DATATEC GROUP AUDITED RESULTS

ICT Solutions & Services Technology Distribution Management Consulting

DATATEC GROUPAUDITED RESULTS For the year ended 28 February 2021

Agenda Summary

– Overview– Current Trading FY21– Key Features

Financial Results Operational Review Prospects & Outlook

SummaryOverview, Current trading FY21 and Key features

© Datatec 2021

4Results – year ended February 2021

OVERVIEW Datatec Group Logicalis Group Westcon International Management Consulting Outlook

Datatec GroupFINANCIAL RESULTS SUMMARY

4

$4.1bFY 2021

$4.2bFY 2020^

Revenue

$690.5mFY 2021

$741.6mFY 2020

Gross profit

$141.0mFY 2021

$158.7mFY 2020

Adjusted EBITDA*

9.9 US¢FY 2020

13.6 US¢FY 2021

Underlying EPS

^ FY20 revenue restated* Excludes restructuring costs

0 ZAR¢FY 2020

100 ZAR¢FY 2021

Ordinary dividend per share

Results – year ended February 2021

© Datatec 2021 OVERVIEW Datatec Group Logicalis Group Westcon International Management Consulting Outlook

Datatec GroupOVERVIEW

5

Solidoperational execution in challenging environment Strong

demand for the technology products

and services we provide

Much improved liquidity

following refinancing of key

facilities

Cost control measures implemented

through restructuring

Significantly improved operating

cash generation

Software & services (including annuity)

continues to grow


© Datatec 2021 OVERVIEW Datatec Group Logicalis Group Westcon International Management Consulting Outlook

Datatec GroupCURRENT TRADING

6

Business mix and global presence well

diversified for a recovery

Trends of FY21 continuing into FY22

but pandemic outcome uncertain

Acceleration in digitisation has

structurally changed nature of business

Strong balance sheet to support growth and

new initiatives

Increased demand for software & services in networking, security

and cloud infrastructure

© Datatec 2021


OVERVIEW Datatec Group Logicalis Group Westcon International Management Consulting Outlook

Datatec GroupKEY FEATURES

7

Global footprint6 continents and over 50 countries

Long-standing trusted vendor-

partner relationships

Strong recurring customer

base20,000 telecoms,

enterprise and public sector customers

Core competence in

networking and cloud infrastructure

International brand

recognition across all divisions

Advancedinternal systems

and digital capabilities

Financial Results

© Datatec 2021


DATATEC GROUP Logicalis Group Westcon International Management

Consulting OutlookOverview

Datatec Group 9

FINANCIAL PERFORMANCE

US$m FY 2021 FY 2020 Restated^ % Movement

Revenue 4,109.5 4,214.4 (2%)Gross profit 690.5 741.6 (7%)Operating costs (571.9) (582.9) (2%)EBITDA 118.6 158.7 (25%)EBITDA margin % 2.9% 3.8%Adjusted EBITDA* 141.0 158.7 (11%)Adjusted EBITDA margin % 3.4% 3.8%Depreciation & amortisation (68.6) (76.1) (10%)Operating profit 50.0 82.6 (39%)Operating profit margin % 1.2% 2.0%Net finance costs (25.7) (25.9) (1%)Profit before tax 25.2 58.5 (57%)Underlying EPS (US cents) 13.6 9.9HEPS (US cents) 1.8 5.9

Margin enhancing prior year revenue and cost of sales restatement with no

change to gross profit

Operating costs includes $22m of one-off restructuring costs

Prior year EBITDA benefited from $14m Brazil tax credit

Prior year net finance costs benefited from $7m interest on the Brazil tax

credit

^ FY20 revenue restated* Excludes restructuring costs

© Datatec 2021




Datatec Group 10

FINANCIAL PERFORMANCE - SEGMENTAL

US$m

ICT Solutions and Services Technology Distribution Management Consulting

FY 2021 FY 2020 Restated^ FY 2021 FY 2020

Restated^ FY 2021 FY 2020

Revenue 1,449.5 1,681.5 2,585.7 2,473.1 73.2 58.7

Gross profit 367.5 441.2 291.0 275.7 31.0 23.8

Operating costs (285.6) (317.3) (246.2) (235.7) (20.8) (14.4)

