DATATEC GROUP AUDITED RESULTS · Gross profit 441.2 410.1 8% Gross margin % 25.9% 23.6% Operating...

41
Integration & Managed Services Technology Distribution Management Consulting DATATEC GROUP AUDITED RESULTS For the year ended 29 February 2020

Transcript of DATATEC GROUP AUDITED RESULTS · Gross profit 441.2 410.1 8% Gross margin % 25.9% 23.6% Operating...

Page 1: DATATEC GROUP AUDITED RESULTS · Gross profit 441.2 410.1 8% Gross margin % 25.9% 23.6% Operating costs (317.3) (316.7) 0% Operating cost margin % 18.7% 18.2% EBITDA 123.9 93.4 33%

Integration & Managed Services Technology Distribution Management Consulting

DATATEC GROUPAUDITED RESULTS For the year ended 29 February 2020

Page 2: DATATEC GROUP AUDITED RESULTS · Gross profit 441.2 410.1 8% Gross margin % 25.9% 23.6% Operating costs (317.3) (316.7) 0% Operating cost margin % 18.7% 18.2% EBITDA 123.9 93.4 33%

Summary:– Overview– COVID-19 & Current trading FY21– Strategic update

Financial Results Operational Review Prospects & Outlook

Page 3: DATATEC GROUP AUDITED RESULTS · Gross profit 441.2 410.1 8% Gross margin % 25.9% 23.6% Operating costs (317.3) (316.7) 0% Operating cost margin % 18.7% 18.2% EBITDA 123.9 93.4 33%

Summary, Overview & Strategic Update

Page 4: DATATEC GROUP AUDITED RESULTS · Gross profit 441.2 410.1 8% Gross margin % 25.9% 23.6% Operating costs (317.3) (316.7) 0% Operating cost margin % 18.7% 18.2% EBITDA 123.9 93.4 33%

© Datatec 2020

Results – year ended February 2020

© Datatec 2020

4

OVERVIEW Strategic update Datatec Group Logicalis Group Westcon International Management Consulting Outlook

Datatec GroupFINANCIAL RESULTS SUMMARY

4

Revenue

$4.3bnFY 2020

$4.3bnFY 2019

EBITDA

$158.7mFY 2020

$86.8mFY 2019

Gross profit

$741.6mFY 2020

$687.7mFY 2019

Underlying EPS

9.9 US¢FY 2020

6.6 US¢FY 2019

Page 5: DATATEC GROUP AUDITED RESULTS · Gross profit 441.2 410.1 8% Gross margin % 25.9% 23.6% Operating costs (317.3) (316.7) 0% Operating cost margin % 18.7% 18.2% EBITDA 123.9 93.4 33%

Results – year ended February 2020

OVERVIEW© Datatec 2020 Strategic update Datatec Group Logicalis Group Westcon International Management Consulting Outlook

Datatec GroupOVERVIEW

5

Solid operational execution in all divisions

Record year for Analysys Mason

Strong Logicalis performance, especially in Latin America

Significantly improved cash generation

Major progress in Westcon International, with benefits of multi-year investment in advanced systems

Page 6: DATATEC GROUP AUDITED RESULTS · Gross profit 441.2 410.1 8% Gross margin % 25.9% 23.6% Operating costs (317.3) (316.7) 0% Operating cost margin % 18.7% 18.2% EBITDA 123.9 93.4 33%

© Datatec 2020

Results – year ended February 2020

© Datatec 2020

6

OVERVIEW Strategic update Datatec Group Logicalis Group Westcon International Management Consulting Outlook

Datatec GroupCOVID-19 & CURRENT TRADING - FY21

6

Strong demand for our solutions and services

Focus on cash & liquidity

Emerging Markets currency weakness

Continuing good revenue and order intake

COVID-19 uncertainty everywhere

Page 7: DATATEC GROUP AUDITED RESULTS · Gross profit 441.2 410.1 8% Gross margin % 25.9% 23.6% Operating costs (317.3) (316.7) 0% Operating cost margin % 18.7% 18.2% EBITDA 123.9 93.4 33%

Results – year ended February 2020

STRATEGIC UPDATEOverview Datatec Group Logicalis Group Westcon International Management

