net cashoutflow from

operatingactivities

Page 15: 2017 Consolidated presentation - Final - without notes · FY 2017 $6.08bn FY 2016 $6.45bn EBITDA ... EMEA caused by final SAP phase ... REVENUE % BY BUSINESS UNIT, CUSTOMER & TECHNOLOGY

© Datatec 2017

Technology Distribution Integration & Managed Services Consulting & Research

OPERATIONAL REVIEW

Page 16: 2017 Consolidated presentation - Final - without notes · FY 2017 $6.08bn FY 2016 $6.45bn EBITDA ... EMEA caused by final SAP phase ... REVENUE % BY BUSINESS UNIT, CUSTOMER & TECHNOLOGY

© Datatec 2017

Technology Distribution Integration & Managed Services Consulting & Research

WESTCON GROUP

Page 17: 2017 Consolidated presentation - Final - without notes · FY 2017 $6.08bn FY 2016 $6.45bn EBITDA ... EMEA caused by final SAP phase ... REVENUE % BY BUSINESS UNIT, CUSTOMER & TECHNOLOGY

© Datatec 2017 LOGICALIS

GROUPWESTCON

GROUPDATATEC GROUP 17

OUTLOOKOVERVIEW

WESTCON GROUPFINANCIAL PERFORMANCE

US$m FY 2017 FY 2016 Growth %

Revenue 4,532.1 4,869.6 (7%)

Gross profit 456.0 497.1 (8%)

Gross margin % 10.1% 10.2%

Operating costs (402.5) (408.6) (1%)

Operating cost margin % 8.9% 8.4%

EBITDA 53.5 88.5 (40%)

EBITDA% 1.2% 1.8%

Operating profit 20.3 62.2 (67%)

Operating profit % 0.4% 1.3%

Disappointing year end marred by BPO transformation challenges

Significant year end disruption in EMEA caused by final SAP phase

Almost 80% of revenue shortfall was in EMEA

Unexpected costs impacted Asia-Pacific and MEA profitability

Page 18: 2017 Consolidated presentation - Final - without notes · FY 2017 $6.08bn FY 2016 $6.45bn EBITDA ... EMEA caused by final SAP phase ... REVENUE % BY BUSINESS UNIT, CUSTOMER & TECHNOLOGY

© Datatec 2017 LOGICALIS

GROUPWESTCON

GROUPDATATEC GROUP 18

OUTLOOKOVERVIEW

WESTCON GROUP

37%

11%

33%

11%

8%

FY 2017

37%

10%33%

10%10%

FY 2016

REVENUE GROSS PROFIT

27%

18%36%

12%

7%

FY 2017

26%

17%35%

11%

11%

FY 2016

North America

Latin America

Europe

Asia-Pacific

MEA

REVENUE & GROSS PROFIT % CONTRIBUTION BY GEOGRAPHY

Page 19: 2017 Consolidated presentation - Final - without notes · FY 2017 $6.08bn FY 2016 $6.45bn EBITDA ... EMEA caused by final SAP phase ... REVENUE % BY BUSINESS UNIT, CUSTOMER & TECHNOLOGY

© Datatec 2017 LOGICALIS

GROUPWESTCON

GROUPDATATEC GROUP 19

OUTLOOKOVERVIEW

WESTCON GROUPREVENUE % BY BUSINESS UNIT, CUSTOMER & TECHNOLOGY CATEGORY

40%

60%

FY 2017

44%

56%

FY 2016

BUSINESS UNIT CUSTOMER

Comstor Westcon

70%

20%

10%

FY 2017

68%

19%

13%

FY 2016

TECHNOLOGY

39%

21%

25%

15%

FY 2017

34%

26%

23%

17%

FY 2016

ResellerSystem integrator

Service provider

Security Unified communications

Networking Data centre & other

Page 20: 2017 Consolidated presentation - Final - without notes · FY 2017 $6.08bn FY 2016 $6.45bn EBITDA ... EMEA caused by final SAP phase ... REVENUE % BY BUSINESS UNIT, CUSTOMER & TECHNOLOGY

© Datatec 2017 LOGICALIS

GROUPWESTCON

GROUPDATATEC GROUP 20

OUTLOOKOVERVIEW

WESTCON GROUPHISTORICAL QUARTERLY SALES

US$m

Qtr 1 Qtr 2 Qtr 3 Qtr 4 Qtr 1 Qtr 2 Qtr 3 Qtr 4 Qtr 1 Qtr 2

FY 2015

1 031

1 254

1 068

1 210 1 257 1 188

1 276 1 190

1 141

1 338

1 169 1 135

FY 2016 FY 2017

Qtr 3 Qtr 4

Page 21: 2017 Consolidated presentation - Final - without notes · FY 2017 $6.08bn FY 2016 $6.45bn EBITDA ... EMEA caused by final SAP phase ... REVENUE % BY BUSINESS UNIT, CUSTOMER & TECHNOLOGY

