Our stakeholders
Datatec aims to create value for all stakeholders in the short, medium and long term. Understanding the needs and expectations of our stakeholders is fundamental to achieving this objective.
Datatec has identified seven key stakeholder groups who may impact or be impacted by its business strategy, activities and policies. We rely on these stakeholder groups to create value. Below, we have disclosed the key issues raised by each and our response in addressing these issues. The strategic objectives linked to the key outcomes are illustrated by our strategic objectives icons.
Our ability to create value is interdependent on the quality of our relationships with our key stakeholders, all of which are regarded as strong.
1. Shareholders
Key issues raised
- Remuneration policy
- Share-based payment schemes
- Value realisation
- Sustainable returns
- Governance
- Risk management
Our response
- Consulted extensively with shareholders on environmental, social and governance ("ESG") and remuneration matters
- Implemented numerous initiatives to improve operational efficiencies, cut costs and enhance profitability
- Investor roadshows and meetings with analysts
Key outcomes
- Refined remuneration policy
- EBITDA US$154.5 million (adjusted EBITDA US$177.0 million)
- 18.7 US cents uEPS
- Strong balance sheet
- Stringent focus on application of good governance principles
- Risk management focus in ARCC
- Global Responsible Business strategy has been developed and rolled out
2. Financial institutions and providers of financing
Key issues raised
- Financial health
- Liquidity
- Ratios
- Cash generation
- Risk management
- Growth prospects
- Compliance
- Covenant adherence
Our response
- Two significant refinancing arrangements in Westcon International
- Corporate banking facilities in Logicalis
Key outcomes
- Net debt has increased to $130.1 million
- US$34 million in interest to providers of financing
- Improved interest cover (includes IFRS 16 interest)
- Reduced operating cash flows
- Two strategic acquisitions made in Logicalis
- Enhanced liquidity
3. Employees
Key issues raised
- Ongoing training and personal development
- Non-discriminatory work environment
- Nature, variety and breadth of work
- Performance management
- Incentives and rewards
Our response
- Decentralised engagement programmes - operation specific
- Education, training and development programmes - operation specific
- Employee performance assessments
- Group and regional tracking of employee turnover rate and drivers
- Refreshed share incentive schemes
Key outcomes
- US$705 million in staff salaries and benefits
- US$3.9 million cash paid for share-based payments
- Commitment to diversity and inclusion
- Ongoing employee development
- Long-term and short-term employee incentives
4. Customers
Key issues raised
- Effectiveness of processing and transacting systems
- Value for money and quality of service
- Premium (best-in-class) vendors
- Vendor profile (broad offering)
- High degree of technical competence
- Diverse product and service offering across the Group
- Innovation and early adaptation to emerging trends
Our response
- Implemented digital enablement technology tools to improve customer experience and speed to market
- Customer engagement programmes to ensure customer needs and expectations are met
- Strong partnership approach to deliver best results
- Customer satisfaction surveys
- Vendor incubation accelerates access to emerging technologies
Key outcomes
- Positive feedback from satisfaction surveys
- Strong vendor offerings
- Improving software and services and mix - services revenue is 18% of total revenue and total software and services increased to 49%
5. Vendors
Key issues raised
- Alignment with vendor "approach to market" messaging
- Meeting vendor financial targets
- Accreditations (training)
- Quality of training programmes
- Maintaining technical edge in light of ongoing market evolution
- Scope for alignment and scale of operations
- Geographic reach
- Financial health
- Innovation and early adaptation to emerging trends
Our response
- Differentiated global relationship management strengthens partnerships
- Active participation at global vendor conferences
- Partner enablement programmes to drive global expansion, channel development and scale
- Global services capabilities
- Vendor satisfaction surveys
- Vendor audits and assessments
Key outcomes
- Positive feedback from satisfaction surveys
- Strong vendor relationships
- Numerous partnership awards won
- Extended partner reach
- Vendor incubation provides competitive advantage
- Contract renewals
6. Governments and regulators
Key issues raised
- Investment
- Employment
- Taxation
- Governance
- Compliance
- Impact on energy usage (IT centres)
- Import and customs controls
- Diversity
- Empowerment and transformation
- Data privacy
Our response
- Maintain sound governance policies and processes
- Regulatory returns/submissions made on time
- Complied with JSE Listings Requirements
- Tax compliance policy (UK)
- BBBEE certification for SA operations and maintained BBBEE ownership credentials
- Board policy on diversity
- Adhere to strict data protection policies and processes
Key outcomes
- Westcon SA BBBEE status - Level 1
- Logicalis SA BBBEE status - Level 2
- US$24 million directly distributed to governments
- Increased energy savings initiatives
- Environmental certification
- Diversity policies in place
7. Foundation beneficiaries
Key issues raised
- Development of education (specifically science, technology, engineering and mathematics) in previously disadvantaged communities
- Charitable and compassionate aid
Our response
- Partnerships with various organisations committed to improving education in under-resourced schools and communities
- Partnerships with non-profit organisations that provide professional development to teachers
- Partnerships with organisations that provide secondary school-level intervention programmes focused on improving results in mathematics, science and English
Key outcomes
- Invested R8.6 million in FY22
- Provided 2 500 individuals with access to computer technology
- Over 100 teachers directly benefiting from school-level intervention in mathematics and science
- Over 500 individuals benefiting from ICT skills training over a two-year period
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