Consulting Outlook© Datatec 2020

Datatec GroupSTRATEGIC UPDATE

7

$15.4m special dividend

$44.3m share repurchases

Strategic acquisitions in Logicalis & Analysys

Mason

Brazil IPO

Page 8: DATATEC GROUP AUDITED RESULTS · Gross profit 441.2 410.1 8% Gross margin % 25.9% 23.6% Operating costs (317.3) (316.7) 0% Operating cost margin % 18.7% 18.2% EBITDA 123.9 93.4 33%

Financial Results

Page 9: DATATEC GROUP AUDITED RESULTS · Gross profit 441.2 410.1 8% Gross margin % 25.9% 23.6% Operating costs (317.3) (316.7) 0% Operating cost margin % 18.7% 18.2% EBITDA 123.9 93.4 33%

© Datatec 2020

Results – year ended February 2020

DATATEC GROUP© Datatec 2020 Strategic updateOverview Logicalis Group Westcon International Management

Consulting Outlook

Datatec Group 9

FINANCIAL PERFORMANCE

US$m FY 2020 FY 2019 % Movement

Revenue 4,304.8 4,332.4 (1%)

Gross profit 741.6 687.7 8%

Gross margin % 17.2% 15.9%

Operating costs (582.9) (600.9) (3%)

Operating cost margin % 13.5% 13.9%

EBITDA 158.7 86.8 83%

EBITDA margin % 3.7% 2.0%

Depreciation & amortisation (76.1) (38.4) 98%

Operating profit 82.6 48.4 71%

Operating profit margin % 1.9% 1.1%

Significantly improved p&l at all levels

4% revenue growth in constant currency

Strong operating leverage

Increased depreciation due to adoption of IFRS16

Page 10: DATATEC GROUP AUDITED RESULTS · Gross profit 441.2 410.1 8% Gross margin % 25.9% 23.6% Operating costs (317.3) (316.7) 0% Operating cost margin % 18.7% 18.2% EBITDA 123.9 93.4 33%

© Datatec 2020

Results – year ended February 2020

DATATEC GROUP© Datatec 2020 Strategic updateOverview Logicalis Group Westcon International Management

Consulting Outlook

Datatec Group 10

FINANCIAL PERFORMANCE – CONTINUED

US$m FY 2020 FY 2019 % Movement

Operating profit 82.6 48.4 71%

Net finance costs (25.9) (22.6) 15%

Profit before tax 58.5 24.2 142%

Underlying EPS (US cents) 9.9 6.6 50%

HEPS (US cents) 5.9 0.7 743%

Net finance costs benefitted from Logicalis Brazil tax ruling in H1

50% growth in underlying earnings per share

Page 11: DATATEC GROUP AUDITED RESULTS · Gross profit 441.2 410.1 8% Gross margin % 25.9% 23.6% Operating costs (317.3) (316.7) 0% Operating cost margin % 18.7% 18.2% EBITDA 123.9 93.4 33%

© Datatec 2020

Results – year ended February 2020

DATATEC GROUP© Datatec 2020 Strategic updateOverview Logicalis Group Westcon International Management

Consulting Outlook

FY 2020 pro forma shows like for like comparison to FY 2019

EBITDA, depreciation & finance costs impacted by IFRS 16

Underlying EPS similar after adopting IFRS 16

11

US$m FY 2020 (reported)

FY 2020 (pro-forma*)

FY 2019 (reported) % Movement

Revenue 4,304.8 4,304.8 4,332.4 (1%)

Gross profit 741.6 736.4 687.7 7%

Gross margin % 17.2% 17.1% 15.9%

Operating costs (582.9) (612.9) (600.9) 2%

Operating cost margin % 13.5% 14.2% 13.9%

EBITDA 158.7 123.5 86.8 42%

EBITDA margin % 3.7% 2.9% 2.0%

Depreciation & amortisation (76.1) (45.5) (38.4) 18%

Operating profit 82.6 78.0 48.4 61%

Operating profit margin % 1.9% 1.8% 1.1%

Net finance costs (25.9) (21.3) (22.6) (6%)

Profit before tax 58.5 58.5 24.2 142%

Underlying EPS (US cents) 9.9 9.9 6.6 50%

Datatec GroupPRO FORMA FINANCIAL PERFORMANCE (EXCLUDING ADOPTION OF IFRS 16)

* Excluding the impact of adopting IFRS 16 on the FY20 results

Page 12: DATATEC GROUP AUDITED RESULTS · Gross profit 441.2 410.1 8% Gross margin % 25.9% 23.6% Operating costs (317.3) (316.7) 0% Operating cost margin % 18.7% 18.2% EBITDA 123.9 93.4 33%

