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Logicalis Latin America's business model

Logicalis Latin America 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 Latin America different?

  • Logicalis Latin America is a managed services provider operating in over 10 countries across Latin America
  • End-to-end capabilities – Logicalis Latin America offers unique consulting capabilities as well as managed services to implement and run cloud solutions end-to-end
  • Value-driven engagement – Logicalis Latin America's repeatable model is focused on simplicity, speed and agility to help clients deliver core business value faster and with less risk

Key resources

Financial capital

Net debt US$25 million

Working capital US$106 million

Natural capital

  • Carbon footprint management
  • Energy management
  • Recycling initiatives

Human capital

Employees Over 3 000

  • 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

  • AWS
  • Cisco
  • Microsoft

Key relationships

  • Customers
  • Employees

Key revenue segments

Categories
  • Annuity services
  • Direct product sales

Vendors

  • AWS
  • Cisco
  • Microsoft

Geographic

  • South America
  • Mexico
  • Caribbean

Key revenue drivers

  • Volumes
  • Exchange rates

Activities

 

  • Lifecycle services
  • Extensive modern managed services 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 going forward

How Logicalis Latin America creates value

As "Architects of ChangeTM", Logicalis Latin America 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 Latin America provides a lifecycle services approach to navigate the intricacies of business in the region.

What impacts Logicalis Latin America's ability to create value?

Key outcomes for stakeholders

Shareholders

  • Increased managed services and annuity revenue contribution
  • Decrease in total revenue
  • Stabilising of backlog – US$140 million at year-end (FY22: US$139 million)
  • Increased foreign exchange losses
  • EBITDA decrease
  • Decrease in net debt

Financial institutions and debt funders

  • US$12.9 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, but have stabilised
  • 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
  • Energy savings and reduced carbon footprint
  • Environmental certifications
  • First Sustainability Report produced in Brazil

Governments and regulators

  • Compliance with regulatory requirements
  • US$1.4 million in taxes paid
  • Value created
  • Value preserved
  • Value eroded