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.
Our relationships with our stakeholders, their needs and meeting their expectations
Datatec has identified seven key stakeholder groups that may impact or be impacted by its business strategy, activities and policies.
We rely on these stakeholder groups to create value. Alongside, 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.
Strategic objectives key
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Improving shareholder returns |
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Business development |
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Enhancing competitiveness
and profitability |
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Responsible
business |
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Shareholders |
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Financial institutions and providers of financing |
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Employees |
| Key issues raised |
Key issues raised |
Key issues raised |
- Remuneration policy
- Share-based payment schemes
- Value realisation
- Sustainable returns
- Governance
- Risk management
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- Financial health
- Liquidity
- Ratios
- Cash generation
- Risk management
- Growth prospects
- Compliance
- Covenant adherence
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- Ongoing training and personal development
- Non-discriminatory work environment
- Nature, variety and breadth of work
- Performance management
- Incentives and rewards
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| Our response |
Our response |
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
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- Invoice assignment facility, extended payables facility, securitisation facilities and accounts receivable facilities in Westcon International
- Corporate banking facilities in Logicalis International
- Uncommitted overdraft facilities and short-term lending arrangements in Logicalis Latin America
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- 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
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| Key outcomes |
Key outcomes |
Key outcomes |
- Refined remuneration policy
- Earnings before interest, taxation, depreciation and amortisation (“EBITDA”) US$177.6 million (adjusted EBITDA US$192.1 million)
- 20.2 US cents underlying earnings per share (“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 targets have been formalised
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- Net debt of US$123.1 million
- US$69 million in interest to providers of financing
- Improved interest cover (includes IFRS 16 interest)
- Increased operating cash flows
- Strategic acquisition made in Westcon Internationa
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- US$786 million in staff salaries and benefits
- Commitment to diversity and inclusion; Datatec’s values amended to add inclusion as a core value
- Ongoing employee development
- Long-term and short-term employee incentives
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| Strategic objectives |
Strategic objectives |
Strategic objectives |
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Customers |
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Vendors |
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Governments and regulators |
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CSR beneficiaries |
| Key issues raised |
Key issues raised |
Key issues raised |
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
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- 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
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- Investment
- Employment
- Taxation
- Governance
- Compliance
- Impact on energy usage (IT centres)
- Import and customs controls
- Diversity
- Empowerment and transformation
- Data privacy
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- Development of education (specifically science, technology, engineering and mathematics) in previously disadvantaged communities
- Charitable and compassionate aid
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| Our response |
Our response |
Our response |
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
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- 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
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- 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
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- 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
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| Key outcomes |
Key outcomes |
Key outcomes |
Key outcomes |
- Positive feedback from satisfaction surveys
- Strong vendor offerings
- Improving software and services mix – total software and services is about half of the revenue mix
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- Positive feedback from satisfaction surveys
- Strong vendor relationships
- Numerous partnership awards won
- Extended partner reach
- Vendor incubation provides competitive advantage
- Contract renewals
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- Westcon SA BBBEE status – Level 1
- Logicalis SA BBBEE status – Level 1
- US$36 million directly distributed to governments
- Increased energy savings initiatives
- Environmental certification
- Diversity policies in place
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- The Datatec Foundation invested ZAR8.9 million in FY24
- Positively impacted more than 10 000 people through community support interventions across the Group
- Invested over US$500 000 in community support initiatives through the Datatec Africa Flagship Project, subsidiary community interventions and emergency response
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| Strategic objectives |
Strategic objectives |
Strategic objectives |
Strategic objectives |
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