Our strategic progress

Westcon International

Westcon International has developed its strategy according to its core values, enabling its partners and improving their business potential and performance. Westcon International’s strategic framework aims to create value for all stakeholders via five strategic foundations that define its priorities, namely: exemplary financial performance, robust data capabilities, exceptional partner experience, talented people, and commitment to Responsible Business.

Westcon International aims to bring to market industry-leading fixed or wireless-based networking solutions, cyber security, virtualisation, remote access and cloud computing solutions.

Westcon International will continue the benchmark of specialisation for vendor solutions and will enhance the customer and market segment orientation with appropriately tailored propositions. It will prioritise financial and operating performance while investing in advanced systems and business automation which are accelerating its transformation into the world’s leading data-driven technology provider and specialist technology distributor of cyber security and networking solutions.

Goals and strategic foundation FY24 – FY27

Below are the FY24 strategic objectives as published in the previous year, as well as Westcon International’s progress against these objectives:

	2024 strategic priority		2024 delivery
	Sales and growth driven
	Achieve strong profitable sales growth >10%		Net revenue growth of 7,7% achieved (gross revenues growth of 9%)
	Achieve improved gross margin percentage >7.6%		Achieved 7.8% on gross revenue basis
	Solutions portfolio
	Recurring revenues to represent 55% of total revenues		Achieved 59% of total gross revenues
	Operational excellence
	Positively impact productivity through continued roll-out of process automation and capabilities utilising digital technologies – achieve improvement to productivity ratio in every sub-region		Productivity improved by 6% overall with good improvement in all regions
	Organisational operating improvement – achieve a gross profit to adjusted EBITDA conversion ratio >30%		Achieved 30%
	Digital and data leadership
	Transition to a digitally-enabled sales company – pilot and launch of global customer relationship management (“CRM”) roll-out as part of sales process optimisation initiative		Microsoft Dynamics launched in all pilot countries by end of FY24
	Global release of PartnerCentral platform and marketplace with increasing adoption		Partner Central has been released and actively used by partners in all markets
	Responsible business
	Execution of 2024 ESG initiatives		Maintained Bronze EcoVadis rating
	Roll out training and development for digitally enhanced way of working		Training rolled out as part of launch of Microsoft Dynamics in all markets

2022 strategic objectives still in progress at date of 2023 report

Below are the FY22 strategic objectives which were noted as still in progress in the previous year’s integrated report, which were not identified as FY24 strategic objectives, and Westcon International’s progress against these objectives:

	2022 strategic priority		2024 delivery
	Partner alignment
	Segmenting customers so that the appropriate propositions and go-to-market models can be deployed in an effective manner		Customer segmentation models are complete and business alignment to achieve best cost-to-serve models is ongoing
	Digital enablement
	Further targeted sales and marketing activity with named global and enterprise customers to drive further integration and adoption of the application programming interface ("API") toolset		Mixed results achieved for the adoption of available API integrations. The Company will be relaunching the program in FY25 with specific incentives to target identified Partners where there is a high confidence of productivity gains.

In executing its strategy, certain trade-offs are often required to be made, and decisions about trade-offs are made after careful consideration of the risks and rewards present in each case. During FY24, Westcon International experienced solid growth, expanded its market share organically and successfully completed the acquisition of a specialised AWS consultancy business to boost the Company’s native cloud services capabilities. Gaining market share, territory expansion with existing vendors and bringing new vendors to existing markets requires investment and competitive pricing strategies which all come with a degree of risk.

Logicalis International

Logicalis International’s growth in services is built on the excellence of its service delivery, delivered to clients with integrity and in partnership with them to help them achieve their goals. Additionally, with agile business practices, it is able to unlock further innovation and empowerment across Logicalis International to drive future growth and remain at the cutting edge.

Even though global trading uncertainties are expected to persist for the short to medium term, Logicalis International is confident in its ability to continue to respond to market needs. The technology segments that Logicalis International specialises in are key parts of cloud infrastructure and the remote access computing solutions necessary for enterprises to adapt.

