Our strategic progress

2019 DELIVERY

Strategic progress: DATATEC GROUP
ACHIEVED IN PROGRESS
  Continued share buy-backs     23.8 million shares repurchased
  12-month return to profitability in Westcon International     Significant improvement in EBITDA
  Improve accounts receivables and net working capital in Westcon International     Significant improvement in DSO
  Consolidate Logicalis’ position through organic and inorganic actions     Strong Logicalis performance; three acquisitions made in FY19 resulting in US$54 million revenue and US$4 million EBITDA
  Continue to look for optimum value realisation opportunities     Progress made in all divisions; continued focus in FY20
Strategic progress: LOGICALIS
ACHIEVED IN PROGRESS
  Continue to focus on improving the services and annuity revenue mix     Services and annuity revenue increased from 37% to 38% of revenue mix
  Focus on cost reduction activities in legacy areas of the business     Cost optimisation activities completed in parts of Europe and the US but will continue to be a focus area in FY20
  Continue the roll out of the common services platform to new countries as an enabler for further efficiencies     Common services platform was rolled out in several new countries
  Seek further acquisitions to boost market share in existing territories and to leverage Logicalis’ capabilities in emerging technologies     Acquired Clarotech in South Africa, Coasin Chile S.A. (“Coasin”) in Chile and Corporate Network Integration (Pty) Ltd (“CNI”) in Australia
Strategic progress: WESTCON INTERNATIONAL
ACHIEVED IN PROGRESS
  Focus on revenue growth, margin improvement and profitability     Revenue increased by 9.8%, gross margins increased from 9.8% to 10.2% and EBITDA increased by US$54 million
  Working capital normalisation and improving cash flow     Seven-day improvement in net working capital days; 17% reduction in net debt
  Africa transformation, transition from loss to profit     Africa profitable overall in FY19
  Leverage technology automation around SAP and customer-supplier tools     SAP and supporting applications fully operational and stable
  Reverse BPO to improve customer service and transaction execution     BPO reversal has been completed
  Shared services centres in SA and Philippines for EMEA and Asia-Pacific     Shared service centres in the Philippines and South Africa now in place
  Continued focus on Comstor-Cisco differentiation     Cisco business has grown by over 12%
  Expand security portfolio in emerging technologies     Security increased from 29% to 31% of revenue mix and continues to evolve
  Deployment of digital distribution technology – Cloud/aaS enabled ERP     Continued focus in FY20
  Reduce ongoing central costs to below 1% of gross revenue     Central costs 1.3% of gross revenue
Strategic progress: CONSULTING AND FINANCIAL SERVICES
ACHIEVED IN PROGRESS
  ANALYSYS MASON
  Improve scale     Expansion of business through acquisition of Access Market International Partners (“AMI Partners”)
  Grow research practice     Research practice expanded through acquisition of AMI Partners – Research revenue 22% of total revenue
  Customer diversified     Larger customer base than FY18
  ANALYSYS MASON
  Drive penetration and revenue growth     Decline in revenue; focus area in FY20
  Expand geographical coverage     Improved geographical mix
  Increase product efficiencies     Continued focus in FY20