Logicalis' value creation business model
Logicalis creates and maintains relevance for both customers and stakeholders by leveraging its collaborative culture and skills/ knowledge exchange to globally develop modern managed services, combined with local business innovation, agility and management to execute upon its strategy.
What makes Logicalis different
Global presence, local execution
Logicalis is a leading global managed services provider, serving 10 000 customers worldwide and with a physical presence in 27 countries
End-to-end capabilities
Logicalis offers unique consulting capabilities as well as managed services to implement and run cloud solutions end-to-end
Value-driven engagement
Logicalis’ repeatable model is focused on simplicity, speed and agility to help clients deliver core business value faster and with less risk
Key resources
Financial
- Net debt – US$151 million
- Working capital – US$192 million
Human
- Over 7 000 employees
- Employees’ time, skills, and knowledge
Social and relationship
- Customer relationships
- Vendor relationships
- Stakeholder relationships
Intellectual
- Technical expertise
- Sector experience
- Strategic partnerships
Natural
- Carbon footprint management
- Energy management
- Recycling initiatives
Manufactured
- Data centres
Activities
- Lifestyle services
- Extensive modern managed service portfolio
- Cloud solutions, including advisory and design
- Managed security and security advisory services
- Network infrastructure expertise
- Workplace and collaboration applications and virtual desktop infrastructure
- IoT solutions
- Enterprise data management, data analytics tools and consultancy
- Green IT solutions
Impact of activities on future availability of resources
- Improvements to EBITDA and working capital will reduce net debt over time
- Business activities have an impact on availability of natural resources, the impact of which is being managed through responsible business practices
Constraints on availability of resources
- Net debt facility limits. There is, however, adequate headroom at present and looking forward.
How Logicalis creates value
As “Architects of Change”, Logicalis helps businesses rethink their approach to digital transformation strategy to take a hybrid approach with agility, scalability, and innovation at the core, building resilient businesses for the future.
Logicalis provides a lifecycle services approach to navigate the intricacies of global business.
What impacts Logicalis’ ability to create value?
- Fluctuating exchange rates
- Global macroeconomic uncertainty
- Global semiconductor shortage
- Employee attrition
- Skills shortage in areas such as security
- Lead times for hardware
- Inflation
Key partners and relationships
Key partners
- Cisco
- Microsoft
Key relationships
- Customers
- Employees
Key revenue segments
Categories
- Annuity services
- Direct product sales
Strategic Vendors
- Cisco
- Microsoft
Geographic
- Latin America
- EMEA
- North America
- Asia-Pacific
Key revenue drivers
- Volumes
- Exchange rates, particularly in Latin America
- Multinational deals
Key outcomes for stakeholders
Shareholders
- Increased managed services and annuity revenue contribution
- Significant increase in backlog – US$400 million at year-end (FY21: US$206 million)
- Increased operating costs
- Increase in net debt
Financial institutions and debt funders
- US$21 million interest paid to debt providers
Employees
- Recognition of employees through performance rewards
- Investment in business and technical expertise for employees
- Focus on employee health and wellbeing
- Employee satisfaction and attrition
- More inclusive and diverse workplace
Customers
- Supply chain issues impacting customers
- Dedicated, committed long-term partnership delivering superior customer experience
Vendors (suppliers)
- Recognition by vendors through joint investment/co-development and partner award
- Committed and strategic long-term profitable vendor relationships
Corporate social responsibility
- Improved quality of life for local communities
Environment
- Measures are taken to try to reduce environmental impact as far as possible
- Energy savings and reduced carbon footprint
- Environmental certifications
Governments and regulators
- Compliance with regulatory requirements
- US$8 million in income taxes