© Datatec 2020

Results – year ended February 2020

DATATEC GROUP© Datatec 2020 Strategic updateOverview Logicalis Group Westcon International Management

Consulting Outlook

Increased revenue contribution from MEA

Larger GP contribution from Latin America

15%

22%

38%

18%

7%10%

14%

46%

20%

10%

16%

19%

40%

19%6%9%

15%

48%

20%

8%

Datatec Group 12

REVENUE & GROSS PROFIT % CONTRIBUTION BY GEOGRAPHY

Revenue contribution by geography Gross profit contribution by geography

North AmericaLatin AmericaEuropeAsia-PacificMEA

FY 2019

FY 2020 FY 2020

FY 2019

Page 13: DATATEC GROUP AUDITED RESULTS · Gross profit 441.2 410.1 8% Gross margin % 25.9% 23.6% Operating costs (317.3) (316.7) 0% Operating cost margin % 18.7% 18.2% EBITDA 123.9 93.4 33%

© Datatec 2020

Results – year ended February 2020

DATATEC GROUP© Datatec 2020 Strategic updateOverview Logicalis Group Westcon International Management

Consulting Outlook

Datatec Group 13

BALANCE SHEET SUMMARY

US$m FY 2020 FY 2019

Assets 2,596.5 2,722.3Non-current assets

Goodwill 241.4 234.6

Acquired intangible assets & software 30.0 37.6

Other non-current assets 241.2 165.6

Current assets 2,083.9 2,284.5

Equity & Liabilities 2,596.5 2,722.3Shareholders’ funds 572.3 648.9

Non-controlling interests 70.8 63.3

Long-term liabilities 185.5 99.5

Amounts due to vendors 5.5 2.3

Current liabilities 1,762.4 1,908.3

Net debt (139.9) (100.8)

Strong operating cash generation as a result of working capital

improvements

Reduction in shareholders funds due to currency translation and share

repurchases

Page 14: DATATEC GROUP AUDITED RESULTS · Gross profit 441.2 410.1 8% Gross margin % 25.9% 23.6% Operating costs (317.3) (316.7) 0% Operating cost margin % 18.7% 18.2% EBITDA 123.9 93.4 33%

© Datatec 2020

Results – year ended February 2020

DATATEC GROUP© Datatec 2020 Strategic updateOverview Logicalis Group Westcon International Management

Consulting Outlook

Right of use assets take on balance of

$95 million

Net debt increased by $85 million at

29 February 2020 as a result

Reduction in Westcon International and Logicalis net debt

14

US$m FY 2020 (reported)

FY 2020 (pro-forma*)

FY 2019 (reported)

Assets 2,596.5 2,517.6 2,722.3Non-current assets

Goodwill 241.4 241.4 234.6

Acquired intangible assets & software 30.0 30.0 37.6

Property, plant & equipment & right-of-use assets 127.3 47.5 60.3

Other non-current assets 113.9 113.9 105.3

Current assets 2,083.9 2,084.8 2,284.5

Equity & Liabilities 2,596.5 2,517.6 2,722.3Shareholders’ funds 572.3 572.3 648.9

Non-controlling interests 70.8 70.8 63.3

Long-term liabilities 71.7 71.7 68.0

Interest-bearing liabilities & leases 223.3 138.5 141.1

Amounts due to vendors 5.5 5.5 2.3

Other current liabilities 1,652.9 1,658.8 1,798.7

Net debt (139.9) (55.1) (100.8)

Datatec GroupPRO FORMA BALANCE SHEET SUMMARY (EXCLUDING ADOPTION OF IFRS 16)

* Excluding the impact of adopting IFRS 16 on the FY20 results

Page 15: DATATEC GROUP AUDITED RESULTS · Gross profit 441.2 410.1 8% Gross margin % 25.9% 23.6% Operating costs (317.3) (316.7) 0% Operating cost margin % 18.7% 18.2% EBITDA 123.9 93.4 33%

© Datatec 2020

Results – year ended February 2020

DATATEC GROUP© Datatec 2020 Strategic updateOverview Logicalis Group Westcon International Management

Consulting Outlook

Datatec Group 15

CASH FLOW

US$m FY 2020 FY 2019

EBITDA 158.7 86.8Working capital changes 57.0 (21.2)Other working capital changes 0.2 1.3Other movements (0.3) 2.1

