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.

OUR INVESTMENT PROPOSITION

GLOBAL PRESENCE – located in over 50 countries supported by close to 10 000 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

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 collaboration, cloud and data centre technologies.

OUR ACTIVITIES

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

LOGICALIS
Integration and managed services Logicalis’ principal revenue stream is product sales

WESTCON
INTERNATIONAL
Technology distribution Westcon International’s principal revenue stream is product sales

MANAGEMENT
CONSULTING AND
FINANCIAL SERVICES
Specialist consulting and research offerings
Alternative financing expertise
Management Consulting and Financial Services’ principal revenue streams
are professional services

HOW WE CREATE VALUE

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

We continue to pursue organic and acquisition expansion activities.

Provides wide geographical exposure

Improving operating profitability

Improving revenues and profit

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
- 13.6 US cents underlying* earnings per share ("uEPS")
- Reduced net debt
- 293 US cents net asset value per share
- Improved liquidity
- Dividend declared

FINANCIAL INSTITUTIONS AND PROVIDERS OF FINANCING

US$28 million in interest to providers of financing

EMPLOYEES

Fair remuneration
- US$636 million in salaries and benefits
- Recognition of employees through performance rewards
More inclusive and diverse workplace

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
- R8.7 million spent on CSI activities at Datatec head office

GOVERNMENTS AND REGULATORS

Compliance with regulatory requirements
- US$29 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.