© Datatec 2017 LOGICALIS

GROUPWESTCON

GROUPDATATEC GROUP 21

OUTLOOKOVERVIEW

WESTCON GROUPGROSS PROFIT & EBITDA BY GEOGRAPHY

3.3%

GROSS PROFIT EBITDA

US$m US$m

12984

173

55 56

497

121 80

165

5733

456

-

50

100

150

200

250

300

350

400

450

500

550

NorthAmerica

Latin America Europe Asia-Pacific MEA Total

FY 2016 FY 2017

70

28

43

14

(6)

(60)

89

63

26 43

(2)(13)

(63)

54

(80)

(60)

(40)

(20)

-

20

40

60

80

100

120

NorthAmerica

LatinAmerica

Europe Asia-Pacific MEA Centralcosts

Total

FY 2016 FY 2017

Page 22: 2017 Consolidated presentation - Final - without notes · FY 2017 $6.08bn FY 2016 $6.45bn EBITDA ... EMEA caused by final SAP phase ... REVENUE % BY BUSINESS UNIT, CUSTOMER & TECHNOLOGY

© Datatec 2017 LOGICALIS

GROUPWESTCON

GROUPDATATEC GROUP 22

OUTLOOKOVERVIEW

US$m FY 2017 FY 2016

Accounts receivable 1,245.2 1,219.9

DSO (days) 71 70

Inventory 400.0 387.4

Inventory turns 9.4x 9.8x

Accounts payable (1,060.9) (1,093.0)

DPO (days) 72 73

Net working capital 584.3 514.3

NWC (days) 39 34

Current ratio 1.1 1.1

Net debt (403.4) (271.0)

WESTCON GROUPWORKING CAPITAL

DSO’s deteriorate due to BPO & SAP challenges with collections in Europe

Net debt increases due to lower cash earnings and higher working capital

Page 23: 2017 Consolidated presentation - Final - without notes · FY 2017 $6.08bn FY 2016 $6.45bn EBITDA ... EMEA caused by final SAP phase ... REVENUE % BY BUSINESS UNIT, CUSTOMER & TECHNOLOGY

© Datatec 2017 LOGICALIS

GROUPWESTCON

GROUPDATATEC GROUP 23

OUTLOOKOVERVIEW

WESTCON GROUPNET DEBT

(700)

(600)

(500)

(400)

(300)

(200)

(100)

-

Feb-

14

Mar

-14

Apr-

14

May

-14

Jun-

14

Jul-1

4

Aug

-14

Sep

-14

Oct

-14

Nov

-14

Dec

-14

Jan-

15

Feb-

15

Mar

-15

Apr-

15

May

-15

Jun-

15

Jul-1

5

Aug

-15

Sep

-15

Oct

-15

Nov

-15

Dec

-15

Jan-

16

Feb-

16

Mar

-16

Apr-

16

May

-16

Jun-

16

Jul-1

6

Aug

-16

Sep

-16

Oct

-16

Nov

-16

Dec

-16

Jan-

17

Feb-

17

Impacted by investment in capex over the three year period

Page 24: 2017 Consolidated presentation - Final - without notes · FY 2017 $6.08bn FY 2016 $6.45bn EBITDA ... EMEA caused by final SAP phase ... REVENUE % BY BUSINESS UNIT, CUSTOMER & TECHNOLOGY

© Datatec 2017 24OVERVIEW

WESTCON GROUP

LOGICALIS GROUP

DATATEC GROUP OUTLOOK

WESTCON GROUPOUTLOOK

Resolving issues associated to BPO transformation

Focus on improving working capital and cash generation

Stabilising operating platform post completion of SAP transition

Reduction in capital expenditure and central costs

Return to revenue growth and better profitability

Page 25: 2017 Consolidated presentation - Final - without notes · FY 2017 $6.08bn FY 2016 $6.45bn EBITDA ... EMEA caused by final SAP phase ... REVENUE % BY BUSINESS UNIT, CUSTOMER & TECHNOLOGY

© Datatec 2017

Technology Distribution Integration & Managed Services Consulting & Research

LOGICALIS GROUP

Page 26: 2017 Consolidated presentation - Final - without notes · FY 2017 $6.08bn FY 2016 $6.45bn EBITDA ... EMEA caused by final SAP phase ... REVENUE % BY BUSINESS UNIT, CUSTOMER & TECHNOLOGY

© Datatec 2017 26OVERVIEW

WESTCON GROUP

LOGICALIS GROUP

DATATEC GROUP OUTLOOK

LOGICALIS GROUPFINANCIAL PERFORMANCE

US$m FY 2017 FY 2016 Growth %

Revenue 1,510.3 1,532.8 (1%)