Cash generated from operations 215.6 69.0Net finance costs paid (31.0) (22.4)Taxation paid (37.0) (38.6)

Net cash inflow from operating activities 147.6 8.0Net cash outflow for acquisitions (9.3) (25.4)Net cash outflow from other investing activities (21.7) (33.8)Dividend paid to shareholders (12.2) -Share repurchases (44.3) (43.9)Net cash inflow from disposal of discontinued operations 14.0 -Net cash outflow from other financing activities (34.2) (10.7)

Increase/(decrease) in cash & cash equivalents 39.9 (105.8)Cash & cash equivalents at beginning of year 40.4 161.3Translation difference on cash & cash equivalents 3.1 (15.1)

Cash & cash equivalents at end of period 83.4 40.4

Very strong working capital management

Significant improvement in operating cash flows

$57m cash returned to shareholders through share repurchases and dividends

Page 16: DATATEC GROUP AUDITED RESULTS · Gross profit 441.2 410.1 8% Gross margin % 25.9% 23.6% Operating costs (317.3) (316.7) 0% Operating cost margin % 18.7% 18.2% EBITDA 123.9 93.4 33%

Operational Review

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Logicalis Group

Page 18: DATATEC GROUP AUDITED RESULTS · Gross profit 441.2 410.1 8% Gross margin % 25.9% 23.6% Operating costs (317.3) (316.7) 0% Operating cost margin % 18.7% 18.2% EBITDA 123.9 93.4 33%

© Datatec 2020

Results – year ended February 2020

LOGICALIS GROUP© Datatec 2020 Strategic update Datatec GroupOverview Westcon International Management

Consulting Outlook

Logicalis GroupFINANCIAL PERFORMANCE

US$m FY 2020 FY 2019 % Movement

Revenue 1,700.4 1,741.1 (2%)

Gross profit 441.2 410.1 8%

Gross margin % 25.9% 23.6%

Operating costs (317.3) (316.7) 0%

Operating cost margin % 18.7% 18.2%

EBITDA 123.9 93.4 33%

EBITDA margin % 7.3% 5.4%

Operating profit 72.3 65.9 10%

Operating profit margin % 4.3% 3.8%

18

Constant currency revenues up 4%

Gross margin improvement driven by business mix and $14m Brazil tax

credit

Operating costs increase largely due to acquisitions

Significantly improved EBITDA and operating margins

Page 19: DATATEC GROUP AUDITED RESULTS · Gross profit 441.2 410.1 8% Gross margin % 25.9% 23.6% Operating costs (317.3) (316.7) 0% Operating cost margin % 18.7% 18.2% EBITDA 123.9 93.4 33%

© Datatec 2020

Results – year ended February 2020

LOGICALIS GROUP© Datatec 2020 Strategic update Datatec GroupOverview Westcon International Management

Consulting Outlook

Logicalis GroupPRO FORMA FINANCIAL PERFORMANCE (EXCLUDING ADOPTION OF IFRS 16)

US$m FY 2020 (reported)

FY 2020(pro-forma*)

FY 2019 (reported) % Movement

Revenue 1,700.4 1,700.4 1,741.1 (2%)

Gross profit 441.2 438.3 410.1 7%

Gross margin % 25.9% 25.8% 23.6%

Operating costs (317.3) (334.4) (316.7) 6%

Operating cost margin % 18.7% 19.7% 18.2%

EBITDA 123.9 103.9 93.4 11%

EBITDA margin % 7.3% 6.1% 5.4%

Depreciation & amortisation (51.6) (34.6) (27.5) 26%

Operating profit 72.3 69.3 65.9 5%

Operating profit margin % 4.3% 4.1% 3.8%

Net finance costs (14.1) (11.7) (16.8) (30%)

Profit before tax 58.7 58.1 49.6 17%

* Excluding the impact of adopting IFRS 16 on the FY20 results

FY20 EBITDA includes $20 million positive impact from

IFRS 16

Negligible impact on PBT

19

Page 20: DATATEC GROUP AUDITED RESULTS · Gross profit 441.2 410.1 8% Gross margin % 25.9% 23.6% Operating costs (317.3) (316.7) 0% Operating cost margin % 18.7% 18.2% EBITDA 123.9 93.4 33%

