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Viewing: Our business model / Next: Our strategy

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.

How we create value
We are improving shareholder returns by optimising our business for the current environment. We are committed to conducting our business in a responsible and sustainable way. This commitment applies to our communities, our planet and to our people. We continue to pursue organic and acquisition-based expansion activities.
Key resources
Financial capital
Financial capital

Equity
US$521 million

(attributable to equity holders of the parent)

Net debt
US$52 million

Natural capital
Natural capital
  • Responsible business strategy
  • Environmental performance and initiatives
Human capital
Human capital

Employees
Over 11 000

  • 30% female
  • Employees' engagement, skills and knowledge
  • Board diversity and succession planning
Social and relationship capital
Social and relationship capital
  • Stakeholder relationships
  • vendor partner relationships
  • Strong compliance and governance culture
Intellectual capital
Intellectual capital
  • Technical expertise
  • Diverse experience
  • Strategic partnerships
Manufactured capital
Manufactured capital
  • Data centres
  • Warehouses (distribution centres)

Key strategic partners

Key partners

  • AWS
  • 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

Categories

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

Geographic

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

Key revenue drivers

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

Impact of activities on future availability of resources

  • Improvements to EBITDA and working capital will reduce net debt over time as the divisions generate incremental free cash flow
  • 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
Our activities
Westcon Comstor
Archetects of change
Archetects of change Latin
Masonadvisory
What impacts our ability to create value?

 

Key outcomes for stakeholders
Financial capital
Financial capital
  • Increase in uEPS to 30.5 US cents
  • Increase in gross margin
  • Increase in adjusted EBITDA margin
  • Strong balance sheet
  • Decrease in net debt
  • Increase in net asset value per share to 225 US cents
  • FY25 final dividend declared
  • Change in dividend policy to maintain a two-times cover relative to underlying earnings (previously three-times cover)
Social and relationship capital
Social and relationship capital
  • Shareholder consultation
  • Over 10 000 people impacted through community support interventions
  • Contributed ZAR10 million to education interventions in South Africa through the Datatec Foundation
  • Invested over US$600 000 in community support initiatives through the Datatec Africa Flagship Project, subsidiary community interventions and emergency response
  • WestconGroup SA and Logicalis SA – maintained Level 1 BBBEE status
  • Datatec's consolidated BBBEE status improved to Level 3
Natural capital
Natural capital
  • Measures taken to proactively minimise the environmental impact of business activities
  • Achieved a score of B (Management Band) on CDP (formerly Carbon Disclosure Project)
  • Publication of the Group's first standalone responsible business report
  • Annual publication the Group's TCFD-aligned report
Intellectual capital
Intellectual capital
  • Scarce technical skills retained
  • Strategic partnerships and relationships enhanced
  • Positive feedback from vendor satisfaction surveys
Human capital
Human capital
  • Increased employee base to support business growth
  • Enhanced employee compensation and benefits
  • Invested over US$3 million on career development, training, and accreditations
  • Achieved eight "Great Place to Work" accreditations, with an additional 27 certifications confirmed post year-end, marking a significant milestone in our recognition as a certified employer of choice
Manufactured capital
Manufactured capital
  • Reduced floor space in operations
  • - Short-term value created
  • - Short-term value preserved
 - Long-term value created
- Long-term value preserved
Shareholders
Shareholders
Financial institutions and providers of financing
Financial institutions and providers of financing
Employees
Employees
Customers
Customers
Vendors
Vendors
Governments and regulators
Governments and regulators
CSR beneficiaries
CSR beneficiaries
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 critical enabler of effective decision-making and improved business performance.