EBITDA 81.9 123.9 44.8 40.0 10.2 9.4

EBITDA margin % 5.7% 7.4% 1.7% 1.6% 13.9% 16.0%

Adjusted EBITDA* 96.1 123.9 52.5 40.0 10.2 9.4

Adjusted EBITDA margin % 6.6% 7.4% 2.0% 1.6% 13.9% 16.0%

Operating profit 40.3 72.3 22.2 19.0 5.9 6.1

Operating profit margin % 2.8% 4.3% 0.9% 0.8% 8.1% 10.4%

^ FY20 revenue restated

© Datatec 2021




14%

15%

44%

20%

7%8%

11%

51%

21%

9%

15%

22%

38%

18%7%10%

14%

46%

20%

10%

Datatec Group 11

REVENUE & GROSS PROFIT % CONTRIBUTION BY GEOGRAPHY

Revenue contribution by geography Gross profit contribution by geography

North AmericaLatin AmericaEuropeAsia-PacificMEA

FY 2020^

FY 2021 FY 2021

FY 2020

Europe drives major part of revenues and contribution

Latin America has been the most challenged region


© Datatec 2021




53%

47%

60%

40%

Datatec Group 12

REVENUE ANALYSIS: HARDWARE VS SOFTWARE & SERVICES

Revenue by segment

HardwareSoftware & services (incl. annuity)

FY 2020^

FY 2021 Software and services have grown significantly

Working capital should structurally improve


Business is becoming less asset intensive

Hardware is expected to fall below 50% of revenue mix

© Datatec 2021




Datatec Group 13

BALANCE SHEET SUMMARY

US$m FY 2021 FY 2020

Assets 2,797.3 2,596.5Non-current assets

Goodwill 255.5 241.4Acquired intangible assets & software 33.9 30.0Other non-current assets 265.3 241.2

Current assets 2,242.6 2,083.9Equity & Liabilities 2,797.3 2,596.5Shareholders’ funds 583.2 572.3Non-controlling interests 57.5 70.8Long-term liabilities 172.2 185.5Amounts due to vendors 2.6 5.5Current liabilities 1,981.8 1,762.4Net debt (60.9) (139.9)Net cash/(debt) excluding lease liabilities 53.4 (10.4)

Working capital improvements driving better cash position

Significant reduction in net debt

New financing facilities in Westcon during H2 enhancing liquidity

© Datatec 2021




14Datatec GroupBALANCE SHEET SUMMARY - SEGMENTAL

US$m

ICT Solutions and Services Technology Distribution Management Consulting

FY 2021 FY 2020 FY 2021 FY 2020 FY 2021 FY 2020

Assets 1,296.8 1,303.1 1,336.1 1,155.6 82.7 61.3Non-current assets

Goodwill 230.8 222.6 - - 24.7 18.8Acquired intangible assets & software 27.1 24.3 2.2 3.9 4.6 1.8Other non-current assets 143.6 134.6 106.4 90.7 11.9 12.6

Current assets 895.3 921.6 1,227.5 1,061.0 41.5 28.1Liabilities 935.5 926.9 1,170.4 985.9 35.7 28.9Long-term liabilities 111.4 103.2 47.8 71.7 10.5 8.8Amounts due to vendors 2.6 4.3 - - - 1.2Current liabilities 821.5 819.4 1,122.6 914.2 25.2 18.9Net (debt)/cash (123.4) (156.7) (19.0) (48.7) 8.8 (2.3)Net cash/(debt) excluding lease liabilities (60.7) (67.7) 24.2 (17.4) 16.5 6.1

© Datatec 2021




Datatec Group 15

CASH FLOW

US$m FY 2021 FY 2020 Restated#

EBITDA 118.6 158.7Working capital changes 78.2 57.0Other working capital changes 1.7 0.2Other movements 35.8 (0.3)