Below are the FY24 strategic objectives as published in the previous year, as well as Logicalis International’s progress against these objectives:

	2024 strategic priority		2024 delivery
	Key strategic goals
	Shift revenue mix so that revenue from recurring services increases as a percentage of total gross profit, while building an agile organisation to stay competitive		Annuity revenue growth of 11.1% in 2024. Annuity revenue totalled US$313.2 million. Annuity revenue contributed US$118.7 million to gross profit representing 35.1% of total gross profit
	Be a Responsible Business
	Improve environmental performance across Logicalis International		Increased progress on sustainability goals, including the switch to renewable energy, reducing e-waste, and introduction of travel policy to reduce carbon across Logicalis International
	Create new Architects of Change		Developed Employee Value Proposition (“EVP”) to establish a culture in which employees can belong, grow and thrive in their careers. Revamped culture and values, with new values programme to recognise Architects of Change, alongside existing High Performance and Leadership programmes
	Celebrate diversity, and engage and empower Logicalis International’s people to reach their full potential		Increased global female leaders to 25.5% (up from 22% in FY21) Expanded Architects of Pride to support members of Logicalis’ LGBTQIA+ community and their allies
	Continue to grow cloud professional and managed services business		Cloud business (MS and PS) revenue grew 66% from US$108.4m to US$180.2m
	Continue to enhance new lifecycle solutions built around the hardware and software of Logicalis International’s most strategic vendors		Logicalis was the first Cisco partner to market with Managed P5g for Enterprise and first global partner to achieve the Cisco Private 5G Strategic Designation. Achieved five Cisco-powered certifications in the relaunched Intelligent Connectivity suite (Managed Cisco SD-WAN, Managed Meraki SD-WAN, Managed Meraki Security, Managed SASE and Managed Campus Access In March 2024 achieved Microsoft Global MXDR status
	Manage operating expenses to ensure they remain at an optimum level		During FY24 the business was restructured to streamline operations and ensure continuous future growth
	Focus on operating cash conversion to ensure maximum positive cash flows		Logicalis International management’s key focus has been to ensure that each individual deal sold is structured to generate positive cash flows for the business

2022 strategic objectives still in progress at date of 2023 report

Below are the FY22 strategic objectives which were noted as still in progress in the previous year’s integrated report, which were not identified as FY24 strategic objectives, and Logicalis International’s progress against these objectives:

	2022 strategic priority		2024 delivery
	Scale new lifecycle solutions globally to deliver the best outcomes to customers		Invested in the Digital Fabric Platform, launching version 2.0 in January 2024 to include deeper insights, updated user interface, overall health score, and a new knowledge base
	Continue to focus on growing annuity services revenue streams		Focus on modernising and retaining customer base through onboarding 200+ customers on to the digital fabric platform. Added 30+ new services to the platform across Security, Connectivity, Workplace and Cloud

Logicalis Latin America

Logicalis Latin America has a strong position in the region, being one of the largest ICT companies in the most relevant territories it operates in. Through a customer-centric approach, the division has achieved a solid customer base comprised of blue-chip companies that drive innovation in their respective markets.

Despite a challenging environment in Latin America, it is expected that investments in information technology (“IT”), mainly the ones related to digital transformation initiatives, will continue to expand throughout the region.

Logicalis Latin America is confident in its ability to respond to its evolving customers’ needs through a comprehensive and digital-ready portfolio leveraged by an ecosystem of leading partners.

Below are the FY24 strategic objectives as published in the previous year, as well as Logicalis Latin America’s progress against these objectives:

	2024 strategic priority		2024 delivery
	Continue to grow managed services business		Logicalis Latin America orders related to Managed Services contracts increased with double-digit expansion
	Expand DevOps/continuous delivery and modernisation services business		Orders related to modernisation services business increased with double-digit growth
	Continue expanding digital offerings business		Digital offerings mix of total revenues increased
	Deploy new operating model in Hispanic America		New operating model deployed in Hispanic America operations
	Focus on profitability recovery		Profitability impacted by foreign currency depreciation

In executing its strategy, certain trade-offs are often required. During FY24, Logicalis Latin America expanded its portfolio capabilities in selected geographies organically which required investments in local teams. Also, in selected markets, investments were made in customer base expansion through competitive pricing strategies which all come with a degree of risk.