Viewing: Logicalis International's business model / Next: Logicalis Latin America's business model

Logicalis International's business model

Logicalis International harnesses its collective technology expertise to help its clients build a blueprint for success, so they can deliver sustainable outcomes that matter. Its lifecycle services across cloud, connectivity, collaboration and security are designed to help optimise operations, reduce risk and empower employees.

What makes Logicalis International different?

  • Global technology service provider based in over 15 countries
  • Over 10 000 clients across a range of industry sectors
  • Logicalis International delivers next-generation digital managed services, to provide its clients with real-time visibility and actionable insights across the performance of their digital ecosystem including: availability, user experience, security, economic performance and sustainability
  • Help clients create sustainable outcomes through technology

Key resources

Financial capital

Net debt US$88 million

Working capital US$77 million

Natural capital

  • Carbon footprint management
  • Energy management
  • Recycling initiatives

Human capital

Employees Over 4 000

  • 25% female
  • Employees' engagement, skills and knowledge

Social and relationship capital

  • Customer relationships
  • Vendor relationships
  • Stakeholder relationships

Intellectual capital

  • Technical expertise
  • Sector experience
  • Strategic partnerships

Manufactured capital

  • Data centres

Key partners and relationships

Key partners

  • Cisco
  • Microsoft

Key relationships

  • Customers
  • Employees

Key revenue segments

Categories
  • Annuity services
  • Direct product sales

Vendors

  • Cisco
  • Microsoft

Geographic

  • EMEA
  • USA
  • Asia-Pacific

Key revenue drivers

  • Volumes
  • Exchange rates
  • Multinational deals

Activities

  • Full lifecycle services including consulting, professional and managed services
  • Technology solutions including cloud, security, workplace, connectivity, data and artificial intelligence ("AI")

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 going forward

How Logicalis International creates value

Logicalis International works with both IT and line-of-business stakeholders to align technology investments with business strategy, driving critical business objectives through the adoption and application of technology for competitive advantage. Through Logicalis International's digital managed services platform, its customers can evolve their business to digital-first.

What impacts Logicalis International's ability to create value?

Key outcomes for stakeholders

Shareholders

  • Decreased managed services and annuity revenue contribution
  • Strong growth momentum in order intake
  • Slight increase in backlog – US$271 million at year-end (FY22: US$261 million)
  • Increased operating costs
  • Decrease in net debt

Financial institutions and debt funders

  • US$13.2 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

Customers

  • Supply chain issues continue to impact customers
  • Dedicated, committed long-term partnership delivering superior customer experience

Vendors (suppliers)

  • Recognition by vendors through joint investment/co-development and partner awards
  • Committed and strategic long-term profitable vendor relationships

Corporate social responsibility beneficiaries

  • Improved quality of life for local communities

Environment

  • Business activities negatively impact the environment, with measures taken to reduce impact as far as possible
  • Carbon scope 1 and scope 2 pledge
  • Energy savings and reduced carbon footprint
  • Environmental certifications

Governments and regulators

  • Compliance with regulatory requirements
  • US$1.3 million in taxes paid
  • Value created
  • Value preserved
  • Value eroded