Cash generated from operations 234.3 215.6Net finance costs paid (25.7) (31.0)Taxation paid (36.6) (37.0)

Net cash inflow from operating activities 172.0 147.6Net cash outflow for acquisitions (5.5) (9.3)Net cash outflow from other investing activities (28.7) (21.7)Dividend paid to shareholders - (12.2)Share repurchases - (44.3)Net cash inflow from disposal of discontinued operations - 14.0Net cash inflow/(outflow) from other financing activities 15.0 (66.3)

Increase in cash & cash equivalents 152.8 7.8Cash & cash equivalents at beginning of year 332.3 333.7Translation difference on cash & cash equivalents (6.3) (9.2)

Cash & cash equivalents at end of year 478.8 332.3

Improved operating cash flows

Prior year overdrafts restated from cash and cash equivalents to financing

activities

Improved cash position

# FY20 cash flow restated

Operational Review

Logicalis Group


LOGICALIS GROUP© Datatec 2021 Westcon International Management

Consulting OutlookOverview Datatec Group

Logicalis GroupHIGHLIGHTS

18

Resilient financial performance, despite 14% drop in revenues

(8% constant currency)

Reduced operating costs even with substantial restructuring costs

Reduction in net debt & improvedliquidity

Increasing annuity services in line with strategy

Hybrid office working for manyinternal functions

LOGICALIS GROUP© Datatec 2021


LOGICALIS GROUP Westcon International Management


Logicalis GroupREVENUE & GROSS PROFIT BY GEOGRAPHY

FY 2020FY 2021

19

Gross profit

109

165

10859

441

96 102 109

60

367

North America Latin America EMEA Asia-Pacific Total

US$mRevenue^

409

613

409 251

1,682

337 451 430

232

1,450

North America Latin America EMEA Asia-Pacific Total

US$m






Logicalis GroupEBITDA BY GEOGRAPHY

EBITDA

20

US$m

25

66

22 22

(11)

124

20 35

13 23

(9)

82

23 37

20 24

(8)

96

North America Latin America EMEA Asia-Pacific Central costs Total

FY 2020FY 2021FY 2021 Adjusted*

* Excludes restructuring costs

Adjusted EBITDA resilient in most regions except LATAM

FY20 included $14m tax credit in Brazil

Central costs reduced





40%

9%4%4%4%2%

37%

45%

13%

14%

28%

53%

9%13%

25%

50%

9%3%6%

4%2%

26%

Product revenue by vendor

Logicalis GroupREVENUE BY SEGMENT & PRODUCT REVENUE BY VENDOR

Revenue by segment

HardwareSoftwareProfessional servicesAnnuity services

21

CiscoIBMHPEDell, EMC, VMwareNetAppOracleOther

FY 2020^

FY 2021

FY 2020^

FY 2021






Logicalis GroupWORKING CAPITAL

22

49

17

70

52

11

82

DSO Inventory days DPO

Days

FY 2020FY 2021

403

79

256

344

58

277

Trade accountsreceivable

Inventory Trade accountspayable

US$m

DSO remained steady

DPO increase due to extended credit terms agreed with suppliers

Net working capital fell significantly by $104m


LOGICALIS GROUP© Datatec 2021 Westcon International Management


Logicalis GroupOUTLOOK

23

Acceleration in the use of digitaltechnologies to transform businesses

Cloud adoption is happening faster as remote computing escalates

Growth expected in major economies driven by Covid-19 stimulus

Continued volatility in emerging market exchange rates

Westcon International


© Datatec 2021 WESTCON

INTERNATIONAL Management Consulting OutlookOverview Datatec Group Logicalis Group

Westcon InternationalHIGHLIGHTS

25

Strong financial performance with revenue growth of 5% (4% constant currency)

Cost reduction benefits with remote working include lower travel and office-related

