Our value creation business model

The Group has a decentralised business model which empowers its divisional management teams to make operational decisions that are best suited to their individual operating needs but within a strategic operating and financial framework set by the Group to ensure sustained value for all stakeholders.

WHAT MAKES US DIFFERENT

Datatec offers shareholders an opportunity to invest in a leading international ICT group that is uniquely positioned to take advantage of best-in-class solutions in information security, networking, unified communications, cloud and data centre technologies.

OUR INVESTMENT PROPOSITION

  • GLOBAL PRESENCE – located in over 50 countries supported by close to 11 000 skilled employees and experienced multinational management
  • DIVERSITY – related but operationally dissimilar businesses diversify income and provide unique growth opportunities
  • FOCUS – on high-value, fast growing sectors of the ICT market
  • OPERATE – at multiple points of the ICT supply chain
  • STRATEGIC RELATIONSHIPS – well positioned in strong technology areas and managed services with leading technology vendors and quality customer profile

KEY RESOURCES

FINANCIAL

EQUITY: US$572 million (attributable to equity holders of the parent)

DEBT: US$223 million interest-bearing debt

HUMAN

  • 10 924 employees
  • Employees’ time, skills and knowledge

SOCIAL AND RELATIONSHIP

  • Stakeholder relationships
  • Strong compliance and governance culture
  • Board diversity and succession planning

INTELLECTUAL

  • Technical expertise
  • Strategic partnerships

NATURAL

  • Group-wide power-saving and recycling initiatives

MANUFACTURED

  • Data centres
  • Warehouses (distribution centres)

KEY RELATIONSHIPS

KEY PARTNERS

  • Cisco

KEY RELATIONSHIPS

  • Customers
  • Employees
  • Shareholders
  • Vendors
KEY REVENUE SEGMENTS

DIVISION

  • Westcon International
  • Logicalis

GEOGRAPHIC

  • Europe
  • Asia-Pacific
  • Latin America
KEY REVENUE DRIVERS
  • Volumes
  • Exchange rates (in relation to US Dollar)
    • Material currencies:
      • Australian Dollar
      • British Pound
      • Euro
      • Singapore Dollar
      • South African Rand
      • Brazilian Real

 

OUR ACTIVITIES

The Group’s offering spans various sectors of the ICT market


HOW WE CREATE VALUE

We are improving shareholder returns by optimising our business for the current environment which will include cost and liquidity management.

We continue to pursue organic and acquisition expansion activities.

  • Provides wide geographical exposure

  • Improving operating profitability

  • Improving revenues and profit margins


WHAT IMPACTS OUR ABILITY TO CREATE VALUE
  • Fluctuating exchange rates
  • Global macroeconomic and COVID-19 uncertainty
  • Cash generation ability
  • Acquisition opportunities
KEY OUTCOMES FOR STAKEHOLDERS

SHAREHOLDERS

  • Improved shareholder returns and value
    • 9.9 US cents underlying* earnings per share (“uEPS”)
    • Strong balance sheet
    • 288 US cents net asset value per share

FINANCIAL INSTITUTIONS AND PROVIDERS OF FINANCING

  • US$41 million in interest to providers of financing

EMPLOYEES

  • Fair remuneration
    • US$649 million in salaries and benefits

CUSTOMERS

  • Strong customer relationships
    • Positive feedback from customer satisfaction surveys

VENDORS (SUPPLIERS)

  • Strong vendor relationships
    • Positive feedback from vendor satisfaction surveys

FOUNDATION BENEFICIARIES

  • Improved education and opportunities created for less fortunate
    • R8 million spent on corporate social investment (“CSI”) activities at Datatec head office

GOVERNMENTS AND REGULATORS

  • Compliance with regulatory requirements
    • US$32 million directly distributed to governments

ENVIRONMENT

  • Reduced carbon footprint
  • Energy savings
  • Reduced waste

GOVERNANCE AND ETHICS

Datatec’s business model is underpinned by strong governance and ethics. Datatec is committed to maintaining the highest standards of ethics and business conduct and to being ethical, honest, socially responsible corporate citizens.

* Underlying earnings exclude impairments 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.