© Datatec 2020

Results – year ended February 2020

LOGICALIS GROUP© Datatec 2020 Strategic update Datatec GroupOverview Westcon International Management

Consulting Outlook

25%

37%

25%

13%

25%

36%

24%

15%

23%

37%

26%

14% 27%

32%

26%

15%

FY 2019

Logicalis GroupREVENUE & GROSS PROFIT % CONTRIBUTION BY GEOGRAPHY

Revenue contribution by geography Gross profit contribution by geography

North AmericaLatin AmericaEMEAAsia-Pacific

20

FY 2020 FY 2020

FY 2019

Page 21: DATATEC GROUP AUDITED RESULTS · Gross profit 441.2 410.1 8% Gross margin % 25.9% 23.6% Operating costs (317.3) (316.7) 0% Operating cost margin % 18.7% 18.2% EBITDA 123.9 93.4 33%

© Datatec 2020

Results – year ended February 2020

LOGICALIS GROUP© Datatec 2020 Strategic update Datatec GroupOverview Westcon International Management

Consulting Outlook

52%

10%

3%

6%

4%

2%

23%

59%

17%

24%

62%16%

22%

57%

9%3%

5%3%3%

20%

Product revenue by vendor

Logicalis GroupREVENUE BY SEGMENT & PRODUCT REVENUE BY VENDOR

Revenue by segment

ProductProfessional servicesMaintenance & managed services

21

CiscoIBMHPEDell, EMC, VMwareNetAppOracleOther

FY 2019

FY 2020

FY 2019

FY 2020

Page 22: DATATEC GROUP AUDITED RESULTS · Gross profit 441.2 410.1 8% Gross margin % 25.9% 23.6% Operating costs (317.3) (316.7) 0% Operating cost margin % 18.7% 18.2% EBITDA 123.9 93.4 33%

© Datatec 2020

Results – year ended February 2020

LOGICALIS GROUP© Datatec 2020 Strategic update Datatec GroupOverview Westcon International Management

Consulting Outlook

Logicalis GroupGROSS PROFIT & EBITDA BY GEOGRAPHY

Gross profit EBITDAFY 2019FY 2020

112133

10560

410

109

165

10859

441

North America Latin America EMEA Asia-Pacific Total

22

56

820

(13)

93

25

66

22 22

(11)

124

NorthAmerica

LatinAmerica

EMEA Asia-Pacific Centralcosts

Total

US$m

22

US$m

Page 23: DATATEC GROUP AUDITED RESULTS · Gross profit 441.2 410.1 8% Gross margin % 25.9% 23.6% Operating costs (317.3) (316.7) 0% Operating cost margin % 18.7% 18.2% EBITDA 123.9 93.4 33%

© Datatec 2020

Results – year ended February 2020

LOGICALIS GROUP© Datatec 2020 Strategic update Datatec GroupOverview Westcon International Management

Consulting Outlook

Logicalis GroupWORKING CAPITAL

US$m FY 2020 FY 2019

Deferred revenue (100.7) (98.3)

Inventory 78.7 92.3

Inventory days (excluding spares stock) 17 25

Accounts receivable 403.2 478.3

DSO (days) 49 65

Other receivables, prepayments & contract assets 275.8 268.7

Accounts payable (256.2) (336.7)

DPO (days) 70 83

Net working capital 225.7 233.9

Net debt (156.7) (109.2)

23

Inventory and AP reductions due to phasing on large multi-year Latam deal

DSO improvement linked to reduced AR in Brazil

Increased net debt mainly due to IFRS16

Page 24: DATATEC GROUP AUDITED RESULTS · Gross profit 441.2 410.1 8% Gross margin % 25.9% 23.6% Operating costs (317.3) (316.7) 0% Operating cost margin % 18.7% 18.2% EBITDA 123.9 93.4 33%

Results – year ended February 2020

LOGICALIS GROUPStrategic update Datatec GroupOverview Westcon International Management

Consulting Outlook© Datatec 2020

Logicalis GroupCOVID-19 & CURRENT TRADING

24

Action plans created to respond to various scenarios including cost

reduction initiatives

Increased investment in critical remote working technologies

Order intake for Q1 FY21 similar to Q1 FY20, but revenues slightly lower

Strong cash collections so far in FY21 Health & wellbeing of employees a core focus, most employees successfully working remotely