Structural shift to greater software mix and increasing recurring business

xxxSignificant growth in security with growing

portfolio of category leading vendors Improved liquidity due to strong cash collections,

reduced working capital and major refinancing

WESTCON INTERNATIONAL© Datatec 2021


Management Consulting OutlookOverview Datatec Group Logicalis Group

Revenue^

Westcon InternationalREVENUE & GROSS PROFIT BY GEOGRAPHY

FY 2020FY 2021

1,503

577393

2,473

1,608

609369

2,586

Europe Asia-Pacific MEA Total

US$m

26

Gross profit

164

71

41

276

178

7142

291

Europe Asia-Pacific MEA Total

US$m





Westcon InternationalEBITDA BY GEOGRAPHY

27

EBITDAUS$m

42

18 9

(29)

40 41 22

11

(29)

45 48

22 11

(28)

53

Europe Asia-Pacific MEA Central costs Total

FY 2020FY 2021FY 2021 Adjusted*

* Excludes restructuring costs

EBITDA increases 12% in FY 2021

Excluding restructuring expense EBITDA increases 31% with

improved results across all regions

Continued reduction in central costs




43%

57%

52%

29%

19%

54%28%

18%

49%51%

Revenue by business unit

Westcon InternationalREVENUE % BY BUSINESS UNIT, CUSTOMER & TECHNOLOGY CATEGORY

Product revenue by customer

ComstorWestcon

ResellerSystem integratorService provider

28

FY 2020^

FY 2021 FY 2021

FY 2020^





40%

22%

24%

14%

32%

24%

27%

17%

Westcon InternationalREVENUE % BY BUSINESS UNIT, CUSTOMER & TECHNOLOGY CATEGORY

Product revenue by technology category

SecurityUnified communicationsNetworkingData centre & other

29

FY 2021

FY 2020^


59%

3%

36%

2%

66%2%

29%

3%

Product revenue by segment

FY 2021

FY 2020^

HardwareResold maintenanceSoftwareServices




Westcon InternationalWORKING CAPITAL

30

67

11.0

78

65

12.7

76

DSO Inventory turns DPO

Days

FY 2020FY 2021

695

175

670 751

184

714

Trade accountsreceivable

Inventory Trade accountspayable

US$m

NWC days decrease a favourable 4 days to 18 due to improved DSO and Inventory

turns

Improved working capital metrics drives $29.7m or 61%

decrease in net debt




Westcon InternationalOUTLOOK

31

Expect benefits of better cash management and lower finance costs to continue

Operational efficiencies and scale in more markets are driving improved P&L

Return-to-the-office and hybrid-working dynamics expected to fuel demand

Growth in Security and Software Defined Networks is increasing Software & Services

Analysys Mason


MANAGEMENTCONSULTING© Datatec 2021 OutlookOverview Datatec Group Logicalis Group Westcon International

Analysys MasonHIGHLIGHTS

33

25% revenue growth and increased profitability

Strong performance from Europe Reduction in net debt and improved liquidity

Operational efficiencies and greater scale driving better P&L

Successful shift to remote working for most employees during pandemic

MANAGEMENT CONSULTING© Datatec 2021


OutlookOverview Datatec Group Logicalis Group Westcon International

Analysys MasonFINANCIAL PERFORMANCE

34

FY 2020FY 2021

59

24

9

73

31

10

Revenue Gross profit EBITDA

US$m

Strong revenue growth from acquisitions and organic

Improved gross margins, higher productivity and

reduction in travel

EBITDA growth impacted by IFRS 2 charges


MANAGEMENTCONSULTING© Datatec 2021 OutlookOverview Datatec Group Logicalis Group Westcon International

Analysys MasonOUTLOOK

35

Public and private networks undergoing a sustained period of heightened demand

Accelerating demand for Optical network and 5G expertise

Health and wellbeing of employees is a priority focus

Development of multi-geography key accounts to increase scale of business

Prospects & Outlook


OUTLOOK© Datatec 2021 Logicalis Group Westcon International Management ConsultingOverview Datatec Group

Datatec GroupPROSPECTS & OUTLOOK

37

Strong demand for the Group’s technology

solutions and services

Semiconductor shortage could impact supply chain

Most economies expected to rebound

Enhanced liquidity, stronger balance sheet and lower interest costs

DATATEC GROUP AUDITED RESULTS

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