Gross profit 363.3 353.4 3%

Gross margin % 24.1% 23.1%

Operating costs (284.3) (272.5) 4%

Operating cost margin % 18.8% 17.8%

EBITDA 79.0 80.9 (2%)

EBITDA% 5.2% 5.3%

Operating profit 54.4 56.3 (3%)

Operating profit % 3.6% 3.7%

Revenue flat despite market challenges, weakness in UK

Gross margin improvement delivered by beneficial services mix

Operating costs increase due to restructuring costs in UK and

Australia

Page 27: 2017 Consolidated presentation - Final - without notes · FY 2017 $6.08bn FY 2016 $6.45bn EBITDA ... EMEA caused by final SAP phase ... REVENUE % BY BUSINESS UNIT, CUSTOMER & TECHNOLOGY

© Datatec 2017 27OVERVIEW

WESTCON GROUP

LOGICALIS GROUP

DATATEC GROUP OUTLOOK

LOGICALIS GROUP

30%

28%

31%

11%

FY 2017

30%

27%

34%

9%

FY 2016

REVENUE GROSS PROFIT

33%

28%

27%

12%

FY 2017

31%

28%

31%

10%

FY 2016

North America

Latin America

Europe

Asia-Pacific

REVENUE & GROSS PROFIT % CONTRIBUTION BY GEOGRAPHY

Page 28: 2017 Consolidated presentation - Final - without notes · FY 2017 $6.08bn FY 2016 $6.45bn EBITDA ... EMEA caused by final SAP phase ... REVENUE % BY BUSINESS UNIT, CUSTOMER & TECHNOLOGY

© Datatec 2017 28OVERVIEW

WESTCON GROUP

LOGICALIS GROUP

DATATEC GROUP OUTLOOK

LOGICALIS GROUPREVENUE BY SEGMENT & PRODUCT REVENUE BY VENDOR

SEGMENT

65%

13%

22%

FY 2017

69%

12%

19%

FY 2016

Product

Professional services

Maintenance & managed services

VENDOR

50%

10%

6%

34%

FY 2017

52%16%

7%

25%

FY 2016

Cisco

IBM

HPE

Other

Page 29: 2017 Consolidated presentation - Final - without notes · FY 2017 $6.08bn FY 2016 $6.45bn EBITDA ... EMEA caused by final SAP phase ... REVENUE % BY BUSINESS UNIT, CUSTOMER & TECHNOLOGY

© Datatec 2017 29OVERVIEW

WESTCON GROUP

LOGICALIS GROUP

DATATEC GROUP OUTLOOK

LOGICALIS GROUP

GROSS PROFIT EBITDA

US$m US$m

110 100 110

33

353

120 10198

44

363

-

50

100

150

200

250

300

350

400

North America Latin America Europe Asia-Pacific Total

FY 2016 FY 2017

24

38

18

7

(6)

81

27

39

8 10

(5)

79

(20)

(10)

-

10

20

30

40

50

60

70

80

90

NorthAmerica

Latin America Europe Asia-Pacific Central costs Total

FY 2016 FY 2017

GROSS PROFIT & EBITDA BY GEOGRAPHY

Page 30: 2017 Consolidated presentation - Final - without notes · FY 2017 $6.08bn FY 2016 $6.45bn EBITDA ... EMEA caused by final SAP phase ... REVENUE % BY BUSINESS UNIT, CUSTOMER & TECHNOLOGY

© Datatec 2017 30OVERVIEW

WESTCON GROUP

LOGICALIS GROUP

DATATEC GROUP OUTLOOK

LOGICALIS GROUPWORKING CAPITAL

US$m FY 2017 FY 2016

Deferred revenue 77.3 77.9

Inventory 38.5 47.2

Inventory days (excluding spares stock) 14 18

Accounts receivable 296.7 279.8

DSO (days) 50 45

Accounts payable (259.7) (266.4)

DPO (days) 88 82

Net working capital 75.5 60.6

Net cash * 18.1 77.6

* Excluding lease liabilities, Datatec loans and other borrowings

DSO increase due to extended payment terms in Latin America

Cash affected by large prepaid expenses in Brazil

Page 31: 2017 Consolidated presentation - Final - without notes · FY 2017 $6.08bn FY 2016 $6.45bn EBITDA ... EMEA caused by final SAP phase ... REVENUE % BY BUSINESS UNIT, CUSTOMER & TECHNOLOGY