Page 25: DATATEC GROUP AUDITED RESULTS · Gross profit 441.2 410.1 8% Gross margin % 25.9% 23.6% Operating costs (317.3) (316.7) 0% Operating cost margin % 18.7% 18.2% EBITDA 123.9 93.4 33%

Results – year ended February 2020

LOGICALIS GROUP© Datatec 2020 Strategic update Datatec GroupOverview Westcon International Management

Consulting Outlook

Logicalis GroupOUTLOOK

25

Focus on costs, balance sheet and liquidity

Acceleration in customer digital transformation and our skills

investment for new technologies

Continued development of capabilities within cloud services

Economic uncertainty and currency volatility expected to

continue

Page 26: DATATEC GROUP AUDITED RESULTS · Gross profit 441.2 410.1 8% Gross margin % 25.9% 23.6% Operating costs (317.3) (316.7) 0% Operating cost margin % 18.7% 18.2% EBITDA 123.9 93.4 33%

Westcon International

Page 27: DATATEC GROUP AUDITED RESULTS · Gross profit 441.2 410.1 8% Gross margin % 25.9% 23.6% Operating costs (317.3) (316.7) 0% Operating cost margin % 18.7% 18.2% EBITDA 123.9 93.4 33%

© Datatec 2020

Results – year ended February 2020

WESTCON INTERNATIONAL© Datatec 2020 Strategic update Datatec GroupOverview Logicalis Group Management

Consulting Outlook

Westcon International 27

FINANCIAL PERFORMANCE

US$m FY 2020 FY 2019 % Movement

Revenue 2,544.6 2,544.8 0%

Gross profit 275.7 260.4 6%

Gross margin % 10.8% 10.2%

Operating costs (235.7) (254.8) (7%)

Operating cost margin % 9.3% 10.0%

EBITDA 40.0 5.6 614%

EBITDA margin % 1.6% 0.2%

Operating profit/(loss) 19.0 (4.2) 552%

Operating profit/(loss) margin % 0.7% (0.2%)

Flat revenues with significant gross margin expansion

Strong operating leverage

FY19 EBITDA included non-recurring $15m transitional services benefit

Significantly improved operating profit

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© Datatec 2020

Results – year ended February 2020

WESTCON INTERNATIONAL© Datatec 2020 Strategic update Datatec GroupOverview Logicalis Group Management

Consulting Outlook

Westcon International 28

US$m FY 2020 (reported)

FY 2020(pro-forma*)

FY 2019 (reported) % Movement

Revenue 2,544.6 2,544.6 2,544.8 0%

Gross profit 275.7 273.3 260.4 5%

Gross margin % 10.8% 10.7% 10.2%

Operating costs (235.7) (246.3) (254.8) (3%)

Operating cost margin % 9.3% 9.7% 10.0%

EBITDA 40.0 27.0 5.6 382%

EBITDA margin % 1.6% 1.1% 0.2%

Depreciation & amortisation (21.0) (9.4) (9.8) (4%)

Operating profit/(loss) 19.0 17.6 (4.2) 519%

Operating profit/(loss) margin % 0.7% 0.7% (0.2%)

Net finance costs (13.6) (11.8) (12.2) (3%)

Profit/(loss) before tax 6.3 6.7 (18.9)

PRO FORMA FINANCIAL PERFORMANCE (EXCLUDING ADOPTION OF IFRS 16)

* Excluding the impact of adopting IFRS 16 on the FY20 results

FY20 EBITDA includes $13m positive impact from IFRS16

Depreciation and finance costs increased

Negligible IFRS16 impact on PBT

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© Datatec 2020

Results – year ended February 2020

WESTCON INTERNATIONAL© Datatec 2020 Strategic update Datatec GroupOverview Logicalis Group Management

Consulting Outlook

59%

26%

15%

60%

24%

16%

64%23%

13%

61%26%

13%

Revenue contribution by geography

Westcon InternationalREVENUE & GROSS PROFIT % CONTRIBUTION BY GEOGRAPHY

Gross profit contribution by geography

EuropeAsia-PacificMEA

29

FY 2019

FY 2020 FY 2020

FY 2019

Page 30: DATATEC GROUP AUDITED RESULTS · Gross profit 441.2 410.1 8% Gross margin % 25.9% 23.6% Operating costs (317.3) (316.7) 0% Operating cost margin % 18.7% 18.2% EBITDA 123.9 93.4 33%

