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Our 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.

Key resources

Financial capital

Equity US$472 million

(attributable to equity holders of the parent)

Net debt US$107 million

Natural capital

  • Responsible business strategy
  • Environmental performance and initiatives

Human capital

Employees Over 11 000

  • 31% female
  • Employees' engagement, skills and knowledge
  • Board diversity and succession planning

Social and relationship capital

  • Stakeholder relationships
  • Strong compliance and governance culture

Intellectual capital

  • Technical expertise
  • Diverse experience
  • Strategic partnerships

Manufactured capital

  • Data centres
  • Warehouses (distribution centres)

Key strategic partners

  • Cisco
  • HPE
  • Microsoft
  • Palo Alto Networks

Key relationships

  • Shareholders
  • Employees
  • Customers
  • Vendors
  • CSR beneficiaries
  • Financial institutions and providers of financing
  • Governments and regulators

Key revenue segments

Revenue stream
  • Product sales – Westcon International
  • Services and annuity revenue – Logicalis International and Logicalis Latin America


  • North America
  • Latin America
  • Europe
  • Asia-Pacific
  • MEA

Key revenue drivers

  • Volumes
  • Exchange rates (in relation to US Dollar)

Material currencies

  • Brazilian Real
  • British Pound
  • Euro
  • Singapore Dollar
  • South African Rand
  • Australian Dollar

Our activities

The Group's offering spans various sectors of the ICT market.

Impact of our 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

  • Limited borrowings facilities

How we create value

We are improving shareholder returns by optimising our business for the current environment which includes cost and liquidity management. We are committed to conducting our business in a responsible and sustainable way. This commitment applies to our planet, our communities and to our people. We continue to pursue organic and acquisition expansion activities.

What impacts our ability to create value?

Key outcomes for stakeholders

Financial capital

  • Decrease in uEPS to 7.9 US cents
  • Decrease in gross margins
  • Decrease in backlog – US$1 179 million at year-end (FY22: US$1 218 million)
  • Strong balance sheet
  • Decrease in net debt
  • Decrease in net asset value per share to 215 US cents
  • Dividend declared
  • Special dividend of ZAR2.7 billion paid on successful sale of Analysys Mason

Natural capital

  • Business activities negatively impact the environment, with measures taken to reduce impact as far as possible
  • Baseline of carbon emissions established
  • Completion of Group-wide scope 3 assessment
  • Officially committed to the Science Based Targets initiative (“SBTi”) Corporate Zero Standard
  • Launch of phase one of Datatec’s waste management strategy

Human capital

  • Increased employee base
  • Increase in salaries and benefits
  • Invested close to US$3 million on career development, training, and accreditations
  • 13 Great Place to Work accreditations

Social and relationship capital

  • Shareholder consultation
  • Over 10 000 people impacted through community support interventions
  • Contributed ZAR8.7 million to education interventions in South Africa through the Datatec Foundation
  • Invested over US$160 000 in community support initiatives through the Datatec Africa flagship project, subsidiary community interventions and emergency response
  • WestconGroup SA and Logicalis SA – Level 1 BBBEE status
  • Datatec’s consolidated BBBEE status maintained at Level 3

Intellectual capital

  • Scarce technical skills retained
  • Strategic partnerships and relationships successfully maintained
  • Supply chain issues negatively impacting customers but improving
  • Positive feedback from vendor satisfaction surveys

Manufactured capital

  • Reduced floor space in operations where possible
  • Increased revenues from product sales, services and annuity services
  • Short-term value created
  • Short-term value preserved
  • Short-term value eroded

Long-term value created

Long-term value preserved

Governance and ethics

Datatec’s business model is underpinned by its commitment to maintaining the highest standards of ethics and business conduct and to being honest, transparent, socially responsible corporate citizens. Corporate governance is viewed as a tool that contributes to improved operational decision-making and business performance.