© Datatec 2017 31OVERVIEW

WESTCON GROUP

LOGICALIS GROUP

DATATEC GROUP OUTLOOK

LOGICALIS GROUPOUTLOOK

Logicalis well positioned to further improve services mix

Exploring expansion opportunities in existing geographies

Continual adjustment to cloud-based infrastructure solutions

Sentiment improving in Logicalis core markets

Page 32: 2017 Consolidated presentation - Final - without notes · FY 2017 $6.08bn FY 2016 $6.45bn EBITDA ... EMEA caused by final SAP phase ... REVENUE % BY BUSINESS UNIT, CUSTOMER & TECHNOLOGY

© Datatec 2017

Technology Distribution Integration & Managed Services Consulting & Research

CURRENT TRADING & PROSPECTS

Page 33: 2017 Consolidated presentation - Final - without notes · FY 2017 $6.08bn FY 2016 $6.45bn EBITDA ... EMEA caused by final SAP phase ... REVENUE % BY BUSINESS UNIT, CUSTOMER & TECHNOLOGY

© Datatec 2017 33OVERVIEW

WESTCON GROUP

LOGICALIS GROUP

DATATEC GROUP OUTLOOK

DATATEC GROUPCURRENT TRADING & PROSPECTS

Westcon-Comstor operational challenges expected to be resolved

Focus is on working capital, cash generation and earnings

Better growth expected in Europe and Asia

Higher interest rates and continuing strong dollar

Page 34: 2017 Consolidated presentation - Final - without notes · FY 2017 $6.08bn FY 2016 $6.45bn EBITDA ... EMEA caused by final SAP phase ... REVENUE % BY BUSINESS UNIT, CUSTOMER & TECHNOLOGY

Technology Distribution Integration & Managed Services Consulting & Research

© Datatec 2017

QUESTIONS

Page 35: 2017 Consolidated presentation - Final - without notes · FY 2017 $6.08bn FY 2016 $6.45bn EBITDA ... EMEA caused by final SAP phase ... REVENUE % BY BUSINESS UNIT, CUSTOMER & TECHNOLOGY

© Datatec 2017 35

DATATEC GROUPDEFINITIONS

UNDERLYING EARNINGS

Excluding impairment of goodwill and intangible assets, profit or loss on sale of investments and assets, amortisation of acquired intangible assets, unrealised foreign exchange movements, acquisition-related adjustments, fair value movements on acquisition-related financial instruments, restructuring costs relating to fundamental reorganisations and the taxation effect on all of the aforementioned

CONSTANT CURRENCY

The pro forma constant currency information, which is the responsibility of the directors of Datatec, presents the Group’s revenue for the current year had it been translated at the average foreign currency exchange rates of the prior year. This information is for illustrative purposes only and because of its nature, may not fairly present the Group’s revenues. The Group’s auditors, Deloitte & Touche have issued an unmodified reasonable assurance report (ISAE 3420: Reasonable Assurance Engagements to Report on the Compilation of Pro Forma Financial Information) on the pro-forma financial information presented, a copy of which is available for inspection at the Company’s registered office

To determine the revenues in constant currency terms, the current financial reporting period’s monthly revenues in local currency have been converted to US dollars at the average monthly exchange rates prevailing over the same period in the prior year. The calculation has been prepared for each of the Group’s material currencies, being that of the British Pound, Euro, Brazilian Real, Australian Dollar, Canadian Dollar, Singapore Dollar, Mexican Peso and South African Rand, using the average exchange rates against the US Dollar

Page 36: 2017 Consolidated presentation - Final - without notes · FY 2017 $6.08bn FY 2016 $6.45bn EBITDA ... EMEA caused by final SAP phase ... REVENUE % BY BUSINESS UNIT, CUSTOMER & TECHNOLOGY

© Datatec 2017 36

DATATEC GROUP

This presentation may contain statements regarding the future financial performance of the Group which may be considered to be forward-looking statements. By their nature, forward-looking statements involve risk and uncertainty, and although the Group has taken reasonable care to ensure the accuracy of the information presented, no assurance can be given that such expectations will prove to have been correct.

The Group has attempted to identify important factors that could cause actual actions, events or results to differ materially from those described in forward-looking statements, there may be other factors that cause actions, events or results not to be as anticipated, estimated or intended. It is important to note, that:

unless otherwise indicated, forward-looking statements indicate the Group’s expectations and have not been reviewed or reported on by the Group’s external auditors;

actual results may differ materially from the Group`s expectations if known and unknown risks or uncertainties affect its business, or if estimates or assumptions prove inaccurate;

the Group cannot guarantee that any forward-looking statement will materialise and, accordingly, readers are cautioned not to place undue reliance on these forward-looking statements; and

the Group disclaims any intention and assumes no obligation to update or revise any forward-looking statement even if new information becomes available, as a result of future events or for any other reason, other than as required by the JSE Limited Listings Requirements.

DISCLAIMER