© Datatec 2020

Results – year ended February 2020

WESTCON INTERNATIONAL© Datatec 2020 Strategic update Datatec GroupOverview Logicalis Group Management

Consulting Outlook

32%

24%

27%

17%

54%

28%

18%

49%

51%

53%27%

20%31%

24%

28%

17%

49%51%

Revenue by business unit

Westcon InternationalREVENUE % BY BUSINESS UNIT, CUSTOMER & TECHNOLOGY CATEGORY

Product revenue by customer

ComstorWestcon

ResellerSystem integratorService provider

Product revenue by technology category

30

FY 2019

FY 2020 FY 2020

FY 2019

FY 2020

FY 2019

SecurityUnified communicationsNetworkingData centre & other

Page 31: DATATEC GROUP AUDITED RESULTS · Gross profit 441.2 410.1 8% Gross margin % 25.9% 23.6% Operating costs (317.3) (316.7) 0% Operating cost margin % 18.7% 18.2% EBITDA 123.9 93.4 33%

© Datatec 2020

Results – year ended February 2020

WESTCON INTERNATIONAL© Datatec 2020 Strategic update Datatec GroupOverview Logicalis Group Management

Consulting Outlook

557 578 612 591 629 636

573 650 640

596 688 657

US$mFY 2018^ FY 2020

Westcon International 31

HISTORICAL QUARTERLY SALES

FY 2019

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

^ Continuing operations

Qtr 3 Qtr 4

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© Datatec 2020

Results – year ended February 2020

WESTCON INTERNATIONAL© Datatec 2020 Strategic update Datatec GroupOverview Logicalis Group Management

Consulting Outlook

Gross profit

Westcon InternationalGROSS PROFIT & EBITDA BY GEOGRAPHY

EBITDAFY 2019FY 2020

160

66

34

260

164

71

41

276

Europe Asia-Pacific MEA Total

1811 5

(28)

6

42

189

(29)

40

Europe Asia-Pacific MEA Central Costs* Total

US$m

* $15 million transitional services costs for FY 2019 accrued against profit on disposal of discontinued operations in FY 2018

32

US$m

Page 33: DATATEC GROUP AUDITED RESULTS · Gross profit 441.2 410.1 8% Gross margin % 25.9% 23.6% Operating costs (317.3) (316.7) 0% Operating cost margin % 18.7% 18.2% EBITDA 123.9 93.4 33%

© Datatec 2020

Results – year ended February 2020

WESTCON INTERNATIONAL© Datatec 2020

Management ConsultingStrategic update Datatec GroupOverview Logicalis Group Outlook

US$m Continuing Central Costs

FY17 Actual 63

FY18 Actual* 61

FY19 Actual** 43

FY20 Published Target 33

Westcon International 33

CENTRAL COSTS

* $15m (transitional services costs) reallocated to profit from discontinued operations in FY18, reducing the reported amount to $46m. Includes restructuring costs.** $15m (transitional services costs) accrued against profit from discontinued operations in FY18, reducing the reported amount to $28m. Includes restructuring costs.

FY 2020 Actual 29

Central costs continue to decline

FY20 central costs below target levels

Page 34: DATATEC GROUP AUDITED RESULTS · Gross profit 441.2 410.1 8% Gross margin % 25.9% 23.6% Operating costs (317.3) (316.7) 0% Operating cost margin % 18.7% 18.2% EBITDA 123.9 93.4 33%

© Datatec 2020

Results – year ended February 2020

WESTCON INTERNATIONAL© Datatec 2020 Strategic update Datatec GroupOverview Logicalis Group Management

Consulting Outlook

US$m FY 2020 FY 2019

Accounts receivable 695.1 768.9

DSO (days) 67 71

Inventory 174.6 240.0

Inventory turns 11.0x 10.0x

Accounts payable (670.2) (717.3)

DPO (days) 78 79

Net working capital 199.5 291.6

NWC (days) 22 28

Current ratio 1.2 1.1

Net debt (48.7) (109.5)

Westcon InternationalWORKING CAPITAL

34

Improved DSO and inventory turns, 6 day improvement in NWC days

Significantly improved operating cash flows

FY20 net debt includes $31.3m of debt associated to IFRS16 adoption

Page 35: DATATEC GROUP AUDITED RESULTS · Gross profit 441.2 410.1 8% Gross margin % 25.9% 23.6% Operating costs (317.3) (316.7) 0% Operating cost margin % 18.7% 18.2% EBITDA 123.9 93.4 33%

Management Consulting

Results – year ended February 2020

WESTCON INTERNATIONAL© Datatec 2020 Strategic update Datatec GroupOverview Logicalis Group Outlook

Westcon InternationalCOVID-19 & CURRENT TRADING

35

Advanced systems and business automation facilitated seamless shift to

remote working

Demand for: cloud computing, remote access solutions, virtualisation, security,

unified communications

Revenues and order intake for Q1 FY21 similar to Q1 FY20

Cash collections to date in line with past performance

Limited delays and disruption in supply chains

Page 36: DATATEC GROUP AUDITED RESULTS · Gross profit 441.2 410.1 8% Gross margin % 25.9% 23.6% Operating costs (317.3) (316.7) 0% Operating cost margin % 18.7% 18.2% EBITDA 123.9 93.4 33%

Results – year ended February 2020

WESTCON INTERNATIONALStrategic update Datatec GroupOverview Logicalis Group Management

Consulting Outlook© Datatec 2020

Westcon InternationalOUTLOOK

36

Focus on balance sheet and working capital management

Increased demand for remote access computing expected

Economic uncertainty and continued currency volatility

Continued optimisation through our digital platform investments

Page 37: DATATEC GROUP AUDITED RESULTS · Gross profit 441.2 410.1 8% Gross margin % 25.9% 23.6% Operating costs (317.3) (316.7) 0% Operating cost margin % 18.7% 18.2% EBITDA 123.9 93.4 33%

Analysys Mason Consulting

Page 38: DATATEC GROUP AUDITED RESULTS · Gross profit 441.2 410.1 8% Gross margin % 25.9% 23.6% Operating costs (317.3) (316.7) 0% Operating cost margin % 18.7% 18.2% EBITDA 123.9 93.4 33%

© Datatec 2020

Results – year ended February 2020

MANAGEMENT CONSULTING© Datatec 2020 Strategic update Datatec Group Logicalis Group Westcon InternationalOverview Outlook

Analysys Mason 38

OVERVIEW

Headquartered in London, 250 professionals worldwide

Presence across Europe, USA, Middle East and Asia

TMT strategy consulting and advisory with research arm

Main market drivers:Significant build up in 5G momentumNew ultra broadband optical networksConflation of cloud and telecoms

Page 39: DATATEC GROUP AUDITED RESULTS · Gross profit 441.2 410.1 8% Gross margin % 25.9% 23.6% Operating costs (317.3) (316.7) 0% Operating cost margin % 18.7% 18.2% EBITDA 123.9 93.4 33%

© Datatec 2020

Results – year ended February 2020

MANAGEMENT CONSULTING© Datatec 2020 Strategic update Datatec Group Logicalis Group Westcon InternationalOverview Outlook

Analysys Mason 39

FINANCIAL PERFORMANCE

US$m FY 2020 FY 2019 % Movement

Revenue 58.7 45.7 28%

Gross profit 23.8 16.4 45%

Gross margin % 40.5% 35.9%

Operating costs (14.4) (13.6) 6%

Operating cost margin % 24.5% 29.8%

EBITDA 9.4 2.8 236%

EBITDA % 16.0% 6.1%

Operating profit 6.1 1.7 259%

Operating profit % 10.4% 3.7%

Record financial performance

Significantly improved profit margins

Page 40: DATATEC GROUP AUDITED RESULTS · Gross profit 441.2 410.1 8% Gross margin % 25.9% 23.6% Operating costs (317.3) (316.7) 0% Operating cost margin % 18.7% 18.2% EBITDA 123.9 93.4 33%

Prospects & Outlook

Page 41: DATATEC GROUP AUDITED RESULTS · Gross profit 441.2 410.1 8% Gross margin % 25.9% 23.6% Operating costs (317.3) (316.7) 0% Operating cost margin % 18.7% 18.2% EBITDA 123.9 93.4 33%

Results – year ended February 2020

OUTLOOK© Datatec 2020 Management ConsultingStrategic update Datatec Group Logicalis Group Westcon InternationalOverview

Datatec GroupPROSPECTS & OUTLOOK

41

Global economic uncertainty with currency volatility to persist

Elevated demand for the Group’s technology solutions

Cash, balance sheet and operating cost focus

Balancing near term COVID-19 impact with anticipated recovery